CRS-067 SEPT/OCT 2022 BUSINESS INTELLIGENCE FOR THE RRC PROFESSIONAL + Pay-per-clickadvertisingprimer 9 + Use geolocation in your marketing 12 + Blockchain in the real estate industry 18 + The comeback of QR codes 22 + The best proptech for agents 30 Real technologyestate can be the magic touch for growing your business TECH TRICKS OF TRADETHE 2022 TE C H ISSUE
www.crs.com/realtalk Industry news made simple. A podcast produced by RRC The Real Estate Real Talk podcast is hosted by leading agents that can help you cut through the noise and grow your knowledge and expertise.
The Residential Real Estate Council crs.com Sept/Oct 2022 1 FEATURES Vol. 21, No. 5 Cover klyaksunRabbit_Photo/iStock.com/chana/art: 18 22 26 30 18 BlockchainofCommand: Experts share how blockchain technology can be beneficial to real estate agents and the industry at large. By Regina Ludes 22 Cropping Up Again: A technology once thought to be going extinct, QR codes are back and agents are tapping into the potential applications in their marketing. By Lisa A. Beach 26 How Low Can You Go?: Commission fees have become a testy topic in the industry. Learn how to determine a rate that’s right for you. By Michelle Huffman 30 Proptech Prep: Tech literacy is nec essary for CRSs to stand out from the competition. Read about the proptech options available for your business. By Shaila Wunderlich * * * * tech2022article
Sept/Oct 20222 iStock.com/ CONTENTS Vol. 21, No. 5 4 Aerial View Holli Woodward, CRS 6 Digital Channel: Online classes, tools and resources available from RRC. Market Pulse 8 Personal Perspective: Barbara Betts, CRS, The RECollective, Long Beach, California 9 A Click in the Pants: Pay-per-click advertising is a great way to take your digital marketing to the next level. By Matt Alderton 12 Location, Location, Location Data: Geolocation allows agents to target a specific group of potential clients. By Andrew Conner 16 Smart Living: Highlighting safety tips for agents to stay safe while working in the field. 34 Market Values Insights from industry data. Specialized Knowledge 3 6 Council Classroom: How to be consistent with your online branding. 3 8 Innovations: Ways for REALTORS ® to automate their finances. 39 Sponsored Content: Provided by EXIT Realty Corp. 40 Issues of Importance: Know how to manage flood risks during hurricane season. Designation Nation 42 Your Own Council: RRC news and updates. 44 Ask a CRS: Advice from the country’s top agents. 45 RRC Connect: Expand your network. 4 8 Balancing Act: Learn which qualities can make you an effective leader. Editor's Note: In the July/August 2022 issue of The Residential Specialist, a graphic included in the article "RPAC: Making an Impact" had the RPAC Platinum R level omitted. The graphic is now correct on the TRSmag.com website, and we apologize for any confusion. 48 16 crs.com Advertising Manager Juan bd@crs.com312.321.4410Quintero
The Residential Specialist is published for Certified Residential Specialists, general members and subscribers by the Residential Real Estate Council. The magazine’s mission is: To be a superior educational resource for CRS Designees and members, providing the information and tools they need to be exceptionally successful in buying and selling residential real estate. The Residential Specialist is pub lished bimonthly by the Residential Real Estate Council, 430 North Michigan Ave., Suite 300, Chicago, IL 60611-4092. Periodicals postage paid at Chicago, IL, and additional mailing offices. Change of address? Email requests to crshelp@crs.com, call Customer Service at 800.462.8841 or mail to RRC at the above address. The Residential Specialist (USPS0021-699, ISSN 1539-7572) is distributed to members of the Council as part of their membership dues. Nonmembers 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 Please send address changes to: The Residential Specialist, c/o Residential Real Council, North Michigan Ave., th Floor, Chicago, IL ResidentialCOPYRIGHT60611-4092.2022bytheRealEstateCouncil.
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All rights reserved. Printed in U.S.A. EDITOR Kimberly kcure@crs.comCure800.462.8841 ASSISTANT EDITOR Amelia agarza@crs.comGarza CONTRIBUTINGWRITERS Matt Alderton Lisa A. Beach Andrew Conner Michelle ShailaReginaHuffmanLudesWunderlich 2022 BOARD DIRECTORSOF President Holli Woodward, CRS President-Elect Pam Ruggeroli, CRS First Vice President Tricia Nekota, CRS PastImmediatePresident Alex Milshteyn, CRS Members Sandy McRae, CRS Bruce Myers Addie Owens, CRS Kurt Thompson, CRS John Young, CRS Interim Chief ExecutiveOfficer Keith Tristano Staff Liaison Patricia Stodolny MANAGEMENTPUBLICATION www.glcdelivers.com Publishing Manager Scott Mason Art Director Ivette Cortes articletech 9 7
Mortgage rates can shift at a moment’s notice, especially in today’s RateShield®market.byRocket Mortgage® is the perfect solution to help protect your clients from these ever-changing rates.§ Here’s how it works. Get veri ed. We check your client’s income, assets and credit to give them a Veri ed Approval. Gain approval. Once veri ed, they qualify for our exclusive RateShield Approval. Buy con dently. Your client can shop for a home con dently knowing their rate is protected for 90 days. Don’t wait any longer. Refer your clients today. Sign in to or sign up for Rocket Pro℠ Insight and get started now. Scan the QR code with your mobile device or RocketPro.com/RealEstatevisit.
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§RateShield Approval is a Veri ed Approval with an interest rate lock for up to 90 days. If rates increase, your rate will stay the same for 90 days. If rates decrease, you will be able to lower your rate one time within 90 days. Please contact your Home Loan Expert for additional information. This o er is only valid on certain 30-year purchase loans. Additional conditions and exclusions may apply. Your client’s participation in the Veri ed Approval program is based on an underwriter’s comprehensive analysis of their credit, income, employment status, debt, property, insurance and appraisal as well as a satisfactory title report/search. If new information materially changes the underwriting decision resulting in a denial of the credit request, if the loan fails to close for a reason outside of Rocket Mortgage’s control, or if the client no longer wants to proceed with the loan, their participation in the program will be discontinued. If the client’s eligibility in the program does not changeand their mortgage loan does not close, they will receive $1,000. This o er does not apply to new purchase loans submitted to Rocket Mortgage through a mortgage broker. This o er is not valid for self-employed clients. Rocket Mortgage reserves the right to cancel this o er at any time. Acceptance of this o er constitutes the acceptance of these terms and conditions, which are subject to change at the sole discretion of Rocket Mortgage. This is not a commitment to lend. Additional conditions or exclusions may apply. Rocket Mortgage, LLC; NMLS #3030; www.NMLSConsumerAccess.org. Equal Housing Lender. Licensed in 50 states. AL License No. MC 20979, Control No. 100152352. AR, TX: 1050 Woodward Ave., Detroit, MI 48226-1906, (888) 474-0404; AZ: 1 N. Central Ave., Ste. 2000, Phoenix, AZ 85004, Mortgage Banker License #BK-0902939; CA: Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act; CO: Regulated by the Division of Real Estate; GA: Residential Mortgage Licensee #11704; IL: Residential Mortgage Licensee #4127 – Dept. of Financial and Professional Regulation; KS: Licensed Mortgage Company MC.0025309; MA: Mortgage Lender License #ML 3030; ME: Supervised Lender License; MN: Not an o er for a rate lock agreement; MS: Licensed by the MS Dept. of Banking and Consumer Finance; NH: Licensed by the NH Banking Dept., #6743MB; NV: License #626; NJ: New Jersey – Rocket Mortgage, LLC, 1050 Woodward Ave., Detroit, MI 48226, (888) 474-0404, Licensed by the N.J. Department of Banking and Insurance.; NY: Rocket Mortgage, LLC, 1050 Woodward Ave., Detroit, MI 48226 Licensed Mortgage Banker-NYS Department of Financial Services; OH: MB 850076; OR: License #ML-1387; PA: Licensed by the Dept. of Banking – License #21430; RI: Licensed Lender; WA: Consumer Loan Company License CL-3030. Conditions may apply. ©2000 – 2022 Rocket Mortgage, LLC. All rights reserved. Lending services provided by Rocket Mortgage, LLC, a subsidiary of Rocket Companies, Inc. (NYSE: RKT). Rocket Mortgage, 1050 Woodward Ave., Detroit, MI 48226-1906
The Long Game T his year, our theme has been “The Long Game” as #RRCTeam22. As president, I am privileged to lead the team, and honored to work alongside the best volunteers in our industry. A silver lining of the pandemic is our abil ity to meet virtually. Never has an RRC president been able to meet with all state presidents and leadership teams to kick off the year. Thanks to Zoom, I’m very proud to say that I was able to do just that. Traveling to be amongst our members and establish genuine connections has been, and remains, a priority for me. At the beginning of each month, I receive a list of our new CRS designees. I call each one to welcome them to the RRC family. I’ve also had the privilege to travel the globe to meet our international partners and members. While in Spain for Inmociónate, and Paris for FIABCI, I was able to envision our global future with industry professionals from Europe, Latin America and Asia. They desire the education that is required to obtain the CRS Designation, and we determine how we can assist. In June, we welcomed new designees in Spain and our first Korean CRS designees. And in July we welcomed our first Venezuelan CRS designees. We have a tremendous growth oppor tunity nationally and globally which makes it the perfect time to welcome a forward-thinking and tenacious new CEO, working together to accomplish our vision and strategic plans. The hope is to have that individual in their new role by the end of this calendar year and start strong in 2023. At the beginning of my term, my goal for state leaders was to grow member ship, engage new leaders and work with Associations of REALTORS® to introduce them to the best education in the industry.
#RRCTeam22 continues to work toward those goals. I encourage you to engage on our “We Are CRS” Facebook page and follow our social media channels to under stand the impact volunteering has for the Council, our communities and families. This amazing team, including those at RRC headquarters, work diligently with a focus on the Council’s future and our future as RRC members to remain relevant and at the forefront of this industry. I could not be prouder. We are also working with leaders in Spain and an expert in the field to develop a trade mission in June 2023— more details soon. When I took the oath in November 2021, I knew that this role was so much bigger than me and anything I could accomplish alone. I could not have hand selected a better team if I tried. Author Simon Sinek has said: You can’t have success with short game mentality, you must focus on the long game. That is exactly what #RRCTeam22 has—“Long Game” focus!
MurphyAdamPhoto: As president, I am privileged to lead the team, and honored to workvolunteersalongsidethebestinourindustry.”
The Residential Specialist trsmag.com Sept/Oct 20224 Aerial View From the desk of Holli Woodward, CRS, 2022 RRC President
Experience these new features at find.crs.com or via the mobile app. VISIT THE NEW FIND A CRS LOOKING FOR MORE WAYS TO EXPAND YOUR NETWORK AND GROW YOUR REFERRALS? Connect with the best, and download the newly enhanced Find a CRS* *Available on the App Store or Google Play NEW ENHANCEMENTSEXCITINGINCLUDE: Badges that Encourage and Reward In-App Communications Build Your Network, and Build Up Each Other A Greater Sense of Community and MORE! Live News Feeds at Your Fingertips
The Residential Specialist trsmag.com Sept/Oct 20226 Digital Channel Online resources for RRC members RRC strives to provide value to members in the digital space. Each issue of The SpecialistResidential high lights classes, tools and other memberavailableresourcesonline. iStock.com/Greyfebruary Become an Amazing Virtual Agent T he COVID-19 pandemic required agents to become well-versed in how to conduct virtual real estate transactions. Conducting video appointments with buyers and sellers, creating dynamic 360-degree listings and closing deals virtually are no longer optional skills that clients need from their agents. These are must-have skills (especially when dealing with younger clients) that buyers and sellers are looking for when trying to find an agent to workRecognizingwith. this, the Council is offering a new certificate for both members and nonmembers— the Mobile Technologies: Virtual Agent Certificate. MOBILETECHNOLOGIES:VIRTUALAGENT CERTIFICATE After successfully completing this certificate, agents will be able to: f Create their own mobile toolkit for client meetings, showings and closings f Conduct virtual meetings with ease f Protect their business information, including confidential client information, using the best cyber security practices f Market their listings for virtual consumers as well as traditional in-person clients Visit learn/certificatesCRS.com/ to learn more about the Mobile Technologies: Virtual offeredandotherwithCertificate,AgentalongthenumerouscertificationscertificatesbyRRC.
The Residential Real Estate Council crs.com StevePhoto:Anderson Sept/Oct 2022 7 ADVERTISINGPAY-PER-CLICK Agents can boost their online presence with payper-click advertising. PAGE 9 LOCATION DATA Finding your target audience has never been easier, thanks to location data technology. PAGE 12 SMART LIVING Agents should follow these safety tips when they’re out showing homes to strangers. PAGE 16 Sept/Oct 2022 7 TRENDING HEADLINES AND IDEAS Market Pulse PERSPECTIVEPERSONAL Barbara Betts, CRS, has been working diligently to prepare her clients for changes to the market. PAGE 8
I’mveryprioritizingwasn’tit.Duringmytravelsasavolunteer,IsawthatsomanyoftheagentswhoIreallyadmire,lookuptoandwhoarephenomenalbusinessownersallhavetheirCRSDesignation.There’sacommunityandculturebehindit—awell-respectedculture—andIthought,“Iwanttobeinthecoolkids’club.Ineedtocheckthatbox.”AndIfinallygotitdone.reallylookingforwardtoSell-a-bration®inAtlantainFebruary.
“ Going into real estate gave me control over when I work and when I don’t, when I can be there for my children and when I’m with my clients.”
What
I
How have respondedyouintermsofyourmarketing? My husband and I have built our entire Weworkedrelationally;businesswe’vebyrelationshipandreferralformyentirecareer.don’tdoatonofoutward-facingconsumermarketingtothepublic;it’s geared directly to our database and our sphere of influ ence. We adjusted our marketing a few months before that rate hike. Being in the business 20 years, I could see this coming.
How did you get involved with real estate?
The RECollective, Long Beach, California
way-over-asking-Thepriceoffers,nocontingenciesandothertrendswasonlygoingtolastsolong.We’vebeenpreparingourclientsthroughourvideomarketing,emailnewslettersandpostcards.We’vebeenurgingthemtogetinnowbeforethemarketadjustsorsellnowbeforethepricessoften.Asaresult,ourclientsaren’tshockedthatthisishappeningbecausewe’vebeentalkingaboutit. keeps you busy aside from work? would say any thing involving my children. My daugh ter is graduating early from the Uni versity of Kentucky this December, and my son plays Double-A baseball in the Los Angeles Dodgers organiza tion. They both are thriving, and it’s fun to support their journeys. It’s the best to see your kids succeed when they set big goals.
I’ve been very involved with real estate associations since about 2015. I started out at the local level, then added the state level and NAR. The CRS Designation was one of those things I always wanted to add to my resume, but I never really had the time—I
I live and work in Long California,Beach,and it was wild until the increase in interest rates in May. We’re still seeing multiple offers on homes, but it’s cooling down in the sense that the frenzy isn’t hap pening due to this rate increase. We are seeing an effect on the That’shoodpreferredit’sthethey’rebuyers—pumpingbrakesalittle,andIdon’tthinkbecausetheydon’twanttobuyahome.Whatthey’resayingistheycan’taffordthehouseintheirneighborbecausetherateshavegoneup.reallyaffectingtheirbuyingpower.Sellersarenotseeingbuyerswriteofferswithallthewildtermsthatwewereseeingbeforetheratehike.
Barbara Betts, CRS
Barbara Betts, CRS, achieved the CRS Designation in 2022. She can be reached at barb@therecol.com or 562-980-0505
The Residential Specialist trsmag.com Sept/Oct 20228 Personal Perspective Profiles of people to watch MARKET PULSE
When I was buying my first home, my husband and I chose to be represented by a listing agent with whom we did not have a great expe rience. I felt like I was always one step ahead of our agent. I was really inter ested in the contract, and I was constantly calling the agent with questions that I was determining on my own. Obvi ously, I know so much more now. I had my son when I was very young, and I didn’t get to pursue my dreams. Later, when my kids were getting a bit older, I was working and missing field trips and all the mom stuff, and I decided I wanted something that would let me have that work-life balance so I could be an involved mom and contribute to the household. So, I quit my job and went into real estate full-time. Going into real estate gave me control over when I work and when I don’t, when I can be there for my children and when I’m with my clients. I think that flexibility is amazing to have as a working parent. How did you get withinvolvedRRC?
What is thesebusinessyourlikedays?
Thattopays[Pay-per-clickis]whenanentrepreneurorbusinesstogetmoreclicksaspecificdigitalplatform.platformmightbeyourwebsite,afreedownload,yourlisting,aprivateFacebookgrouporevenavideototeachthemsomething.” J. Little By Matt Alderton A
—Carrie
T he average person spends more than 12 hours per week on the computer, according to Wellnomics, a software company that specializes in computer ergonomics. During that time, it says, the typical user clicks their mouse 7,400 times—nearly 1,500 times per day during a five-day workweek. That’s a lot of clicks. Although most clicks are spent sending emails, shopping online and browsing social media, a good many also are devoted to real estate, suggests the National Asso ciation of REALTORS®, which says the internet is a primary research tool for nine in 10 homebuyers and is the first step in the homebuying process for more than half (52%) of Fromconsumers.browsinglistings and looking for agents to researching home values and learning about the homebuying pro cess, there’s no question: People who are interested in buying or selling a home do an awful lot of clicking. If you play your cards right, they might spend some of their clicks— and eventually some of their money—with you, says REALTOR® Carrie J. Little, desig nated managing broker at CarMarc Realty Group in Warrenville, Illinois. During her 21 years in real estate, she’s tried all variet ies of digital marketing but keeps coming back to one tried-and-true tool: pay-per-click (PPC) advertising. “My best ROI from a PPC ad was from a 2-minute video on down payment resources,” recalls Little, who did a live broadcast and subsequently paid $10 to advertise a record ing of it via PPC. “I closed 10 transactions from the one 2-minute video resulting in nearly $2 Althoughmillion.”returns that generous aren’t typ ical, small investments can yield big results, suggests Little, who says the first step is the easiest: “Simply start,” she suggests.
How to get started with pay-per-click advertising Advertise
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Click in the Pants
What is PPC? Before you begin experimenting with PPC advertising, it’s helpful to understand exactly what it “Pay-per-clickis.is just that,” Little says. “It’s when an entrepreneur or business pays to get more clicks to a specific digital plat form. That platform might be your website, a free download, your listing, a private Facebook group or even a video to teach consumers something.” PPC differs from traditional advertising and from organic search engine market ing. With the former—a TV commercial or a billboard, for example—you pay a set fee in exchange for exposure to lots of people who may or may not be interested in your services. With the latter, you try to “earn” visits to your website by creating content that’s so useful to people who need your services that it shows up first in their internet search results. With PPC, you buy your spot at the top of search results—the sponsored links at the top of Google search results are PPC ads—but you pay only when users click your ad. What are the benefits of PPC? With PPC, you pay only what you can afford. You can spend $10, $100, $1,000 or more per day—you decide. Whatever your budget, you set a spending limit, then accrue charges as users click your ad.
It’s cheaper than traditional advertising, and it also can be more effective. After all, with PPC, you can target specific consumers based on their demographics and internet browsing history. And of course, you’re paying only to reach people who are actually interested in your services. While not every one who drives by a billboard is interested in real estate, for example, everyone who clicks on a real estate ad probably is. Also, it’s easier to measure and track the performance of PPC ads. Using free tools like Google Analytics, you can see how your ads are performing, make adjust ments on the fly and refine your strategy based on what you learn.
The Residential Specialist trsmag.com Sept/Oct 202210 iStock.com/_human A FollowAdvertisingper-clickforGuidePay-Successthesestepstoensureyourpay-per-clickadcampaignissuccessful: Keyword search Determine which keywords are best for your business and bid to get your name higher on the list. Ad creation Create an engaging and enticing ad to promote your business. Landing page formation Build a landing page to direct consumers to explore your business’ offerings. Create an account Sign up for an account with whichever platform you’re advertising on.andTrackingtesting Review your advertisement to ensure accuracy and to eliminate errors. Launch campaign Choose when to have your ad campaign go live consumers.to Examine performance Use the data collected to see how successful your campaign was. Assess campaign Strategize for future campaigns to better attract customers. 1 2 3 4 5 6 7 8 Brush up your social media “8knowledgeadvertisingwithStepstoCreatingCompellingFacebookAds,”availableat CRS.com/recordings Advertise How to get started with pay-per-click advertising
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% Intent
28%
26
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f Where are my prospects? Reaching prospects requires knowing in which digital spaces you can find them. Although Google is the most popu lar place for PPC advertising, you can purchase PPC ads on Facebook, Twitter, Amazon, YouTube, LinkedIn, TikTok, Yelp and even Etsy.
Institutional Buyers Are Impacting the Market With economic uncertainties abound, the real estate market has seen an increase in the number of institutional homebuyers, defined as companies, corporations or limited liability companies (LLCs) by the National Association of REALTORS®. According to NAR’s “Impact of Institutional Buyers on Home Sales and Single-family Rentals” report, in 2021, institu tional buyers made up 13.2% of residential property purchases in the U.S., up from 11.8% in 2020. More findings from the report on this trend: For information and to read the entire report, visit and-single-family-rentalsbuyers-on-home-sales-impact-of-institutional-NAR.realtor/ average, insti tutional buyers paid 26% less than states’ median average home sale prices. states with the highest shares of institutional buyers were: Texas Georgia Oklahoma Alabama Mississippi 19 % 18% 17 for the property’s return to market largely consisted of two categories: a “flip” of the home (45%) and as rental units (42%). Of that converted to rentals, 52% of REALTORS ® reported institutional investors typically asked for higher rent for the same quality of property. with these higher rents comes better service— 75% of REALTORS ® reported the same or faster by corporate landlords than mom-and-pop landlords. flip 42 rental % 56% 56% of REALTORS® said sellers sold to institutional investors due to all-cash or “as-is” sales.
these properties
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f What’s my message? Because character counts are limited, PPC ads force you to be creative but concise. A Google ad, for example, can have up to three head lines with up to 30 characters apiece, followed by a description of up to 180 characters. With such little space, you must be clear and compelling, and include a direct call to action—e.g., “sign up for my e-newsletter,” “follow me on Facebook” or “download my guide to homebuying.”
With explicit goals, a modest budget and a commitment to trial and error, success is assured, according to Little, whose most recent PPC ad helped her grow her Instagram followers from 10,500 to 10,800 followers in just five days. “To start with PPC, spend $10 a week,” she advises. “Basically, make coffee at home and stay out of the coffee shop, and use that money to invest in PPC.”
52% 75% 4 5%
The Residential Real Estate Council crs.com Sept/Oct 2022 11
What’s the best way to get started? There are a few questions you should answer before starting a PPC campaign:
offers
f What keywords are relevant to your business? PPC revolves around key words—i.e., the search terms people use to find you. Agents targeting sellers, for example, might choose keywords like “how to sell my house” or “home selling tips.” Keep in mind: The more popular a search term is, the more you’ll have to pay for clicks. You must, therefore, strike the right balance between popularity and budget when choosing keywords.
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more
The
f What are your goals? Knowing at the outset what you’re trying to achieve— e.g., more visitors to your website, more followers on social media, more attendees at an open house, more listing appointments with prospects— allows you to set goals and track performance against them.
On
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Kimmy CRSEfta, T he ability of real estate agents to access and make use of location data, also known as geolocation, in online marketing has exploded in the past decade. What was once a difficult-to-use fringe strategy is now readily available to every one with an internet connection and can help agents make the most of their market ing dollars. A targeted approach “About five years ago, I was playing with Snapchat in our town for marketing pur poses,” says Kimmy Efta, CRS, REALTOR® at RE/MAX Grand in Grand Forks, North Dakota. “I realized I could geofence the Ralph Engelstad Arena [in Grand Forks] for the weekend during a hockey game, and I thought, we should be able to do thisEftaeverywhere.”reachedout to the marketing com pany she already worked with, and before she knew it, she was targeting ads to areas as small as 1 mile in radius. To start using location data in marketing, Efta recom mends agents target real estate events in their area, such as home shows or parades of“Wehomes.saw a jump in views on our website when we geofenced the home show,” she says. According to Efta, during the two days of their local home show, her bro kerage pushed ads that received 1,000 impressions at a total cost of only $8. “We have a small team, and this was a way to take advantage of the technology that is at our fingertips,” she says. “It’s a way to be present at the home show even if you aren’t standing at a booth for the full two days.”
By Andrew Conner We saw a jump in views on ourgeofencedwhenwebsitewethehomeshow.”
The Residential Specialist trsmag.com Sept/Oct 202212 MARKET PULSE Geolocation Using location data to help your business Location, Location, Location Data
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The Residential Real Estate Council crs.com Sept/Oct 2022 13 3 PLACES TO TRY GEOTARGETING Just getting started using location data to boost your marketing? Kimmy Efta, CRS, REALTOR ® at RE/MAX Grand in Grand Forks, North Dakota, recommends three locations to target: Home shows — You know everyone attending a home show is interested in real estate, making it a great place to start. Local stadiums or arenas — Is there a big concert or sporting event in your city this weekend? Places where you know a lot of people will congregate can make good targets. Airports — You never know who is coming to town and might be interested in a vacation property or even a new permanent home. 1 2 3 Bicher/justinroque/appleuzriStock.com/Floaria
For more ways to get seen online and generate more business, watch “Getting Found Online” at com/recordingsCRS.
While location data has a host of uses for real estate marketing, another way it can be leveraged is to help recruit agents for your office. “We use it as a recruitment tool,” explains Kimmy Efta, CRS, REALTOR® at RE/MAX Grand in Grand Forks, North Dakota. “We’ll geofence competing bro kerages and use ads that showcase the benefits of working at RE/MAX, such as larger commissions or better back-end tools to help agents with marketing.”
Rohlf explains that much of the geo tagging abilities within Google and their Google My Business service can be done at little to no cost.
The Residential Specialist trsmag.com Sept/Oct 202214 MARKET PULSE
“I work with my director of operations and marketing on geolocation marketing, and one of the things we’re focused on is Google, because they’re everywhere and they’re always launching new services and platforms,” says Rohlf. “We want our profiles to be as up-to-date with relevant information as possible, so we’re always going back and adding geotags to photos and re-uploading them.”
For more ideas and inspiration on how you can incorporate location into your marketing strategy, both Efta and Rohlf recommend reaching out to other agents and checking out the wealth of online resources available, including real estate-focused publications like The Residential Specialist.
“Pretty much anything that we would put on Instagram or Facebook, we’ll also put on Google,” he says. “We’ll do graph ics showing our reviews and geotag those to the location their house was bought in; we’ll post our closing photos and geotag the general vicinity we’re at. A lot of it is just getting our images out there onBeyondGoogle.”Google My Business, Rohlf also notes Google Local Services and Yelp are two important platforms to look into. And although it’s hard to directly track geotag ging efforts to specific outcomes, Rohlf has seen his social media and business pages get more likes and interactions as a result ofWhengeotagging.taking advantage of this technol ogy, Efta explains that doing it carefully and with precision matters.
For agents interested in geofencing, Efta suggests getting started the same way she did: by playing around with Snapchat. The interface and user experience are simple enough that even a solo agent with limited resources can take advantage of geolo cated marketing. When going bigger, she recommends working with specialists. Her brokerage currently geotargets an average of 83,333 impressions per month to relevant ZIP codes, covering audiences searching for various real estate topics, such as “homes for sale,” “real estate agent,” “MLS,” competing brokerage names, etc. Their total spend on this project is less than $700 per month. Getting some assistance Ryan Rohlf, CRS, REALTOR® at Keller Williams in Des Moines, Iowa, agrees with Efta that working with a marketing specialist is a better way to go if you have the resources.
“When you’re geofencing a specific location, anyone who is in that location could be getting served the ads,” she says. “It’s a fine line to walk—you have to think that this is going to be a broader message for everyone, not necessarily a certain demographic. It helps to think of it as an awareness campaign.”
Efta points out that competing brokerages can be targeted for clients as well by featuring ads that tout specific advantages your brokerage has compared to others. “When someone goes into a competing brokerage, we want them to see our ads and come to one of our agents, especially if we can offer a service that our competitor doesn’t have.”
“Start with a Google search or check out Facebook groups,” says Rohlf. “You’ll find a ton of answers and what has worked for other people, and you can go from there.”
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Geolocation Using location data to help your business
TARGETING NEW TEAM MEMBERS
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MARKET MOMENT Amazon Tackles Affordable Housing Giant corporations tend to have a negative reputation amongst the general public, but some are looking to buck that trend with investments in affordable housing. In early 2021, Amazon launched a $2 billion Housing Equity Fund to create and preserve more than 20,000 affordable housing units in three markets: Arlington, Vir ginia, Puget Sound, Washington, and Nashville, Tennessee.
According to a Forbes article from May 2022, work is already underway in the Arlington market, with Amazon now accountable for 18% of multifamily affordable housing options in the area. The company recently announced it is also partnering with the Washington Metropolitan Area Transit Authority with plans to invest $82 million in building over 700 new affordable homes near transit hubs.
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“The shortage of affordable housing has been a chronic challenge for this region,” said Catherine Buell, director of the Amazon Housing Equity Fund, in a press announce ment. “By teaming up with Arlington County, Amazon can help be a part of the solution. Joining forces with a diverse group of public and private housing partners ensures that moderate- to low-income families are supported with access to opportunity and long-term financial stability.” To read more about Amazon’s efforts, visit housing-equity/fundimpact/economy/aboutamazon.com/
Safety Tips forSafetyREALTOR®Month
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A career in real estate can be exciting, fun and rewarding. However, being a real estate agent, especially today, also has its risks. Since 2003, the National Association of REALTORS® has dedicated September as REALTOR® Safety Month, with a goal of reducing the number of safety incidents that occur in the industry and improving the overall safety culture for agents as they work to help their clients and show properties.
According to NAR’s recent Member Safety Report, there are a few key findings that can help agents work smarter, and some preventative tips to help agents work safe year-round.
f Open houses and showings hold par ticular risk, as 17% of reported criminal activity occurred at an open house.
f A large percentage of those who encoun tered criminal activity said that it followed threatening communication.
Source: NAR
Understanding that REALTOR® safety as a strategy and a system will allow you to go to work every day with peace of mind knowing that you are work ing with clients who know and trust you, and who you know and trust. The Council provides safety courses to help members assess risk in their current practice and create systems that help them conduct business safely while cre ating positive business outcomes. Check out “Systems for Agent Safety,” available at CRS.com/webinars If you aren’t sure what safety protocols are in place, ask your broker and call your local REALTOR ® association exec utive and ask for an update on safety best practices.
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f Do not host open houses alone.
HERE ARE A FEW SIMPLE WAYS TO IMPROVE YOUR OVERALL SAFETY AS YOU’RE WORKING IN THE FIELD: If you’ve experienced an emergency or a safety concern, NAR offers a REALTOR® Safety Network to notify members across the country at NAR.realtor/safety Open houses and showings hold particular risk, as 17% of openoccurredcriminalreportedactivityatanhouse.
f Direct clients to walk in front of you when touring a property—do not lead them.
f Do not overshare about your personal life. f Get to know the neighbor hoods you work in, both during the day and at night. Streets and landmarks may look different throughout day.
f Check your cell phone battery and signal before heading to an appointment.
f Never go into attics, crawl spaces or garages where you could be trapped.
f During an open house, keep the garage or back door closed to prevent intrud ers from using multiple entrances, and to be aware of incoming clients.
f Always meet new clients at the office or in a neutral location, like a coffee shop. f Share your schedule with a colleague, assistant or family member. f Communicate safety con cerns on your listing (poor cell phone signal, etc.). f When showing a home, park your car in front of the property rather than in the driveway. You will avoid hav ing your car blocked in, and if you have to make a quick exit, it will be easier to drive away.
f Don’t assume that every one has left the premises at the end of an open house. Check all the rooms and the backyard prior to locking the doors.
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chain of command 12 % of 5%2021,newpaymenttocryptocurrencybuyersfirst-timesoldfundadownforahomeinupfromin2019. Source: Redfin [BLOCK] 2022 TE C H ISSUE
By Regina Ludes At the time, Ryan, a REALTOR® with RLAH Real Estate in Washington, D.C., dismissed the idea. When it became widely discussed a few years later on Clubhouse, an audio-based social network she belongs to, the light bulb went on.
“I knew it would be valuable to real estate because of its immutability,” says Ryan, who speaks and teaches agents about cryptocurrency and block chain technology. She also plans to use smart contracts for her business. “Once a transaction is recorded on the blockchain, it cannot be changed.
Further, it speeds up transactions. You can see signed contracts as soon as they’re recorded.”
While blockchain has been around for only a decade, it has stirred up debate about its potential impact in the real estate industry. Many tech-savvy agents are bullish on the new technology, while others are slow to adapt to it or believe it’s a fad. Blockchain has a unique lexicon and complex way of operating, which makes it difficult for many people to understand. However, experts believe it’s only a matter of time before blockchain will be as familiar as email. CRS agents who understand how blockchain works and its poten tial impact on real estate can position themselves as the go-to agent for the next generation of homebuyers and sellers.
Kathleen Ryan, CRS, knew nothing about blockchain until her son mentioned it in conversation five years ago.
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Ryan believes that recent buyers have probably been converting their crypto currency into cash for housing down payments all along, but never revealed that detail with their agent. “They’ve been more open about it because they’ve had to stretch their resources,” Ryan says.
That dovetails with a recent survey by Redfin that found that nearly 12% of firsttime buyers sold cryptocurrency to fund a down payment for a new home in 2021, up from 5% in 2019. Cashing in cryptocur rency can be a smart move for some buyers because it increases their purchasing power. “Instead of buying a $400,000 home, they can purchase one for $500,000,” Kinzie says.
Blockchain adoption in real estate has been slow due to the educational gap among agents and misinformation about it, says Conroy.
However, lenders and attorneys differ in their level of acceptance of cryptocurrency for real estate transactions. Ryan advises agents to become familiar with changing regulations in their state so they can coun sel their clients accordingly.
WHAT IS blockchain?
USE OF cryptocurrency Kinzie first learned about blockchain nearly a decade ago when he made his first investment in bitcoin, a type of digital cur rency that is part of the blockchain. Since then, he has invested in virtual properties and cryptocurrency. He is beginning to see signs of blockchain’s impact in his mar ket among younger homebuyers, who are increasingly cashing in cryptocurrency to fund down payments.
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“It shows consensus that the transaction took place. It makes plagiarism, fraud and counterfeiting nearly impossible.”
“There aren’t enough incentives to adapt to it until it’s further tested,” Conroy says.
Mortgage lending and title insurance companies are most likely to be affected by blockchain because those businesses involve record keeping and document pro cessing, he adds. Many current transaction processes are outdated and complicated. Contracts and other legal documents can go back and forth multiple times between parties, which is time-consuming and costly. There’s always a chance that a doc ument can be lost, misplaced or destroyed. However, since blockchain keeps a history of every transaction and time stamps doc uments, that information can never be lost or disputed. The simplest explanation: “Blockchain is a new way of storing and sharing transaction information.
It’s different from a regular database in that once the information is recorded, it becomes permanent and can be immediately reviewed by all parties.”
Dave Conroy, director of emerging technology with the National Association of REALTORS ® Cryptocurrency is decentralized digital money that’s based on blockchain technology. You may be familiar with the most popular versions, bitcoin and Ethereum, but there are more than 19,000 different cryptocurren cies in circulation.
Blockchain makes transactions more transparent and reliable, adds Tim Kinzie, CRS, with Montlor Luxury Realty in Cary, North Carolina. “If a group of people are in a room, and one person gives a $10 bill to someone else in the room, everyone there would see the transfer of money,” he says.
Source: Forbes
The language of blockchain
Ryan says agents who are knowl edgeable about blockchain can differentiate themselves in their market. “Blockchain has created a new area of expertise for agents. If you don’t know anything about blockchain or bitcoin, and clients ask about it, you might have to refer the client out,” she says. While blockchain adoption will be slow and steady over the next five years, Conroy says a REALTOR® ’s role isn’t likely to change. “Technology can’t replace the expert knowledge of a REALTOR®,” he says. Proof of ownership. By recording ownership of a property, blockchain provides verifiable proof of who owns that property, for how long and when it was transferred to that person.
IMPLICATIONS for real estate
Half the battle of understanding blockchain is becoming familiar with its terminology. Here are a few basic terms to know. CRS agents who understand how andhomebuyersgenerationforthethemselvescanonpotentialworksblockchainanditsimpactrealestatepositionasgo-toagentthenextofsellers.
Fractional property ownership. While most transactions involve a single person buying or selling an entire property, with block chain, it’s possible for multiple parties to own portions of a property. Fractional ownership increases access to a real estate investment by lowering the minimum amount of capital needed to purchase property. It also allows property owners to sell partial equity, which provides immediate liquidity. “People can create ownership rights through cryptocurrency for an apartment build ing, sort of like a stock,” Kinzie says. “For example, you might own 1/1000th of a building through a token without going through typical fractional ownership avenues.”
Source: debuting a new webinar
CNET.comRRCis
Payment processing. Whether payments are for rent, escrow or purchase agreements, blockchain creates a record for every pay ment processed. It can reduce settlement time to mere seconds instead of days, and transaction fees could be reduced to pennies, even with international buyers.
Smart contracts. In traditional transactions, contracts can often go back and forth among all parties for review, which can take time. Smart contracts are not digital representations of legal contracts, but instead are snippets of computer code that run along the blockchain to automatically trigger actions or next steps in the real estate trans action. For example, when all required signatures are received on a purchase agreement, it can trigger the payment of funds for escrow.
todayOctober.andcryptocurrencyaboutblockchainthisRegisterat webinarsCRS.com/
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OPPORTUNITIES for agents
Conroy cites four areas of impact for real estate:
Bitcoin — The first cryptocurrency created in 2009. Built on the bitcoin blockchain. Blockchain — A public, decentralized ledger that records information in digital blocks. Once a block is mined and added to the chain, it can’t be altered. Cryptocurrency — A digital currency or a token that’s native to a blockchain. Cryptocurrencies are typi cally minted with each new block mined. DeFi — Decentralized finance. Any financial tool, such as a smart contract, that uses blockchain technology to circumvent the middleman. Smart contract — A digital contract that executes next steps when required conditions are met. Most commonly used to automate transactions.
The debut and demise of QR codes Handlovitch began using QR codes when they were first developed in the mid-1990s. “I jumped on the bandwagon early and thought QR codes were a great way to com municate and guide people,” he explains. At the time, QR codes required a separate mobile app to scan and open, making them cumbersome to use. Brands adopted QR codes in their marketing, but consumers didn’t follow in droves. Then, with the explosive use of video in marketing, boring QR codes fell by the wayside. Or did they? Evolution and resurgence Flash forward to today, where the ability to scan QR codes is embedded in today’s smartphones via the built-in camera. This allows users to easily scan, click and follow the link. The technology evolved, and QR codes now provide a customizable barcode technology that can be embedded with a uniqueThen,URL.thepandemic hit, changing the way real estate agents marketed to and interacted with buyers and sellers. But real estate agents found that QR codes worked perfectly in this new era of contactless, remote marketing.
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He included a QR code (short for quick response) so recipients could scan it for listing details. A couple, who wanted to sell their home but were afraid to do so without buying a new home first, scanned the QR code. It took them to a unique website land ing page where they input their information to request listing details. Handlovitch set up an appointment, conducted a walk-through of the home and brought them on as a client. “They came to me as a buyer first,” notes Handlovitch. “I showed them how to buy without having to sell their home, since my lender had a program to do that.” He qual ified the client to buy, then sold their home after the fact. “It kind of went in reverse— they wanted to sell then buy—and it all started with the QR code.”
Mark Handlovitch, CRS, associate broker with REMAX Real Estate Solutions in Pittsburgh, Pennsyl vania, sent out a postcard mailing to a targeted community. I jumped on the bandwagon early and thought QR codes were a great way andcommunicatetoguidepeople.”
“We went paperless specifically because of COVID,” explains James W. Nellis II, CRS, serving the Washington, D.C. metro area as CEO and licensed real estate salesperson with The Nellis Group. “We wanted to be conservative for clients, so we started using QR code software, put ting the front of the house inside the QR code.” Nellis also used QR codes back in the 1990s but dropped the technology in the early 2000s. By Lisa A. Beach
2022 TE C H ISSUE
—Mark Handlovitch,CRS
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Using QR codes in your marketing With QR codes surging in popularity again, how can real estate agents use QR codes to drive traffic to their various digital platforms?
Now that you know how to use QR codes, what are some of the benefits of using them?
Nellis point out that this provides a clear benefit for people willing to give their information.
f Maximize your budget. “We cut down on our printing costs, such as for brochures and mailers, with the lowest level of print use ever,” notes Nellis. “Thanks to the analytics and tracking, you’ve got better oversight of where you’re spending your money and how effective it’s been,” explains Handlovitch. “It’s a great opportunity for me to utilize and know where to focus my money.”
Start with a custom QR code. No matter where you use QR codes, customize each one. (It’s surprisingly simple to create QR codes, thanks to free QR code generators such as QR Monkey and QR Code Gen erator.) You can take Nellis’ approach by branding your QR code, complete with his company’s logo, property photo or other keyDrivemessage.people to custom URLs. Grab the opportunity to send prospects to a strategic location. The ability to create unique URLs for everything, from specific listings to specific campaigns, gives you unlimited marketing potential. Nellis uses two custom QR codes for every property listed—one goes to the listing page and the other goes to the open house registration. “Open house registration is a game changer that should be used by every agent,” advises Nellis.
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f Provide value. For Nellis’ open house registration, the QR code leads to a brief questionnaire. One of the questions asks, “Would you like to know about deadlines for any offers?”
f Capture accurate, thorough information. James W. Nellis II, CRS, CEO and licensed real estate salesper son with The Nellis Group in Washington, D.C., recalls the days of using clipboards to register open house attendees. “We couldn’t read their handwriting sometimes,” he says. Now, people scan the QR code, which leads them to the event registration page. Because people type their information, the readability helps increase lead conversion.
HOW QR CODES MAKE A DIFFERENCE
An example of a custom QR code that James W. Nellis II, CRS, created to help boost sales interest.
f Attract prospects . Mark Handlovitch, CRS, an associate broker at REMAX Real Estate Solutions in Pittsburgh, Pennsylvania, thinks of QR codes more as pull marketing than push marketing. “You can give so much information at the prospects’ request rather than forcing them to watch a video,” he explains.
EmailsDirect
Track your results. The robust tracking abilities can, among other things, provide total numbers of people who scan them, where they originated from, and subse quent user clicks and views. “With QR code tracking, I can pinpoint where prospects are coming from, whether it’s from mobile, computer or even a postcard,” explains Handlovitch. He can make a QR code spe cific to a piece of marketing material, such as a mailing or a social post, then focus more effort on that if he sees it’s driving results. “I can track my efforts for the same house on 10 different marketing platforms,” he says. Use QR codes throughout the customer journey. QR codes can do more than just generate leads. They can be used to build awareness, inform consideration of your ser vice, increase retention and (the holy grail) transform satisfied clients into advocates.
Text
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f
Need help with QR code QRCodeGeneratorVisuallead,Considergeneration?usingQRCodeorMonkey.
Bottom line: Don’t be afraid to use them, especially if you’ve used them in the past but abandoned them. “It’s not your grandma’s QR code,” says Handlovitch. “The analytics and the ability to direct people and track how they got there make all the difference.” giveaways YouTube channel, Facebook page, etc. mailers and postcards or TV advertisements messages Property signs Social media posts Car wrap-arounds Business cards
QR codes can do more than just ofconsiderationawareness,beleads.generateTheycanusedtobuildinformyourservice,increaseretentionand(theholygrail)transformsatisfiedclientsintoadvocates.
Use QR codes in a variety of marketing efforts. Your creativity is the only obstacle to how you can incorporate QR codes into your marketing. Here are just a few ideas of where to put codes: These are a few possibilities of what they could link to: f Open registrationhouse f Property listing details f Explainer video of how to prepare your home for an open house f FAQ section for buyers or sellers f Fillable PDF of a form questionnaireor f withresourceCommunitypagerecommendedplumbers,electricians,landscapingcompanies,etc. Landing page about communityyourserviceefforts f Moving checklist f Drone footage of the property f Latest episodepodcastfeaturingaliveQ&A
WindowVideosdisplaysFlyersBranded
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Neubauer believes there’s plenty of room for different agents to make different rates depending on their level of service and experience—she says there’s room for a lower-cost “Wal-Mart model,” a mid-tier “Kohl’s model” and a high-end “Nord strom’s model”—but it’s ultimately up to the agent to discover and clearly explain what they’re worth.
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Around the coun try, this is what agents are hearing from sellers when they discuss com mission. While many say it’s nothing new, data suggests real estate commission rates have been dropping for years. According to RealTrends, commission rates are the lowest they’ve been in a decade, landing around 4.9%, down from 5.4% in 2012. This makes agents like Monica Neubauer, CRS, with Benchmark Realty LLC in Franklin, Tennessee, think the time is right to crack open a discussion on agent rates. “I would rather talk about our situ ation with intention than be upset with it changing around me,” she says. Think about this: “Why are brand-new agents charging and getting the same fee that experienced, well-trained agents are getting? And for that matter, why is the public paying the same?” asks Neubauer, who is also an RRC Certified Instructor. “You pay more for an experienced, skilled hairstylist; why wouldn’t you pay more for a more skilled agent? These experienced agents need to and can clearly lay out what they do and do well.”
“Can you offer a discounted rate?” “Is that the best you can do?”
“Another agent would do it for 1% less.” Commission rates are the lowest they’ve been in a landingdecade,around 4.9%, down from 5.4% in 2012.
Source: RealTrends By Michelle Huffman
Compile lists Monica Neubauer, CRS, with Benchmark Realty LLC in Franklin, Tennessee, lists the 25–50 items she does for sellers while Jeff Kreinbring, CRS, with Keller Williams in Washington,Vancouver,hasalist of 46 things that have to be done to successfully close a sale.
The Residential Specialist trsmag.com Sept/Oct 202228 iStock.com/uniquepixel/MariaShapilova YOURDEFENDRATE CRS agents offer tips to successfully clinch a listing at your commissionpreferredrate: For more on selling your value as an agent and other business tips, check out “The Bottom Line” newsletter for members on rrc-bottom-linecom/resources/CRS.
Explain advisoryyourrole
There’s several reasons commissions have been on the decline. Here’s what CRSs are seeing: WHY COMMISSIONS ARE DROPPING
A sellers’ market makes it look easy. “When the market is very hot, some sellers think that anything sells and it doesn’t matter who is selling it,” says Melinda Estridge, CRS, with Long & Foster Real Estate in Bethesda, Maryland. The problem with that? It’s really hard to see money left on the table. She cites a specific example where she lost a listing because, as she carefully explained to the sellers, she couldn’t do the job correctly at the reduced rate they requested. That house sold for $1 million. Across the street, she took a listing for a smaller property, pre pared and staged it for the market—and sold it for more than $1.2 million.
Melinda Estridge, CRS, with Long & Foster Real Estate in 300%–400%theforMaryland,Bethesda,backsuphersalespitchwithdata.Shetracksherlist-to-salespriceratioaswellastheamountinvestedinthehouseitemslikestagingandmarketingvs.salesprice.Sheframesitasmoneysellersspendvs.theactualvaluetheyadd.“Whentheyseeaincreaseinvalue,that’srealmoney,”shesays.
Use scripts Susan Richter, CRS, with Berkshire Hathaway Home Services in Durham, North Carolina, relies on clever scripts to explain her commission rate: “The commissions are the fuel for all the parties in the transaction, and if you water down the fuel, you’re not going to get the same results,” she says. When a competing agent will cut their commission, she borrows a line from real estate coach Mike Ferry and says: “I can appreciate that, but can I share with you why that makes me nervous? If they don’t have the courage to defend their own worth, how strong could they possibly defend you and the price we set for your home?”
With buyers, Kreinbring gives a presentation where he makes it clear: “My job is not to be a taxi driver. I’m helping you make good decisions along the way. Here’s how.”
Rely on data
“A seller thinks they’re saving money by paying less commission, but working with a seasoned professional nets them more in the end,” Estridge says. In a hot market, some agents are willing to work for less. With homes moving so quickly, new and inexperienced agents come into the mar ket looking to make easy money. But with limited inventory, listings are hard to come by, so agents are willing to be more flexible with their fees. At the end of the day, because home prices are constantly rising, this may not translate to lost dollars, Neubauer says. Under pressure, some listing agents are cutting buyer agent rates. Because buyers don’t often pay their own agents, the pay structure can be hazy, even invisible, depending on how the buyers’ agent wants to approach it. So when a list ing agent cuts their commission to win the listing, that may mean cutting the buyers’ agent’s portion, as well.
Jeff Kreinbring, CRS, with Keller Williams in Vancouver, Washington, takes it a step further: After one buyer pointed out that Kreinbring makes more if the buyer pays more, Kreinbring asked the buyer if he’d be willing to pay a dime for each dollar Kreinbring saved him. “He shook hands with me so fast I thought I had really miscalculated, but it worked,” Kreinbring says. That led to his formula, which he is happy to share. He uses a written buyer broker contract where the buyer agrees to pay X% of the final sale price plus 10% of what Kreinbring saves them. If the buyer pays more than list price, the commission is figured on the list price instead of the higher sale price. Anything Kreinbring receives from the listing brokerage is credited toward what the buyer owes. If there is more than what the buyer owes, the excess goes toward the buyer’s closing costs.
abear.”andvice,marketscommissionorganicallythatdisappointing.”saysstatus,wererealmissionsfixedhaveadherenceNARthelistingdamagedhomeeveryone’scorporateREALTORSNationalandlawsuitscompensation,ingseveralWhileinCommissionCourttherehavebeenlawsuitstargetrealestateagentMarch2019filedinIllinoisMissouriagainsttheAssociationof®andfourdefendantshaveattention.Thesuitsallegethatsellershavebeenbecausethebrokercompensatesbuyer’sbroker.Theyclaim“variousrulesandmembers’tothoserulesledtoartificiallyandinflatedcombeingpaidtoestateprofessionals.”InApril,thelawsuitsgrantedclass-actionadecisionNARwas“extremelyTheassociationholdsthefreemarketestablisheswithinlocalbasedon“serconsumerpreferencewhatthemarketcanNARhasestablishedwebsite, competition. realtor, which has talking points you can refer to when discussing theAslawsuit.ofprint time, NAR Is appealing the class-action decision. Refuse to settle for less. Many CRSs say they sim ply won’t take less than their desired rate. “My belief is that good agents who know their value, are trained and have business knowledge and experience should have no trouble earning a good commission without dropping their rate,” says Susan Richter, CRS, with Berkshire Hathaway Home Services in Durham, North Carolina. See the sidebar on the previ ous page for ways to show your value to sellers. Be willing to negotiate. You can also take the exact opposite tact. Neubauer says she is always willing to negotiate her rate— and she knows this makes her a little unusual. “I will negotiate my com mission, but I’m not randomly reducing what I get,” she says. This is a calculated approach that takes some advanced effort. Neubauer looks at how quickly she thinks the house will sell, how will ing the sellers are to participate in the sale, the condition of the house, whether it’s going to be vacant or willmarketingandoccupiedhowmuchitrequire.
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COMMISSIONSLOWER
Some buyers’ agents are asking buyers to make up the difference when a listing agent is offering a less-than-standard commission on a listing. While it can be a tough ask, it’s worth defending your minimum rate, Richter says.
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HOW TO COMBAT
The Residential Real Estate Council Get creative with how you charge.
Many agents say that there’s room for new ideas in the way people pay agents.
“There’s only one other industry that bills this way and it’s medicine—and nobody likes that model,” Kreinbring says.
While commission rates overall are trending lower, that doesn’t mean agents have to lower their rates accordingly. Here’s some ways that CRS agents have found to navi gate the downward trend. 3
Toward that end, MAR offers a choice of MLS plat forms and ensures most of its trainers are bilingual. “CoreLogic’s Matrix is our primary MLS platform, but if they want something that has better mapping tools, we offer Rapattoni as an option,” Sturrock says. “Or they can do all their searches in Remine.”
Paulson and fellow real estate professional Liz Sturrock concede tech aptitude isn’t mandatory to working in real estate—but it sure helps. And they’re armed and waiting to assist any colleagues interested in getting started.
A firm mastery of the Multiple Listing Service (MLS) is ground zero to any tech-literacy effort. MLS’ sav viest users employ its real-time search functionality on their websites. Others, meanwhile, are still apply ing it at its most rudimentary. “A REALTOR® could search the MLS every day for certain criteria, print out the results and deliver them to their clients,” says Liz Sturrock, chief of MLS and Innovation for Miami Association of REALTORS® (MAR). “Or they could build a ‘Save Search’ under each client’s name, and the system will automatically generate anything new that meets the criteria. Just doing the bare minimum like that gives you back time in your day and reduces error.”
It’s one of technology’s hottest categories, and each day more professionals are using it to leverage their real estate skill and experience. But not everyone is using property technol ogy, otherwise known as proptech, to its fullest. Some are hesitant about the time, effort and money required; others insist it isn’t necessary. “Real estate is always sort of late to the tech game,” says Jim Paulson, CRS, owner and broker at Progres sive Realty Corporation in Boise, Idaho. “Unfortunately, we’re an industry based on ‘It’s always been that way.’”
By Shaila Wunderlich
master MLS 2022 TE C H ISSUE
PROPTECH prep
About 85% of MAR’s 60,000 members use MLS in some capacity, assisted by Sturrock’s call- and messaging-center staff. She believes the success of any proptech lies in a custom approach, offering agents options for how they use it. “I never expect 100% adoption of anything,” she says. “Members take what works for them and leave the rest.”
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“You could use a tool like Remine, which surveys off-market listings and uses data science to assess how likely somebody is to buy a property,” she continues. “What if you could be the first person to identify and reach out to those customers—how power ful is Manythat?”see virtual property tours as “extra,” though Paulson begs to differ. “With the current market, I hear people saying the house is going to sell no matter what; no need for virtual tours,” he says. “What they don’t realize is it’s not just about selling the listing. It’s about getting more listings. And showing your capabil ities as a REALTOR® is what’s going to accomplish that.”
I’m using housejustplatform,nologytechasanottosellthebuttosellmyabilitiesasaREALTOR®whousesallthistechnology.That’saverybigpivotpoint.”
The same Matterport camera Paulson uses for interior photos automatically creates virtual tours via its accompanying app. “I set up the camera on a tripod, and it rotates full-circle, taking around 75 pic tures,” he says. “Then, the app stitches the images together into a virtual tour.”
The extras From there, it’s about cherry-picking which proptech makes most sense for each individual and their work. “You could build a website with an artificialintelligence chat engine,” Sturrock says. “It communicates with customers in realtime and allows the REALTOR ® to enter the chat at any moment.
“It’s like Credit Karma for real estate social profiles,” Sturrock says. “They tell you what you can do to enhance your profile, and for an extra fee will do it for you.”
–Jim Paulson, CRS BoxBrownie's virtual staging adds furniture to photos at a fraction of the cost of actual staging.
Custom yard signs are another nonnegotiable in Paulson’s opinion, with each sign featuring interior photos of the resi dence and a dedicated URL. This is where Paulson often gets pushback from hesi tant REALTORS®, many of whom balk at the presumed time and expense entailed. “Once you have the system and template set up, time spent is nominal,” he says. “You don’t even have to do it yourself if you don’t want to. I have a virtual transactional coor dinator that works off my Google Drive.”
MAR’s division of REACH®, (NAR’s tech nology accelerator program), is currently working with a Miami-based company called Real Grader, which evaluates pro fessionals’ social media presence across eight platforms and scores their profiles.
Paulson photographs each of his listings himself using a Matterport camera, but he considers the option of farming out photog raphy and website uploads equally feasible. Google Earth or Google Maps sub as free aerial-photo alternatives to more advanced and expensive drone photography. What Paulson appreciates most about these proptech options is the ability to up- or downscale them depending on the project and budget. “I don’t have to pay office or overhead fees, which makes my business 100%Sturrockscalable.”thinks all REALTORS® should be using some sort of customer relationship management (CRM) tool, such as Salesforce or Freshsales. “Something that offers auto mated communication with customers to keep you in front of them,” she says. “Then, I think social media is also so important,” she says. “Building your personal brand and getting it out there.”
Other essentials MLS is a must, Paulson and Sturrock con cur. The two real estate veterans also agree that there is a secondary group of proptech options that is equally essential. At the top of that list: the cloud. It’s a fundamental Paulson teaches in e-PRO ®, NAR’s real estate technology certification course. “I used to store everything on my PC; now, I just keep all my contractual documents on the cloud and Google Drive,” he says. “As long as I have an internet connection, I have access to all my files.”
Any real estate agents hiring house stagers would be remiss to ignore virtual alternatives like BoxBrownie. These online Do you want to be a virtual agent? “NFTs and Real Estate,” taught by Kathleen Ryan, CRS, is available at com/recordingsCRS.
The Residential Real Estate Council crs.com Sept/Oct 2022 33 iStock.com/Macrostore services edit and enhance photos, then use those photos to create floorplans and virtual interactive staging. “You can spend the $1,000-plus to hire a real stager and get scuffs on the walls, or you can pay around $20 per room to virtually stage it in a range of styles,” Paulson says. Help is here The beauty behind all proptech is that most of it comes with ample, affordable (sometimes-free) support. Paulson pre fers going straight to the source for the most granular knowledge possible, but associations and brokerages excel in their real-estate specific approach. “We have three full-time trainers and four full-time outreach people who train on all our prod ucts and services,” Sturrock says. “But we’re happy to customize a class for a specific bro kerage or have trainers from the individual companies come in, as well.” PROPTECH TOOLS BREAKDOWN FOR... on-demandWireless,dataandfilestorage searchingMLS Photography Virtual tours and staging Customer relation ship management(CRM) iCloud Apple’s cloud service, geared specifically to Apple devices and customers. icloud.com Google Drive The more-widely used cloud service from Google’s cloud service. google.com CoreLogic Matrix Real estate’s standard search platform for property listings. Includes property values, risk assessments and rental incomes. corelogix.com Rapattoni Known for its map-based searches. rapattoni.com Remine Superior in its “smart” data mining and seamless mobile integration. remine.com Matterport Pro2 Professional digital camera known for its high-resolution accuracy and 3D capture capability. matterport.com Google Maps One of several major internet-based sources of map and geographical imagery (others include Apple Maps). google.com/maps Google Earth The program-version of Google Maps. Includes satellite imagery. earth.google.com Matterport Software that creates 3D virtual tours from digital photographs. go.matterport.com BoxBrownie Photo editing, floorplan rendering and virtual staging service. boxbrownie.com Salesforce Optimal for teambased sharing workflowcommunications,ofandapps. salesforce.com Freshsales Tracks customers and leads and predicts sales and revenue using artificial intelligence. freshworks.com
Sept/Oct 202234 Market Values Insights from industry data The Residential Specialist trsmag.com AVERAGE COMMISSION BY STATESource: Clever For a home sold for $350,000 (approximately the national median home value), this translates to $7,906–$11,089. Listing commission rates can vary by as much as 40% depending on where you live. The Lowdown on commission rates * Due to insufficient data, commission rates in these states were inferred from regional averages. Rank State Rates 1 Massachusetts 4.84 % 2 California 4.91 % 3 District Columbiaof 4.96 % 4 New York 4.97% 5 Alaska* 4.99 % 6 Hawaii* 4.99 % 7 Oregon* 4.99 % 8 Nevada 5.02 % 9 Maryland 5.11 % 10 Connecticut* 5.12 % 11 Maine* 5.12 % 12 New Hampshire* 5.12 % 13 Rhode Island* 5.12 % 14 Vermont* 5.12 % 15 New Jersey 5.13 % 16 Virginia 5.23 % 17 Illinois 5.24 % Rank State Rates 18 Washington 5.29 % 19 Idaho* 5.36 % 20 Montana* 5.36 % 21 Utah* 5.36 % 22 Wyoming* 5.36 % 23 Florida 5.40 % 24 Minnesota 5.41 % 25 Arizona 5.43 % 26 Alabama* 5.44 % 27 Arkansas* 5.44 % 28 Delaware* 5.44 % 29 Kentucky* 5.44 % 30 Louisiana* 5.44 % 31 Mississippi* 5.44 % 32 Tennessee* 5.44 % 33 West Virginia* 5.44 % 34 Colorado 5.52 % Rank State Rates 35 Pennsylvania 5.53 % 36 New Mexico* 5.59 % 37 Oklahoma* 5.59 % 38 Texas 5.59 % 39 North Carolina 5.60 % 40 South Carolina 5.63 % 41 Michigan 5.64 % 42 Indiana* 5.67% 43 Iowa* 5.67% 44 Kansas* 5.67% 45 Nebraska* 5.67% 46 North Dakota* 5.67% 47 South Dakota* 5.67% 48 Wisconsin 5.67% 49 Missouri 5.73 % 50 Georgia 5.76 % 51 Ohio 5.81 % Average listing agent commission comparison WisconsinOhio National Average Nevada District of Columbia 0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 3.19 % 3.12 % 2.72 % 2.48 % 2.47 % Average buyer’s agent commission comparison GeorgiaTexas National Average New MassachusettsYork 0 0.5 1.0 1.5 2.0 2.5 3.0 2.89 % 2.88 % 2.65 % 2.36 % 2.27 % In Massachusetts, the average rate is 4.84%. Live in Ohio? You could receive up to 5.81%. On most home sales, that's a difference of thousandsofdollars.
Sept/Oct 2022 35 The Residential Real Estate Council crs.com iStock.com/cnythzl/Poligrafistka For information,more access the full survey report from Clever at listwithclever.com The survey found that depending on the region where you commissionpractice,splitscouldrangefrom 49.7 % – 50. 3% to 52 . 1% – 47.8% for the listing and buyer’srespectively.agent, Southwest Rocky MountainsSoutheast National Average NortheastMidwestPacific 0 20 40 60 80 100 49 % 51% 50 % 50 % 50 % 50 % 51% 49 % 51% 49 % 52 % 48 % 52 % 48 % Agents often lower rates to attract clients that are likely to use them for transactions.future AVERAGE COMMISSION BY REGION ■ isHomeownerarepeatclient ■ Low housing inventory ■ Higher property value ■ High buyer demand in the area ■ High competition for clients ■ Seller's situation (e.g., divorce) ■ Home is in excellent condition ■ Highly experienced home seller Factorsthatinfluenceagentstonegotiatehigherrates Factorsthatinfluencerealestateagentstoacceptlowerrates ■ Seller wants more expensive photographymarketing/ ■ Low value property ■ Buyer's situation (e.g., out of state) ■ Low buyer demand in the area ■ High inventoryhousinginthe area ■ Seller's situation (e.g., divorce) ■ House is in poor condition ■ House is in excellent condition 26% 22 % 9.716%%9.4% 8.1% 7.1% 1.7 % 41.72.1%%11.913.6%%11.3%10.9% 8.6% ■ Listing agent commission ■ Buyer's agent commission
The Residential Specialist trsmag.com Sept/Oct 202236 Council Classroom Strategies from the industry’s top educators SPECIALIZED KNOWLEDGE
By Kim Cameron, CRS N ow that we all have become com fortable with using multiple media channels, some of us are “out there” with a business persona on LinkedIn and in mail pieces, a fun persona pub crawl ing on Instagram and a political persona on Twitter. While being a businessperson doesn’t mean that you have to shut down different aspects of yourself, it’s important to maintain a consistent brand in your public-facing media. In the RRC course I’m teaching called “Digital Branding: Building Client Rela tionships,” you will find out why it’s so important to have a unified brand presence. One of my favorite quotes is from Jeff Bezos, who says, “Your brand is what people say about you when you’re not in the room.” So, when you’re not in the room, you need to make sure that there is consistency in your brand wherever it’s received by the public and your target audience—from a billboard to a centerfield banner at the Little League park to social media. Wherever you’re doing your mar keting, your professional persona is being perceived by the public, as well as your past clients and people that know, like and trust you. That messaging—your brand—should beInconsistent.thecourse, we will go over the details that make up a consistent brand message, like using the same typefaces and colors in your materials, and even something so basic as having an updated headshot. (We’ve all had that experience of meet ing someone whose ads we’ve seen and thought, “Is this the same person?”) Also, take a good look at your professional biography. Is it written in a third-person narrative? You might want to change “Jamie has been in business for 10 years” to “Jamie has been in business since 2012.” That way, you won’t have to update that statement every year. To develop your brand, it begins with reviewing aspects of your personality and your business strengths.
Kim onclassroomDigitalCameron’sMarketingcoursebrandingwillbeheldonSeptember28,2022.Registertodayat CRS.com
Kim Cameron, CRS, is a real estate expert from St. Louis, Missouri, running her successful team with her business partner, Sid. She is a high-energy speaker, trainer and top-producing REALTOR ®. Cameron currently serves on the Missouri REALTORSE3ElizabethisSt.standardsisExecutiveREALTORS®Committee,theprofessionalchairforLouisRealtorsandtherecipientof2019J.MendenhallAwardfromMissouri®forEnergy,EmpowermentandExperience.
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Brand-New Brand
The Residential Real Estate Council crs.com Sept/Oct 2022 37
Once you’ve laid this groundwork, begin with your print media, including your buy er’s guide, listing guide and other forms. These can then be adapted into digital ver sions for easy distribution. And make sure your professional social media accounts reflect your brand. These don’t have to be humorless and dry, but think what you would like to see from a professional you’d consult. Would you call a tax accountant whose business Instagram shows them a little too tipsy? Use your personal accounts for personal interests and let your business accounts make your brand the star.
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Find your voice. Your voice is the beginning of your brand. Are you sincere? Are you driven? Are you humor ous? If you are the kind of person who would say, “We’ll treat you better than family. We argue with family. We don’t argue with clients”—you can include a statement like this in your materials to give prospects an idea of your personality. Use your mission statement and core values. Your mission statement should share what you do and drive the decisions you make for the direc tion of your business. Your core values will guide your culture and how you do business and treat your clients. When you follow your mission state ment and core values, decisions become easy, and that’s what you want to share with the commu nity. Starbucks founder Howard Schultz has said, “If people believe they share their values with a company, they will stay loyal to the brand.” Craft your offer. Your brand communications must also include your area—or areas—of expertise. Find the proper balance between seeming like a jackof-all-trades and master-of-none and being pigeonholed into a narrow niche. For example, if you’re helping somebody buy a home, you don’t want them to say, “I hired someone else to list my house because I thought you only work with buyers.”
Jeff Bezos says: ‘Your brand is what people say about you when you’re not in the room.’”
—Kim Cameron, CRS
YourAutomatingFinances
Quick Links: Automate Budgeting tillerhq.com Automate Spending moven.com Automate Saving qapital.com For more availableIncreaseYouringwebinarcheckautomationbusinesstips,outtherecord“AutomateBusinesstoEfficiency,”at com/recordingsCRS.
The Qapital app is a good option for those real estate agents who want to turn everyday activities into ways to save, and because you are saving through your regular routine, you will hardly notice it’s happening. It also establishes savings goals and helps you create a budget to help you reach those goals.
S aving money can feel difficult and overwhelming as you get caught up in the day-to-day responsibilities of being a top-producing agent. Automating aspects of your business, like bills and finances, frees up time to focus on higher value-add tasks that directly produce income and help you acquire new clients. And with technology, automation is simpler and more efficient than ever before. Here are the most practical ways to incorpo rate automation into your finance routine and help your real estate business—and your life— run smoother.
Tiller allows you to track all your expenses painlessly. Purchase categories are assigned automatically, enabling you to see where your money is going monthly.
The Residential Specialist trsmag.com Sept/Oct 202238 Innovations Tech solutions for real estate SPECIALIZED KNOWLEDGE
If you are satisfied with your spending habits, you can use the data to plan and make future budgets. Other users of the app say that the automated features are what makes Tiller the fastest and simplest way to budget on a regular basis. And what real estate agent doesn’t appre ciate fast and simple?
Automate spending Moven is technically two sep arate but linked tools: an app-based budgeting program, and a cash management account with checking and sav ings features, and you can sign up for one or both. The Moven app is full of handy insights into how you are spending your money.
You’ll get a notice every time you make a purchase that includes a spending meter showing if you are on track or a warning that your spending is getting a little out of hand. It also includes person-to-person payments, direct deposit, bank account transfers, a MasterCard debit card and contactless payment options.
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Automate saving The saying is true: A little bit adds up over time. When it comes to putting money away, you can set up an auto matic transfer with your bank every month, or go the extra mile and use an app that puts tiny amounts away for you while also offering more.
Automate budgeting Budgeting is still the founda tion of financial stability. It’s helpful to know how much you can spend on personal entertainment in any given month versus for things like client appreci ation events—and, of course, ensuring you still have enough money to pay your bills. Tiller takes the pain out of budgeting so you won’t forget.
The Residential Real Estate Council crs.com Sept/Oct 2022 39 iStock.com/olm26250/TuracNovruzova
Many disruptors entered the industry during the upward market swing follow ing the last recession because they saw that real estate and related industries contributed a fifth of the value to the GDP. While they saw an opportunity to make money, they didn’t consider much other than technology, and they (and much of their leadership) don’t have real estate experience. So, when Bonnell projects ahead, some disruptors won’t be here in 2030 because at some point those busi nesses must turn a profit. Among those that remain, Bonnell believes there is a significant difference between the brands that will simply sur vive and those that will thrive. “I believe the latter will offer opportunities for agents to have a vested interest,” she says. “It doesn’t have to be residual income like EXIT, although that makes sense, but agents need to feel like they’re truly part of something. They want to be tied to a cause and add value.”
As the year 2030 approaches, there will be a need for the industry, brands and agents alike to amongclimateaffordabilitybychallengesthethemoreparticipateinbeingsolutiontoincreasingposedhousingandchange,others.
“Because many bought in a panic, often sight unseen and waiving home inspec tions, we’re seeing incredible buyer’s remorse because they didn’t get enough information,” Bonnell says. “So that tells me, moving forward we will need welleducated professionals.” Savvy profession als now and in 2030 will leverage skill set with technology and offer the speed and transparency that the consumer expects. Skill set and personalization will trump technology alone. The Metaverse is in the news, but con versations on Facebook or with an avatar are seldom as meaningful as those held face-to-face. While well-built tech can make one more effective, the experienced professional behind that tech is more important. “I think companies are push ing for more tech because there is a lot of money to be made, but I am optimistic that humans will win, and that the people and companies who put people first will be the ones who thrive in the next decade and beyond,” says Bonnell. Visit exitrealty.com to learn more about EXIT Realty Corp.
Success in 2030
SPONSORED CONTENT
EXIT Realty Corp. International’s co-chair, Tami Bonnell, is fre quently asked to project ahead to the year 2030 and offer her opinion about the real estate landscape at that date. Barring another unpredictable disruptor, like the pandemic or a recession, here’s a glimpse inside her crystal ball.
Next year, the youngest baby boomers will turn 60 years old, so in 2030, they will be 67. This means a significant portion of the population is aging out. So, how can the next generation succeed? For the first time in years, millennials bought more than 50% of properties over this past year.
This article was provided by EXIT Realty Corp Looking Ahead
As the year 2030 approaches, there will be a need for the indus try, brands and agents alike to participate more in being the solution to the increasing challenges posed by housing affordability and climate change, among others. “For example, we’re already seeing properties that aren’t being insured in California because of the fires, and if you don’t have insurance, you can’t have a mortgage,” says Bonnell. “It will become more important than ever for real estate professionals to funnel their expertise through highly-personalized service to their clients’ special needs.”
By John Dickson, CEO and president of Aon Edge T he peril of flood has been and always will be complex and dynamic. From urban flooding in unexpected areas to wildfires in drier climates that set the stage for mud slides, the question of when and where a flood is most likely to occur is difficult to answer. But what has become clear is that many people unknowingly face a more elevated flood risk than they did just 10 years ago. Simply relying on Federal Emer gency Management Agency (FEMA) flood risk maps (some of which are several decades old) doesn’t adequately equip homebuyers and their agents with the current information necessary to assess the risk of flooding to a specific property. During this hurricane season and beyond, agents play a more influential role than you might realize. Follow these steps to help ensure both you and your clients are fully aware of their true flood risk. For more tools to help under stand flood maps and zones, visit floodsmart.gov
Sept/Oct 202240 SPECIALIZED KNOWLEDGE Issues of Importance Highlighting timely industry updates The Residential Specialist trsmag.com
Flood Risk During Hurricane Season
According to Aon, last year, flooding in the U.S. cost $7 billion in economic loss, but just $ 2.8 billion of that loss was insured.
Too often, consumers turn to their homeowners’ policies to file flood loss claims only to learn they don’t cover flood-related damage. Educate your client today to avoid unpleasant surprises tomorrow. Connect your clients with flood risk professionals. We must stop thinking about flood risk in binary terms and start thinking about flood as a risk with multiple facets. Unlike other catastrophes, every state in the country can experience flooding, according to the NOAA National Severe Storm Laboratory. You can make a difference by connecting with flood risk professionals, such as local floodplain managers or home inspectors, who can answer questions about flood risk and offer options to help manage and mitigate that risk. Once your clients have the information they need, make sure they talk with an insurance agent who can help them discuss their flood insurance options. The idea of “it won’t happen to me” is never a valid risk-management strategy. It’s critical for homeowners to be honest with themselves about their flood risk and exposure and their readiness to respond to the unexpected. And as a real estate professional, you can equip them with the resources they need to help protect their homes, their businesses and, ultimately, their livelihoods.
Sept/Oct 2022 41 The Residential Real Estate Council crs.com
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Become an informative resource about the hidden risks of flooding and how they impact your community. Flooding is the most common and costly disaster in the United States. Agents must look at factors that impact flooding beyond designated flood zones. Flooding isn’t confined only to land touching rivers, lakes or salt water—everyone lives in a flood zone.
These flood zones broadly fall into one of two categories: ❶ Those where flood insurance is required by federally backed lenders ❷ Those where flood insurance is not required But know that where it rains, it can flood. Water does not stop at the artificial lines that define where flood insurance is required and where it is not.
Everyone lives in a flood zone
Provide the facts about the insurance protection gap The high economic cost of floods, juxtaposed by a substantially smaller amount of insured loss payment, highlights the magnitude of the flood protection gap in our country.
The Residential Specialist trsmag.com iStock.com/peepo/andresr Your Own Council News and updates DESIGNATION NATION Sept/Oct 202242 Stay informed of all diversity and inclusion measures at diversityCRS.com/ Diversity and Inclusion at RRC CRS WEEK: Say YesCRS!to CRS Week 2022 is just a few weeks away and members, state leaders and staff are gearing up to make this year’s celebration the best one yet. Great webinars, useful resources and educa tion discounts will be available to help bring awareness to the CRS Designation, along with contests, giveaways and CRS swag. Register yourself, and a guest,nonmembertodayat CRS.com/events/CRS-week .
A t RRC, we appreciate the importance of creating an environment in which all our employees and members can feel valued, included and empowered to bring great ideas to the table. A new page on CRS.com was launched, focused on the company’s diversity and inclusion efforts, that includes many additional resources to help. To further the commitment, it was announced in May that Juneteenth will be observed as an official organi zational holiday.
Sept/Oct 2022 43 WHY WORK WITH A CRS? Since January, the Council has released bimonthly social media ads geared toward consumers to help promote CRS designees. Each advertisement has garnered over 40,000 views and averages 200 clicks directing to “Find a CRS,” where consumers can search their market for a CRS designee to work with. We plan to continue these efforts to keep CRS designees front and center when it comes to home buyers and sellers. Make sure your profile is always updated on find.CRS.com! The Ultimate Home Inspection Experience SM Pillar To Post Home Inspection Packages include even more exclusive and innovative features than ever. These new services deliver speed, ease and convenience, getting you to closings faster, saving you time and delighting your clients. Featuring: 800-294-5591 | pillartopost.com *Where available. Not all services are o ered by every o ce. Each o ce is independently owned and operated. For peace of mind, don’t skip the Home Inspection! • PTP360* Interactive 360° Visual Inspection Summary • PTPEstimates* Cost estimate for Inspection Summary items Powered by PunchList • PTPFloorPlan An accurate floor plan of the entire home • PTPHomeManual The digital owner’s manual Powered by Centriq Experienceittoday!
I need help with the numbers of buyers I have, and I don’t want a team. How is your business structured? I have fasterandwithrelationshipsIagentsfellowwhohaveclosehelpme,Ihelpthemwhenneeded.Itriedusingatransactioncoordinator,butIfoundIwasbymyself.
Paul Pastore, CRS, Infinity Real Estate, Chandler, Arizona
I’ve had anywhere from one to three agents helping me over the years—but the more I’ve had, the more difficult my life became. For me, having one assistant/buyer’s agent is the best formula. We enjoy each other’s company, and the business runs smoothly.
Beth Jaworski, CRS, Shorewest REALTORS ® , Wauwatosa, Wisconsin
I’ve been a full-time solo REALTOR ® for almost 20 years, and this past year was the first time I was about to lose my mind. I was overloaded with buyers and had several agents within my company that were willing to help with showings. I wanted more consistency for clients and didn’t like them having to meet someone new every time. I ultimately hired a newer agent who is completely happy being an assistant, with no desire to go out on her own. She helps with showings and a lot of other tasks on the listing side. I decided to just pay her 10% of my commission, which has been a win-win for both of us, and she is ultimately making a lot more than half the agents in my office. I also felt offering her a percentage was the way to go, because I wanted her to have some incentive—the more I make, the more she makes.
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Darci Gillespie, CRS, Windermere Real Estate Co., Seattle, Washington
I used to have a licensed assistant, but it has been just me the past four and a half years. I’ve found having trusted agents throughout our company to help with showings on an as-needed basis works for me. I also refer buyers out to these agents if I am just too busy, going out of town or if the areas they’re looking to buy in are far from me. Don’t say no to new business—refer it!
Read Keller’sGary“Red Book: The Millionaire Real Estate Agent.” Find which of his seven levels is right for you.
Hollie Gondera, CRS , Haus Real Estate, Orlando, Florida
The Residential Specialist trsmag.com Sept/Oct 202244 Ask a CRS Advice from your peers Q & Have a great story to share? Email social@crs.com or look for andInstagram,onhappeningdiscussionsonlineourFacebook,LinkedInTwitterpages. DESIGNATION NATION
Jana Bantz, CRS, Berkshire Hathaway HomeServices, Summerville, South Carolina
The Residential Real Estate Council crs.com Sept/Oct 2022 45 CONNECTION PERFECTION It’s a Small World After All I believe that referrals, whether from a friend, client or another REALTOR®, are the best way to grow your business. For example, Paul Bell, CRS, who lives in Las Vegas, Nevada, had a longtime client whose nephew wanted to purchase a house in Pottsboro, Texas. Bell searched for a CRS in Pottsboro and found me, Sherry Smith, as another CRS member. He contacted me, and within an hour, I talked to Aunt Bonnie, who connected me to her nephew. The referral came about two weeks before the NAR 2022 Sherry Smith, CRS Paul Bell, CRSLegislative Meetings in Washington D.C., which I was attending. While at the event, I contacted Bell to give him an update— and I found out he was also in attendance. We met for the first time at the RRC eve ning mixer. I had the opportunity to meet Bell and his wife, Wende. The next evening, we connected again at the RRC Night Out dinner cruises on the Potomac River. It’s a small world, and making friends in the RRC community is so much fun. Sherry Smith, CRS, Ebby Halliday REALTORS®, Sherman, Texas Your Columbus Ohio Real Estate Connection Rick Wright 614-327-8081 I will personally handle your referrals 35+ Years of Experience★ RickWright@REMAX.net MID-WEST Selling Hudson County for over Two Decades! Gail GSpinelli@LibertyRealty.com201-988-8434Spinelli Never too busy for Referrals! Helping Buyers Find the Perfect Place to Call Home! Assisting Sellers Achieve Top Dollar! Trust, professionalism, knowledge, honesty & determination 525 WASHINGTON ST HOBOKEN NJ 07030 www.LibertyRealty.com/Gail-Spinelli D: 202 469 67 78 O: 202 518 8781 TEAM@METRODCHOUSES .COM 30% REFERRAL! Licensed in DC, MD & VA MID-ATLANTIC MID-ATLANTIC NORTHEAST PACIFIC RealMAUIEstate www.JoanneFoxxe.com 808-385-2918 jofoxxe@gmail.com Joanne Foxxe CRS, GRI, SRES e-pro Maui CRS director Keller Williams Maui Luxury Real Estate Kapalua Lahaina, HI 96761 Joanne Foxxe CRS, GRI, SRES, e-Pro, RSPS 808-385-2918 cell and direct line Search all Maui properties on my website www.JoanneFoxxe.com Quality isn’t expensive, it is priceless. Top 100 Hawaii Realtors 2017. Oh by the way, I am never too busy for your referrals. MAUI PACIFIC NA TX
The Residential Specialist trsmag.com Sept/Oct 202246 RRC Connect Expand your networkDESIGNATION NATION Melodee Rivera 303-868-3097TheRiveraTeam.comDENVERCO Neighborhood expert with 30 years of experience. Melodee buys and sells as an investor and understands the Denver Market! First time buyers, move up sellers, and investors small and big are her specialty! melodee@theriverateam.com WEST WEST Denver Colorado & Suburbs 30+ years full time Realtor® Your Referrals are in good hands! 720-220-7225ReadleJerryjerryreadle@remax.netNorthwest WEST A trusted name for nearly 50 years! Terry McGowan CRS, GRI, ABR, SRS, e Pro, SRES Cal DRE# 01126129 Sotheby’s International Realty 831 236 terry.mcgowan@sothebyshomes.com7251www.terrymcgowan.com Ask about Lake Wildwood near Grass Valley! Specializing in helping You reach Your Real Estate goals since 1991! CALIFORNIA’S MONTEREY PENINSULAAnn Skiera Broker, ABR, CRS, e-PRO, RENE, GRI, C2EX, AHWD, SRS Your Way Home to Tennessee 615-790-7400 O ce 615-584-4085 Direct www.AnnSkiera.comann@annskiera.comAgent Lic. #296978 SOUTH Mary Smith CRS Contact Me 386-848-2823Today mary@marysmithsells.com MarySmithSells.com Serving:Daytona Beach Daytona Beach Shores New Smyrna Beach Flagler OrmondBeachBeach SOUTH SOUTHWEST WESTSOUTH
The Residential Real Estate Council crs.com Sept/Oct 2022 47 Craig Zager • The Zager 775.901.4663Group www.LakeTahoeAgent.com Selling Lake Tahoe Since 1989 Over $1 BILLION in closed sales D ISCOVER IDAHO Mark Stevens 208-724-1703 Unparalleled Service • Attentive • Knowledgeable • Resourceful • Communicative • a Teacher at Heart • Devoted to being your most valued and trusted advisor. Mark@Amherst-Madison.com MarkStevensIdaHome.com SP43670 925-200-8495 WEST JACKIE ROSS GRI,Realtor/BrokerCRS,RSPS, ePro, Relocation Specialist Proudly Serving North Carolina areas: SouthernPinehurst Pines CarthageVass EXPERIENCED • CLIENT TRUSTED • RESULTS 904-613-4480 jackie.ross@BHHSPRG.COM A member of the franchise system of BHH Affiliates, LLC. Equal Housing Opportunity. SOUTH SOUTHWEST WESTSOUTH Contact Joe Stella: jstella@glcdelivers.com or 847-205-3127 Reach more than 30,000 CRS peers with your ad here.
Be an effective communicator You must know how to communicate at varying levels, from one-on-one conversations to making presentations to a large group.
E ffective leadership can determine the future success of entire busi nesses and organizations. Much of one’s leadership style will be dependent upon your own personality and that of those with whom you work with on a regular basis. And while there is no
2 Be agile and open to change You must know how to seize great opportunities when presented. An effective leader must be quick on their feet and very flexible. Businesses have countless moving parts, so change can happen at the drop of a dime. You cannot allow unexpected changes to completely derail business.
It’s crucial that you be able to share your input and ideas clearly and concisely.
As a leader, you must have a coherent vision for the future. Then, with the vision that you have for the company, you must be able to establish concrete goals that will facilitate growth and advance the business.
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Sept/Oct 202248 Balancing Act Practical strategies for restoring balance DESIGNATION NATION
Be decisive in your decision-making
1 Be a visionary
As things in business can move rapidly, an effective leader must be able to make solid decisions and stick with them. Unless there is substantial enough reason, stick with the decision you’ve made and see it through.
5 singular way to manage or lead a team, especially in the real estate industry, there are a few specific qualities that most effective leaders possess. If you want to improve upon your leadership skills and be better for your team, here are a few ways that you can become more effective.
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Qualities of an Effective Leader
4 Maintain optimism Know that sometimes you will make mistakes and not every decision will be as successful as you’d hoped for. That’s OK, and accepting these truths is crucial to being a leader. Stay focused on the overarching goals that you’ve set and don’t allow yourself to develop a negative outlook on business. You must establish a balance between hard truths and healthy optimism.
The Residential Specialist trsmag.com
It’s also important to know when you should be talking and when you should be listening.
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