The Residential Specialist November/December 21 by The Residential Specialist

B USINE S S INTE LLIG E N CE F O R THE R RC PRO FE SSIO NAL

NOV/DEC 2021

THE BEST OF THE BEST 1

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CRS contest winners share strategies that have helped elevate their businesses 18

 Adam Levy, CRS, is this year’s cover contest winner.

+ Risk management for REALTORS® 12 + Creating the perfect business plan 22 + 2022 market outlook 30 + Reenergizing your brand 36

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CHOICE OF HOME INSPECTION PROGRAMS & SERVICES

Ensure confident home ownership for your client. Find a local inspector or book an inspection today. pillartopost.com

THE RESIDENTIAL SPECIALIST

NOVEMBER /DECEMBER 2021

VO L . 20/N O. 6

Nov/Dec 2021 Vol. 20, No. 6

Cover art:  Sonya Revell

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18 22 26 30

See pages 22 and 30 for business planning articles.

FEATURES 18 Top Producers Tell All: This year, we highlight top- producing CRSs during a tumultuous period in the real estate industry.

22 The GPS for Success: Creating a business plan may seem daunting, but agents have advice on how to set yourself up for success. By Tyra Triche

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26 Not Seeing Is Believing: Buying homes sight- unseen continues to trend, and agents must assist their clients with these purchases. By Andrew Conner

30 New Year on the Horizon: As we head into 2022, agents should be aware of the projected market outlook for the upcoming year. By Michelle Huffman

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Nov/Dec 2021

CONTENTS

Vol. 20, No. 6

Aerial View

igital Channel: Online classes, tools and D resources available from RRC.

Alex Milshteyn, CRS

Market Pulse 8

ersonal Perspective: Tim Hur, CRS, P Point Honors and Associates, REALTORS®, Duluth, Georgia I s Cash Really King?: All-cash offers continue to trend in the current market. By Myrna Traylor

12 R eady for the Unexpected: Agents need to be aware of unforeseen business problems that can pop up without warning.

business planning

By Chasity Cooper

16 A t This Stage: Learn all about the certifications offered by RRC to give you a leg up on your competition. 34 M arket Values Insights from industry data.

Specialized Knowledge 36 C ouncil Classroom: How to reenergize your brand to enhance your business.

business planning

38 I nnovations: Software options to help create an amazing business plan. 39 A gent Insights: Tips for selling homes this winter.

40 W ide Angle: Lessons we can take from the Surfside condo collapse to improve HOA accountability.

Designation Nation 42 Your Own Council: RRC news and updates. 44 Ask a CRS: Advice from the country’s top agents. 46 RRC Connect: Expand you network. 48 B alancing Act: How to maintain a balanced and healthy diet with a packed schedule.

EDITOR Kimberly Cure kcure@crs.com 800.462.8841

Advertising Manager Jim Beckwith 312.321.4447 bd@crs.com The Residential Specialist is

ASSISTANT EDITOR published for Certified Residential Amelia Garza Specialists, general members and agarza@crs.com subscribers by the Residential Real CONTRIBUTING WRITERS Andrew Conner Chasity Cooper Michelle Huffman Myrna Traylor Tyra Triche 2021 BOARD OF DIRECTORS President Alex Milshteyn, CRS President-Elect Holli Woodward, CRS First Vice President Pam Ruggeroli, CRS Immediate Past President Richard Waystack, CRS Members Kim Cameron, CRS Sandy McRae, CRS Bruce Myers Greg Waldhour, CRS John Young, CRS Chief Executive Officer Lana Vukovljak Staff Liaison Patricia Stodolny

Estate Council. The magazine’s mission is: To be a superior educational resource for CRS Designees and members, providing the information and tools they need to be exceptionally successful in buying and selling residential real estate. The Residential Specialist is published bimonthly by the Residential Real Estate Council, 430 North Michigan Ave., Suite 300, Chicago, IL 60611-4092. Periodicals postage paid at Chicago, IL, and additional mailing offices. Change of address? Email requests to crshelp@crs.com, call Customer Service at 800.462.8841 or mail to RRC at the above address. The Residential Specialist (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 Council. POSTMASTER: Please send

PUBLICATION address changes to: MANAGEMENT The Residential Specialist,

c/o Residential Real Estate Council, 430 North Michigan Ave., 4 th Floor, www.glcdelivers.com Chicago, IL 60611-4092.

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Nov/Dec 2021

Aerial View

From the desk of Alex Milshteyn, CRS, 2021 RRC President

Year in Review

“

I’ve learned so much during my time as president and the years that I’ve been on the leadership team.

and asked: “What are all of the scenarios that could possibly happen, from worst case to best case?” This way, we at least had a playbook that we could turn to. We can flip to the chapter and have a better idea of what we’re in for, which prevents us from sitting in shock and awe when plans go awry. The Board has also taken on great strategic initiatives. One that I’ve personally worked hard on was to find new avenues for RRC to provide amazing benefits to our members. Over the next several months, we’ll launch plans to provide additional benefits to help make our members better real estate agents and to allow the organization to grow and become less reliant on membership dues. I’m looking forward to these plans unfolding over the next 12 months. I’ve learned so much during my time as president and the years that I’ve been on the leadership team. I’ve also met many people who have become lifelong friends. But one group I can’t forget to acknowledge is the incredible staff who works at the RRC offices in Chicago. They work every day to make sure that our members have the best tools and education, and are equipped to deal with whatever scenarios may arise in the real estate market. Everything we’ve accomplished this year would not have been possible without the RRC staff working as hard as they have. I look forward to assisting the Council in the future as immediate past president in 2022, and then for years to come as a huge supporter of the organization. TRS Photo: Scott Stewart

fter years of service to the RRC Board, I can say that it has been one of the greatest honors and privileges of my life to have been selected to lead the organization this past year. It’s been a challenging year to be president, considering the COVID-19 pandemic that is still affecting our lives every day. We wished that life would go back to normal in 2021, but things have not progressed as quickly as we all had hoped. Even as we end the year, challenges are still present, and we are being forced to navigate them. Some of those challenges were on display at Sell-a-bration® Re-connect in August, where we simultaneously held both an in-person and online conference to satisfy the comfort levels of all members. I pushed very hard throughout the year to make sure this conference not only happened but succeeded. The opportunity for our members to get together, whether virtually or in person, was something I felt we needed in order to reconnect and reengage. While I know in-person attendance was different than in years past, offering two options could prove to be extremely beneficial to the Council going forward. Unprecedented events and changes caused by the pandemic brought a focus on the need for contingency plans—both for our own businesses and for the Council. The RRC Board looked at the market

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Nov/Dec 2021

RRC strives to provide value to members in the digital space. Each issue of The Residential Specialist highlights classes, tools and other member resources available online.

Digital Channel

Online resources for RRC members

More Great Features Added to Find a CRS

n this issue of The Residential Specialist, we’re highlighting even more enhancements to Find a CRS, the online referral tool and member directory. Visit find.crs.com or use the mobile app to experience these new features, including:

Badges That Encourage and Reward

Current achievements, leadership positions, RRC Certifications and more will be featured on individual profiles.

Live News Feeds at Your Fingertips

Build Your Network, and Build Up One Another

Access Inman Select, NAR Advocacy and This REALTOR® Life blog posts.

Skills can be added as options on individual profiles, and you can endorse others’ skills and recommend agents you’ve worked with or know to strengthen your network (and theirs, too). The goal of these enhancements is to create a greater sense of community among our members. Think of this like Facebook—but better—for CRSs! With communities grouped by state/ region and an overall national community, you can share updates, ask for referrals, share your listings and develop relationships with some of the best agents in the business.

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PERSONAL PERSPECTIVE Tim Hur, CRS, considers himself a “foodie” and is shown here dining at one of his favorite restaurants, Field Day, in East Atlanta.

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Market Pulse TRENDING HEADLINES AND IDEAS

Photo: Scott Lowden

ALL-CASH OFFERS Learn how you can assist clients who plan on making or accepting all-cash offers during a sale.

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UNFORESEEN PROBLEMS Apply risk management principles to prevent issues before they arise.

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AT THIS STAGE RRC offers an assortment of certifications to help agents stand out from their peers.

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MARKET PULSE

Nov/Dec 2021

Personal Perspective

Profiles of people to watch

Tim Hur, CRS

Point Honors and Associates, REALTORS®, Duluth, Georgia

“

I think the one thing that I have learned from working with a lot of members of the RRC family is the story behind each real estate transaction is important.

Tim Hur, CRS, achieved the CRS Designation in 2014. He can be reached at tim@ pointhonors.com or 404-512-2322.

When did you choose real estate as a career, and how did you learn about the CRS Designation?

I became involved with real estate right after I graduated from college and got to meet a lot of great people. A little later, I discovered RRC and got involved because I learned its members are the best of the best in real estate. I wanted to be a part of the elite club. And, of course, several of my mentors in real estate hold the CRS Designation, so it was something that I really wanted to be a part of. I also got involved with the local chapter of the Asian Real Estate Association of America (AREAA), where after a decade of service at the local and national level, I was elected as the incoming president in October 2021.

You’ve acted as emcee for Sella-bration®! Do you enjoy the RRC gatherings? That’s the thing that I can’t say no to. I’ve spoken

at Sell-a-bration before, and it was a lot of fun, but I really like being a part of the community that gives back. It furthers our relationships from a multicultural standpoint. It’s great to be a part of the RRC family. Speaking on stage is nice, but it’s great when we can break bread, become better friends, look for opportunities to make transactions together and really learn to love one another.

What is going on in your market right now?

I’m in the metro Atlanta market, and just like everywhere else, we are plagued with low inventory and multiple offers, which is somewhat new to our market in the past year. But we will all survive. I tell everyone the best thing we can do is to not forget to be nice to one another and work hard to get a deal done. Many of my mentors were selling real estate when interest

rates were much higher—even I was selling real estate when rates were between 7% and 9%. We will all be fine—it is understandably a tough time. You really need to refine your resources and be acutely aware of what’s going on in the market.

transaction itself, but really being able to help the client with the story. That’s how we set ourselves apart in our marketing: We don’t talk about the dollar amounts when we make a sale, we talk about the story behind it. That’s what’s really important.

Have you had any unusual transactions lately?

What else are you doing in the community beyond RRC, AREAA and real estate?

In Atlanta, we weren’t used to multiple offers, bidding up and waiving appraisals—this is all kind of new to a lot of us in the market. We’re seeing a lot more earnest money disputes—some people are just walking away from their earnest money. We represented two sellers not too long ago where the buyers decided just a couple of days before closing: “You know what? I don’t want to buy it anymore.” The sellers kept the earnest money but it’s disruptive. I think the one thing that I have learned from working with a lot of members of the RRC family is the story behind each real estate transaction is important. It’s not about the

I am a Rotarian, and we help with many other nonprofits in the area to try to make sure everyone’s OK. For example, the shootings [of Asian women and others in March 2021] happened about a mile from my house. So, even though we are all very busy with business, we just need to make sure that all of us are doing the right thing. A lot of our team members and people with whom I work are still very much involved with their nonprofits of choice, whether it be through service or religious activities, so we just have to make sure that we’re all doing something positive. TRS

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How to facilitate transactions with no mortgage All-Cash

Offers

Nov/Dec 2021

Is Cash Really King? By Myrna Traylor

s many REALTORS® navigate frenzied housing markets, buyers are trying to find any way to set themselves apart and have their offer accepted. One method is to make an all-cash offer. Cash home purchases have always been an option, but most buyers just avail themselves of a mortgage lender and spread out their costs over years (and take a mortgage interest tax deduction). But lately, despite historically low interest rates, more buyers are coming

to the table with cash in hand. In fact, NAR’s REALTORS® Confidence Index Survey showed that 25% of spring 2021 home sales were made with cash, a notable increase over 15% in 2019 and 20% of sales in 2020 for the same period.

of spring 2021 home sales were made with cash, a notable increase over

15 % 20 %

in 2019 and

of sales in 2020 for the same period. Source: NAR

iStock.com/brightstars/Moto-rama

S ee more all-cash offer statistics in Market Values on page 34.

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MARKET PULSE

Nov/Dec 2021

All-Cash Offers

How to facilitate transactions with no mortgage

HELP A BUYER WITH LENDING LOOK GOOD IN AN ALL-CASH GAME

—TJ Schroeder, CRS

For more ways to skillfully and carefully position your offers for a competitive advantage, check out the free member benefit webinar, 9 Contract Terms That Win Sellers Over, at CRS.com/webinars.

“I had a first-time buyer who was trying to buy a house for seven months with another agent and not getting anywhere because they needed a loan,” Rath explains. “I said, ‘Let me fix this.’ I talked to the right lender, got them approved and positioned so they looked like cash, got an accepted offer at asking price within five days, against four competing offers, two of which were all-cash over asking, and closed escrow in 21 days.” Rath says this story of a happy buyer and a happy seller all came down to letting the seller know, “We will get it done and closed—no games.”

buyers make sure they are getting the best value for their money. Some cash buyers get a little cocky and offer negligible down payments of say, 3%, which doesn’t compare well to a buyer with lending who’s putting more money down. “I realize it’s all cash and you have the proof of funds,” says Schroeder, “but don’t you want to show something to the seller? The Digging into the details person who’s offering 25% has already made Nevertheless, the showing, offer and a strong commitment to the property.” contract portions of the process must Carl Medford, CRS, with Keller Williams be handled, and there may be bumps Benchmark Properties in Fremont, Calialong the road. fornia, says that all-cash offers in the Bay “It’s amazing how many people have Area have actually declined. “We typically cash to do deals,” says TJ Schroeder, CRS, broker associate with Berkshire Hathaway see cash offers from investors,” he says. “When you get to the price point that we’re in Palm Desert, California. She counsels operating at in our markets, it no longer sellers to remain calm, even though a cash makes sense to invest in this area. We used offer may appear very tantalizing. “Just to see a ton of offshore money coming in, because you have an all-cash offer doesn’t snapping up properties, and that money mean it’s the best one,” Schroeder says. She has relocated to lower-priced markets, like urges prospective buyers to give their best offer first. “Don’t think that I will be coming Texas or Arizona.” However, Medford has enough experience back to you and asking you for highest and with all-cash offers to protect his sellers best,” she says. The market is so hot that from deals going sour. “People coming in multiple offers are almost guaranteed. with cash seem to think that they can get it When Schroeder represents cash buyfor a lower price,” he says. “I understand the ers (who aren’t investors), she counsels logic at some level, but our job is to get the them to be calm as well. “They get excited seller the highest price possible. So, in the because they have the resources to buy majority of cases, the cash offers represent [what they see immediately]. When we’re the lower end of the offers that we would working in their price range, I try to temget in a multiple-offer situation.” per their emotions a little bit” and help One of the major advantages of all-cash transactions is speed. Buyers with cash in hand don’t need to wait for financing and can waive some contingencies, such as appraisal or sale of a previous home. Sellers who want a quick closing find this very appealing.

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iStock.com/Kirill_Savenko/Moto-rama

“

Just because you have an all-cash offer doesn’t mean it’s the best one.”

Steve Rath, CRS, with Better Homes Realty in Granite Bay, California, says that when he works with buyers who have lending, there is a way to make their offer look as good as cash to a seller. “A really experienced REALTOR®, in coordination with a very good lender, can get a loan-backed offer to look just like cash,” he says. Make sure that the lender uses programs built into Federal Housing Administration (FHA) or Freddie Mac systems that can waive an appraisal. “If the ratios are correct, and the property and down payment are right, the lender can approve the loan,” he says.

Nov/Dec 2021 On the flip side, Medford says that a cash offer above list price with few or no contingencies moves the offer to the front of the line.

Watch out for bad bidders

Investors who are looking for homes to rent or flip are perennial cash buyers. But some of them think they can get away with bad behavior that other buyers can’t indulge in. “We call this ‘the games investors play,’” says Medford. “An investor puts in a cash offer that defeats everybody else’s offer and then neglects to get their deposit into escrow in a timely fashion. In the meantime, they’ll come in with their inspector or contractor, then come back to the seller and say, ‘Well, you know our deposit isn’t in escrow, so you really don’t have a contract until that money’s there, and oh, by the way, we’re going to offer you substantially less.’” Medford’s defense against these shenanigans is to include a requirement in the counteroffer that says the good faith deposit must be in escrow within 24 hours. “Acceptance of this contract constitutes 24-hour notice to perform,” quotes Medford. “If [the cash] is not there in 24 hours, we

say, ‘Good luck.’ And the second thing we add to the counter is language saying the price will not be renegotiated under any circumstances; property to be purchased completely as-is.” Steve Rath, CRS, a broker with Better Homes Realty in Granite Bay, California, also has dealt with bad-faith offers. He reports that there are “tons of cash offers on low-priced homes, but those same buyers are throwing out three, four or five offers [on multiple properties] at a time— which is illegal, by the way. They might get three accepted, then they bail on two and keep the one they want. “I really caution [my sellers] against cash offers,” he continues, “especially from rookie agents or agents not from the area because you never know the quality of that offer.” He also uses the counteroffer to eliminate any wiggle room for unreliable prospects. “I write out deadlines that they need to meet, and I submit the disclosures with the counter, which starts the clock, so they don’t have 10 days— they have two days. I make it so tight that if they are a real cash buyer, they can meet those goals. And if they’re playing games, they won’t.” TRS

“

A cash offer above list price with few or no contingencies moves the offer to the front of the line.” —Carl Medford, CRS

MARKET MOMENT

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A Decrease in Foreign Residential Buyers In July 2021, The National Association of REALTORS® (NAR) held its Real Estate Forecast Summit: Global Update event, spotlighting international home sales trends over the past year. Lawrence Yun, Ph.D., NAR’s chief economist and senior vice president of research, gave a presentation entitled “International Transactions in U.S. Residential Real Estate.” According to the data he presented, the number of foreign homebuyers in the U.S. is at its lowest point since 2011 (when NAR first began estimating foreign buyer purchases). Here are some other highlights:

We’re seeing an all-time low in foreign buyer purchases of existing homes, with a decrease of 27% by dollar volume and a 33% decrease in raw units. Foreign buyers purchased less than 2% of existing homes in the U.S.— the lowest figure over the last decade. Canada, Mexico, China, India and the United Kingdom accounted for the top five countries of origin among foreign buyers in the U.S. REALTORS ® reported that foreign buyers purchased properties in 48 states. The states with the highest percentages of foreign buyers are: Florida ...................... 21% Texas .. ......................... 9% New York .. .................. 4% California ................. 16% Arizona ....................... 5% New Jersey................. 4% While total number of sales to foreign buyers are down, foreign buyers typically purchased homes at higher prices than U.S. residents did. The foreign buyer share of $1 million-plus homes is 10%, which is ahead of the 6% national buyer share. TRS

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MARKET PULSE

Risk Management

Nov/Dec 2021

Dealing with unforeseen problems in business

Ready for the Unexpected By Chasity Cooper

ike any industry, the real estate business has experienced its fair share of changes and challenges over the past year. As the coronavirus pandemic continues, REALTORS®, especially those who own their own businesses, are finding that being flexible and willing to change course is crucial. Risk management, which is defined as the process of identifying, assessing, evaluating, treating, monitoring and reviewing a risk, is a skill that REALTORS® must constantly hone. Whether it be a homeowner deciding to take their property off the market or a

new piece of legislature at the local, state or federal level, the real estate marketplace brings forth several inevitable uncertainties. Luckily, there are ways to prepare and pivot when unexpected issues find their way to your doorstep.

The ability to adapt

No matter what you might have learned in real estate courses, dealing with an unforeseen problem like property damage, environmental risk or even litigation will absolutely push you to think creatively. But when the circumstance is out of your The Residential Specialist trsmag.com

iStock.com/bymuratdeniz/fonikum

Nov/Dec 2021

2. Set the proper expectations with all parties involved

Especially when it comes to the onboarding process, it is crucial to explicitly state what can and cannot be achieved in your scope of work.

iStock.com/cagkansayin/Pavel Muravev/bankrx/Dilok Klaisataporn

3. Keep records of everything

control (like a global pandemic, for example), you must do your best to adapt quickly. Timothy Kinzie, CRS, is the founder and CEO of Montlor Luxury Realty, a national real estate company based in North Carolina. When the pandemic began in March 2020, he realized that he and his team had to move quickly to keep business rolling forward. “I think that going into any business, but especially real estate, you need to inherently have problem-solving skills and an entrepreneurial, creative mindset to resolve issues as they arise,” he says. Over the last year, Kinzie and his team leveraged technology and relied on robust marketing materials like videos, 3D tours and quality photos to The Residential Real Estate Council crs.com

Emails, text messages, phone records and receipts are all important documents to hold on to, just in case you need to reference them later. 4. It’s OK to say no

Not every client is going to be a good fit, and that’s OK. Remember to do your due diligence when vetting potential clients or vendors.

S I N ES

S ANNI NG

From the initial discovery call with a potential client to closing on an offer, you want to make sure you’re communicating in a way that’s frequent, clear and concise.

1. Always communicate

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4 RISK MANAGEMENT BEST PRACTICES

“

I think that going into any business, but especially real estate, you need to inherently have problem-solving skills and an entrepreneurial, creative mindset to solve problems as they arise.”

—Timothy Kinzie, CRS

MARKET PULSE

Nov/Dec 2021

“

We have strongly encouraged our agents to study their listings, and even if it doesn’t say anything about specific COVID-19 restrictions, it’s in your best interest to have clients wear a mask during a viewing and/or to wear booties and have gloves available just as a precaution.”

Risk Management

Dealing with unforeseen problems in business

showcase properties while social distancing measures were in place. “During the pandemic, a lot of properties were failing. To address that problem, we built an entire inside sales staff to capitalize on converting business that was struggling,” Kinzie says. “Being innovative to problem-solve was something that we were able to adapt to, and I think that it was the perfect time to grow our company and exceed our goals.” To acclimate to unforeseen circumstances, though, Kinzie strongly recommends having important resources in place. From additional capital on reserve to insurance policies and access to legal support, creating standards for yourself, your staff and how you conduct business can keep you out of trouble.

Cover your bases

Mark Handlovitch, CRS, who is a REALTOR® based in Pittsburgh, says now more than ever, REALTORS® must be overprepared rather than underprepared. “With COVID-19, for example, it’s the interpretation of the CDC guidelines and what you can and cannot do as far as gathering is concerned,” he says. “We have strongly encouraged our agents to study their listings, and even if it doesn’t say anything about specific COVID-19 restrictions, it’s in your best interest to have clients wear a mask during a viewing and/or to wear booties and have gloves available as a precaution.” In Pittsburgh, Handlovitch says that the local and state REALTORS® associations have created COVID documents

PRACTICAL PROBLEMS While general risk management practices can help a REALTOR® navigate unforeseen problems, there are several issues that all agents will likely need to deal with at some point in their careers:

—Mark Handlovitch, CRS

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Nov/Dec 2021

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for agents to ensure that they, as well as their clients, are protected throughout the transaction process. “It’s important for agents to make sure that their brokerage has the proper errors and omissions coverage and that it is up to date,” he says. “Quality over quantity; it’s not about the price, it’s about the coverage.” When Kinzie started his real estate career at age 26, he received important advice from his father-in-law that has stuck with him for more than a decade: “He told me, ‘Tim, I want you to remember, some business is a blessing not to get,’ and that’s because a lot of the risks that you mitigate for yourself as a business or as an agent are by making sure that the people you’re

Integrity over everything

working for are also conducting themselves with integrity.” Handlovitch believes clients must also have a complete understanding of the situations they are in. “I will tell people all the time not to be afraid to fire a client,” he says. “If you have concerns about a particular client, then maybe they’re not the right fit for you.” When it comes to learning how to navigate unexpected issues that may arise, Kinzie says that having a network of strong mentors can help all agents at any level of their career navigate the changes and challenges the industry may bring. Handlovitch agrees: “Don’t just try to take the load on yourself and think that you can conquer the world,” he says. “Reach out and seek help from other agents, brokers or even home inspectors.” TRS

f Liability — While working for clients, there may be instances where legal action is taken against you. For example, an injury that occurs during an open house you’re holding or any damage that occurs during a showing of a property, could land you in legal hot water. Be sure to have an up-todate general liability insurance policy to cover these issues should anything go wrong. f Ethics — Being as transparent as possible is necessary to prevent any sort of ethics complaint you may receive from a client. To avoid being sued for a violation you may not have even known you’ve committed, be sure to have every detail of the home transaction in writing. Different associations may have different codes of ethics, but NAR has an extensive and detailed set that includes most industry best practices. Study these to ensure your conduct is always professional. f Market volatility — This is a problem that is almost unavoidable, as individual agents can’t control what’s happening in the real estate market at any given moment. What you can do, however, is stay up to date on industry trends to anticipate any market fluctuations. Annual appreciation of home values, low inventory and homes selling above asking price are signs of a strong market. Frequent price cuts, depreciation of home prices

year over year and rising inventory may mean that the market is slipping. Timothy Kinzie, CRS, founder and CEO of Montlor Luxury Realty in North Carolina, shares a slightly different problem that he had to account for early in his career: Growing too big, too fast. “While most successful agents account for changes in the market, I’ve noticed that many fail to anticipate the resulting issues that arise when their own business grows at a rate they didn’t think was possible,” he says. This happened with an earlier, more localized business of his, as he realized limitations he had unwittingly incorporated into his business model prevented him from taking his brokerage to the next level. “Before I took my own luxury real estate brand to the national level, I actually built and sold a completely different real estate brokerage because of the business model’s self-imposed ‘success ceiling,’” Kinzie explains. “The instant I realized that national and global growth was my true ambition, it became clear that I would need a completely different vehicle to get myself there. Had I possessed the foresight and wisdom of simply beginning with the end in mind, I could have saved myself a lot of time, energy and money by structuring the correct business plan to begin with.”

The Residential Real Estate Council crs.com

Being as transparent as possible is necessary to prevent any sort of ethics complaint you may receive from a client.

To learn how to recognize risk in your business, it’s crucial to understand how state and federal laws and regulations apply. For more information, visit NAR.realtor/riskmanagement.

MARKET PULSE

Nov/Dec 2021

At This Stage

Business solutions for CRSs at all stages of their careers

marketing ideas, build relationships and act on what you’ve learned. Here’s a look at the professional certificates you can choose from:

Real Estate Investing Certification — NEW

Interested in growing your financial portfolio? This certification’s curriculum focuses on working with real estate investors and how you can become an investor yourself. Add this certification, and you’re one step closer to becoming an investing powerhouse.

Inside Sales Agent Certification — COMING SOON

To learn more about all of the certifications available from RRC, visit CRS.com/ learn/certificates.

ith today’s market being as competitive as ever, it’s important to distinguish yourself among other REALTORS® and win over your clients. One way to boost your credentials is with certifications—getting certified in specialized skill sets shows you’ve dedicated both the time and effort to master competencies to better assist your clients. When they see you’ve gone the extra mile to continue your education in certain fields, clients will feel more confident in leaning on you during their homebuying or selling process. The Council’s certifications help you better serve clients, facilitate listings and transactions, stand out with unique

Negotiations Certificate

Looking to fine-tune your negotiating skills and turn a “no” into a “yes”? These courses dive deep into the psychological aspects of negotiations, allowing agents to master this skill and grow their expertise.

Luxury Homes Certification

This certification is for agents looking to hone their skills in the ever-growing luxury home market. The courses included give REALTORS® the knowledge needed to approach this niche market, including pricing strategies, negotiation tactics and how to stand out from the crowd. The Residential Specialist trsmag.com

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Staying One Step Ahead of the Competition

Inside sales agents (ISAs) are the key to unlocking up to five times more income for a real estate team rather than just relying on their standard sphere of influence. With this certification, you’ll learn a variety of skills you can use to become an ISA and tap into the high earning potential of this career path.

Nov/Dec 2021

MARKET MOMENT

An Urban Decline Smart Home Certification

The Smart Home Certification is for the REALTOR® who wants to develop their expertise in the technology, privacy issues and transaction best practices involved with selling and buying smart homes.

Residential Listing Certificate

This program helps REALTORS® master the art of listing residential properties. Enhance and differentiate your listings with the strategies and tools provided in these courses.

For the second year in a row, populations in the country’s largest urban counties have decreased, according to census estimates from The New York Times. These metro areas include Chicago, New York, the San Francisco Bay/Oakland Area and Los Angeles. While this drop has been influenced by domestic populations moving out of crowded cities to sparsely populated suburbs, lower international migration is seen as a main driver of this decline, with large urban county populations shrinking by 0.3% over the past year. Urban population growth has been steadily declining since 2012, largely due to the lack of new construction needed to welcome new residents. Coinciding with this trend, lower-density suburban counties have been growing the fastest, with populations increasing by an estimated 1.3% from July 2019–July 2020. TRS

LOWER-DENSITY SUBURBS GREW FASTEST IN 2020 July 1, 2019, to July 1, 2020

-0.3% 0.6% 1.3%

Digital Marketing: Social Media Certification

In today’s day and age, to be a master marketer, a REALTOR® should be on social media. This certification will make you an expert in various social media resources and sites that can help promote your business and the properties you represent. Don’t lose out on another client—look to see which skills you can sharpen, and begin your certification journey. The more you learn, the more you have to offer as an agent. TRS The Residential Real Estate Council crs.com

0.5% 0.3% -0.1%

Source: Census annual population estimates-The New York Times

■ L arge metros: urban counties ■ Midsize metros ■ L arge metros: higher-density ■ Small metros suburbs ■ Nonmetropolitan areas ■ L arge metros: lower-density suburbs

Top

Nov/Dec 2021

 Adam Levy, CRS, has worked tirelessly this past year to become one of the top CRS producers.

Photo: Sonya Revell

CRS Designees are the best real estate agents in the industry.

Here, we highlight our top producers* who have shown tremendous growth over the past year and how they continue to thrive despite market volatility.

*Recorded sales numbers as of September 2021 The Residential Specialist trsmag.com

Producers W I N

E R

Adam Levy, CRS

tell all

Adam Levy, CRS, is a broker-associate with Berkshire Hathaway HomeServices EWM Realty in Miami, Florida, and is on track for $50M in sales this year with 45 transactions.

The origin of Levy's success dates back 24 had a comforting, community feel that we years ago, when his mom (now his business were all in this together,” he says. “I think partner) told him that the most important it was just good timing—like a lot in real relationships he would have in this indusestate, it’s just timing.” try were with his fellow REALTORS®. Even though we are close to two years From that point, Levy understood that past the initial shutdown in 2020, and if fellow real estate agents were treated despite Levy’s increasing success, he still as business partners, it would create an makes a point to continue learning. He atmosphere of respect—resulting in more watches webinars, does online research properties, offers and sales. and tests out different technology, so he Fast-forward to this past year: In addistays current. “I like to show off new techtion to approaching his peers as partners, nology at the listing table,” Levy says. Levy also thrives in treating his clients “That way, we’re able to stand out and be with the same respect. Taking it a step considered more often.” further, he treats them like family, as well. Levy also says the CRS Designation has Throughout the pandemic, Levy made brought him added clout, more substance many of the adjustments that other real and more credibility. “It shows potenestate agents did, implementing various tial and current clients that I want to be technologies to assist buyers and sellers— their trusted advisor, one similar to their Facebook Live open houses, Zoom listing attorney, family doctor or their CPA,” he appointments and walk-through video says. “I want to fit right in with that level tours—but one approach stood out from of professional in their lives.” the others: his personal touch. With everything he has learned and “The overarching method I adopted was his track record of sucsimply to reach out to my sphere and let cess, Levy believes that them know that I genuinely cared about agents can always get them,” Levy says. “And most importantly, better and improve. I showed those that I was working with “I regularly rehearse, that when the pandemic hit, we were review and challenge going to get through it together.” myself so that I can get Contacts are a large part of a REALTOR®’s better at my job,” he says. business. When things slowed down, Levy “My routine has been sent a direct mail piece that included a famaltered, revised and ily photo, which resonated with people and upgraded—I think that showed clients that he was there for them gives me the edge over during this difficult time. “The family photo my competition.” The Residential Real Estate Council crs.com

Nov/Dec 2021

“

The overarching method I adopted was simply to reach out to my sphere and let them know that I genuinely cared about them.” —Adam Levy, CRS

Adam Levy, CRS, (second from left) poses with his family (from left to right: Jordyn, Aidan and Jen) at his son's high school graduation.

Nov/Dec 2021

RUNN

 Karen King, CRS, shown recovering from a brain tumor removal in July 2020, and posing at an event to help support our military.

R-

Karen King, CRS

Karen King, CRS, is a REALTOR® for Karen King Group with RE/MAX Connections based in Monson, Massachusetts, and has made $18.4M in sales this year with 68 transactions.

King lives and works in Monson, Massachusetts, a town with a population of 8,500 residents. She is one of the town’s biggest advocates, and even started two Facebook pages to promote it: Monson MA Fun Places to Visit and Monson Military Care Package Drive, to support our military. This passion is reflected in the way she cares for her town and gives back. “I show people that I’m not just a REALTOR® but a good neighbor and care about my community and our military,” King says. When it comes to giving back, it’s not just in the community—King strongly believes in mentoring and taking people under her wing to help them fly. One of her buyer agents was once a waitress, and King worked with her to become a full-time agent who now is thriving in the industry. This hands-on approach is reflected in who she is as a person and her career, and

it’s her “one-stop shopping approach” that King attributes her success to. “I have names for all services that I give to my buyers/sellers, so they can call me for anything at any time, even if we aren’t actively working together at the time,” King says. “I keep in touch with past clients and make sure they know it’s my pleasure to serve them. Every client is treated as if they’re my family.” Because of the way that King treats her clients—and the “get what you give” mentality, that love has been returned tenfold, especially over the past year in her deepest time of need. In July 2020, she had an acoustic neuroma brain tumor removed during a six-hour surgery. It took her weeks to get back on her feet. “My clients brought me dinners, cards and made sure I knew everything was going to be OK, just like I always strive to make them feel,” she says. When it comes to the logistics of her business, King believes in video and professional photography, and she invests heavily in them for each listing so that it not only attracts buyers to a home, but many sellers look to see what type of marketing she does. A tried-and-true method that will always be relevant for her is communication—following up and something as simple as always answering the phone are key. “We are in an instant-gratification world. so being timely and treating each client as if they are the only one is so valued,” she says. King has been a CRS for over 30 years and credits the superior training and networking with other CRS Designees as what has brought her business to another level. “I learned early on to focus on those who do more business than I do and to listen to those who have paved the way before me. I’ve attended many RRC conferences, and each and every time I have increased my sales.” The Residential Specialist trsmag.com

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Nov/Dec 2021

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Greg Hanner, CRS

Greg Hanner, CRS, is a broker/owner at Garden Realty in Waterford, Connecticut, and has made $22M in sales over 74 transactions this year. Last year, Hanner helped 74 families and generated $21.46 million in gross commissionable income as a solo agent without any transaction coordinators or personal assistants. As you may have guessed, Hanner is a hands-on type of agent. Instead of embracing the team approach that many agents utilize, he prefers to provide that extra layer of personal assistance himself. Hanner even goes as far as wearing the hat of a home inspector when needed, pointing out physical problems of the home to buyers; or an appliance repairman, walking homeowners through A/C issues. His goal is to make a positive impact on his client’s buying and selling experiences, and the connections he makes last way beyond the closing table. “Many buyers call with home-care questions years after their closings, and I love helping them solve their problems,” Hanner says. “I make myself available to answer any questions that come up after the deals are done.” The Residential Real Estate Council crs.com

The challenges of the past two years didn’t affect Hanner or his business because he’s always had tech skills and considers himself a “wired agent.” But he’s taken his use of technology up a notch to match market needs, going all-in on video and generating broker previews for clients to review remotely. This has served him well with non-local buyers. “They have a margin of safety when they work with me since I have 35 years of custom-building experience, so I quickly identify things during first showings or walkthrough videos,” he says. For his sellers, he provides professional photography, a narrated video walkthrough and a 3D tour, which includes a floorplan. Being active in his local association has been a key ingredient for Hanner’s transition from part-time agent to becoming a top producer in his local market. To extend his growth further, he decided to obtain the CRS Designation. “When you are dealing with other agents, we inevitably look at who’s on the other side of the transaction,” he says. “I feel that my designation has paved the way for many of my buyers to get deals ahead of others. The CRS Designation essentially certifies that I’m an agent who is a pro, and one who’s serious about what I do.” TRS

 Greg Hanner, CRS, takes a photo with his family.

Every year, The Residential Specialist asks RRC members for submissions for its annual cover contest. Stay tuned for more details on 2022’s contest— it could be you on next year’s cover!

Nov/Dec 2021

THE

GPS

C E C S U

FOR

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S I N ES

S PL ANNI NG

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Nov/Dec 2021

By Tyra Triche

Real estate agents and brokers come from several different career fields, backgrounds and specialties.

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For some, creating a business plan prior to getting into the industry is a no-brainer. However, for many, a business plan is something they’ve never had to create before—and it may not have even crossed their minds. As a new agent, Heather Thurber, broker associate at Better Homes & Gardens Wine Country Real Estate in Santa Rosa, California, says it was a bit difficult to make a business plan at first. “A big part of my business planning every year is looking back at the previous years to see where I was most successful generating business and where I put my time that wasn’t successful,” she says. “In that first year, you don’t have anything to call upon. Making big goals, I found, was very challenging when I didn’t really know what was even possible.” Creating a business plan for the next year—or longer—can be a daunting task. It is, however, one of the most valuable tools for running a successful real estate business. Waylon Chavez, CRS, REALTOR® and owner at ABQ Premiere Properties in Albuquerque, New Mexico, looks at real estate and business planning like a GPS. “If you don’t put in a destination, the GPS won’t work,” Chavez explains. “You need that destination to work toward, so you can know if you’re on track.”

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“

A lot of people in their business plans forget the step-by-step and only create the outcome— they don’t talk about what they’re going to do to get there.” —Nick Solis, CRS

Nov/Dec 2021

The way that agents go about creating their business plan differs. Some come up with a plan in a couple hours, while others take days or weeks to complete theirs. Research done by Harvard Business Review suggests that the optimal amount of time entrepreneurs should spend on planning is three months. With this time frame in mind, you should begin business planning three months ahead of the new year. For some this is an individual effort, while others prefer to work with a team to devise ideas and strategies. However you choose to operate, a few elements that most agents and brokers have in each

plan include goals for target customers and lead generation, marketing tactics, revenue projections and competition research. “A lot of people forget the step-by-step and only create the outcome—they don’t talk about what they’re going to do to get there,” says Nick Solis, CRS, managing broker at Berkshire Hathaway HomeServices Drysdale Properties in Livermore, California. He advises agents to break down their plan into actions and include time off in their plans. Solis also spoke to the importance of SWOT analyses during the business planning process, or identifying your business’s strengths, weaknesses, opportunities and threats. It can be a challenge putting these things into words, so having another set of eyes in someone you trust to provide feedback is useful. “When you’re doing this SWOT analysis, strengths and weaknesses are internal to you and your business; opportunities and threats are things outside of your business,” Jessica Olevsky, CRS, broker, REALTOR® and owner of JPAR® Stellar Living in Gaithersburg, Maryland, explains. “The really cool thing with a SWOT analysis is getting feedback from other people around you and who work with you because it’s really hard to know what your strengths and weaknesses are yourself. They have to be really honest when you do this, and allowing them to add their input is key.”

“It has helped me become more intentional. I know the exact actions I need to take daily that are productive. So many people think business is production, but it’s not. We want to focus on productive activities, not just being busy.”

“It gives the perception to my clients that I’m an expert in my field because I can say, ‘Oh, well, my average sales price when I go on a listing or my average sale size last year was $569,000.’ I don’t think many agents can do that.”

SWOT ANALYSIS S

W O

STRENGTH

Helpful to achieving your objectives

WEAKNESS

Harmful to achieving your objectives

OPPORTUNITY

Helpful to achieving your objectives

THREAT

Harmful to achieving your objectives

The process

How Has Business Planning Made You a Better Agent/ Broker?

Waylon Chavez, CRS, REALTOR® and owner of ABQ Premiere Properties in Albuquerque, New Mexico

“I’ve been able to achieve what I want to. And the goals that I don’t hit, I get a much clearer picture as to why.” Nick Solis, CRS, managing broker at Berkshire Hathaway HomeServices Drysdale Properties in Livermore, California

Pam Gebhardt, CRS, associate broker at RE/MAX in Atlanta, Georgia

“You have better clarity on what your process is, and you’re able to tell other people about your business more clearly and concisely.” Jessica Olevsky, CRS, broker, REALTOR® and owner of JPAR® Stellar Living in Gaithersburg, Maryland

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Nov/Dec 2021

HOW TO GET STARTED

Write an executive summary and business description.

Due to the specific details you may want to include in the executive summary, like target clientele or a marketing plan overview, you may want to complete this step last.

Perform SWOT analysis.

Identify your business’ strengths, weaknesses, opportunities and threats. This can be a straightforward list of items

under each characteristic.

List your goals.

Be sure that the goals you set are SMART— specific, measurable, attainable, realistic and time-based.

Turn goals into actionable steps.

It will be easier for you to make progress toward your goals with step-by-step breakdowns.

Conduct market research, and strategize.

Now, you will pinpoint your target market and devise how you will serve this population.

Start financial planning.

Determine your expenses,

Reflection and revision are necessary

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and estimate your income. Then you will calculate how many transactions you will need to complete for the year to reach your estimated income.

Expect for your business plan to evolve as time goes on. It will be most useful for you to periodically refer back to your business plan, reevaluate and adjust your goals and actions as needed. “A business plan cannot be static,” says Pam Gebhardt, CRS, associate broker at RE/MAX in Atlanta, Georgia. “It has to be ever-changing because the market, situations and employees change. You need to be ever-changing.” Set aside time in your calendar to take a look at the progress you’ve made, what more you need to do and if you’re on the right track to accomplish the goals you’ve set within the given time frame. “I revisit my goals and adjust my time frame every three to four months,” explains Chavez. “I see where I’m at, I see where I need to make adjustments and then readjust my goals if necessary. If I’ve accomplished some of the goals, I’ll make The Residential Real Estate Council crs.com

Is your objective specific? � S tate what you will do � U se action words

Can you measure progress? � Provide a way to evaluate � Use metrics or data

Is the goal realistic?

How relevant is your goal?

What is your timetable?

� Within your scope � P ossible to accomplish

� Makes sense within your job function � I mproves the business

� S tate when you'll get it done � B e specific on a date

new goals. Or if I’m having trouble with one of the goals, I’ll see what’s wrong, what I need to learn or evaluate if it’s still important to me.”

Be better prepared for the unexpected

Having a good business plan that allows for some flexibility will allow you to have a sense of security during times of uncertainty. “Nobody saw COVID-19 coming, but people did see changes in the economy coming,” Olevsky says. “Even right now, we’re seeing this change with COVID-19 and the Delta variant. There’re still changes that are happening in our market, and we’re starting to see a shift from a seller’s market to a buyer’s market. Being able to see that in advance helps you recognize this opportunity. And then you pivot.” TRS

Enjoy this article? For more business planning tips and execution strategies, type in "Business Planning" at CRS. com/catalogsearch, and check out the numerous recordings available.

Nov/Dec 2021

NOTseeing 63

of buyers made a sight-unseen offer in 2020, almost double the number who did so in 2019. Source: Redfin

is believing

By Andrew Conner

Even before the coronavirus pandemic, more and more homebuyers were buying homes sight unseen.

According to Redfin, 63% of buyers made a sight-unseen offer in 2020, almost double the number who did so in 2019. This explosion in sight-unseen offers is due to several factors: better, more comprehensive virtual touring options, an increasingly competitive housing market and more properties being bought as investments, to name a few. Not surprisingly, the trend continued in 2021, as pandemic restrictions limited the ability to see properties in person. When buying a home sight unseen, there is a clear risk: What if the buyer doesn’t like something about the house that isn’t conveyed by the virtual tour or online photos? That’s where the agent comes in. For many agents, successfully representing your client in a sight-unseen transaction means performing the same high level of service and due diligence you normally would, but also paying close attention to potential pitfalls.

trsmag.com

iStock.com/shutter_m/MonthiraYodtiwong)

Nov/Dec 2021

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Nov/Dec 2021

painting a full picture

“

When I’m working with a sight-unseen client, what I try to do is put myself in their shoes.”

The advent of 360-degree virtual tours and copious online photos for listings has made buying a home easier for sight-unseen buyers. However, there are always aspects of a property that can’t be captured through photos or video. One important role of the agent in a sight-unseen transaction is to communicate these things to the client. “When I’m working with a sight-unseen client, what I try to do is put myself in their shoes,” says Liesl Butler Burke, REALTOR® at 1st for Orlando Realty in Orlando, Florida. “I think about if I was buying the property, what would I be looking at?” Burke explains that she often utilizes WhatsApp to share video from the house when she is

touring it, and during the tour she will share her thoughts. “When I’m doing a video, I’m always more careful to ensure nothing is missed, compared to when I have the buyer beside me. When the opportunity arises during the showing— if a view is not what the buyer is looking for or an appliance is in bad shape—I will say right then that is something they have to bear in mind.” Job Hammond, CRS, broker associate at Dash Realty in Austin, Texas, takes a similar approach for sight-unseen clients, making a comprehensive video for each property he visits: “As I’m driving through the neighborhood, maybe a minute before I arrive at the house, I’ll take neighborhood video shots to allow clients to see what I see for the last minute of the drive,” says Hammond. “For clients with directional preferences, I’ll take out my compass app on my phone and screenshot that. And then starting from the outside, I pan from the outside and go room to room, panning through each room and discussing features that I think they might want to hear and see—whether it is positive or negative. It’s not a sales pitch; it’s informational. If I think or see or smell or hear something, I will say it on the video.”

building trust Virtual tours are more of a necessity than ever for sight-unseen buyers. The Power of Virtual Tours presents how to do them successfully. Visit CRS.com/catalogsearch for more.

Beyond providing your clients with important information for them to base their decision on, using video and giving your honest opinion on a home’s health helps build trust. Showing your expertise and the value you provide to the transaction is key in establishing good rapport with a client who will never view the home they are buying. “One of the most common questions you get is: How’s the market?” says

Hammond. “90% of agents will have a two-word response, ‘It’s great.’ But that doesn’t build trust or rapport. In my market in Austin, I will describe the expected population growth, employment trends— explaining which companies are bringing more jobs to the area—and other aspects of the local market. I also go over my experience in multiple offer situations and set expectations. I tell clients this is a partnership, and we’re going to have to work together because buying a house right now is difficult.” The Residential Specialist trsmag.com

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—Liesl Butler Burke

Nov/Dec 2021 Bruce Ailion, CRS, REALTOR® and attorney at RE/MAX Town & Country in Alpharetta, Georgia, echoes Hammond’s comments and adds that being upfront with sight-unseen clients and setting expectations is key to not only having a good relationship with your client, but also successfully completing a transaction. “Today, you’re not trying to get a good deal, you’re just trying to buy,” says Ailion, whose sight-unseen clients are usually investment buyers who won’t be living in the homes they purchase. “You have to explain to clients that, in this market, you might have to sacrifice a precontract inspection or contingencies, for example. The buyer has to understand and expect that not only will they likely pay a premium price, but they also may need to pay more after the transaction to get the house into the state they want it.”

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considering contingencies Ailion brings up an important aspect of buying homes sight unseen: contingencies and ways to get out of the transaction if the buyer has remorse at a late stage. For many agents, it is fortunately a rare situation; however, it is important to protect your clients in the event that they step foot in the home for the first time and something isn’t right. “In our market in Georgia, the seller does the disclosure, and we’re a ‘buyer beware’ state, so the buyer has a duty and obligation to do an inspection,” says Ailion. However, in an extremely competitive market, you may have to waive the inspection to even have your offer considered. So, what can you do? “You need to make sure your client is comfortable with the fact that they may The Residential Real Estate Council crs.com

need to forfeit their earnest money if they get an inspection after the house is under contract and they want to pull out,” says Ailion. “You can always breach the contract. Most contracts will say the same thing: that in the event of a breach, you can’t sue for specific performance. In other words, the seller can’t force you to buy. So, all the seller can do is get your earnest money if you’re using a typical contract.” While this may be an issue for homebuyers purchasing a home to live in—forfeiting earnest money multiple times can get expensive quickly—for Ailion’s investment buyers, it’s less of a concern. The market is so hot right now that it is seen as part of the cost of doing business. Whether it’s through virtual tours or careful communication with your client, there are many actions you can take to help make a sight-unseen transaction successful for yourself and your clients. It might take a little more attention or care on your part, but the result— a satisfied client—is worth the effort. TRS

“

I tell clients this is a partnership, and we’re going to have to work together because buying a house right now is difficult.” —Job Hammond, CRS

Nov/Dec 2021

S I N ES

By Michelle Huffman

S ANNI NG

Whenever clients ask Joe Knab, CRS, when the market is going to slow down, he tells them:

“A pandemic didn’t slow the market down, so I’m not quite sure what will.” The RE/MAX Preferred Group and Cincinnati-based agent’s prediction— shared by agents, economists and researchers alike—is that the 2022 market will look fairly similar to today’s market. The 2020/2021 market has been defined by “a lack of homes for sale relative to demand,” says Gay Cororaton, National Association of REALTORS® senior economist, director of Housing and Commercial Research. “This

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202

NEW YEAR ON

Nov/Dec 2021

THE HORIZON

large demand-supply imbalance has resulted in strong price appreciation, waning affordability, tough competition among buyers and rising all-cash purchases.” And all this is likely to remain much the same in 2022, “although at a less torrid pace,” Cororaton says. “I expect that 2022 will still remain a seller’s market just because the inventory is still so low while mortgage rates are not likely to rise swiftly,” she adds. “The housing market will get less crazy as home prices cool a bit due to some softening in demand as mortgage rates start to increase and with some uptick in new home construction as prices of raw materials and supply-chain issues ease somewhat.” Let’s take a look at the factors that defined this past year, which will likely define 2022’s national housing market outlook.

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“

I expect that 2022 will still remain a seller’s market.” —Gay Cororaton, NAR

Nov/Dec 2021

PRICES WILL RISE AT A SLIGHTLY S L O W E R Most researchers agree that home prices will head upward in 2022, but not at the pace we’ve seen over the past two years. “Home prices are likely to appreciate at a slower pace of at least 10%, but 15% year-over-year growth is not out of sight,” Cororaton says. This past year, prices grew

RATE

a whopping 24% at mid-year, the secondhighest level recorded since January 1999, according to NAR. The causes of 2022’s slightly deflated demand: a slight increase in both new housing starts and interest rates, as well as buyer fatigue.

INTEREST RATES WILL RISE, BUT NOT ENOUGH TO DAMPEN DEMAND

TOUGH COMPETITION FOR BUYERS WILL CONTINUE

Cororaton expects the 30-year fixed-rate mortgage to rise to 3.5% as the Federal Reserve “adjusts the Fed funds rate upward to cool off inflationary pressures.” But Tim Freund, CRS, of Dilbeck Estates/Christie’s in Thousand Oaks, California, isn’t sure those rates will really put a dent in buyer demand. Small upticks in interest rates are likely to only push demand higher as buyers realize the “days of hyper-low interest rates are over,” he says. “I do not anticipate a slowdown of consequence until rates reach 4.5% to 5%,” Freund predicts. Knab feels similarly that it would take at least a rate hike of 5% or more to show any effect in the marketplace. There are simply too many confluent factors stoking demand, they say. “There are so many millennials starting household formation and buying their first home,” Freund says. Millennials are the largest adult generation at 72.1 million. Meanwhile, seniors are keeping their homes off the market by aging in place, and potential sellers are avoiding selling their homes because they fear the buyer’s struggle.

There’s not a lot of good news out there for buyers: Competition will continue to be tough for homes that are simply getting more expensive. In mid-2021, the average sales-to-list price ratio was slightly above 100%, and, on average, there were five offers on a home sold, up from three offers in 2020, Cororaton says. And in 2022, those offers will be tough to compete against, with all-cash offers continuing to make up a big chunk—about a quarter—of sales. One stark example: “Current homebuyers have built a lot of home equity in the past decade,” Cororaton says. “Just in the past five years alone, a person who bought a home in San Francisco would have home equity of over $500,000. Movers from these markets can use the home equity gains to make an all-cash offer in less expensive metro areas.”

The Residential Specialist trsmag.com

iStock.com/dar woto

Nov/Dec 2021

HOUSING STARTS WILL GROW, BUT NOT AS MUCH AS THEY NEED TO New home construction has been growing— a much needed relief for many markets. The 1.6 million housing starts in mid-2021 was 15% over the 1.38 million at the same time in 2020. Housing starts will continue to tick upward in 2022, from 1.6 million to 1.7 million, Cororaton says. But, unfortunately, it’s still not enough. “The underbuilding in the last 20 years is so huge, at 5.5 million to 6.8 million,” Cororaton says.

To address that underbuilding, 500,000 new homes have to be built in the next 10 years, on top of the 1.6 million current annual pace. But there are key constraints, namely labor and lumber. In labor, there are 330,000 fewer people employed in specialty trade construction compared to 2005. Lumber prices are starting to come down, although prices remain elevated (+125% year-over-year).

A MASSIVE CORRECTION, LIKE A HOUSING CRASH, IS

E X T REMELY U N L I KELY

Although all these factors together seem “It’s fair to say investor interest, including to point to a superheated market like we Wall Street hedge funds, will dull any sigsaw in the mid-2000s, there is no bubble nificant risk of steep market correction.” about to burst. The reality that many agents are shar“To the question of forbearance and foreing with their clients: The bad loans being closure, aside from the fact that a majority made back in the early 2000s are no longer of those distressed property owners have being made. The crash that followed won’t significant enough equity to sell for a profit, happen now—even if some first-time buyjust ask any REALTOR® how many of their ers would welcome it. investor clients are champing at the bit for All this points to a market similar to the the first sign of market decline,” Freund says. one we’ve seen over the past two years. TRS

Making Offers More Attractive With multiple offers on almost every house, Joe Knab, CRS, agent with RE/ MAX Preferred Group in Cincinnati, has included an addendum in his offer that says his clients will waive any single repair or replacement cost less than $1,000 that shows up on inspection. That eliminates the nitpicking that can accompany a home inspection, without waiving an inspection entirely. He says he’s achieved good results with this tactic.

THE DATA AT A GLANCE 2021

2022

Below 3 %

Around 3.5 %

20 %+

10 % –15 %

Annual home starts

1.6 million

1.7 million

Share of cash sales

20 –25

Interest rates Home price appreciation

Source: NAR

The Residential Real Estate Council crs.com

Enjoy this article? If you are interested in preparations for 2022 regarding taxes, check out Tax Talk 2022, available at CRS. com/webinars.

Market Values

Nov/Dec 2021

Insights from industry data

All-Cash Sales Are

AMID INTENSE BUYER COMPETITION Source: REALTORS® Confidence Index Survey of the National Association of REALTORS®

All-cash sales rose to

of existinghome sales in April 2021.

All-cash Existing-home Sales 25%

23%

20%

21%

25%

19% 15%

15%

10%

All-cash purchases among homebuyers intending to use properties as investment rentals.

Jan. 2019

Apr. 2019

Jan. 2020

Apr. 2020

Jan. 2021

Apr. 2021

More Non-first-time Buyers Are Making an All-cash Purchase 35% 30% 25

26%

20%

24%

26%

33%

■ % of non-first-time buyers who paid all-cash ■ % of first-time buyers who paid all-cash

15% 10%

30%

32%

Mar. 2021

Apr. 2021

0 Nov. 2020

Dec. 2020

Jan. 2021

Feb. 2021

The Residential Specialist trsmag.com

iStock.com/huafires/jamielawton

52%

Nov/Dec 2021

Rising 15%

14%

13% 12%

11%

12%

11%

14%

15%

11%

A Higher Number of Primary Residence Buyers Are Paying All Cash

8% 6%

Jul. 2020

Aug. 2020

Sept. 2020

Oct. 2020

Nov. 2020

Dec. 2020

Jan. 2021

Feb. 2021

Mar. 2021

Apr. 2021

A Higher Fraction of Vacation Home Buyers Are Paying All Cash 70% 60% 50%

iStock.com/AlexSava/Tiyas/Kuzmik_A

Not only are vacation sales rising, but the share of all-cash sales among vacation homes is also rising.

40%

64%

61%

46%

of all buyers obtaining a mortgage made a down payment of 20% or less in April 2021.

30% 20% For more information, access the REALTORS® Confidence Index Survey at NAR.realtor.

10% 0 Dec. 2020

Jan. 2021

Feb. 2021

The Residential Real Estate Council crs.com

Mar. 2021

Apr. 2021

SPECIALIZED

Council Classroom

Nov/Dec 2021

KNOWLEDGE

Strategies from the industry’s top educators

Re-energize Your Brand Across Platforms By Kim Cameron, CRS

Cameron’s course, Digital Marketing: Build Your Client Relationships by Branding Your Business Across All Platforms, is available through RRC. Learn more about the class at CRS. com/catalogsearch.

bout four or five years ago, I was attending an RRC summit with about 75 amazing agents, and I remember thinking, “I’m kind of bored with my business.” Not because I was so wildly successful, but because I was tired of my brand. I would get a listing, use the authentic when you are presenting that same templates and so on. People feel it brand to the world. Sometimes somebody when you’re enthusiastic and inspired about will show you something and you think, what you’re doing—and when you’re bored, “Well, I’ll just do what they’re doing.” Again, they feel that, too. I needed a boost from that might come across as odd when a other great REALTORS® to inspire me and potential client meets you and you don’t prompt me to make some positive changes. sound like your marketing materials. Since that time, I’ve rebranded my own This class is also going to introduce business and taught courses at the Council students to a few tools that make it easier that help agents do the same. This new for them to create their brand presence. course on digital marketing is an offshoot For instance, the online platform Canva is of that. Designed for newer agents as well useful for creating a whole range of comas those who’d like to reenergize their munications, from social media posts to social media presence, the three major brochures and postcards. Once posts are areas of focus for the course include: created, Hootsuite can deploy them based f Learning the difference between your on a preset schedule as far out as six months, personal brand and your business brand, so posts will automatically go out for holidays or other key dates. These tools are and the appropriate use of each. There’s great for agents or their assistants who are definitely a difference, and in digital managing a team’s marketing campaign. marketing they can easily get blurred. Part of the class will be devoted to a f Finding your voice and translating it workshop. I’m a huge fan of implemeninto your business brand—be you. tation, so during the last hour, students f Learning the tools and techniques that will be able to work with all the templates make it easier to create your brand and needed for day-to-day business, such as manage your digital marketing. business cards, letterhead, brochures, a Knowing the difference between a personal and business brand is important for pre-listing kit or a buyer’s kit, and make any business. In real estate, it can be easy them their own. They can take those temto lose the distinction, especially since we plates, add their own logos and company strive to build relationships with our clients. information and create items in a digital In the course, I’ll point out some dos and format with an option to print on demand. don’ts and talk about how to be consistent Students will leave class with a plan to work with each of your brands. For example, if on their business—not in their business— someone finds you on LinkedIn, looking and devote the time and resources to improve very professional, then goes to Facebook, things. Take the time to imagine what your and sees Little League and family reunions, career will look like if you take one hour there’s a disconnect there you’ll want to fix. a week to put out social media marketing That being said, you will want to find that is branded, systematic, intentional your professional voice, so you can be and purposeful. The sky’s the limit! TRS The Residential Specialist trsmag.com

iStock.com/Designer

Kim Cameron, CRS, is an undiagnosed real estate addict, who has been living and breathing real estate from her core since 1997. She hails from St. Louis, Missouri, and offers a background in building, rehabbing, property management and mortgage lending. Cameron built her successful real estate team in 2005 with her business partner/husband and fellow CRS, Sid. Cameron is also a high-energy speaker, trainer, top producing REALTOR® and RPAC Major Investor. She is committed to advocacy to protect property rights and home ownership.

BUSINESSES HAVE INCURRED $223 BILLION IN COSTS DUE TO TURNOVER IN THE LAST 5 YEARS.

HOW MUCH ARE YOU WILLING TO SPEND?

With RRC Broker Solutions, you get: Customized education to ensure your new agent has a PLAN for success. Dedicated HR experts focused on the needs of your business. Real Resources to help you meet your everyday challenges.

Don’t wait, contact RRC Broker Solutions today and redeem $50 off your first hour of HR Consulting with Code: HR50 Ready to put us to work for you, visit our website at www.crs.com/broker-solutions Broker Solutions is a Service for Independent Broker Owners powered by the Residential Real Estate Council

SPECIALIZED

Innovations

Nov/Dec 2021

KNOWLEDGE

Tech solutions for real estate

Wise Business Plans

liveplan.com

business plan can help give your company direction, keep your finances healthy and promote accountability. Luckily, you don’t have to start from scratch or go it alone. Business plan software and services can help you craft your business plan by providing templates, guidance and organization. There are quite a few choices available, so we’ve narrowed down the best options from Business.org for real estate agents, specifically.

wisebusinessplans.com

LivePlan

bit.ly/BizPlanBuilder Software

There is a lot to like about LivePlan. It has almost all of the features you could want from a business plan software. You are given step-by-step instructions for writing your plan and creating financial reports. It also allows you to compare your business’ financials to your plan’s goals. And if you ever need inspiration to get the ball rolling, it includes hundreds of sample business plans that can guide your strategy.

BizPlanBuilder

If ease of use is important to you, BizPlanBuilder is a good software to consider. BizPlanBuilder has a clear, intuitive interface and you’ll be able to see your plan’s overall structure at a glance, making it efficient to navigate to different areas of the software. You’ll have the option for pre-written text, where you simply fill in relevant details to your business. It also offers explanations for what information you need to include in each section of your plan. The program even provides helpful tips from experts, so you’ll have all the information you need to plan like a pro. The right business plan software can make your life much easier and help your business soar to new heights. Each tool has a breadth of features to help you accomplish your goals, so you really can’t go wrong when deciding which to use. Every real estate agent and brokerage has different needs, so shop around until you find the software that’s best for you and your business. TRS The Residential Specialist trsmag.com

iStock.com/andresr

Plan Like a Pro

Sometimes it works best to outsource— some things are just worth paying for. Wise Business Plans doesn’t offer software, but instead it offers custom business plan writing services—meaning, someone does all the hard work for you. You have to request a custom quote for your plan, but the end result is a professionally written business plan. The writer will ask for information about your business, do research and write your plan. The result will be a polished, entirely original business plan. And best of all, you won’t have to spend valuable time working on it yourself, and you can spend more time assisting your clients in a competitive market.

This article was provided by Quicken Loans and Rocket ProSM Agent

Insights

Nov/Dec 2021

Tips to Meet Home Sales Goals During Winter

elling a home in winter means dealing with shorter days, dreary skies, snow and freezing temperatures. But there are also many factors working in your favor. It’s all about knowing how to recognize these benefits and use them to your advantage.

Pros and cons of selling in winter

As a real estate professional, you know there are pros and cons to selling a home in any given season. Here are a few that are specific to winter: PROS f You have motivated buyers trying to get in a home before the year ends. f Work and school schedules may be more flexible around the winter holidays. f Buyers may see financial boosts from holiday and year-end bonuses or tax refunds. CONS f Gray skies, bare trees, dead plants and less-than-lush lawns make for poor curb appeal. f Between November and February alone, there are six holidays that banks close for, slowing things down.

iStock.com/OlgaPonomarenko

How to sell a home this winter

Feeling frozen at the thought of selling this season? A few real estate professionals agreed to share their tips for selling a home in the winter. Update Your Listing and Marketing. Consider updating the exterior to match the season, as outdated pictures can lead people to believe the house has been on the market for a long time. Consider the Cold. Winter weather can expose such imperfections as furnace problems, poor insulation and drafts. Before a showing, make sure the HVAC system is working properly. Check for any drafts, and, if the home is vacant, make sure it’s winterized to avoid plumbing issues. The Residential Real Estate Council crs.com

Don’t Forget to Add Extra Light. It gets darker earlier during winter, so use brighter light bulbs in the home or bring in more lighting. During day showings, open the curtains and blinds to let more natural light in. Add exterior lights so the outside of the home is still visible and its great features are put in the spotlight. Take Seasonal Safety Precautions. Always have outdoor walkways shoveled and salted to be welcoming and safe. Play Up the Season. Build a snowman to greet your visitors or hang a winter wreath on the door. Inside, serve hot cider or host a hot chocolate bar to make your showing more memorable. Make sure to add soft, warm touches throughout the home with cozy throw blankets and pillows, and place area rugs on hard surfaces. Increase the Comfort. Chances are people will have coats, hats and gloves. Provide a place where they can take off their winter gear and hang it to dry. Have a place to wipe snowy boots to avoid wet footprints through the home.

Use the winter season wisely

If business is slow, focus on your marketing and other administrative tasks you’ve been meaning to get done, so you’re more prepared when the busy season starts. TRS

Consider updating the exterior to match the season.

Rocket ProSM Insight is an innovative tool that gives financial professionals control in each client's home loan process. To get connected, visit RocketPro.com/ RealEstate.

SPECIALIZED

Wide Angle

Nov/Dec 2021

KNOWLEDGE

Legal and financial focus

Avoiding Structural Catastrophe: How Surfside, Florida, in Miami Beach on June 26, 2021: The site of the collapsed Champlain Towers Surfside.

By Scott Ford, President of California Builder Services

isaster struck in the middle of the night on June 24, as Champlain Towers South, a 12-story beachfront condominium in Surfside, Florida, a suburb of Miami, came crumbling to the ground. While a building autopsy will be conducted to identify the cause of the catastrophe and the events leading up to the incident that has tragically left nearly 100 residents dead, the incident has left many condominium associations across the U.S. concerned about the susceptibility of their own buildings succumbing to a similar fate. Additionally, homeowners and renters may be asking how they can ensure the structures they live in can avoid such disasters in the future. As a REALTOR®, you may be fielding questions from clients looking to purchase condos. Do we know the structure is safe?

While nothing can guarantee the prevention of building collapses, consistent upkeep and proper checks and balances can give homeowner’s associations (HOAs) the best odds of keeping homeowners or tenants as safe as possible. As the president of California Builder Services, I work closely with the state of California, property owners and condominium associations on analyzing structures around our state and making sure HOAs understand the condition of their structure and shared spaces. Here are ways HOAs can better protect themselves moving forward. Knowing these—and asking questions about the HOAs and reserve funds—will help you prepare your clients to make the best, safest decision when purchasing their next condo.

Stick to a strong building maintenance plan

There are four critical steps in maintaining a condominium building: 1. Update the reserve study regularly. In short, a reserve study involves long-term capital budget planning to analyze the health of an existing reserve fund and create

a plan moving forward to offset deteriorations or maintenance projects needed, among other atypical expenses. Updating the reserve study allows an HOA’s board of directors to track where and when

funds should be allocated, and make sure they have sufficient funds in place (or a plan to raise more funds). 2. Ensure the reserves are funded. Ideally, HOAs are properly funded

The Residential Specialist trsmag.com

iStock.com/felixmizioznikov/appleuzr

Scott Ford As president of California Builder Services (CBS), Scott Ford oversees operations and growth. He navigates business efficiencies and growth models for the firm as it expands. Ford manages all aspects of the business, including reserve studies, budgets and DRE reporting, and works hard to establish the firm as a leader technologically, maintaining focus on the accuracy of CBS’ reports. He also oversees client reserve studies used by HOAs and land developers. Ford is keenly sensitive to compliance with legal requirements and oversees a team handling full caseloads that range from small parcel maps to large master-planned communities throughout California. Ford created CBS’ “Phasing Predictor” software, which analyzes a development size and HOA assessment cost and calculates the optimum number of marketing phases so developers save the most money during their sales cycle.

Nov/Dec 2021

to Prevent the Next Surfside year-over-year and have a plan to keep enough in reserve funds for those unexpected or one-off repairs (fixing a roof or unexpected structural issues found during a reserve study). If there isn’t enough in the reserve funds, HOAs turn to a special assessment to raise the funds from homeowners to increase the reserve account. While this is not a popular decision, it is often

essential to ensure shared spaces are kept up to date and safe for residents. 3. Spend the reserve funds based on the recommendations in the reserve study. Following one and two, having the funds on-hand makes paying for the repairs and maintenance much easier. 4. Conduct periodic infrastructure inspections, looking for any

When one or more of these four pillars in the process are neglected or disregarded, issues begin to arise. In the case of Champlain Towers, an April 2021 assessment noted $15 million in repairs and maintenance needed immediate attention. The board approved the assessment, but sadly it was too late. The board did not move quickly enough to correct these deficiencies, even though HOA boards are tasked with maintaining buildings and raising dues to fulfill their obligation. While homeowners don’t want their monthly fees raised, there is a risk that compounds the issues when maintenance is continuously deferred, as we sadly witnessed in Surfside. As a REALTOR®, you need to know as much as you can about the health and funding of reserves. Ask if there have been any special assessments, what the reserve funding level is and about recent maintenance or planned projects. It’s too soon to know if rising sea levels played a role in the collapse at Surfside, but condos on the oceanfront should have healthy reserves, like any other condominium. Let’s look at what that means.

What went so wrong at Surfside

Upon review, the money in reserve funds at Champlain Towers South accounted for only 6.9% of the fully-funded amount, putting it in the weak range (0%–30% allocated The Residential Real Estate Council crs.com

potential structural concerns or general requirements, that the board must follow in accordance with the law. In the state of California, every HOA is required to conduct an on-site inspection and reserve study every three years. A handful of other states, primarily in the western U.S., have some reserve study regulations on the books. The state of Florida currently does not.

for this classification). For reference, that 6.9% amounted to about $700,000. A healthy HOA should have anywhere from 50%–70% funded in reserves, if not 100%. Champlain Towers should have had 8 to 10 times more in its reserves. There are three parts of a reserve study: the components where the funds can be allocated, the recommended funding plan based on what needs fixing or replacement and an evaluation of the current strength of the reserve fund. Because there was far too little in reserves and deferred maintenance, the board of directors at Surfside will likely all be held personally liable for not carrying out their fiduciary obligations.

Homeowners and renters may be asking how they can ensure the structures they live in can avoid such disasters in the future.

Moving forward

Making sure HOA boards objectively look at maintenance concerns and do what is best for the building is crucial. It can help avoid compounding problems that can lead to disaster. Residents and HOAs should note what the reserve study calls for, and they should make sure that there are sufficient funds available for repairs and other necessary projects. In theory, the collapse of Champlain Towers South was preventable and could have been avoided at many points along the way. However, neglect by the board of directors in the form of compounding deferrals led to the building’s ultimate collapse. TRS

For more on how to assist condo clients, check out the recording 5 Things to Know About Listing and Selling Condos, available at CRS.com/ catalogsearch.

DESIGNATION

NATION

Your Own Council

Nov/Dec 2021

News and updates

Sell-a-bration

2022

Though several months have gone by since Sell-a-bration® Re-connect in Lake Tahoe, members are still dreaming about the successful gathering and how great it was to reconnect with each other while learning new business strategies. Luckily, Phoenix is right around the corner. This year, the Council has several bundle options available for registration. Whether it’s Night Out under the stars with local food trucks or taking part in the preconference course on digital marketing, Sella-bration Envision promises to deliver an event unlike any other in real estate. Scan the QR code to learn more about next year’s event.

CRS Week Recap

RS Designation Awareness Week was a great success, with approximately 3,000 people registered to sample the Council’s premier education and increasing the value of the CRS Designation among REALTORS®. CRS Designees were treated to new marketing tools and created buzz on social media using #SayYestoCRS and taking pictures in their themed T-shirts. From officer coffee chats with RRC volunteer officers to major education discounts, there was a lot of pride going around. We can’t wait until next year’s CRS Awareness Week. The Residential Specialist trsmag.com

Nov/Dec 2021

Ready for

KNOWLEDGE NUGGETS The Council launched a different type of learning opportunity last month—Knowledge Nuggets! The Knowledge Nuggets virtual event combined storytelling, knowledge sharing and quick talking to deliver a new experience for attendees. Presenters shared their take on the selected theme, “Tools and Tips to Make 2022 the Best Year Ever,” under certain rules: 20 slides, with only 20 seconds per slide. Not only did attendees learn tips and tricks for planning for next year, but presenters also were able to improve their presentation skills. This new and exciting format had an excellent turnout, and the Council plans on hosting more events like it in 2022.

RC’s Broker Solutions continues to innovate and create value for every business. Our PLAN programs focus on developing stronger agents, brokers and teams. We have opportunities for brokerages to create customized education packages to help you spring your teams to success. Our HR Consulting Services offer the niche tools and expertise to support brokerages and help them to thrive in today’s economy. As we expand our offerings under Broker Solutions, we are excited to invite you to our Power Up Summit, an event to help you prepare for the year ahead. Join us on December 9, 2021, as we discuss managing, leading, creating and generating more success for not only your brokerage but for your agents as well. This summit is $50 for RRC members and $75 for nonmembers.

iStock.com/mushakesa

Statement of Ownership, Management and Circulation The Residential Specialist (USPS# 021-699, ISSN# 1539-7572) is published (bi-monthly) six times a year by the Residential Real Estate Council. Five issues were mailed in 2021. The annual subscription price is $29.95. The mailing address of both the publication and the publisher is Residential Real Estate Council, 430 N. Michigan Avenue, Suite 300, Chicago, IL 60611-4092. The publisher is the Residential Real Estate Council, and the Editor is Kimberly Cure. The owner of the publication is the Residential Real Estate Council. There were 22,989 copies of The Residential Specialist published in September/October 2021; the average for the preceding 12 months was 23,979. The paid/requested outside-county mail subscriptions for the September/October issue were 22,772 [domestic + Canada]; the average for the preceding 12 months was 23,754. 10 free copies were distributed by mail in September/October and the average number of free copies distributed during the preceding 12 months was 10. 20 copies of the September/October issue were distributed outside the mail (to classes, membership kits, etc.), and the average number of free copies distributed outside the mail for the preceding 12 months was 84. Fifteen copies of the magazine were not distributed in September/October (office use, leftovers), and an average of 29 copies were not distributed from issues in the preceding 12 months. The percent paid/requested circulation in September/October 2021 was 99.0%, and for the preceding 12 months it was 99.1%.

The Residential Real Estate Council crs.com

You can learn more about Broker Solutions and register for the summit online at CRS.com/ broker-solutions, or by scanning the QR code.

DESIGNATION

NATION

Nov/Dec 2021

Ask a CRS

Who handles the costs for staging a home—the agent or the seller?

Cheri Paulsen, CRS, Coldwell Banker Residential, Cheshire, Connecticut

For a vacant house, I will pay for virtual staging with Box Brownie. But for real staging, the seller is responsible. George Belleville, CRS, Keller Williams Select Realty, Ellicott City, Maryland

We, as agents, pay for marketing. Sellers pay for preparation.

For me, it depends on the price of the listing. If it’s a high-dollar listing, it may be worth it— especially if it will help you win the listing. I would call staging companies to get estimates. So many companies are willing to negotiate their pricing since homes right now are selling quickly without being staged. Patty Gaskin, CRS, Century 21 Real Estate Champions, Seminole, Florida

I pay for it when necessary. Typically, we do “light staging” as opposed to a full stage. The stager creates staging vignettes in key rooms.

I usually pay the consultation fee and ask my seller to pay the staging fee. Occasionally, I will offer to split the staging fee with the seller, and very rarely (when it’s a close friend), I will pay the full staging fee. In our area, the full fee is usually around $600, depending on how much they need staged. For a completely vacant home, it would obviously be a lot more.

AnnMarie Dyer Janni, CRS, Element Realty Group @ Allen Tate Company, Apex, North Carolina

Mary Katherine King, CRS, Long & Foster – Old Ivy, Charlottesville, Virginia

Ira Serkes, CRS, Compass, Berkeley, California

iStock.com/narith_2527/Suwatwongkham/AV-photo

I pay for the initial consultation fee, but the sellers are responsible for the staging cost. Even in this seller’s market, staging can add to the seller’s bottom line—buyers are very visual and it helps to show them how a home could look and feel. Offers can still come fast, but staging can bring more and higher offers.

Advice from your peers

Have a great story to share? Email social@crs.com or look for discussions happening online on our Facebook, Instagram, LinkedIn and Twitter pages.

The Residential Specialist trsmag.com

Nov/Dec 2021

World-Class Education The Residential Real Estate Council offers life cycle, agent-to-agent learning, spanning the career of the residential real estate agent. The Council’s education is recognized as the best in the industry and includes live classroom courses, self-paced eLearning, live and on-demand webinars, videos and articles.

The Residential Real Estate Council crs.com

Check out all of the RRC learning opportunities at crs.com/learn.

DESIGNATION

Nov/Dec 2021

RRC Connect

NATION

Expand your network

CONNECTION PERFECTION

Making it Right

epeat referrals aren’t always a given—even for a CRS. I learned this lesson the hard way, but with a happy conclusion. I sent one of my favorite clients over to Shay Hata, CRS, as he was relocating to Chicago. Through his home search process, he had become a friend. When he decided to sell, things didn’t go as planned while he worked with a former team member of mine.

Shay Hata, CRS

TN Brian Copeland, CRS

Fast-forward a few years later, the client and his spouse were relocated back to Nashville. They approached Shay to sell their home and for a Nashville referral. Shay dug in to ask, “Why not use Brian?” For the first time, we all discovered there was a previous issue. Shay and I jumped into action to keep the clients served in the way they deserved. Shay explained to them clearly that I am now a solo agent and would handle everything perfectly, like I had done the first time around. Shay sold their home in a tough market, but more importantly, gave them a customer service experience that went above and beyond. I helped them find their perfect second chapter Nashville home just before the market prices exploded. Recently, I had them over to my home for dinner with my entire family. The first thing they said was, “Thank you for Shay Hata. You have really helped us through our moves, but Shay was the best recommendation you ever made.” It’s important that we may not always get it right, but we can always make it right with the help of our CRS referral partners. TRS Brian Copeland, CRS, Doorbell Real Estate, Nashville, Tennessee

SOUTH

MID-ATLANTIC

SOUTHEAST FLORIDA Weston, Pembroke Pines, Miramar, Hialeah, Miami Lakes, Hialeah Gardens, Miami Beach, Miami, Miami Springs, Doral 2021 Florida RRC President Major Investor Crystal R BA - Florida International University Fluent Spanish ~ Hablo Español

Vivian Macias, CRS, GRI, SRS Broker - REALTOR® 305-300-4425 vivian@principalproperties.com vivianmacias.realtor

33 years of Experience, Commitment, & Professionalism

The Residential Specialist trsmag.com

Nov/Dec 2021

MAUI Real Estate

www.JoanneFoxxe.com

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jofoxxe@Maui gmail.com Director-Certified Residential Specialists

Joanne Foxxe

Joanne Foxxe 808-385-2918 CRS, GRI, SRES, e-Pro, RSPS

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

CRS, GRI, SRES e-pro Maui CRS director

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Nancy D. Metcalf, CRS REALTOR®, Vice President

Luxury Property Specialist RB-16599

Hawaii CRS of of Year, 2003® Hawaii Association REALTORS REALTOR® of the Year 2018 Direct: (808) 223-9246 nmetcalf@cbpacific.com www.nancymetcalf.com Celebrating 27 years yearsassisting assistingclients! clients! Celebrating 25

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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. Keller Williams Maui Luxury Real Estate Kapalua  Lahaina, HI 96761

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• Reno native and trusted advisor for over three decades to thousands of buyers and sellers • RealTrends – ranked top 1% of REALTORS® in the U.S. • Top 1% in Nevada in production

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

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Dickson Realty 775-742-0669 dondeesgroup@dicksonrealty.com

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CALIFORNIA’S MONTEREY PENINSULA A trusted name for nearly 50 years!

www.TheHeinrichTeam.com 831.915.7415 Team@TheHeinrichTeam.com

Ben BRE License #: 00584641

Carole BRE License #: 01069022

Reach more than

30,000 CRS peers with your ad here.

Terry McGowan CRS, GRI, ABR, SRS, e-Pro, SRES Cal DRE# 01126129 Sotheby’s International Realty 831-236-7251 terry.mcgowan@sothebyshomes.com www.terrymcgowan.com

Ask about Lake Wildwood near Grass Valley!

925-200-8495 DRE# 01005829

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

The Residential Real Estate Council crs.com

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

DESIGNATION

Nov/Dec 2021

Balancing Act

Practical strategies for restoring balance

Eating Properly with a Packed Schedule

ave you ever come to the end of your workday and realized you haven’t had anything to eat all day? Or maybe you ate some unhealthy snacks, like a couple bags of chips, but that was it? With the hectic schedule many agents keep, remembering to eat proper meals throughout the day can easily slip your mind. However, a proper diet is important for maintaining good health and nutrition. Learning ways to manage your daily eating habits is essential and can be easy to do. Here are a few ways you can fit eating properly into your packed schedule.

Eat a simple breakfast every day

Learning ways to manage your daily eating habits is essential and can be easy to do.

The best way to start a hectic day is with a quick, balanced breakfast. This is important in order to boost your energy and to replenish the blood sugar you lost as you were sleeping. Try making smoothies or having yogurt and granola— breakfast doesn’t have to be anything too extravagant or time consuming.

Stay hydrated

Caffeine can be any busy person’s best friend, but it can be easy to forget you should be drinking water throughout the day. Staying hydrated is important for our overall health, including brain function. Keep a reusable water bottle on hand that you can refill two or three times a day.

Set time aside in your planner/calendar

Set time aside in your calendar to eat and make sure to add a reminder. Eating at the same time every day may make it easier to integrate meals into your daily routine.

Pre-portion your snacks

Before you reach for a snack in the afternoon, ask yourself: Are you actually hungry, or are you just bored or stressed? Snacking in moderation is OK, but it’s always best to pack your own snacks to ensure they are healthy and will energize you. Fruits, nuts, trail mix and hummus are always good options.

Fill up on protein

High-protein meals and snacks will fill you up and keep you full all day long. Some good foods that are packed with protein are chicken breast, fish, eggs, broccoli, lentils and Greek yogurt. There’s so much variation in the dishes that you can create that are loaded with protein.

Meal prep on the weekends

Using your weekends to prepare meals for the upcoming week will save you a lot of time and money. This is also a way for you to ensure you are eating nutritious meals with good portions.

The Residential Specialist trsmag.com

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