FLORIDA EDITION
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EMBRACING SMART HOMES: DOES NEW TECHNOLOGY REALLY INCREASE HOME VALUE?
DEVELOPING YOUR PRICING PHILOSOPHY
INCORPORATING CHARITABLE GIVING IN YOUR REAL ESTATE PRACTICE
MENTAL TRICKS THAT WILL TAKE YOUR BUSINESS TO THE NEXT LEVEL
COVER STORY
NICK WILLIAMSON
FLORIDA EDITION
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NICK WILLIAMSON
CONTENTS
NICK WILLIAMSON
4) EMBRACING SMART HOMES: DOES NEW TECHNOLOGY REALLY INCREASE HOME VALUE? 14) DEVELOPING YOUR PRICING PHILOSOPHY
18) 3 MENTAL TRICKS THAT WILL TAKE YOUR BUSINESS TO THE NEXT LEVEL 20) INCORPORATING CHARITABLE GIVING IN YOUR REAL ESTATE PRACTICE
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Embracing Smart Homes:
Does New Technology Really Increase Home Value? Technology and innovation move at a lightning-fast clip, so it can be hard to keep up with all the smart-home trends sweeping the market at a given time. From smart thermostats to security systems accessed through an app on your phone—there are endless options to customize and update your home for the modern era. But which, if any, of these smart home products add 4
value to property in a significant, worthwhile capacity? Especially with new generations of the same products released in quick succession, it can be hard to determine whether it’s worth it to take the plunge. With that in mind, we’ve conducted a deep-dive into the smart home options out there that make the most sense for your bottom line and real estate investments.
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Smart home amenities range in price and return. There are certain smart home products that won’t break the bank while still adding lovely touches and time-saving features to your space. For instance, a smart thermostat may not run more than a few hundred dollars, but it can take so much of the guesswork and analog nuisance out of programming your home’s internal environment. That said, buyers selling properties with mid-range amenities like this can’t expect a windfall in return. While smart home features can certainly lure buyers and give the sense that a home is attractively modern (and thus move-in ready), it doesn’t mean that you’ll be reaping a sizable monetary reward for your foresight. Conversely, this reality doesn’t mean those smart options
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are without value entirely; it just means that the value of smart home options may be apparent in a different capacity, like luring a particular buyer or creating a desirable, sleek image for a property headed to market. On the other hand, larger scale smart home amenities that are being left behind for the buyer—like a smart refrigerator or wired sound throughout the property—may be able to lure particular buyers who value high-end details. While it can be difficult to state definitively the value of smart home options, the rule tends to be that the more you put in, the higher the likelihood you’ll reap the investment you sow. Focus your smart home options on home appliances first, then work your way toward security, thermostat, and entertainment options.
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Smart home amenities capture the attention of buyers
Agents must know how to pitch the value of smart home options
Even if you have mostly opted for small or mid-range smart home options, you can still benefit from their presence in a property—even if they don’t inflate your bottom line as a result. Smart home amenities have the power to focus the attention of buyers, sending a clear signal that the previous owners were tech-forward and made an effort to upgrade the property for the contemporary era. Millennial or Gen Z buyers especially value these up-to-date modifications, and the presence of these desirable gadgets can create added interest and drive up value naturally. Likewise, featuring these options in listing photography can also drive interest from younger or high-end buyers looking for move-in ready spaces.
Remember that smart home features are relatively fresh to the market. While some new construction properties are equipped with these smart amenities, just as many homes on the market don’t offer these upgrades and modern flairs. This means that many buyers, of all ages even, aren’t familiar with the benefits and perks of these options, let alone how they’re operated. Before you can derive value from a smart home or smart home features, you’ll need to understand a product’s proper usage, cost, and benefits. Do your homework regarding what smart home features can offer in terms time or cost savings, and be able to show prospective buyers how easy these objects are to use, as well. Do both, and you’ll be in proper command of what smart home features can offer buyers and pitch them accordingly.
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NICK WILLIAMSON Top Agent Magazine
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N ICK WILL IAMSON “I tell people what a home has and doesn’t have, whether it’s to the seller or the buyer. I know what I’m selling. And I don’t try to oversell anyone or anything. It makes it fair for both sides.” After 10 years as a television producer for the Home Shopping Network, Nick Williamson was ready to build something on his own. He opted to get his real estate license and hoped he could transition to a full-time career. Nick spent six and a half 8
years with Keller Williams, became a top agent, and today owns his own brokerage: New Acre Realty, Inc. “I’m self-motivated and thought I would like it,” he says. “I’ve officially been an agent for just under ten years now, and it’s a better Top Agent Magazine
fit for my personality and lifestyle.” New Acre Realty, Inc. serves the greater Tampa Bay area and has agents in Sarasota and Orlando, with Nick personally working mainly in the Odessa region. They are also looking to move an office to Jacksonville, which is only one indication of their consistent growth and success. “Right now our referral percentage is sixty-five to seventy-five,” Nick says. With a motto of “Choose our commission, Pinpoint your destination,” it’s
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easy to see why clients return. “It’s the way we do business. We’re straight forward,” he explains. “I tell people what a home has and doesn’t have, whether it’s to the seller or the buyer. I know what I’m selling. And I don’t try to oversell anyone or anything. It makes it fair for both sides.” New Acre Realty, Inc. operates via a listing package system based on levels of service, which makes them the only brokerage that allows the seller to dictate the commission. Nick’s extensive knowledge of the industry is yet
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another reason he’s a top-tier agent. “I see the contracts and negotiations as a chessboard and am always thinking three or four moves ahead,” he says. “I analyze the people and the circumstances to know what might be best for the client.” Nick’s relationships with clients continue well beyond the closing. “I text or email if I have sellers in areas where I can check their home value and let them know if their equity is up,” he says. “And every year my business partner and I put on a Top Golf event for clients so they can
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enjoy an afternoon or evening on us.” For this reason, it’s easy to see why Nick’s volume is set to be an impressive 10-12 million this year alone. His approach to marketing is another. “After doing this for so long, you know the agents in each price point. I consistently reach out to agents who would be interested or may have potential buyers.” As for what he enjoys most about real estate, Nick loves helping. “It is nice when you help a family transition from one home to another or help them find
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their first home. There’s a great benefit to that,” he says. “Especially when you can tell them the truth and let them know if they are overpaying. I give statistical analysis on price points, even if I will lose money on my end. It’s better than the client losing a drastic amount.” Looking forward, Nick says they will continue to grow. “I enjoy this career and profession. We will franchise out. People like our business style for listings. There are no two homes the same and no two sellers the same. We allow the seller to pick what’s best for the family.” Top Agent Magazine
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For more information about Nick Williamson, email nickwilliamson@newacrerealty.com, or visit zillow.com/profile/NickWilliamsonAgent www.
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Developing Your Pricing Philosophy By Dirk Zeller
Ask a dozen agents to explain their home pricing philosophy, and you’ll
hear a dozen different approaches. And if the talk reveals frank responses, you’ll also learn that the most common pricing strategy is no strategy at all. Here’s my advice: Break out of the ranks by establishing and following a specific strategy for arriving at the ideal selling price for each home. Adopt the philosophy that, in real estate sales, price is king. Price trumps all other factors—including marketing approaches, home condition, market competitiveness, and sales approach. I believe that, in the end, marketing and condition of the property are controlled by the price. The alternative, advocated by many agents, most sellers, and even some sales trainers, is to emphasize marketing over pricing. Rather than working to set the ideal price, they believe success will come from optimizing the home’s condition and presentation and then marketing it with skill and savvy.
I take the opposite belief, based on years of experience working with sellers who wanted unrealistic prices for their homes and who experienced firsttime sales failures as a result. Over my sales career, I resurrected and re-listed more than 600 expired listings—nearly 75 a year. Among all those transactions, I never met an owner with an expired listing who thought that an unreasonable price had anything to do with the home’s failure to sell. They all blamed the previous Copyright Top Agent Magazine 14
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agent and that person’s approach to marketing. Each sought some magic marketing strategy to change the reality of the law of supply and demand. There is a magic strategy: Price the home correctly. Price is the only factor that can overcome sales obstacles, compensate for a home’s deficiencies, and motivate a purchaser even if the condition of the property and your marketing approach is less than perfect. Getting the listing at any cost Does this scenario sound familiar? An agent (usually a newer agent) is short on business or maybe even desperate for the chance to stake a sign in someone’s yard. The agent wants a listing at any price – even if the chance Top Agent Magazine
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to seal a deal erodes the likelihood of selling the property. To gain a seller’s nod of approval, the agent makes a flatteringly high pricing recommendation, throwing out a number the client wants to hear and then hoping something good will result from the bad situation. I can think of few examples, if any, where this philosophy works. Hope isn’t a successful pricing strategy. Worse, the please-the-client mindset is a hard one to abandon. Agents who achieve listings with unrealistic prices find it hard to later counsel their clients honestly.
If you take and price a good listing competitively, it will sell. You can’t keep a good price a secret! The pitfalls of a “please the buyer” approach are many and significant. By overpricing, you can practically count on a reduction in your productivity, profitability, and salability, and here’s why: It’s impossible to keep your productivity high when your time is spent in conversations with an unsuccessful seller who lacks motivation to take corrective action. The seller’s negativity, concerns, and phone calls will only increase with each week or month the house remains on the market. 16
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As time goes on, you’ll devote more and more time unsuccessfully trying to create a sale not only for your seller but also for yourself. This will pull you away from activities that are more likely to deliver income. The ensuing frustration will de-motivate you and stunt your ability to secure better appointments that create other income opportunities. An unsold, overpriced listing negatively impacts your profitability because it costs you time and money to service while it delivers no revenue to your business. And the situation only gets worse the longer the listing languishes on the market. You’ll end up deducting the expenses of this in-limbo listing from the proceeds generated by any revenue-producing deals you manage to close in the meantime, reducing your net profit and business success. Unsold homes that linger on the market seriously diminish your salability, which is the term that describes your sales success track. Your salability is based on such key statistics as your average ratio of listing price compared to sale price and the average number of days your listings are on the market. Obviously, these statistics, which prospects rely on when choosing one agent over another, can be crushed by a “get the listings at any cost” philosophy. They’re also harmed by the “start high and reduce later” tactic. If you take and price a good listing competitively, it will sell. You can’t keep a good price a secret! Dirk Zeller is an Agent, an Investor, and the President and CEO of Real Estate Champions. Copyright©, Dirk Zeller. All rights reserved.
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3 Mental Tricks That Will Take Your Business to the Next Level It’s no secret that running a successful business requires careful planning and a tireless work ethic. Beyond those obvious ideals, it also takes the right mindset in order to capitalize on professional opportunity. In the world of real estate and mortgage lending, mental fortitude is a major component to reaching the next 18
level and achieving longevity in a sector that requires so much self-discipline. With that in mind, we’ve compiled a few key mental tricks you can employ to reinvigorate your working philosophy. Incorporate these techniques into your daily mindfulness routine and your business will surely benefit.
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Visualization helps you work efficiently and keep your cool.
This may sound like one of the oldest tricks in the book, but there’s a reason why Olympic athletes and those serving in first-responder positions use visualization as a time-honored mental technique. Not only does visualizing your daily tasks help you organize your mind, but it amps up your ability to focus on what’s important. Visualization also helps reduce stress in the moment, since you’ve already created a mental expectation of the task ahead. Whether you’re preparing for a negotiation or a pitch to new a client—visualization primes your brain and affords you an extra sense of control as you tackle your day.
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Distill concepts into their simplest terms for ultimate understanding. As an agent or loan officer, you’re likely juggling numerous clients and commitments on any given day. That’s why it helps to distill your responsibilities in clear, definitive terms. Let’s say you have a meeting set with a client to outline a marketing approach for their property. You may understand the broad strokes, but beforehand, try verbalizing the exact takeaways you’d like to impart to your client. This may seem obvious, but one of the best ways to clarify your communication and ensure your com-
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plete understanding of a subject is to explain it aloud in its simplest terms. This crystallizes your main point and can come in handy if you drift off-topic or need to double-down on your message.
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Accept that mistakes will be made.
While it’s natural to fear failure, sometimes the dread of making an error can overwhelm your ability to perform. As the saying goes: don’t let the fear of striking out keep you from playing the game. If you accept in advance that set-backs will occur, challenges will come, and things won’t always go accordingly to plan—you’ll be less confounded when hurdles do arise. What matters is keeping an even keel as you sort through unexpected delays or mishaps. Accepting that mistakes will happen allows you to shift your focus towards a solution or contingency plan. In other words, don’t spend your energy trying to achieve perfection. Aim high and work hard, but be in touch with reality: upsets are bound to occur. Accept this and you’ll be ready when they do. The path to lasting success is ongoing, and there are bound to be challenges along the way. It takes mental fortitude to make it to the top, so keep these tricks in mind as you continue to grow as a person and a professional. Seeing situations in a new light can make all the difference as you adapt, evolve, and take your business to the next level.
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Incorporating Charitable Giving in Your Real Estate Practice
As real estate professionals, taking part in the community and serving others is central to a long-lasting practice. After all, agents are in the business of homeownership, building a financial future, and helping their clients begin new and fruitful chapters. With that in 20
mind, how might an agent deliver that spirit of service in a broader sphere? The truth is, charitable giving offers nothing but upsides. Contributing to a worthy cause is a noble and meaningful endeavor, but it
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Contributing to a worthy cause is a noble and meaningful endeavor, but it also presents positive byproducts for the giver: tax write-offs, name recognition in the community, and the ability to expand your network.
also presents positive byproducts for the giver: tax write-offs, name recognition in the community, and the ability to expand your network. If charitable giving is an idea you’ve toyed with, or a practice you’ve engaged in only now and again, here are a few ways to make it a foundational element of your business and a win-win for all.
Find causes that speak to you. Donating funds or resources can feel anonymous if you’re divorced from the organization you’re working with. While national and international charitable organizations are certainly effective and worthwhile, you might consider partnering with local chapters of those organizations, or identifying hyper-local organizations that address need in your state, county, town, or even your own neighborhood. The first step to establishing a charitable relationship is to find a cause that you genuinely care about. For many, animal rescue is a tangible cause where resources and volunteership are always welcome. For others, children’s health and advocacy is a calling. Regardless Top Agent Magazine
of your personal passion, participation can be big or small. From sponsoring a local youth sports league to partnering with an area animal shelter for their annual spay-athon event—there are all sorts of ways to make a difference.
Unite your team for the common good. One way to make charitable giving a staple is to do it in arm and arm with others. Supporting a local cause is a great way to bring your team together in a unifying capacity. Hosting coat drives in winter, blanket drives for local animal shelters, or backpack drives for needy students at the start of the new school year— all are straightforward and highly useful, direct ways to give to your community as a team. It’s also important to set collective goals as a way of keeping people motivated and accountable over time. Offices are productive, but often hectic spaces. Injecting a collective goal with a positive, tangible result can create an ambiance of goodwill and generosity—both of which are worthwhile attributes to cultivate as
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the leader of your team. Lastly, consider timely giving as a way of connecting your team to their community. Natural disasters, local fundraising drives, and improvement funds are all direct ways your team can contribute, while they themselves reap the benefit in the community.
Include clients in the process. You’ve likely heard of charitable donations made in the name of your client as an alternative to the classic closing gift, but there are a few ways you might update this method of giving. For starters, consider including your clients in the selection process. Do they have a special cause that’s close to their hearts? Likewise, you might
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consider making regular, consistent giving a part of your routine post-closing. Instead of following up with your yearly poinsettia plant or pumpkin, you might find a cause in their neighborhood or township that you can support in their name. It’s wise to choose something apolitical, but a cause that’s hyperlocal to their area demonstrates unique thoughtfulness. There are plenty of ways in which society as a whole can benefit from charitable causes that build goodwill in the world, support those less fortunate, and bolster a positive future. Incorporating charitable giving in your business model is a generous way to make this mentality a central tenet of your team and a defining characteristic for your clients to remember.
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