KANSAS EDITION
6 Habits 6 Habits of HIGHLY of HIGHLY PRODUCTIVE AGENTS
A POWERFUL MARKETING TOOL— Defer Taxes when Selling a Residence Drip those ONLINE LISTING LEADS
COVER STORY
ALLISON RANK
KANSAS EDITION
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ALLISON RANK
CONTENTS 4) 6 HABITS OF HIGHLY PRODUCTIVE AGENTS
13) A POWERFUL MARKETING TOOL—DEFER TAXES WHEN SELLING A RESIDENCE
20) DRIP THOSE ONLINE LISTING LEADS
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6 Habits of Highly Productive Agents In a business that can be constant chaos, you’re constantly on the go and dealing with things as they hit you. It can be difficult to take a second and regroup. But there is a better and smarter way to work. If you take the time to create some better habits, in the end, you may end up being more productive. If you want to make better use of your time, as well as have more focus, here’s some habits that you’re going to want to pick up - all common to top-producing agents.
1. Learn how to prioritize Although it might be your instinct to get some of the boring work out of the way first, things 4
that actually generate income (or are time-sensitive!) should be the first thing you focus on when you start your day. Lists are your friend! Make a list of things you want to accomplish for the day, the week, and even the month. Always list them in the order of priority. If things get cut off when you run out of time at the end of the day, at least it’ll be the things that are not as important or time sensitive. As with anyone, your time is your most valuable commodity and should be used wisely. When you make your list, you can even schedule tasks as if they were a meeting, giving yourself a little time goal to beat, as Top Agent Magazine
well. Treat your time with the same respect you would a colleague’s or client’s and don’t ever waste it. As with anyone, your time is your most valuable commodity and should be used wisely. When you make your list you can even schedule tasks as if they were a meeting, giving yourself a little time goal to beat, as well. Treat your time with the same respect you would a colleague’s or client’s, and don’t ever waste it.
to accomplish it? Write it out and then incorporate that into your prioritized ‘to do’ list. You’ll be amazed at how driven you become to reach that goal when you actually write it out with clarity. And, the sense of accomplishment you get upon completing it will carry over to the next day. It’s important to remember to be specific. Once you get into the habit of meeting your goals, exceeding them won’t be far behind.
2. Remove distractions
when you need to focus This is especially hard when you’re a Realtor®. Most are constantly connected to their phones. But, unnecessary distractions can get you off schedule and make you lose your focus instantly. If you can, turn your phone off for the half hour it takes to do a task. Interruptions make everything take twice as long, especially when you take that text and then decide to check Facebook for a second. We all do it! Complete your task, then take ten minutes to respond to all texts and messages before you start up the next thing on your list. You can even schedule those ‘text backs’ into your schedule. A concentrated effort is always more effective than going back and forth between things.
3. Set daily goals This is so key. What do you want to accomplish for the day and what do you need to do Top Agent Magazine
4. Don’t make excuses There’s that old saying, “The buck stops here”. Well, take it to heart. This is your business and you are responsible for doing everything you can to make it successful. Sure, there are reasons for why you didn’t get a listing or why your business is slow, but what are you doing to change things and make them better? Successful Realtors® work harder and come up with innova5
tive ways to stand out when times are tough. They don’t look for excuses, they look for solutions.
5. Be deliberate
about everything you do When you’re making your list, it helps to have a goal in mind for even the smallest task. If you’re calling past clients to touch base, have a specific reason why you’re calling. Are you letting them know some market news? Thanking them for a referral? When you’re meeting a referral partner for lunch, have a goal in mind for what the outcome of that meeting will be as well. Yes it’s good to socialize and build relationships, but if you have a reason, make sure it isn’t put off until the final moments, when things are wrapping up. Always having a purpose in mind will also help you prioritize your list better.
6. Always look for ways to
get out of your comfort zone Yes, you are prioritizing what is most important or urgent to your business, but it’s also important to make an effort to break out 6
of your routine as much as you’re comfortable doing. Trying out new things or taking some time to learn about new and innovative real estate techniques and technology, can have an energizing effect on your business. Not only might they lead to things that make you more productive, but it keeps you sharp and engaged. And, ultimately keeping yourself at the top of your game is what it’s all about. Top Agent Magazine
ALLISON RANK Top Agent Magazine
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ALLISON RANK Allison Rank got her start in the real estate industry working part-time during the thick of the downturn. Though her launch took place amidst a turbulent era, it was an experience that taught her valuable, hands-on lessons that she still applies to her work today. Now, seven years later, Allison’s business is thriving. She attributes that to her unrelenting persistence to be the best agent possible for her clients. Energized by bringing her clients’ success, Allison has crafted a career founded 8Copyright Top Agent Magazine
on forthright communication, accessibility, and consistent execution. Primarily serving the greater Kansas City Metro Area and Lawrence, Allison leads a tightknit team that includes a buyer’s agent and an administrative assistant. Having a strong professional network, Allison is uniquely equipped with first-hand knowledge of the local inventory and market—keen insight she passes along to her clients. What’s more, AlliTop Agent Magazine
son’s approach to the agent-client relationship is an organic one, as many of those she works with ultimately become friends. This makes it easy for Allison to maintain her client base both past and potential, whether she’s connecting by e-mail, phone, or through face-to-face time. One of her favorite experiences from the previous year was helping a family relocate from Germany to Kansas City. They trusted her enough to make an offer on a home without ever seeing it in person before closing. “It ended up being the most perfect home for them Top Agent Magazine
and they constantly remind me how much they love it which is such a rewarding feeling.” A twenty-first century agent, Allison also maintains a systematic database, with follow-up campaigns built into her routine, along with a strong social media presence. All in all, her professional ethos is defined by integrity and communication, doing her best to keep anxieties low and communication free-flowing throughout the transactional process. “For me, it’s all about serving my clients,” Allison Copyright Top Agent Magazine9
“For me, it’s all about serving my clients. I field any challenges that arise, in order to keep the process positive and as stress-free as possible.” recounts. “I field any challenges that arise, in order to keep the process positive and as stress-free as possible.” As for her marketing efforts, Allison favors a blend of the traditional and digital, ensuring each of the listings she’s responsible for puts its best foot forward. From professional photography, staging, and posting to the top online listing platforms, to creating brochures and mailers and throwing memorable open houses—Allison provides tailor-made Copyright Top Agent Magazine 10
exposure for her clients. While her incisive execution delivers results, Allison never forgets the personal component at the heart of every transaction. “Interacting with clients is my favorite part of what I do,” she says. “I’m lucky enough to stay deeply involved with my clients and their lives.” In fact, it’s not uncommon for Allison to be invited by former clients to housewarming and birthday parties, her amenable personality endearing her to all those she works with—including her fellow agents. Top Agent Magazine
Extending her spirit of service to the local community, Allison is involved in a range of causes and organizations, including Lead to Read and Turn the Page KC. Once a week, over the lunch hour, Allison reads to elementary school children at a local urban school. She’s also active in organizing fundraising efforts for Turner House, a free healthcare clinic for inner-city children. Allison is a member of the Rockhurst University Leadership Council, the Village West Rotary and recently appointed a Commissioner for the Board of Commissions for Urban Planning and Land Use in her county. Allison believes that her purpose is to serve others whether that be real estate related or community related. “I wake up each day with enthusiasm for what lies ahead and I end each day grateful for the opportunities that have been Top Agent Magazine
given to me.” In her free time, Allison enjoys travel, yoga, running, reading, and spending time with her friends, family and her dog, Chloe. After a busy year of growth, Allison looks to the future with plans to continue that upward trajectory—all while maintaining the hallmark standard of service her clients have come to expect. Allison knows that increasing her knowledge is the only way to meet her true potential which is why she invests in a real estate coach and frequently attends real estate conferences to continually develop her skills for the benefit of her clients. With almost a decade of hard-won experience under her belt—and a devoted network of pleased clientele—the future ahead is sure to remain bright for Allison Rank. Copyright Top Agent Magazine 11
To learn more about Allison Rank visit arank.reecenichols.com, e-mail agent@allisonrank.com, or call (785) 691-7654 www.
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A Powerful Marketing Tool Defer Taxes When Selling A Residence
By David Fisher
Winston Churchill once said, “There is no such thing as a good tax.” Of course, he also said, “I like pigs. Dogs look up to us. Cats look down on us. Pigs treat us as equals” so Winston was a pretty sharp guy. For purposes of this article, however I will focus more on taxes and less on pigs although there are probably more similarities than differences between the two. Pork is more than just the other white meat. I don’t mind paying my fair share of taxes but I want my taxes to go to things like fixing infrastructure, educating poor kids or feeding the hungry. However, it seems that much of our tax dollars go to pork projects to help members of Congress get reelected so that’s why I have become more focused over the years in my practice in helping my clients defer taxes when selling real estate and other highly appreciated assets. Top Agent Magazine
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Most of us are familiar with what is called a 1031 exchange. A 1031 exchange is a great opportunity to defer capital gains taxes,state taxes and depreciation recapture when selling an investment property and by following IRC 1031, the seller can purchase another investment property of equal or greater value and defer the previous mentioned taxes to some point in the future. It’s a great opportunity for the seller and it’s a great opportunity for the real estate broker to buy additional property for their clients. It’s a win-win. But what if the property being sold is a primary residence or a property that does not qualify for a 1031 exchange. We all know that a primary residence might be the largest investment that many will make and hopefully the primary residence will appreciate in value over the years. Even though there are various exemptions and exclusions for capital gains when selling a primary residence,it’s quite possible that there could be a sizable capital gains and state tax liability once the residence is sold. For example, I worked with someone recently who bought a home wisely and now, a couple of decades later, is selling the property and after crunching the numbers is facing a $4 million capital gain. The property is in Texas so the seller is looking at a capital gains tax of $800,000 (4 million x 20%), no state income tax in Texas but add that in for the 43 states that have a state tax and also the CPA said that there might also be the alternative minimum tax as well but he wouldn’t be sure until crunching all of the numbers. If so, that’s additional income tax due. So if the property sold was in California, you can add about another $400,000 in state taxes. If the property was in Colorado, you could add an additional $200,000 in state taxes and so on. 14
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We all know that a primary residence might be the largest investment that many will make and hopefully the primary residence will appreciate in value over the years. But take the taxes due to the next level. Let’s say that this individual paid $1 million in taxes, he is 60 years of age and will live for another 20 years. If he could defer that $1 million in taxes and invest that amount wisely, that could be $3 million or more that could be passed on to his heirs at his passing. Remember that this is only the taxes deferred and not the rest of the sales proceeds. So the question is this... Can a property owner defer taxes when selling a high end residence or luxury property that does not qualify for IRC 1031. The answer is YES. It is absolutely possible. Having said that, there are a number of moving parts to accomplish this tax deferral strategy and the seller’s CPA and /or attorney would have to be involved but yes, it’s possible. Imagine if you will the day you started selling real estate and you decided to work as hard as you could and put as much money away into your retirement plan as is possible. You would make whatever sacrifices needed in order to make as large a contribution to your retirement plan as allowed and when you had $3 million in your account, you were going to retire and do all the things that you choose not to do until you retired and had enough money to enjoy life. Top Agent Magazine
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You opened your monthly statement and you couldn’t believe your eyes. There it was... $3 million in your account. You made it. So you worked more hours than anyone in the office. You talked to potential clients that no one would talk to. You kept your car a couple of extra years before buying another one and you took shorter vacations rather than longer more expensive ones so you could make larger contributions into your retirement plan. Sound familiar? And this went on for 3 decades until one day, it happened! You opened your monthly statement and you couldn’t believe your eyes. There it was... $3 million in your account. You made it. You could now retire and do all the things you put off until now. You could not contain your excitement as you dialed your CPA with the great news. Your CPA was thrilled at your good fortune and mentioned to you that he had a tax form you needed to sign and then you could begin your well deserved retirement. So he says to you...I need you to sign and date the form and then write a check made payable to the US Treasury for $900,000.00 and as soon as the check clears, you retirement can begin. You feel like you were just hit by a truck. You try to speak but nothing is coming out of your mouth. Your CPA explains that a couple of years ago, Congress passed a tax law that said that before a taxpayer can retire, they must pay a 30% tax on the lump sum amount in their retirement plan. So you realize that you actually have $2.1 million in your account and probably need another 10 years of working to net the $3 million you want to retire. You’re devastated. 16
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“Have you considered the potential capital gains tax liability you will have when you sell.” Well, there’s good news and there’s bad news. The good news is that there isn’t a 30% tax on retirement plans for now. I made that up. The bad news is that your sellers could be facing as much as that 30% tax on the capital gains they have earned when you sell their property. You don’t want to pay that tax so why would you let your clients pay that tax now that you know it might be able to be deferred indefinitely. But imagine the powerful tool you now have in your briefcase. You’re talking to a prospect who is selling a high end property in LA, Aspen, Miami, New York, Chicago or any other location in the country and you want to list that great high end residence. The problem is that as good as you are, there are 3 other talented brokers that are also competing for the listing. Those 3 make outstanding listing presentations and the prospect is absolutely impressed with all of them. Now it’s your turn to hit the ball out of the park and you make Babe Ruth proud. As you’re finishing, you ask the prospect one final question. “Have Top Agent Magazine
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Again, this tax deferral strategy may not be for everyone but if it helps you make 1 sale a year, that’s a great opportunity for all involved. you considered the potential capital gains tax liability you will have when you sell.” The prospect responds that his CPA informed him that there will be a rather large tax bill to pay and he just has to take a deep breath and pay it. You then smile and ask him if he knew that he might be able to defer those taxes. He looks at you a bit stunned and asks you to explain and you do. Even if he decides to pay the tax, you have set yourself apart from the others and I can tell you that we have a number of success stories where the agent took the time to show concern for the prospect after the commission check would be paid and got the listing. Again, this tax deferral strategy may not be for everyone but if it helps you make 1 sale a year, that’s a great opportunity for all involved. As I mentioned earlier, there are a number of moving parts to this strategy but a short phone conversation probably could give us insight to the viability of this strategy in a specific set of circumstances.. Now go sell a great property, defer the capital gains and state taxes and invite me to dinner. But please don’t serve pork. Churchill probably wouldn’t approve. Best wishes until the next time we visit. Copyright©, 2015 David Fisher. All rights reserved. David Fisher is the founding partner at Creative Real Estate Strategies. His firm specializes in helping brokers all over the country buy and sell real estate for their clients in a tax efficient manner. He can be reached at david@cresknowsrealestate.com. His cell is 713-702-6401 and there is more information at www.cresknowsrealestate.com 18
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Drip Those Online Listing Leads By Walter Sanford
My coaching clients are beginning to find more success with their online listing leads. Whether the lead is coming from postcard-generated invites to complete forms on their site or third-party consolidator leads, the web leads are coming in. The problem with a lot of these leads is bad phone numbers but good email addresses. The question is - how do we engage them in a conversation that leads to a listing appointment? Uncovering the seller’s needs prior to an appointment is always the first step in creating client satisfaction, but it’s very difficult to do without good contact information. By showing these potential sellers value, my clients have found that many sellers who wanted to remain anonymous are now holding up their hands and shouting “I want some of that!” The drip system that creates this kind of excitement is one that’s immediately started after the lead is received. The system shows the value that you can bring to their discovery process. Every three or four days, send an email that lets them know that there is so much more that a top, local, professional agent can add to their search. With my clients, we only give a little bit of information at a time. Usually within a few weeks, we have the serious leads contacting the agent for an over-the-phone consultation. Below are some of the points that we stress in our drip system email campaign for online listing leads: 20
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Week One: Thank you for contacting us for more information regarding the sale of your property. I hope the information we have already provided was of some help to you. We believe that a real estate relationship should be based on the client’s needs. Once we know those needs, we have some very unique solutions that our past sellers have mentioned were available nowhere else. Please give us a call so we can supply some unique answers to unique challenges. Week Two: In our earlier email, we talked about unique solutions. One of the unique solutions we provide our sellers is a pre-listing consultation. Go to www.(yoursite).com/prelistingconsultation to answer a few questions and schedule a phone call that’s convenient for you. This will allow our team to be better prepared to give you some insights regarding what to expect in this market. Week Three: In continuing our theme of delivering value to our potential sellers, one of the most appreciated value propositions that we give our potential sellers is our “seller education system.” If you call us, we can program a search for brand new listings each morning. The search will include specs that compare to your home and the results will be emailed directly to you. This provides you with brand new listings that would be competing with your home, if it was on the market. This makes you the most educated seller in town knowing what the competition is. You’ll receive these new listings at the same time agents in (your town) receive them! Week Four: Occasionally, we have a seller who isn’t interested in considering a sale unless he/she knows the value first. We came up with a solution that eliminates a lengthy listing presentation. We call this our free 48-hour phone value analysis. Go to www.(yoursite).com/valueanalysis. Complete the form and within 48 hours, one of our team members will call you. Based upon the same comparables that appraisers would use, we will let you know the value of your home. This is a fast and inexpensive way to bridge the gap of an expensive appraisal or a time-consuming listing presentation with a service that can be just as accurate. There is no charge for this service, and we are happy to put the numbers together for you! Top Agent Magazine
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Week Five: One of the services that our sellers most appreciate is our “meet the team” concept. You can go to our website or call us directly for the contact information on a trusted team member for almost any service. We know the best plumbers, HVAC techs, electricians, roofers, landscapers, painters, carpenters, and carpet installers in the area. We use them on our own homes, we trust them, and we have long business relationships with them. If you need anything done around your home to prepare for a potential sale or if you just want to get it ready for a special occasion, we know who does the job well here in (your town). Week Six: Our sellers get higher prices because we make their homes desirable to buyers! We call this service our “primp and polish” service. Any consultation is free! We can provide you some simple tips to make your home more inviting to buyers. We will point out any potential red flags and help you place furniture to get things ready to create that emotional pull. We have professional decorators on call. Their services cost money, but we have found their service is a good investment based on the additional monies that we receive for our client’s properties. The initial consultation is free! Please give us a call so we can set this up for you. Week Seven: Did you know that our company has access to a majority of the top real estate agents in any city in the world? If you are considering selling your home here and buying out of town--we can send you to top agents who understand your needs. Top agents know they can’t solve client’s challenges without first knowing what those challenges are. If you want a special house out of town, then give us a call. We know agents who will not only show you standard MLS properties but also properties that are not yet on the market. We call these “secret properties.” These secret properties can be owned by past clients who might consider selling or sellers developed from a postcard mailing campaign in your neighborhood of interest. These agents know many ways to find property that other agents will not show you. We find this service to be one of the best that we provide for our buyers so we wanted to make sure that you get the same service when you move. 22
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Week Eight: If you’re not quite ready to list your property, we have a system called “sell the sizzle before the steak.” I know it sounds a little corny, but we can discretely present that your home might be available to our database of buyers. This helps us to do a little pre-marketing prior to a full commitment of our complete marketing plan. If you are interested in this service, please don’t hesitate to give us a call. Week Nine: Did you know that we have a policy where no real estate agent will be allowed to negotiate with you in person? We do this because many times real estate agents can be very forceful in the presentation of offers from their clients. We ask for that offer to be presented to us, and we will spend as much time as you need with just us - your representatives. This eliminates awkward meetings where you need more time to think, and the buyer’s agent is pushing for an answer. We believe that selling a home should not only be massively profitable but also fun. If you’d like more ideas on how we differ from the competition, email or call me at your convenience. All contacts will be kept confidential. Well, I hope you get the idea that we’re trying to start a conversation with that potential seller instead of letting them fall through the cracks. A drip email campaign for a seller is similar to the campaign for buyers. It’s necessary for listing leads since the majority of information requests come via the web with incorrect or inoperable phone numbers. The only way to get these leads talking is to present them better value than everyone else. Copyright©, 2015 Walter Sanford. All rights reserved.
Walter Sanford has been designing and implementing real estate systems for 30 years. One of the most successful REALTORS® and now wealthy from his systems, Sanford teaches his systems and strategies through his products, seminars, and personal coaching producing the best results in the industry. Do what works, do what is proven. Hire Walter Sanford. Call our office at 800.792.5837, email walter@waltersanford.com, or chat with us online at www.waltersanford.com. Top Agent Magazine
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