MINNESOTA EDITION
HOW TO SPEED UP FIRST-TIME HOMEBUYER TRANSACTIONS RECONSIDER REFERRAL-ONLY WHEN PLANNING FOR THE FUTURE
TOP AGENT TIPS AND QUESTIONS FOR CHOOSING YOUR LISTING AGENT THINKING OF LISTING? NINE WAYS TO GET READY COVER STORY
JIM SLATER
MINNESOTA EDITION
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JIM SLATER
CONTENTS 4) HOW TO SPEED UP FIRST-TIME HOMEBUYER TRANSACTIONS
16) RECONSIDER REFERRAL-ONLY WHEN PLANNING FOR THE FUTURE
14) THINKING OF LISTING? NINE WAYS TO GET READY
20) TOP AGENT TIPS AND QUESTIONS FOR CHOOSING YOUR LISTING AGENT
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How to Speed Up First-Time Homebuyer Transactions Working with first-time homebuyers can be among the most rewarding real estate transactions an agent can embark upon. Not only are you helping guide newcomers into the housing market, but you’re also witness to the excitement and triumphs along the way, including handing over those keys for the first time. While 4
helping first-time homebuyers navigate the transactional process can be a reminder of real estate’s benevolent power, it can also come with its own bumps and bruises. So, what’s the best way to streamline the homebuying process for first-timers, while maintaining the magic and keeping your sanity along the way?
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While helping first-time homebuyers navigate the transactional process can be a reminder of real estate’s benevolent power, it can also come with its own bumps and bruises. Set expectations upfront and often. It’s no secret that communication is a cornerstone of a successful real estate practice and client relationship. Amidst a transaction as complex as buying (or selling) a home, it’s important that no wires get crossed, no questions go unanswered, and no information gets lost in translation. To accomplish this, create communication parameters with your clients up front. Inquire about the communication medium they’re most comfortable with—a text, a call, an email, etc. Then, tailor your outreach accordingly. Also, consider setting a weekly time to check in, even if no official progress has been made. This helps clients and agents touch base, float questions and concerns, and get ahead of any problems or developments. Another helpful tool is to draft a transaction timeline for your client that outlines the major milestones along the way, what sort of information will need to be gathered, what steps taken, and what outcomes are possible. This might seem like exhaustive work, but in the era of digital research, clients will come to their own conclusions and biases Top Agent Magazine
whether you like it or not. To stay on the same page and timeline, be the foremost resource for your client, and don’t leave their questions up to chance.
Know your first-time homebuyer programs and perks. There are a variety of national, state, regional, and local grants and programs that aid first-time homebuyers as they pay their down payment, shop for home or mortgage insurance, and otherwise deal with the financial implications of becoming a homeowner. Sometimes these programs are neighborhood-specific in certain cities, with incentives to buy in up and coming areas. In some cases, there are grants that support underrepresented minority communities breaking into homebuying, and these can go a long way in making the burden of a down payment and associated fees doable. In other words, do your research. The right program or grant could make the difference in nabbing a dream starter home for your client, while setting them up for future financial success.
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Get pre-approved for a mortgage—and shop around for the best rate. Not all mortgage rates are made equal. As an agent, you likely have good relationships with area lenders that you trust, but it’s still important to complete your due diligence when helping first-time homebuyers find the rate that suits their longterm housing goals. Also remember that first-time homebuyers are new to this process, and while real estate transactions are complex in their own right, the borrowing and lending processes can be alienating in their complexity. As an agent, it’s your job to play intermediary and teacher, ensuring your clients know their options, are prepared to make an educated decision, and
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feel confident that they’ve chosen correctly. Talk with your preferred mortgage partners to best outline options for your clients’ understanding, laying out a framework that’s informative, projected into the future, and allows them to feel empowered by knowledge. All in all, working with first-time homebuyers can be an exciting and joyous occasion, as long as you’re adequately prepared for some hand-holding and instruction along the way. Aside from the enthusiasm of successful first-timers at the closing table, you’ll also enjoy the lasting benefit of strong referrals to their friends and family, many of whom will be shopping with you for their own first dream homes.
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JIM SLATER
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Top Agent Jim Slater serves the Twin Cities metro area, with a special focus on waterfront property on Prior Lake, earning him the nickname “The Lakeshore Guy.” Jim Slater found his passion for real estate after many years spent touring the world as a professional roadie and lighting director for famous rock and roll artists. When he retired from his first career in 1992, Jim started investing in waterfront property on Prior Lake, where he grew up. Jim decided to become a REALTOR® in order to 8Copyright Top Agent Magazine
be a force for good in the world of real estate. “I wanted to make sure nobody would ever overpay or give their home away, and to this day, I stick to that,” Jim explains. “It’s all about my clients.” Jim serves the Twin Cities metro area, with a special focus on waterfront property on Prior Lake, earning him the Top Agent Magazine
nickname “The Lakeshore Guy.” His rate of repeat and referral business is massive at around 80% of his business, and it’s easy to see what keeps clients coming back. “It’s because of my high standards,” Jim says. “My biggest competitor is
myself, and my standards are the highest I can make them. I got my high standards from the music business, where the show must go on no matter what. It’s the same in real estate. Our standards are so high because our clients’ standards are high.
Jim’s rate of repeat and referral business is massive at around 80% of his business, and it’s easy to see what keeps clients coming back. “It’s because of my high standards,” he says.
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“The three key elements of what we do here are marketing, strategy, and innovation,” Jim says. The results speak for themselves, with Jim doing an average yearly volume of about $20 million. Our clients are demanding, so I have to be demanding.” Staying in touch with clients comes naturally to Jim, and he hosts events to show his appreciation. He also sends clients useful information about the value of their homes to remind them what a great investment they made. “I become Copyright Top Agent Magazine 10
their family friend,” Jim says. “I care so much about the people who have worked with me and asked me to help them.” When it comes to marketing his listings, every home gets the same treatment no matter the price point. “The three key elements of what we do here are marketing, strategy, and innovation,” Jim says. The results speak for themselves, with Top Agent Magazine
Jim doing an average yearly volume of about $20 million. With Jim’s success, go-getter becomes go-giver, as he loves to give back in any way he can. “The secret to living is
giving,” he says. “When God gives you a gift, you have to give that gift away.” For every closing, Jim donates to a charity that’s important to his clients. That spirit of giving and service extends to the way he treats his clients, too. “We are
The spirit of giving and service extends to the way Jim treats his clients, too. “We are here to serve, not to show off; to make a difference, not to make a name; to give good, not to look good,” he says.
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here to serve, not to show off; to make a difference, not to make a name; to give good, not to look good,” he says. Looking toward the future, Jim says, “I want to keep growing and take on a few agents so I can serve my clients even better. We will keep building a brand, upgrading our skill set every year, and
learning how to be better and keep our good reputation. I’ve had the greatest life. I’ve traveled the world with rock and roll bands, and I’m now at the point in my life where I just want to breathe, absorb, and appreciate. I love my clients, and I love being there for them. What I do doesn’t feel like work, because I love it so much.”
Contact Jim Slater at 612-590-1802 or jim@slaterrealtygroup.com, and you can find him online at slaterrealtygroup.com www.
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Thinking of Listing? Nine Ways to Get Ready The less time a home spends on the market, the more likely it is to sell at or above list price. That’s why our Top Agents recommend getting a property ready for marketing well before listing. Anyone who is even just starting to think about listing will benefit from some basic upkeep and pre-staging work. Even if you decide now is not the time to list, you’ll enjoy these simple improvements around the home. With the right local resources, most pre-listing preparations take less than a week and will make the formal staging process simpler for all involved. Ask Top Agents in your area for referrals of local pros to hire. Once you’ve selected your Top Agent, keep yourself open to his or her opinion on other TLC to help decrease your home’s market time. 1. Inspection: The last thing a seller or buyer wants is a surprise at
inspection. That’s why a complete inspection before listing is so valuable. Many necessary fixes, such as minor roof or appliance repairs, can be discovered and repaired in less than a week. If inspection uncovers a major issue, any Top Agent will tell you that this knowledge is power; disclosing and expecting to take responsibility will increase buyers’ trust without affecting market time. 2. De-Clutter: Take a little time to pack away surplus furniture items and
extra knick-knacks, papers, books or occasional-use items throughout your house. Remember this may require boxing away video game supplies or packing up comfy throw pillows and blankets. Move these items temporarily into closets, the garage or attic with the assumption of possibly renting a storage unit just before listing. 3. Paint: Whole-house painting is likely not necessary, but consider touching
up baseboard moldings and doorways and open wall spaces in high-use areas 14
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such as bathrooms, the office, family room and indoor recreation spaces. Also consider a little varnish on the front door or banister. 4. Artwork and Decor: Take a neutral look at your décor. Better yet, ask a
Top Agent to do so. Buyers should be able to picture themselves living in your home. While your Top Agent may not advise you to appear generic, you’ll likely need to thin out any shrine-like displays to family, hobbies or cultural interests.
5. Deep-Clean Housekeeping: After you’ve de-cluttered and touched up
the paint, request a deep cleaning from your housekeeping service and weekly cleanings thereafter. Make sure they pay attention to details like dusting or vacuuming window treatments and lampshades or wiping smudges off door jams and baseboard moldings. 6. Carpets and Rugs: Bring in the pros, but don’t just clean the carpets.
Because the cleaners will be moving furniture anyway, ask them stretch and tighten any buckled areas of carpeting. Doing so now saves the trouble of having to credit your buyer for this following final walk-through. Also consider removing small area rugs to let the beauty of your hardwood floors shine.
7. Look at the Loo: Buyers may not notice a brand-new toilet seat, but they
will turn up their noses at the one with the broken hinges. Freshly replaced toilet seats, faucets or doorknobs in heavily trafficked bathrooms can go a long way in first impressions.
8. “Mow & Blow”: Consider buyers as guests you want to feel welcome
as they ascend the front walk. If you don’t already have one, hire a weekly gardening service to keep up with the mowing, weeding, pruning and basic maintenance outside so you can focus on other things. 9. Staging: Once you’ve selected a staging professional for the finishing
touches, ask them and your Top Agent for final recommendations on day-today upkeep, storage options and what-to-do (or what not to do) while your house is on the market.
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Reconsider Referral-Only When Planning for the Future
A 100% referral rate is a testament of client happiness. But even a 30% referral rate is proof of client satisfaction. It’s all relative, say some agents. One number pays tribute to past success, which is certainly a story worth telling. But the other might better predict the future. Many agents plan for the idea that 16
working only on referral may not be sufficient during slower times of the year, in a down market, or when an agent needs to expanding into a new sector. Unless you are clairvoyant enough to flawlessly predict every market change or every
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Many agents plan for the idea that working only on referral may not be sufficient during slower times of the year, in a down market, or when an agent needs to expanding into a new sector. life change that your clients and referral partners may experience, it’s wise to maintain an active marketing presence. The reasons vary, however, depending on the goals and trajectory of each individual’s business. If long-term success, a growing team, a legacy or expansion into new areas are not priorities, then working a sphere of influence may be enough for some agents, especially those who may be in the industry mostly for the love of the business. But for a majority of agents, no matter how much they love their work, their real estate and mortgage businesses are careers, first and foremost. Let’s start with the team-builders and mentors. Agents and brokers who are building teams are wise to invest in business marketing, advertising and community outreach. Ty Hutchins, who owns and operates Ty & Company Real Estate in Colorado’s Front Range, says that, while she could personally live off referrals alone, her goal is to build up her agents. “I do the marketing piece for my team, so I can help them succeed,” she says. That marketing includes running commercials on TV and in movies theatres, as well as lead generation that identifies potential buyers, sellers and Top Agent Magazine
investors between the Colorado Springs and Denver markets. Her team’s goal, she adds, is to promote their reputation of being honest, hardworking professionals with the reach of a major brand but the personalized approach of a boutique. Then there are the growers. Khrista Jarvis and Nicole Jung of The Khrista Jarvis Team in the San Francisco Bay Area, are on a considerable growth track. “We’re the #1 team in our area and the top team in Compass Real Estate nationally,” explains Khrista. While high marks for service on behalf of their clients have led them to these heights, they know that they must continue to evolve and market their brand. “We do a good deal of social media marketing for our listings and for our business,” she says. Their names, therefore, are frequently linked to sentiments of trust, dependability and market knowledge, both in their marketing and in their reviews. Next, there are those who weathered the worst of times. Susan Roche entered real estate sales in 2003, following several years of property management in North Carolina. The key to her sustained triumphs through major market swings lies in her long-range planning. “If the market starts to dip or fall,
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I have safety nets in place,” says Susan Roche, team leader of Simply Real Estate, based in Charlotte. “When it’s a seller’s market, I still plan for a buyer’s market and when it’s a buyer’s market I plan for a seller’s market..” In other words, no matter how comfortable her existing work may feel, she networks consistently. She also employs a full-time marketing director who leads several projects including ongoing research, events and social media exposure in addition to listings marketing. By staying ahead of market changes, Susan knows she can unfailingly represent her clients’ best interests while still maintaining a safety net for her business. Even professionals with more than three decades’ experience and deep referral networks know the importance of business
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marketing. Cathy Richards, co-owner with Nancy Dalaska of Epic-Wasatch Homes in Park City, UT, entered real estate in 1987 and still draws at least a fifth of her business from lead generation, social media marketing and community outreach. Her business partner, Nancy, adds that real estate is about much more than their own business. “We love collaborating and brainstorming with other agents to help them prosper,” says Nancy. “We believe the healthier the market, the better we all are.” Regardless of market conditions, even the best reputation can’t guarantee long-term success. To sustain and grow, it’s wise to feed your business by increasing exposure, remaining flexible and maintaining systems for customer service, networking, research, marketing and lead-generation.
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Top Agent Tips and Questions for Choosing Your Listing Agent Now that you’ve decided to sell, it’s time to select the professional to help you market your property. Before meeting with agents, however, consider Top Agent Magazine’s tips for preparing yourself. Frist, ask yourself what kind of relationship you’d like to have with your listing agent. Are you seeking a casual, personable relationship and the latest marketing tools or are you interested in a more formal, traditional relationship and approach to marketing techniques? Next, populate your list of agents by attending open houses and asking for recommendations from recent buyers and sellers. Finally, schedule your meetings at your home, where you’ll be able to gauge the chemistry between you and each agent. During your meetings, expect any Top Agent to ask you several questions, but also consider discussing the following: 20
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Will you please describe your sales experience and local network?
Ask your Top Agent to describe recent listings and sales of homes comparable to your own. Ask about the sellers’ priorities, the original list price, market time and number of offers. Top Agents will also describe how well they are connected with other REALTORS® in the region as well as their contacts with relocation companies, local corporations and chambers of commerce. Be sure to ask about each agent’s knowledge of how your market has changed over time and what has influenced change.
You’ll learn a lot by listening to How will you market the property? Each agents’ opinions. Top Agent has a unique set of online or local
marketing tools at his or her disposal. Some use lead-generation applications and nearly ever luxury agent take advantage of video. Even video marketing tools vary from agent-to-agent, however. You’ll get to decide if you prefer an agent with higher-end video production and 3D Matterport tours or an agent with more intimate techniques featuring walk-and-talk style video tours. What factors influence your list-price recommendation? Before an-
swering this question, most Top Agents will have several questions for you, including whether you’re more focused on a faster sale or a higher list price. They’ll also educate you on how best to balance both market time and list price relative to sales histories your area. Now that you’ve seen the home, what repairs or improvements do you recommend before listing? You’ll learn a lot by listening to agents’
opinions on your home’s sale potential with or without some improvements. Most Top Agents will also recommend a full professional inspection prior to listing to avoid surprises during buyer inspection.
How will you help with staging? Some Top Agents will pay for part or
all of the staging costs. At a minimum, however, a Top Agent will have a staging professional or two in their partner network. While they’re at it, they may provide referrals for carpet cleaning, painting, gardening and other minor finishing touches. Top Agent Magazine
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What attributes of the property will you want to highlight? Each Top
Agent will have a somewhat different answer to this question, but that’s a good thing! Even if you have your own ideas about your home’s greatest attributes, you’ll glean insight into the current market by considering different agents’ opinions. In learning their views, you may even change your mind about your home’s most marketable features!
What is your approach to Open Houses? How many agent-only Open
Houses will your Top Agent want to host? How many truly Open Houses? Some Top Agents may even reveal a “swankier” approach to the Open House – such as an evening cocktail party or by-invitation “open” hours to which buyers visit along with the agent representing them.
Who will be our primary point(s) of contact from your office? This
important question will help you understand the scope of your agent’s practice. You’ll get to see if your agent runs a robust team with many hands on deck or if he or she works by close, one-on-one contact with each client. Either approach is wonderful; you get to decide what suits you. Now, let’s list! 22
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Laughs!
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