NEVADA EDITION
Killing Clients with KINDNESS AND VALUE PRODUCTIVITY KILLERS: 4 Ways to Make Better Use of Your Working Hours
How to Recognize TRUE LUXURY PROPERTIES Developing Your PRICING PHILOSOPHY
COVER STORY
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NEVADA EDITION
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JEN COLLEY JEN COLLEY
CONTENTS 4) HOW TO RECOGNIZE TRUE LUXURY PROPERTIES 13) KILLING CLIENTS WITH KINDNESS AND VALUE
18) DEVELOPING YOUR PRICING PHILOSOPHY 22) PRODUCTIVITY KILLERS: 4 WAYS TO MAKE BETTER USE OF YOUR WORKING HOURS
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How to Recognize True Luxury Properties What to Consider Other Than Location When luxury home buyers are looking for a new abode, they are often advised to pay most of their attention to location, location, location. And it’s true that good locations often have better properties, but if you’re only looking at location then you might be forgetting what it is in a luxury property that makes it luxury. You could view a property in a great location, and because you completely ignored any of the other factors that make a property high end, you might find that once you move in, you aren’t as pleased with the actual house itself as you thought you would be. Here are the other things you should look out for when purchasing a luxury home: • Architectural Uniqueness: The simple fact is that good
architecture retains its value. Do your homework on architects and find the ones that have a good track record of designing beautiful, but practical homes. Don’t simply pay attention to how the building looks today. Consider how it will look in a few decades. Keep an eye out for the “bones” of the building, and decide whether they will stand the test of time or not. Things such as a solid foundation, high-grade materials, unusual details, and artistic components are good aspects to consider. Will the structure hold up well or will it degrade and crumble without constant upkeep? That funky molding may look artistic today, but in ten years will it be considered artistic or just plain weird?
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• Practical Layout: Make sure you have enough room to live
in comfort. As a buyer of luxury property, you probably have quite a busy social schedule. You want to make sure that the layout will lend itself to helping you maintain clear separation between your social areas and private ones. You don’t want guests having to go back into your bedroom to use the bathroom. Look out for places with stairwells, awkward columns, long hallways, and other wastes of space.
• Unobstructed Views and Light: You want to live in
a home that gives you lots of natural light, such as one that is open to the outdoors. That natural light will improve your mood, as well as the resale value. The openness of a space filled with natural light will make you feel more comfortable and happy in your new home. What about the view? Do you see a Do you park, a bridge, a river, or a skyline? Is the see a park, fantastic view out your window protected? a bridge, You’ll need to understand the surrounding air a river, or a rights and zoning allowances of neighboring buildings to understand the possible risks. skyline?
• Windows: Windows are the primary source of losing heat and
cooling. Make sure they are double-paned with good insulation that will protect your home against weather and noise. Unless the windows are already like this, it is unlikely that the condo or co-op board will allow you to install your own.
• Ceiling Height: Consider the cubic footage of the property.
You want to look for high ceilings that increase the openness of a room. Of course, you don’t want to go too high. Above 14 feet will get you diminished marginal returns.
• Storage: If you’re a woman, you will understand this one. We need
lots of closets and additional storage room to fit all of our clothes, shoes, jackets, hats, purses, etc. However, lucky for you, your potential home’s existing closet square footage will not limit you from putting in more storage space. Custom closet companies can create any kind of storage
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space you desire. You will have to, however, make sure that your new home does have an area that you can turn into this storage space. • In-Unit Laundry: In-unit laundry has become necessary for
any luxury home or apartment. Do you really want to have to trek down flights of stairs to use the basement laundry? If you still consider it wasted space, you can convert it into more closet space.
• The Gym: Having a fitness area nearby is an amenity that is especially
important, particularly in winter when you don’t feel like walking to the gym a few blocks down. One thing to consider is the Do you really want of the gym in relation to have to trek down size to the size of the building in flights of stairs? light of common area fees. • Move-In Ready: I’d advise against buying time-consuming and
frustrating fixer-uppers no matter how much you want to add custom kitchens, finishes, fixtures, and other characteristics. Choose a property that already has all of these amenities taken care of. These properties have already had the same designers you would hire fashion the house at a fraction of the cost you would pay to have them do it after you move in. In this light, it is worthwhile to pay a little extra for the move-in ready home.
• Reputation: Pay attention to the reputation of the building. A
property that has a good reputation tends to retain its value. You can easily find this out online on posts, and established locals are likely to have an opinion.
If you want to buy luxury property that is really worth it’s price, then I would suggest adding these points to your list of things your new home must have. If you want to get a high quality home that is a true luxury, you’ll want to watch out for these aspects as well as the location. Some properties might claim to be luxury based on their location, but when compared against this list, they don’t make the cut. So, don’t be fooled by imposters, and make sure you find a true high-end property. 6
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JEN COLLEY 7
JEN COLLEY Jennifer Colley discovered her passion for real estate when she and her husband began investing in rental properties. In 2002, she finally decided to study for her real estate license. Originally licensed in Washington, Jennifer–an eternal optimist–had her own brokerage there, but she turned a stroke of bad luck into a new opportunity after her house caught fire. “It was time to move back into our house but all our things were boxed up so I said, “Why don’t we move?” So in 2014, Jennifer and her husband moved to Reno. She soon received her Nevada license and she now leads a thriving team of seven 8Copyright Top Agent Magazine
people serving the Reno Sparks, South Lake Tahoe and Carson City areas. Jennifer and her team have a thorough consultation with each client, which allows them insight into their client’s priorities and needs. “What’s most important to us is what’s most important to them,” Jen explains. She understands that buying or selling a house and moving can be stressful so she works to take as much pressure off her clients as possible. Jennifer and her team have a fleet of trailers that they let their clients use for moving. “If they don’t have a way to move them, my husTop Agent Magazine
band will go and move the trailers for them,” Jen says. For her, it’s about getting to know her clients and their needs so she can help them in any way possible, be it connecting them with reputable vendors or helping them to get to know the area. This isn’t a one-sizefits-all process, but rather one that is tailored for each client. “I try to think outside the box,” Jen says. Already over 30% of Jen’s and her team’s business comes from repeat or referral clients. Additionally, Colley Home Group has ranked #1 for a majority of the months in their MarTop Agent Magazine
ket Center of nearly 250 agents. Their caring attitude and desire to help each client on their journey is what keeps her clients coming back and spreading the word to friends and family. “We really just want to make it a fantastic experience for them,” Jen says. To spread the word about listings, Jen has professional photographs taken of every property. She then utilizes real estate listing sites, social media and YouTube, holds open houses, and posts 3D tours that allow viewers to do a virtual “walk through.” She educates clients about the importance of staging, paying for staging consultations and helping with staging as needed. Copyright Top Agent Magazine9
What’s Jen’s favorite part of her job? “I love making a difference in people’s lives! Whatever their situation is, I love assessing it from every direction and then moving forward. I’m a giver. So this job helps me because I want to give all the time and make a difference. I also love growing my team members and helping them to discover what their strengths are,” Jen explains. To stay in touch with past clients, Jen and her team reach out at least 10 times a year with purposeful gifts, client appreciation parties, or phone calls. “We always follow up a week Copyright Top Agent Magazine Copyright 10
after a sale and again 30 days after to see if they need anything or if they have any questions,” Jen says. She also sends out vendor lists and coupons. They recently launched a business-to-business video interview and each week they choose a different business to highlight and add to their Facebook page. They hope to add value to their local businesses and their clients who may be looking for a specific trade. Jen’s team recently went to Austin, Texas for Keller Williams annual Mega Camp Training. Being apart of a company that supports milTop Agent Magazine
lions of people though KW cares, it was no surprise that John Davis CEO of KW decided to turn the annual training Mega Camp to Mega Relief. KW Cares organized one of the biggest outreaches in the history of KW. In a matter of 10 days, they joined forces with Southern Baptist Church of Texas to reach as many families and homes destroyed by the storm. “We had many opportunities to contribute to the food bank, putting together care packages and relief buckets for the job sites. My team signed up for de mucking. We were bused to Houston each day to a different location to help de muck a family’s home. Top Agent Magazine
This was the most humbling heart-wrenching experience I have had. This experience was made possible by my loyal clients you put their faith and trust in myself and my amazing team. I am truly grateful!” Jen says. She also gives back in other ways. Jen and her team help sponsor a Kids on Big Rigs charity event, host a canned food drive, and donate to the local food bank, among other activities. In her rare free time, Jen loves to kayak, paddleboard or golf with her family. For the future, she’d like to help start a nonprofit so she and her team can be even more purposeful with Copyright Top Agent Magazine 11
their donations. She’s also focused on finding more amazing talent for her business. “I want to make sure our Reno area will be our welloiled corporate office. I want everything we do to be purposeful and as a result we’ll have great
results. Then I want to expand everything great we are doing here into another location so we can make a difference in other areas as well,” Jen says. With her work ethic and commitment to service, she’s sure to succeed!
To find out more about Jennifer Colley, contact her via phone at 775 - 420- 7147 or email at jen@colleyhomegroup.com. Or follow them on Facebook at facebook.com/ColleyHomeGroupKW www.
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Killing Clients with Kindness and Value By Walter Sanford
Sometimes, we need to “kill” our clients with kindness and offer value. I know it goes against everything in our nature to turn the other cheek when they are being mean. Recently, a coaching client had some challenges with a particular client, and I’m sure you have also worked with the kind of client who discourages you so much that you just want to hit the delete button! How about offering a response that increases your fame and makes the client always wonder what they may be missing? They might not list with you, but they will never forget you. Included in the balance of this article are the email from the client, the request for help from my coaching client, and then my suggested response. Email from the Potential Client: Sorry, I have been really busy. Let me tell you where I’m at with everything. You may or may not be interested. I am definitely putting the house on the market. The house has been rented for the last 5 years with the same family. They originally signed a rent to own lease. Three years ago, they decided they didn’t want to buy it. Top Agent Magazine
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Anyway, I recently informed them that I’m going to put the house on the market. Now, they are reconsidering buying the house. I don’t think they will buy the house, but I guess you never know. If they do buy the house, it would be for sale by owner. I will not let them drag their feet. We happen to know a lot of REALTORS® in (area). Some are pretty good friends and with that comes opportunities at rates way under the norm. One of them did sell our last house quickly but circumstances have changed. I know you are a very good REALTOR®, because I have heard other REALTORS® talk about you. You may not be interested at this point anymore. If you are still interested, let me know what your best rate is. Let me know if you are okay with the current tenants on a “for sale by owner” agreement, if that happens. I would want a short-term agreement. The current rent is higher than my mortgage payment so I’m okay if they don’t buy and I’m not forced to sell at a low price. However, I want to sell ASAP. I’m wanting to purchase another property so I’m not going to overprice the house and I will negotiate. Email from Coaching Client to Me: Walter, this guy is a college basketball coach. I want to help him, but I need to have a chance to run a successful business, too! How do I answer this? Email from Me to Coaching Client (to share with potential client): Thank you so much for the nice words. It is very exciting to hear that our hard work is creating some buzz. I think we can accommodate you and exceed your expectations: 14
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1. We believe that we exceed client expectations more often than most agents, because we spend the time to understand what the client needs. Then we develop a customized program to meet and exceed that goal. We would love to help you in accomplishing your real estate needs. 2. We would be happy to exclude the current residents from the listing agreement for 30 days. This would help in motivating the current residents to buy in that they can see the price discounted by the commission, if they commit to buy within the 30 day period. We would like to offer you our closing service that handles everything for a flat fee of $4,000. This handles the contract phase, aligning the team of affiliates, and the closing. This, of course, is at your option. 3..Our commissions are normal for our market, but we save you money over any commission discounter. Our specialty is increasing your net proceeds. We do this by bringing you more buyers with more effective marketing, better negotiating, better systems for handling inspections, better pre-approval tools for your buyer, better contracts, and less post-seller litigation from better contracts. Commission discounts usually cost you money because of the agent’s lack of emphasis on your net proceeds check. It is like a basketball player who is playing with no heart, only for the scholarship. 4. Our rate is retail 6%. This may eliminate us, but that would be a shortsided conclusion. Here are 5 of the ways we can beat any commission discount: A. We beat the average List to sell ratio in (area) by a larger margin than any discount. B. We beat the days on market, which affects your carrying costs and lost opportunity costs on your equity. C. We have a low litigation rate as compared to national standards. D. We can market your home a little over retail due to our marketing. Top Agent Magazine
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D. We urge a pre-inspection plan to get rid of the little and big problems before a buyer is involved and wants everything built new. 5. Our agreements are 6 months, but that is not what sells properties. Marketing and price sell property. If we are wrong about those two items, we will adjust every week based upon showings and consultations with you. 6. I would also like to advise you on a misconception. Rental costs average about 35% of market rent in our area. Add in lost opportunity costs on your equity that is not doing anything at this point. I can show you how your current position is losing you money every month. I think our next step is a presentation of the tools we bring to achieve your goals. Listing with friends is loyal, but is it the best business decision? Do they have the tools and will you hold their feet to the fire when the results are not what you need? (Client’s name), you know the difference superstars make on a team. Let’s go for the win. It’s not so much whether my coaching client obtained the listing, but he needed to stand up for a profitable, long term business. Never sell yourself short to get business. You will never be happy. In these situations, I cannot guarantee an outcome, but I can guarantee the client will never forget you. You are planting seeds of discontentment with the small amount of money saved in a commission compared to not achieving their goal. Whether he/she admits it or not, he/she will have respect for you. Do more lead generation so you won’t have to work so hard on leads like these. 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. 16
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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 18
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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. 20
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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© 2014, Dirk Zeller. All rights reserved.
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Productivity Killers: 4 Ways to Make Better Use of Your Working Hours
Even on the busiest of days, it can be hard not to get distracted by social media, smartphones, chatty colleagues, or personal to-do list items. So how do you keep your professional blinders on and power through your tasks with efficiency? Practice these four tips and witness your productivity skyrocket—easing stress and bringing renewed energy to your daily duties. 22
1. Create a sense of peace and quiet The office may not be your idea of a tranquil oasis, but for most, focus requires quiet and calm to best lend attention to the task at hand. If you find yourself seated next to talkative coworkers or in the center of a bustling office atrium, consider noise can-
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celing headphones, earplugs, or carving out an empty conference room for your work day. Turning the volume down creates fewer chances for disruption, allowing you to make the best use of your time.
4.Take your smartphone off the table
2. Organize your workspace A messy work area breeds anxiety and distraction, but a clean and organized desk inspires efficiency. If you’ve got a busy day ahead, take fifteen minutes and organize your workspace: gather miscellaneous papers into their proper place, dispose of out-of-date or unnecessary documents, or give your keyboard a dusting. Not only does cleaning and organizing your workspace prepare you for the work ahead, it also helps you transition to a productive, goal-oriented mindset.
3.Create a goal-oriented reward system Coffee breaks, coworker catch-up, and social media check-ins tend to break up our workflow on an hourly basis. Instead of trying to go cold turkey on these workplace routines, reframe them as rewards. For every to-do list item you complete, allow yourself a fives minute treat, whether that’s a fresh cup of coffee or a walk around the block. Not only will creating a reward Top Agent Magazine
system help you stay motivated throughout the day, it will also provide you with much-needed mental breaks that actually boost long-term productivity.
The number one productivity killer in this day and age? Smartphones. With access to endless social media portals, web browsing, text conversations, and games, smartphones are one-stop shops for distractions. While you may not want to delete apps from your phone, try leaving your smartphone in a locked desk drawer until your next break, or safely in your car. By simply putting your smartphone out of your line of sight, the impulse to distract yourself is muted. Even though technology and the modern office create ample opportunity for distraction, making these few small adjustments can go a long way in safeguarding your productivity. After all, a productive day allows you to enjoy your time at home and outside the office, without the worry of incomplete tasks and looming deadlines darkening your day. Keep these productivity tricks in mind as you mount your daily to-do list and you’ll be thanking yourself tomorrow.
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