Center for REALTOR® Development

Teams are an increasingly popular method of serving clients in the purchase and sale of a home. Today’s episode is all about teamwork in real estate — whether you want to build a team, join a team, or communicate better with a team. Our guest, Matthew Rathbun, comes with firsthand experience from his own firm of setting up agents with success for team building. Monica and Matthew will discuss what a healthy team looks like, how you can start building a team well, and for new agents, helping them understand what they need from the team, what they are getting from the team, and what they need to provide for that team.

After years of observing teams and being a part of them himself, Matthew has learned what works with teams and what doesn’t. Most states have neglected the team concept, which has left brokers and REALTORS® to figure out things on their own. A number one failure is that teams become an agent and an assistant and they get to a point where they just start throwing people together as a team, rather than sitting down and making a plan for moving forward. We typically default to what we do best, and when you look for people to fill out your team, you want someone whose skills and traits are compatible with yours, but not exactly the same.

Another thing to consider as a team leader is the element of training. When you’re ready to hire or bring someone new on your team, you have to have a plan to allow a period of time to train them to be able to do what you want them to do as part of your team. If you’re going to invest time to train this person, you want to make sure they’re the right person. Matthew suggests using online personality tests and a two-system interview process. It’s also important to find a firm and environment that supports teams — not just a place to work, but things like technologies, policies, and training. Business planning is a huge part of starting a team. You need to consider what a new member of your team will need, and there needs to be a conscious effort about hiring people that the company can support.

Teams are the future because the job is getting harder — it’s almost impossible for one person to do it all on their own without dropping the ball on something. This allows sharing of responsibilities, but it is important to make sure you have a plan before you jump into it. As instructors, our job is to help people have healthy teams. A very healthy team is a great work environment.

What about lead generation in teams? A team should provide new members with some leads, with the expectation that they eventually start to generate their own business. There should be a balance between personal production and supporting the team. As a team leader, it’s also important to be aware that you are potentially training people to go out and start their own teams or move on to new teams. While they are on your team though, it’s important to train them to be the best they can be.

When it comes to administrative help, Matthew recommends using any of the virtual assistant programs out there in the beginning. The virtual assistant sites probably have someone with experience and ideas that could work for you. You can potentially save money by hiring a virtual assistant at a lower hourly rate. This is probably not a long-term solution but can be good in the interim until you find and can afford the right person to bring on.

When you get to the point when you’re ready to hire someone, you want to have a written job description. You need to have something to hold them accountable for and they need to have something to measure up to. Every team is unique in what positions they need to have filled but it all needs to be written out, from a practical standpoint, as well as for legal purposes.

Setting up expectations is one of the most important parts of setting up a successful relationship. This helps establish the relationship with you and your team members, as well as among your team. If you look like you have your stuff together, you will have more success finding a good fit for you. A good team needs to have structure and vision to help itself grow.

With a huge influx of newer and younger agents, they might be expecting education and mentoring. As a team leader, you are taking responsibility for people’s livelihoods. Once you find the right person, you have to intentionally spend time with them cloning your good skills, as well as sharing where you’ve made mistakes so they don’t do the same thing.

With large teams, communication can be very difficult, both within the team and between the team and the client. Having a good rapport with the buyer agent and the client is crucial to continued business. A big part of the systemization of your team should be focused on how you can communicate literally, clearly, and well. If you have a transaction coordinator, they should be introduced early on to the client and the opposing agent of the team and all communication should funnel through one person (or one or two people).

There are different levels of rules for every state and also every broker. Matthew and Monica discuss some of the legal aspects of agency. The broker needs to make decisions about dual-agency and make sure the client signs an agreement if that’s the case. Team Leaders should ensure that listing specialists are not sharing more information than they have to with buyer specialists. Any potential conflict of interest should be disclosed. If you think of the team as an entity, it makes it much easier to make the rest of those decisions.

Financial splits are specific to your team, how many people, and what they’re doing. Every situation is different, and in many cases states do not allow agents to pay other agents, so the broker becomes responsible for this. You have to start with what the broker permits. If you’re starting a team, there should be a higher percentage of compensation for agent-generated business than team-generated business. A portion of everything that comes in should go into an account for fees. It’s important that the team leaders not go crazy with high splits.

What should a new agent be looking for in joining a team? You have to look at the total value package of the relationship. The commission itself isn’t the only number you should look at. Matthew’s opinion is that new agents shouldn’t start off on a team. Team members should be looking for people who are a doing a moderate amount of production and could benefit from the training of the team, both for themselves and the team as a whole. It is a great opportunity for a new agent to join a team if the broker isn’t providing what a team leader can.

There is a new C-RETS designation — it’s now one day instead of two days. In cutting out a day, they’ve amped it up a notch; there are some fundamental things that they have to cover, but they are looking for people who are clear-minded. The class is focused on the business mindset of a team leader and practical things a team leader should know how to do.

In closing, the team concept is incredibly important for risk aversion issues as well as increasing your production. But you have to do it well. This requires training and learning from the successes and failures of others. Look for materials outside of the industry. You’re an entrepreneur! Treat it like a business and get a mentor to help you.

Guest Links:

The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It, by Michael E. Gerber

Matthew’s Website

LinkedIn: Linkedin.com/in/matthewrathbun1

Twitter: Twitter.com/mattrathbun

Facebook: Facebook.com/mattrathbun

Website: TheAgentTrainer.com

Additional Links: 

Center for REALTOR® Development — OnlineLearning.REALTOR®

— Use coupon code PODCAST to get 15% any regularly priced course

Live Designation Classes — Training4RE.com

Certified Real Estate Team Specialist

Host Information:

Monica Neubauer

Speaker/Podcaster/REALTOR®

[email protected]

FuntentionalLiving.com

FranklinTNBlog.com

As society becomes more forward-thinking, smart technology is moving into our homes. Todays’ guest, Chad Curry, joins Monica to talk about smart home technology and other pieces of technology that affect REALTORS® and homeowners. In addition to discussing what types of technology are emerging, Chad shares several resources that can help inform consumers about how people are using smart home technology and what benefits there are.

Chad works as the Managing Director of the Center of REALTOR® Technology. Founded in 2001, its initial purpose was to help improve data standards in the real estate industry. Since he took over in 2011, they’ve started looking at emerging technology, and what smart home technology means for consumers, as well as autonomous vehicles and artificial intelligence. They have a lab where people can come see what they’re doing and are involved in outreach.

There are several different types of smart home technologies — some of these include smart hubs, thermostats, smart locks, cameras, and air-quality systems. You can visit their website (see below) for handouts for these different verticals, that describe the pros and cons as well as how they work and why people are interested in them. For REALTORS®, you can share these with your clients as well.

Smart technology really started to grow with the Nest thermostat. It has a lot of features that allow you to save energy. Currently, they test about 80 different devices in their lab. Many people consider these devices to be for younger buyers, but really they are for all sorts of consumers. At the Center for REALTOR® Technology, they are looking at partnering with the University of Illinois to create a smart home for people who want to age in the place. The main goal is home energy management, and also creating universal design systems that make it easier to access things in the house. This includes voice activation that could control the lights and the locks.

Devices like Amazon Echo and Google Home both have numerous business they partner with and are compatible with several devices. Right now these devices communicate one-way, but they do allow for a lot of control and a lot of freedom. The instant connection with the voice activation can also save time by cutting out micro-interactions and prevent distraction (if you aren’t having to use your phone to access them).

Some devices may stay with the house or may move with the individuals. They are usually so connected with a person’s phone, but they can be reset if the homeowner wants to leave them behind. CRT has developed an application called Smart Home Checklist that allows you to walk through a house with a client with smart home technology and identify which devices they want to leave behind, and then they can use the list to know which devices they need to reset for the next homeowner.

REALTORS® need to remember that even if you are not using the products, your clients could potentially be using them. REALTORS® need to be knowledgeable about them because they are part of the transactions. You have to think about what’s important to your buyers in owning a new home, and Chad provides some resources that can help facilitate these conversations with your clients.

When it comes to privacy, we need to think about what privacy means for us. Some people aren’t comfortable with having the voice assistant devices in their homes. Some of these have mute buttons that deactivate the microphone when it’s on so it won’t pick up what you’re saying. Letting some data be accessible to companies can provide a benefit to the consumer. Chad shares some examples of what he benefits from when he travels. There are some digital identify projects being worked on that may provide us more control over our online data. When it comes to showing a house that has smart home technology, you want to be aware and talk about this with a potential buyer.

Monica and Chad talk about the smart city movement, and examples in Chicago and Toronto where projects are monitoring things like air quality, temperature, and humidity, as well as foot traffic and car traffic. There are matters of privacy, but Chad explains some of the measures in place to protect privacy. The data collected from these projects is valuable for commercial real estate, as well as for urban planners.

Insurance and utility companies often offer rebates or discounts for installing smart devices in the home. The Center for Real Estate Technology is working the Department of Energy on a project called the Home Energy Information Accelerator. This provides data sort of like a Carfax for the home. Having this data allows you to take action on improving the efficiency of the home, and also allows you to have the history of that data that you can share with potential buyers to increase the value of the home.

There are some other smaller smart home technologies available. There are air quality sensors, and Chad talks about some sensors they are working to develop that will collect data for the whole house on how the home performs. Chad also talks about the Roomba vacuums and how they learned that as they move around the room they create a map of that space. On the subject of robots, there are certain tasks that computers and robots can take over, and in some cases, that’s fine because it allows us to focus on other areas of work that focus on elevating the work itself. The in-person interaction remains incredibly important for the emotional aspects of buying a house.

Blockchain is usually presented in the context of bitcoin or other crypto-currency. It is a type of database where there is a historical database of things that are changed, rather than things being overwritten. Chad talks about how this database can benefit REALTORS® by making transaction time more efficient. Having a higher degree of visibility and transparency is only good for the industry. Blockchain may also allow people to be assigned digital IDs, which will allow websites to ask permission to access different parts of data.

Self-driving cars are another way of the future. An average car owner uses their car about 5% of the time they own the vehicle. This allows a lot of downtime for the vehicles to be parked somewhere, and in some cases that might cost a lot of money. With autonomous vehicles, your car could take you to work and then work as an Uber or something before it comes back and picks you up from work. They may also make driving safer and decrease traffic and parking violations.

People are worried about the future of work, but Chad thinks it’s not something to be worried about. The type of work may change, but there will likely be a lot of opportunities to work with our hands. Maker spaces are becoming more popular, where people have access to things they wouldn’t normally have for themselves. This access to tools can help people create things they wouldn’t otherwise be able to create. 

Additional Links:

Center for REALTOR® Technology Website

Smart Home Simplified

Smart Home Checklist

Smart Home Glossary

Smart Home FAQ

CRT Ledger

Recast City

Netatmo Cameras

Center for REALTOR® Development – OnlineLearning.REALTOR®

Live Designation Classes – Training4RE.com

2018 Classes:

Two-Hour E-Learning, or Eight-Hour Classroom class on Smart Home Technology

Guest Bio:

The Center for REALTOR® Technology is a multi-disciplinary technology research and development group at NAR. We investigate emerging technologies and determine how they would be used to support REALTORS®. CRT also offers consultation to members on their web properties and strategies for improving their technological acumen. Check our work out at https://crtlabs.org.

* Research, write and develop white papers and thought pieces on various technology topics and how they affect the future of real estate.

* Designed the layout, charts, and graphs for the annual Technology Survey.

* Overall lead in initial implementation of http://www.REALTOR®.org using latest technologies, such as Responsive Web Design, HTML5/CSS3, and jQuery in 2011.

* Collaborate with multiple departments, senior management, CEO, and association members to improve technologies and promote innovation.

* Present to audiences ranging from state and local associations to crowds of 600+ at national industry events.

* Board member of the Real Estate Standards Organization, the standards body that oversees the RETS standard as well as others.

* Team Lead for the Case Studies Group in the newly formed Internet of Things Council.

* Member of Illinois Technology Association.

Host Information:

Monica Neubauer

Speaker/Podcaster/REALTOR®

[email protected]

FuntentionalLiving.com

FranklinTNBlog.com

Successful business planning comes when we develop the habits to utilize them. There are three guests joining Monica on the show today, to talk about how they’ve been successful with their business planning. Misty Woodford has been in real estate for about 10 years and formerly owned her own brokerage. She no longer owns her firm and now works with Benchmark Realty and is actively selling. Trish Myatt has been in real estate for nearly 14 years, and right from the start got into a good system and long-term planning. Barry Owen was in the Army for 12 years and has been in real estate for 24 years. He owns his own firm and teaches and still does some selling but mostly runs the company.

Why is business planning so important? For Misty, the motto that stuck with her is “failing to plan is planning to fail.” Having a plan allows her to continue to move forward with tasks, following the plan like a roadmap. It is a stress reliever for Trish, and having a plan allows her to have something to come back to when things start getting crazy. Barry uses business planning because it gives him a place to go — it boils down to whether what he’s doing right this minute is contributing to where he wants to go.

When making her business plan, Trish reflects on what worked for the past year and what she wants to carry over and tries to look ahead to see where the market is going, to see if there are any proactive changes that need to be made. Barry starts business planning for the next year on the first day of the fourth quarter. He tries to think of three big priorities to hit in the next year and uses the remaining time in the quarter before the new year to figure out how he’s going to turn those goals into practical steps he can achieve. Misty sets aside three days towards the end of the calendar and sets three business, personal, and spiritual goals. By November she likes to have what the plan will look like for the next year.

It’s important to schedule in family time and time away from the business as well, as well as any marketing events you want to do for your clients. Trish talks about her “pumpkin run” and how she uses time to show appreciation to her clients.

Making time can be difficult, but you just have to do it. Planning it as part of your day and guaranteeing you will do it is vital for making sure the business is supporting the clients. Barry does this first thing in the morning each day, so he doesn’t have to think twice about anything during the day. This makes it easier to deal with obstacles as well. Clients often understand that you need time away from them to best help serve them when you are helping them. Misty turns her phone off at a certain time each night.

When working on your plans, it’s important to consider how much business you want to do, your finances, and take a look at what systems you have that help you focus forward. Misty lays out what she has to have, what would be nice to have, and what is the dream level. Knowing what is enough in all those areas is an important start. Also understanding what you can delegate or refer to other people can help redefine success for you and your business plan. Barry’s plan is about moving forward every single day towards a better quality of life.

Financial planning is incredibly important as part of your business plan. Trish focuses on the synergy between business purchases and how they come back to reward her. Sometimes investing in something personally can help you focus on making smart business decisions. Misty talks about giving yourself permission to know what you thrive on and allocating resources for the other things. Spending your money on the right things is also important to make sure your business is sustainable. Barry ended up outsourcing for some positions he needed to be filled and it’s been a huge help to his business.

Barry, Trish, and Misty talk about some of the software and technology they are using in their businesses. Some of the things they are using are Commissions Inc, Brokerment, Top Producer, QuickBooks, and Wise Agent.

The panel shares some tips for keeping up with their businesses. Trish uses the checklists in Top Producer to follow up with clients and maintain to-do lists for each day. Misty also utilizes checklists but she uses the Wise Agent program to help manage transactions. Members of the panel also still use paper planners, as well as Gmail and Barry uses Google Drive as a backup. Having these systems is beneficial, but only if you have the right habits to utilize them! Having an accountability partner is very useful for getting the most out of systems and making sure you’re getting done what you’ve said you’re going to do.

Barry’s final closing thoughts are about the idea of 80/20 — 20% is the vital few or the stuff that must be done and 80% is everything else. If someone wants to succeed, they have to know who and what the 20% are. This can help prioritize your projects and organize your day.

Trish has brought some of her customer service background to her real estate business. She uses her systems to manage customer information so she can recognize their house anniversaries, birthdays, and annual reviews. For people who aren’t too high tech, you can still grow a big and healthy business.

For Misty, the key to making business planning and time management work was knowing who she was as a person and knowing what she needed the systems to do for her. Finding what worked for her is what made her do it.

Education is a huge help to stay focused on your business and provide creative ideas. It doesn’t have to be real estate-centric. You can also learn from peers that you admire — don’t be afraid to ask them for tips!

Monica shares three final tips for successful business planning. The first is setting an appointment: set an appointment with yourself to do your planning, then actually go to the appointment — make it a priority! After you have met with yourself and done your planning, meet with a friend who can hold you accountable to stick to do you plan. The second tip is to choose one new system that can help you improve your business next year. Her third tip is to find or pick a new source of education for yourself. Is there an area of your business where you are weak? Find a source of education that will help you grow in that area.

Additional Links:

Center for REALTOR® Development – OnlineLearning.REALTOR

Live Designation Classes – Training4RE.com

Guest Links:

Misty’s Links:

MistyWoodford.com

Facebook.com/mistywoodfordrealtor

Facebook.com/MistyDWoodford

Trish’s Links:

NashvilleOnlineRealEstate.com

Barry’s Links:

BarryOwensBlog.com

ParetoRealty.com

Guest Bios:

Misty Woodford

Misty Woodford is a 3rd generation REALTOR®, currently serving as a REALTOR®, trainer, teacher, and coach in the Middle Tennessee real estate market. Misty’s primary focus is residential resales and buyers working with new construction in the Williamson County and immediate surrounding areas. Licensed in TN for 10 years, Misty owned her own brokerage for the first 8.5 years of her career. Needing a life focus change, she closed up shop and joined Benchmark Realty in February 2016. When Misty isn’t selling or teaching, you can find her chasing her two young children around Franklin as they pursue their wildest dreams.

Trish Myatt

Trish Myatt is a Broker with Benchmark Realty in the Greater Nashville area. A native of the region, Trish has a wide knowledge of where the market has been and pays attention to where it is heading. With 13 years in the business, she holds the ABR, CRS, SRES, and ASP designations and serves as a Director for both her local and state associations. She is excited to serve on her first NAR committee in 2018. A long-time supporter of RPAC at the Golden R level, Trish understands the importance of staying on top of local, state, and national legislation that impacts her clients. Ask her about the annual “Pumpkin Run” and you'll learn how she cultivates her strictly repeat and referral business.

Barry Owen

Barry Owen is a Broker/Owner of the firm Pareto Realty in Nashville, TN. The Pareto Principle is the 80/20 rule — The Vital Few — and Barry models his life and business after this model, focusing on what he considers to be the most important items every day first. His career started in the Army as an Engineer. He went on to be a consultant in the field of Organizational Development and Transformation. In 1993, he started his career in Residential Real Estate. During that time he has been a founding member of several real estate offices, Principal Broker, and Career Development Coach. He has served on the Greater Nashville REALTORS® Board as a Board Member, Committee Member, and Ombudsman. He loves to blog, coach and train. His program to help agents live High-Performance Lives is called, “The Life Rhythm Way.”

Host Information:

Monica Neubauer

Speaker/Podcaster/Realtor

[email protected]

FuntentionalLiving.com

FranklinTNBlog.com

Running your business like a business is crucial for getting value for your business. Today’s episode is the first of two episodes that touch on the business planning aspects of real estate. As REALTORS®, it is crucial to plan and be wise in the real estate business and think of yourself as a business person. Mark Given joins Monica today to talk about a number of things that should become part of your business plan: finding a mentor, how to foster a good broker relationship, the cost of training (or not having training) in several areas, as well as niche positions in the market and keeping up with your past clients. They also discuss aspects of building a team and being proactive in your business.

When an agent is starting a real estate business, there is a lot to consider in getting started. One big aspect to consider is the cost of getting into the business; not only getting the license, but also membership fees, marketing expenses, and the out-of-pocket expenses until your business can sustain itself and support you.

One of the first things a new agent has to do is find a brokerage firm. You need to find a good fit with your broker, so they can help nurture you and gain momentum. Looking for a brokerage firm that has potential mentors, a good educational program, and a culture that connects with who you are. Looking for mentors both within and outside the company is important in getting honest answers to some important questions. Learning to ask good questions is a huge part of the real estate industry.

Understanding the money aspect of real estate is important in showing a profit and actually making money in your business. You likely won’t be closing on any deals right away, and you have to budget for the periods of time that you don’t have any revenue. Some expenses include gas, marketing, MLS and association fees, and other additional business fees. Taking a class that talks about the cost of running your business is a great idea for new agents — you don’t want surprises that might cause stress that would prevent you from performing at your highest level. You also don’t want to get ahead of yourself; don’t spend it before you make it!

Training should be part of your business plan as well. Not only for new agents — there is always new information to be learned. It is very beneficial to do more training besides what is required for your continuing education. This can help grow your own confidence, and make your business more successful.

Most agents run their real estate business as a generalist. There are plenty of agents who succeed running their business this way, but Mark has found that agents that take the time to specialize in a given niche often become the “go-to” person for that niche. If you’re going to run your business like a business, it’s in becoming really good at some part of a business that you become recognized as the best person for that part.

Keeping up with your clients after a sale is a great source of ongoing business. Many of the most content REALTORS® are providing service for clients they have worked with before. When thinking about where business is going to come from in your marketing, think about clients you have worked with before and had a good experience with. Consumers should have an ideal agent, and agents should also have an ideal consumer. Making an effort to keep in touch with previous clients is not rocket science, it’s people science. Part of building your business properly is to show both competence and care.

The team model has been making a rise in the real estate industry. When you have a team, you have to think about the financial side and compensation, as well as the skill side. You want to have a well-rounded group of people with different abilities and skills. It is important to communicate and hire in a way that matches up the right people together in a team. These things are important to consider before you start or join a team — make a business plan before jumping into it. Another thing to consider as you are building your team is preparing someone who is going to take over for you when you’re ready to move on. Build your business so it’s a sellable business and also one that current clients will continue to use even when you’re gone.

It is crucial for people running a real estate business to have better systems. Some of these systems include contact management systems or systems that track your business’s profit. Your management systems are only as good as the information you put in them. You need to have some systems in place to make sure you’re doing things in a timely manner, and following up with your clients. There are many companies that already have these systems in place — take advantage of them! Start your day by making a plan for what you need to get done that day.

One final aspect is being proactive in your business. When you’re proactive in your communication, both you and your clients will have more peace. Running a business is about having a plan for how you’re going to spend your money, how you’re going to get trained, and how you’re going to give great customer service to your clients.

There was a lot of information covered in today’s episode, and Mark’s advice is to take one area and start focusing on what you can do to improve in that area. Even though they seem simple, the more focused and organized you get in these aspects, the better our businesses are going to run. Building your business like a business will give it real value.

Guest Links:

The 7 Habits of Highly Effective People®, by Steven R. Covey

The On-Purpose Person: Making Your Life Make Sense, by Kevin W. McCarthy

The On-Purpose Business Person: Doing More of What You Do Best More Profitably, by Kevin W. McCarthy

Mark’s Website

[email protected]

Books coming out in 2018:

Trust Based Leadership

Trust Based Success

Trust Based Selling

Additional links:

Visit the Center for REALTOR® Development Online Learning Platform:

Onlinelearning.REALTOR® Coupon Code: Podcast

Find a Live Classroom Designation or Certification Class at Training4RE.com

[email protected]

Center for REALTOR® Development

NAR Conference

Guest Bio:

After attending The Ohio State University and graduating from Elon College, Mark spent 20 years as CEO of a multi-state retail sales and rental company that grew to 47 locations. He spent the next 18 years as a REALTOR®, volunteer, and community leader. All along the way, Mark has invested tens of thousands of hours speaking and teaching the Trust Based Philosophy systems, leadership skills, sales skills and personal master systems with companies and organizations just like yours.

Mark has been teaching real estate courses nationally since 2004. He has trained or spoken in 46 states for mega, large, and small private companies for nearly a hundred associations, and at the NATIONAL ASSOCIATION OF REALTORS® annual Convention and Mid-Year Meetings.

He was twice the President of Roanoke Valley Lake Gaston Board of REALTORS®, President of the North Carolina CRS Chapter, served on the NRA Professional Development Committee and has served on many additional committees for the NAR, the North Carolina Association of REALTORS® and his local board.

Mark has been honored as REALTOR® of the Year for his local board and NC CRS of the Year as well as many other REALTOR® and non-REALTOR® honors.

In addition to his speaking and teaching career, Mark is a prolific author; evidenced by his Trust Based Philosophy book series and his Amazon #1 Best Selling book, Finding My Why: Ernie’s Journey. Mark has also co-written four other books and writes his weekly blog, Mark’s Minute, which is read by thousands of people every week.

Host Information:

Monica Neubauer

Speaker/Podcaster/Realtor

[email protected]

FuntentionalLiving.com

FranklinTNBlog.com

Staging is a very important aspect of getting your house ready to put on the market. While the home-staging professional can come help and bring their wisdom, every home seller is a stager. In today’s episode, Monica and Helen Bartlett will discuss some inexpensive ways to stage your home so it’s ready for buyers, as well as virtual staging and some other aspects of staging and the processes involved.

Home staging is preparing your house to go on the market so that it sells quickly and gets the highest dollar by appealing to the most number of people. Some examples of staging are painting, cleaning, making repairs, or updating your home — the goal is to create a warm and welcoming house that will capture a buyer’s attention. Buyers want to see how they can live in that house.

Home staging is more than just decorating. The difference between the two is a house versus a lifestyle. Staging allows the buyer to focus on the house and their emotional and psychological connection to it. It is especially important to stage a vacant house because when there’s nothing else to look at, the buyer may start to focus on the negative things. Once a buyer is connected to a house, they are willing to pay more for it, and a staged house may sell more quickly.

When a professional stager comes into a house that’s occupied and needs attention, one of the easier ways to highlight a home is to “edit” existing pieces of the house and de-clutter the house of things that can make the space feel outdated. Painting and updating the light fixtures are two of the least expensive ways to make a home seem relevant. These types of updates can make a home feel move-in ready, and when a home feels move-in ready for a buyer, they are willing to pay more.

What are some of the types of ways a stager can bring value to a transaction? They bring their wisdom and experience to help pick good paint colors or appropriate light fixtures. A first consultation might be getting the feel of the space and setting a plan for staging, and then another consultation might be helping the seller move things around.

Everyone selling their home should at least have a stager consultation. In a consultation, a stager can give advice to a homeowner about things to put away. An hour-long consultation could lead to value in the thousands of dollars and runs at a reasonable rate. For REALTORS®, you can make a consultation part of your business model, especially if you don’t particularly have an eye for decorating.

When Helen is getting people ready for staging, her advice is to take out things they don’t want in their next house, personal pictures that could distract the buyer, or collections. Everything left in the room should serve a purpose. There are also things that should be taken out to prevent them from being broken or stolen.

Vacant staging is a bit more involved, but it’s equally important for helping a buyer to connect with a house. Adding furniture will allow buyers to see how they might utilize the space for the stuff they have and their lifestyle. There is a lot of upfront work involved in vacant staging, including what needs to be done to prepare for  the staging days and then getting the inventory back out after it sells.

Staging usually costs anywhere from .5% - 3% of the list price, depending on where you are in the country.Typically, a staged home will net anywhere from 7% - 10% more than an unstaged home, which will likely more than cover the staging cost. The home will also likely sell more quickly, which will save you money on holding costs.

Every home can benefit from some level of staging. Though it is a seller’s market in many places in the country right now, with a little bit of staging, you can get multiple offers or even over asking price.

As a REALTOR®, having a stager as part of your team can be beneficial for both you and the seller. You will be appealing as an agent if staging is something you can offer your seller, and the stager can also help to share their best advice for the sellers, and that can help preserve the relationship between seller and REALTOR®. Home stagers are on the same team as the real estate agent, because it’s about making a successful transaction for the REALTOR® and the homeowner.

With the rise HGTV and DIY, many people feel that they either don’t need to make any changes to their house or feel that they can stage it themselves. While the latter may be true, many buyers are not looking for houses to which they would have to make updates. They often don’t have the money or the time — there aren’t as many people that are into fixing up houses as there used to be.

When a house is competing with new construction, staging becomes even more important. While being the first homeowner of a house is exciting, many existing houses may have more amenities for the same price. Staging can help get your house ready to compete with new construction homes.

Virtual staging is when someone is working digitally online, and they add furnishings or different paint colors to the pictures of the house. Personally and professionally, Helen feels like virtual staging could be good for new construction plans. For existing homes, virtual staging may not be the best route to go. As a buyer, when you go to see a house that was virtually staged, you may feel like you weren’t shown what was represented through the virtual staging, because it may not always be an accurate representation.

Helen’s final advice on staging: Sometimes it can be hard as a homeowner to have a home stager come into your home and tell you the things you should change. As homeowners, it’s important to keep an open mind, because, in the long run, it’s a service that will help them. Everyone benefits from successful staging — the seller benefits from a quick sale at top dollar; the buyer benefits because they’re excited about making the space work for their lifestyle; and the real estate agent benefits from the referral business that could come from the successful transaction.

Guest Links:

Links for Helen Bartlett:

Website: KansasCityHomeStagers.com

Book: Home Staging — The Power That Sells Real Estate, by Helen Bartlett

Facebook:  Facebook.com/kansascityhomestagers

Twitter: @refinedinterior

Instagram: @Kansascityhomestager

LinkedIn: Helen Bartlett

Email: [email protected]

Additional Links:

Visit the Center for Realtor Development Online Learning Platform:

Onlinelearning.REALTOR® Coupon Code: Podcast

Find a Live Classroom Designation or Certification Class at Training4RE.com

[email protected]

Center for REALTOR® Development

NAR Conference

Host Information:

Monica Neubauer

Speaker/Podcaster/Realtor

[email protected]

FuntentionalLiving.com

FranklinTNBlog.com

Negotiations are a crucial part of all real estate transactions. Improving your skills in negotiating is the topic for better serving your clients this month. Darren Kittleson joins Monica to define what a win-win transaction is, and how to achieve one. As a real estate agent, it’s important to react professionally during a transaction, so your clients are put in the best situation. They will discuss creative ways to negotiate more effectively, so in the end, there is a favorable outcome for your client.

We negotiate far more often in our lives than we realize. As kids, this is something many people do naturally, but somewhere along the line we lose that natural ability. Approaching negotiation with the attitude of a child may lead to surprising outcomes, and allows you to hone your skills as a professional negotiator. Just ask — the worst thing that can happen is someone says no. Darren suggests negotiating on a daily basis to practice the skill, so it’s there when you need it in a real estate transaction.

In almost every culture in the world, there is a negotiation expectation that is unique to that culture and in the United States, it is not a familiar place. From a real estate perspective, taking the time to learn strategies for negotiation is one of the value proposition items that can increase your worth as an agent.  Your negotiating skills could potentially yield a better transaction position on behalf of your client, and this can really help to set you apart in your market. 

There are a number of places in a real estate transaction — as well as in the relationships between an agent and a client — that provide an opportunity for negotiation. Some of these places include: during the interview to be a client’s listing agent, negotiating the listing price, negotiating the contract and finding out the client’s motivation. Ideally there’s negotiation happening at almost every step of the transaction.

Negotiations are not always about the price. There are other terms and conditions that can be negotiated to get the best outcome for your client. Some of these include the timing of the sale, and making sure the right offer will close or appraise. Darren refers to these as strategies of the transaction — and urges you to make sure that, as a REALTOR®,  you consider all the factors that could help your client.

Most people want to have a win-win situation in real estate transactions. While there are some agents that think they have to have a win-lose outcome, everyone will benefit for future transactions by striving for a win-win. This starts by setting expectations with the client — letting them know that your goal is to negotiate a win-win so they understand your discussions and the decisions you make together. One of the best strategies that an agent has is to get in touch with the agent on the other side before the transaction gets started; they may be able to provide information or terms and conditions that would be helpful to know up front. Communicating voice-to-voice will be more effective in setting up the relationship for a win-win transaction. Knowing everyone’s key terms up front is helpful, because while they could be a non-issue on your side, they could be the selling point that makes it a win for the other side.

One of the keys in negotiating is to recognize that everybody will have their own perception coming into it, and that is their reality. As an agent, you have to work in the realm of what they believe to be true. There has to be an understanding that as an agent you will advocate for your client, but still be friendly with the other party. Operating like this leads to better outcomes for everyone. When it comes to emotion, you need to stay level-headed during negotiations, though it may be an emotional experience for your clients. Don’t let negative emotions take over and become a factor. Monica works to recognize the personality types of the parties involved, and tries to come up with a decision that is acceptable to all.

As a consumer, if you express your motivation to the agent, that helps the agent guide the transaction to get what you are looking for. As an agent, you have to ask the right questions to figure out what is important to the client. It has likely been several years since they were last having this conversation, and leading questions help agents get the desired terms. We do the customer a disservice if we don’t dig deep and figure out what’s really important to them. Revisit motivation each time there is a conversation about the sale, to keep up with any changes that might affect the timeline.

How does technology play into real estate transactions? Darren discusses the effectiveness in communication methods.  He references a study that showed that the greatest effectiveness in expression of feeling and intent comes from body language and tonality — aspects you can only gauge in a face-to-face or voice-to-voice interaction. With text or email, there is an archive of what was said or what exchanges were made. This can be a benefit or a disadvantage depending on the situation. With access to only the words, you may not get the full meaning behind the message.

As agents it’s important to be involved with other agents in your market. Building connections and rapport with other real estate agents can help get better outcomes for both sets of clients.

Monica talks about the book Getting to Yes. This book recommends that in order to resolve differences, you have to separate the people from the problem. This goes back to recognizing who the professionals are in the transaction, and removing the emotion.  When agents are driven by emotion, the problem and the people get intertwined. From the beginning of the transaction, it has to be about the issues rather than the emotion — both when communicating with the other side, and with your own client.

Educate your clients right from the start! Proactively setting the stage for  negotiations from the beginning can make a transaction much smoother, because people will know what to expect. The education process should continue throughout the transaction, and it’s important to take the opportunity to have teachable moments. As agents, you can be more effective if your client is educated and aware of what is going on in the negotiation. This can help grow your own business, if your clients refer you to their friends or family.

Think outside the box for creative negotiations. Monica describes a situation in which creative concessions were made to improve the value of the house. If you can’t bring the buyer and seller to an agreement on one aspect, it’s important for agents to think about alternatives that could solve the problems to get everyone to agree. This makes for a better emotional experience for the client, and could potentially lead to greater earnings or savings, depending on the situation.

Darren teaches a class called The Real Estate Negotiation Expert that is a certification created back in 2016 by the Real Estate Business Institute. It seeks to fill the gap in the skillset around negotiations. This two-day certification course teaches strategies, techniques, and planning, and also provides opportunities to try these out in different negotiation situations. By improving this skillset, you increase the opportunity to better serve your client as well as grow your business.

Darren’s final thoughts: For real estate agents - your becoming a better negotiator really is an opportunity to increase revenue for your business. For consumers - a skilled negotiator in your corner will probably help you get more money (or the terms and conditions you want) out of a deal, as well.

Guest Links:

Darren’s Website: DarrenKittleson.com

Education Resources:

Training4RE.com

Center for Real Estate Development online learning: onlinelearning.REALTOR®

Getting to Yes, a book by Fisher, Ury and Patton

Host Information:

Monica Neubauer

Speaker/Podcaster/Realtor

[email protected]

FuntentionalLiving.com

FranklinTNBlog.com

In today’s episode, James and Monica talk about the Green Movement in Sustainable Housing. They will discuss the ways we are seeing a growing interest in energy efficiency in homes in general, as well as the more specific ways people want to improve their way of life with varied energy methods. As REALTORS®, it is important to represent these features as the benefits that they are, and maximize the financial benefits that come with them. James will share his tips and tricks on sustainability in housing.

Green homes are becoming more mainstream, especially in the new construction world. Code has gotten more strict in creating healthier homes that use less utilities. More durable materials and features are being utilized that help to save people money. Some of these features include: tankless water heaters, CFL lighting, and Energy Star label mechanics — such as furnaces and windows. James and Monica bring up a good point that this movement is very regional; what works best depends on the conditions in that area. One thing that works regardless of region is wall systems. New construction homes have a lot more insulation and keep the air in the home condition longer.

Solar panels are one of the features that you can actually see on the house. It is a statement that in your house you stand for sustainability and leaving a greener footprint on the environment. There are different options for solar panels that REALTORS® should know about how they can add value for the seller and the buyer. There are several different ways to acquire them (lease, finance, or buy outright). Solar panels are an efficient way to create energy, but there are additional ways to save energy as well. There are a lot of different value points for going with solar, and money is just one of those. For REALTORS®, if solar panels are leased, that will need to be addressed in the contract for the house.

Most electric/energy companies will do a free or low-cost energy inspection of your house. If you’re considering making energy-efficiency or renewable energy updates to an existing home, the energy audit is the best place to start. It will tell you where your opportunities are to make these changes. These audits may also be required to get access to local rebates and incentives.

How can REALTORS® help their buyers see the value of these features in a home? As REALTORS®, you can learn what to look for, and where, on appliances, as well as certifications and guides so you can help your buyers understand what features are available, as well as what the benefits of those features are.

As sellers, you should definitely focus on the energy efficient aspects of your house. By listing energy-efficient features, or energy-star certification, you can increase the value of your home as well as the value of the neighborhood. Getting the information out there, and accurate, is a selling point as well as an education point for the marketplace and other REALTORS®. It is the job of the REALTOR® to communicate the value; REALTORS® are the key to progressing the green homes movement, specifically as existing homes start to get updated. Another important thing sellers (and REALTORS®) can do is show the savings gained from switching to energy-efficient appliances.

Some of these energy efficient features require a certain amount of higher-level explanation. As a REALTOR®, you have to be able to explain how newer technologies work, and their benefits, as well as providing information about maintenance costs and people who are able to work on them. Don’t be afraid to ask questions of your sellers as well! Their knowledge can help you learn more about the green housing movement and how to sell it. All of these help instill confidence in the buyer in terms of what they’re getting, and how it can work for them.

Working with appraisers is an aspect of the green housing movement that is still being worked out. There are local and national studies that examine the average value of a solar panel that’s owned, but there are other upgrades that aren’t as well known. James talks through some of the important points of working with appraisers, starting by talking with the lender to explain the unique features and get a competent appraiser. There is a document you can attach to the contract (Residential Green Appraiser Addendum) that can provide information about the features of the home. It is also important to document the energy savings that previous customers have enjoyed, as well as other documentation that shows the HERS ratings or energy audit and ratings, so appraisers can see the value as well. Once the appraiser approves it for the premium value, it goes to the underwriter. The underwriter also has to verify that they feel the energy features provide value as well.

What are some of the common things people are putting in existing homes to increase energy efficiency? Solar panels are a popular addition, and often spur the conversation for additional ways to create energy efficiency in homes. Insulation as well as air sealing are also some popular updates. Air sealing is one of the most important factors in keeping your home comfortable and decreasing cost of utilities. Many of the smart-home technologies help provide additional comfort and convenience — you can track and manage usage from your smart phone!

There are loan options and energy-efficient mortgages for green homes. REALTORS® can help their clients by finding lenders that have programs that help people buy older homes and include costs for energy efficient upgrades. With these mortgages, it’s a traditional home loan that lets you borrow more money so you can put in energy savings measures. To obtain these loans, you have to have the energy audit to show the current condition, as well as to determine what measures you can do. This will also help to figure out the savings and what the new value would be. An item is approved if you will save more money over the time of the mortgage than you put in. There are a few extra steps, but it’s important to know about these things to help your client. These loans create opportunity to put in features that are going to provide longevity for the house.

If you don’t have your Green Designation, it’s a great place to get educated so you’re aware of what exists out there and how you can use that information as a REALTOR®. Start small and continue to educate yourself and experience these things, so you can talk about them with your buyers. Green housing is a great opportunity to pay it forward.

Additional Links:

Visit the Online Learning Platform:

Onlinelearning.REALTOR Coupon Code: Podcast

Take a Designation or Certification Class at Training4RE.com

Green Resource Council - http://greenresourcecouncil.org

Guest Links:

James Welch Mitchell

Renewablue

http://www.thegroupinc.com/our_realtors/info/JamesMitchell/

Host Information:

Monica Neubauer

Speaker/Podcaster/Realtor

[email protected]

FuntentionalLiving.com

FranklinTNBlog.com

In the previous episode, Monica and her guest discussed short-term rentals as one of the main forms of income growth in real estate. In today’s episode, Brian Blaesser joins Monica to talk about different aspects of short term rentals. Short term rentals have become a mainstay of the tourism industry in many resort towns, and with the rise of Airbnb and VRBO.com, there has been a rise of short term rentals in all parts of the country, in all kinds of neighborhood settings. Many people are buying real estate and using it for a short term rental. Brian shares tips to know, information about what regulations you might encounter, and how agents can help their clients who are hoping to acquire short term rentals.

Brian talks about six points for people to understand when it comes to the law and the legal rights to use property. These points can help guide anyone who is interested in doing short term rentals in the way they think about their environment in the government jurisdiction they’re in.

The first point: The right to rent is a core property right. There are three things you can do with your single family residence: you can live it in, you can rent it, or you can sell it.

The second point: Renting is a residential use. With things like Airbnb where investors own multiple properties, it is starting to edge into the territory of being a business. Even if it may be, it doesn’t defeat the residential status of the property.

The third point: You have the right to use your property for productive purposes, but it can’t interfere with your neighbor’s use and enjoyment of their property, or injure the community at large. Provided the behavior on your property does not cause a private or a public nuisance, you have the right to rent.

The fourth point: Because it is a core property right, it can’t be turned into a privilege.

The fifth point: While a vacation rental may be considered a business that could be subject to a business or occupational tax, renting is still a residential use, and remains that core property ownership right.

The sixth point: There are registration and licensing schemes that some communities are proposing to inspect and monitor what people are doing with their rental properties.

One of the ways agents can help their clients who want to acquire short term rentals is to know the local, state, and federal regulations that may apply in this situation. In terms of local regulation, it is important to know what approach the community takes — usually under the land use zoning codes or non-zoning regulations. A community may only allow rentals in certain zones, or have regulations about how many rentals can be in one community. Zoning only regulates the use, not the user, so this is something to keep in mind when knowing your rights. An example of non-land use or zoning restrictions would be a licensing or registration requirement or quantitative/operation restrictions.

There are some concerns about how short term rental “businesses” are structured. If you purchase a property in a community that you are unfamiliar with, it’s important to learn the neighbor character of the area to see if it’s a viable possibility for a short term rental. You need to be aware of how much your short term rental may have an impact on the quality of life of a neighborhood.

Many Home Owners Association have covenants that were set in place before short term rentals rose in popularity. Some may have points that try to challenge having short term rentals in the neighborhoods. You should find out if there is a restriction in the documents from the start, but even if there’s not, you may be subject to them later. Despite what state law says, these documents function as a private contract and you could still fall under those restrictions.

As it stands right now, many insurance companies don’t offer homeowners insurance policies that include coverage for business-related risks or properties that are renting out regularly. There are some other types of insurance, like host protection insurance, that provides hosts with commercial liability coverage.

What happens when a rental home becomes a nuisance? There are requirements where the property owner can address third-party or tenant complaints that come in. It may be a good idea to have a local contact person (if you are off-site), but there could be situations where community members take it to some type of municipal court. This can be prevented by ensuring you understand what is acceptable in that neighborhood. Landlords can also mitigate the risk of liability by following an extensive application process.

Brian has some tools to help REALTORS® who want to be involved in this facet of the industry. REALTORS® should get involved right at the beginning in any kind of meetings or workshops that a local official establishes. As a REALTOR®, it’s important to know the ordinances of a community, and try to help shape the dialogue. The National Association of REALTORS® has a program called the Land Use Initiative Program that allows REALTORS® to be involved in the shaping/responding to legislation at the local and state level that may affect real estate interest. Brian’s team at Robinson & Cole analyzes the ordinances, and can help provide talking points and other support. They provide questions that can be asked to local attorneys to help work some of these issues out. The program is provided free of charge to members of the association.

Brian is involved in another program that focuses on being proactive in regards to regulations short term rentals, that proposes their own legislation to improve regulations on the real estate industry. The program is called Customize State Legislation. Through this program, they have been able to pass legislation that has been very helpful to the industry.

Brian encourages agents to remember that your ability to operate efficiently and effectively in your communities does depend upon the set of regulations that are in place, or may become operative if you don’t pay attention to what’s going on. Always be aware of what’s going on while you’re still doing your transactional work.

Guest Links:

Land Use Initiative Page – This is a REALTOR® Member Benefit and is only accessible to REALTOR® Members:

Nar.realtor/smart_growth.nsf/pages/landuseinithome?OpenDocument

Parties in the National Association of REALTORS® to contact about the Land Use Initiative:

Adriann Murawski

National Association of REALTORS®

Email: amurawski@REALTOR®.org

Joe Molinaro

National Association of REALTORS®

Email: jmolinaro@REALTOR®.org

Brian’s Website

Education Resources:

Online Learning Platform Use coupon code: Podcast

Guest Bio:

Brian Blaesser is a partner with Robinson & Cole LLP, and heads the real estate development practice in the firm’s Boston office. His practice includes commercial real estate development, leasing, single-family and multi-family development, environmental and renewable energy law, and land use litigation. He is in charge of Robinson & Cole’s consulting work for the National Association of REALTORS®. Along with his team, they have prepared over 1000 analyses for NAR of state and local land use plans and regulations in the U.S. and Virgin Islands. He has also written various books and articles on real estate development issues, including Discretionary Land Use Controls. 

Host Information:

Monica Neubauer

Speaker/Podcaster/Realtor

[email protected]

FuntentionalLiving.com

FranklinTNBlog.com

In today’s episode, our guest, Ron Phipps, joins Monica to talk about how to get involved in real estate investing, and to discuss the benefits and the best ways to get started. Real estate investing is a great way to build wealth and to prepare for long-term cash flow for the future. This is a great opportunity for real estate agents, investors, and the general public. In addition to the benefits, Monica and Ron talk about some of the downsides to real estate investing, and the risk involved with different kinds of units.

The big picture: Why is it so great to invest in real estate? The history of real estate investment goes all the way back to the founding fathers and their recognition of the value of private property rights. They understood that self-reliance for citizens was important, and property is a very effective tool by which the citizens can become financially self-sufficient and independent. Ron talks about the difference between the net worth of families that own property versus renting property, as well as the difference between generations, to show how real estate investing can be an effective tool for saving.

Ron and Monica talk about the importance of real estate for your overall long-term savings portfolio. Real estate has a lot of functionality beyond monetary gains, since it provides one of our basic needs. The demand will continue to be there, as we all need a place to live. Ron breaks down some numbers in terms of population size and family size to support the increase in demand. It is important to work with a real estate agent who understands the investment piece and the demographics to be successful (understanding which types of units are necessary, amount of space, etc).

Some of the benefits of real estate investing: First and foremost, it is a very good way to create wealth and also have flow. You don’t always need a lot of money to put down, up front. It is one of the few vehicles where you can leverage the money for a more expensive asset, and use money earned from rent or other expenses to pay off the mortgage. In these situations, you have appreciation and depreciation at the same time. Additionally, you have an asset that in the longer-term will appreciate. Real estate is a great way to build wealth and be able to pass it down through generations. For some, the fact that real estate is a tangible asset can provide a great sense of comfort and relief to those who invest.

What are the different motivations when picking a property? Some people opt for a property that cash flows all the time, where other people are maybe more concerned with a property being easy to manage, and not make as much. You have to decide what you’re trying to do by investing. Ron talks about the aims of international investors, as well as some different factors to consider when deciding how you are going to invest. Once you know what your end goal is, it is critical to find a REALTOR® that knows about the investment side as well as the market area.

It is also critical to be a real estate agent that knows about the investment side. The National Association of REALTORS® has come out with a course that has two focuses: the first is to encourage REALTORS® to make investments, and the second is to train them on the vocabulary of real estate investment and what strategies they can use to help their clients. The investor is a more reliable (and frequent) customer than a family looking for a house. As REALTORS®, becoming an investor can help you focus back on your core business, and can also help you be more qualified to help your clients make sound investment decisions. This includes providing your clients with a network of resources to help when problems arise, as well as discussing disadvantages with their clients.

Some of the disadvantages of investing in real estate: 1) lack of liquidity, 2) you can’t sell the property overnight, 3) there are risks and expenses, and 4) the variability of market conditions. As an investor, it is important to be aware of these things.

There are a lot of avenues for financing. Ron talks about some of these different avenues — including researching smaller entities for better lending, leveraging other properties, and using IRA money to fund investment property. Depending on where you live or where you feel comfortable investing, you can start with small numbers. Keeping your original properties can help increase your cash flow as well. Monica and Ron again talk about the importance of getting together with a professional about what goals you’re trying to accomplish, and doing due diligence to cover all your bases.

Some important things to consider with your investment property are the cost of maintenance, insurance, and current rent rates. After considering these things, if the numbers don’t work, you may want to consider moving on to a different opportunity. It is important to be disciplined about these numbers to help ensure a successful investment.

There are many opportunities for building your education in real estate investment. Ron recommends the class Building Wealth, Representing Investors, and Becoming One Yourself. This one-day course will provide resources, tools, and networking to help REALTORS® secure their future through investing. Monica suggests the Real Estate Investors Networks (REIN) — look in your local area for these networks. There are many additional opportunities in your local communities as well as within the state. Explore the different opportunities around you to see what kind of education you can find, or financial assistance. The National Association of REALTORS® is a very valuable tool for understanding different market areas and demands.

Ron’s final advice is to use common sense and engage the professionals to help you in your pursuit. Real estate is a great tool to become financial independent, but the professional advice will make the journey a lot less painful.

Guest Links:

Ron’s Websites:

www.PhippsRealty.com 

www.Phipps4m.com

NAR Education Sites & Resources:

Link to information about the class:

http://www.rebac.net/content/real-estate-investing

National Association of REALTORS®

Onlinelearning.REALTOR® - Use coupon code: podcast

[email protected]

Host Information:

Monica Neubauer

Speaker/Podcaster/REALTOR®

[email protected]

FuntentionalLiving.com

FranklinTNBlog.com

In this episode of the Center for REALTOR® Development, guests Bryan Bergjans and Juanita Charles join our host Monica to discuss several aspects of serving as a real estate agent for military personnel. This episode will cover VA loans and how they can be used, as well as what you can do as a REALTOR® to best serve your military customers. As a real estate agent working with military relocation, you never know what kind of variables you might dealing with, and our guests today talk about how to navigate them.

VA loans are really just like any other loans, but there is some work that needs to be done beforehand. You have to establish eligibility and entitlement up front; it’s beneficial to have the Certificate of Eligibility (COE) before looking for loan terms and turning in loan applications. A veteran or active duty member is eligible for a VA loan after they have completed a minimum amount of time in service, and must show eligible service and character of service to the VA. Differences in loan between active duty members and veterans is the funding fee. The funding fee can change based on whether the client as used it before, whether they were active duty or a reservist. It can also be affected by a resident’s disability.

There are some stipulations for what types of properties a VA loan can be used to buy. Active members and veterans are not allowed to use VA loans to buy rental properties, investment properties, or second homes. The loan benefit is used for primary residents only.

Bryan shares some tips for how agents can know how to better help their military clients. One of the biggest a greatest things you can do is over communicate: keep both spouses involved in the process, and know the situation for the whole family. Be mindful of the properties you are going to show them; they should be safe, secure, and sanitary. You must also consider time frame to find a place, what’s available, and how long they’re going to be there.

In the second half of the episode, Juanita Charles shares her personal experience with coming back to the States and needing to find some place to live. As someone who has been through the process both as a client and as an agent, her advice to agents is to really get an understanding of your client’s situation, and what they expect.

Early occupancy allows for the buyers to move in early without actually owning the house yet. While they cannot make changes until the ownership passes, this may allow some members of the family to get settled in before the active military personnel arrives, or vice versa.

When helping clients get settled, it may be nice to give them a little gift basket with some of their interest in the area, and try to get them integrated into some circles. As a REALTOR®, it is important to make sure you’re aware of your client’s time frame, as well as explaining the process and costs to the clients. Talk to them about situations where they may have to leave earlier than anticipated. All of these tips are very important for helping military clients get acclimated, but kindness is one of the greatest things you can give your clients.

Additional Links:

Crdpodcast.com - Podcast Website

[email protected]

Center for REALTOR® Development

Guest Links:

Caliber Military Lending

Reach Bryan at: [email protected]

Pull A COE Online

Juanita’s Website

Juanita’s Facebook Page

Guest Bios:

Bryan Bergjans began his career in mortgage banking in 2002, and currently serves as the national director of military and VA lending, with Caliber Home Loans. In addition to his work with Caliber, he serves in the Navy, and also is an instructor with the National Association of REALTORS® for the Military Relocation Professional Certification.

Juanita Charles served in the military, and currently works as a Realtor® in Clarksville, TN, serving active duty and military veterans.

Host Information:

Monica Neubauer

Speaker/Podcaster/Realtor

[email protected]

FuntentionalLiving.com

FranklinTNBlog.com