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Table of Contents 8 Design Trends for 2019 p.16

Features 10 Scott Robbins, President of the Salt Lake Board of Realtors®

12 Guidelines to Semiretire from Real Estate Lee Nelson

16 8 Design Trends Your Clients Will Crave in 2019

Barbara Ballinger 20 7 Ways to Keep Customer Service a Priority

Lee Nelson

30 Professionalism Matters Holly Rawson

Columns 7 Stay Positive and Listen for Good News

Scott Robbins – President’s Message

Departments 8 Happenings 8 In the News 26 Housing Watch 28 Realtor® Connections 28 On the Move

On the Cover: Cover design: ©blas/ Adobe Stock Photo left: Image licensed by Ingram Image

This Magazine is Self-Supporting Salt Lake Realtor® Magazine is self-supporting. The advertisers in this magazine pay for all production and distribution costs. Help support this magazine by advertising. For advertising rates, please contact Mills Publishing at 801.467.9419. The paper used in Salt Lake Realtor® Magazine comes from trees in managed timberlands. These trees are planted and grown specifically to make paper and do not come from parks or wilderness areas. In addition, a portion of this magazine is printed from recycled paper.

Salt Lake

REALTOR slrealtors.com

Maga zine

January 2019 volume 79 number 1

slrealtors.com

The Salt Lake REALTOR® (ISSN 2153 2141) is published monthly by Mills Publishing, located at 772 E. 3300 South, Suite 200 Salt Lake City, Utah 84106. Periodicals Postage Paid at Salt Lake City, UT. POSTMASTER: Send address changes to: The Salt Lake REALTOR,® 772 E. 3300 South, Suite 200 Salt Lake City, Utah 84106-4618.

Welcome Sue Ann Wilkinson,R.C.C., C.N.H.S Vice-President NEW HOMES DIVISION With fifteen successful years under her belt, Sue Ann Wilkinson brings with her a vast database of knowledge in all things real estate. In her first year, Sue Ann was awarded the prestigious Rookie of the Year with Prudential Utah Real Estate and has spent the last five years as an award-winning producer with one of the nation’s largest builders. Sue Ann has attained multiple certifications including the Residential Construction Certified and Certified New Home Specialist designations. We at RealtyONEGroup Signature are proud to welcome Sue Ann Wilkinson to our family and congratulate her on her new role as VP of ONE New Homes Division.

Joining RealtyONEGroup allows me to realize my goal to one day lead in my industry and to contribute to the success of those around me within the nation’s fifth largest company and Utah’s premier full-service real estate brokerage. My decision to join RealtyONEGroup was a result of the relationships I have made over the years with the leaders of this highly successful and fast-growing company. RealtyONEGroup believes that together, working as One, treating ONE another with respect and caring for ONE another as a family is the Vision of #ONELove. Today with 150 offices in 35 states, 11,000 plus agents, over 37,000 closed transactions and $75 Billion in sales, RealtyONEGroup is the Biggest Little Company in the nation. -

Sue Ann Wilkinson (801) 949-7089

www.JoinROGSignature.com MIDVALE: Matt Dulle (801) 381.6288

SOUTH VALLEY: Angela Faber (435) 830.4552

UINTAH BASIN: Mary Lou Dixon (435) 790.0529

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Julia G. Borst SVP, Divisional Sales Manager

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9350 South 150 E., Suite 140 Sandy, UT 84070 Julia G. Borst NMLS ID: 275440; CA - CA-DBO275440, IL - 031.0038963, TX - 275440, UT - 5495305 • NMLS ID #2611 (Nationwide Mortgage Licensing System www.nmlsconsumeraccess.org) • CA - Licensed by the Department of Business Oversight, Division of Corporations under the California Residential Mortgage Lending Act Lic #4130699 • IL - Residential Mortgage Licensee - IDFPR, 122 South Michigan Avenue, Suite 1900, Chicago, Illinois, 60603, 312-793-3000, 3940 N. Ravenswood Ave., Chicago, IL 60613 #MB.0005932 • Utah - Licensed in UT: Utah-DRE Mortgage Entity License #7495184 & Utah-DFI Residential First Mortgage Notification – Utah Department of Financial Institutions Apple and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google Inc. Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply, contact Guaranteed Rate for current rates and for more information.

Salt Lake

REALTOR

® ®

Maga zine

slrealtors.com slrealtors.com

President Scott Robbins Summit Sotheby’s

Michael Morgan Realtypath LLC Scott Colemere Colemere Realty Associates

First Vice President Alicia Holdaway Summit Sotheby’s

Jodie Osofsky Utah Key Real Estate Mary Olsen Utah Key Real Estate

Second Vice President Matt Ulrich Ulrich Realtors®, Inc.

Sophie Reece Berkshire Hathaway

Treasurer Steve Perry Wise Choice Real Estate

Rob Ockey Century 21 Everest Dawn Stevens RealtyOne Group Signature

Past President Adam Kirkham Summit Sotheby’s

Brian Gottfredson Coldwell Banker

CEO Curtis Bullock

Tony Ketterling Equity Real Estate

Directors

Ryan Henderson Realtypath LLC

Michael Rowe Berkshire Hathaway Advertising information may be obtained by calling (801) 467-9419 or by visiting www.millspub.com

Managing Editor Dave Anderton Publisher Mills Publishing, Inc. www.millspub.com President Dan Miller Art Director Jackie Medina Graphic Design Ken Magleby Katie Steckler Patrick Witmer Office Administrator Cynthia Bell Snow

Sales Staff Paula Bell Karen Malan Paul Nicholas Chad Saunders Administrative Assistant Caleb Deane

Salt Lake Board: (801) 542-8840 e-mail: dave@saltlakeboard.com Web Site: www.slrealtors.com The Salt Lake Board of REALTORS® is pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the nation. We encourage and support the affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin.

Stay Positive and Listen for the Good News

n light of our current political climate, it is easy to get lost in all of the negativity of the world. But now is the time when we need to listen and be vocal for all of the great things that surround us. Last month we celebrated all of the wonderful winners of the Good Neighbor Awards. They each had compelling stories and were great examples of how Realtors® give back to their communities. I want you all to remember how great it is to be a Realtor® in the state of Utah. We need to be mindful of what a wonderful state we live in and how strong our economy is. Forbes magazine recently ranked Utah the No. 2 Best State for Business. Utah has occupied the top spot in Forbes’ Best States for Business six times in seven years, but fell to third in 2017 due to rising business costs and a softer economic outlook. In 2018, it climbed to a second place finish. “The state has a very pro-business climate and companies benefit from energy costs that are 15 percent below the national average,” the magazine noted. “Utah’s employment has expanded 3.3 percent a year over the past five years – third best in the U.S.” Median household income in Utah is nearly $69,000. Job growth for 2018 was 3.2 percent. Nearly 35 percent of Utah residents achieve college attainment. And the state continues to boast an exceptional degree of creditworthiness with a top AAA bond rating by Moody’s. By all indications, 2019 will be an exceptional year in Utah and nationally. “For now, neither overheating nor financial imbalances, the classic causes of recessions, appear worrisome, raising the likelihood that the economic expansion remains on track to become the longest in U.S. history in 2019,” according to a recent report by Goldman Sachs Research. There has never been a better time to be a Realtor®. As the real estate transaction becomes more complex it is important now more than ever before to raise our level of service to our clients, anticipating their needs before they even ask for something. Let’s make 2019 a memorable year. Happy New Year!

Scott Robbins President

The Salt Lake REALTOR® is the monthly magazine of the Salt Lake Board of REALTORS®. Opinions expressed by writers and persons quoted in articles are their own and do not necessarily reflect positions of the Salt Lake Board of REALTORS®. Permission will be granted in most cases, upon written request, to reprint or reproduce articles and photographs in this issue, provided proper credit is given to The Salt Lake REALTOR®, as well as to any writers and photographers whose names appear with the articles and photographs. While unsolicited original manuscripts and photographs related to the real estate profession are welcome, no payment is made for their use in the publication. Views and opinions expressed in the editorial and advertising content of the The Salt Lake REALTOR® are not necessarily endorsed by the Salt Lake Board of REALTORS®. However, advertisers do make publication of this magazine possible, so consideration of products and services listed is greatly appreciated.

OFFICIAL PUBLICATION OF THE SALT LAKE BOARD OF REALTORS ® REALTOR® is a registered mark which identifies a professional in real estate who subscribes to a strict Code of Ethics as a member of the NATIONAL ASSOCIATION OF REALTORS®. October 2005

January 2019 | Salt Lake Realtor ® | 7

Happenings

In the News FEMA Reverses Stand on New Flood Policies during

Shutdown

FHA Loan Limits Rise

©teguhjatipras/ Adobe Stock

Nearly all U.S. counties will start 2019 with higher Federal Housing Agency (FHA) loan limits than 2018. The increase helps offset rising home prices by offering lower down payment and credit score options. On a percentage basis, Salt Lake City, Seattle, and Charlotte saw the biggest jump in their maximum loan option. In Salt Lake City, the FHA loan limit will rise to $377,200, up 10 percent from $341,550. The FHA sets a ceiling and floor each year for the loan limits based on median home prices. The new ceiling of $726,252 is 7 percent higher than the $679,650 from last year. Metros like Seattle, Los Angeles, and New York fall under that umbrella. The floor of $314,827 is seen in places like Orlando.

Major Investor Winner Myra Petersen, a Realtor® with Windermere Real Estate Utah, was the winner of an Xbox One S console. All major investors to the Realtors® Political Action Committee (RPAC) are invited to join an exclusive major investor-only Facebook page. Marcus Jessop, government affairs director, holds random drawings for everything from high-end consumer electronics and game consoles to gift cards and hotel get-aways. If you would like to learn more about the amazing benefits major investors receive, please contact either Marcus Jessop or Matthew Clewett at 801.542.8840.

8 | Salt Lake Realtor ® | January 2019

Image licensed by Ingram Image

The Federal Emergency Management Agency will issue and renew flood insurance policies, reversing an unexpected and controversial ruling the agency released last month. “FEMA and the Administration deserve credit for hearing our concerns and acting swiftly to address them,” said NAR President John Smaby. “This new decision means thousands of home sale transactions in communities across the country can go forward without interruption, as Congress intended when it renewed the flood insurance program earlier this week. Our research has shown that 40,000 home sales are lost every month that flood insurance is not available.” Congress on Dec. 21 passed legislation that extends the National Flood Insurance Program until May 31, 2019. In an unexpected policy decision, though, FEMA on Dec. 26 said it couldn’t allow insurers to issue and renew federal policies while the partial government shutdown was ongoing. That ruling was unexpected because in past government shutdowns, FEMA continued to operate the program as authorized. NAR, along with other organizations, including the Property Casualty Insurers Association of America and the Independent Insurance Agents & Brokers of America, urged policy makers to reevaluate the decision. Congress expressed concern as well. “We thank the Administration and Congress for stepping up so quickly to ensure the smooth continuation of flood insurance at a time when market disruption would be extremely hard-felt,” said Shannon McGahn, NAR senior vice president of government affairs.

Pace Setters

CONGRATULATIONS TO THE DAVID WEEKLEY HOMES

COMMUNITY STAR AWARDS Jonathan Winfree – Coldwell Banker Adam Frenza – Windermere Real Estate Dave Aughey – GoBe Realty

Mindy Fung – ERA Brokers Consolidated Tammy Casper – GoBe Realty

TOP SALES REVENUE OF 2018 Cheryl Lyon – Coldwell Banker

TOP SALES REVENUE (LAST THREE YEARS) Charles Tucker – Home Value Realty Kim Zhang – Salt Lake Home Realty

Brett Sellick – RE/MAX

We are honored to partner with these award-winning Real Estate Agents who share the esteemed accomplishment of selling two or more David Weekley homes over the past three years and making their Clients’ dreams a reality.

BECOME A PACE SETTER IN 2019 BY CONTACTING 385-232-2999

See a David Weekley Homes Sales Consultant for details. Prices, plans, dimensions, features, specifications, materials, and availability of homes or communities are subject to change without notice or obligation. Illustrations are artist’s depictions only and may differ from completed improvements. Copyright © 2018-19 David Weekley Homes - All Rights Reserved. Salt Lake City, UT (SLCA103627)

10 | Salt Lake Realtor Â® | January 2019

Scott Robbins

President of the Salt Lake Board of Realtors® Associate Broker Summit Sotheby ’s International Realty

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Wife: DeAnna Robbins

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Children: Tazia, Taylor, Sydney and Berkeley

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Education: Centre College in Danville, Kentucky

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Why did you get into real estate? Wanted a change of career from the hotel industry.

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How long did it take you to make your first commission? 11 months

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What is your goal as president? My goal is to help to continue to show the value of the Realtor® in our clients’ eyes.

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What has selling real estate taught you? It is very important to put someone else’s needs over yours.

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Favorite place? Atlantic Beach, Florida

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What’s ahead for the 2019 Salt Lake area housing market? I am very optimistic about 2019. There are lots of challenges and opportunities.

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Advice to someone just getting into the profession? Make sure you have great training. Learn the fundamentals. Surround yourself with great people.

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How long does it take to be a successful agent? Three years, but you continue to learn something new on every deal.

January 2019 | Salt Lake Realtor ® | 11

Image licensed by Ingram Image

Guidelines to Semiretire from Real Estate If you’re ready to take a step back from your company—but not leave the real estate business entirely—these tips may help. By Lee Nelson

ary Poola is a lot less stressed these days. She gave up her role as designated broker and coowner of Heritage Properties in Niantic, Conn., in June, when she and her partners sold the business to William Raveis Real Estate, a large, familyowned real estate company in the Northeast. Poola now works strictly as an agent for Raveis. She didn’t completely retire—she semiretired. “The industry has changed tremendously since I started 34 years ago,” said Poola, adding that as a broker, she wore many hats. “I just knew if no one could do my job, and I woke up not feeling well one day, I didn’t want 40 people waiting for me to help them.” So instead of leaving the industry completely, she joined a new wave of brokers who are stepping back into sales, leaving the demand of running a

12 | Salt Lake Realtor ® | January 2019

brokerage behind. “You have to do everything at 110 percent,” she said about her previous role. “That’s why I needed to change.”

Why Semiretire? Semiretiring from real estate might not be for everyone, but here are three important reasons it might be the right path for you. 1. Additional retirement income. Some brokers continue in real estate sales even after they hand over their management reins because they need some additional income for retirement. Remember, it’s more and more common for retirees to continue some form of work to make extra money. 2. Ensuring clients receive consistent service. “I think letting go and trusting that clients will

Announcing

O U R NEW OFFI C E 1 3 6 9 3 S O U T H 2 0 0 W EST, S U I T E 10 0, D R A P E R

Summit Sotheby’s International Realty is honored to announce the expansion of its premiere real estate brand to Draper and the surrounding area. Now open at 13693 South 200 West, Suite 100 in Draper, Summit Sotheby’s International Realty will be able to provide the area’s top sales associates and their clients an unprecedented level of service touching marketing, operations, transaction and legal departments. Offering clients a luxury real estate experience regardless of area or price point is just one reason why Summit Sotheby’s International Realty is like no other. For more information on our new Draper location please contact Draper Managing Broker, DeAnna Robbins.

DeAnna Robbins – MANAGING BROKER 801.949.7182 | deanna.robbins@sothebysrealty.com

summitsothebysrealty.com

MMXVIII Sotheby’s International Realty Affiliates, Inc. All Rights Reserved. Sotheby’s International Realty ® is a licensed trademark to Sotheby’s International Realty Affiliates, Inc. An Equal Opportunity Company. Each office is independently owned and operated. Copyright© Summit Sotheby’s International Realty 2018. ©

continue to receive the same level of professionalism and personal service with someone else is the hardest part for a broker,” said Susy Hurlbert, CEO of the Eastern Connecticut Association of Realtors®. Associations could become resource centers for practitioners wanting to semiretire, helping to facilitate brokerage transitions, provide limited referral services, and offer education in financial health and succession planning, Hurlbert suggested. In fact, her association has scheduled an attorney to speak to members about these topics. 3. Keeping a piece of your legacy. Many brokers may feel their business is “their baby they have raised from the beginning,” said Bubba Mills, owner and CEO of Corcoran Consulting & Coaching in O’Fallon, Ill. For micromanagers who believe their brand’s integrity depends on their involvement in the business, semiretirement can be a way to maintain some control. “They always have to be the problem-solvers and have their fingers in the mess,” Mills said. “When they are no longer the decision-maker or the solution to problems, it can hurt them.”

Taking the Semiretirement Leap If you want to keep working but pare down your duties and hours, below are some guidelines and words of advice to help. When you’re ready to start letting go of your real estate company, these tips will make it a little easier. Speak to someone who’s done it. Start by reaching out to a fellow broker who has already transitioned into semiretirement, Hurlbert said, and ask them about their process and the obstacles they needed to overcome. Create your financial plan. Talk to a financial planner to help you understand what income you’ll need to sustain your lifestyle into retirement. Even if you’ve been saving money, your business is likely your biggest asset. You’ll have to devise a solid plan of action for selling it or stepping away. Find a successor. Keep an eye out for an agent you can groom to eventually take over your business. Begin work on a succession plan before the time comes to semiretire or retire, Hurlbert added. Hire a general manager. If you’re currently serving as your company’s managing broker, hiring someone to take on this role is the easiest way to semiretire, Mills said. “You don’t have

14 | Salt Lake Realtor ® | January 2019

Image licensed by Ingram Image

to give away equity, just a salary,” he added, suggesting a profit-sharing deal with the new manager rather than an equity buyout. Then you can continue to work with the clients of your choice without the day-to-day involvement in the office. Stay involved in your community. Successful brokers who continue their social or industry activities—or replace them with new, meaningful ones—will have an easier transition into retirement or semiretirement, Hurlbert said. “This industry has a very social aspect to it, with many networking events and learning opportunities tied to work.” Keep the news to yourself. You may tell friends and family, but you don’t need to inform the public that you are semiretired, Mills said. People may not understand what semiretirement means, and they may think your business is closing completely. Just keep working with your friends, family, longtime clients, and your best referrals—and do as much or as little work as you want to do. Poola said she is still her former agents’ confidante and gives them a lot of information throughout the day. But now those agents also have an office manager helping them handle problems. Poola doesn’t have a specific date in mind for when she’ll retire completely. Her personal mantra has always been: “Don’t do something when you think you need to do it. Do it when it seems right.” “I came in selling and listing, and that’s how I will leave—someday,” she added. Reprinted from Realtor® Magazine Online, November 2018, with permission of the National Association of Realtors®. Copyright 2018. All rights reserved.

Welcome to Salt Lake City! Please welcome Signature Real Estate Utah to town! Come join us for a cup of coffee and find out our winning strategy for success.

For more information please call or visit us! Maury Kimball: 801-859-6799 6322 S 3000 E, Suite 110 Cottonwood Heights, UT 84121

©alexandre zveiger/ Adobe Stock

8 Design Trends Your Clients Will Crave in 2019 From architecture that can withstand Mother Nature’s wrath to warm neutrals replacing gray-washed rooms, stay in the know about the biggest interior design predictions for the coming year. By Barbara Ballinger

hifting economies, demographics, and land shortages are issues altering how we live and what buyers are looking for in a home. Going smaller has become bigger—a trend Not So Big House author and architect Sarah Susanka first advocated more than 20 years ago. A desire for greater affordability, convenience, healthfulness, sustainability, and old-fashioned comfort are still on the wish lists of many clients. But Connecticut architect Duo Dickinson says he’s witnessing another trend: a renewed willingness to remodel. With a mind to resale value, here are eight interior design trends that experts anticipate becoming more dominant in the new year, and advice on how you can apply these predictions to your real estate business. 1. Light, Views, and Fresh Air Why it’s happening: Research shows that natural light can boost healthfulness, both physical and emotional, so architects

16 | Salt Lake Realtor ® | January 2019

and window manufacturers are responding. Dickinson’s top suggestions to clients are to repair or reglaze windows, add more windows, build a deck, or add on a screened porch. “It gives them an important connection with the outdoors,” he said. Manufacturers like Marvin Windows and Doors are debuting new product lines, such as windows mulled together for a wall of light, and the company’s new Marvin Modern collection minimizes framing for maximum sightlines. Rick Gehrke with RE/ MAX Executives in Boise, Idaho, said he’s seeing more roll-up garage doors fitted with glass for views outdoors. How you can take action: Let clients know that new glazing can make a big difference to the enjoyment and efficiency of a home, and it’s an affordable update. Dickinson said a quality single window or door with glazing might cost $1,000. An entire wall of glass may run $5,000 to $10,000, but the return on investment can be huge if it captures a view or lightens a dark space.

2. Healthier Houses Why it’s happening: With reports of contaminants in drinking water, toxic levels of formaldehyde being released from laminate flooring, and other home health scares, consumers are increasingly concerned about how their home may affect their health. But rather than compromising health and wellness, homes can provide an opportunity to enhance lives. Building experts await the U.S. debut of the DARWIN Home Wellness Intelligence platform at the January 2019 Consumer Electronics Show in Las Vegas. The platform focuses on air filtration, water purification, circadian lighting, and comfort-focused technologies, all to simulate the natural outdoor environment. “We wanted to get rid of stagnant air that’s two to five times worse than outdoor air, contaminated water that runs through old corroded pipes, synthetic materials that offgas, and artificial light that disrupts natural circadian rhythms,” said Paul Scialla, founder and CEO of Delos, DARWIN’s developer. “It also responds to changes it detects, such as pollutants coming in on the bottom of our shoes.” The first fully integrated DARWIN home was launched two months ago in Australia, with the platform adding only $2,000 to the cost of the project, he said. Eventually, Delos plans to make the technology available for retrofits of existing single-family homes. How you can take action: Staying abreast of new building techniques and smart home developments will help you better serve clients who are eager to make their homes healthier. 3. Bathrooms for Aging in Place Why it’s happening: According to a 2018 Houzz Bathroom Trends Study, baby boomers now account for the largest share of home owners choosing to renovate—and their top project is redoing the master bathroom. “A significant proportion of boomers (56 percent) are aware of the needs that arise aging in place,” said Nino Sitchinava, Houzz economist. “They are proactive about integrating accessibility features that address these needs during renovations.” Popular changes include removing tubs that are difficult to climb into and out of, adding accessible shower seats and grab bars, and installing zero-threshold entries between rooms. How you can take action: Knowing the costs will help you serve as a trusted adviser to buyers. The median cost for a large master bathroom renovation was estimated at $16,000 by Houzz. If that’s too much, suggest piecemeal changes. Grab bars, for example, range between $140 and $300, depending on whether the wall includes blocking support or if it must be added, said Richard Duncan, a universal design expert and

co-founder of the Better Living Design Institute in Asheville, N.C. 4. Resiliency and Sustainability Why it’s happening: Natural disasters are occurring more frequently and sometimes with little warning. The most forward-thinking homebuilders are developing resilient solutions for new and existing homes. “The weather is getting almost biblical, and homes that don’t address that run a legitimate risk of being seriously damaged or destroyed and having their resale value put in question,” said Nathan Kipnis of Kipnis Architecture and Planning Solutions in Chicago. His designs include oversized gutters and downspouts that direct water to rain gardens or other landscape features that can handle intense rain. He also recommends an ice and water shield on the roof to create a rain barrier, so the interior has greater protection. Coastal homes should add hurricane straps where the roof and walls intersect, he said, to reduce possible wind damage. Sustainable features are also critical to decarbonize the built environment and conserve resources. Kipnis favors all-electric systems, including induction cooktops, mini-split HVAC systems, and heat pump water heaters. Homeowners could take it a step further and have the garage wired to be a charging station for electric cars and add solar panels to the roof. How you can take action: Direct clients to experts who know how to build and remodel houses to withstand the weather and keep energy costs down. Also, know how and where products and materials are made, since more buyers are asking, said Amanda Mason, senior design director at Chicago-based Belgravia Group. You can increase your knowledge by obtaining the National Association of Realtors®’ Green Designation or attending a green-building conference. 5. Away With Gray Why it’s happening: Color swings keep rooms fresh, but what may appeal often depends on how trend-focused the locale is, along with the age and style of the home. According to Sue Wadden, director of color marketing at Sherwin-Williams, “Grays are now in the midst of a warming trend.” In Chicago, real estate pro Jennifer Ames, with Coldwell Banker Residential Brokerage, said, “It’s back to more white and off-whites.” Her clients are seeking a more neutral, calm background. In Boise, Idaho, beige appeals to the broadest range of buyers, but millennials moving downtown favor a statement wall of bright turquoise or magenta, said real estate salesperson Gehrke. When it comes to cabinetry, colors are becoming more robust nationwide. Manufacturer

January 2019 | Salt Lake Realtor ® | 17

©policas/ Adobe Stock

MasterBrand Cabinets has found blue tones are becoming more popular, while teal, sage, and olive colors are making inroads. But when it comes to selling, color expert Amy Wax generally recommends being more cautious and favoring lighter colors that convey an easy-to-decorate, move-in atmosphere. How you can take action: Learn preferences of buyers in your market, which may require asking paint store salespeople, designers, architects, and color experts. Then share what you learn with clients. “You can help buyers find a look by showcasing an updated aesthetic that doesn’t feel contrived,” Wadden said. 6. Natural Materials and Motifs Why it’s happening: After so much focus on clean, spare Scandinavian design, there’s yearning for more warmth and comfort with natural touches. In fact, Miami-based designer Antony Chandler, president of Archiforma Group, thinks sitting in your living room should evoke the feeling of lying in a hammock under a great tree on a breezy summer day. To get the look, Chandler suggests prints and florals in naturalcolored tones. Butcher block kitchen countertops and a mix of warmer natural materials such as wood, leather, silk, and stone will help capture the natural feel. Chicago designer Steve Kadlec suggests open grain oak cabinetry, metallic linen

18 | Salt Lake Realtor ® | January 2019

draperies, saddle leather, and woven cotton rugs. A warmer, more natural glow can also be illuminated through new LED lights, said Chicago designer Tom Segal, of Kaufman-Segal Design. How you can take action: Your sellers don’t have to revamp rooms completely. Make suggestions on incorporating a few pieces to get the look. “You can capture a concept with a single well-chosen piece. Make it bold, beautiful, and memorable, and your listing will stand out in buyers’ minds,” Chandler said. 7. Affordable Microhouses Why it’s happening: Affordability is in great demand, with rising home prices and a shortage of desirable downtown locations. “What’s needed is more dense land planning, common outdoor space, greater acceptance of attached homes, and sometimes doing without a garage,” said architect Bill Ramsey with KTGY Architecture and Planning’s Denver office. What’s considered livable yet affordable often needs to be larger than tiny homes, most of which are less than 500 square feet. John Hunt, president of Atlantabased MarketNsight, a research firm focused on the building industry, thinks there’s a more viable option: microhouses, which range from 500 to 1,000 square feet. They fit community codes for permanent housing, unlike tiny homes that often must be built atop trailers due to their

modest square footage. Microhouses also offer equity, unlike rental microapartments. They can be constructed as narrow townhouses or as a one-story, single-family designs. Home builder Jim Chapman Jr. recently received approval from the city of East Point outside Atlanta for 40 microhouses, each between 500 and 1,000 square feet on a 7.69-acre historic downtown site. Prices will start in the high $100,000s. How you can take action: This small livable option can be a good investment for your buyers. Find out if there are any developments in the works in your market. “Many pay higher prices for lower-square-foot rentals,” Hunt said. 8. High and Low Decor Why it’s happening: For the millennial generation, quality supersedes quantity. But this isn’t limited to their desire for smaller, better homes, said Chicago designer Rebecca Pogonitz of GOGO design group. It also applies to what they choose to put inside their homes when they decorate. “It’s not about keeping up with the Joneses. How they live dictates their choices,” she said. “They’re very practical about the money they spend, often researching and gathering ideas from sites like

Houzz and Pinterest that mix high and low, and then asking experts to cull and complete a look.” Finished projects might translate into a combination of luxury vinyl planks—which are more practical than expensive real wood boards— and furnishings from readily available online resources like Wayfair, Crate and Barrel, and Arhaus. The benchmark isn’t how fancy or rare something is, but if it’s practical, gives them the right experiences, and nourishes their spirit. How you can take action: When buyers ask for guidance once they move in, communicate that practicality should be their main mantra. Good readily available resources they might consider, Pogonitz said, come from Room and Board, West Elm, Crate and Barrel, Ethan Allen, HighFashionHome.com, Perigold.com, Ruelala. com, and Houzz.com. Barbara Ballinger is a freelance writer and the author of several books on real estate, architecture, and remodeling, including The Kitchen Bible: Designing the Perfect Culinary Space (Images Publishing, 2014). Barbara’s most recent book is The Garden Bible: Designing Your Perfect Outdoor Space, co-authored with Michael Glassman.

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January 2019 | Salt Lake Realtor ® | 19

7 Ways to Keep Customer Service a Priority Your clients judge you against the great service they received at a five-star hotel, the friendly service they got this morning at Starbucks, and the speed of response they just experienced at Amazon. By Lee Nelson

veryone at Expert Real Estate Partners in Appleton, Wis., cleared their schedules and showed up with ladders, rollers, and paint brushes to repaint an entire two-story home, garage, and shed days before a closing for an out-of-state seller. A botched paint job started by a previous buyer who had fallen out of contract had left the property half yellow. “We didn’t have to do this. But when I had talked to the company about it at our weekly meeting, everyone agreed that it was the right thing to do,” said Duane Murphy, CRS, SFR, broker-owner. Murphy believes you have to live your customer service mantra day to day and always exceed expectations. Today’s clients are looking for fast responses to questions and someone who

20 | Salt Lake Realtor ® | January 2019

cares, so if you manage to achieve both at your brokerage, then you’re also building a strong referral base. San Diego-based real estate investor and educator Than Merrill believes that customer service is the most important element of any business because it builds brand loyalty. “The majority of buyers in today’s market want to work with a professional who can offer peace of mind, as the real estate industry can confuse even the most seasoned of veterans,” said Merrill, founder of CT Homes LLC and FortuneBuilders.com. Micah Solomon, a customer service consultant, speaker, and trainer, agrees that the most direct route to build and sustain business comes from delivering world-class customer service. A single

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4. Show them you care. Murphy and his agents believe in building a friendship with their clients by the end of every transaction—in fact, it’s one of their core values. To enhance this, they plan five or more friend and family events each year to get everyone together and keep close ties. “Our mindset is that it’s not just about one transaction or one closing. We want to be there for our clients whenever they may need us in the future,” he said.

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satisfied client can spread the word to hundreds or thousands of their contacts online, he added. And due to the emotional and stressful nature of dealing with such an important transition, achieving high-level customer service in real estate is more essential than in most industries, Solomon said. To help improve or transform the customer service at your brokerage, experts offer seven tips to start implementing in the new year. 1. Answer inquiries immediately. An hour might feel like a year when communicating online or via text, Solomon said. If a prospective client reaches out for the first time and doesn’t hear back that same morning or afternoon, they may very well move on. 2. Exercise unparalleled transparency. “There’s no excuse for neglecting to disclose anything,” Merrill said. The more transparent a real estate professional is when working with a client, the better. Doing so will build trust and increase brand loyalty more so than almost anything else. 3. Make the client your focus. True personal service will differentiate your brand. Work to achieve the intimacy of a beloved bartender, doorman, or hairstylist— the kind who would know a customer’s preferences and the name of their children or pets, Solomon said. However, be aware that customers don’t want over-the-top, ultrachatty interactions all the time. It depends on their nature and how busy they are at the moment, so tune in to their cues.

22 | Salt Lake Realtor ® | January 2019

5. Keep up with virtual reality technology. As the technology behind VR progresses, it could significantly enhance the customer’s home shopping experience, said Merrill. The client needs to do nothing more than put on a headset to either meet with their real estate professional or take a tour of a home, all from their current home or office. “We are just scratching the surface of what VR can do for the real estate industry,” he added. 6. Deliver the best customer service— out of anyone. Don’t just be the best in the real estate business—be the best compared to all industries, Solomon said. “Your clients judge you against the great service they received at a five-star hotel, the friendly service they got this morning at Starbucks, and the speed of response they just experienced at Amazon.” 7. Get everyone’s name in your CRM. Murphy provides a CRM platform for all his agents and trains them on how to use it effectively. “We encourage our agents to have their entire database and sphere in the system. It makes keeping track of contact information, important dates, and life happenings so much easier,” he said. That way, clients can get birthday and anniversary cards on time, so they know you or your agents were thinking of them. Real estate is, as they say, a people business. Poor customer service threatens the most important relationships in your business. “Without a good relationship between you and your customers, there’s a chance nobody will want to work with you down the road, effectively limiting your chances of realizing future success,” Merrill said. Reprinted from Realtor® Magazine Online, December 2018, with permission of the National Association of Realtors®. Copyright 2018. All rights reserved.

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2019 Economic Outlook Housing remains our nation’s best and safest wealth builder over the long term. By Robert Freedman

espite rising interest rates and weakening buyer enthusiasm, continuing economic gains mean 2019 will look much like 2018 regarding the strength of the residential market, NAR Chief Economist Lawrence Yun predicts. “It’s going to be more of the same, in terms of growth,” he said. A wild card is the growing threat of recession fueled by a trade war with China and other countries, but it’s too soon to see how that plays out. “Stock market volatility caused by talk over a trade war is not good,” Yun said. “But economic fundamentals remain strong and should stay that way if normal trade patterns continue.” Home sales, combined existing and new, are expected to increase a little less than 1 percent, from 5.97 million to 6.1 million. Helping to drive the increase are gains in new-home sales, from

24 | Salt Lake Realtor ® | January 2019

623,000 to 690,000, as builders accommodate the country’s growing population. “Builders will build just because of the accumulated pent-up housing demand over the years from the rise in population,” said Yun. He’s forecasting starts to rise from 1.26 million to 1.32 million, helping to ease some of the housing shortages that have plagued many markets in the past several years. But the relatively smooth rise won’t be felt evenly across price points and housing markets. Shortages for homes at lower price points will persist, which is the segment where demand remains strongest. That will keep upward pressure on prices, adding to affordability woes for first-time and moderateincome buyers. Inventory shortages have been less of a problem with higher-end homes, so price

gains will be slow compared to what’s happening with lower-cost homes. Commercial Forecast On the commercial side, practitioners specializing in leasing and property management will continue to do well. The economy is generating a wide range of jobs, keeping upward pressure on demand. But commercial specialists involved in investment transactions will need to be careful. Rising interest rates and a similar rise in cap rates will lead to some shaving in property values. The transaction volumes of properties valued at $2.5 million and above have already started falling. Investment deals in markets outside big urban centers are holding up better and should continue to stay solid. Two markets that can expect a strong boost in property values, both residential and commercial, are Arlington, Va., and Queens, N.Y., which are the newly named locations for online retail giant Amazon’s headquarters expansion. Property owners should benefit as the areas see an influx of highly skilled, well-paid employees. But Amazon’s arrival will force local rents to rise, which will hurt other workers whose wages are lagging. Tax Law Impact Also dampening price gains of expensive homes are changes to federal tax deductions enacted at the end of 2017. The Tax Cuts and Jobs Act lowers the cap on the mortgage interest deduction from $1 million to $750,000 and also places a $10,000 cap on state and local tax deductions. Those caps could cut into the tax benefit for many owners of costly homes, especially if they’re in states with high property taxes. Increases in the standard deduction mean that fewer owners will be opting to itemize their deductions any way. Yun said in pricey markets, like some suburban areas of Chicago, owners are starting to have trouble finding buyers who don’t want to

put a lot of money into a house if they can’t fully deduct property taxes. “We have to wait for actual data to come out, but anecdotally, the tax law might be playing a role in slowing sales of upperend homes,” he said. Look for price gains to slow in once-hot markets like Denver; Seattle; Austin, Texas; and the San Francisco Bay Area. Costly bedroom communities in high-tax states such as New Jersey, Connecticut, and Illinois could experience price reductions. Outside of these pockets, prices are expected to show the same modest gains as those of the last few years, so look for existinghome appreciation of 2 to 3 percent in 2019 overall. Yun sees interest rates continuing to rise moderately, from about 4.8 percent at the end of 2018 to 5.5 percent by the end of 2019. But because builders are stepping up starts and the broader economy is expected to stay on a steady upward trajectory, the rise in interest rates shouldn’t have a dampening effect. Look for the economy to grow 2 percent and job gains to remain solid at 1.5 million. It’s not just the solid economy that will keep housing on an even path, Yun said. Mortgages over the past decade or so have been among the bestperforming ever, thanks to solid underwriting by lenders. As a result, delinquencies and foreclosures are expected to remain low. “Housing remains our nation’s best and safest wealth builder over the long term,” Yun said. “The market this year will not be exciting, but it will be solid and in positive growth territory. Only in previously hot markets will we see some slowdown, and that is not a bad thing, because it will help put prices more in line with people’s ability to buy.” Robert Freedman is the director of multimedia communications at NAR. He can be contacted at rfreedman@realtors.org. Reprinted from Realtor® Magazine Online, January 2019, with permission of the National Association of Realtors®. Copyright 2019. All rights reserved.

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January 2019 | Salt Lake Realtor ® | 25

Home Sales Slow in Salt Lake County Rising home prices and rising mortgage interest rates slowed Salt Lake home sales in November. For the month, sales of all housing types slid to 1,339 units, down 10 percent from 1,491 units sold in November 2017. Neighboring Davis County saw its sales increase 3 percent to 416 units sold in November year-over-year. November was the second consecutive month of falling sales. In October, Salt Lake sales were down 5 percent year-over-year. September sales were flat. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased to 4.87 percent in November from 4.83 percent in October. The average commitment rate for all of 2017 was 3.99 percent. Nationally, home sales were down 7 percent in November from a year ago, according to the National Association of Realtors®. First-time buyers were responsible for 33 percent of sales in November, up from last month and a year ago (31 percent and 29 percent, respectively). NAR’s 2018 Profile of Home Buyers and Sellers – released in late 2018 – revealed that the annual share of first-time buyers was 33 percent. “Inventory is plentiful on the upper-end, but a mismatch between supply and demand exists at affordable price points,” said NAR Chief Economist Lawrence Yun. “Therefore, facilitating real estate development of affordable housing units in designated Opportunity Zones can provide better housing access in addition to boosting the local economy.” Distressed sales – foreclosures and short sales – represented 2 percent of sales in November (the lowest since NAR began tracking in October 2008), down from 3 percent last month and down from 4 percent a year ago. All-cash sales accounted for 21 percent of transactions in November, down from October and a year ago (23 and 22 percent, respectively). Individual investors, who account for many cash sales, purchased 13 percent of homes in November, down from October and a year ago (15 percent and 14 percent, respectively).

26 | Salt Lake Realtor ® | January 2019

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January 2019 | Salt Lake Realtor ® | 27

REALTOR® Connections Advice from a Past President Miriam K. McFadden • 1996 President of the Salt Lake Board of Realtors® • Broker with Miriam K. McFadden Real Estate Q: What’s the biggest change you have seen in the real estate profession during your career? A: Technology. Q: Why did you choose a career in real estate? How long have you been a Realtor®? A: It was an accident. I took the “wrong” course at the University of Utah. I have been a Realtor® since 1978. Q: What qualities or attributes make a successful Realtor®? A: Integrity, honesty and accountability Q: What advice do you have for new agents starting in the profession? A: Treat it as a profession. Get educated. The Salt Lake Board of Realtors® offers great courses, so take advantage. Build relationships with other Realtors® (impossible via TEXT). Communicate in a timely manner.

In Memoriam Constance Richan, an affiliate member of the Salt Lake Board of Realtors® and a home warranty specialist, passed away on Dec. 30. She leaves behind two daughters, Sierra and Chalese, and her husband Craig. During her long battle with a rare form of cancer, Constance actively sought opportunities to lift and serve others. She offered words of encouragement and radiated goodness to all those around her. Constance was awarded the 2017 Affiliate of the Year award by the Salt Lake Board of Realtors® for her tremendous service to the real estate profession. Her kindness and giving spirit will be missed.

Salt Lake Home Sales Down in November Home sales in Salt Lake County fell 10 percent in November, the second consecutive month of falling sales. In Davis County, sales increased 3 percent. Salt Lake home sales fell 5 percent in October, and were flat in September year-over-year. Higher prices, rising interest rates, and limited inventory were some of the reasons behind the declines.

Signature Real Estate Utah announced it is open for business. The firm welcomes the following agents to its Cottonwood Heights office: Aabri Kimball and Darren Pain. The brokerage also opened a St. George office and welcomes the following agents: Jami Call, Heather Mongie, and Tyson Roberts. The company’s principal broker is Maury Kimball. Maury and Aabri Kimball are co-owners of the company. Gavin Krushensky joins the staff of the Salt Lake Board of Realtors® as event coordinator. In addition, the Board also recently hired Kelsey Hancock and Marissa Lawrence as member services specialists.

28 | Salt Lake Realtor ® | January 2019

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