denver metro - Foley Publications, Inc.

Transcription

theDENVERMETROREALTOR®
Official Publication of the Denver Metro Association of REALTORS®
JULY | TWO THOUSAND-SIXTEEN
DMAREALTORS.COM
ER METRO
Denver housing
inventory
TION OF
REALTORS
®
Increases on the
Heels of Brexit
2015 - 2016 Board of Directors
Chairwoman Laura Ruch | Keller Williams Preferred
303-452-3300 lauraruch@zenergygrp.com
Director Tammy Deitz | RE/MAX 100
303-232-4444 tammy@dgsells.com
Director Libby Levinson | Kentwood Real Estate
303-331-1400 libby@libbysellsdenver.com
Chair-elect Scott Grossman | RE/MAX Southeast, Inc.
303-941-9426 scott@grossmandreamhomes.com
Director Karen Frisone | K.O. Real Estate
303-422-3888 karenfrisone@korealestate.com
Director Christine Malara | RE/MAX Alliance
christine.malara@homesincolorado.com
Secretary Shannel Ryan | Fuller Sotheby’s International
303-893-3200 shannel.ryan@sothebysrealty.com
Director Euan Graham | Madison & Company Properties Ltd
303-771-3850 euan@madisonprops.com
Director John McComas | Coldwell Banker Res. Brokerage
johnmccomas@coldwellbanker.com
Past Chairman Greg Geller | Vision Real Estate
303-302-3622 gregdgeller@gmail.com
Director Phil Heter | Heter and Company, Inc.
phil@heterco.com
Director Phil Shell | RE/MAX Alliance
303-420-5352 PShell@Remax.net
Director Andrew Abrams | Vision Real Estate
303.981.6723 andrewdabrams@gmail.com
Director Heather Heuer | Porchlight Real Estate Group
heather.heuer@porchlightgroup.com
Director Milford Adams | Lyon Realty LLC
303-369-0529 adams@LyonRealtyGroup.com
Director Fred Huber | Denver Home Solutions
fred@denverhomesolutionsllc.com
NAR Directors
CAR Directors
Gary Bauer | Garold D. Bauer
303-909-3001 gary@gdbauer.com
Piper Bruner | The Knoll Team Madison and Company Properties
720-935-0895 piperbruner@gmail.com
Karen Levine | RE/MAX Alliance
303-420-5352 karenlevine@remax.net
Ted Bryant | Metro Brokers Bryant Inc.
303-988-0900 ted@tedbryant.com
Derek Camunez | RE/MAX Avenues
303-477-1000 derek.camunez@remax.net
Jolon Ruch | Keller Williams Realty
303-452-3300 Jolon@jolonruch.com
Justin Knoll | The Knoll Team Madison and Company Properties
303-550-0096 Justin@theknollteam.com
Kit Cowperthwaite | Distinctive Properties
kit@kitrealty.com
Mark Trenka | Trenka Real Estate
303-629-1000 mtrenka@condosandlofts.com
Jolon Ruch | Keller Williams Realty
303-452-3300 Jolon@jolonruch.com
Chris Djorup | Metro Brokers Djorup & Associates
303-740-8100 cdjorup@aol.com
Merry Whyman | RE/Max Alliance
merrywhymanhomes@aol.com
Janet Scavo | Brokers Guild Cherry Creek
303-988-0123 janetscavo@comcast.net
Inge Frerichs | Trans World Realty LLC
303-622.6449 inge@magicgenierealty.com
Greg Zadel | Zadel and Associates Realty Inc.
303-833-3012 greg@zadelrealty.com
REcolorado Directors
Gerry Fitzpatrick | RE/MAX Southeast
303-743-9306 gerryf@remax.net
Jon Larrance | Perry & Co.
303-336-4744 jlarrance@perryandco.com
Eric Mott | REcolorado Director Innovative Real Estate
720-600-2375 ericpmott@hotmail.com
Scott Nordby | Innovative Real Estate Group
303-289-7009 scottnordby@iregroup.com
Dave Pike | Coldwell Banker
720-849-4619 pikegroupdave@aol.com
Affiliate Council
Chairwoman Sahsha Graves | Chicago Title Insurance Company
sahsha.graves@ctt.com
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Contents
In This Issue
COLORADO’S FIRST-TIME HOMEBUYERS
SAVINGS ACCOUNT4
MARKET TRENDS6
INTRODUCING: DISTRICT REALTALK
SERIES8
COFFEE BREAK WITH JAME
WEICHSELBAUM10
EXISTING-HOME SALES AT HIGHEST
PACE IN 9 YEARS12
WHAT DO FOOTBALL AND REAL ESTATE
HAVE IN COMMON?
THE GREATEST CHALLENGE AHEAD?
NEED INVENTORY? TRY THIS!
ENOUGH ABOUT MILLENNIALS
CEO CORNER
ALEX LANGE, CEO, UPSTREAM
CLASS ACTION PLAINTIFFS MUST
SUFFER CONCRETE HARM TO PREVAIL
DEVELOPING A TECHNOLOGY AND
MARKETING PLAN FOR YOUR COMPANY 26
MAKE YOUR MARKETING COUNT
27
16
18
20
22
23
24
Advertiser Directory
Bank of America
Blue Ribbon Home Warranty
Bridge Capital Resources
CalAtlantic Homes
Staff
28
21
9
5
Colorado’s Best Home Inspection 21
First Integrity Title
13
IRES21
North American Title
17
Director of Member
Services and Operations
Director of Events and Education
Director of Finance and
Membership
Government Affairs
Laison
Amy Davies
Chantel Babb
Peter Wall
25
19
2
Membership Manager
Central Receptionist
Marketing Communications Manager
Education and Event Assistant
Digital Marketing Coordinator
Marketing Communications
Coordinator
Jo Ann Lujan
Cindy Goins
Chief Executive Officer
Ann Turner
New American Funding
Pillar to Post
Sunflower Bank
Karen Henderson
Diana Barsan
Sarah Goode
Finance and Membership Assistant
Joyce Fledderjohn
Claire Calderbank
Keisha Datuin
4601 DTC Boulevard, Ste. 100, Denver
Monday - Friday 8-5
DENVER METRO
ASSOCIATION OF REALTORS
®
Three Convenient Locations!
DENVER METRO ASSOCIATION OF REALTORS®
DMAR North
13648 Orchard Pkwy #900, Westminster
Monday - Friday 9-2
JULY | TWO THOUSAND-FIFTEENPAGE THREE
MAP
REALTOR® Store | Classes | Pay Dues | Wi-Fi
Visit us online at www.dmarealtors.com.
Contact any location by phone at 303-756-0553
950 Wadsworth Blvd, Lakewood
Monday - Friday 9-2
MAP
DMAR West
MAP
DMAR HQ
Colorado’s First-Time
Homebuyers Savings Account
The act would amend the federal
tax code to create 529-style savings
accounts for first time homebuyers.
The goal is to take the highly successful 529 plan model, which provides
parents a tax-advantaged means
to save for their children’s college
education, and apply it to another area
where savings are equally important:
buying a first home.
“The American dream of home
ownership is getting harder and harder
to attain for those starting out on
their own because of the challenges
involved in saving up for the down
payment. The First-Time Homebuyer
Savings Account Act is a straightforward and bipartisan solution to this
problem.” - U.S. Representative Mike
Coffman
Coffman’s Congressional district,
Colorado’s 6th, is an example of the
difficulties young people currently face
saving for a down payment. According
to the Joint Center for Housing
Studies at Harvard University, the 6th
Congressional district is rated as in a
‘renters’ crisis, meaning that half of all
renters in the district spend at least
30% of their income on rent. In fact
the situation in the district is arguably
even more serious because 25.9% of
renters in the 6th district spend half
of their income on housing. With such
high rents, saving for a down payment
just can seem impossible. This is a factor in why, according to the Commerce
Department, in the second quarter of
2015, homeownership rates hit its lowest level since 1967.
Coffman’s introduced this bill as part
of his ongoing efforts to help first-time
homebuyers. Earlier this year, Coffman
introduced another bipartisan bill
with Maloney, which allows first-time
homebuyers to draw some money
from their IRA accounts for a down
payment. Seeking additional ideas to
help homebuyers, Coffman saw the
Colorado legislature pass its version
of the First-Time Homebuyer Saving
Account Act, which was signed into
law in Colorado earlier this month, and
is similar to laws enacted in Virginia
and Montana. Seeing another good
idea to encourage home ownership,
Coffman decided to introduce the bill
at the federal level because state laws
can only provide for tax-advantaged
savings from state taxes, and federal
tax rates are much higher.
free First-Time Homebuyer Account
is a smart approach to empowering
more potential buyers with the tools
to overcome those challenges and
achieve the dream of homeownership. The National Association of
Realtors® supports this legislation and
thanks Congressman Mike Coffman
for introducing it in the House of
Representatives”.- National Association
of Realtors® President Tom Salomone .
How does it work?
The bill will allow individuals to
deposit up to $14,000 per year and
married couples filing jointly up to
double that amount per year, after
taxes, into a first-time homebuyer
account with a maximum lifetime
investment of $50,000. The investment
can grow up to $150,000
tax-free and there is no time
limit on how long the funds
may remain in the account.
All limits are adjustable for
inflation. The account is only
available for use to make the
down payment and pay the
other fees and costs associated with the purchase of a
first home.
The designee of the
account can be the account
holder or any designated beneficiary and can
be modified at any time.
Additionally, the bill includes a provision that allows divorcees who were
previous co-owners on a principal
residence, to use the funds in a firsttime homebuyer savings account after
a three-year waiting period.
“Potential homebuyers are up
against a lot when trying to save
for a down payment. Many already
face a significant debt burden, and
with home prices on the rise, people
need every opportunity to put aside
a little extra money. Creating a tax
DENVER METRO
JULY | TWO THOUSAND-SIXTEENPAGE FOUR
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Denver housing inventory historically peaks
in late summer, but that may not happen if
the market continues at its current pace.
“Just like the sound of a powerful
M-80 firecracker bursting over the skies
Fourth of July weekend, Denver’s real
estate market exploded with a flurry
of new listings and ended the month
with a dazzling display of active inventory,” said Anthony Rael, Chairman of
the DMAR Market Trends Committee.
Rael assesses that the increase in
Denver-area housing inventory may be
attributed to mortgage rates plunging
to the lowest level in three years as the
Federal Reserve reacts to Brexit. Since
2005, Denver has seen an average
increase in listings of 4.2% from May to
June. This year, however, listings on the
market increased 24.40%.
He adds, “On the heels of Brexit,
which caused mortgage interest rates
to plummet even lower the past two
weeks, we welcomed a pint-sized
boom in single-family listings as fellow
real estate agents pounded the streets
seeking properties for hungry homebuyers who are nipping to get under
contract, locked, and closed as soon as
possible.”
“Mortgage rates plunging to the lowest level in three years as the Federal
Reserve reacts to Brexit.” - Anthony
Rael.
By the numbers month over month,
for the entire residential market, 7,615
new listings came on the market (up
12.17%), 5,587 homes were placed
under contract (down 4.61%), and
5,324 homes sold and closed (up
2.94 %). June closed out with 6,796
active listings, representing a 24.40%
increase. Average and median sold
home prices edged up again from the
previous month with appreciation
gains of 2.77% to $421,266 and 1.39%
to $365,000 respectively. Days on market closed the month at 26, compared
to 31 the month prior.
For the single-family home market,
new listings jumped to 5,708 (up
13.28%) over the previous month.
Average and median sold prices
bumped up month over month with
increases of 2.92% to $466,288 and
0.25% to $396,000 respectively. Year
over year, single-family home prices
were up an average of 10.74%. The
Anthony Rael
condo market showed the supply of
new listings increased by 8.97% to
1,907 units over the previous month.
The average sold price actually
decreased 2.27% to $291,554, while
median sold prices remained mostly
unchanged with a gain of only 0.41%
to $246,000. Year over year, condo
prices were up 12.38%t for average
sold prices, and 13.89% for median
sold prices. Across the board, total
sales volume was $10.17 billion year to
date (up 7.21% compared to 2015).
DMAR’s monthly report also
includes statistics and analysis in its
supplemental “Luxury Market Report”
(properties sold for $1 million or
greater), “Signature Market Report”
(properties sold between $750,000 and
$999,999) and “Premier Market Report”
(properties sold between $500,000 and
$749,999). In June, 154 homes sold and
closed for $1 million or greater – up
18.46% from the previous month and
up 13.24%year over year. The closed
dollar volume in June in the luxury
segment was $ 230,138,832 up 17.11%
from the previous month, and up
20.88%year over year.
The highest priced single family
JULY | TWO THOUSAND-SIXTEENPAGE SIX
home sold in June was $5,275,000 representing six bedrooms, nine bathrooms and 7,736 above ground square feet
in Cherry Hills Village. The highest priced condo sold was
$3,010,000 representing three bedrooms, three bathrooms
and 2,445 above ground square feet in Denver. Both the
listing and selling agents for the two transactions are DMAR
members.
“The number of Luxury Market homes sold in June
climbed with our summer temperatures,” stated Brigette
Modglin, DMAR Market Trends Committee Member.
From May to June, there was more than a 20% increase
in the number of single-family homes sold over $1,000,000.
Year to date, there was a 19.22% increase compared to last
year and a 52.49% increase compared to 2014. Price per
square foot continues to increase as well, with the average
total price per square foot (all floors including basements)
at $264 year to date for single-family homes, which is 6%
higher than in June of 2014. The average price per square
foot for condos was $545, which is 11% more than two years
ago. “Some of the metro area’s luxury hot spots are seeing
an increase in homes priced at more than $1,000 a square
foot for above ground square footage. In the past few
years, there was one or two properties a year selling above
$1,000 per square foot, but so far this year four units at 250
Columbine in Cherry Creek North have closed at over $1,000
per square foot,” added Modglin.
Download the report here: http://www.dmarealtors.com/
dmar-real-estate-market-trends-report-jul-16
DENVER METRO
®
JULY | TWO THOUSAND-SIXTEENPAGE SEVEN
Introducing: District
REALTALK Series
Join your district for some REALTALK.
With a growing membership, having a presence on a local level is crucial in creating worthwhile change & sharing neighborhood pride. Districts support DMAR’s
mission, encourage local participation, and promote growth & unity for our membership in their respective communities.
Districts continually strive to provide
outstanding networking, educational, and professional opportunities to
DMAR’s membership on a local level. To
help assist with this ongoing initiative,
each district is introducing a new educational series, REALTALK.
REALTALK is a free, reoccurring meeting open to all members. Topics will be
presented by industry experts, covering countless areas of real estate relevant to
each district’s interests. The series is designed to educate, generate discussion, and
allow REALTORS® to network on a consistent basis.
Mark your calendar with the tentative REALTALK dates below:
North District
Every 3rd Tuesday | Beginning August 16, 2016 | 12:00 PM - 1:30 PM | Location TBD
TOPIC: Guest Speaker, Adams County Representative
South/East District
Every 3rd Wednesday | Beginning July 20, 2016 | 12:00 PM - 1:30 PM | DMAR HQ
TOPIC: Top Producer Panel, “What’s Your Business Philosophy?” featuring Aaron
Lebovic, Deviree Vallejo, John McComas, and Carl McNew. RSVP Here
West District
Every Quarter | Beginning August (Date TBD) | 12:00 PM - 1:30 PM | Location TBD
TOPIC: Guest Speaker
Central District
Every 4th Wednesday | Beginning July 27, 2016 | 11:00 AM - 12:30 PM | PPA Event
Center
TOPIC: Top Producer Panel, “How Do You Generate Leads?” featuring Bret Weinstein,
Jason Peck, and more!
What are Districts?
Districts are vital in communicating the needs of the local real estate community
and instrumental in setting direction for the entire Association. With over 6,000
members across the Denver metro area, we want to ensure that we reach everyone.
Currently, DMAR has four districts: North, West, Central, and South/East. Districts are
designed to increase the effectiveness of members’ resources and communication in
a specific geographical area. Our goal is to provide REALTORS® with the opportunity
to meet, network, develop programs and maintain a vibrant identity at a local level.
DENVER METRO
JULY | TWO THOUSAND-FIFTEENPAGE EIGHT
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Jim, the recipient of the prestigious Broker Manager of
the Year award at this year’s Excellence Awards, recently
sat down with us at Village Roaster - a locally owned coffee
spot in Lakewood that Jim specifically recommended for our
meeting. Over cups of iced coffee and green tea, Jim shared
with us his extensive work experience that spans multiple
states and industries, how he got into the real estate business, his thoughts on REALTOR® education, his paternal
managing style, and much more.
DMAR: Tell us about yourself and how you got into the
real estate industry.
James: I began building and developing in the 1970’s
in Vail, Colorado until interest rates skyrocketed in 1980.
Obviously, at that point, my partner and I decided to get
out of that market because everything was slowing down.
We moved to Denver thinking we would build there but, of
course, interest rates were high in Denver as well, so we built
one house and that was it. Construction was rather stagnant,
builders were dumping inventory, and mortgage interest
rates were as high as 17 to 18 percent.
My friend suggested I get my real estate license. I thought
it was a good idea and I was also curious to find out why I
was paying these brokers to sell our new product. I got a
license, kind of as a lark, but then realized that it was quite
fun. Eighteen months later, I bought a RE/MAX franchise and
opened the doors. When I started my company, everyone
thought I was nuts because I hadn’t been in the business
for very long and we didn’t have many sales at the time. I
leased the space where we are now at 6th Ave. and Kipling,
and started off with 2,800 square feet. I had a lot more desks
than I did brokers, but I had confidence. I’ve now been here
for 33 years.
D: Describe your job.
J: As the managing broker for RE/MAX 100, I make sure
that we offer training, provide sales skills, and review contracts. The average experience of our brokers is 20+ years, so
the management is pretty easy. I’m not looking for a hundred person office anymore. In our peak we had about 95
brokers, but I prefer to have 50 brokers who are high-quality,
good producing people. I want people I can trust. We currently have 50 brokers and we outperform other brokerages
of that size. They’re not only good people, but also good at
what they do. That’s why we’ve won numerous times at the
Excellence Awards.
D: What would you say is the most challenging part of
your job?
J: Dealing with other brokers outside of our company is
the most challenging part. Some of them just aren’t educated as well as they need to be; there isn’t an emphasis on
training as there should be.
D: What is the biggest challenge that broker managers
and owners face in the real estate industry?
J: For broker owners, I believe the biggest challenge is
simply attracting good, quality people.
D: How competitive is it to get good people to be a
part of your team?
J: I think millennials, for a while, didn’t want to get into
real estate. They didn’t have the same commitment that
brokers of our generation have. But I see that changing.
We’re seeing more and more young people come into the
industry. Personally, I only hire people referred to me by our
brokers. In regards to other companies, I’d say the biggest
challenge is to get enough people in the door to make those
transactions and pay the bills.
D: What’s the biggest business improvement you’ve
made last year, and what do you have planned in 2017?
J: Going to the Cloud for all of our documents. That was
very helpful, yet a somewhat painful transition; however, it
was a really important step. For this year, I’d like to implement better online marketing and generate more business
for our brokers, which is an ongoing challenge.
D: What are you key ingredients for running a successful brokerage?
J: Picking the right people. Our support staff is excellent
and that’s key. My office administrator and personal assistant
have both been with us for over 20 years. Having people
you can count on is critical. I think that’s the most important
element… the people.
D: What are your strategies for generating leads?
JULY | TWO THOUSAND-SIXTEENPAGE TEN
J: We subscribe to Brian Buffini’s methods for client contact, that’s the best way
to cultivate referrals from past clients. Also, more so in the last three years than at
any other time, there’s the element of people moving to the Denver area. Maybe
they don’t know anyone here, so it’s crucial to have a web presence to
attract that business.
D: What’s your definition of great customer service?
J: You have to put their needs above your own and watch out for
their best interest - if you do that, then the rest is pretty easy. Plus, you
need to know what you’re doing. You can have the greatest intentions
in the world, but if you don’t understand the whole process then you’re
not going to provide a great customer service experience, and the client won’t be happy. Our brokers understand the process and contracts
better than anyone else because of our constant training.
D: In your opinion, what is the next area of real estate that is
waiting to be disrupted?
J: (laughs) All of it. I think the entire industry has been disrupted and
will continue to be disrupted. The technology is becoming so advanced
that REALTORS® have transitioned from being the “keeper of all the
information” to “consultants.” When I started, REALTORS® held all of
the information. There was no Internet. The multi-list information was
distributed in a catalog once a week. If you didn’t make the Monday
cut-off for printing on Friday, then your listing didn’t get in until the
following week. Now that the information is disseminated so quickly,
you see markets turn quickly too. Once it’s announced that it’s a buyer’s
market, then everyone knows it’s a buyer’s market. Same with a seller’s
market, so the transition is much quicker. Before, there used to be a
period of adjustment and the market would be in equilibrium, but now
it flips and flips and flips and that’s because the information is so available.
D: What’s one hot topic in the real estate industry right now that
you’re particularly interested in?
J: I think in our local market, we have a potential for abuse with listing brokers with the whole Coming Soon thing; however, I think it goes beyond
that. What we’re seeing in the marketplace are brokers who put listings on Zillow
or Trulia before they’ll put them on REcolorado. This can create a problem, especially for buyers represented by other brokers. It can also cause a problem for the
sellers because they are not getting true exposure in the marketplace, nor full
value for their property. There is no way to know unless the property is exposed
to the market. I hear all kinds of rationale from brokers saying that the seller
wasn’t ready to show their property. If they’re not ready to show their property,
then why are they showing it to a select group of people? I think it’s a major issue.
D: Some are of the opinion that during an election year the market tends
to slow down. Do you have any thoughts on that?
J: I think that there are factors that far outweigh if it’s an election year. Interest
rates are huge, local employment is huge, and perception of the market is huge. I
don’t think the election has much of an impact. If there’s an election with a candidate who would scare the hell out of the financial industry or a candidate with an
agenda that was anti real estate, then maybe it would have more of an effect but
I’ve never seen that in my lifetime.
D: How would you describe your management style?
J: Paternal. I want to see my brokers succeed, I want to see them do business
DENVER METRO
®
continued on page 14
JULY | TWO THOUSAND-SIXTEENPAGE ELEVEN
Existing-Home Sales at
Highest Pace in 9 Years
According to the National
Association of REALTORS®, all major
U.S. regions - except the Midwest - saw
an uptick in existing-home sales last
month. As tight inventories continue
to plague many markets, the median
sales price for all housing types
climbed to an all-time high of $239,700
in May — up 4.7 percent from a year
earlier — as buyer demand outweighs
housing supply.
Total existing-home sales, which
are completed transactions for singlefamily homes, townhomes, condos,
and co-ops, increased 1.8 percent
month-over-month to a seasonally
adjusted annual rate of 5.53 million
in May. Sales are now up 4.5 percent
from a year ago and are at the highest
annual pace since February 2007. This
is the third consecutive month for
gains in existing-home sales.
“This spring’s sustained period
of ultra-low mortgage rates has
certainly been a worthy incentive to
buy a home, but the primary driver
in the increase in sales is more home
owners realizing the equity they’ve
accumulated in recent years and finally
deciding to trade up or downsize,” says
Lawrence Yun, NAR’s chief economist.
“With first-time buyers still struggling
to enter the market, repeat buyers
using the proceeds from the sale of
their previous home as their down
payment are making up the bulk of
home purchases right now.”
Yun says sales likely will maintain
their current pace throughout the
summer, assuming there are no further
decreases in job growth that could
prompt a pause among repeat buyers.
Here’s a closer look at how existinghome sales performed in May, according to NAR’s latest housing report:
•Home prices: The median existinghome price for all housing types was
$239,700 in May, up 4.7 percent from
a year ago. That also surpasses the
previous peak in median sales prices
of $236,300, set last June.
•Days on the market: Properties
spent less time on the market in May,
selling, on average, after 32 days.
That’s below the average time on
market a year ago (40 days) and the
shortest time since NAR began tracking such data in May 2011. Fortynine percent of homes sold in May
were on the market for less than a
month, also the highest percentage
since May 2011. Short sales were on
the market the longest, at a median
of 103 days in May, while foreclosures sold in 51 days. Non-distressed
homes took 30 days.
•Housing inventories: Total housing inventory at the end of May
increased 1.4 percent month-overmonth to 2.15 million existing
homes for sale. That is 5.7 percent
lower than a year ago. At the current
sales pace, unsold inventory represents a 4.7-month supply.
“Existing inventory remains subdued
throughout much of the country
and continues to lag even last year’s
deficient amount,” says Yun. “While
new-home construction has thankfully crept higher so far this year,
there’s still a glaring need for even
more, to help alleviate the supply
pressures that are severely limiting
choices and pushing prices out of
reach for plenty of prospective firsttime buyers.”
of all sales last month, down from
10 percent a year ago. Foreclosures
comprised 5 percent of sales in
May while short sales represented 1
percent of sales. On average, foreclosures sold for a discount of 12 percent below market value while short
sales were discounted 11 percent.
Regional Snapshot
Here’s how existing-home sales fared
across the country in May:
•Northeast: existing-home sales
rose 4.1 percent to an annual rate of
770,000, and are now 11.6 percent
above a year ago. Median price:
$268,600, which is 0.1 percent below
May 2015.
•Midwest: existing-home sales fell
6.5 percent to an annual rate of 1.3
million in May but are still 3.2 percent higher than a year ago. Median
price: $190,000, up 4.8 percent from
a year ago.
•South: existing-home sales rose 4.6
percent to an annual rate of 2.28 million in May and are now 6.5 percent
above a year ago. Median price:
$211,500, up 5.9 percent from a year
ago.
•West: existing-home sales climbed
5.4 percent to an annual rate of 1.18
million in May but are still 1.7 percent lower than a year ago. Median
price: $346,900, which is 7.7 percent
above a year ago.
•All-cash sales: Buyers paying in
cash accounted for 22 percent of all
transactions in May, down from 24
percent a year ago. Individual investors account for the biggest bulk of
all-cash sales. Investors purchased 13
percent of homes in May, down from
14 percent a year ago.
•Distressed sales: Foreclosures and
short sales dropped to 6 percent
DENVER METRO
®
PAGE TWELVE
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WHEAT RIDGE
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Coffee Break with James Weichselbaum
continued from page 11
the right way, and I want to see them
take care of their clients.
D: Can that paternal relationship
be challenging? How do you deal
with conflict?
J: How do you deal with conflict in
any family? What’s the conflict about?
If it’s about doing business the right
way, there is no conflict. You either do
business the right way or you don’t do
business. All of my brokers are aware
of how I want business to be done,
and that’s how they do their business.
I’m not the kind of guy who has a management style of “well, you should’ve
done this or you should’ve done that.”
Instead, if we have a problem, let’s
solve the problem and if we need to
implement a new procedure to protect
our clients from an issue, then that’s
what we’ll do.
D: Do you micro-manage, macromanage, or use a combination of the
two?
J: I’d say it’s a combination. I only
hire people who are really good at
what they do. For instance, I’m not
involved in the hiring process of
company staff, my office admin does it,
and she’s really good at it. My personal
assistant takes care of all the details on
transactions. She’s really good, I’m not.
When it comes to brokerage issues, I
don’t delegate any of that because I’m
really good at it and they’re not… and
they shouldn’t be, that’s not their function. I micro-manage broker issues,
and am hands-off when it comes to
other aspects of running a brokerage.
D: Has that changed during your
career?
J: Yeah, I used to micro-manage
everything when I started.
D: How did you learn to let go?
J: I became very busy. I could use
my time more effectively in other
pursuits and it really evolved because
I have great people who I can trust
to do a great job. If you have great
people then let them do their job!
D: What advice would you give
new brokers who aspire to be top
producers in this industry?
J: Take a long-term view, take care of
your clients, and treat everybody the
way you want to be treated - I think
that’s most important. Whenever I get
a disclosure question or an ethical
question, I just say “What would you
want to know?” then it becomes very
simple.
D: When working with a new client, how would you explain what
the role of a REALTOR® is, and how
do you train your brokers to educate
the consumer on what a REALTOR®
does?
J: We provide extensive training. We
also provide an 80-page book about
buying property in Colorado to our clients, and go through it page-by-page.
The book has a sample contract and a
sample Exclusive Right to Buy - basically all the documents they’re going
to see. It’s packed with information.
We take them through A to Z of what
our function is and what they need to
expect. I would venture to say that our
clients are more educated than most.
D: Do you disclose the fees upfront
and, if so, how do you explain those?
J: Yeah, they need to know. Where I
think you can run into conflict is when
someone’s expectations are vastly different from what transpires. We let our
clients know what we’re going to do,
what they need to know, and we set
the expectations. We probably provide
more information about inspection
than the buyer wants to know. We
go through every potential situation
that can occur with a property in
detail. That way we don’t run into the
problem where their expectations are
different than reality.
D: What would you say is your biggest professional fear?
J: (laughs) A robot that would take
over a REALTOR®’s function… but I
think we’re far from that.
D: How do you feel about technology?
J: You better embrace it. You better
get on-board.
D: Are there times when you prefer
to use technology and times when
you prefer to unplug?
J: I’m pretty much plugged-in all the
time. It’s a blessing and a curse. The
blessing is I’m always plugged-in, and
the curse is I’m always plugged-in. I’ll
answer emails at 2:00 AM on my iPad.
If I’m on vacation, I bring my laptop,
set up a hotspot, and I’m good-to-go.
It’s amazing. Technology is wonderful.
For me, it’s not really work. Work for
me was getting up at 5:00 AM, going
out in the cold, and framing houses
or tying steel, which I did. You hit your
thumb with a rig axe or waffle-head
hammer at 6:00 AM when it’s 5° below
- that’s work. I haven’t hit my thumb
in many, many years. Real estate isn’t
work to me. It’s interacting with people
and helping them achieve what they
want, whether they’re my brokers or
my clients.
D: Do you use CRM tools?
J: Buffini.
D: What puzzles you the most
about the industry?
J: Where do I begin? First and fore-
most the lack of education required to
get a license and the minimal continuing education requirements. The actual
test people take to get a license does
not relate very well to actually doing
the business. It’s too easy to get a
license.
D: Do you think that’s the drive
for some new agents? If it were
PAGE FOURTEEN
harder to get a license, would that
deter new blood from entering the
industry?
J: I’m not saying make it a Ph.D.
program, but I’m saying that 168 hours
of training is not sufficient. The industry thinks new agents will work at a
brokerage firm and learn the business
there. But if you have a brokerage firm
with one managing broker and hundreds, or even a thousand of brokers
working under that license, you tell me
what kind of training they’ll get.
D: Do you anticipate this problem
will get solved any time soon?
J: I don’t think so. Because again, it’s
a business and businesses are typically
profit-driven so the classic model is
to throw as many people in the mix
as possible, and see if they can write
a few transactions. If they stick, then
great, we’ve got a good broker. If they
don’t, it’s not so bad because we have
another car load coming in next week.
It’s a hell of way to do business.
D: What do you think are the top
three challenges that the Denver
real estate market is currently facing?
J: Inventory, inventory, inventory.
D: Do you see that changing any
time soon?
J: The market will turn and then
there will be too much inventory.
That’s just the nature of markets,
especially with the dissemination of
information. I don’t think we see markets in equilibrium for very long. They
flip pretty quickly.
D: Denver has been doing really
well for the past three years. Do you
think we’re approaching a flip or do
you think we’ll continue to have a
lack of inventory but still be a relatively healthy market?
J: I’m not sure of any market that
is healthy when it’s so skewed to one
side, but it’s great if you own real
estate. At some point we’ll reach a
level where it’s harder for people to
qualify. I don’t think we’re anywhere
near that though. If you look at San
Francisco, New York, or some of the
more expensive markets, they’re still
going.
D: What are your thoughts on
the millennials moving to Denver
who want to buy homes but can’t
because of the lack of affordable
options?
J: Well it’s a different story for
millennials from San Francisco…
we haven’t reached San Francisco
dimensions yet. Boulder has come
pretty close with plenty of places
that are $1,000/sq. ft. The old adage
is, “drive until you can afford it.” You
can’t get such a great house for $500k
in Southeast Denver, but if you go to
Frederick you can get a palace.
a financial analysis of a project eight
ways to Sunday, then a macroeconomic event will occur way outside of
their control and result in an economic
catastrophe. On the other hand, I’ve
seen guys shoot from the hip with
no preparation and have some other
macroeconomic event occur that took
them successfully over the finish line.
There is always an element of luck and
timing. In my case, there is probably a
larger element of luck and, secondarily,
my persistence.
D: How would you describe your
relationship with coffee?
J: My wife and I have two espresso
machines, just in case one breaks. I
love the Saeco machine, it makes the
best espresso. It requires nothing - no
milk, no cream - and it’s delicious. I
have a double shot of that every morning to get my day started.
D: Do you think we’ll see a shift of
millennials moving to the suburbs to
find better priced options?
J: I think that’s a maturation process
in any market. Millennials are young
and the big thing is LoDo and LoHi
- hitting up the bars and being able
to walk home. That is, until they meet
someone and start a relationship or a
family. Do they still want to be in that
environment? Probably not. There
is a natural evolution. Instead of bar
access, they want good schools, more
space, a backyard, and a bigger house.
I think we’ll see a shift to the suburbs.
D: What are your favorite activities
outside of work?
J: I used to love to sail and owned
many sailboats. Now I enjoy hiking and
spending time with my grandkids.
D: What do you think has made
you successful?
J: Persistence and an element of
luck. I have seen developers look at
DENVER METRO
®
JULY | TWO THOUSAND-SIXTEENPAGE FIFTEEN
What do Football and Real
Estate Have in Common?
It turns out the same things that make a good
football coach, make a good realty leader, too.
By Steve Murray,
publisher
A few weeks back, my wife and I took a vacation on a riverboat in Europe. While
on the boat, I met a man who was a hugely successful football coach for a successful collegiate program. Proving that one can learn something at any time, we
had a conversation about what he thought made his programs successful (at two
separate major colleges over 20+ years). Here is what he shared.
The most important behaviors for leading people, in my opinion, are just two
simple things listening carefully—really listening—and confirming what was discussed, whether you reached an agreement or not. He said in all his years working
with coaching staff and players; these were by far the two most important reasons
for his success and that of his teams.
It was also interesting to hear him say that quite often he would recruit a player
who starred at one position in high school but turned out excelling at an entirely
different position at the collegiate level. He said that when recruiting top players,
it is just as important to look at their character, drive and willingness to work as
a part of the team as it is to look at their particular skills. When he talked about
these key players, he said some of his best teams were made of young men who
played positions other than what they had previously starred in but who, through
their character and leadership skills, caused other players to want to play with
them and around them.
Given his success over a long period at a very high level, I listened carefully.
Reflecting on that, I recall some of the research we have done at REAL Trends
about what causes some firms to outperform others over long periods of times
through good markets and tough times. It seems that it all lines up. What makes
for great college football coaches also makes for great realty leaders.
Listening and confirming what was said and follow through on commitments
are what make great organizations. The words vision, trust, communication,
empowerment and support may sound like gobbledygook from a consultant’s
handbook, but everywhere we look we find that they are the cornerstones of
great organizations.
The financials, numbers and ratios only measure the output of an organization
and not necessarily the key inputs into how an organization got successful. I am
convinced that the how comes down to the key interpersonal skills of an organization’s leaders.
One last note—assuming the coach was right, recruiting talent for your brokerage, especially at the management level, may mean you look outside our industry
for the kinds of talent that will drive success in the future. It could be that we find
talented people who have led other sales organization. Also, that we structure
realty firms around talent wherever we may find it.
DENVER METRO
®
PAGE SIXTEEN
When the transition comes, you can rely on the experienced and
knowledgeable agents at North American Title Company.
The new CFPB Loan Estimate and Closing Disclosure will go into
effect on August 1. North American Title has provided in-depth
educational resources to our agents, who will be well prepared
to work knowledgeably with our customers and their clients.
Contact us today to learn how we can
be of assistance through the transition.
DownloaD our new
CFPB Forms GuIDe
NORTH
AMERICAN
TITLE
COMPANY
©2015 North American Title Group and its subsidiaries.
All Rights Reserved. | CO15-7349 R 05.14.15
Like Clockwork ®
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The Greatest
Challenge Ahead?
Are regulatory changes a bigger threat than
technological advances?
By Steve Murray,
publisher
Most say technological change is the greatest threat to brokerage. Perhaps.
What we see as possibly the greatest challenge may be in the regulatory arena.
While the Consumer Finance Protection Bureau (CFPB) certainly has our industry’s
attention, and while many believe that the mortgage interest deduction may be
amended in ways not favorable to our business, it is the myriad of state lawmakers
and regulators that may also affect the ability to do business. This also does not
take into account recent actions by the National Labor Relations Board (NRLB)
which may raise the costs of doing business for tens of thousands of brokerage
firms, nor does it consider the Federal government’s research into healthy homes.
Consolidation?
If history is any indicator, it appears that every time government and regulators
get involved with more regulation of an industry that industry consolidates faster
than it may have otherwise. Look at the market-share increases of the large banks
since Dodd-Frank was introduced. Also, look what is happening with the CFPB’s
recent attempts to regulate the payday lending industry so much that they may
cease to exist. Also, we can refer to the shrinking numbers of hospitals and health
insurance firms since ObamaCare was implemented.
Lost Market Share
In brokerage, something happened in 2015 that we have not seen
before. The REAL Trends 500 firms have historically lost market share in
strong markets and gained it back in down markets. But, in 2015, these
largest of brokerage firms gained nearly 5 percent share against the rest
of the market. Might it have to do with the CFPB chasing thousands of
small- to medium-sized brokerages to abandon their mortgage MSAs,
removing a source of profit and reducing their ability to compete with
larger brokerage firms? Only the largest brokerage firms can now add
profit and revenue from mortgage. Are they using this to compete more
effectively with medium and smaller firms that lack this source of profit?
Brokerages Being Investigated
A client of ours was investigated by their state’s department of corporations.
The regulator had no complaints, no reason to believe anything was wrong with
the brokerage. Nonetheless, this brokerage firm spent hundreds of thousands of
dollars on legal and compliance fees to make the corrections demanded by the
regulators. This is not an isolated incident. Several other states are in the process
of examining how to increase brokerage supervision, or how to further regulate
agent teams—the list is extensive.
So, while many think it’s technology that will fundamentally change our industry and the way we do business, it may be that it is government and regulators
who will do more to change the environment in which we do business.
DENVER METRO
®
PAGE EIGHTEEN
This is home.
It’s a place called comfort.
It’s called home for a reason. It’s the place where your clients feel secure, happy, and
at peace. We understand this. Through expertise and insight, our job is to help make
the wonderful idea of home a beautiful reality. For every client, for every home.
Craig Cox
303-433-0379
Jeff Hook
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303-282-5186
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Need Inventory?
TRY THIS!
By Larry Kendall,
chairman of The Group, Inc. and author of Ninja Selling
Most areas of the country are experiencing a shortage of listings, more
buyers than sellers and multiple offers.
In some markets, the pushing and
shoving are so intense it’s being called
a “Mosh Pit Market.” The companies
with the listings are controlling the
market. How do you help your team
generate more listings?
In surveying top listing Ninjas, we
find that many of them are listing
more properties than ever. How do
they do it? Here are three of their top
strategies:
1. Bring your A Game. In a hot seller’s
market, the temptation is to cheap out.
Why invest any money in professional
photography, brochures, staging or
pre-inspections? This house will sell in
72 hours with multiple offers. This is a
short-sighted approach.
Top listing real estate professionals
have a mindset that “my next listing is
embedded in this listing.” They know
that 65 percent of the buyers coming
through that house will have a house
to sell. They know that curious neighbors will also come through.
When the buyers (sellers) and curious neighbors (sellers) see a beautifully staged home, professional color
brochures, a wonderful counter display
with all the information on the home,
and a contract writing kit, what do
they think? Wow! This home is a cream
puff and this listing sale professional
is a pro. I like how they market. When
I sell, I want to list with them. Because
the real estate professional brought
her A Game, she generated her next
listing(s) from this listing.
2. Dog Days. The opposite of a cream
puff is a dog. This is a property that
has always been hard to sell. Maybe
it’s on a busy street, has an obsolete
floor plan, is in poor condition—or
all three. In a normal market, this
property has been nearly impossible
to sell. However, anything will sell in
the “Mosh Pit Market!” Top listing real
estate professionals are calling these
sellers and letting them know, “If you
have ever wanted to unload that dog,
your time is now!”
3. Buyers are sellers. Sixty-five
percent of buyers have a house to sell.
When they buy, they generate a listing.
What if they are afraid to put their
house on the market because they are
worried it will sell quickly, and they
won’t be able to buy another home?
Legitimate concern.
Ask this question, “With perhaps
the lowest interest rates in your
lifetime, are you living in the home of
your dreams?” Follow up with, “If you
could wave a magic wand and live in
your dream home, describe it to me.”
Rehearse these questions at a sales
meeting and see how it feels when
you are the buyer/seller. Discuss how,
with the low interest rates; they could
be living in that home today. How do
they do it?
our market, the average home price
has gone up over $100,000. In our
market, sellers who put 20 percent
down three years ago have seen their
equities double or even triple. Most
have equity again—big equity in many
cases. What about refinancing, pulling
money out of their current house, and
using that money as a down payment
on their dream home?
This strategy isn’t for everyone. They
run the risk of owning two homes for
a while. However, if they’re in a hot
seller’s market, the risks are minimized,
especially if they are moving up. In
most markets, the hottest segments
are the lower and mid-price points.
The higher price points tend to be
slower markets. If that is the case, they
can buy in a slower market segment
and sell in a hotter one. Again, this is
not for everyone, but top real estate
professionals are presenting the idea
to their clients and letting their clients
decide.
Real estate is like a game of
monopoly. Control the board, and you
control the game. The way we control
the board in real estate is with listings.
It’s also how we thrive in the Mosh Pit.
In most markets, prices have risen
dramatically in the past three years. In
DENVER METRO
®
PAGE TWENTY
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Enough About
Millennials
Am I the only person in the world
who’s tired of hearing people talk
about Millennials? Whether it’s a complaint about their entitlement mentality or a declaration of their brilliance, it
all strikes me as shallow and simplistic.
just as tired of self-indulgence and
narcissism as the rest of us. They’re
capable of caring for others more than
themselves and have the ability to
enjoy team success more than individual achievement.
Now, I do not deny that every generation has a few things that make it
unique. Today’s young people get their
information differently than I did. I get
that. And they communicate with one
another using different devices than
I did. No doubt. And I agree that they
have different expectations around
employment than I did. But isn’t that
true of every generation? Why is it
that we seem to be fascinated with
this new collection of human beings,
as though they come from another
planet?
Another critical virtue is hunger,
the desire and willingness to work
hard, to go above and beyond what
is required for something worthwhile.
While paper routes and lawn-mowing
businesses for teenagers may seem
like a thing of the past, hard work and
sacrifice is alive and well among young
people. The question is whether or not
they’ve ever been made to work hard.
I’m convinced that a large percentage
of people in any demographic group,
including Millennials, are capable of
hard work, and a certain percentage
are destined to be slackers. The key
is finding the right ones to hire, and
weeding out the others.
My fascination with all this is related
to my most recent book, “The Ideal
Team Player,” because it has ramifications on how we go about bringing
Millennials into a workforce that is
increasingly team focused. There
seems to be a fear on the part of
recruiters and hiring managers that
they’ll be forced to deal with hordes of
self-focused, isolated and lazy geniuses
who are incapable of working well
with others.
As it turns out, there is a better way
to think about hiring good people
than focusing on a person’s generational stereotype. It comes down to
looking for three simple, timeless and
observable virtues that are reliable predictors of whether someone of any age
will be a good team player. Thankfully,
while generations change, the nature
of teamwork does not.
The first and most important of the
three virtues is humility. And yes, plenty of Millennials are humble. Humility
is a timeless virtue, one that society
will always yearn for, even when its
celebrities and cultural icons seem to
renounce it. Plenty of Millennials are
By Patrick Lencioni,,
founder of The Table Group
are humble, hungry and smart, will
have no problem with them, or with
any other generation for that matter.
In the spirit of this current generation, I’ll close with a tweetable summary: Teamwork is not limited to any
one generation. Millennials aren’t so
special. In fact, they’ll be just fine.
______________________
Patrick Lencioni is founder of The
Table Group and author of several books including, “The Ideal Team
Player,” and “The Five Dysfunctions of a
Team.”
The third virtue that indicates that a potential new
hire will be a good team
player is what I call smarts,
which is having common
sense about people, and
knowing how one’s words
and actions impact others.
While it may be true that
Millennials have spent a
disproportionate amount of
their time using abbreviations and Emojis to communicate, it
doesn’t take long for them to adjust
when they realize that the guy or
gal sitting next to them in a meeting
needs a little eye-contact and emotional connection. All human beings,
yes, even teenagers, yearn for interpersonal connection and are capable of
embracing it.
And so, let’s take a breath and realize
that our society, and our economy, will
survive the onslaught of Millennials.
Companies that place a high priority
on teamwork, on finding people who
DENVER METRO
®
PAGE TWENTY-TWO
CEO CORNER
Alex Lange, CEO, Upstream
Lessons remembered—learn from leaders
where tomorrow’s opportunities and threats lie.
By Steve Murray,
publisher
“It is the culmination of my life’s work.”—Alex Lange
One of the greatest new developments of the past few years has been Upstream,
a brokerage industry effort to streamline listing and sales data and how it moves
around the online world. It is a huge project with many moving parts and stakeholders. Thus, the selection of its founding CEO was critical.
Alex Lange, who has a long background in technology, start-ups, venture funding
and the residential real estate brokerage business, was selected. Alex is well known
in the business and has held significant roles with such firms as Art.com, Roost,
Market Leader and 21st Century. REAL Trends caught up with Alex to ask about his
new role. Here’s what he said:
Lange: Some people asked me why I would accept this position when my background was about venture-funded deals where there is an exit plan. Upstream has
no exit plan, no plan to sell to anyone at any time. My answer was simply that this is,
in fact, the culmination of my life’s work.
I feel like I understand and have a feel for technology, especially in residential
real estate. I think I have a pretty good feel for residential brokerage firms and their
agents, and how the business actually functions. Plus, I think I have a good feel for
the interaction of brokers, agents, their data, MLSs and the Realtors®. While I will
meet many people and learn more about these areas, I believe I have a good foundation.
This is a tremendous undertaking and not done in some traditional way. In ordinary tech start-ups, one has to get funding, acquire hardware, build a development
and sales staff and all the rest. In this case, Upstream is developing its tech underpinning through our contract with the National Association of Realtors® and with
technology that has already, to some extent, been field tested. Many of the leaders
of that unit are people I know. While there will be selling to do in the future, much of
what first has to happen externally is communications—with the Upstream board,
other broker-age groups and networks, MLSs, Realtor associations and others.
I love to build things, and this is a huge, important project to get built. This is the
ultimate challenge, and one that I think will keep our team and me busy for many
years ahead. Not having some of the usual challenges of start-ups, I can focus on
building a small, focused team, getting our technology built through the NAR team
and reaching out to the brokerage community. From my point of view, Upstream is
all the really enjoyable parts of a new company without the other parts.
It is also cool when you see all these highly competitive brokerage firms working
together to make Upstream successful. They are dedicated to seeing it to its finish, to
having every brokerage and agent in the country have access to its benefits, regardless of size, model or brand. These are some smart, successful people, and they want
this to succeed. I am going to do everything in my power to see that that is what
happens.
Yes, it’s different than normal start-ups, but as I said, the best parts are what I will
get to do. It gives me a chance to do something important and large that will
have a positive impact on how the whole industry works
DENVER METRO
®
PAGE TWENTY-THREE
Class Action Plaintiffs Must
Suffer Concrete Harm to Prevail
Federal consumer protection statutes have long been
attractive targets for plaintiffs’ attorneys because of
the potentially large statutory damage awards.
In 2012, many in the real estate industry anxiously awaited a U.S. Supreme
Court ruling in the case of First American
Financial Corp. vs. Edwards. For the first
time, the Court was expected to resolve
a dispute among federal circuit courts
over whether a plaintiff in a Real Estate
Settlement Procedures Act (RESPA)
lawsuit lacks standing to sue because
he or she had not suffered an “injury in
fact.” But the Supreme Court ultimately
decided, without explanation, not to
issue a decision.
on Spokeo’s website.
The district court dismissed the case
because Robins failed to allege that he
suffered any “actual or imminent harm.”
But the Ninth Circuit Court of Appeals
reversed on grounds that the violation of
a statutory right alone was sufficient to
give him the standing needed to pursue
the action. Spokeo appealed to the U.S.
Supreme Court.
The Supreme Court Opinion
Spokeo involved a claim under the
Fair Credit Reporting Act (FCRA), but it
represents a turning point in class action
litigation under other federal consumer
protection laws such as RESPA, the Truth
in Lending Act (TILA), the Telephone
Consumer Protection Act (TCPA), and
the Fair Debt Collection Practices Act
(FDCPA).
In a 6-to-2 decision, the Supreme
Court held that the Constitution requires
that a plaintiff suffers an “injury in fact”
to prevail in a federal court. The injury
need not be tangible, but it must be
both concrete (a harm that actually
exists and is not abstract) and particularized. The basis for the Ninth Circuit’s
holding—that the injury alleged was
personal to the plaintiff—satisfied the
particularity requirement, but it did not
address whether the injury was concrete.
The Court vacated the decision and
remanded it back to the Ninth Circuit to
address whether there was a concrete
injury.
The Spokeo Facts
Why Spokeo is Important
Thomas Robins sued Spokeo, a search
engine that allows users to conduct a
computerized search of an individual’s
personal information. Robins claimed
that Spokeo violated the FCRA by publishing inaccurate information about him
on its website. While the search results
associated with his name incorrectly indicated that he had more educational and
professional experience than he had and
that he was better off financially than he
was, Robins claimed the inaccurate information harmed his job prospects. He
asked for statutory damages under FCRA
on behalf of himself and every other
individual whose information appeared
Federal consumer protection statutes
have long been attractive targets for
plaintiffs’ attorneys because of the potentially large statutory damage awards.
They arrange for an individual to file an
action on behalf of a large potential class
alleging a violation(s) of a federal statute
that makes statutory damages available.
The individual plaintiff bases his or her
standing to sue on the mere fact that the
statute was violated and requests class
certification on the premise that others
in the class were commonly affected.
Four years later, on May 16, 2016, the
Court ruled in Spokeo Inc. vs. Robins that
a plaintiff must suffer “concrete” harm to
bring a private action in a federal court
under a law that provides for statutory
damages.
By Sue Johnson,
strategic alliance consultant
a plaintiff suffers actual economic or
emotional harm to recover damages.
Proof of the statutory violation by itself is
claimed to establish everything the class
needs to prevail: standing, liability, and
entitlement to statutory damages.
The decision in Spokeo eliminates the
no-injury class action. Plaintiffs’ lawyers
will now be required to show that the
plaintiff and each class member suffered
“real harm” or a “risk of real harm” (not
possible real harm). To the extent the
alleged harm is intangible, they will need
to demonstrate that it “has a close relationship” to a harm that traditionally has
been recognized in English or American
courts, and/or that Congress made a
judgment when passing the law that an
intangible harm is sufficient.
The Ninth Circuit’s ruling on remand
will help further define what it means
to sustain a concrete injury for federal
courts within its jurisdiction (Alaska,
Arizona and California). The Spokeo
decision also is limited to standing in
federal courts. Many of the federal laws
impacted can also be brought in state
courts, and it will be up to each state to
decide whether plaintiffs in their courts
must prove that there was concrete
harm.
But the bottom line is that the
clarification sought in First American
over whether plaintiffs need to suffer
actual damages has been realized in
Spokeo. Plaintiffs now have to find new
arguments to justify standing in federal
“no-injury” class actions.
Until now, the class action bar has
benefitted by the failure of Congress to
specifically require in these laws that
DENVER METRO
®
PAGE TWENTY-FOUR
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*14 business day guarantee only applies to purchase transactions. This guarantee does not apply to Reverse Mortgages, FHA 203k, VA, Bond, MCC, loans that require prior approval from an investor, or brokered loans. The guarantee does
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** Only available in CA. NMLS #6606. All products are not available in all states. All options are not available on all programs. All programs are subject to borrower and property qualifications. Rates, terms and conditions are subject to change
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PHONE (800) 450-2010. All Rights Reserved. 5/2016
Developing a Technology and
Marketing Plan for Your Company
Did you know that most U.S. brokers
don’t have a plan when it comes to
their technology and marketing? Sure,
they have technology and marketing,
but there is no shared vision between
the two. Some organizations run
flat, with many people meeting and
controlling everything, only bringing
to the table what they find interesting.
This type of brokerage is susceptible to
the shiny penny syndrome. Other brokerages run in linear silos with people
in charge of respective areas but not
coordinating or communicating with
each other.
Here is a simple exercise that we recommend each brokerage complete to
get a handle on what they are spending, where, what the return on investment is, how you use these efforts for
recruiting, what lead sources and rules
you have and, ultimately, your plan.
First, organize anything technology
and marketing into four areas:
1.
Technology Initiatives
2.
Marketing Initiatives
3.
Leads Initiatives
4.
Recruiting Initiatives
You may be asking yourself, “Why
is recruiting on the list?” Recruiting
today is largely a byproduct of the
three areas that precede it on my list.
Without clarity in the first three areas,
your recruiting managers have a hard
time telling your story. Without clarity, your efforts in those areas blend
with every other firm in your market.
This is one reason why E-edge from
Keller Williams made such big waves.
They were one of the first firms to add
clarity and message around what they
were doing in the first three areas
on the list above. So, yes recruiting
belongs here. More specifically, the
person in charge of recruiting needs
to communicate clearly with the other
three areas to develop a concise value
proposition and use those other areas
to drive home your value proposition
to potential recruits. The problem with
most organizations is that recruiting is
done in a silo, and they don’t get the
help from the other areas.
Build the Foundation
Let’s talk about leads. In the next
three areas, we have a great exercise
every firm should do and repeat
every six months. Build yourself a lead
matrix. Use a google doc/sheet or an
Excel file and make it simple. Track
every lead source in your organization.
If you get a name, email address or
phone number, then it goes in as a
lead source. Lead sources include your
website, listing portals, MLS, mobile,
sign riders, customer service desk,
relocation, etc. Any name or opportunity is placed in this spreadsheet.
Then, add a field for estimated
monthly volume, cost, comments/
feedbacks, and what do you currently
do with the leads. If you have closing
information, place it here as well. This
will act as the foundation for your
leads strategy. Whoever is in charge of
this area will update this doc every six
months. They will then set three attainable goals every six months to work
towards. For their area. This evolving
message is then relayed to Recruiting
for use.
Marketing Leads
You may think marketing and leads
are the same. In some organizations
they are, but they should be separated.
In the marketing section, repeat the
above exercise and build a marketing
matrix. This is a spreadsheet where
you track marketing sources, number
of visits, impressions, clicks, followers
and other pertinent information.
Start with your website, social media,
digital marketing campaigns, listing
syndication and more. Anything that
By Travis Saxton,
vice president of technology
has eyeballs on your brand or listing
goes into this spreadsheet. The more
detailed you are, the better. Think of
this as more outbound and leads as
inbound. Tackle three goals every six
months with clear, measurable success
KPIs. This is then relayed to leads and
recruiting.
Technology Initiatives
Finally, you have the technology
initiatives. Create a technology matrix
that lists every technology penny
you spend. The slight overlap is with
marketing where the website and
agent websites should be in here. This
is small; however, and the goal is to
see the landscape of your technology.
But, in this matrix, you want fields such
as cost or cost per month, agent adoption of tools, training initiatives, last
training held, perception and more.
Your goal is to see which technology
is being used. This offers you coaching
and training ammunition and sets the
foundation for the brokerage to add or
subtract technology.
In the end, you have the four pillars
for getting your technology and marketing under control and ultimately
the foundation for a great recruiting
and retention strategy. Clarity and
shared vision across your organization
are important, and this exercise will
help you achieve that.
DENVER METRO
®
PAGE TWENTY-SIX
Make Your
Marketing Count
Traditionally, marketing a product or service consisted of putting out a message
to the masses with the hope that the broadcast message would attract a handful
of individuals who would pursue the product or service further. This old school
style of marketing is comparable to a sales
funnel or marketing pipeline. There would be
a large number of people who see the ad and
eventually the campaign will sort out those who
are not interested.
By Paul Salley,
marketing strategist
With today’s digital marketing capabilities,
traditional marketing has been reversed. This
strategic style of marketing is known as reverse
marketing. We start at the bottom of the funnel and advertise directly to those who we
know have an interest in our message. It’s the
traditional sales/marketing funnel turned upside
down. The technology that makes this marketing
dream a reality has to do with sophisticated ad
platforms that can tap into a user’s browser and
online activity history.
Some examples of platforms that have this
capability include Facebook, Google AdWords
and REAL Trends’ predictive marketing solution.
All of these platforms have the ability to segment users into different audiences. One example of how to use this technology
is to create an audience that is based only on visitors to a specific page of your
website and market directly to that audience with an ad message relevant to that
webpage.
Another strategy is to market to an audience based on their browsing history.
On the REAL Trends predictive marketing platform, there is an audience list known
as real estate intenders. That list is comprised of those who previously visited a
real estate-specific website. This real estate intenders filter coupled with location
and demographic parameters creates a very hyper-targeted audience that can be
shown an ad that is specific and relevant to that audience, thus driving up clicks,
conversions and, ultimately, quality leads.
When reviewing your company’s marketing dollars and strategy, take advantage
of the potent digital marketing tools now available to drive quality leads and
more business. In addition, achieve results and a return on your investment with
sophisticated digital marketing platforms that allow you to gauge exactly what
is working and what is not. This takes the guesswork out of how and to whom to
market. Most marketing tools that offer segmented audiences can have effective
campaigns starting at around $150 per month. However, remember that the
higher the budget allocated to these platforms, the greater their performance will
be.
DENVER METRO
®
PAGE TWENTY-SEVEN
Todd Olson
Retail Sales Manager
NMLS ID: 514815
303-960-8012 Mobile
todd.olson@bankofamerica.com
Beth Anderson
NMLS ID: 501302
720-529-6328 Office
beth.anderson@bankofamerica.com
Kim Genevay
NMLS ID: 514785
970-260-9976 Mobile
kim.genevay@bankofamerica.com
Western Slope
Paula Bishop
Senior Mortgage Loan Officer
NMLS ID: 609778
970-379-9636 Office
paula.lamberti@bankofamerica.com
Aspen / Mountain Region
Jessica Castillo
Mortgage Loan Officer
NMLS ID: 1136952
720-390-2081 Mobile
j.castillo@bankofamerica.com
Cherry Creek Financial Center
Chris Hegeman
NMLS ID: 595253
303-335-7367 Mobile
chris.hegeman@bankofamerica.com
Gregg Hamilton
NMLS ID: 271875
720-539-6602 Mobile
gregory.hamilton@bankofamerica.com
Mike Countryman
NMLS ID: 608181
720-529-6312 Office
mike.countryman@bankofamerica.com
Glenna Maltby
Mortgage Loan Associate
NMLS ID: 514803
720-529-6301 Office
glenna.maltby@bankofamerica.com
Peter Rodriguez
NMLS ID: 514816
303-495-8824 Mobile
peter.d.rodriguez@bankofamerica.com
Ryan Lovell
NMLS ID: 561458
720-529-6337 Office
ryan.lovell@bankofamerica.com
Connect with a local mortgage specialist
If you’re planning to purchase a home or refinance your current home loan, talk to an
experienced mortgage specialist who’s right in your neighborhood. You’ll get help every step
of the way, from application to closing. Because we’re close to home, you can contact us in
person or over the phone, whatever is most convenient. You can count on us to answer your
questions, keep you informed and help you find the home loan that’s right for you.
Contact one of us today to get started.
Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to
change without notice. Bank of America, N.A., Member FDIC. l Equal Housing Lender. ©2015 Bank of America Corporation. HL-107-AD 05-2015 ARCV5TMX

denver metro - Foley Publications, Inc.

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