STRENGTHEN YOUR FINANCES - Tips to Better Manage Your Money - Texas REALTORS
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July 2020 STRENGTHEN YOUR FINANCES Tips to Better Manage Your Money p. 22 Get More Referrals p. 28 REALTORS ® With Podcasts p. 18 Extra Income From Rentals p. 9 SH A PI NG T E X AS 1920-2020
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TEXAS REALTOR Texas REALTORS ® July 2020 Even while sheltering in ® July 2020-Volume 73-Number 6 place, REALTORS® have ADVOCACY CINDI BULLA Chairman of the Board MARVIN JOLLY Chairman-Elect been advocating to protect RUSSELL BERRY Secretary/Treasurer TRAVIS KESSLER CEO consumers, professionals, ANGELA BRUTSCHÉ VP of Comm. & Mktg. MARTY KRAMER Editor-in-Chief WARD LOWE Assoc. Dir. of Communications During COVID-19 and the real estate industry. MICHAEL SCHRANTZ Digital Marketing Manager JOE OLIVIERI Assistant Editor 18 JOEL MATHEWS Art Director JOSHUA BANKS Senior Graphic Designer CHRIS NELSON Graphic Designer CHANGE OF ADDRESS OR EMAIL Members should always send postal address or email changes to their local association. 22 FEATURE STRENGTHEN YOUR FINANCES CONTACT THE EDITORS editor@texasrealtors.com 512-480-8200 by Joe Olivieri FEATURE P.O. Box 2246 How you manage READY, SET, RECORD Austin, TX 78768-2246 your money can be as by Joe Olivieri ADVERTISING SALES Mohanna Sales Representatives important as how much As podcasts have become 214-291-3648 you earn. Learn from a more popular medium, texasrealtorsinfo@mohanna.com Texas R EALTOR ® (ISSN 1068-1248) is REALTOR® and Certified REALTORS® are finding published monthly except combined issues Financial Planner ways to use this platform in Januar y/ Febr uar y and Septemb er/ October by Texas R EALTORS®. ENSURE REAL ESTATE IS AN ESSENTIAL SERVICE Stephanie Blakes some to get their messages POSTMASTER Send address changes to: statewide to protect real estate transactions of the ways you can and information to more Texas REALTOR® magazine improve your financial prospects. Read about their Attention: Membership P.O. Box 2246 situation and better experiences and learn some Austin, TX 78768-2246 plan for a secure future. tips to start your own show. Periodicals Postage Paid at Austin, TX, and PROVIDE GUIDANCE for serving COVID-19 Resource for Real Estate Brokers Updated: May 5, 2020 As leaders in our Texas communities, REALTORS® are committed to supporting the health and safety of our citizens. With that in mind, Texas REALTORS® urges all brokerag- es to follow the minimum standard health protocols recommended by the Texas Depart- ment of State Health Services. Texas REALTORS® advises all members to use technology and other services to work remotely whenever possible, including showings and open houses. In addition, brokers should check with their MLSs for information regarding rule changes that have been implemented as a result of local conditions. at additional mailing office. Annual dues of The following guidelines are designed to help brokerages navigate through the rapidly evolving circumstances associated with COVID-19. When determining how to address new issues, brokers should identify solutions that will best serve clients while also demonstrating care for the health and well-being of clients, agents, and the greater public welfare in reducing risk of exposure and spread of COVID-19. Working with Clients • When working with clients, be sure to consider restrictions and protocols that are in place. While real estate continues to be classified as an essential activity statewide, keep health clients safely and responsibly and safety top of mind when conducting business. Communicate with clients to determine their needs and how you can meet those needs under these rules. • Establish protocols for interacting with clients that meet the minimum standard health members of the association include $5 for protocols recommended by the Texas Department of State Health Services—for example, training staff and agents on appropriate cleaning and disinfection, hand hygiene, and re- spiratory etiquette. You may ask clients about recent travel; however, any and all screen- ing questions must be presented consistently to all clients, and questions must be based on current, factual information from public health authorities. • Texas REALTORS® has created a Model COVID-19 Certification for Property Access form that a brokerage can adopt for use when a potential buyer or other service provider will access the property for a viewing or other transaction-related service. • Familiarize yourself with the type of coverage included in your insurance policies as they pertain to issues arising out of COVID-19 and reach out to your insurance broker if you have questions. Transaction Issues • A seller whose residential property is under contract must allow access to the property by the buyers and the buyers’ agents at reasonable times. The parties should discuss imple- a one-year subscription to Texas REALTOR®. menting procedures for all visitors to the seller’s property in line with the minimum stan- dard health protocols recommended by the Texas Department of State Health Services. The COVID-19 Guide for Real Estate Brokers is intended to be informative with respect to conducting real estate activity during the COVID-19 pandemic. The information provided herein is not intended to be legal advice nor should it be construed to be the only approach to dealing with COVID-19 issues. Annual subscription rate to others: $25. Single copy rate to others: $3.50. Office of publication: 1115 San Jacinto Blvd., #200, Austin, TX 78701-1906; mailing address: P.O. Box 2246, Austin, TX 78768-2246; phone: 512-480-8200; fax: 512-370-2390. PROVIDE RECOMMENDATIONS for conducting INSIGHTS All articles and paid advertising represent the in-person real estate license exams 4 Chairman’s column: 10 What to know about email opinions of the authors and advertisers, and do not necessarily represent the opinions Working together for security jargon of the editors of Texas R EALTOR® or the a better future association and should not be construed as Multigenerational homebuyers a recommendation for any course of action in Texas 21 regarding financial, legal, or accounting matters by the association or Texas REALTOR® SHARE INSIGHT into impacts on real estate industry and Ads that promote you and its authors. how REALTORS have adapted to serve clients safely 11 Create CMAs on the go Contributions are not deductible for federal ® 5 Texas REALTORS® Commercial income tax purposes. Contributions to the Homebuying challenges for Asian Texas REALTORS® Political Action Committee gets top NAR accreditation (TREPAC) and the Texas Association of Americans and Pacific Islanders FEATURE REALTORS® Federal Political Action Committee Teaching property taxpayers FIND THE RIGHT TECH FOR YOU (TAR FedPAC)—which makes contributions to the REALTORS® Political Action Committee REAL ESTATE PROFESSIONALS ARE ELIGIBLE FOR about the process Easing the stress of working (RPAC)—are voluntary and may be used for by Michael Schrantz political purposes. The amount indicated is FEDERAL RELIEF, including small business loans and from home Practical steps you can take to find merely a guideline, and you may contribute One text could win you $500 more or less than the suggested amount. You unemployment insurance the technology apps, hardware, and may refuse to contribute without reprisal, and the National Association of REALTORS®, Texas Nominate a REALTOR to Watch ® LEGAL & ETHICS vendors that will help you most. REALTORS®, and its local associations will not favor or disadvantage anyone because of the Pro-real estate candidates in 12 Stay within your amount contributed. Until the RPAC annual goal is met, 70% of an individual’s contribution ADVISE STATE LEADERS on reopening government July 14 elections insurance coverage goes to TREPAC and may be used to support state and local candidates; the remaining 30% offices for real estate consumers 13 Anonymous ethics complaints is sent to TAR FedPAC to support federal 6 Texas REALTOR reader ® candidates and is charged against your limits under 52 U.S.C. 30116. (Exception: 100% of survey results Your forms: The Buyer’s Walk an individual’s contribution goes to TREPAC if the individual is an employee of an affiliate Avoiding bias in your Through and Acceptance Form member of Texas REALTORS®.) After the RPAC annual goal is met, 100% of an individual’s PROTECT REAL ESTATE LICENSE HOLDERS daily business contribution goes to TREPAC and may be used to support state and local candidates. seeking renewal and applicants 14 What forms can in-house 24 attorneys draft? You may contact the Texas REALTORS® political committee administrator at 800-873-9155 to obtain information about your contributions. BUSINESS FEATURE Unlicensed assistants asking TEXAS REALTORS® CENTENNIAL: Federal law prohibits TREPAC and FedPAC 8 Selling existing homes near about representation GREETINGS FROM 1920 from soliciting contributions from persons not included in the following groups: Members of EXPAND NOTARY SERVICES new construction How much was a home worth a century ago? What was the association, executive and administrative for real estate documents 15 Riba-free mortgages personnel of the association, and the families of both groups. Contributions received in 9 Make more money from life really like? And what were some of the highlights in relation to this publication from a person rental properties Texas and U.S. business, politics, and current events SHARE THIS COVER: © iracosma - stock.adobe.com outside of these groups will be returned. ©2020 Is demand rising for when Texas REALTORS® was formed in 1920? Texas REALTORS® rural properties? 27 How REALTORS® help clients All rights reserved. See Texas REALTORS® resources, updates, FAQ, and other content related to COVID-19 Powerful, exclusive market TAKE 5 data for you at texasrealestate.com/coronavirus 28 Get more referrals #TREPACTogether
TEXAS REALTORS PRO-REAL ESTATE CANDIDATES ® EARNS TOP NAR IN JULY 14 ELECTIONS Chairman COMMERCIAL “ Greetings, Texas REALTORS … ACCREDITATION ® We kicked off our centennial year celebration at our Winter Meeting in Austin by reading the preamble to our Code of IN 2020 Ethics. Of the community impact of our profession, it says, “Such interests impose obligations beyond those of ordinary commerce. Texas REALTORS® has earned a 5-star Commercial Services They impose grave social responsibility and a patriotic duty to Accreditation from NAR—the highest level of recognition. The which R EALTORS® should dedicate themselves... .” accreditation recognizes associations that develop commercial During that same meeting, we began the process of updating services and commercial member engagement opportunities. Texas our strategic plan, including further enhancement of a diversity, REALTORS® is one of only two state REALTOR® associations to earn equity, and inclusion initiative begun years earlier. Since the 5-star accreditation in 2020. The 5-star designation comes with You may have another chance to support pro-real estate candidates this then, the virtual Today, Tomorrow, and Beyond meetings our a $5,000 grant from NAR for commercial programming at the state month if you live in a district holding a primary runoff election, or a special Leadership Team has held with local associations of R EALTORS® level. To achieve the various levels of recognition, local and state election in the Austin area. and other groups have opened with emphasis on the social associations of REALTORS® must reach benchmarks in commercial Candidates who didn’t receive at least 50% of the vote in the March responsibility inherent with the exponential growth of our services governance, communications, education, advocacy, technol- primary elections will be back on the ballot in the July 14 runoff elections. community and public policy influence. Stronger fair-housing ogy, association involvement, and member/community involvement. The winners of these races will be their respective political party’s nominee initiatives and partnerships were created at all levels of our in the November general election. organization. We enhanced communication and collaboration There will also be a special election on the ballot July 14 for Texas efforts with strategic cultural partners. Despite these and other Senate District 14 in Austin. efforts, the events of the last few months tell us we still have TEXAS TREPAC and RPAC have supported a total of nine pro-real estate much to learn from one another and more work to do within candidates for the July 14 elections—seven at the state level and two at REALTORS ® our communities. the federal level. WE ARE CHARGED WITH As community leaders, we are charged with bringing voices Early voting began June 29 and ends July 10. of compassion and reason into the difficult social conversations RAMPS UP Visit texasrealtorssupport.com to see the REALTOR® -supported BRINGING VOICES OF that lie ahead. We are experts at bringing people together. Please candidates on your ballot. COMPASSION AND REASON continue your amazing work as brokers of equity, inclusion, TAXPAYER and diversity. Continue to lead with love and empathy. To INTO THE DIFFICULT our members of color who perform the complex duties of our EDUCATION profession and provide community leadership, often while The REALTORS® to Watch award recognizes SOCIAL CONVERSATIONS enduring vestiges of persistent racial inequities, we hear you. CAMPAIGN NOMINATE excellence in leadership, community We will not forget the stories you have shared with us. We will involvement, and everything else that A REALTOR ® THAT LIE AHEAD. help you share them with others, and we will all work together After years of fighting for property tax reform, your support brought makes a well-rounded young professional to make this world a better place. #ShapingTexas a huge win for Texas taxpayers last year with the passage of Senate successful in real estate. Honorees receive Bill 2, the Texas Property Tax Reform and Transparency Act of 2019. TO WATCH recognition in Texas REALTOR ® magazine, The association is getting the word out to help Texas taxpay- Deadline is July 15 on Texas REALTORS® social media channels, Cindi Bulla ers understand property tax basics and what has changed with at the Texas REALTORS® Conference, and the new laws. complimentary registration to attend Property taxes are collected by local governments to pay for com- REBar Camp Texas, an exciting education Photos: © LIGHTFIELD STUDIOS,© godshutter, © dianagrytsku, © kite_rin - stock.adobe.com munity services such as schools, roads, and emergency response. and networking event hosted by the The Texas REALTORS® statewide advertising But the local officials who set the tax rates that determine your Texas Young Professionals Network. YOUR STATE ASSOCIATION campaign that launched in June tells consumers property tax bill aren’t the only ones with a role in the process. In Any Texas REALTOR® under the age of about the value you bring to clients and your fact, the most important person is you, the taxpayer. 40 can apply. Learn more and see the IS PROMOTING YOU community. This year’s advertising uses the Look for information in the coming weeks about how you and REALTORS® to Watch from previous years popular messaging from NAR’s That’s Who We your clients can get engaged in this process. at texasrealestate.com/ypnaward. R campaign, with a focus on the statement that REALTORS ® Are Your Reliable Resource in Real Estate. Many ads also explain that not all agents are REALTORS®, so it’s important to Did you know you can advocate for REALTOR® Look for the R. ONE TEXT COULD issues … by text? Just sign up to receive Ads are running on websites, online search, REALTOR® Party Mobile Alerts by texting txrealtors social media, billboards, and traditional and WIN YOU $500 to 30644. If you sign up by July 31, 2020, you’ll internet radio. Spanish versions of the ads also be entered in a drawing to win $500. Visit are running in many markets. texasrealestate.com/text for complete rules. 4 TEXAS REALTOR ® | July 2020 July 2020 | texasrealestate.com 5
BFS Home Warranty “Our Trucks, Our Techs, Your Peace of Mind” AVOIDING BIAS WHAT YOU SAID ABOUT IN YOUR DAILY ✓ Repair TEXAS REALTOR MAGAZINE ® ✓ Replacement BUSINESS May 2020 WHAT YOU ✓ No Subcontractors Thank you to the 1,238 members of Texas REALTORS® who took this year’s magazine readership survey. Editorial staff CA N DO 9 Tips for Chal NOW lenging Times ✓ Plans Starting at $300 ✓ No Deductible Option p.18 read all 37 pages of open-ended comments—an amount that 100 Years of Legislative the independent research firm called “rather extraordinary” Advocacy p. 24 Why Negotiation REAL ESTATE E&O Shouldn’t be s and that indicates a highly engaged readership. Adversarial p. 22 HUD Guidance on Assistance Your feedback and comments help association staff June 2020 Animals p. 14 SH A PI NG T E X AS learn what you like, what’s not useful, and what you’d 1920-2020 Comprehensive like to see in the future. Austin/ San Antonio & Here are a few key results, along with a sample of Two Industry Experts Share Errors & Omissions Dallas & Surrounding Surrounding Areas: Houston & Surrounding reader comments: Insights on Where Texas Real Estate Goes From Here Comm p. 16ercial Transaction of the Year p. 15 COVID-19 INFO Coverage for Areas: Laquita King Areas: Real Estate Professionals FOR • 87% Regularly read Texas REALTOR® REAL ESTATE Darren Hiller Nadine Morella p. 21 (more than half the issues) Meet TREC’s Executive Director p. 22 April 2020 Direct: (512) 948-8564 Direct: (214) 566-1188 Direct: (281) 831-8468 Step Away From the Seller’s Disclosure Notice p.14 • 52% Discuss articles or ads with colleagues or clients Do Smart-Home FAIR HOUSING Devices Convey? p.12 reoadvisors.com SH A PI NG • 55% Visit texasrealestate.com based on something T E X AS It Only Works If Give your clients the benefits of Seller’s Coverage today! 1920-2020 You Do Your Par from the magazine t p. 18 800.362.9952 • 67% Read print only • 25% Read print and digital IS AN EMAIL AN sales@reoadvisors.com BFS Home Warranty • www.BFSHomewarranty.com • 1-800-237-9910 ENFORCEAB CONTRACT?LE • 8% Read digital only p. 12 SH A PI NG T E X AS MOST POPULAR TOPICS 1920-2020 • Working with clients/prospects • Legal and ethics • Involvement in local/statewide/national issues related to real estate A SAMPLE OF THE HUNDREDS OF COMMENTS I copy, send, or talk about at Despite your best intentions and without your awareness, racial PERSONAL PROTECTIVE EQUIPMENT least one article in every edition. stereotypes and assumptions creep into your mind and affect your actions. Good that it is also in digital format. It’s called implicit bias, and NAR has Is Now In Store For You Sometimes relevant, sometimes not. partnered with the Perception Institute I use articles in my sales meetings and training. to help REALTORS® overcome it. I often use the articles to create A 50-minute video illustrates conversations with clients and prospects. Online content is more important. how the human brain’s automatic We always review the fresh copy I am in education so often refer agents to the magazine. association of stereotypes with Remaining safe while conducting business is a high priority, and essential in our Tuesday sales meetings. particular groups can cause people More technology … how to use apps. to treat those who are different from protective items have become a challenge to find. The Texas REALTORS® More commercial. online Store now offers face masks, hand sanitizer, gloves, and wipes — I use it for office training as well. them unfairly. The video applies these It’s one of the few magazines I read. concepts to the work of REALTORS® and exclusively for REALTORS®. Good length. Short articles. We do a monthly trivia with items from Texas REALTOR ® magazine. offers strategies to override this bias. I learn something with every issue … I find articles about real estate practice You also can learn more about Visit texasrealtorsstore.com to purchase your personal protective care. Great magazine! your individual implicit biases by more helpful than human interest taking an Implicit Association Test, Good balance of sales, marketing, legal, or REALTOR® bio type articles. and property management. developed by Harvard University. I look forward to receiving this each There are several tests that measure Questions about the Texas REALTORS ® Store? This is the only REALTOR magazine ® month and cut out articles of importance your implicit bias about race, Please email Shandra Norman at snorman@texasrealtors.com. I actually keep. to save and refer back to at a later date. Photo: © digitalskillet1 - stock.adobe.com disability, weight, age, gender, and One of my most useful and enjoyable It’s one magazine where I more. Each one is a structured like a information sources. read most of the content. video game where you sort categories of pictures and words. I’m a home inspector, however I still manage I make notes inside to follow up on in Find the video and tests by to glean useful information out of each issue. some way the things I see that interest me. searching Bias Override at nar.realtor. Survey conducted by Harvey Research with a sampling tolerance of ±2.77 percentage points at the 95% level of confidence. 6 TEXAS REALTOR ® | July 2020 July 2020 | texasrealestate.com 7
11 WAYS TO IS COVID-19 INCREASING DEMAND GENERATE FOR RURAL PROPERTIES? ANCILLARY INCOME FROM RENTAL PROPERTIES Aside from rent, most tenants are accustomed to paying fees for some services. Late fees, Real estate experts don’t know for sure—the data in the coming months and application fees, years will tell the tale. In the meantime, though, there are indications of early termination increased interest. fees, and pet fees Jim Gaines, chief economist at the Real Estate Center at Texas A&M are among the University, says land brokers received a lot of calls in late April about the COMPETING WITH most common, exurbs, the less densely populated areas outside of a city’s suburbs. according to a survey by Multifamily Insiders. “Callers are thinking, ‘If I can telecommute, I would much rather live in NEW CONSTRUCTION? But how can you generate more income from tenants without adding fees? Find optional services you can provide to a bucolic area. If I have to shelter in place, I’d rather be here,’” he says. “So we’re anticipating a wave of interest in these kinds of properties.” The calls are unusual for the rural land market. Callers are asking about tenants that offer them value and you income. primary residences on smaller five- to 10-acre lots; the rural land market Strategies to help sell existing Here are examples: typically deals in 1,000- to 10,000-acre properties for second homes. Changes • Movers in personal income and oil prices are usually the main causes for fluctuations homes when new builds are nearby. • Moving supplies in the rural land market. • House cleaners As the Texas economy continues to reopen and people become more Your clients’ home is in an area with new construction Emphasize the Differences • Dry cleaning and laundry comfortable leaving their homes, the next few months will be critical to see nearby. How can you best market your sellers’ existing Does your clients’ home have an additional bedroom, • Lawn mowing and landscaping if these calls turn into a buying trend, Gaines says. Even if a trend emerges, home when there are new ones available? upgraded appliances, or a deck? Even if the home’s • Babysitting these smaller properties may not appear in rural land sale datasets. Gaines features are practically identical to what is offered in the • Dog walking suggests watching the inventories, median prices, and sales volumes in more Research the Competition new construction, look for other differences. Perhaps the • Furniture rental rural MLSs for clues. Check out the builder’s website and take a tour of a home is on a corner lot, in a quieter area, closer to schools • Storage space Charles Gilliland, research economist at the Real Estate Center, said it will comparable model property. See how the features of your or the community pool, has larger trees, or some higher- • Additional or upgraded parking take six months to a year to identify a trend, and the best way to measure it clients’ home compare with what’s offered by the builder. grade construction materials. • Smart-home devices would be total dollar volume in the market. Look at countertops, cabinet and door hardware, Be sure to emphasize anything that makes your It is also difficult to gauge how long a trend away from urban centers faucets, light fixtures, appliances, floors, smart-home clients’ property more desirable when compared to the These ideas are only a starting point. Look at and densely populated areas may last. Gaines notes that even the real features, and HVAC systems. Note which features are new homes nearby. your property and tailor your services to it. Focus estate markets in areas hit by natural disasters rebuild within a few years standard and which are options. on enhancing tenants’ experiences with services of major events. Make an Attractive Deal or amenities, while avoiding the perception that Gilliland expects any trend will be most noticeable near urban areas and Go Beyond Home Staging Part of your research should include new-construction they’re paying extra for living in the property. be temporary unless the pandemic continues for a long time. Photos & Images: © tamas, © bsd555, © AntonBacksholm - stock.adobe.com Buyers of all types of properties want to envision themselves incentives. Builders sometimes offer closing-cost living in the home—not see the current occupants’ assistance or throw in upgrades. Your clients should price belongings or taste. However, when you’re competing against their property with those incentives in mind and perhaps new construction, that desire becomes even stronger. offer some of their own. HARNESS Want market statistics to share with and sales trends in your county, city, New construction means no one has ever lived in the They could offer discounts to make up for features that prospects and clients and to post on ZIP code, school district, and even property. Therefore, you must help your clients return lack in comparison to the new builds—for example, cash THE POWER social media? Do you need accurate many neighborhoods. MarketViewer their house as close as possible to new condition. toward better appliances. Your sellers could pay for movers, data to help you better understand also gives you insights into Ideally, the sellers would move out—to their new a home warranty, or closing costs, or agree to leave behind OF RELEVANT your market? Are people asking you apartment stats, new construction home or a family member’s place. If that’s not possible, furniture or other property that the buyers want. how the pandemic is affecting sales data, and mortgage-rate history. encourage your clients to put as much furniture and Not every homebuyer will want an existing home MARKET DATA and inventory in your area? The data is refreshed on the 15th possessions as possible in storage, to repaint any room when a new one is an option. However, proper research As a REALTOR®, you get exclusive of every month. Visit texasrealestate. that could use it, and to commit to regular, professional and preparation will give your sellers a better chance to access to MarketViewer. View price com/marketviewer. cleaning while the property is on the market. attract buyers and maximize their sales price. 8 TEXAS REALTOR ® | July 2020 July 2020 | texasrealestate.com 9
16% CREATE CMAs HOMEBUYING CHALLENGES ON THE GO FOR ASIAN AMERICANS AND WHAT TO WITH RPR PACIFIC ISLANDERS KNOW DMARC MOBILE ABOUT of all Texas EMAIL DKIM SPF homebuyers SECURITY bought a JARGON multigenerational If you’ve ever wanted to analyze comps while out and about, home, RPR Mobile makes it easy. RPR Mobile is the app for your phone or tablet, and it’s exclusively available to REALTORS®. Ninety-three percent of R EALTORS® in Texas report using email to according to the 2019 Profile of communicate with clients and customers, according to the 2019 Profile Texas Homebuyers and Sellers. Confirm the Facts of Texas R EALTORS® Members. But real estate email communications are View a property’s public and listing facts. Using the Your increasingly the target of wire fraud. In many instances, cybercriminals Changes tab on the right side, add or update any missing seek to “spoof” or pose as the email address of a legitimate participant TOP REASONS or incorrect data. Asian Americans and Pacific Islanders (AAPIs) are the fastest in the transaction—such as an agent, broker, or title company—to trick growing ethnic group in the U.S., and have the highest median FICO victims. However, there are measures that can be implemented to help 24% Children over 18/relatives Choose Comps of all races/ethnicities and loan types (755), according to the State of weed out messages from illegitimate sources. moving back into house You can select comparable properties for your CMA from Asia America report released recently by the Asian American Real Knowing the following terms can be helpful when discussing email a map or list. The map view allows you to zoom in and Estate Association of America (AREAA). Even so, the Asian American security with technology staff or implementing email marketing services. 20% Cost savings define a search area. The list view provides details for homeownership rate of 57.6% and Pacific Islander homeownership Taking steps to prevent your email address from being associated 18% Caretaking of aging parents easier comparisons. You can learn about comparable rate of 42.3% trail the national rate of 63.9%. with fraudulent activity can also lead to more of your messages being properties, and you can filter properties based on various delivered correctly, as email service providers look favorably on the use Find the 197-page criteria or keywords. Barriers to AAPI homeownership of the technologies below. 2019 Profile of Texas Homebuyers and Sellers • Thin, Clean Credit Files. Many AAPI families avoid debt and, at texasrealestate.com/research. Review Comps therefore, have limited credit histories. DomainKeys Identified Mail (DKIM) Once you select comparable properties, you will see them • Language Access. Buyers with limited English proficiency can DKIM is a method of authenticating that an email message did come displayed in rows. You can swipe to review and confirm benefit from trustworthy translations of documents and terms. from the address shown as the sender in the From field that’s displayed individual properties. • Down Payment Savings. Many AAPI families live in high-cost in your email client. A digital signature goes out with each message that areas and require more time to save for a 20% down payment. can be checked against the public Domain Name System (DNS) record of Generate a Report and Send it the sender’s address email. Only owners of a domain can edit its public The app will generate a recommended price and The report suggests solutions to these barriers, such as alternative DNS record. recommended price range for the property. You can edit credit-scoring models, down payment assistance programs, and more either of these fields or set them to not display. Finally, resources for translations. Sender Policy Framework (SPF) tap Get Report. The app will notify you when your report Find the full report, complete with a timeline of The Story of Asia SPF is another authentication method. A list of servers that can send Photos & Images: © relif, © iracosma, © Monkey Business, © Andrey Popov - stock.adobe.com is ready. You can choose to send the report to others via America, the AAPI Homebuyer Profile, and AAPI stats for the West email on behalf of a domain is published in its public DNS record, email or text directly from RPR Mobile. South Central Region that includes Texas at areaa.org/2020saa. which receiving email servers can use to check the sender in the digital envelope of a message. SPF is most effective when paired with DKIM, which checks the address visibly displayed as the sender. American employees are averaging three Domain-Based Message Authentication, Reporting, DON’T LET more hours on the job per day during and Conformance (DMARC) the COVID-19 pandemic, according to a DMARC functions as a set of instructions for how to verify email from a HOME-WORK report by NordVPN Teams. Whether you’re domain and what to do with messages that can’t be verified as authentic. working longer hours or just working more Receiving email servers can check the DMARC policy in a domain’s STRESS YOU OUT of your hours from your home, you can public DNS record to see which authentication method to use (SPF, avoid burnout by scheduling personal DKIM, or both), how the visibly displayed From field should be checked, time, taking frequent breaks from and whether to quarantine or reject messages that fail authentication. screens, and getting regular exercise. A DMARC policy can also stipulate how to notify a domain’s owner of messages that fail authentication. 10 TEXAS REALTOR ® | July 2020 July 2020 | texasrealestate.com 11
independent contractor agreement to avoid an ugly dispute during the already stressful time of a lawsuit. Trust the Process As policy requirements dictate when and how a claim must be filed, brokers should inform agents and employees of the importance of timely and accurate reporting of a potential problem. If a lawsuit is filed, only the broker or a designated representative should be speaking with the attorneys. All other communications should be locked down. Please do not go on Facebook expressing your indignation and professing your innocence! As computer network breaches and wire fraud become almost commonplace in the real estate industry, broker/owners can help lessen the risk by establishing clear and expected protocols. Almost all cybercrime is the result of human SOME ETHICS COMPLAINTS behavior. Training on the recognition of fraudulent emails, links, and attachments CAN BE ANONYMOUS can be of considerable benefit. Requiring the use of company-approved and secured Members of the public and REALTORS® who want to anonymously file an ethics complaint email addresses and websites can be against a REALTOR® may do so, but only for certain types of complaints. The alleged extremely helpful. violation must be one that qualifies for the association’s citation policy, which follows a streamlined process rather than proceeding to a full hearing. Read the Fine Print The complaints eligible to be filed anonymously fall under Articles 3, 4, 5, 6, 12, 14, The above only offers an overview and 16, and cover circumstances such as failure to present a true picture in real estate AVOID LAWSUITS Most real estate brokers and brokerage owners buy E&O insurance, along with the rest of their professional insurance program, with the understanding of insurance issues and resulting potential conflicts. communications and advertising; accepting a commission, rebate, or profit without the client’s knowledge and consent; and the placement of a for sale/lease sign on property BY STAYING that these policies protect their firms and employees from lawsuits alleging malpractice, bodily injury, or cybercrime. If you are a broker, take a deep dive into your policies and convey the without permission of the seller or landlord. A policy change that went into effect in June requires complainants to provide their WITHIN THE All parties should know when, if, and how coverage might apply before something goes wrong. Don’t assume generalities about any coverage. For coverage as best possible to agents and employees. If you are an agent, it is OK to name in the complaint; however, their name will be kept strictly confidential and will not be made available to the grievance tribunal or respondent. BOUNDS OF example, one type of policy might cover an instance of bodily injury—a client ask what is your share of the deductible To learn more about anonymous complaints, visit texasrealestate.com/anonymous. Photos & Images: © Andrey Popov, © amixstudio, © Jane Kelly - stock.adobe.com slips, falls, and gets hurt—during an open house, but not during a showing. or how you might be covered for certain YOUR COVERAGE Another type of policy offers coverage for the exact opposite scenario. Make Permissions Clear activities. Consult with an insurance representative who is familiar with your industry and how it is insured. Your Forms by John Torvi For coverage to be applicable, the representative of the real estate firm must The wrong time to find out about any The Buyer’s Walk Through and be acting on behalf of, and with the authority of, the named insured. In other of this is when you are holding the letter Acceptance Form (TXR 1925) can be words, if an agent does something without the permission of the broker/owner from the plaintiff’s attorney. Like many used for buyers to certify whether and a claim results, coverage can be denied. things in life, a little knowledge and they have inspected the property and Put all permissible activities and responsibilities of the agent in the prevention goes a long way! completed a walk-through or have independent contractor agreement, so everybody knows up front if property chosen not to prior to the transaction management, commercial sales, broker price opinions, or anything else are JOHN TORVI is vice president of marketing closing. This is just one of more than allowed, forbidden, or require special approval. and sales at the Herbert H. Landy Insurance 130 forms exclusively for members of If there is a claim resulting from the alleged actions or inactions of an agent, Agency, Inc., which is a Texas REALTORS risk ® Texas REALTORS®. management partner. who is responsible for the deductible? Be sure to include that information in the 12 TEXAS REALTOR ® | July 2020 July 2020 | texasrealestate.com 13
Can my unlicensed assistant WHAT IS A ask consumers who contact my RIBA-FREE office whether they are repre- sented by another broker? MORTGAGE? Traditional mortgage products may not YES, but keep in mind that according to suit adherents of all faiths, and riba-free TREC rules, your unlicensed assistant may mortgages are financing products that perform administrative tasks that are clerical comply with Islamic banking rules. The or secretarial in nature but may not solicit Quran prohibits riba, which can refer to the business. If you choose to task your unlicensed charging of interest on a loan, so riba-free assistant with gathering personal information mortgages employ different structures that from consumers who contact you, make sure their are certified to comply with Islamic law. For questions do not veer into soliciting or negotiating example, a riba-free mortgage may involve for services where a license is required. the bank and the buyer owning the property in tandem and ownership transferring to the buyer over time with each monthly payment. Differences between loan programs and potentially what is considered riba mean your clients will need to find an option that reflects their values. Islamic banks that specialize in riba-free mortgages exist in Texas and nationwide, and some major banks also offer financing options that comply with Islamic law. Since TREC doesn’t offer a residential lease or commercial contracts, can my brokerage’s in- house attorney draft those forms? Texas Real Estate Commission rules allow you to use a form drafted by a Texas lawyer—including a brokerage’s in-house counsel—for a particular kind of transaction when no mandatory TREC form exists as long as the form contains: • The name of the lawyer who prepared the form • The name of the broker for whom the form was prepared • The type of transaction for which the lawyer approved the use of the form • Any restrictions on the use of the form. If the form is an addendum that changes the rights, obligations, or remedies of a party Photos: © PheelingsMedia, © BullRun, © Odua Images - stock.adobe.com under a mandatory TREC contract or addendum, it must have these additional items: • A statement about how the addendum changes the rights, obligations, or remedies of a party, with a reference to the relevant paragraph number in the mandatory-use form • A statement that the form is not a mandatory TREC form • A statement that TREC rules prohibit real estate license holders from giving legal advice. Members of Texas REALTORS® have exclusive access to more than 130 forms for various types of real estate transactions not covered by mandatory TREC forms, including residential and commercial forms. See if there is a form already available for your transaction in the forms section of texasrealestate.com. 14 TEXAS REALTOR ® | July 2020 July 2020 | texasrealestate.com 15
The 2020 Texas REALTORS® Conference is now the #ShapingTexas Conference Tentative schedule Join the engaging online events Committee meetings will take place online August 17-30. August 31 # ShapingTexas Conference • Regional Caucus Visits - 11 a.m. – noon • Executive Board (closed meeting) - 1-4 p.m. • NAR Code of Ethics course - 1-4 p.m. Association leaders and staff are working • Chairman’s Installation – 5-6:30 p.m. - Celebrate hard to make the #ShapingTexas Conference 2021 Chairman Marvin Jolly, Chairman-Elect Russell an online experience you’ll never forget. August 31-September 3 This year’s conference will be unlike any other. The virtual format features events and speakers Berry, Secretary/Treasurer Marcus Phipps, and the incoming Executive Board members during this special event that will inform, inspire, and entertain you. You Keynote Speaker will learn the latest trends in the Texas real estate September 1 industry, hear what’s going on in government and Trey Gowdy 3 hours of programming starting at 3 p.m., including: You know Trey Gowdy, a former state and • Keynote address by Trey Gowdy politics, and come away with ideas to improve federal prosecutor, from his four terms in the • Recognition of the Texas REALTORS® 100 Acts of your business … all in a way you’ve never United States Congress, where he served on the Kindness award recipients experienced before! Judiciary Committee, Oversight and Government • A celebration of the Texas REALTORS® Centennial Reform Committee, Intelligence Committee, Education and the Workforce Committee, and September 2 Ethics Committee. He forged deep and meaningful Presentations with Live Q&A Sessions: relationships with scores of colleagues on both • Governmental Affairs - 9-10:30 a.m. sides of the aisle. He also has co-written two • Risk Reduction - 10:30-11:30 a.m. books with Sen. Tim Scott: the New York Times • Tech/MLS - 12:30-1:30 p.m. best seller Unified—How Our Unlikely Friendship • Diversity, Equity, and Inclusion - 2-3 p.m. Gives Us Hope For A Divided Country and The • TREC Contracts course - 3-6 p.m. Friendship Challenge—A Six-Week Guide To True TREPAC Event – 6-7 p.m. Reconciliation—One Friendship At A Time. You won’t want to miss his message of unity September 3 and leadership. • Board of Directors Meeting – 9 a.m. - noon • Closing Keynote – 2 - 3 p.m. Free registration to all members of Texas REALTORS®. Visit texasrealestate.com/conference Attendees can make an optional donation to the for the latest list of speakers and events Texas REALTORS® Disaster Relief Fund Trey Gowdy 16 TEXAS REALTOR ® | July 2020 July 2020 | texasrealestate.com 17
READY... SET... Podcasting continues to grow in popular- family owned business for us. Our goal ity, and Texas R EALTORS® are stepping up is to create wealth for people. Anybody to the microphone to educate listeners and who wants to create wealth through build their businesses. real estate is going to be our audience Prospects around the state are eventually,” she says. RECORD listening. R EALTORS® report positive Her podcast is connecting with feedback on social media and greater listeners. When clients see her at special community recognition. events, the first thing they say is that they Texas R EALTOR® spoke with three are tuning in. She also receives calls and R EALTORS® about their shows. These emails about the show. Austin Real Estate PODCASTING 101 members emphasized that the only things you need to start It keeps us Podcast with Rosie Hayer draws around 3,000 listeners for Podcasting first became popular in 2004. A podcast is an REALTORS® share their expertise through podcasting. podcasting are your ideas, your voice, and top of mind episodes, she says. The right mentality audio file designed to be downloaded with our a way to record them. is essential. While automatically from good equipment is the internet. Apps for by Joe Olivieri Educating listeners important, podcast listening to podcasts, Rosie Hayer started Austin Real Estate Podcast with Rosie clients. listeners can hear your soul, she says. Be confident, and be OK such as Apple Podcasts, Spotify, Google Podcasts, and Hayer to share the use- ful conversations she –Steven Randolph with failure, as long as it is failing forward Stitcher, can notify users whenever a was already having toward improvement. new episode has with her team and ven- She has hired new team been downloaded to dor partners. members and plans to that person’s device. “Having a great title devote more attention Listeners can also company, a fantastic loan officer, a great to this aspect of her business. access podcasts inspector, a great mentor, and a business “We have barely scratched the surface of on websites and coach are key factors for a R EALTOR® to be this,” she says. “The potential is unlimited.” listen directly from very resourceful. It shows the R EALTOR® to a computer, phone, be a powerful asset to people in general,” Promote your network or tablet. Internet- she says. “We were having these great Kariliz Perez started her podcast, The connected smart conversations off the phone, off camera all Houston Real Estate Talk, roughly a year speakers and virtual the time. If the public or our database got to and a half ago to do something unique and assistants will also play hear them, they could take the advice into different as a brokerage. podcasts when asked. consideration at their own convenience.” The Houston-area R EALTOR® says A podcast often Her podcasts started out scripted the podcast showcases her as a more mimics the format of a but grew more spontaneous as she and knowledgeable all-around real estate traditional radio show, her team became more comfortable with professional. It promotes Perez’s with a host discussing the format. She blocks off a half hour to brokerage, STONE & Fields, as well as her a topic or a holding produce the shorter 10- to 15-minute clips, professional network. a conversation with and an hour for the more specialized 45- to “We are surrounded by professionals guests. Unlike a live Photo & Images: © rontech2000, © Jojo* - stock.adobe.com 60-minute episodes. who are so knowledgeable and helpful radio show, a podcast is Her ideas come directly from her in what they do,” she says. “We have the created and packaged experiences in the field. Episodes include attorneys, the appraisers, the inspectors before it is broadcast. “The Many Down Payment Options for and so on. We have so much information Podcasts can be edited Homebuyers” and “The No. 1 Thing All to share. With social media, you don’t have for clarity and may Successful Homebuyers Do.” the space to say all that much. We wanted include music. Podcasts Earlier this year, she started a related to inform our friends, family, and clients. can be any length, may YouTube series called Level Up with Rosie We figured out that podcasting was the include commercials Hayer, in which she profiles business best way to deliver that message and help or promotions, and can owners. She likes podcasting and video others in the industry to expand their be on any schedule the blogging because it allows her and her groups and clientele.” podcast owner chooses. Kariliz Perez Steven Randolph Rosie Hayer team to portray their true selves, and the Perez’s guests explain complex hosts The Houston co-hosts San Antonio hosts Austin Real stories of the people they feature. The topics, like inspectors discussing mold or Real Estate Talk. Realty Pros. Estate Podcast with shows build trust with listeners. Hayer attorneys discussing leases, to her core Rosie Hayer. says her audience for both shows are local audience: prospective buyers. businesses and entrepreneurs in Austin as Perez gets ideas by listening to other well as real estate prospects. podcasts, like the Houston Chronicle pod- “My husband and I run our real estate cast Looped In. She then calls friends and company, The Hayer Group, together. It’s a coworkers to brainstorm potential guests. 18 TEXAS REALTOR ® | July 2020 July 2020 | texasrealestate.com 19
We have Perez shares the questions with much to put out there. We don’t want to put out episodes that are just filler material.” HOW TO FIND Choosing from among the dizzying number of technology solutions marketed to real estate professionals is a vital part of doing business. Agents need work- THE RIGHT her guests and Like Hayer and Perez, Randolph invites able, time-saving solutions for leads, transactions, and more; brokerages need Tools of the Trade barely then the conver- industry professionals onto his show. to prove their value to retain and attract top agents. sation starts. Randolph says his episodes average around Travis Saxton, senior vice president of technology consulting for T3 Sixty, Podcasts can be as simple “The episodes 1,300 total plays, but notes some episodes leads the research for the real estate consulting firm’s annual Tech 500 report, scratched TECHNOLOGY and affordable—or as complex I enjoy the most are bigger hits than others. “I think it keeps which evaluates available real estate technology options. The hundreds of hours and expensive—as your ideas are the ones us top of mind with our clients. A lot of of research that go into the report each year also inform the advice the firm gives need them to be. All you need where I am truly people who listen to our podcast are actually to its consulting clients seeking to improve their technology. to create a podcast is a device the surface learning,” she clients and friends of ours,” he says. Here are lessons Saxton has for agents and brokerages assessing their FOR YOU that can record your voice and says. “I think the Randolph’s listeners are prospective technology options. create a sound file, and a way of this. guests also enjoy buyers and sellers as well as investors. He to upload it to the internet for the spontane- says half of his audience is 28 to 34 years Assess What You’re Already Doing distribution. Some podcasters ity of coming up old, and the next largest category is 23 to 27 The Tech 500 report includes 63 categories of tech solutions, and Saxton says, use nothing more than their with questions years old. He also draws older listeners. by Michael Schrantz “It’s wise for a brokerage of any size to know what it’s doing in those categories.” phones, while others rely on –Rosie Hayer and the curiosity While he hasn’t gotten any business Without an initial audit, you may miss where your current systems overlap or microphones and other I have through directly from it, the podcast did attract two where wanted features are already being provided. “Choosing a customer relation- recording equipment to get the process and new real estate agents to his firm. “I wasn’t ship management system in a bubble and not looking at everything you’re doing a clearer sound. the interview.” expecting that at all,” he says. around it is a terrible decision,” Saxton says. Auditing your current technology If you plan to have remote She has Randolph’s message for aspiring podcast- resources will also help you assess your budget to reallocate funds or fill in holes. guests on your podcast, seen her guests ers is to be genuine and just press record. programs like Skype and post the episodes on their social media “I mean, it’s not really that hard. My Look at Your Strengths Zencastr allow you to make platforms and receive positive feedback. advice is just to do it. Just record, and When approaching technology decisions, businesses should consider their true and receive phone calls Like any good marketing strategy, there’s not a lot of work to be done. You needs. “Every brokerage is a little different,” says Saxton. “A lead generation- that can be recorded. consistency is key. hear some of these podcasts and they’re centric agent is not going to be the same as a networker.” If your technology is Audio editing software “We try to consistently do two or three really edited and they’ve got a lot of music oriented toward gathering online leads but converting those types of leads isn’t enables you to improve every month,” she says. “If somebody else going on. Ours is really simple. your strength, you won’t get the most out of that technology. Saxton maps out how the podcast sounds, wants to do the same, create a plan and stick “The barrier to entry is very low. different agent personas with clients to find where they excel, then matches add music, and otherwise edit to the plan. Don’t only do it for three months There’s not really anybody telling you, technology to those strengths. your recording. GarageBand and stop because you only have two follow- ‘Hey, you’ve got to do these five or 10 things for Mac computers and Au- ers. You have to continue and be consistent in order to qualify to do this.’ You can just Do a SWOT Analysis dacity for PC or Mac are two and give it time to grow and expand.” pick up your phone and start recording A SWOT analysis is a decision-making tool you can use to assess your technology popular programs. your own episode, upload it right there to options for a given category or need. Once you’ve recorded your Just jump in the platform in five minutes, and you’re SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. podcast, you need a place to Steven Randolph started San Antonio Realty done. Just do it and work out the bugs as The application’s strengths and weaknesses for your needs may be obvious, but put it on the internet where Pros in late 2018. The Karras Randolph you go.” opportunities and threats are just as important. Search for press releases or other people can find it. There are Signature Property Group REALTOR® was news items that may show whether the company is on a trajectory for growth or may free podcast hosting platforms, already an avid podcast listener. be struggling. For example, a company facing funding shortages may roll back fea- such as Anchor and audio “When I got into real estate, I saw that JOE OLIVIERI is assistant editor for tures or support, potentially endangering the time and resources you’ve put into it. streaming site SoundCloud, there weren’t a lot of podcasts for our local Texas REALTOR®. as well as many paid sites, market. I just saw a void. I was nervous Get a Demo, Ask Questions, and Get References such as Buzzsprout, libsyn and about it at first, but then thought, What’s For your top choices, get a demo of the application and come ready with a list of Transistor.fm. Each has its own the big deal, you know? I enjoy listening questions you’ve compiled from your research. Saxton breaks down questions features and advantages, so it to podcasts, and I thought this might be a into three categories: technology, service and support, and financial stability. Ask is worth researching options to see what best fits your needs. From there, use your pod- good opportunity for me to put my name out there and give clients a good source of information to listen to.” Podcasting for references and follow up with them. Saxton suggests asking references, “How can I work best with this technology?” You’ll get a more honest assessment of the product and advice on how to get the most out of it. casting host platform to submit your podcast to major distribu- tion platforms such as Apple Randolph and his business partner, David Karras, don’t script their podcast. was the Get Everything in Writing best way to They try to keep episodes between 20 Put in writing what you expect from the service or product, and make sure it Podcasts, Spotify, and Google minutes to an hour—something a listener aligns with what the company provides. “People often overlook things and get Podcasts. You may need to fill could finish in one sitting. They find topics nickel-and-dimed later on,” Saxton says. “That starts the relationship off on a deliver that out an online form and wait from what’s going on the market or from sour note.” Consider putting together a list of requirements for any service in a before your content appears. their own experiences. Seasonal content, given category, then work from there when negotiating specific contract terms. When it does, let people know like the real estate market during the The process from identifying a need to making a decision about which prod- The Tech 500 report from you have a podcast and why they should listen. No matter how you re- holidays, are staples. “We always say we want to give out good information that somebody can use. message. T3 Sixty is available at realestatealmanac.com/ uct or service to use typically takes about 60 days, according to Saxton. And after making a choice comes implementing it, which can be six to nine more months. “Making the decision is only half the battle,” Saxton says. “Fifty percent is maxi- cord, produce, and distribute We’re not on the podcast to just run our –Kariliz Perez technology-providers. mizing the right technology.” your podcast, the best way mouths,” he says. “We don’t want to waste to grow your audience is to anyone’s time. We’ll go a couple of weeks MICHAEL SCHRANTZ is digital marketing manager for Texas REALTORS ®. consistently generate new or a month without an episode. Maybe it’s and interesting content. because we’re super busy or there’s not that Photo: © Monkey Business - stock.adobe.com 20 TEXAS REALTOR ® | July 2020 July 2020 | texasrealestate.com 21
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