Talking To Clients About Home Automation

If you’re a real estate agent today, there’s a good chance you’ve sold and listed a house with home automation features. Connected “smart home” devices have gained popularity rapidly in recent years.

According to a recent report, in 2016, the number of smart homes reached 169 million and installations are projected to grow at an annual rate of 30 percent over the next few years.

With such rapid growth in recent years, it can be a challenge to keep up the home automation industry, let alone explain its myriad pros and cons to buyers. By explaining various smart home offerings and their comparative value, however, you can turn a possible unknown into a selling point.

What Makes a Home Smart?

Home automation features have been around since the 1970s, but were a concept way before then (think “The Jetsons” and “2001: A Space Odyssey”). But with the advent of WiFi-connected devices, the industry has exploded.

Generally, any home feature or device that can connect to the internet is considered a “smart” device. These items can be as minor as a lamp or as vital as a thermostat.

In general, smart devices sync with a smartphone or computer application where you can view data and control the device. Smart garage doors can be opened from your phone and allow you to check if you remembered to close the door without driving back home.

Smart smoke alarms can send a notification to your pocket if there’s a fire. Ultimately, these devices are built with two main goals in mind: convenience and cost savings.

Explaining Value

Make sure to familiarize yourself with the different types of home automation devices available, their function and price, and what type of value they add to the home.

One thing to remember is that most home automation features do not offer a big return on investment (ROI). But, that doesn’t mean these devices can’t be strong selling points for buyers.

Because the home automation market is so vast and varied, its value differs with each consumer. A young family might be much more interested in in-home child-monitoring cameras than other buyers; an eco-conscious client might be more concerned than most with monitoring their energy use day-to-day.

Once you’ve determined your client’s lifestyle needs, you can determine whether a home’s automation features are actually a selling point. Focus on the cost-saving aspects of automation and its convenience when making the case.

Paint a Balanced Picture

While smart homes improve people’s lives through convenience and cost savings, home automation is far from perfect. When talking to clients, make sure they understand all the pitfalls associated with the technology.

There is no real standardization of home automation software, so getting newer devices to sync with or talk to older devices is often difficult. Further, many connected devices require a monthly fee – so if your clients are moving into a home with an installed security system, they’ll still need to pay a fee to keep the system online.

Whether or not your client is interested in home automation, there’s a fair chance that some of the homes you’re showing will have smart home features. Make sure you’re familiar with various offerings so you provide honest, informed answers and help them decide if home automation is right for them.

Keller Williams Realty Named Top Training Organization Worldwide

Keller Williams Realty, the world’s largest real estate franchise by agent count, was recognized by Training magazine, the leading business publication for learning and development professionals, as the No.1 training organization across all industries worldwide.

For the fourth consecutive year, Keller Williams placed in the Top 5 on the Training 125, which ranks companies’ excellence in employer-sponsored training and development programs.

Blog_image.png

“We are incredibly honored by this recognition because of what it means for our people,” said John Davis, president, Keller Williams. “All of our training is focused on helping our agents grow their businesses and help their clients.”

“World-class training is the foundation of providing our agents with the resources and tools they need to fund their lives and create opportunities for their families,” said Davis.”

On January 30, Keller Williams received the No. 1 ranking at Training magazine’s annual awards gala in San Diego, California. With the honor, Keller Williams becomes eligible for induction into the Training Top 10 Hall of Fame for 2018.

“The 2017 Training Top 125 winners don’t just set the bar for employee training and development, they vault over it,” said Lorri Freifeld, editor-in-chief, Training magazine. “They are champions of learning and ensure their employees have the skills to succeed in this competitive, ever-changing world. They insist on training tied to corporate strategic goals, and they have the results to show for it.”

The Training Top 125 ranking is based on a myriad of benchmarking statistics such as total training budget; percentage of payroll; number of training hours per employee program; goals, evaluation, measurement, and workplace surveys; hours of training per employee annually; and detailed formal programs.

“At Keller Williams, we’re not only an open-books company, we’re an open-learning company,” said Dianna Kokoszka, CEO, KW MAPS Coaching. “The leaders of our company have fostered a culture of collaboration because we know that together everyone achieves more.”

The Training Top 125 ranking is also determined by assessing a range of qualitative and quantitative factors, including financial investment in employee development, the scope of development programs, and how closely such development efforts are linked to business goals and objectives.

“This is an exciting time in training and technology,” said Chris Heller, CEO, Keller Williams. “A decade from now, the way consumers search for and buy homes will be almost unrecognizable from the process today.”

“Our success at keeping our agents at the forefront of this evolution, helping them differentiate themselves in their local markets, and providing an extraordinary customer experience will be determined by how well we train our people, said Heller.”

In-depth profiles of each of the top five companies will appear in the January/February 2017 issue of Training magazine. For more information on the Training Top 125, visit www.trainingmag.com.

Increase Your Profits In 2017

OutFront article by: Ruben Gonzalez, Keller Williams Realty Staff Economist

With the market hitting highs in 2016 and potentially moving toward a peak, questions have been coming up about what agents should do when the market slows down and, specifically, how to manage expenses. To help with this important conversation, I interviewed Garrett Lenderman, lead writer and researcher of KW Publishing.

Lenderman, who works directly with Jay Papasan and Gary Keller, has spent a lot of time studying the Budget Model as well as the accounting and spending habits of agents to provide some insight for others on how they can manage expenses and increase profits, even in a shift.

Gonzalez: I want to talk about how agents should manage their budgets during shifts. But first, I want to start just by asking you, what is the single biggest observation you have had while looking at agent budgets?

Lenderman: The biggest observation I’ve had is that agents need to stay committed to having a budget and maintaining a P&L. Not many agents enjoy looking at numbers, and who can blame them? It’s important for agents to keep score and take into account things like their ROI when making decisions about spending money. Doing so creates accountability and is a diagnostic tool because it’s difficult to continually make smart decisions when you go with your gut.

One tool recently introduced to KW associates to help them with this process is the Profit Dash app. Profit Dash offers agents holistic finance management using KW’s exclusive listing and transmittal data right from their phone. It helps make managing expenses easier.

Gonzalez: On to the topic of shifts, what do you think are the things agents need to watch out for if they are headed into a slower market?

Lenderman: The first place I’d start with are expenses that sit below the line, and by that I mean expenses that aren’t necessary to the operation of your business. It’s tempting to treat your business as a personal account, but it’s important to separate that from your business expenses. If you do a good job of that already, the next place I’d look are expenses that aren’t vital for generating revenue. It’s easy, especially when things are going well, to take on extra expenses that aren’t directly driving revenue. But in a hard shift, those expenses can take you underwater.

It’s also important that you don’t make decisions you can’t outlast if things take a turn for the worst. This means either building up reserves that will prop you up in a shift or taking a good look at the affordability of long-term fixed expenses – especially those that would impact lead generation. When revenue starts to drop, you want to have minimal commitment to fixed expenses.

Gonzalez: What about teams? Are there some specific things that could get a team in trouble when things start to slow down?

Lenderman: The same rules apply for teams. However, I would say one of the biggest issues for teams now is their cost of sales. When things are booming and competitive, it can be a challenge to keep splits and salaries in check, but those are things that could make or break a team and will be a lot harder to negotiate down than it will be to keep them in line. Make sure you are making decisions that your business can survive when things get more difficult.

Gonzalez: Any final thoughts?

Lenderman: Watch out for shiny objects. It’s really easy when things are going well to start spending money on cool new systems, apps, fashionable furniture, sleek logos and watercoolers, but you need to really make investments that give you back multiple dollars in return. Hold your money accountable and have specific goals set for your investments. If you aren’t getting the return you want on something, cut the cord.

By: Ruben Gonzalez, Keller Williams Realty Staff Economist

Viewing The Shift

Economic Update

Keller Williams Realty Staff Economist Ruben Gonzales talks about spotting a market shift.

If you have been in the real estate industry for very long, you probably know that the housing market goes through cycles. During the growth portion of the cycle, prices are going up and inventory levels are typically low but growing. After the market shifts, prices begin to decline as inventory levels reach a peak and then start to decline.

The cycle that real estate agents are most familiar with is the basic seasonal cycle that exists in the market. In the spring, as the weather warms up and summer is on the horizon, listings and sales start  to pick up. When summer arrives and kids are out of school in most locations and weather is at its warmest, sales peak. The fall brings the start of the slowdown as listings start to dwindle and demand decreases. The market typically bottoms in January when weather is coldest.

Then there are longer cycles that dictate where these peaks and troughs move from year to year. These cycles can last a few years or more than a decade, depending on the underlying factors that are driving them. They are very difficult to predict in advance.

In any market, there are two sides to the coin driving the cycles: supply and demand. On the demand side, you have demographic cycles which dictate how many people exist in an area who are able to buy houses, and economic cycles which dictate if those people are in a financial situation that’s  conducive to purchasing a home. On the supply side, you have availability of space for new construction, the number of existing structures and the costs of labor and materials.

You may have observed that over the last few years the market has made substantial gains as it recovered from the huge downturn that started in 2006. The markets started coming back in 2012, and looking at the country as a whole, they have been up since.

So now the question is, “When will the market go in the other direction, and how do I know it’s happening?” The short answer is that we don’t know and that we won’t know until it has already happened.

It’s really difficult to predict the timing of market cycles because there are so many factors at play, and often the thing that causes a shift wasn’t even on the radar. However, there are some things you can watch to know when you are potentially getting close so that you can start shift-proofing your  business while you still have the resources available.

Look first for a persistent loosening in lending behavior by banks. As the most qualified buyers start to dwindle because demand is slacking, banks will look to loosen standards to stir some demand from the bottom of the credit barrel. Inventory will eventually start to rise, and prices will flatten  out, as demand begins to dwindle faster than supply can adjust. Sales will start to decline   year-over-year as the market begins to settle into a downward trend.

The things that might cause this on a local level could be caused by a dip in the local economy or  overbuilding spurred in the aftermath of a long spurt of population growth in an area. It’s important  to watch patterns in the local economy as well as the housing market in your area. If unemployment in an area begins to trend up or the population begins to trend down, chances are that the housing market has already shifted or will soon follow suit.

With the market at its healthiest in nearly a decade, now is the time to start shift-proofing your business. Remember, shifts are going to happen, but you can minimize your vulnerability by taking  actions now that will help you thrive, not merely survive, when the next one occurs.

Making It Rain – Utilize Rain Water All Year Long

Real Estate Trends

Water supply is an ongoing concern for many, especially those living in drought-stricken areas. This is one reason why the conversation about collecting and utilizing rainwater as a means for battling supply challenges is ongoing. Real estate agents can use this information to help their clients better understand this trend in real estate.  Why Homeowners Are Collecting Rainwater

By collecting rain and storing it in a barrel or tank, homeowners can create a supply of water to use that doesn’t increase water bills or overwork groundwater resources.

An additional benefit of rainwater collection is that rain doesn’t contain the minerals found in wells or the chlorine in municipal supplies. Rain collection is ideal for large water usages such as watering the lawn, washing the car, doing the laundry and showering/bathing. It is generally not used for drinking; however, it can be if properly filtered.

Understanding Rainwater Collection Systems

Collection systems range from a single rain barrel placed at the end of a gutter downspout to an elaborate system that can hold enough water to supply your entire home.

A house with a sloped roof, gutters and/or downspouts is perfect for rainwater collection intended for lawn irrigation or other nonpotable uses. All that is needed is a tank, a wire/mesh gutter screen to keep debris out, and a way to remove the water from the tank.

Your tank (or cistern) can be made from a range of materials including metal, wood, stone, cement or fiberglass. Garden and home supply stores offer rain collection systems complete with your barrel, leaf screens and spouts. The costs vary but expect to pay from $50 – $300 for a complete barrel system. Depending on how you plan to use it will determine the type, cost and complexity.

The easiest and most cost-effective way to remove water from your collection tank is by gravity. If you want a more elaborate use for your water, you’ll need a pump. Pumps provide about 8 gallons of water a minute up to 500 feet away.

Regulations

Homeowners should check with their homeowners association to ensure they comply with such rules as placement, color and aize of the rain barrel.

If using collected rainwater for the entire home, homeowners should check local codes and ordinances.

Concerns

It’s a good idea to use a roof washer to remove leaves, debris and droppings to create a clean line for the water entering the storage tank.

Mosquitoes are a natural concern for any collection of standing water, so be sure that your tank is screened and covered. If you live in areas that freeze, allow your barrel to only fill three fourths full to allow water expansion in freezing temperatures.

Aesthetics of rain barrels were once a concern, but not as much anymore. With the wide variety of collection tanks available, your cistern doesn’t have to be an eyesore. Many agree that the wooden tanks meant to resemble wine casks are actually quite charming. A carefully, yet strategically, placed tank can be hidden so as not to detract from your homes beautiful landscape.

Shift Happens!

Gary Keller and Jay Papasan authors of the book SHIFT  have recently delivered critical action items every agent should take now. The market shift is here and spreading through each city. It is crucial to understand what the shift is, and how prepare your business in order to grow and remain profitable. This review of the book took place at Mega Camp in Austin, Texas over the past week.

Shift-1.jpg

Reflecting on the title, Keller said that the book can actually work to reinvigorate any business at any time – it is not only for use during shifting markets. With that in mind, Keller and Papasan outlined five critical action items agents should do now to pave the way for not just a profitable year, but a profitable career.

Before taking action, you first need to recognize that shifts happen fast, and if you don’t prepare early, you may be too late. Start with your mindset and don’t assume it won’t happen to you. When things are going well, it is difficult to think about – let alone prepare for – them going bad. As Keller said:

When a market shifts, there is only one thing you can do: SHIFT WITH IT.

Get Right – Shift Your Actions with These Five Critical Action Items

In a shift, nothing becomes more critical than lowering your costs, re-energizing your people and systems, finding motivated buyers and sellers, and closing them to appointment.

Action 1 – Find Your Profit Through Expense Management

Now is the time to lower your expenses and make every dollar count. “To generate revenue, you generate leads, but to make a profit, you manage expenses,” Keller said. Some ways to do this are as follows:

Maintain a monthly budget that matches your shifting revenue.

Re-margin your personal expenses so that your business and personal life live within their means.

Profit is made in managing expenses.

Action 2 – Do More with Less Through Leverage

As you manage your expenses and make necessary cuts, you will need to get creative to do more with less and make every body count.

A market shift can be an opportunity to upgrade and top-grade your business. This is a gift of the shift. Follow these guidelines to help get your entire team in shift mode:

  1. Be visible and communicate to set the tone.
  2. Ramp up your training to upgrade their skills.
  3. Re-tool your systems for efficiency and focus.
  4. Increase your recruiting to top-grade personnel.

Action 3 – Lead Generate to Find the Motivated 

The race is on to find the ready, willing and able clients to buy, because in a shift, there is no longer enough to go around. A shift presents an opportunity to find the truly motivated, but you need to make every activity count.

While the market may change, the reasons people buy homes don’t, so find those motivated buyers.

Action – Improve Lead Conversion to Get to the Table

Good leads are great, but leads that become appointments with motivated people are the only leads that matter in a shift. Make sure you take the time and do the activities to make every lead count.

Action 5 – Leverage Your Market Center / ALL HANDS ON DECK – No one succeeds alone.

It’s time for all hands on deck because, as we know, no one succeeds alone. To get your market center working in concert, follow these activities:

  1. Share timely information.
  2. Coordinate training on key topics.
  3. Partner recruiting with the team leader and other associates.

Cleaner Water For Your Home

Water Quality  for the Home

From appliances to paint colors to even water quality enhancements, your clients have a lot of decisions to make when they purchase their home. In particular, having clean, clear and safe running water is very important. And, thanks to advances in technology, determining what is in a home’s water and applying an appropriate filtration is easy. This article will help you inform your clients about those home water quality options.Here are the most common water problems and corresponding solutions:

The first step to improving the water quality in a home is to determine what type of water the home has and what contaminants are in it. Home kits or a water professional can determine this. Home kits are available at most hardware stores and are relatively inexpensive.

Hard water is one of the most common concerns for homeowners. Hard water – water that has a high mineral content – is most recognizable by heavy spotting on dishes, glasses, sinks, bathtubs and toilet bowls. This mineral buildup can also reduce the operating efficiency of any water-driven items and appliances and, worst of all, cause long-term pipe damage.

Once the water contaminant has been determined, the next step is choosing the best solution to remove it. It’s important to consider both operating and maintenance costs. Some solutions are as easy as choosing the appropriate filter and model, while others may require a chemical pump.

Filter systems come in various types of installation models such as:

• Faucet-mounted filters which are attached directly to the faucet.
• In-line filters that are located under the sink on the water supply line.
• Line bypass models that use a separate faucet at the sink which supplies only filtered      water when engaged.
• Point of entry (POE) systems are the most comprehensive as they treat all of the water entering the home. A POE system ties into the main water line and filters the water at every sink, shower and appliance in the home.

While faucet and in-line systems are easy to install, POE systems are the most complex and usually require professional installation.

Depending on the specific contaminant and the type of system chosen, improving the quality of water in the home is always a good idea. And what better time to do so than in August, which is Water Quality Month.