STRENGTHEN YOUR FINANCES - Tips to Better Manage Your Money - Texas REALTORS

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STRENGTHEN YOUR FINANCES - Tips to Better Manage Your Money - Texas REALTORS
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
STRENGTHEN YOUR FINANCES - Tips to Better Manage Your Money - Texas REALTORS
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STRENGTHEN YOUR FINANCES - Tips to Better Manage Your Money - Texas REALTORS
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
STRENGTHEN YOUR FINANCES - Tips to Better Manage Your Money - Texas REALTORS
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
STRENGTHEN YOUR FINANCES - Tips to Better Manage Your Money - Texas REALTORS
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
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                                                                                                                                    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
STRENGTHEN YOUR FINANCES - Tips to Better Manage Your Money - Texas REALTORS
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
STRENGTHEN YOUR FINANCES - Tips to Better Manage Your Money - Texas REALTORS
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
STRENGTHEN YOUR FINANCES - Tips to Better Manage Your Money - Texas REALTORS
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
STRENGTHEN YOUR FINANCES - Tips to Better Manage Your Money - Texas REALTORS
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
STRENGTHEN YOUR FINANCES - Tips to Better Manage Your Money - Texas REALTORS
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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