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Article Courtesy of: Inman News
By: Cara Ameer

Educating and empowering clients will lead sellers to being comfortable with making good decisions and hopefully generating some more inventory in this challenging market. Here are a few questions they'll most likely be asking you in 2022 — and how to expertly answer them
 
Over the last two years, the real estate market has had a major shift, and a new normal was created in real estate. That “new normal” meant low inventory, multiple offers, crazy asking prices, pie-in-the-sky offers and sellers calling the shots on their time and terms.
As we transition into 2022, what will sellers want to know when they are considering putting their home on the market? What concerns and questions will they have? Here are seven questions agents should expect when talking to sellers about selling in the 2022 market.

1. We would consider selling, but where do we go?

Hence, the mega-million-dollar question in just about every market these days.  There are plenty of people that, if they knew with certainty where they would move to, they would put their home on the market in a New York minute.

But that’s the challenge today. They aren’t worried about selling and cashing out. With prices climbing and very little choices available in many markets, plus long delays for new construction, these are all hesitation points that are holding sellers back from moving forward.

When a client or prospect reaches out to discuss selling their property — whether it is simply a happy thought at this point or they have a timeframe in mind — it is best to start getting them familiar with what choices may look like for both finding something to buy or rent.

You may have to reach far and wide, and it may require a lot of digging in the dirt, including working your agent network as well as that of your sphere for any options that aren’t officially for sale (but could be under the right circumstances), as well as anything that could be coming up in the future.

Rentals may not just mean diving into existing homes but also understanding apartment complexes and what options may be possible there, whether short term or long term. Having contacts that manage short-term rentals will also prove highly valuable, particularly if they have access to properties that might be exciting to stay in, even for a short period of time.

Many newer apartment complexes are quite luxurious and have a lot of amenities — something like this may assuage a would-be seller as a comfortable temporary solution while they work to find something more permanent to relocate to.

It’s also important to explain various options available as far as negotiating a timeframe whereby the seller can occupy their property past closing with a post-closing, short-term occupancy agreement or lease for a certain amount of time, but also explain how that could impact the buyer audience for their property.

For example, if the price point is likely to attract buyers getting mortgages, post-closing occupancy by a seller longer than 60 days may cause the property to be viewed as investment property and trigger a higher interest rate from the lender.

2. Will I be able to get a price as high as what comparable homes sold for in 2021?

It depends on a lot of factors, such as when you will be coming on the market and what you might be competing with. While low inventory is projected to remain, today’s buyers still want turn-key, and given the prices they are paying and likely stretching themselves, they don’t have the financial bandwidth or the time to take on major renovation projects.

So, if the property is not updated, has deferred maintenance and in need a lot of prep for sale, they may not get as much as they could have six or 12 months ago, depending on where the property is located as people were clamoring to just get a house.

Some buyers have put the brakes on, and after looking at crappy home after crappy home, they might not be inclined to pull the trigger at just anything.

The crazy overpricing that has taken place in the last two years might be knocked back a bit, depending on the property, where it is located and who the buyer audience is.

3. Do I have to do any prep for sale since inventory is so low?

This is a perfect question to follow the pricing discussion. Today’s buyers want turnkey, and since many buyers may be making decisions from afar — because, say, they aren’t able to come in town fast enough before a home may sell — they are basing their decisions on how a property looks online or perhaps a virtual showing by their agent.

That being said, this is not the time to skimp on taking the time to properly prepare a home for sale. The basic rules still apply from decluttering, cleaning, pressure washing, window cleaning, painting, freshening up landscaping and taking care of any needed repairs or deferred maintenance from caulking, torn screens, wood rot, corroded hardware, etc.

Some upgrades or improvements may be necessary, such as new appliances, updating countertops to today’s design trends and expectations along with cabinet hardware. Consider replacing old sinks, plumbing and lighting fixtures as well.
Time spent preparing your home for sale will translate into a better appearance online as well as in person — and help to justify your asking price.

4. Even if I do prepare my home for sale, can I just sell ‘as is’?

This question really depends on what is being done in your market and what expectation (or not) contract documents create. In some markets, the property is presumed to be sold “as is” except for any health and safety issues.

In other markets, the way the inspection and repair paragraphs read, it is almost inviting the buyer to create a repair list. Of course, a seller can always negotiate selling “as is,” but a variety of factors go into this.

If the property has structural components that are near end of life — roof, air conditioning and heating systems, water heater, plumbing, etc., it may be difficult to sell “as is” if the buyer will have difficulty obtaining property insurance or if it is extremely costly without replacing these items before closing, which in turn could cause a snag if buyer is obtaining financing.

Trying to pass off a home with an old roof or heating and air conditioning system while asking beyond top dollar could be difficult. These kinds of items are often cause for concern for many buyers who are already going well over asking price to buy a home and don’t want to have to spend money replacing a lot of big ticket items.

A seller may have to consider replacing some of these things to make the home more sellable and the transaction go that much smoother. Alternatively, obtaining estimates and being prepared to take care of this prior to closing once a buyer is found can also be an option, but since contractors and timelines can be challenging, this can cause unnecessary delays and frustration by all involved, so it is often better to deal with this before putting the home on the market.

5. What about selling ‘off market’?

With so many potential sellers hesitant to formally list their property due to the uncertainty of where to go, along with the pressure of having to uproot and potentially commit to another living arrangement they may be less than thrilled about, coupled with the unknown of how long it might take to find something they would want to buy, sellers may ask if there is a way to sell without having to formally list and go through the pomp and circumstance of photos, videos, broker opens, public open houses, etc.

In addition, as more information is forthcoming regarding the COVID omicron variant and rising cases in the U.S., sellers may have some concerns and want to look for a less intrusive way of selling their home.

Off-market sales have been the topic of a tremendous amount of controversy, and private networks promoting them have been in violation of the National Association of Realtors’ Clear Cooperation policy.

While agents haven’t really had to get into the weeds with a lot of the rules and regulations affecting our business in the past when meeting with a seller, the plethora of changes over the last two years is causing the tide to change.

Most sellers have no idea about the rules of the road when it comes to wanting to sell “off market” and the potential ramifications that could affect the agent and broker. They may not understand why you can’t post a few photos and spread the word on social media or have an invitation-only open house if you aren’t formally listed.

So, it is more important than ever to explain to a seller about what “off market” means and how it could impact their ability to sell. While “Coming Soon” status is not a new thing, it may be to consumer that haven’t been in the real estate market in awhile, thus it is also important to explain the difference between what “Coming Soon” means and what activities can be done in that status vs. “Off Market.”

While many MLSs throughout the country have some version of a “Seller Exclusion from MLS” form or allow a listing to be registered with the MLS but not formally listed on the market (which means no marketing can be done), the seller needs to understand what an agent can and cannot do if they choose to not list in MLS and how that may impact them and their bottom line.

Often wrapped in this discussion is, “I don’t want to formally list, so can’t you just find me a buyer who will pay my price and close when I want?” It will be important to discuss all of the above as it is not as simple as just that, hence less people with the ability to know about the property which may not result in finding the buyer who is the best puzzle piece to match with the seller in terms of price, terms, expectations, flexibility and so on.

6. What about iBuyers?

Despite the demise of Zillow Offers, there are still a myriad of companies out there promoting that they will buy a seller’s home without them having to formally go on the market.

Agents need to take the time to educate themselves about these various companies to be able to explain the potential hitches and “gotchas” involved that a seller won’t know about until they get to the closing table.

The actual costs may be quite eye-opening for a seller and end up costing more, plus leaving money on the table due to lack of leverage. Many large real estate brokerages have programs to generate an offer for a seller before coming on the market that can be used as leverage, if nothing else.

It may be helpful to walk through that exercise with the seller so they can see what they might be preliminarily giving up if they went that route.

7. What can you do on the commission?  

Questions about commission have rarely escaped any listing appointment. Several powerful pieces have recently been written in Inman about this very topic. The empowered and informed consumer has likely consulted their armchair expert “Google,” who has given them information that can be taken out of context.

That being said, sellers may be asking if their house is going to sell so fast, why do they need to pay x amount. It is crucial that agents refine their response to account for this question.

Three or four years ago, homes may have taken three to six months to sell or even longer in many markets, and it was easy to justify all the visible time you were going to have to put into the listing from being present at showings, multiple open houses, broker opens, fancy luncheons or broker events, following up on all the feedback, etc.

With some of the luxury price points, signing a listing agreement was almost like getting married to a property as you didn’t know how many months or years it might take to get it sold.

Furthermore, it is also important for sellers to understand the new NAR rules regarding display of buyer agent commissions on websites. While most sellers don’t care what the buyer or seller side get commission-wise (as they are just focused on the total amount being paid to the agent(s) involved in the transaction), it is important for sellers to understand that this information is no longer confined to the MLS system.

When they want to do the Texas two-step when it comes to trying to reduce the listing fee, they also need to know how that may impact the selling-side commission offering, along with how it stacks up relative to the competition.

While agents can’t intentionally omit showing a property due to the commission being offered if a client wants to see it, it is harder to police internal choices an agent makes when putting a property tour together of what to show a client (if they aren’t asking about a certain home) while omitting others.

Thus the endless circular debate ensues that agents don’t work for free and can choose where they want to spend their time and effort to get paid and for how much.

Selling a home is like a game of chess, and trying to play the game with minimal help or insight is like working against yourself. Demonstrate to a seller that besides marketing and all the hype you can create for a new listing, intentional strategy, attention to detail and knowing the contract and all addendums inside and out is crucial in anticipating and mitigating things from going wrong by being proactive in the first place.

Ensuring all negotiated terms are clear, providing a timeline of events, actively monitoring each milestone and being able to explain how the contract addresses the umpteen scenarios that can arise along with how you would handle them can make you a shining star to the seller. When you show them your value, they will feel bad for asking you to discount in the first place.

Shower them with so much knowledge and professionalism they will be absolutely blown away. Walk in the door with all the potential contract forms well organized in a binder or folder, indexed and tabbed so they understand what they could be dealing with.

Highlight provisions that they need to pay extra close attention to and how you will be hovering over all to ensure there are no hiccups. In California for example, the Residential Purchase Agreement (RPA) has undergone an overhaul and a new purchase agreement form and approximately 90 addendums have been updated.

The first page of the RPA is a very detailed chart of all contract timelines for every potential contingency and milestone.  That chart alone when shown to a seller (or buyer for that matter) can look quite daunting when they don’t really know what they should be looking for, but you do.

While some questions stay the same from year to year, others change based on market conditions and the tools and technology that the consumer is aware of, such as iBuying. When the market was at its low point during the real estate market crash and shortly thereafter, sellers used to want to know how much money they would have to bring to closing before the listed, or if they owed much more than they could sell for, what a short sale was and all the ramifications involved.

The agents in the business during the heyday of that distressed market got very good at doing cost sheets for a seller before ever setting foot in the door along with having their title company or short sale attorney on speed dial to consult with the seller on procedure and process.

While those days are gladly in the rearview mirror, hopefully to never return again, we must continue to evolve in strengthening our ability to answer our sellers questions with confidence and substance versus surface-level answers and saying “I’ll look into that,” but never following through.

Educating and empowering our clients will lead sellers to being comfortable with making good decisions and hopefully generating some more inventory in this challenging market.

Cara Ameer is a broker associate and global luxury agent with Coldwell Banker Vanguard Realty in Ponte Vedra Beach, Florida. You can follow her on Facebook or Twitter.
7 Questions Sellers Will Ask On Listing Appointments in 2022
GBREB NEWS

New Report: Rent Control Would Cut Housing Supply, Lower Values & Tax Revenue in Boston, Across Massachusetts

A new analysis shows rent control proposals would drastically reduce the supply of apartments, property values and tax revenue in Boston and throughout Massachusetts if the Legislature rescinds the voter-approved ban on the policy.

The new NAA reports analyze the impact if a 3% annual cap on apartment rents is implemented in Boston or across the state, as proposed in current legislation. Among the key findings:
● New apartment supply will drop by more than 700 units per year;
●  Apartment property values will drop by more than $260 million; and
●  Property tax revenue to the City of Boston will drop by more than $2 million annually.

Across Massachusetts, the negative outcomes increase exponentially:
● Impacts 40%, or more than 18,000 units of foregone new housing stock and existing units potentially lost due to infeasible repairs and upgrades of existing stock;
● Apartment property values drop by more than $820 million; and
Property tax revenue to cities and towns will drop by more than $7 million annually.

The reports further notes that, in Boston, apartments and their residents contribute more than $54 billion to the regional economy annually, and support more than 228,000 jobs. Throughout the state, apartments and their residents contribute more than $60 billion to the Massachusetts economy each year, and support more than 268,000 jobs. But if a 3% annual cap on apartment rents is implemented, both the economic strength and massive workforce created by the apartment industry would come under serious threat.

IMPACTS OF RENT CONTROL: MASSACHUSETTS
IMPACTS OF RENT CONTROL: BOSTON

New Rent Control Report
Article Courtesy of: Inman News
By: Christy Murdock
 
Any top producer will tell you that to build a solid foundation for your business, you must have a plan (and one that’s actually written down tends to stick and come to fruition).

Performance coach and counselor Dr. Darlene Treese’s five paradigm-shifting steps make a solid framework for developing a business plan, and she would know, having worked on leadership, performance and mental health with students, families and even the Department of Defense. 

We’ve paired some of Dr. Treese’s best advice with that of industry professionals on how agents should approach business planning for 2022. 

Shift your mindset

Many agents view themselves as service providers and see their work as transactional in nature. One of the most important things you can do to develop your business plan is to begin thinking of yourself as a business rather than as a salesperson. 

According to Mark Choey, HighNote founder and CEO, many agents fall into the trap of being super-busy but having very few long-term results that come from all of that busy-ness.

“As an agent, you are not only the CEO, but the CMO, CFO, CTO, Chief Economist, bookkeeper, handyman, janitor, and, of course, the VP of sales!” Choey said. Understanding all of the moving parts of a business can make a huge difference in how effective you are in building your business. 

“Don’t let others define your success. Know yourself.” – Dr. Treese

Begin by determining what type of business entity would work well for you, whether LLC, C-Corp, or S-Corp. Talk to your accountant or financial adviser and your attorney to better understand the advantages and disadvantages of each and to put a plan together.  

Once you start thinking of yourself as a business owner rather than an individual agent, you’ll begin to develop a perspective that helps you think big picture and long term, rather than focusing on immediate results.

Become resilient 

One of the biggest obstacles agents face is, ironically, the one of too much success. This often causes them to get bogged down in the day-to-day of client services, putting out fires and doing little to plan for the future. It keeps them from taking advantage of the potential their business offers. 

According to DOORA Properties broker-owner Troy Palmquist, planning for the year in advance, setting goals, and letting those goals dictate your actions is essential for keeping yourself focused and bringing more consistency to your business.

“So many agents fall on their face when they get busy and then stop doing the things that got them busy in the first place,” Palmquist said. One of the things that he finds particularly effective — sphere of influence marketing — is the first thing to go by the wayside when agents get a few clients in place.

Palmquist stresses the importance of setting a goal and creating a path, then sticking to the path as you have laid it out. Manage the growth as it comes rather than ramping back on your communication and marketing — the things that are working and creating the growth.

“View failure as a learning opportunity. View obstacles as challenges.” – Dr. Treese

According to York Baur, CEO of MoxiWorks, “One of the key resources that agents often overlook is their sphere of influence — their ‘database’ — which is where the majority of their business comes from.”  

Take advantage of the potential of your CRM and transaction management platform to simplify and streamline your operation. Making sure that you have the information you need in a system where you can use it to market is the key to success, Baur said.

Make investments

Investing in yourself and your business often means taking a leap of faith and setting yourself up for success. Part of that process is remembering what activities bring in money — your networking, your outreach, your expertise — and focusing your efforts on those activities. 

Many agents continue to think of themselves as a one-person show with total responsibility for every aspect of their business. According to Choey, the first thing every agent needs to do is hire an assistant if they don’t have one already. 

“If you feel like you can’t afford one, split him or her with another agent … or two! You absolutely need an assistant to handle all the details, admin, payments, scheduling, so you can do the things only you are licensed to do, sell real estate!”

“Invest in yourself. Act like you’ve already won.” – Dr. Treese

Next, Choey recommends hiring a business coach who will hold you accountable to “the numbers you need to hit each and every week and each and every month.” 

Those are not necessarily sales numbers, but numbers going out: 
• money spent on leads
• the number of calls to your sphere
• social media engagement
• time spent at networking events
• farming
• email newsletters
• the number of appointments taken
• the number of properties shown or previewed
• the number of clients you are working with

According to Baur, there are no expenses, only investments. “Every dollar, minute, or favor from someone else is an investment that needs to have a return in mind.” This means that everything you do should lead to a potential result or accomplishment. 

Maintaining consistent outward focus will result in consistent dividends. Freeing up your time and giving yourself the opportunity to perform pays for the people who help to make it possible.

Avoid negativity

For many of us, building a business means overcoming a lifetime of messaging about who we are or what we are capable of. Some of us suffer from imposter syndrome — the sense that we are only pretending to be as competent or capable as we appear to be — while others are fighting a childhood context of poverty, educational struggles or other challenges to our self-image. 

If there are people in your life who are constantly telling you what you can’t do or making you feel bad about your efforts and accomplishments, it’s time to avoid them, Dr. Treese says. “Surround yourself with positive people and with those who share your vision and can help it grow. Be with those you want to be like.” 

“Avoid toxic people. Surround yourself with positive people.” – Dr. Treese

Many agents ignore a valuable resource that is constantly available to them at little or no cost — brokerage meetings and masterminds, local associations with training and networking events, and state or national conferences and associational events. Connecting with the best and brightest at these events can be a powerful motivator and a way to learn from the experiences of successful colleagues.
 
In addition, if the pandemic has taught us anything, there are a plethora of online resources — from blogs to YouTube channels to webinars and online courses. You can learn anything from social media marketing to graphic design to bookkeeping to the ins and outs of specific real estate niches. 

When you come from a place of possibility and potential and surround yourself with like-minded individuals, fellow entrepreneurs, and positive thinkers, you set yourself up for success.

Take action

Finally, from real estate investor and radio host Abhi Golhar, is the fitting advice to “Stop planning. Start doing.” According to Golhar, too many people set out to spend time convincing themselves that they’ll be successful if only they develop a perfect plan at the outset. “It’s like a rocking chair,” Golhar said. “It gives you something to do but ultimately gets you nowhere.” 

According to Golhar, many agents spend too much time working on step-by-step plans rather than putting their ideas into operation. He offers the example of creating a marketing campaign: You can speculate about which strategy will be most effective, but you’ll get further if you design the graphics, write the copy, and get your ad live. That way, you can compare different iterations and hone in on the one that works best.

“Do what you are most passionate about.” – Dr. Treese

Often, planning is just another word for procrastination, and it’s never going to be foolproof. Make sure the planning process you do for 2022 is meaningful without being an excuse or a means of delaying necessary forward momentum.

Christy Murdock is a Realtor, freelance writer, coach and consultant and the owner of Writing Real Estate. She is also the creator of the online course Crafting the Property Description: The Step-by-Step Formula for Reluctant Real Estate Writers.
5 Business Planning Must-Do’s for 2022
As you may know, the free forms benefit provided to you as part of your membership dues through partnerships between the National and Massachusetts Associations of REALTORS® and zipLogix is changing. At the end of this year, NAR will discontinue the zipForms™ member benefit, and MAR has chosen a new, alternative provider – Remine Docs + – to offer free access to its MassForms Library. At GBAR, however, we’ve opted to keep this important member benefit on the zipForms™ Plus platform.
 
Specifically, the GBAR Board of Directors has voted to continue delivery of the GBREB Standard Forms Library on the zipForms™ Plus platform for at least two more years (2022-2023), and will partner with LoneWolf (which now owns and manages the zipLogix brand) to provide and service this product. What does this mean for you? As a GBAR member, you will have continuous, uninterrupted access to your current zipLogix account, transactions history, and forms files. There will be no new log-in account or credentials to set-up, no need to back-up or transfer files, and no additional cost to you. You will have access to both the desktop and mobile versions of zipForms™ Plus for GBREB Forms and MassForms™, and your membership dues remain the same for 2022.
 
Notably, for those who use the Digital Ink e-signature tool, broker transaction management tool - zipTMS, or other items available in the suite of products offered to agents and brokers, you may purchase them separately through LoneWolf. Meanwhile, for those who want choice and may wish to explore and use the Remine Docs + product, you will be able to find the Greater Boston Real Estate Board’s Forms there as well.
 
To learn more, please watch this GBAR Legal Live session includes a discussion on access to the GBREB Forms Library  on various forms platforms as well as language and content revisions on existing forms.
GBAR Retains zipForms Plus Member Benefit
Article Courtesy of: Inman News
By: Tom Toole

Just by getting on the phone, you can generate new leads and build your own listing inventory. The business is that simple. The people who have the most conversations and go on the most appointments sell the most houses

The real estate inventory shortage continues, with countless agents competing for too few listings. So, how will you take charge of your own inventory?

Instead of waiting for sellers to come to you, leverage the listings you already have and build your own inventory. Let potential sellers know about the work you’re doing, and establish yourself as the real estate expert in their neighborhood.

1. Use circle dialing

Reach out to the homeowners in an area where you’re already working and deliver value. Let them know that you’ve listed a home, you’re hosting an open house, you’ve gone under contract or you’ve closed a home, or share general neighborhood sales activity.

If, for example, you sold a home after getting multiple offers, you can use that information to deliver value to the other owners in the neighborhood using a script similar to this one.

Congratulations on the fact that your home’s value just went up. This is Tom Toole with RE/MAX Main Line and the Tom Toole Sales Group, and we just sold the Wolf family’s three-bedroom, two-bath property down the street after receiving four offers on the house. How does your home compare to their house?

Make sure that you use the name of the homeowner in your communication because these owners will likely know your customers, and using a name personalizes your message.

At this point, the person on the phone may tell you that their house is larger or smaller, and then you can continue the conversation.

The buyers who lost out on that home still want to buy in this neighborhood, so I wondered whether you have any interest in selling your home.

Because you’re the agent with the most recent sale in the neighborhood, you can establish yourself as the expert in the area. And now you can work to help the buyers who lost out on the deal, and you can help the existing homeowners begin a conversation about selling their own homes.

From here, you can begin the normal process of qualifying the client and working to build rapport.

2. Leverage your phone’s contact list

Instead of beginning with the first name on the list, scroll all the way down to the bottom because those are often the people we never call. Craft a relevant message that you can share with the people on your list. Here’s an example: 

Hey Nick, it’s Tom Toole. I realize things have been pretty crazy this year, and I wanted to see how you and your family are doing.
Add questions like, “how has the work environment been?” If they have kids, ask about school. Have a human conversation, and do not talk about real estate. (Think FORD script: family, occupation, recreation, dreams.)


Remember, these people know you’re a Realtor, so if they have questions about the market or if they have a need, they will ask you. This is the opportunity to provide value by being the knowledge broker and knowing the market.

They may ask you about the market or something else related to real estate, and you’ll have a great opportunity to provide value in the form of information.

These people in your phone book will include family, friends, past clients and other people in your sphere of influence who already know, like and trust you. The list might also include mortgage brokers, estate attorneys, or accountants, and other people you have helped your clients or with whom you have done business.

Bonus tip: Start at Z in your phone book, and work your way up because everyone always starts at A in the contact list.

3. Take advantage of your CRM

Identify all the long-term leads you haven’t talked to in a while, qualified leads that you’ve previously engaged and past clients who have been in their homes for a while. Send them this simple text:

 Hey Nick. The holiday season is already here and the spring market is just around the corner.  Question: have you had any thoughts about selling during the coming year?

The fact that this has been one of the most seller-friendly markets in history gives you reasons to engage those people who are thinking about selling.

As an agent, it is your job to be the knowledge broker and pass on what is happening in the market. You cannot leave it up to the consumer to know, and when you internalize that mission and come from a place of help, it shines through in your dialogues. It is an easy and effective way to get buyers and sellers off the fence. 
 
By simply getting on the phone, you can generate new leads and build your own listing inventory. The people who have the most conversations and go on the most appointments sell the most houses. The business is that simple.

Do the work that other agents aren’t willing to do, and you can drive sales now and well into the future, regardless of inventory shortages.

Tom Toole is the founder and team leader at Tom Toole Sales Group. 
 
3 Proven Tactics For Overcoming the Inventory Shortage
 

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Mar 14, 2022
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GBAR New Member Orientation- Agency Webinar
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