ACCESS THE MILITARY MARKET THAT MOST REALTORS® NEVER HAVE AN OPPORTUNITY TO TAP INTO

Expand your client base by providing your agents with business development tools to attract military consumers.

POWERED BY LEADING REAL ESTATE COMPANIES OF THE WORLD®

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Introduction

Working with members of the military presents tremendous business opportunities, along with a few special challenges. Providing outstanding service to this deserving population can lead to significant residual business, since this is a tight-knit group with tremendous loyalty. The Military on the Move® (“MOM”) program was developed by Leading Real Estate Companies of the World® to provide LeadingRE member brokers with a competitive business development tool for agents to attract and retain business from military consumers. The purpose of this Program Manual is to provide you with a complete guide and resources for implementing the program in your company and local market(s). Military on the Move® is a simple business development tool and real estate benefit program offering a rebate for buying and/or selling a home, in states where allowable by law, with participating LeadingRE members promoted and linked via a new national website, USMilitaryontheMove.com. As a general rule, the various branches of the military do not make institutional recommendations regarding specific real estate companies, though individuals (colleagues, family and friends, etc.) can and obviously do so. Often, personal recommendations are far more effective than any other form of marketing, and in the military world, word-of-mouth marketing is tremendously powerful and is an essential part of this culture. Among the unique advantages that affiliates of Leading Real Estate Companies of the World® enjoy are market dominance, area expertise and high service levels. Military movers, like anyone who relocates to a new community, expect and deserve the very best you have to offer. In addition, many military consumers have come to expect something else – the cash rebates or credits that are offered by an ever-growing number of brokers through affinity programs. Our goal is not to compete head-to-head with the major affinity programs, to whom many in the military is extremely loyal. Our goal is simply to offer an alternative for members of the military to work with the top brokers in every market without financial penalty. In so doing, we also offer you and your agents the opportunity to retain business which you might previously have lost. It is helpful to understand what other programs are available to the military community, so we have included a competitive overview of other affinity program cash bonuses. In developing Military on the Move®, we decided to leverage our greatest assets – strong, quality oriented independent brokerages – and offer a superior benefit to members of the military so that they don’t have to choose between working with the best agent and receiving a cash rebate. With the introduction of Military on the Move®, LeadingRE is making a statement to our men and women in uniform: “We value your service, and we want your business.”

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Program Requirements The basic benefit to the military consumer is a cash rebate or credit equal to 20% of the function side commission paid at closing. Certain states do not allow payment of such a rebate. It is the broker’s responsibility to understand and adhere to local and state laws on providing the rebate/credit. When working with sellers, the individual broker/agent may opt to negotiate fees in lieu of the rebate. Offer Basic Rental Services – Since many members of the military are renters, Military on the Move® broker members must agree to provide information about local rental practices, counseling and rental listings upon request. LeadingRE’s Rental Services Training Guide provides assistance with structuring these services if needed. If your company has a property management and/or rental division, you may wish to offer a discount or other “special deal” to military consumers. Train the Trainer Review the marketing, training, webinars, and agent resources on Access.LeadingRE.com. All marketing materials, social media campaigns, and training resources including the PowerPoint module with instructor notes are available in the U.S. Military on the Move section of access.leadingre.com. Contact the program administrator at LeadingRE at militaryonmove@leadingre.com for an overview and to answer any questions. There is a MOM rollout outline in the resources section at the end of this guidebook to help you get organized. You may also request a MOM mentor for guidance and support to plan your rollout. Determine Eligibility Your brokerage should determine eligibility in your market. At a minimum it should include active duty military, retired military and wounded warriors. It is recommended that you expand beyond to be competitive with other affinity programs. Additional constituencies may include honorably discharged, military family members, Department of Defense civil service employees, etc. Some brokers will include first responders. Additional products and services In addition to the rebate/credit, you may wish to offer other benefits/services to military consumers in your market and include them on your broker MOM website. These may be services/discounts you offer internally or those that can be negotiated with local service providers. For example:

• Free newcomer information package • Mortgage offering (reduced origination fee) • Title Company (reduced premium) • Free homeowner’s insurance estimate • Cable Company (free hookup and 1 free month’s service, which you should be able to

negotiate with the local cable company) • Home warranty discount (so long as the brokerage does not receive compensation deemed

unlawful by RESPA laws) • Security Systems • Utility hook-ups • Pest Control Services

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• Cleaning Services • Pool Maintenance • Landscaping Services • Home Repairs, etc. • Hotel/motel discounts

Household goods discounts are not normally offered because the military pays 100% of the cost to move military personnel, although this could be a benefit for non-active duty personnel. Agent Training/Certification Agents who wish to participate in the MOM program should be asked to sign the Agent Commitment statement outlining their obligations to the military consumer. Most brokerages offer the training several times a year during the initial roll out, and if possible, at each office location. Ideally, you should include a loan officer that can train the agents on how the rebate/credit can be applied at closing and provide information on VA loans. Additionally, it is recommended that the MOM administrator (which is often the relocation director) has a “MOM Captain” in each office, so that the administrator has backup, and a cheerleader for the program at the local office. We have created a comprehensive train the trainer program for you to deliver to your agents. Because of the unique nature and requirements of the military consumer, it is strongly recommended that you make it mandatory for agents who will market the program and work with MOM referrals to attend Military on the Move® Agent Certification Training. The Military on the Move® Training and Certification PowerPoint includes slides on the following:

• MOM Program Explanation • What’s in it for me? • How to market the program • How the rebate/credit is applied at closing • Referral Policies & Procedures • Military Orientation

Be sure to view the slides in the “notes” format, as you will find additional comments and instructions for the individual conducting the training. There are a variety of resources designed to help non-military agents not only learn the workings of the Military on the Move® program and procedures involved, but also to understand some of the Military Terminology and Acronyms, Military Protocol and Ranks, basic housing allowance, and other information so that they can work comfortably in the military culture. The referral policies and procedures section covers Agent Referral Guidelines and includes step-by-step instructions for both buyer referrals and listing referrals. A Certified Military Specialist Designation and logo can be provided to the associates to use in his/her promotional material if they have completed the MOM training your team has administered. The training can vary in time but is typically a half-day session. Finally, Relocation Department Operating Procedures is provided as a roadmap for your

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relocation department, and to ensure a consistent experience for military consumers working with MOM Brokers throughout the network. Promoting Military on the Move® A complete package of marketing materials can be found in the U.S. Military on the Move section of Access under LeadingRE Member Programs. Included are: A variety of customizable consumer promotional flyers, postcards and social media campaigns that are both company and agent facing. “Ask Me About MOM” Sticker Posters – to display in your sales offices to promote the program A “What’s in it for me?” MOM course in the Institute Pattern press release announcing your involvement MOM promotional video: http://marketing.leadingreresources.com/MOM/MilitaryontheMoveIntro.html These items can be customized by ordering through one of LeadingRE’s Solutions Group vendor partners, Quantum Digital or ExpressDocs. Marketing Strategy and Campaign Consider the military consumers in your market. Do you have a base? Are you marketing to veterans? Will you include first responders? How many veterans are in your market? You can find out at http://www.census.gov/

Determine which military consumers you are targeting and develop a strategy to promote the program. You should be incorporating MOM in your marketing materials, company website, and social media pages. It should include anyone that is eligible for the benefit. To position yourself as the best real estate agency for military needs, get the word out with the local military community. Volunteer or sponsor local veteran organizations and veteran events. Exhibit at a military trade show, or at a recruiting fair for military looking for civilian jobs. Develop relationships with the staff at your local VA hospitals and assisted living facilities. Military on the Move Website Military on the Move® has a national website, http://www.USMilitaryontheMove.com as well as individual member company sites co-branded to each member. The URL for those is the same as above with /broker name at the end. Members can elect to use their local-cobranded sites by linking to them from their main websites to target military consumers and promoting that domain name in consumer marketing. Clients making inquiries will register on the site using a registration form. Like all e-leads, these will require the skills of a good e-leads coordinator to develop the relationship online. The business rules for routing the inquiries generated by the MOM website are as follows:

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All inquiries sent to members from the MOM website (both corporate and co-branded) will be routed to the email address submitted on the MOM member enrollment form. Inquiries from co-branded site:

All inquiries that come in from your co-branded website will be sent directly to the email address noted on your enrollment form.

Inquiries from corporate site:

1. From Member Profile Page: • The inquiries will be sent directly to the specific member listed on their profile page.

2. From the Registration form:

• All inquiries will be routed to corporate and if multiple MOM members are tied to a service area or base, they will be placed with the member contact associated with that area on a rotation basis.

• LeadingRE will charge a 38% referral fee to participating members for these incoming website leads if a sale results for eligible website visitors. A 20% rebate to the consumer will be funded by the receiving company out of the 38% fee. Social Media and Networking Create a Military on the Move company page and encourage your agents to do the same. Use the hashtag #usmilitaryonthemove to socialize your posts on all platforms. This will help military consumers more easily discover the program, and will allow you to collaboratively promote the program with fellow MOM members. Additional social media tips:

• Like and share the MOM public Facebook page: https://www.facebook.com/leadingremilitaryonthemove/

• Submit blog posts! We want to feature articles about successful MOM closings, challenging military relocations, or any informative articles that would appeal to the military consumer. You can read our blog here. We will cross-promote all blogs on our Facebook page to get maximum exposure for the program and your company.

• Like” the Facebook pages for local bases and other military establishments, such as the local military hospital, training centers, recruitment offices, etc.

• “Like” the general pages for all military branches. • Share interesting military customer service stories and military relocations on your social media

pages and post client testimonials.

• If there is regular traffic between other bases and your local base, reach out to LeadingRE

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• affiliates in those locations to prospect for business you can develop together. If military school graduates are likely to come to your location, consider visiting those schools and collaborating with the local LeadingRE member there

• Military families are often using social networks and communities as resources to help them

prepare for relocating to new assignment destinations. You can increase the chances of them finding you and your company by hosting a military family specific blog with postings about your area, family resources, stories featuring military families who have recently moved to your area, etc.

• Most bases and VA Hospitals have Facebook pages or other social media groups, many of which are open to the public, so join in the conversation when possible, but remember to add value with helpful information rather than selling.

• Navy.com/Social-Media.html • Army.mil/Media/SocialMedia • AF.mil/SocialMedia.asp • Marines.mil/USMC/Pages/SocialMedia.aspx

Base Outreach If you haven’t already, take some time to develop relationships with personnel in the base Family Services and/or Housing Office. The Housing Office may have a different name in each of the branches; however, the goal is always the same. Service members who are interested in living on base after PCSing call this office to request a home on base. Most baseshave a wait list (often years of wait) as there are not enough base homes for our service members and their families. While military staff is prohibited from recommending specific service providers, most are willing to display information, and establishing a relationship with housing office personnel will be invaluable.

• The center may have a brochure rack or resource library where you can stock brochures or newcomer information kits. (Avoid overstocking and plan return visits for re-stocking as appropriate.)

• Inquire about the possibility of offering informational seminars, such as First Time Buyers, Mortgage Financing, Selling in a Buyers’ Market, etc.

• Volunteer to serve on a taskforce (e.g., to enhance the quality of life for military families) or offer to sponsor activities on the base such as family picnics, presentations about the community to newcomers, etc.

• Other base opportunities include:

• TAP: The Transition Assistance Program - An office located on most bases that aids service members in transition from being active to becoming a civilian. This is the time in a service member’s life when he or she will finally be “stationary” and often buy their “forever” home. Put together an informative flier they can keep in the office or add to their TAPs training manual, possibly including links to information about VA Home Loans as well as “Tips for Moving.”

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• In and Out Processing - The office a service member contacts when they are PCSing to get information on the city, learn where to live, etc. In some cases, it may be possible to station an agent at this office when it is open.

• Ombudsman Programs - This is a support program for spouses of all services and the first point of contact for most military spouses who have a need (i.e., the family gets orders to move and needs a real estate professional in the new city). It is very important to note that in a military family, the spouse of the active duty service member often runs the home. Do not discount the spouses. They pay the bills, mow the lawn, pick the homes, and often even give birth while their spouses are gone. They take great pride in the role they play, and it is essential for service providers to understand this. Many times, the service member doesn’t even see the home purchased by the spouse until closing day. Military spousal programs are a tremendous resource.

• Local military base websites frequented by service members. You may be able to post listings or other helpful information on such sites, positioning your company as a trusted resource. Having a champion on base will be a major factor in your success, so if you or your agents who have military connections are vocal about the program with those contacts, you will see results. If you have former military personnel within your company, consider inviting them to assist with marketing your services – they have easier access than civilians to the base. Anyone can request a visitor’s pass by contacting the Family Services Office by phone. You will need to present the pass and credentials prior to being granted entry and your time on the base is limited. You will need to request a new pass each time.

Remote Serving Personnel Approximately 10% of Active Duty Military serve remotely, i.e., not near a military base. Examples of this include military recruiters, acquisition support personnel, etc. Visit those locations to provide information about your MOM program benefits. (You can find a list of cities on the 2012 Basic Allowance for Housing lists, in the appendices of this manual.) Print Advertising The national publications such as “Army Times” are prohibitively expensive; however, you may choose to advertise locally in the base publication. In heavily military population areas like Washington, D.C. advertising in DCMilitary.com will display your ad in multiple military newspapers for the various branches. Direct Mail & Email Marketing Any inquiries you receive from your website or other sources, note that email addresses ending in .mil are prospects for your military services because all email addresses for military personnel from any branch end with .mil. You can target an email campaign to these prospects. Are you a “Veteran-Owned” Business? A veteran must own at least 51 percent of the company, and must also be in control of management and day-to-day operations within the business. To prove that you are a veteran, you will need to have a Department of Defense Form 214 (DD 214) (the form issued upon retirement, separation or discharge from active-duty military.) If your company meets these criteria, you may self-certify as a Veteran-Owned Business. Advertising your "veteran-owned business" status on your storefront, signage, website, letter head, and at the bottom of e-mails will help you attract military consumers and other new business.

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Understand the Basic Allowance for Housing (BAH) in your area The BAH was designed to offset housing expenses for active duty military who can’t take advantage of base or “military authorized” housing. Many active duty military correlate their BAH to monthly expenses, such as rent/mortgage, utilities, insurance, etc. Knowing the BAH for your area (see 2012 Basic Allowance for Housing ) and being able to provide current information on average monthly expenses for utilities and insurance will be of great value to the military consumer. Rank is disclosed on a “Need to Know” basis In the military, pay grade is virtually synonymous with rank. Therefore, disclosing a buyer’s rank may allow a military-savvy seller to make assumptions about what he/she can afford. Best practice? When addressing a member of the military, use the appropriate title for his/her rank (see Military Protocol). When referring to a member of the military, use civilian titles, such as Mr., Mrs., Ms., etc., unless instructed otherwise by your client. Be conscious of the possibility of deployment Most active duty military may be deployed at any time, leaving the spouse and/or family on their own. When showing properties, help the buyer understand the context of a rural location, extreme weather conditions, frequent power outages, etc. Also, be prepared to provide a resource for crime statistics. NOTE: If you have suggestions or practices that have worked well for you with the military market, please submit those to militaryonmove@leadingre.com and we’ll include them on an ongoing basis.

Referral Policies and Procedures In general, it is suggested that you handle MOM leads similar to internet leads; i.e., if you normally charge your agents a fee for internet leads, do the same with MOM leads. Keep in mind that 20% of the function side commission is due the military consumer. If you don’t normally charge a referral fee for internet leads, make sure your agents know that the rebate will be funded from the commission. Incoming Referrals Per our network policies and procedures regarding affinity programs, you should not offer the MOM rebate on any incoming referrals that you receive unless the referring broker sent it as a MOM referral. If your agents offer the benefit to the client, they will have to honor the 20% rebate and the usual 30% referral fee. Outbound buyers/sellers If you have the opportunity to refer a military consumer, there will be an option in RELO® Xchange to identify the referral as “MOM” business. The agent working with the Military consumer must certify that he/she has seen a valid military ID or documentation required based on brokers eligibility requirements. The destination broker will calculate the 30% referral fee and fund the rebate/credit to the military consumer at closing, either via check or credit on the Closing Disclosure or Settlement Statement. The brokers may track this referral in Xchange by marking it as Origin Type: US Military On The Move. Xchange walk-throughs for entering these referrals are attached in the appendix to this manual.

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If the military consumer referred is a seller who opts to negotiate a reduced listing commission in lieu of a rebate, the destination broker will owe a referral fee equal to 10% of the listing commission to the origin broker. No network fee will be due LeadingRE, and both origin and destination brokers will be credited with a closed referral. The destination broker is responsible for providing LeadingRE with proof of rebate or credit fulfillment, i.e., Closing Disclosure or Settlement Statement or check copy. Local buyers/sellers Local business generated from Military on the Move® (whether from www.usmilitaryonthemove.com or your site) is within the purview of the individual broker, and not subject to LeadingRE’s referral policies.

Below is an example of a company policy. The referral fee amounts are included by way of example only. Internal program financials should be formulated pursuant to your individual business judgement.

Incoming/Local Military on the Move Referrals

Company generated incoming referrals: Consumer comes directly to company will be placed to a Military on the Move agent at a [40%] referral fee and are capped at a [60%] split. [20%] to the military consumer [20%] to the department.

Agent-generated incoming referrals: Company agent already knows the military client AND is representing the client

• Placed at a [30%] referral fee. Agents are paid at their split. o [20%] to the military consumer o [10%] to Relocation Department/Military on the Move

Agent-generated incoming referral when another company agent is required: The consumer is purchasing/listing outside the agent's area of expertise, but within the area covered by agents within the company

• Are placed at a [40%] referral fee o [20%] to the military consumer o [15%] to the referring agent o [5%] to Relocation Department/Military on the Move

• Incoming referral example: If the military member purchases a $225,000 home and the

commission earned by the agent is $6,750, they will receive a $1,350 rebate at settlement. There is no dollar limit on the rebate.

Outgoing/Out of the Company’s Market Referrals

• Outgoing Military on the Move referrals are placed with one of our LeadingRE network brokers. The agent is always paid at their split; they are never capped on these Outgoing Referrals.

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After-the-fact or Inbound Referrals Occasionally, a customer referred to another broker will learn that he/she is eligible to participate in the Military on the Move® rebate program after the fact. When this happens, the destination broker must contact the origin broker to discuss whether the origin broker will comply with the military consumer’s request for a rebate. If the origin broker does not participate in the MOM program, they are not eligible for a network fee waiver and it is the responsibility of the destination broker to make up the fee. In a situation where the origin broker is not part of MOM, but the destination broker may lose the client to a competitor, please contact miltiaryonthemove@leadingre.com for assistance. There is no obligation to provide the program benefit if it was not discussed at the beginning of the relationship. Procedures for contacting MOM clients Response-time standards and other information concerning when and how to contact MOM prospective clients are included in Relocation Department Operating Procedures. Disclosure Many states require that any payment made to the principal in the transaction be disclosed. You should investigate your local/state requirements and use the attached Rebate Disclosure Form or similar document as needed.

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U.S. Military on the Move®

Appendix of Resource Materials, Information and Forms

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Military on the Move® Rollout Outline

Train the Trainer (updated 9/19/2019)

Before rollout

• Member company identifies MOM administrator who will lead his or her company in all aspects of MOM, including:

o Training o Communication o Tracking o Promotion o Growth plan

• Train the trainer o A MOM program mentor will train the MOM administrator for the member company

PPT presentation via zoom that covers: • Why company X is offering MOM • The competing military rewards programs

o Navy Federal o Realogy Military Rewards Program

• Identifying the local Realogy and Navy Fed brokers they are competing with

o Understanding the Realogy and Navy Fed programs and how they compare to MOM The rebate Eligibility Timeframe of receiving the rebate

• Why the opportunity in for MOM has grown exponentially since September 6, 2019

o Level playing field o Agent-agented, business development mindset

• Understanding how to determine the MOM rebate amount (30%) o MOM buyer or seller gets 20% o Is member broker keeping the other 10%? (best plan for

business development) • Be able to explain the difference between MOM rebate and Realogy or

Navy Federal rebate o Transparency

• Determining eligibility for member company o Understanding why limiting eligibility to 20-year retirees, active

military and wounded warriors will reduce your opportunity by drastically

• Understanding how the rebate can be used in member’s state

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o Suggest partnering with a local lender for training, so the agents understand the mortgage rules pertaining to rebates

o If not in a state where rebates are allowed, is there any benefits that can be substituted?

• Business development opportunity o Identifying the opportunity in the local market o Understanding that some incoming MOM business is to be

expected, but the majority of the MOM business will be agent-generated in member’s local market

• Create a company policy for managing the MOM transactions within the company o Managed in Relo department (ideal) o Eligibility forms and Rebate Disclosures turned in to Relo once contract is written o Commission splits o Stop gap for finding MOM business that has fallen through the cracks or that doesn’t get

reported through the Relo department • Creating a plan for tracking MOM business

o E-Relo o Relo Spec o Relo Exchange o Excel

• Getting the broker / owner / managers onboard o Train them before rolling it out to the agents

Critical to the success of the MOM program o Partner with your marketing department

Plan MOM promotional materials (the MOM section of ACCESS is a great start) • Creating a plan for company rollout

o Staff and leadership training New training and refresher training (lessons learned)

o Are all agents eligible? o Agent training

New training and refresher training (lessons learned) o Create a plan for promotion and participant recognition

Monthly, quarterly, annually • Take advantage of MOM marketing tools on Access that can be

customized and branded o Create pre-rollout hype by announcing the program at a large company meeting, such

as a sales meeting

Rollout • Schedule training

o The MOM administrator should do the training. If not, the trainer needs to be part of the conversation when the MOM administrator is trained

o Offer a few training sessions so that as many can attend as possible

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o Have handouts and discuss all in detail Rebate disclosure forms Eligibility forms Marketing examples

• The agents need to have the same information the MOM administrator has. o Use the same training presentation

• Critical for the agents to understand that MOM is not a discounting program. Similar rebates are being offered all over town by Realogy brokers and the independent company agents are missing out if they don’t have a similar or better product

• Focus on: o How to find MOM buyers and sellers o Eligibility o How the rebates can be used, based on your state rules (partner with mortgage

company) o Interactive exercises where agents determine the rebates based on the sales price o Role-playing scenarios for agents to explain the MOM program, with one party

being the agent and the other being the buyer or seller. This helps them become comfortable with the ins and outs of the program so they are confident when they talk with clients about it.

o Understanding the difference between offering MOM on the offense and defense • Provide samples of customizable MOM marketing material that can be used at open houses,

listing appointments, buyer presentations, closing certificates, etc.

Post-Rollout Follow Up and Promotion

o When an agent turns in a MOM contract to relocation department (Having the MOM contracts come through the relocation department is the best way to track the business): Be sure Eligibility Form and Rebate Disclosure are filled out and that the

buyer/seller has a copy of the form documenting his or her rebate Be sure they’ve had the discussion with their buyer/seller on how they want to

use the rebate (in states where cash at closing is not allowed) Be sure that the mortgage company, title company and or closing attorney are

aware of the rebate and can apply it at closing Once MOM contract closes, add it to whichever tracking system you use (e-Relo,

Relo Spec, Relo Xchange) o Promotion

Top of mind awareness of the program is critical for it to be successful Have marketing department create monthly promotional pieces recognizing

agents using MOM Get client testimonials from agents who have closed MOM buyers and sellers

and use them to market the program Recognize a MOM agent at your annual awards banquet

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Military on the Move A Proven Business Development Strategy

Member company: Blanchard and Calhoun Real Estate Company Agents: 170 City, State: Augusta, GA

MOM Opportunity Augusta, Ga. Is the home of the U.S. Army Cyber Command and Signal Corp. We have 30,000 active military, retired military, families of and civilians traveling through the gates of Fort Gordon daily. We also have two VA hospitals and a hospital on base.

Competing Brokers in Market Offering Realogy Military Rewards and Navy Federal Rebate Programs We have three – a C21, a Better Homes and Gardens and an ERA

MOM Eligibility We expanded eligibility locally to mirror Realogy’s and Navy Federals, so we include active, former, retired, families of and wounded warriors. If we stayed with the national MOM eligibility of active, 20+ year retirees and wounded warriors, we determined we’d miss approximately 70% of the market to Realogy and Navy Federal because so few military stay in for 20+ years. We’ve also expanded eligibility to active first responders, including police officers, fire fighters and EMTs.

Rules for MOM Rebates in Georgia and South Carolina We cannot give a buyer or seller a check at closing. The rebate has to be handled during the transaction and must be included on the Closing Disclosure. With buyers, we see rebates going towards closing costs, allowances for flooring, paint, blinds, appliances, etc. With sellers, it’s usually handled as a commission reduction to the listing agent.

Business Development Strategy We are in our 5th year with Military on the Move. We are very appreciative of the leads we receive from other MOM brokers in our network, but the majority of our MOM business is agent-generated locally. It is one of the best business development tools we’ve used. In our MOM agent training, agents learn who the local Realogy/Navy Federal brokers are, about their process of finding and choosing an agent and about the rebates they give. Then we train them how to use that information to compare and contrast and sell the Military on the Move program. Our agents use MOM on the offense and the defense. When used on the offense, they ask their clients on the first meeting if they have any military affiliation. If they do, many of them will offer it up front. Most buyers will commit to working with an agent who offers them some incentive upfront. They understand that if they don’t offer it up front, they may lose the opportunity to one of the three Realogy/Navy Federal brokers in our market. Some offer it only on the defense, if they think they will lose a buyer or seller to Realogy or Navy Federal. They have found, though, that many buyers and sellers are offended that they didn’t offer it up front and they lose the opportunity anyway. We base MOM referrals on 30%, just like LeadingRE business. The rebate is 20% and the other 10% comes to our company to help offset the costs of marketing and promoting MOM.

MOM Results (since 2015) Closings: 271 Volume: $56,728,574

Military on the Move A Proven Business Development Strategy

Member company: Watson Realty Corp. REALTORS Agents: 1,500 MOM Certified: 352 Market Area: St. Mary’s, GA, Northeast & Central Florida, Florida Treasure Coast

MOM Opportunity There are four bases, a large training facility and a high population of veterans in our marketplaces. NAS Jacksonville, Kings Bay Naval Station, Naval Station Mayport and Patrick’s Air Force Base have a collective total of 120,000 military population stationed at the bases. Camp Blanding Army Base is a large training facility with 9,000 military members assigned to the base. Moreover, Florida is the second highest in veteran population and with the expanded Military on the Move eligibility, there are in excess of 1.5 million residents to pursue.

Competing Brokers in Market Offering Realogy Military Rewards and Navy Federal Rebate Programs There are multiple Realogy broker brands (Coldwell Banker, ERA, Century-21 and Better Homes & Gardens) in Watson’s footprint promoting and offering the Realogy Military Rewards Program. Navy Federal is a competitor sending opportunities to these brokers but there does not appear to be substantial competition with this lender. On a side note, Watson associates are still getting multiple opportunities a week from Veterans United and Homes for Heroes which are competing for this same audience.

MOM Eligibility Watson expanded eligibility locally to mirror our competitors and even the playing field, so we include active, veterans, retired, and immediate family members of the like.

Rules for MOM Rebates in Georgia and Florida In Georgia, neither a buyer or seller can receive a check at closing. The rebate has to be handled during the transaction and must be included on the Closing Disclosure. With buyers, typically rebate funds are put towards closing costs, allowances for flooring, paint, blinds, appliances, etc. With sellers, it’s usually handled as a commission reduction to the listing broker.

In Florida, the military rebate can be credited on the Closing Disclosure with lender approval and concessions not being met. Alternatively, the buyer or seller can receive a check after closing from the broker’s commission provided that check is payable to a ‘party to the transaction’. The majority of our MOM closings have the rebate applied after closing.

Business Development Strategy Watson signed up when Military on the Move was first introduced by LeadingRE and struggled to find a place for the program given that the brokerage already had a program to match other affinities helping associates retain business. After truly reviewing the opportunities in the market a MOM plan was developed, training was created, and full launch of Military on the Move was in full force May, 2018 with supporting material for associates to use to market and capture business. The Watson philosophy is to create a robust program with supporting materials and marketing plans for associates to generate business helping to expand their sphere and market to this unique population. In the second year after launch, an increase in closed business by 600% was realized proving the momentum is strong. Watson’s Military on the Move administrator keeps this program top of mind for the MOM certified associates. Watson has created a small community culture with the MOM associates and facilitates ongoing dialogue with program ideas, successful marketing promotions along with collaboration on events which are fostering strong relationships amongst the associates and helping to increase business. The termination of the USAA Mover’s Advantage Program has certainly sparked engagement within the brokerage providing encouragement for more associates to complete the training and obtain certification. The more boots on the ground are promoting the Military on the Move program coupled with continued success there will be more opportunities.

MOM Results (since launch in 2018) MOM Eligible Registrations: 262 Local Closings: 96 Volume: $15,400,742

Outbound Closings: 12 Volume: $4,256,617

Benefits of Offering MOM to Buyers and Sellers

• Several agents have “clinched” buyers / sellers on the fence by offering this program• Agents have used the program both on the offense and the defense very successfully

o Convert floor calls to buyers quickly when mentioning MOMo Convert past USAA clients to MOM before they go back to another military affinity

program• New agents can use MOM to “hook” their first buyer or two

• You become an ideal candidate for incoming referrals from other Military on the Move® agentsacross the country.

• Military on the Move is a competitive program to business that has only been available toagents at franchise brokers in the past and with a much lower referral fee.

• Outgoing MOM referrals have a higher conversion rate than non-MOM

• Most agents who believe in the benefits of offering MOM have gotten at least one referral fromthat original client

• Buyers and sellers know the rebate comes from you and they are genuinely appreciative

Can I just use MOM locally?

• No! As part of the Leading Real Estate Companies of the World, we have MOM brokers all overthe world

What’s in it for the military consumer?

• Superior, military-specific service delivered by strong local real estate market leaders• Introduction to destination companies who can deliver similar quality• Cash rebate or equivalent at closing where allowable by law – no waiting for rebate check!• No mortgage tie-in – “use any lender you wish”• Rental information and assistance

Why Offer a Military Affinity Program like MOM?

Active military, retired military, former military, military family members, and wounded warriors are buying houses every day in our market, and they receive military affinity program rebates when they use specific brokers – and our brokeage is not one of them.

Which military affinity programs does MOM compete against?

• Realogy Military Rewards and Navy Federal Credit Union

Which Brands are in those networks?

• C21, BH&G, Coldwell Banker, ERA, and Sotheby’s.

Which brokers participate in Military on the Move?

• LeadingRE member companies

Why is it a huge deal that USAA will no longer be offering their membership a military affinity program?

• Because their 12.8 million members closed 80,000 transactions through the USAA Real EstateRewards Program in 2018 alone! This is our business development opportunity!!

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10 States that Restrict or Forbid Real Estate Brokers from Offering Consumers Rebates Source: US Department of Justice website

Alabama (R) Alabama law also prohibits brokers from offering consumers rebates. In practice, the Alabama Real Estate Commission permits rebates before closing but forbids cash payments or other incentives offered after closing.

Alaska Alaska law prohibits real estate brokers from sharing their commissions with unlicensed individuals and, since consumers are not licensed real estate brokers, home buyers and sellers in Alaska cannot benefit from consumer rebates.

Iowa (R) Iowa law prohibits consumers from receiving consumer rebates when more than one broker assists them to buy or sell property. For example, two brokers may believe that each has a specialty in particular parts of the real estate transaction and wish to divide up the work to focus on what each does best. In such a situation, the home buyer may not receive a rebate.

Kansas (R) Kansas law prohibits real estate brokers from competing with each other by offering consumer rebates. This reduces the ability of consumers to benefit from competition among brokers. However, according to the Kansas Real Estate Commission, real estate brokers may offer their customers use of moving vans, charitable donations, coupons, closing costs, homeowner warranties, inspections, home repairs, and insurance among other things in the course of the real estate transaction.

Louisiana Louisiana law prohibits real estate brokers from paying rebates to home buyers and sellers and insulates real estate brokers from competing with each other to offer services to consumers at competitive prices.

Mississippi Mississippi law prohibits real estate brokers from paying cash rebates to home buyers and sellers. If any real estate broker attempts to compete on price by offering consumer rebates, the Mississippi Real Estate Commission may suspend or revoke a broker’s license. It is legal to offer a commission reduction to sellers, and for buyers, the commission reduction can be applied by the seller to the buyers closing expenses. Missouri Missouri law, according to the Missouri Real Estate Commission, prohibits consumer rebates. The law prohibits unlicensed individuals from receiving part of the real estate commission and, since consumers are not licensed brokers, they cannot receive a rebate in Missouri.

Oklahoma Oklahoma law prohibits real estate brokers from paying part of their commission to unlicensed individuals. Because consumers do not have real estate licenses, Oklahoma law prevents them from receiving rebates. Oklahoma consumers are unable to benefit from rebates that customers in other states may receive.

Oregon Oregon law prohibits real estate brokers from paying part of their commission to unlicensed persons. As a result, because consumers do not have real estate licenses, Oregon law prevents them from receiving rebates. Oregon consumers are unable to benefit from rebates that consumers in other states may receive.

Tennessee In 2007, Tennessee passed a law that would prohibit payment of cash rebates to buyers and sellers of real estate. It is legal to offer a commission reduction to sellers, and for buyers, the commission reduction can be applied by the seller to the buyers closing expenses.

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REBATE DISCLOSURE

(Please print customer’s name(s))

This disclosure serves as notification to the parties involved in this transaction, including but not limited to the buyer, seller, listing and selling real estate brokers, that the buyer and/or seller may be participating in a program under which the buyer and/or seller may receive cash or other incentives from the referring broker. Rebate must be shown on the Closing Disclosure Form.

AGENT INSTRUCTIONS

At the presentation of an offer, complete Disclosure and provide a copy to all parties to the transaction. Signatures are not required. If you are working with a buyer, Agent must also fax Disclosure to the lending institution chosen by the customer.

*If you are working with a buyer, Agent must also fax disclosure to the lending institution chosen by the customer. If required by State Law, Agent must ensure the following verbiage is included on the Closing Disclosure or Settlement Statement: “Cash bonus to buyer/seller paid outside of closing in the amount of $________.”

The buyer/seller rebate is calculated as follows: Purchase price x transaction side commission percentage = total commission. Total commission x 20% = rebate. Use the worksheet below to determine your buyer’s or seller’s rebate Purchase price $ x Transaction Side Commission% % = Total Commission . Total Commission x 20% (rebate) LENDER INSTRUCTIONS: If lender requires additional information, please contact the borrower directly.

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As an approved U.S. Military on the Move® agent, I to pledge to: Identify, understand and fulfill the Military Consumer's stated needs.

• Understand the PCS process. • Help the Military Consumer compare on-base housing options with purchasing/renting off-

base. • Only accept referrals when I am well-qualified in the stated area of interest. • Provide rental assistance if necessary. • Be knowledgeable and trustworthy and take the time to show multiple areas. • Provide resources to evaluate communities, schools, employment, commute times, medical

providers, etc. • Be organized and efficient, to ensure the best use of their time. • Look out for the Military Consumer's best interests and ensure they are receiving all benefits to

which they are entitled. • Provide "above and beyond" service. • Make every effort to develop opportunities to refer military buyers and sellers to fellow

LeadingRE firms through this program.

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How do I Verify Eligibility?

Active Duty: CAC- the Common Access Card This is given out to Active Duty and Reserve members. There is an expiration date at the top of the right on the front of the card. Example:

Veterans/Retirees: Uniformed Services ID card Retirees and armed services members who have not yet been issued a new CAC will have this card. The expiration date will be at the bottom right of the front of this card. For retirees, you will need to verify years of service – the national program is intended for 20 years’ service retirees only, though you can of course expand that on the local level if desired. To verify years of service you can ask for their DD214 or other release papers. You can see more about military records here: https://www.thoughtco.com/form-dd-214-report-of-separation-3321795

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Wounded Warrior status Active duty is clear, and we all know what veteran status means. The paperwork to verify each of these is familiar to those of us who work with military families on a regular basis. But we sometimes get questions about what exactly a Wounded Warrior is, and how someone becomes eligible. Here's a quick overview. The Army Wounded Warrior Program (AW2) is the official U.S. Army program that assists and advocates for severely wounded, ill and injured Soldiers, Veterans, and their Families, wherever they are located, regardless of military status. AW2 supports these Soldiers and their Families throughout their recovery and transition, even into Veteran status. In order to be considered eligible for entry into AW2, Soldiers must suffer from wounds, illness, or injuries incurred in the line of duty after September 10, 2001 AND:

• Receive or expect to receive at least a 30% rating from the Integrated Disability Evaluation • System (IDES) for one of the conditions listed below: • Post-traumatic stress disorder (PTSD). • Severe traumatic brain injury (TBI). • Severe loss of vision/blindness. • Severe hearing loss/deafness. • Fatal / incurable disease with limited life expectancy. • Loss of limb. • Spinal cord injury. • Permanent disfigurement. • Severe burns. • Severe paralysis. • Receive a 30% rating or greater for one Veterans Affairs Scheduled Rating Decision (VASRD) as

rated by the Physical Evaluation Board (PEB) in any other Special Category (SPECAT)/ Enabling Care (EC) or combat/combat-related condition; OR

• Receive a combined 50% IDES rating for any other combat/combat-related condition. At this time there are no exceptions to AW2 entry criteria; however, the Army is currently evaluating the appeals process. Always check with your broker for what verification is legally needed, as they may have decided to limit or expand this national program.