Karla Van Eman – American Way Realty

September 1, 2008August 28, 2008 Carlienne Frisch

Mankato real estate brokerage successfully navigates market ups and downs of selling homes.

In her 32 years of selling real estate, Karla Van Eman seems to have done a remarkable job bonding and connecting with her clients—in an industry in which the agent-client connection is viewed as the ultimate barometer of success.

“The real estate business is not just about selling properties, it’s about building relationships,“ said Van Eman (pronounced eh-man), the founder and sole owner of American Way Realty in Mankato. “I have more than 2,000 past clients that I keep in touch with. My best networking is happy, satisfied customers who give referrals. Twice a year, I send postcards to all local clients I’ve worked with to remind them to change their clocks, and then I send a Christmas card with a magnet. Someone calls me and says ‘Karla, we’re selling,’ and I say, ‘But you’ve been there only a couple of years.’ Then they tell me, ‘It’s been seven years. We have seven magnets on our refrigerator.’”

Without missing a beat, she added, “That’s why I don’t like stainless steel refrigerators; magnets don’t stick to them.”

Real estate can be a challenging business because commission is the only income. Van Eman recommends that new agents have six months of income saved—as she did—so financial concerns don’t distract them from doing what’s best for the buyer or seller.

“You want agents looking for what’s best for the clients, not selling a property just to get the commission,” Van Eman explained. “It’s all about giving good, honest service. What you do comes back to you. Between 75 and 90 percent of my business is either repeat or referrals. Several clients have done four transactions with me, and I bet if I looked in my files, I could even find a few who’ve done a half dozen.”

Van Eman has always leaned toward working independently. She considered becoming a cosmetologist, but her father talked her out of it because of concern about exposure to chemicals. She then decided to learn interior decorating, but didn’t enroll in classes because there was a waiting list for that program at the vocational-technical school in Mankato, now South Central College. Instead, she enrolled in the school’s sales and marketing program and soon transferred to what became Minnesota State University, to pursue an elementary education degree.

Two years later, Van Eman took a brief detour by way of a Pacific island. In 1970, she married Arlee Schweim, a Marine she met at MSU. They spent two years in Okinawa, where she ran a catering service on a military base.

“People who know me think that’s hilarious because I can’t boil water,” Van Eman said, “but I just put together the parties. I did the organizing and menu planning, but absolutely none of the cooking.”

When the couple returned to Mankato, Van Eman returned to MSU to complete the elementary education program while working full-time at Lorraine Shop selling wedding gowns. She graduated cum laude in December 1973, taught six months in a parochial school, and in September headed to a classroom in Good Thunder.

“First I taught third grade, then fourth, so I had the same students for two years,” Van Eman said. “Several of them have bought homes from me.”

Van Eman saw class sizes drop during those two years and was unsure whether she would have a classroom when school resumed in the fall. With no teaching job in sight as autumn approached, she seized an opportunity when a friend mentioned that Archie Waugh, who owned a Century 21 Realty franchise, was looking for agents. Despite real estate sales offering far less security than teaching, Van Eman decided to give them a try.

“All you had to do then was read a book and take a test,” Van Eman recalled. “I stopped in to see Archie. He gave me the book and told me he would accept me as an agent after I took the test. He started to leave, on his way to a showing, and turned back to me and asked, ‘By the way, what’s your name?’ It didn’t matter. He was the best mentor, and I’m still friends with him.”

Van Eman made quick work of the opportunity and obtained her real estate license in October 1976. She then turned down three offers to teach, including one in Mankato, explaining, “I just wanted to try real estate.”

Van Eman has no difficulty recalling the details of her first sale.

“It was a fall evening when the office phone rang and a gentleman said he was moving from Colorado and wanted to purchase a home in the next couple of days,” she said. “He asked if I could help him. Naturally I said, ‘Sure, I’d love to,’ but this caller sounded too good to be true. I suspected that my brother, who was moving to Colorado, was playing a prank on me. So, I called him, but he insisted it was not a joke. Two days later, with butterflies in my tummy, I sold my first house, for $60,000. I’ve sold that same home three times, and last summer it sold for nearly $200,000.”

She stayed in the Century 21 system 25 years, about half with the Waugh Agency. After Waugh retired and sold the business, Karla joined Century 21 Atwood Realty. During that time, she and Schweim divorced. (“We’re still friends,” she said.) She later met and married another real estate agent, Russ Van Eman, with whom she had two children, Mike, 25, and Angie, 23.

“With both Russ and me in real estate, it was challenging when the children were young during the recession of the early 1980s,” Van Eman said. “He later became a developer, which was a nice blend, but there was no real financial advantage.” In 1998, the couple’s nearly 20-year marriage ended in divorce.

“Russ has since passed away,” Van Eman said. “That was a very challenging time, with two teenagers and the grieving. Russ and I were on pretty good terms. I feel more widowed than divorced.”

Van Eman introduced her children to real estate sales at an impressionable age. “When Mike and Angie were little, they often came along when I was showing a house,” she said. “Mike would hold the door open and Angie turned on the lights. I wrote my kids’ school activities into my appointment book. When a showing ran overtime, I picked up my child with the client in the car and said, ‘Scoot over.’”

Seven years ago, Van Eman chose to add more responsibility to her schedule by leaving Atwood and opening and managing USA 4% Realty for husband-and-wife owners who lived in northern Minnesota. She declined to discuss the reasons for leaving Atwood, saying only, “You have to make a change to grow.” One aspect she’s willing to point out is that throughout the real estate market, sellers were paying up to 7 percent commission on their home’s sale, which she thought was unfairly excessive. USA’s 4 percent commission provided a huge listing incentive to sellers, offering full service at a more reasonable cost.

“It was time to do something different,” Van Eman said. “The kids were old enough to drive, so there were no more car pools, and I had an opportunity to offer sellers more profit from the sale of their property.” Van Eman leased the office space, hired a licensed real estate agent as an office manager and then hired four more agents.

“The owners, both in their 70s, wanted to get it up and rolling, and I promised them one year,” Van Eman said. “But they wanted more. They wanted me to recruit agents and set up offices statewide. I didn’t want to travel around out of the Mankato area, so it was a mutual decision that someone else would do that. We’re still friends. The man helped me get signage and make other arrangements for my new business, American Way Realty, which I opened in 2002 at 510 Long Street.”

“We’re totally independent, privately owned, no franchise and no partners,” Van Eman said. “I chose the name to be complimentary to USA 4% and because it’s at the top of the alphabet and appears first in an alphabetical listing. I have nine licensed agents,” she added, pausing to smile, “ two of whom are my children. Mike has branched out and is doing some rehab work on rundown properties. He also meets with appraisers, inspectors, etc. Angie helped me out this summer, before moving to New York, by showing and selling houses and working on our advertising. I also have two full-time employees, an office manager and a client services coordinator who works on setting up showings and relaying comments to our sellers.”

Thirty-two years ago, Van Eman’s initial goal was to make at least as much money selling real estate as she would have made teaching, a goal she achieved her first year in business. Over time, her goal became one to help people make smart decisions about the biggest investment most of them will ever make—their home.

“Whether you’re buying or selling, ask friends for recommendations of real estate agents,” Van Eman advised. “Find one with whom you click. You want to feel you’re on the same page.”

Van Eman’s business continues to do well in the present recession. Home sales in the greater Mankato area the first six months of 2008 numbered 343, compared to 435 in the first half of 2005, which she described as “a really hot year.” Of those 343 sellers, American Way Realty represented 17 percent.

“We are definitely more stable here (in Mankato) than in other parts of the country,” Van Eman said, “but we have seen prices soften, with a downward trend of about 5 percent on home prices compared to last year. Also, time from listing date to closing date has increased from 90 days to 160.

“At four percent, we’re kicking butt,” Van Eman said. “If you were the seller with a $200,000 property, would you rather pay $8,000 commission or $14,000?”

Van Eman often has been ahead of the pack. When with Waugh, she was one of the first local real estate agents to promote her own listings in the newspaper, in addition to the advertising the agency purchased.

“I bought ads and put in my photo as well as the property photo,” Van Eman said. “I did self-promotion along with property promotion. I still do those basics, but I do a lot of Internet promotion now. It’s part of the office manager’s job to get our listings on websites, which are advertised to buyers. I bought the domain name mankatorealestate.com.” When a potential buyer searches under that term, he or she automatically is rerouted to American Way Realty’s website.

“The first buyers from the website were two professors moving here from out of state,” Van Eman said. “Their teenage son found the website for them. People use the Internet a lot, looking for homes, or if they’re selling, they expect their homes to be promoted on the Internet. People know how to get information about the neighborhood on the Internet. They do much more of their own research for which they used to depend on the real estate agent.”

Van Eman is active in the Realtors Association of Southern Minnesota, serving on the board of directors, including two terms as president (the first female president), and chairing many committees. She’s also a member of Greater Mankato Growth, a financial supporter—and playgoer—of Merely Players and has served on the YWCA Board of Directors. She hasn’t taken on committee responsibilities with the Chamber because, she said, “I don’t have enough time to be active. If I’m going to be on a committee, I really want to be involved, not just have my name on a list. A past client ‘recruited’ me for the YWCA Board of Directors. I have always supported women’s rights, and I truly had an interest in the preservation of the Cray Mansion.”

The YWCA asked Van Eman to list the mansion, which she termed “a challenging project.” After nearly two years, she found a buyer who purchased the mansion for more than a half million dollars. Van Eman donated 10 percent of her commission to the YWCA.

Van Eman reflected on her hours worked, saying, “In real estate, there is no such thing as a typical day. I’m in the office at 8:30 a.m., talking with or meeting with buyers or sellers. I do paperwork, list houses, show houses and always try to return phone calls the same day. I try not to have appointments after 7:00 p.m. and try to be home by 9:00. I return calls until 10:00 p.m., and then do paperwork at home until midnight or 1:00 a.m. Even with computers, there’s still a lot of paperwork with real estate.

“Believe it or not, I try not to go to the office on a weekend unless I have out-of-town buyers who cannot meet with me during the week,” Van Eman added. “On Saturday mornings, I also do financial work, including deposits, payroll, commission checks, etc. There just aren’t many men who would tolerate my hours and my dedication to my job, but I have great friends, several of whom are guys. My friends are very understanding when I’m running late because of wrapping up a deal. They’ve probably all bought and sold a home or two with me over the years. If I counted up the hours I work, I’d amaze myself, so I don’t count. In real estate, you just have to go when people need you.”

Defining Terms

Real estate agent: a person licensed to buy and sell real estate. A real estate agent must take national and state tests for licensing.

Realtor: a real estate agent who has agreed to abide by the code of ethics of the National Association of Realtors. (Van Eman joined the NAR in 1976, as soon as she was licensed.)

Real estate broker: a real estate agent who has worked at least two years under a broker and has passed state and national licensing exams to own or operate a real estate company. A broker’s additional responsibilities include being responsible for agents’ actions and paying for marketing and office expenses. Some brokers charge real estate agents for office space and services; others provide the space and services but receive part of each agent’s commission. (Van Eman has been a broker since 2001.)

The “Real” Van Eman

Childhood: Van Eman grew up on a St. James area farm, the middle of three children, in a family that also provided foster care. “With only three bedrooms and one bath I learned to be tolerant. And I think there’s nothing better than a farm work ethic. You learn to be part of a team.”

Education: “I loved school and would go even when I was sick. My favorite subject was math. I like numbers. They make sense. They’re organized.”

First jobs: “I helped my dad with the care and showing of horses. I was paid to walk beans on our family farm and for the neighbors. In high school, I was the ‘ticket girl’ at the St. James Theater.”

Career preparation: “I think growing up on a farm, working in education, and working in sales, was a perfect blend. The only other thing I could use is a counseling degree.”

Recreation: “I love to ride the bike trails of Southern Minnesota. I enjoy dancing, I love to travel and I collect Christmas houses.” Two years ago, Van Eman traveled in Europe for three weeks with her children.

Professional accomplishment: “Surviving all these years in a challenging business when hundreds of people have come and gone.”

Personal philosophy: “What goes around comes around. Also, there’s always something new to learn in business and life.”

Future plans: “I still love my career with a passion and have no immediate plans for retirement. I want to continue to grow our market share and to service our clients and customers. I would consider teaching real estate seminars in retirement, and then I want to read all of those novels I haven’t had time to read and do more traveling. But I’ll probably never retire.”