Arcadia REALTOR Magazine - June 2014 by Arcadia Association of REALTORS®

Arcadia

REALTOR速

The Official Publication of the Arcadia Association of REALTORS速

PROUDLY SERVING THE REALTORS速 OF ARCADIA, BRADBURY, DUARTE, MONROVIA AND SIERRA MADRE

Did You Get to

Ask an Attorney?

See page 11

The Shred with Street Cred See page 8

JUNE 2014

WWW.THEAAR.COM

VOL. 18, NO. 6

Arcadia

REALTOR®

REGULAR FEATURES 4 Events Calendar

4 From the CEO’s Desk Andrew Cooper, Chief Executive Officer

5 Attorney Comments Dave Freeman, AAR Legal Counsel

6 Market Matters

9 Affiliate Corner

“Where are All the Buyers?” Leslie Villavicencio, Great American Financial

Arcadia Association of REALTORS® 601 South First Avenue Arcadia, California 91006 626.446.2115 626.446.4072 FAX www.TheAAR.com

2014 ASSOCIATION OFFICERS

Mike Vachani {President} Joe Pacilio {President-Elect} Roy Blume {Vice-President} Sylvia Ramos {Secretary/Treasurer}

2014 ASSOCIATION DIRECTORS

Micah Adams Ryan Asao Andy Bencosme Kelvin Chang Margaret Garemore John Lee Mark Ramos Dave Scarminach Irene Yamagata -Bermudez

2014 C.A.R. DIRECTORS

Ryan Asao Andy Bencosme Margaret Garemore Joe Pacilio Randall Traw Mike Vachani Kelvin Wong

10 Through the Lens

A Look at What’s Happening Around the AAR

ARCADIA ASSOCIATION STAFF Robin Allen Ext. 307 Director of Finance / Office Manager Robin@TheAAR.com Michael Beltran Ext. 302 IT Director / Webmaster Michael@TheAAR.com

06.14

{ Arcadia REALTOR® | June | Two Thousand and Fourteen | Volume Eighteen | Number Six}

June 2014

Brenda Faltes Ext. 304 Director of MLS Data Integrity, Supra & Social Media Brenda@TheAAR.com Jamie Hu Ext. 309 Administration Jamie.Hu@TheAAR.com Stephanie Maertens Ext. 303 Director of Education, Publications & MLS Caravan Stephanie@TheAAR.com Maria Roberts Ext. 305 Director of Membership & Professional Standards Maria@TheAAR.com Jane Shriver Ext. 301 Director of Association Services Jane@TheAAR.com Andrew Cooper Ext. 308 Chief Executive Officer Andrew@TheAAR.com

ON THE COVER 11

Ask an Attorney A recap of the attorney panel held at the Courtyard Marriott in Monrovia.

ADDITIONAL CONTENT 3

AAR New Members The AAR welcomes its newest REALTOR® Members.

AAR Recieves Recognition AAR received recognition from the City of Monrovia City Council for sponsoring the Monrovia Community Easter Egg Hunt & Healthy Kids Day on April 19, 2014.

Tech / YPN Charity Poker Night A photo recap of the recent Tech / YPN Charity Event.

Paper Shreading Day A photo recap of the recent AAR Papershred Day.

AAR New Members

AAR Events 4 Charity presents:

Smokin’ Jack II

Charity Cigar & Whiskey Tasting Night

Thursday, July 24, 2014 5:30 p.m. - 9:30 p.m. Matt Denny’s Ale House Restaurant 145 Huntington Dr, Arcadia, CA 91006 A separate & outdoor cigar smoking area will be available. Both cigar smokers & non-smokers can enjoy the event!

$40

Everyone is Welcome Includes:

• All-you-can-eat appetizers • 3 Whiskey “Tastings” •1 Drink ticket for any drink of your choice

Tickets available at the AAR Building or Online 100% of the event profits will go to Charity

www.TheAAR.com ~ 601 S. First Ave. Arcadia, CA 91006 ~ 626-446-2115

The Arcadia Association of REALTORS® would like to formally welcome our newest REALTOR® members!

AAR new members with Membership Committee Vice-Chairman, Cindy Shiao; Committee Chairman, Alma Aguilar and 2014 President, Mike Vachani are (in no particular order): Vivek Anand, Coldwell Banker Dynasty, T.C.; Augustine Avila, Coldwell Banker, Arcadia; Honghua L. Borja, IRN Realty; Amy Buckner, Podley Properties; Danielle Chen, IRN Realty; Jianmiao Chen, Highland Real Estate; Annie Chou, Re/Max Omega; Yanping Ding, Re/Max Omega; Tina C. Fan, Long Dragon Realty Group, Inc.; Leah L. Fulton, Dilbeck Real Estate; Carmen O. Garcia, Coldwell Banker Dynasty, T.C.; Xiuyun Guan, Highland Real Estate; Diana C. Hua, Century 21 West Coast Brokers; Shiao B. Huang, TNG Real Estate Consultants; Michelle Y. Hung, Coldwell Banker Dynasty, T.C.; Bonnie A. Joung, Keller Williams West Foothills; Timothy S. Komlos, Coldwell Banker, Arcadia; Ping Kuo, Highland Real Estate; Minh V. Lac, Podley Properties; Peixin Li, IRN Realty; Xiaoyan Li, TNG Real Estate Consultants; Kim Lim, Century 21 Ludecke Inc.; Wenbo Lu, Coldwell Banker George; Clemen Mendoza, Maryam Mosallaie, Coldwell Banker George; VasTree Real Estate; Catherine Ngan, Poly Grand LLC; Richard Ni, Re/Max Advanced Realty; Mary Jane Rodriguez, Re/Max 6000 Realty; Dongqing Wang, Long Dragon Realty Group, Inc.; Sherry Y. Wang, Keller Williams Realty; Yingying Wang, Coldwell Banker George; Guo Y. Wong, Coldwell Banker Dynasty, Arcadia; Chunmei Yang, C.B. Investment & Funding; Simon Yang, Coldwell Banker Dynasty, T.C.; Yu Yang, Highland Real Estate; Xiaoping Yu, Highland Real Estate; Yi Z. Zhang, Treeline Realty & Investment; Yue Zhang, Paradise R.E. Investment and Xing M. Zheng, Highland Real Estate. Arcadia REALTOR® Magazine

June Events M 2

9:00 a.m. - 10:30 p.m. - “Advanced Technologies”

T 3

10:00 a.m. - 12:00 p.m. - zipForm Plus Training 11:00 a.m. - Global Real Estate Committee Mtg.

W 4

8:00 a.m. - Special Membership Meeting 8:30 a.m. - MLS Caravan 10:30 a.m. - Events 4 Charity Auxiliary Mtg.

Th 5

9:30 a.m. - Commercial / Investment Committee Mtg. 11:00 a.m. - Commercial Education & Networking Session

F 6

12:00 p.m. - 1:30 p.m. - AAR Speech Masters

M 9

10:00 a.m. - 2:00 p.m. - CRMLS Training

T 10

9:00 a.m. - 11:00 p.m. - “Maximizing Your Deductions” 11:00 a.m. - Tech / YPN Committee Mtg.

W 11

8:30 a.m. - MLS Caravan 8:45 a.m. - Affiliate Committee Mtg. 9:30 a.m. - MLS Committee Mtg.

T 12

10:00 a.m. - 12:00 p.m. - “Listing Hub” Training 1:00 p.m. - 2:00 p.m. - Cloud CMA

F 13 1:00 p.m. - 3:00 p.m. - “Dealing with Unpermitted Construction” T 17

2:00 p.m. - Education Committee Mtg.

W 18

8:30 a.m. - MLS Caravan 9:30 a.m. - Equal / Housing Opportunity & Public Relations Committee Mtg. 1:30 p.m. - Local Governmental Relations Committee Mtg.

Th 19

11:00 a.m. - 12:00 p.m. - Lunch & Learn Series Class 2:00 p.m. - 4:00 p.m. - “Earthquake 7.0”

F 20

12:00 p.m. - 1:30 p.m. - AAR Speech Masters

T 24 W 25

9:00 a.m. - 11:00 a.m. - “How to Invest in Real Estate with IRA Funds” 1:30 p.m. - Budget and Finance Committee Mtg.

F 27

8:30 a.m. - Board of Directors Mtg. 6:00 p.m. - 9:00 p.m. - E4C Red, White & Bingo

8:30 a.m. - MLS Caravan

FROM THE CEO’S DESK Sandbox Rules 101 I was watching my 3 year old son play in his sandbox the other day. When my wife or I went over to play with him he welcomed us in with a big smile and a toy to play with. By contrast I remember a time when a neighbor’s child was playing with our son and that child wasn’t being particularly nice that day. As a result, my son’s body language indicated he was very reluctant to let him in the sandbox to play. This little story correlates with how so many wildly successful people conduct their business practices. If they cannot trust the people with whom they are doing business or if they are negative and pessimistic, they simply won’t spend even a minute with them. So who do you allow into your sandbox? Are you surrounding yourself with people of integrity, character and high ethical standards? Are you associating with highly infectious, positive people? As REALTORS® we’re obligated to follow the REALTOR® Code of Ethics in our business dealings, but what if we do the same with the people in our personal lives as well? Some people may argue that in business you have to deal with people that you don›t enjoy being around or who are negative because of the personal contacts they may have. I disagree. We have a choice with whom we associate and there are hundreds of thousands of examples of people who become successful on their own terms. After taking a long, hard look at who is presently in your sandbox, ask yourself these questions: Are they the kind of people you really want to be associated with? Who would you most like to be in your sandbox and who would you most like to be out of it? Lastly, what (or who) is keeping you from making those changes? There are so many really good, honest, positive and supportive people that I would rather choose to associate with and who are likewise happy to associate with me. It’s a mutual admiration society which can work miracles in your personal life if you so allow it. I’m a firm believer in the more you intentionally choose who you spend your time with, the more enjoyable your life will become. Legendary sportscaster Charlie Jones summarized it best, “In five years you will be the same person you are today with the exception of the books you read and the people you hang out with.” I hope the next sandcastle you build in your sandbox is the biggest and best one ever.

Andrew Cooper Chief Executive Officer

June 2014

Attorney Comments June 2014

By Dave Freeman, Association Counsel TRANSFER DISCLOSURE STATEMENT: The new document at Paragraph 16 contains a great deal of confusing language and terminology. There are several references to Section 900, 903, 910, and 914, with no explanation of what these sections mean, nor what they are sections of. As crazy as this sounds, the reason CAR included this language, is because our beloved legislators passed a law that requires it be quoted exactly this way. To clarify the language: The sections refer to the California Civil Code, which can be found online (and will bore you to sleep). Basically, this paragraph in the TDS states that the Seller must disclose any construction defect suit or similar action regarding deficiencies in the property, by or against the Seller, or by or against the Home Owners Association. DUAL AGENCY: Once again

the courts have expressed their displeasure with dual agency. It does remain legal and proper. Just donâ&#x20AC;&#x2122;t have a client complain or file suit claiming improper representation. In the Horiike case, regarding a 15,000 square-foot property in Malibu that sold for $12 million, the Buyer, who spoke no English but hired an agent who spoke Japanese and got the plans and permits regarding the property, sued the LISTING AGENT and broker for discrepancies in the property. Though the jury found for the Broker Defendant, the appellate court reversed, saying there could be breach of the fiduciary duty to the Buyer, as the listing agent and the selling agent were in the same office. Similar cases have gone the other way, but it is extremely expensive to have to contest this issue. Best solution (though not always practical) is to be sure that

listing and selling agents are from different brokerages. (In this case, the Buyer did not sue the selling agent.) NON-REFUNDABLE DEPOSITS: Often, the seller insists on a release of, or a non-refundable deposit. The Liquidated Damages clause is another provision mandated by the Legislature and has the full force of law. To vary from it, or to make a deposit non-refundable, requires some separate consideration. That is, if the Seller wishes to retain the deposit if the Buyer fails to complete the transaction, the Buyer must receive something in return. Language should be included, for instance that the Seller would suffer unusual damages as a result of the failure to close, and that the deposit is a fair compensation for those spelled-out damages. Give the court a reason to feel that this was a bargained for trade.

AAR received recognition from the City of Monrovia City Council for sponsoring the Monrovia Community Easter Egg Hunt & Healthy Kids Day on April 19, 2014.

(L to R): Councilmember Larry Spicer, AAR 2014 President Mike Vachani, Councilmember & AAR Broker Tom Adams, AAR CEO Andrew Cooper, Mayor Maryann Lutz, Mayor Pro Tem Becky Shevlin and Councilmember Alex Blackburn

Arcadia REALTORÂŽ Magazine

Market

Matters

Market Statistics for the San Gabriel Valley Single Family Homes

City

Zip Code

April 2014

Condominiums

SFR Only

Price Median Price & Median Condo Chg from Home Price/ ($1,000) April 2013 Sq. Ft.

Sales of Price % Sales Single Family Price Median Chg from Count Homes SFR ($1,000) April 2013 Condos

Alhambra

91801

$581

38.3%

$468

26.8%

$425

Alhambra

91803

$480

-2.1%

Altadena

91001

$550

-3.9%

$374

6.8%

$418

$900

167.7%

$364

Arcadia

91006

$1,525

60.5%

$715

32.3%

$557

Arcadia

91007

$1,150

9.4%

$498

6.0%

$634

Azusa

91702

$337

5.1%

$278

23.6%

$267

Duarte

91010

$369

23.0%

$310

-1.0%

$338

El Monte

91731

$380

9.5%

$319

60.3%

$288

El Monte

91732

$390

11.1%

$340

5.4%

$334

El Monte - South

91733

$311

13.1%

n/a

$353

Glendora

91740

$415

15.0%

$379

49.3%

$310

Glendora

91741

$535

19.6%

$350

4.5%

$331

La Ca単ada Flintridge

91011

$1,230

6.8%

$823

11.2%

$612

La Verne

91750

$660

51.7%

$431

72.2%

$314

Monrovia

91016

$565

27.8%

$453

30.2%

$405

Pasadena

91101

n/a

$385

-14.4%

n/a

Pasadena

91103

$773

95.6%

$430

-10.4%

$577

Pasadena

91104

$554

-3.2%

$260

n/a

$409

Pasadena

91105

$1,335

23.0%

$678

1.2%

$603

Pasadena

91106

$807

-44.9%

$425

-4.1%

$548

Pasadena

91107

$825

14.7%

$512

-4.8%

$483

Rosemead

91770

$460

-0.5%

$376

14.7%

$341

San Gabriel

91775

$700

14.5%

$470

n/a

$434

San Gabriel

91776

$533

9.1%

$540

45.9%

$375

San Marino

91108

$2,159

14.7%

n/a

$855

Sierra Mdre

91024

$827

-17.2%

$535

-17.5%

$419

Temple City

91780

$628

-0.9%

$429

-23.3%

$488

Source: DQNews.com

June 2014

Arcadia REALTOR速 Magazine

Tech / YPN Charity Poker Tournament Over $1,900 Raised for Local Charities! Sponsored by:

AAR PAPER SHREDDING DAY Monday, May 19, 2014

Sponsored by:

June 2014

Affiliate Corner

“Where are All the Buyers?” By Leslie Villavicencio, Great American Financial

In April 2014, the LA Times reported that a national research study found that consumers overwhelmingly believe they cannot qualify for a home loan in today’s market. The study cited that many people feel intimated by the “fear of the homeloan unknown.” The study also reported that: • 56% of potential home purchasers say they’re out of the market because they don’t want to face the possibility of rejection by lenders. • 74% of potential buyers who would need a mortgage concede that they have not scoped out the current market or taken the steps needed to qualify. • Many potential buyers believe that they need near-perfect credit scores to get a home loan. • Debt to income ratio (seemed) another insurmountable obstacle in many potential buyers’ eyes - enough so that they don’t even try to obtain a mortgage. The truth is that the current lending environment offers significant choices, flexibility and loosening of underwriting standards which can actually benefit consumers. REALTORS® can do their clients a huge service by explaining that getting a home loan is highly likely in today’s mortgage market. The key is to work with a mortgage expert that gets to know the client and carefully understands their situation and qualifications. Getting a home loan is a highly PERSONALIZED process and depends on the client’s specific income, credit, assets, reserves and debt, etc. A client’s fears can be eased by a mortgage expert who works to put together the pieces of the puzzle in order to provide him/her with customized home loan options. This

requires collecting accurate supporting documentation and maintaining open communication. If in case a client does not immediately qualify for financing, a mortgage expert is the crucial partner that helps outline the necessary steps needed to be able to qualify for financing in the near future. Today’s lending market is evolving and continues to provide offerings to meet consumer needs. Some of these include: • Financing for those with lower credit scores • Limited down payment requirements (as little as 0.5%) - Lender Paid mortgage insurance (wrap the cost of mortgage insurance into the interest rate to be tax deductible) - Piggyback loans - 1st and 2nd loans secured concurrently to avoid mortgage insurance all together • Down Payment Assistance programs • Government Financing (FHA, VA, USDA) • Conventional and High Balance • Jumbo Loans; greater than $625,500 in LA County • Alternative documentation for wage-earners with high 2106 expenses and self-employed borrowers • Foreign National Financing • Energy Efficiency Home Loans • And last, this financing can be found in either fixed rates, adjustable rates, or interest only rates REALTORS® have an opportunity to inform, educate and empower their clients about the home loan process in order to facilitate their next purchase and provide them with a satisfying experience, while insuring their own success and productivity. Leslie Villavicencio and Wendy Silva are Loan Officers from the Silva-Villa Team at Great American Financial - A Mortgage Broker. Find out more at www.silva-villa.com or contact us at Wendy (818) 522-6644 or Leslie (626) 9754010.

Arcadia REALTOR® Magazine

through the lens

A Look at What’s Happening Around the AAR

Diamond | 4 1 0 2 , 8 y a M | t n bal Eve

Discover Glo

Bar, CA

AAR Speech Masters Taste of Duarte | May 21, 2014 | Duarte, CA

gents”

state A E l a e R r o f ating

“Incorpor June 2014

“ASK AN ATTORNEY” Saturday, May 17, 2014 | Courtyard Marriott, Monrovia

The AAR held its first Annual “Ask an Attorney” event on Saturday, May 17, 2014. A packed-house got to listen to four attorneys speak on their legal specialty and then had the opportunity to ask questions. This event was brought to you by the Education Committee of the AAR. The attorneys include: David D. Fu, Scott B. Mahler, Greg C. Pyfrom and Romy S. Rahmanian. Special thanks to event chair April Kass of La Rocca Inspections and Education Committee Chair Julie Bencosme of Dilbeck Real Estate for coordinating such a worthwhile event and our Master of Ceremonies, Andy Bencosme, Century 21 Village. Additional thanks go to our generous sponsors: Stephanie LaPorte, Old Republic Home Protection; April Kass, La Rocca Inspections and Jason Landes, RPM Mortgage.

(L to R): Education Committee Chair Julie Bencosme, Scott B. Mahler, Attorney; Cecil Griffin; April Kass, La Rocca Inspections; Greg C. Pyfrom, Attorney; Jason Landes, RPM Mortgage; David D. Fu, Attorney; Stephanie LaPorte, Old Republic Home Protection; Romy S. Rahmanian, Attorney and Andy Bencosme.