Arcadia REALTOR Magazine - May/June 2015

REALTOR®

OFFICIAL PUBLICATION OF THE ARCADIA ASSOCIATION OF REALTORS®

PROUDLY SERVING THE REALTORS® OF ARCADIA, BRADBURY, DUARTE, MONROVIA & SIERRA MADRE

Event Raises Over $2,000 for Local Charities!

YPN Charity Poker Tournament See page 11

1

ARCADIA REALTOR® · JANUARY/FEBRUARY 2015

MAY/JUNE 2015 · ARCADIA REALTOR®

REALTOR® 2015 ASSOCIATION OFFICERS Joseph Pacilio 2015 PRESIDENT Roy Blume PRESIDENT-ELECT Kelvin Chang VICE-PRESIDENT Sylvia Ramos SECRETARY/TREASURER BOARD OF DIRECTORS Ryan Asao Andy Bencosme Julie Bencosme Margaret Garemore Fred Madjar Mark Ramos David Scarminach Irene Truong Mike Vachani

C.A.R. DIRECTORS Ryan Asao Andy Bencosme Roy Blume Margaret Garemore Joseph Pacilio Sylvia Ramos Randall Traw Mike Vachani Kelvin Wong

ASSOCIATION STAFF

Robin Allen Ext. 307 Director of Finance / Office Manager Robin@TheAAR.com Michael Beltran Ext. 302 IT Director / Webmaster Michael@TheAAR.com Brenda Faltes Ext. 304 Director of Membership & Professional Standards Brenda@TheAAR.com Jamie Hu Ext. 309 Director of MLS Data Violations Jamie.Hu@TheAAR.com Stephanie Maertens Ext. 303 Director of Education & Commercial Real Estate Stephanie@TheAAR.com Jane Shriver Ext. 301 Director of Association Services Jane@TheAAR.com Laura Thai Ext. 304 Director of Broker Compliance & Member Outreach Laura@TheAAR.com

FROM THE CEO’S DESK Dependability Does Not Depend

Trade Associations measure dependability in many ways: there’s performance, member services, benefits offered, advocacy and staff customer service, to name a few. At the Arcadia Association of REALTORS® we study all of these metrics consistently. But to our valued members dependability means giving you want you want, when you need it, on time every time, at the right price and with a smile.

The Arcadia Association of REALTORS® serves over 2300 REALTOR® and Affiliate members and it’s our goal to provide a valuable, reliable and hopefully fun membership experience each and every time. We’ve won many awards and accolades over the years because of the productivity and dependability of our volunteer members and hard working staff. With these past achievements some may think it’s OK to rest and admire our accomplishments but I believe rest is over rated! For that reason we continuously make tweaks to our membership services that may not be performing where we’d like them to and then adjust accordingly. There’s an old saying, “If it isn’t broken, don’t fix it”. To me, these 7 short words convey complacency and laziness! My car isn’t broken but I always make adjustments and repairs here and there to ensure optimal performance and - here’s that word again - dependability. That’s what we do at the Arcadia Association of REALTORS®.

We emphasize dependability and customer service in every facet of our organization to ensure it’s our number 1 priority at all times. If you can’t depend on us, then we’re failing and to quote Gene Kranz, flight operations director of the Apollo, Gemini and Space Shuttle missions, “failure is not an option”.

We realize dependability is not a destination but rather a continuous process. To us, it means delivering on a commitment we made to you when you joined the Arcadia Association of REALTORS®. It’s an honor and an obligation to be able to do so.

Thanks for giving us the opportunity to be dependable to you.

Wishing you continued Success,

Andrew Cooper Chief Executive Officer

Andrew Cooper Ext. 308 Chief Executive Officer Andrew@TheAAR.com

ARCADIA ASSOCIATION OF REALTORS® 601 South First Avenue Arcadia, California 91006 626.446.2115 626.446.4072 FAX www.TheAAR.com 2

ARCADIA REALTOR® · MAY/JUNE 2015

Please join us for the AAR Annual Membership Breakfast on Wednesday, June 10th at 8:00 a.m. at the Arcadia Masonic Center

MAY/JUNE 2015 | VOLUME 19 | NUMBER 3

Contents 7

Regular Features 2

From the CEO’s Desk

4

Market Matters

5

Attorney Comments

6

Through the Lens

9

Affiliate Corner

Andrew Cooper, Chief Executive Officer

Market Statistics for the San Gabriel Valley

Dave Freeman, AAR Legal Counsel

A Look at What’s Happening Around the AAR

“The New Closing Disclosure Form is Coming” Maureen McCune, Home Capital Group

11

13

On the Cover 11 Annual YPN Charity Poker Tournament A photo recap of the recent AAR “All-In” for Young Professionals Network Charity Poker Tournament held at DoubleTree Hotel

Additional Content 7 Drones: Soon, But Not Yet Although it may only be a matter of time before we start seeing drones flying over every listing, now is not the time.

10 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 Saturday, April 4, 2015.

12 AAR New REALTOR® Members The AAR welcomes its newest REALTOR® Members of 2015.

13 It’s Becoming Easier to Get a Mortgage Lenders are showing signs of loosening up when it comes to home buyers seeking a mortgage.

MAY/JUNE 2015 · ARCADIA REALTOR®

3

Market Matters Market Statistics for the San Gabriel Valley - March 2015

City

Arcadia Arcadia Duarte El Monte El Monte Glendora Glendora Monrovia San Gabriel San Gabriel San Marino Sierra Madre Temple City

Zip Code

91006 91007 91010 91731 91732 91740 91741 91016 91775 91776 91108 91024 91780

Single Family Homes

Condominiums

Price % Sales of Price Chg from Single Family Median SFR March Homes ($1,000) 2014

Price Median Condo ($1,000)

27 20 19 4 14 16 21 19 15 13 11 3 21

$1,088 $1,340 $525 $445 $420 $454 $619 $575 $750 $553 $2,280 $595 $648

-20.5% -7.6% 16.7% 37.8% 22.6% 13.5% 19.1% 1.2% -9.1% 4.4% -2.5% -38.5% 1.7%

Sales Count Condos

5 12 3 1 15 2 8 7 n/a 4 n/a 1 7

SFR Only

Price & Chg from Median March Home Price/ 2014 Sq. Ft.

$735 $533 $296 $281 $348 $418 $460 $397 n/a $431 n/a $685 $645

5.0% 3.9% 1.4% 56.1% 9.4% 27.5% -23.1% -9.8% n/a 2.5% n/a 55.7% 9.3%

$514 $628 $338 $345 $341 $324 $376 $461 $438 $474 $885 $592 $472

Market Statistics for the San Gabriel Valley - April 2015 Single Family Homes

City

Arcadia Arcadia Duarte El Monte El Monte Glendora Glendora Monrovia San Gabriel San Gabriel San Marino Sierra Madre Temple City 4

Zip Code

91006 91007 91010 91731 91732 91740 91741 91016 91775 91776 91108 91024 91780

Condominiums

Sales of Price Price % Sales Single Family Median SFR Chg from Count Homes ($1,000) April 2014 Condos

29 20 8 7 9 22 21 21 18 6 9 13 23

ARCADIA REALTOR庐 路 MAY/JUNE 2015

$1,199 $1,174 $433 $400 $408 $450 $675 $645 $745 $595 $2,600 $788 $717

-16.4% 2.1% 19.5% 5.3% 5.0% 11.7% 26.2% 6.6% 14.6% 12.8% 22.8% -4.7% 14.2%

3 6 4 1 10 6 4 11 n/a 6 n/a 1 7

SFR Only

Price Median Price & Median Condo Chg from Home Price/ ($1,000) April 2014 Sq. Ft.

$565 $540 $321 $375 $363 $322 $502 $429 n/a $427 n/a $368 $567

-20.9% 12.1% 3.6% 17.6% 7.4% -14.9% 43.3% -5.3% n/a -21.0% n/a -31.3% 32.2%

$606 $664 $316 $320 $322 $347 $330 $418 $469 $442 $861 $511 $493

Source: CoreLogic.com

Attorney Comments

By Dave Freeman, Association Counsel

Settlement Agreements

Although agents must avoid practicing law, it is useful to review any Settlement Agreements your clients may be entering into.

Important points that the drawer of the Agreement may not be aware of, or that your client may not realize are very important to have in writing, may be apparent to you, as a result of your experience in similar matters. Most of all, be sure you and your clients read the document before signing, and make appropriate suggestions for change or addition.

For instance, the attorney may not be aware that there may be a UCC1 lien on fixtures or appliances in the property, or that a lien or Lis Pendens may have been recorded against the property. The Agreement must state that a release of these documents, suitable for recording, is completed at the time of the signing of the Agreement.

As a practical matter, do not have the attorneys or clients record such releases; they probably will not appear in the county record timely for your close of escrow. Have the original documents submitted to escrow, for recording, much to the title company” delight.

Lis Pendens

As mentioned above, a Lis Pendens (LP) may complicate your transaction. But it may also be a valuable weapon in representing a Buyer against a recalcitrant Seller. In a time of increasing property values, Sellers frequently back out, claiming one of many reasons. You know the list. But the real reason is usually that another potential Buyer has offered more money. In this situation, agents request that I file a LP, to stop the Seller from selling to Buyer number two. One cannot just file a LP. The LP is actually a notice that a lawsuit has been filed for title to, or an interest in the property, usually a Specific Performance lawsuit for title to the property, or a suit to enforce an easement of some sort.

Once the suit has been filed, the attorney can record (in the County Recorder’s Office) an LP that alerts the world that your Buyer claims an interest in the property. This action normally prevents the Seller from selling to, or borrowing from anyone, until your legal action is complete.

Sale Pending Inspection

Even with “as is” sales, the

inspection is an important point to consider. Although you and your Seller may contemplate that the property is a tear-down, and the Buyer has no intent to use any of the

structures on the property (and the contract may even state this), problems must be anticipated for a smooth transaction:

The Buyer may be intending on tearing down and building, but not for a while. They may intend on renting the property until the time and financing is in place to build.

And therefore they may intend on a bank loan until they are ready to tear down and build. This bank loan will usually be based on the ability to live in the property or to rent it out for income to justify the loan. So, although you contracted to sell the property, “as is,” and expected a teardown, the escrow may be held up due to their bank’s unfavorable inspection report.

For these and other common reasons, an agent must constantly be on their toes, in order to anticipate problems and situations that may come up, that the inexperienced client may be totally naïve to. If you are not that sure that you can properly evaluate the transaction you are in, consult with your manager, or an experienced, knowledgeable REALTOR®.

MAY/JUNE 2015 · ARCADIA REALTOR®

5

through the lens

A Look at What’s Happening Around the AAR

ng

Instructor, Thad Ki

1st Quarter Broker/Manager Luncheon

“Short Sales & REOs”

“PEPster ” Legislative Breakfast w/ City o Manager of Arcadia, Dominic Lazzarett

king and Global Networ & al es” ci er m m Co the United Stat n “Investing in io ss Se on ati Educ

The Top 5 MLS Violations w/ Devon Hallis, CRMLS Commercial Committee w/ Ching K. Chiao, Esq., Chiao & Wu, LLP & Darren Fong, East West Bank

dnesday MLS Winners, who won the We ren Taylor, Ka & ng Drawing, David Cheu Barnes & s am Ad 21 Century 6

ARCADIA REALTOR® · MAY/JUNE 2015

“45 Hour Continuing Education” w/ Joel Carlson

Andrew Cooper, AAR CE O; Chip Ahlswede, AAR GAD; Nick Zigic, AAR Me mber; Congresswoman Judy Chu; Mike Vachani, Member & Joe Pacilio, 2015 AAR President

Drones: Soon, But Not Yet Although it may only be a matter of time before we start seeing drones flying over every listing, now is not the time.

Real estate professionals may be eager to get those amazing aerial shots, but please be informed: It is illegal to use drones for commercial purposes (unless you have a waiver from the Federal Aviation Administration).

One REALTOR®, Douglas Trudeau with Tierra Antigua Realty in Tucson, Ariz., did receive a Section 333 waiver from the FAA in January for the purpose of real estate marketing. However, it is important to note that the waiver was issued to Mr. Trudeau, and did not mean the FAA loosened its rules concerning the commercial use of drones. Trudeau spent months of time and thousands of dollars on his waiver process. Even after securing the waiver, Trudeau is required to hire a licensed aircraft pilot to fly his drone for him since he does not yet have his pilot’s license. A few aerial photography companies for real estate marketing and inspections of home exteriors, including Capital Aerial Video in Texas and FalconSkyCam in California, have also recently obtained waivers.

Drone rules on the way

Congress tasked the FAA in 2012 with integrating the commercial use of drones into national airspace. The FAA has made major steps to achieving this directive. In February, it issued its 7

notice of proposed rule-making on the operation and certification of drones, but these rules have not taken effect yet.

The proposed rule focuses on three main areas: operational limitations, operator certification and responsibilities, and aircraft requirements. At a high level, the proposed rule limits the unmanned aircraft to no more than 55 pounds, requires the unmanned aircraft to be registered and display markings in the largest practicable manner, and requires the operator to maintain the drone in safe condition for operation and inspect the drone before flight to ensure safe operation. The rules would further limit drone operation times to local official sunrise to sunset and to no more than 500 feet above ground level. The operator (or the visual observer where one is used) would be required to maintain constant visual contact with the drone without the assistance of any device. The operator of the drone also would be required to obtain an unmanned aircraft operator certificate with a drone rating.

As of today, unless a member’s drone use falls within the FAA’s guidelines for hobbyist or recreational use, or a Section 333 waiver has been obtained, any impermissible use of a drone could result in an enforcement action by the FAA, along with substantial

ARCADIA REALTOR® · JANUARY/FEBRUARY 2015

fines and penalties. In fact, the FAA brought an enforcement action against one drone enthusiast and leveled a fine for the careless or reckless operation of an unmanned aircraft (FAA v. Pirker). The FAA has specifically stated that commercial use includes for real estate marketing purposes.

Drone anticipation

Soon drones may enable real estate professionals to enhance their marketing practices, particularly as they relate to uniquely suited properties, such as large farms, properties with breathtaking views, and large commercial properties.

The FAA is seeking comment on all aspects of the proposed rule and NAR® will be filing a comment letter advocating for the adoption of a final rule that allows real estate professionals to use drone technology in an efficient manner, while taking into consideration the safety concerns the FAA is balancing in drafting a rule.

For now, continue to be reminded that unless you have a waiver or hire a company that does, using drones for real estate marketing purposes is illegal.

Lesley Walker is an associate counsel at the National Association of REALTORS®.

Contact her at 312-329-8834 or lwalker@realtors.org.

MAY/JUNE 2015 · ARCADIA REALTOR®

7

SOUTHERN CALIFORNIA’S PREMIER HOME INSPECTION COMPANY!    

We pride ourselves on professionalism and always keep the clients best interest in mind.

After the inspection, your reports are always posted on our web-site the same day.

All reports are written in a narrative style and include color pictures with arrows pointing to defects.

We follow the standards set forth by “CREIA” the California Real Estate Inspection Association.

PROUD AFFILIATE MEMBER OF THE AAR SINCE 2008!

Call Us Today to Schedule Your Inspection

877-735-7050 or Schedule Online

8

www.morrisoninspects.com

ARCADIA REALTOR® · JANUARY/FEBRUARY 2015

AFFILIATE Corner

“The New Closing Disclosure Form is Coming”

By Maureen McCune, Home Capital Group

Were you curious about the changes happening on August 1, 2015? More changes to the lending industry of course!

These changes not only will affect lenders, but also third party service providers such as real estate agents, escrow companies, and title companies.

The Consumer Financial Protection Bureau (CFPB) is an independent agency of the United States government and is responsible for consumer protection in the financial sector.

They decided to have the borrower’s mortgage disclosure forms revised to be simpler and easier to read for the consumer when obtaining a real estate loan.

Often, borrowers have questions and concerns about the terms of their loans because the forms used can be complex. The new forms have been redesigned to simplify the information. The new “Loan Estimate” form replaces the current Good Faith Estimate of Settlement Costs (GFE) and the initial Truth and Lending Disclosure (TIL). The new “Closing Disclosure” form replaces the current HUD-1 Settlement Statement and Final Truth in Lending Statement.

When the new forms roll out on August 1, 2015, lenders will be required to provide borrowers with their Loan Estimate form three business days after the loan application date. This will allow the borrower to review the loan terms and estimated loan and closing costs. Borrowers can also compare the costs and features with different loans at this time.

The Closing Disclosure form must be provided three business days before the closing of the transaction. This form is a combination of loan information and settlement costs. Communication between lender and the escrow officer will be necessary to complete the Closing Disclosure form.

The new disclosures will help borrowers understand the mortgage offered, commit to the loan being offered, and make comparisons between loan products. If any changes to the loan are needed on the Closing Disclosure form during the three day period, the loan closing will be delayed.

Borrowers may try to modify or waive the three business day waiting period of the Closing Disclosure if

they have a “bonafide financial emergency”. This is very rare.

An example of a “bonafide financial emergency” would be an imminent loss of or harm to a dwelling or harm to the health and safety of a natural person. Keep in mind, a delayed closing is not usually considered a “bonafide financial emergency” since an extension can be agreed upon between buyer and seller.

How will the changes affect the real estate community? REALTORS® should be aware of the mandatory three day notifications for both the Loan Disclosure form and the Closing Disclosure form and how these changes will affect the timing of the transaction.

Buyers and sellers should understand if there is any last minute changes, a new three day Disclosure form may likely be generated.

For more information, talk to your knowledgeable, friendly lender whose ready to help you coordinate your transaction into a smooth closing.

Maureen McCune, Senior Loan Consultant, Home Capital Group. For more information, contact Maureen at: 626-991-4656 or maureenmccune@yahoo.com MAY/JUNE 2015 · ARCADIA REALTOR®

9

AAR @ The Monrovia Easter Egg Hunt!

(L to R): AAR Affiliate Marcus Jacques, 2015 AAR Community Outreach Chair Cheryl Johnson and AAR Member Hugo Torres

The Shred with Street Cred!

The Arcadia Association of REALTORS® recently had its Annual Paper Shredding Day on Friday, May 1, 2015. Members and their clients brought all their unwanted documents to this HUGE event!

Drive-through service was available.

10

ARCADIA REALTOR® · MAY/JUNE 2015

AAR received recognition from the City of Monrovia City Council for sponsoring the Monrovia Community Easter Egg Hunt & Healthy Kids Day on Saturday, April 4, 2015.

(L to R): Mayor (and AAR member) Tom Adams, Council members Larry Spicer and Becky Shevlin, 2015 AAR Pres.

Joe Pacilio, 2015 AAR Community Outreach Chair Cheryl Johnson, Former Mayor Mary Ann Lutz, Council member Alex Blackburn and Monrovia Community Coordinator Lisa Hansberger.

COMMITTEE Highlights YPN Appy Hour

YPN Charity Poker

YPN Softball Game

MAY/JUNE 2015 路 ARCADIA REALTOR庐

11

Welcome, New Members!

NEW REALTORS® APRIL 2015 Ginger A. Brooks, Coldwell Banker Arcadia; Angel Chao, Kingston Realty; Roger T. Chao, Skyway Investment Corp.; Di Chen, Coldwell Banker George; Edward W. Choi, Long Dragon Realty Group, Inc.; Tammy Y. Chung, Coldwell Banker Dynasty Arcadia; Ke L. Covarrubias, Kingston Realty; Anaflor Daguiar, Cecilia Milner Real Estate; Grace Feng, Treeline Realty & Investment; Vickie M. Ho, Re/Max Advanced Realty; Oscar Huang, Sentient Properties; Betty M. Kwan, Coldwell Banker Dynasty Arcadia;

12

Chat M. Lee, United Real Estate Los Angeles; Simon D. Lee, Simon Realty; Eunice Leung, Long Dragon Realty Group, Inc.; Dan Liu, Highland Real Estate; Jack C. Liu, Lotus Property Services, Inc.; Maria McGloin, Maria McGloin, BROKER; Kevin L. McLemore, Coldwell Banker George; Vanessa Montanez, Excellence Real Estate; Patrick P. Mundo, Dilbeck Real Estate; Wen Ouyang, Highland Real Estate; Kevin Phun, Coldwell Banker George; Katherine Quach, Treeline Realty & Investment;

ARCADIA REALTOR® · MAY/JUNE 2015

Michael R. Raspa, VasTree Real Estate; Jun Shen, Long Dragon Realty Group, Inc.; Tatana Spicakova Romero, Coldwell Banker Arcadia;

Tony T. Tang, Skyway Investment Corp.; Yoshiko Tung, Coldwell Banker Dynasty Arcadia; Carlos E. Valenzuela Rivas, Urban Link Realty; Ying Xiong, Highland Real Estate; Meiwen Ye, Coldwell Banker George; Hui H. Zhan, Long Dragon Realty Group, Inc.;

It’s Becoming Easier to Get a Mortgage

Lenders are showing signs of loosening up when it comes to home buyers seeking a mortgage. The Mortgage Bankers Association’s Mortgage Credit Availability Index ticked up slight in April, following an increase the previous month too. Increases in the index are indicative of an overall loosening of credit.

MBA’s index shows that mortgage credit availability has increased consistently over the last several months, coinciding with recent announcements from the federal government of programs that have been designed to open the credit box. Fannie Mae and Freddie Mac’s move to back 3 percent down payment loans as well as the Federal Housing Administration’s action to reduce its mortgage insurance premiums have helped ease credit, MBA Chief Mike Fratantoni says.

Other government offerings also helped to ease credit even more in the latest report, reflecting April data, MBA notes.

“Mortgage credit availability increased on net in April,” Fratantoni says. “The increase was driven by new offerings of FHA’s 203K home improvement program, new VA offerings, and new jumbo products. The increase was partially offset by some investors tightening underwriting criteria on conventional cash out offerings.”

13

REALTORS® surveyed have pinpointed tight credit conditions, significant lender overlays, and loan processing delay as a major hurdle facing their buyers the past few years, but REALTORS® are also reporting gradual improvements, according to the latest REALTORS® Confidence Index, a survey of real estate professionals.

REALTORS® point to the trend of lenders showing more willingness to accept slightly lower FICO scores moving from the high range of 740-plus to now the midrange of 620-740. Also, REALTORS® note an increase in the number of their clients securing a loan while making zero to 6 percent down payments. FHA’s reduction in the mortgage insurance premium and the GSE-backed 3 percent down payment loans are helping buyers to come with less money to the table.

But while mortgage credit availability is showing definite signs of easing, credit continues to still be far less available than it was during the housing boom days, according to MBA. Source: “MBA: It Keeps Getting Easier to Get a Mortgage,” HousingWire (May 12, 2015) and “REALTORS® Confidence Index,” National Association of REALTORS® (April 2015)

ARCADIA REALTOR® · JANUARY/FEBRUARY 2015

MAY/JUNE 2015 · ARCADIA REALTOR®

13

Arcadia Association of REALTORS® 601 South First Avenue Arcadia, California 91006

Affiliate Business Card Ad for 4th of July AAR Magazine

ONLY $39!

Affiliates, you have the opportunity to advertise in the next Arcadia REALTOR® Magazine. Contact Affiliate Liaison Jamie Hu to place your ad.

626-446-2115 or Jamie@TheAAR.com

• Estate Planning • Trust Administration • Probate • Business Law • Commercial Transactions • Corporation, LLC & Partnership Formations • Business Contracts

Call today for a free consultation

Romy S. Rahmanian, Attorney

(626) 869-8787 33 East Huntington Drive • Arcadia, CA 91006 romy@rahmanianlaw.com • www.RahmanianLaw.com

Insure it all. Prices fall.

I can help you save time & money.

One agent for all your insurance needs saves time. And Allstate’s multi-policy discounts are an easy way to save money. For affordable protection for your car, personal watercraft, snowmobile and more, call me first.

Leticia Pomes 626-286-7734

Pomes Insurance Services, Inc. 9160 E Las Tunas Drive Temple City, CA 91780 leticiapomes@allstate.com CA License #: 0C42479

Se habla español.

Insurance and discounts subject to terms, conditions and availability. Allstate Insurance Co., Allstate Indemnity Co. Northbrook, IL. © 2010 Allstate Insurance Co.

120698

Dedicated to Providing High Quality Legal Services