REALTOR Magazine April May 2016

®

APRIL / MAY 2016

INSIDE

Disclosures

Eliminate Fraud

What’s the next

MLS Move

Market Your Business

On Facebook

Team Bringing Home the Cure supports

CAMPOUT AGAINST CANCER AND RELAY FOR LIFE See page 18

REAAC Raises

Fraud Awareness

R E A L T O R S

®

– T H E

H E A R T

O F

BAKERSFIELD REALTOR® MAGAZINE

G I V I N G

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BECAUSE YOU’VE EARNED IT. Windermere at Seven Oaks is an exclusive, gated residential community by Castle & Cooke. Where award-winning homes surround a beautifully landscaped central park. A place where quiet greenbelts embrace bubbling fountains amid the glorious colors of nature. A place where families just like yours can feel right at home. Experience Windermere today.

You’ve earned it.

NEW CASTLE & COOKE HOMES 661-664-5870 - Allen Rd. and Chamber Blvd. - CASTLECOOKEHOMES.COM

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BRE# 01254164

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PRESIDENT’S LETTER. Bill Redmond shares skills to help you be successful in any market.

POLITICS. Libraries, libraries, libraries.

Measure F debate Yes v. No.

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FRAUD. Don’t be a victim, hire a licensed Contractor.

Deputy District Attorney David Wolf, offers advice.

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NAR & C.A.R. Leadership beyond the local level.

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STRATEGIC PLAN. Leadership gathers for two days and develops a new strategic plan.

CULTURE. Tips for making sure your culture is reflected in annual real estate events.

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BRINGING HOME THE CURE. Wine, Craft Beer and Auction fundraiser was a huge success!

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PHISHING. Email scams are targeting our Real Estate Industry.

MLS. In the age of upstream, what is the next move for MLS.

AFFILIATES. Our local partners gather for Wool Growers luncheon and networking.

GRANT. In honor of the National Boys and Girls Clubs Week, the Association received a grant to work in partnership with our local Boys and Girls Club.

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MEMBERSHIP BENEFITS. Association offers various REALTOR® benefits tailored just for you, from education to group insurance and so much more.

Member Benefit

CODE ETHICS CODE OFOFETHICS

® NAR mandates that REALTORS® be required R E A L T O R ® TtoRcomplete A I REALTOR N I N Code G of Ethics training… for your convenience, Joe Newton, Ombudsman, is facilitating the class throughout the year.

CODE OF ETHICS Training Schedule at the Association Mark your Calendar!

2016 N.A.R. Quadrennial Code of Ethics with Joe Newton Classes will be held the 3rd Wednesday of each month. Additional classes to be scheduled as needed beginning in October. Afternoon sessions will be as needed.

April 20 9:00 – 12:00 May 18 9:00 – 12:00 June 15 9:00 – 12:00 July 20 9:00 – 12:00 August 17 9:00 – 12:00 September 21 9:00 – 12:00 October 19 9:00 – 12:00 November 16 9:00 – 12:00 December 14 9:00 – 12:00

This is a member benefit no charge to our members

For more information call

635.2315

ON THE COVER Team Bringing Home the Cure joins in the fight against cancer as this passionate group supports Campout Against Cancer and Relay for Life.

Executive Editor - Linda Jay, CEO Managing Editor - Carol Duran Graphic Designer - Carol Duran Bakersfield Association of REALTORS® 2300 Bahamas Drive, Bakersfield, CA 93309 P. 661-635-2300 F. 661-635-2317 www.bakersfieldrealtor.org www.bakersfieldrealtor.com facebook.com/bakersfieldrealtors twitter.com/bakorealtors

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LETTER FROM THE PRESIDENT

I

’ve been a real estate trainer now for over 15 years, and in that time I’ve seen agents come and go. I’ve seen all types of markets too… the good and the bad. Agents who have survived both the good and bad are the ones who stick to the basics.

I would like to share with you the essential basics you need to know in order to withstand any kind of market. The following was taught to me by the Mike Ferry Organization and was published in his “2008 Market Report”. These are the skills you need to know.

SKILL SET. There is a direct correlation between the level of skills you have as a sales person and the results you receive. In the marketplace today, buyers and sellers want the highest skilled sales person possible. As you know, from 1995 to 2005 sales skills were not necessary in the real estate business. Anybody… anywhere… anytime…could do a “deal” and get paid; and in some cases, actually call themselves a professional real estate sales person. That has all changed, and for the good of buyers and sellers alike. Unfortunately, it’s not so good for untrained, unskilled real estate agents.

The skills required today are the skills of managing your time with high efficiency… the skill of generating highly qualified leads daily…the skill of effective follow up… the skill of pre-qualifying so the Agent’s time is not wasted or lost… the skill of making strong, precise, to-the-point presentations… the skill of handling buyer and seller objections… and the skill of closing.

The major challenge agents have today is a lack of confidence. This complete lack of confidence is caused by not knowing what to say or what to do. If you believe that knowledge equals confidence and ignorance equals fear, then you will accept the fact that developing a high level of specific sales skills will increase your confidence, eliminate your fears and get you into positive action which brings positive production and income.

If you are not willing to commit to learning the skills required to become a professional sales person, your staying power in this business is slim to none.

THE MARKET. One of the most challenging things we deal with today, is accepting the market as it is and not how we would like it to be or how we wish it to be… and as importantly, not bending with the market. By bending the market, I mean we can’t let the market push us around, push us over, knock us to our knees and beg and grovel for business. The market is what it is, and knowing that our competition is not only bending with the market but also being beaten by the market, puts us at an enormous disadvantage when working with buyers and sellers.

ACTIVITIES. There is a direct correlation between the level of activities

SKILLS huge success

to get you through any market and be a

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the real estate professional is involved in daily and their productivity. The challenge is defining the activities between income producing and non-income producing. The majority of all real estate sales people in North America today have been trained to be involved in non income producing activities, which they mistakenly believe will bring the production.

If we look at the word “predictable” and “duplicatable” in relationship to selling real estate, we will have a better understanding of income-producing activities vs. non-income producing activities.

An agent decides to hold an open house and through the course of that day, a buyer walks in and actually buys that house. The first question is, what are the odds of that happening again during that agent’s lifetime… and we both know the answer is, minimal. Holding an open house is a real estate activity… but you can predict what kind of result you will get from the open house and the answer is, none… If by chance someone walks in and buys that house from you, can you duplicate that again at-will? Again the answer is no, which makes this a non-income producing activity. Spending endless hours in the office working on your computer is defined as an activity, but how much income will you receive from all your endless hours on the computer, even though

Continued on page 22

LETTER FROM THE CEO

Get Your

Game On! W

here do you find your inspiration? In the ‘busy-ness’ of our daily lives, sometimes we are so head-down, on-task that we risk missing amazing moments of inspiration if we are not intentional about being open to the possibilities. You may be sitting in a meeting, listening to a speaker, reading a book, having a conversation with a friend or colleague, or maybe just enjoying some rest and relaxation.

The mystery and truth about inspiration is that it is everywhere and can show up in a moment’s notice – when you least expect it!

As the CEO of our Association, I have the privilege of attending many seminars and training sessions that challenge and encourage us to increase our CEO

The mystery and truth about inspiration is that it is everywhere and can show up in a moment’s notice - when you least expect it! capabilities. In this context, ‘CEO’ does not just refer to a corporate title, but it involves so much more! If you were to Google the acronym ‘CEO’, you would find it is used to represent a wide variety of ideas, including: Consider Every Opportunity, Consider Every Option, Cutting Edge Objectives… and the list goes on and on! As a corporate CEO, these are critical elements to achieving and sustaining the effectiveness and success of our business. The same is true for every business.

2016 OFFICERS President Bill Redmond Watson Realty ERA President-Elect Midge Jimerson Boydstun Realty Co. Inc. Vice President Derek Sprague Sprague Real Estate Group

We can truly find the most amazing possibilities to enhancing our business or helping us to become better tomorrow than we are today. But, don’t let your creativity and innovation become discouraged or missed by obstacles. Obstacles like ‘we’ve always done it that way’ or ‘that will never work in my business’ or ‘that would take too much time and resources to implement’ stand in your way of becoming cutting edge in everything you do! Look around, consider every option and every opportunity to make what you do the very best it can be; then, ‘get your game on’! Be so good at the basics that you are cutting edge!

2016 DIRECTORS Secretary/Treasurer Athena Collup Miramar International — Mill Rock Immediate Past President Sheri Anthes Coldwell Banker, Preferred — Ming

Chief Executive Officer Linda Jay

Pam Epps Miramar International – Truxtun Brian Tuttle Coldwell Banker Preferred– Coffee Kevin Palla Broker

Wayland Louie RE/MAX Golden Empire

Darlene Tobias Tobias Real Estate

Scott Knoeb Frontier Real Estate Group, Inc. Ashley Weaver Karpe Real Estate Center

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MEASURE F debate YES v. No Libraries. Libraries. Libraries. We have been hearing a lot about libraries over the past year. After extensive debate and impassioned discussion, the Kern County Board of Supervisors recently decided to add Measure F to the ballot: the Kern County Library one-eighth cent sales tax measure. Votes will be cast in June. It is important that REALTORS® pay close attention to these types of issues.

Measure F could have a significant outcome that would affect our neighborhoods and communities. We must also consider any fiscal impact on our businesses. As we cast our ballots this June, we need to stay informed and support policies that make our community a better place to live and work. Below you will find arguments from both sides of Measure F. What do you think? contribution by

MARY K. SHELL CHAIRPERSON FOR YES ON F Mayor City of Bakersfield (1981 - 1985) Kern County Supervisor (1985 - 1997)

Despite the notion that libraries are dying institutions, one need only look at other libraries across California to see the vibrant, bustling community centers that libraries have become in the 21st century. Far removed from the quiet libraries of yesteryear, modern libraries are on the cutting edge of technology, incorporating a variety of services for everyone from local businesses to young children.

Investment is the key to giving Kern County libraries the tools to transition into a hub of community learning, collaboration, and inspiration. For every dollar invested in local library services, up to $10 is returned to the community. Additionally, homes located near libraries see higher property values, especially when that library is a bustling

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Kim Schaefer GOVERNMENT AFFAIRS DIRECTOR

neighborhood center. Like schools and parks, libraries lend to the quality of life that homebuyers look for when relocating.

Average per capita funding for libraries in California is $47. At $8.50, Kern County’s per capita library funding is less than 19% of average, making it the least-funded library of its size in the entire state. Even so, in 2014-2015, our public libraries circulated nearly 1.3 million items. Over 1 million citizens of all ages visited the libraries, and more than 55,105 children participated in reading, afterschool, and childhood literacy programs. In the past 12 months, more than 61,000 citizens have enjoyed more than 3,286 different county library programs.

The 24 public libraries of Kern County are well used, beloved, and a vital resource to our neighborhoods and communities. Voting for libraries is a vote for a more prosperous, safe, and desirable Kern County. contribution by

RACHEL GLAUSER BETTER LIBRARIES FOR KERN COUNTY www.BetterLibrariesForKern.com

This June, taxpayers will be asked to raise their own taxes in order to fund our outdated, highly underutilized library system. Given that reality, throwing more taxpayer dollars at a very

broken system is not a responsible solution. We are one of only two counties in the state still operating libraries under an antiquated civilservice system with inefficient public employee labor union mandates.

Fortunately, there is another way to improve our libraries, and that is found in a “publicprivate partnership,” or P3. The County still owns all of the facilities, books and sets policy, but hires an experienced private sector business to carry out the operations.

By partnering with the private sector, we can effectively create modern, dynamic libraries without tapping into the taxpayers’ already shallow pockets.

This successful model is in place all over the country, including municipalities throughout California.

Increasing the sales tax in conservative Kern County needs to be reserved for critical services that benefit all our residents – like roads and infrastructure.

Voters in Kern County are notoriously averse to tax increases, so piling on little-used services, like libraries, to our sales tax rate – when the current operation system is so flawed for modern users – is a tremendous waste of both taxpayer dollars and voters’ goodwill.

Better libraries are still possible. Let’s fix the broken system first! By entering into partnerships with the private sector, we can dramatically improve our library system while reserving monies from tax measures for imperative county improvement projects.

The private sector is able to employ people more efficiently and effectively, and can run an operation that better serves the people in our community.

We urge a “NO” vote on Measure F.

HIRE a licensed CONTRACTOR contribution by

DAVID E. WOLF DEPUTY DISTRICT ATTORNEY

The Kern County District Attorney’s Office, the California Contractors State License Board (CSLB) and the California Department of Insurance are seeing a surprising number of fraud cases committed by unlicensed, uninsured, fake contractors. There are a number of hazards in hiring an unlicensed contractor. n First, you risk sub-standard work. n Secondly, you risk having work completed that is not up to code. If you are lucky, you will only have to pay to hire a licensed contractor to fix the problem. If you are not lucky, you might be dealing with injuries or death from faulty work. This past year, an unlicensed contractor replaced a pool light (underwater) and simply wrapped black electrician’s tape around the electrical wiring.

Had someone been in the pool when the light was turned on they could have been seriously injured or killed. n Thirdly, I have yet to see a case where the unlicensed contractor has the required workers’ compensation insurance; however, they almost always seem to have “a friend” working with them. When that person gets hurt on your property, hopefully your home owners insurance will be able to cover the medical expenses. n Finally, there have also been cases where criminals with serious felony records are pretending to be licensed contractors and gain access to people’s homes. We had one case where an unlicensed, uninsured, registered sex offender came to a home armed with a firearm pretending to be a licensed contractor.

Before letting a stranger into your home,

wouldn’t it be nice if there was an easy way to check to see if that individual had a prior serious criminal conviction and to determine whether this individual has workers’ compensation insurance for his employees?

Wouldn’t it be nice if you could tell if this individual actually knew something about construction?

That service does exist and it is FREE. Before letting that so-called contractor into your home, run a free CSLB check. CSLB completes a criminal background check on every applicant before issuing a contractor’s license. Using a licensed contractor is worth it, and odds are you won’t really spend that much more on a licensed contractor; you’ll likely save money because they will do the job right the first time. By doing a CSLB background check you will be protecting yourself and your family. There are two very user friendly websites you can use to check if someone really has a contractor’s license: 1. www.cslb.ca.gov You can check by license number, company name or the person’s name.

2. www.bbb.org/central-california-inland-empire Our local BBB does a great job keeping its information up-to-date, and the search function is very user-friendly. Not only can you find out about a license, but you can also see problems that others have had. BBB even report government actions — like prosecutions. What does the BBB charge for all this great information? It is FREE. Finally, did you know that you can go to the Kern County Superior Court web site and find out both civil and criminal information about a person? This service is also free. Note, this will not give you any information about cases in any other county or state. The Superior

ABOUT THE AUTHOR: David Wolf is a Deputy District Attorney with the Kern County District Attorney’s Office. He has been a prosecutor for over two decades and has prosecuted crimes ranging from misdemeanors to first-degree murder. He is currently assigned to the fraud unit. He also volunteers with Kern County Search and Rescue, Mock Trial and We the People.

Court website is: www.kern.courts.ca.gov Once at this site, click on either the criminal or civil tab near the top. Then click on the search case information found at the top left column. Be sure to check both the civil and criminal sections.

Finally, if you have been a victim, please report it to: CSLB, the BBB, your local law enforcement agency (Bakersfield Police Department, the Kern County Sheriff’s Office) and to the District Attorney’s Fraud hotline: 1-800- 619-3039. Admitting you’ve been ripped off may be embarrassing, but if you report it we might be able to arrest and prosecute the perpetrator. We might be able to get you some of your hard-earned money back, and you might be protecting someone else from also becoming a victim. So let’s look out for one another and keep these unlicensed criminals from preying on our community.

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2016 HELICOPTER GOLF BALL DROP You could be a $100,000 Winner this year!

Every Golf Ball has a chance to WIN, buy your tickets today!

20 - 1 Golf Ball $ 100 - 6 Golf Balls

100,000 Winner

$

$

Date: October 21, 2016 Time: 5pm Location: Riverlakes Ranch Golf Course Benefits Our Local Charities:

2015 $100,000 Winner Brian Burt

Brian Burt, 2015 $100,000 Winner Bakersfield Association

OF REALTORS®

CHARITABLE FOUNDATION

COLLEGE SCHOLARSHIPS

We’re here to help defer the high cost of college. Apply today!

Our Association champions the pursuit of higher education, because education impacts every part of our community. The Scholarship Trust Fund offers qualified students from a Kern County high school, community college or university an opportunity to apply for scholarship funds.

Priority consideration is given to those who are pursuing a course of study in real estate or a related field at the college or graduate level; however, all students who meet the qualifications are invited to apply.

GENERAL INFORMATION Scholarships are considered once a year. This year applications are

due by May 5th at 5pm. Former recipients are invited to re-apply.

QUALIFICATIONS Applicants

must be a graduate of a Kern County high school or a student/ graduate of a Kern County community college or university.

Visit our website for more information and to download the application.

2016 Applications are available online, go to bakesfieldrealtor.org/about us/scholarships

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OMBUDSMAN DISCLOSURES eliminate FRAUD contribution by

JOE NEWTON Since 1986, California law (Civil Code 1102 et seq.) has required sellers of residential property containing one-to-four units to complete a document disclosing information about the property. The Transfer Disclosure Statement (TDS) asks for the seller’s awareness, not an affirmative statement regarding the true or actual condition of the property or its components. If the TDS is given Joe Newton after an offer has been made, the buyer has either a 3- or 5-day right of rescision (depending on how the disclosure was delivered).

Also, California law (Civil Code 2079 et seq.) requires real estate agents involved in the sale of residential property (1-4 units) to conduct a reasonably competent and diligent visual inspection of the property for sale, and to disclose to buyers all material facts and defects that such an inspection should reveal.

Since this inspection itself does not provide a form upon which to make the disclosure, C.A.R. developed a form for agents to use to satisfy their obligations; that form is the Agent Visual Inspection Disclosure (AVID) form.

C.A.R. also developed another form called the Seller Property Questionnaire (SPQ); and, although not required by law to be used in real estate transactions, the SPQ is recommended because many buyers and agents alike have come to believe that the TDS disclosures did not address issues that were recurrent in real estate transactions, nor did they not have the effect of prompting disclosure from sellers about such issues.

The SPQ does not replace the TDS, as the TDS is a statutorily-required form. However, as of November 2014, the RPA makes delivery of the SPQ a contractual requirement unless the seller is exempt from delivering the TDS

2016 Ombudsman Report

January - February 145 calls were received by our Ombudsman n

32 calls were grievance/ethics complaints against agents that were resolved n

0 call was an arbitration complaint against an agent which was resolved n

1 grievance/ethics packages were mailed to complaining parties regarding cases that could not be resolved n

0 Arbritraiion package was mailed to complaining parties regarding cases that could not be resolved n

72 calls requesting information on real estate procedures n

19 calls requesting information on deposits n

3 calls were complaint against a non association member n

n

2 anonymous calls

n

0 Violation of public trust cases reported

n

10 cases referred to Association mediation

n

6 Tehachapi calls

n

227 Year-to-date total

(see RPA paragraphs 10A(1) and 10A(4) for further information).

Another form developed by C.A.R. is called the Statewide Buyer and Seller Advisory (SBSA) form. It is informational only and in the pre-printed language does not create contractual duties between buyers and sellers.

The buyer is instructed here of the importance of having qualified professionals conduct inspections of the property. It is signed by both buyer and seller since some of the paragraphs which explain certain terms of the RPA are just as important to the seller as the buyer.

The Buyer’s Inspection Advisory (BIA) form specified in paragraph 5 of the RPA and attached to the RPA. This form does not create any obligations for the seller, but rather is intended to inform the buyer of potential areas of concern, as well as the importance of property inspections and the duty of buyers in taking actions to protect themselves. Also explained are the limits on a broker’s expertise, while listing common items a buyer may wish to investigate.

Lastly is the Supplemental Statutory

and Contractual Disclosures (SSD) form developed by C.A.R. to provide a convenient place for the seller to make disclosures required by law or contract. With only 10 questions asked (A-J) on the SSD, and like the TDS and SPQ forms, the questions ask if the seller is aware of specified conditions or events.

The SSD questions are similar to the questions asked in the SPQ; therefore, if a seller completes the SPQ, it is unnecessary to also complete the SSD form.

HOW DO DISCLOSURES HELP THE BUYER? Any of the forms may trigger the seller’s memory about the property, and prompt the seller to disclose information, thus giving the buyer additional information about the property. The buyer then decides how much to offer on a property, what types of inspections to make, what kinds of repairs to request, whether to seek other adjustments to the contract, and whether to remove contingencies or cancel the agreement.

HOW DO DISCLOSURES HELP THE SELLER? By providing a more complete and thorough disclosure either before or during a transaction than may have otherwise occurred, the seller reduces the possibility for misunderstandings with the buyer or, even worse, future claims by the buyer alleging the seller misrepresented the property, intentionally failed to disclose material facts or committed fraud.

A suggestion to the agent is to fully educate the seller on the importance of these disclosures and the need for thorough completion. Hopefully, a seller will fill out the documents while in a “calm and reflective” attitude, rather than while rushed during the signing of many other documents.

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Jeanne Radsick

Bill Redmond

Midge Jimerson

Derek Sprague

Athena Collup

LEADERSHIP beyond LOCAL LEVEL

M

any of our Association Directors and past leaders are not only involved in our Association governance, but are also currently involved in C.A.R. and NAR leadership. To get a better feel for what drives our local members into leadership at the state and national level, we asked them the following questions: How many years have you been participating on a higher level of governance? How has your involvement helped in your professional development in our industry? How has it helped you in relation to our Association? This is what they had to say:

JEANNE RADSICK I have been a participant in REALTOR® issues for many years, and find that I am more engaged today than when I first became involved. With each year and each committee that I have been allowed to be a part of, my knowledge and confidence in the importance of what we do has grown.

My first year as a C.A.R. Director was 1996, and I was fortunate to become involved in committees that I enjoyed, such as Commercial Investment and Consumer Protection. But it was being appointed to the IMPAC Committee that the world of REALTOR® involvement broadened my understanding. I was able to listen to presentations asking for monetary help to prevent intrusion into private property rights and bond issues all around the state. Since that time, I have participated in many aspects of our organization and served on many committees and task forces. I have chaired

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some, and simply participated in many of those committees. My current service is on the Strategic Planning and Finance committee, where I am in my final year of the threeyear appointment. This is the committee that monitors the budget, and is also tasked with coming up with programs or services which provide benefits to all members. I am also on the Affordable Workforce Housing Task Force, which dovetails nicely with the Workforce Development Task Force that we are working on in Kern County. Housing is a key component of a stable workforce, and we are lucky that our local leaders recognize the value of working with REALTORS®.

I remember attending my first NAR meeting in 1999. The scale was huge compared to the California Association, and I received my first appointment as a director in 2003. I have been extremely fortunate to continue to serve at the national level where last year I was the Chair for the Multiple Listing Issues & Policies Committee. This year I am serving as Chair of the MLS Technology and Emerging Issues Advisory Board. There are so many changes within our industry, and so many different areas and practices across the country that we need to work on collaboratively to solve issues which represent best practices of REALTORS®.

I have been blessed beyond measure with the support from our Association which has allowed me to represent all of our members.

We are a strong, recognized entity with political clout which transcends each of us as individuals, and we continue to press for those property rights that are the basic tenet

of our organization. Thank you for allowing me to serve.

BILL REDMOND My role at C.A.R. for the last 7 years has been that of a locally appointed State Director, representing Region 12 and our local Association. I attend three meetings a year, which take place in January, April, and September. Our January meeting primarily focuses on the installation of the new officers and president.

The spring meeting concentrates on the legislative aspect of our industry and gives us a chance to meet our legislators.

The fall meetings deal with new changes being made to our industry, contracts, laws, et cetera. These meetings also have a large EXPO which introduces all new and emerging technologies that will enhance our ability to work more efficiently and effectively.

One of the greatest things about being a Director for C.A.R. is the understanding of how much our organization does for our business; how it protects our way of life, while at the same time giving us the opportunity to participate in the “American Dream”.

MIDGE JIMERSON Early in my career in real estate, I started attending C.A.R. conventions, mostly as a tag-a-long with my dad, John Boydstun. I quickly realized that these meetings provided a great opportunity for me to participate in discussions about things that affected me and my real estate career. There were discussions about legislation coming from Sacramento

Theresa Olson

David Knoeb

that could have a huge impact on the real estate community, not just REALTORS®, but anyone who owns property. There were classes to show me what was new in real estate – from technology to forms. In all areas of real estate, I could find the most current and updated information! Attending these classes helped me stay in tune and up-to-date with the real estate community.

Going to our State conventions has given me the opportunity to meet with REALTORS® from all over the State of California. There are three conventions per year: Winter, Spring, and Fall. I really enjoy the Spring convention, called Legislative Days, where we get to meet with our legislators at our state capitol. We meet in a convention hall with over 3,000 of our colleagues to address the hot legislative issues we are currently facing and substantiate our reasons for supporting or opposing those issues, realizing it is critical to take stance that is beneficial for all of California, not just one area. In the Fall we attend the EXPO convention, where you can find everything imaginable to assist all REALTORS® in their profession – from business pictures to prospecting programs. It is jam-packed with real estate essentials.

I value my time at every convention. Each time I attend, I am learning something new and very timely. This information has been helpful in explaining changes in real estate transactions to my clients. It has also educated and reinforced in me the duties that REALTORS® have to the consumer.

In addition to serving as the 2016 President Elect for our local Association, I am serving as a locally appointed C.A.R. Director. I have been attending C.A.R. conventions for over 10 years, but my real involvement as a director

Scott Tobias

Scott Knoeb

has come about over the last 3 years. Keeping informed on state-related real estate issues is critical to being able to manage and direct at the local level. It helps bring new ideas for engaging and educating our members. At this time, I have not been very involved with the National Association of REALTORS®, but I look forward to being able to represent our membership at the national level in the future.

DEREK SPRAGUE For the last several years, I have been working with a group of commercial REALTORS® from across the state to grow commercial resources offered by the California Association of REALTORS® (C.A.R.). These efforts resulted in assembling a new forum at C.A.R., the Commercial Investment Forum, and I am honored to be selected as its first chairperson.

This is great news for anyone with an interest in commercial or investment properties; however, just as Winston Churchill, Spiderman, and many others have said before in one way or another, “The price of greatness is responsibility.”

We have been working vigorously to establish the groundwork for our forum and identify goals for 2016. Since our first meeting in January, we have established an advisory group of REALTORS® from all over the state to be the point-of-contact in several critical areas including advocacy, building relationships with affiliates, facilitating communication, creating opportunities for education and events, developing member resources and benefits, and spearheading research. As the Commercial Investment Forum continues to grow, this advisory group will be critical in working with local REALTORS®.

There is already a wealth of resources

Linda jay

available to commercial REALTORS®. For example, REALTORS® can reflect their interest in commercial transactions by signing into www.REALTOR.org and editing their National REALTOR® Database (NRDS) information. The National Association of REALTORS® (NAR) also updates issue briefs regularly with its actions in ongoing legislation or regulation…issues such as the status of 1031 exchanges, lease accounting, energy efficiency standards, and more.

Education is available through the CCIM Institute, Institute of Real Estate Management, REALTORS® Land Institute, and others.

NAR also publishes regular research, and C.A.R. offers 12 free hours of continuing education annually, with some commercial classes included. This is just a glimpse…the Commercial Investment Forum plans to build our communication network so that this information can be better distributed to our members.

There is no blueprint for starting a new forum. Instead, we have mirrored some of the best practices of other committees and forums, and we went to work on developing the next steps. I am blessed to be working with an extremely talented vice-chair and advisory team, but if you have any suggestions or ideas for what our national, state, or local REALTOR® Association can develop, I invite you to share them at the next Bakersfield Association of REALTORS® Commercial Investment Committee meeting on April 15th at 8:30 AM.

ATHENA COLLUP My role at the Bakersfield Association of REALTORS® is to serve on the Executive Board as Secretary/Treasurer. Our 2016

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strategic plan adopted five goals with each category being: Educate, Engage, Lead, Advocate and Serve. I serve as oversight officer of the ‘Educate’ goal. The committees include our educational events, commercial investment, diversity, membership/orientation and technology. My responsibility is to make sure that all of the activities within these committees adhere goals and objectives set forth in our Strategic Plan.

I have been serving at the Bakersfield Association of REALTORS® from the beginning of my career (over 20 years!) on various committees, as well as a Director for both Association and GEMLS for the last 7 years.

I have served as a C.A.R. Director for the last 3 years. My first experience with our state Association was during Legislation Days. I marvelled at how many member volunteers had left their businesses – many paying their own expenses – and travelled to the State Capitol to make sure our legislators were reminded of the power behind real property ownership and the willingness of REALTORS® to fight to protect property rights. That particular year there were over 5,000 Californians, some were directors in the room, and we personally hand-delivered our agenda to Governor Brown. For me, it brought to life our Bakersfield Association of REALTORS®’ statement of purpose: ‘The Bakersfield Association of REALTORS® is the leading advocate of the real estate industry, its members and consumers they serve.’

To experience first-hand how C.A.R. and NAR govern, has helped me with governance in relationship to our own Association. I can see that the Bakersfield Association of REALTORS® has governed responsibly in the same way as C.A.R. and NAR, but just on a smaller scale. At our local level, you are able to truly experience how each member has a voice and how important each voice is in making a difference. A reminder to us all to sign up, show up, and speak up!

THERESA OLSON For the past 7 years, I have had the privilege of being a Director for the California Association of REALTORS®. I have had the privilege of serving as a C.A.R. appointed Key Contact for Senator Jean Fuller for the past two years.

I have seen first-hand how our Association can be a major player politically in making a huge difference for our industry and the

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people we serve. Each of us has a role to play in shaping our local, state and national government. You may think your vote doesn’t matter, but it does! The REALTOR® Party is Alive and Well! We Are a Voice to be Reckoned With! Our issues concern homeowners, property rights, and our industry as a whole! When you receive a Call to Action, Heed It and Respond! Then, pass it on to family, friends and your clients! We are ambassadors who C.A.R.ry the torch!

Don’t let your torch fizzle out! Keep it burning BRIGHTLY! Stay Involved! Stay Tuned In!!

Support the REALTOR® Party!!

DAVID KNOEB May of 2010 was my first real encounter with the California Association of REALTORS®. I was serving on our local board of directors and was invited by leadership to attend legislative day at our State Capitol. As I look back, I had no idea this day would be the turning point in my real estate career. It was amazing to see first hand over 2,200 of our fellow REALTORS® coming together to deliberate on every issue affecting the real estate industry. Their passion and beliefs to protect property rights and to be the voice of real estate was contagious.

During the first few days, we met with several State legislators: Assemblywomen Shannon Groves, Senator Jean Fuller, and several others. I was really impressed with all of our representatives as they listened to our hot issues, respected our views, but also their willingness to help us make a positive impact in our community. It was on this day it became apparent to me that REALTORS® have the power to make a difference.

I am currently serving on several C.A.R. committees: Region 12 Director in Training for NAR (2014-2017); Region 12 Liaison and Committee Member on Investment Housing Committee (since 2014); and, Member of the Education Advisory Committee (2016-2017).

SCOTT KNOEB The first time I ever attended a C.A.R. or NAR event was during 2012; however, it wasn’t until I went to Legislative Day in 2014 that my eyes truly opened. Looking back on it now, I had no idea that my business and personal life would never be the same. Seeing REALTORS® from all over California in one place, with one purpose, was the biggest eye-opening experience in my career. I knew

after that day that I would always pay the true cost of doing business. I truly understood the importance of having a voice in California and across this great nation.

The first time I ever spoke to an elected offical was during Legislative Day. Several of our local legislators attended a private luncheon. Senator Andy Vidak took a seat right next to me. At first I was so nervous, but after talking with Senator Vidak, I realized he was very approachable and willing to discuss issues affecting property rights and our industry. It was such an honor to represent the Bakersfield Association of REALTORS®, its members and property owners. I would highly recommend that everyone attend a C.A.R. or NAR event at least once in their career.

LINDA JAY When I began my career in real estate in 1989, it was purely for convenience as a means of assisting in our family business of land development and custom home building in Santa Barbara. I had little understanding of the prestige and influence of our REALTOR® organization. But that dramatically changed in 2001 when I was asked to be on the Board of Directors of the Tehachapi Area Association of Realtors®. It was while serving as their Board President in 2003 I made my first trip to our state meetings as a C.A.R. Director.

I was hooked! Realizing that I could have a voice in setting policy for our organization and also be part of a much larger voice of advocacy in protecting our business and the rights of property owners, was exciting and empowering… I could help make a positive difference! Since that time, whether as a REALTOR® or as the CEO of our Association, I have been intentional about my commitment to support and protect our organization at the State and national level. I currently serve as a CREPAC Trustee, a political arm of our organization, on the AE Advisory Committee, Chair of our 2016 State AE/GAD Institute and as a mentor for the National Association’s RCE (Realtor® Certified Executive) program.

Previously, I have served as C.A.R. AE Advisory and Committee Chair, member of Equal Opportunity, professional standards, Federal Issues, Local Government Relations and Legislative committees. Every opportunity of service has helped me to better understand the significance of what we do every day and has helped me to grow professionally in ways I never dreamed possible!

FUTURE OF MLS

TIMES are changing for MLS In the age of Upstream, what is the next move for MLS STEVE MURRAY | PUBLISHER

Upstream is formed and partnered with NAR and its RPR/AMP technology platforms to build and activate a national parcelcentric property database. NAR partners with ZipLogix to deliver free transaction management while Realtor.com expands its agent profiles with a new agent review and rating platform. Where does that leave the MLS in the discussion and where is its future headed?

We spoke with Kevin McQueen, founder of Focus Forward Consulting, who advises many MLS leaders and boards about where their future lies. Here are some things he had to share.

“We are talking first of all about the women and men who run what is arguably the backbone of the industry. MLSs have made the market work for the last 40+ years. And, they realize clearly that technology and new entrants [into the market] threaten their role.

What to do about it is where the discussion really takes place,” said McQueen. “In our

work with them, we try to get these leaders to see what the future may look like, and what the options may be for them. The future is not crystal clear, and the options each have pluses and minuses. It gets complicated.”

Nothing Stays the Same McQueen commented that first MLS leaders have to admit that things will not continue as they have. The model in the industry of having hundreds of MLSs, far too often only existing because of the pride of owning your own MLS, still exists. “Instead of asking whether an MLS should exist, one big question should be what is the most efficient way to deliver first class MLS services for members?” he said.

Fewer MLSs is the Answer?

Many believe that fewer and stronger MLSs are an answer. “Fewer and larger MLSs can deliver more and better technology and data solutions to members. That is one of the main premises of Upstream—one platform, one set of data standards and one set of publishing tool sets. MLSs need to be thinking this way about the future. The recent announcement of the combination of MRIS and Trend is an example of leaders who thought that, while they are both large already, they can serve their members better by combining.” McQueen’s

thought is that size will matter, not just to say how large one is, but also to have the resources to offer better services to members and other constituents.

McQueen adds that “too many think that merely picking better technology is the answer. It isn’t. One must first define the business strategy and plan and then find the technologies that will get the job done. Tech as your focus is not the way to go. Rather, focus on a strategy that includes better service, lower costs and less complexity.”

He admits that governance and control issues remain a big part of the problem of advancing the interests of MLS. While the problem is not as bad as it used to be, it remains a significant roadblock in some cases.

McQueen said that the threat of the nationalization of the MLS has always been at the back of the minds of many who run MLSs. He said that for many of his clients, these recent moves by NAR bring that threat more to the forefront. His view is whether that is reality or not, MLSs have it within their resources and capabilities to remain strong and viable parts of the industry in the future.

This article reprinted with the permission of RealTrends Inc. Copyright 2016 BAKERSFIELD REALTOR® MAGAZINE

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STRATEGIC PLANNING

Here are a few snapshots that were taken from our Leadership Strategic Planning and Development meeting and reception.

LEADERSHIP develops new STRATEGIC PLAN The responsibilities of volunteer leaders are generally stated in the governing documents: bylaws, articles of incorporation and policies.

The rules of engagement have been developed to communicate cultural expectations and preferred behavior for governance.

In 2013, leadership at the time, set-inmotion a strategic plan for our Association.

The original plan was implemented to guide the Association from 2013-2017, but with great leadership, we were ahead of schedule.

So in February, we were ready to meet again for another in-depth development and strategic plan session. It was two days filled with strategizing and developing the plans of the Association. Although still awaiting final approval, our newly adopted plan

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spans the period from 2016 - 2020 guiding successive volunteer leaders, committees and professional staff.

Key elements of the plan include: n Purpose – Statement of purpose for the Association. n Vision

– The long term outcome of how the Association should be perceived. n Values

– Guiding principles for the leadership and staff. n Goals

– The core competencies of the Association to which sufficient resources will be allocated. n Strategies

– Approaches and programs to advance the goals. n Tactics

– Performance measures, assignments and deadlines to get the work

done. (These are most likely identified and tracked in an annual program of work.)

Five goals were established as the core competencies of the Association for which resources will be allocated. Three of the goals are primary purposes; while two of the goals are the foundation that supports Advocacy, Education and Service.

I. EDUCATE — Professionalism and Standards II. ENGAGE — Member Service and Value III. LEAD — Association Leadership and Operations IV. ADVOCATE — Government Relations and the Voice of Real Estate V. SERVE — Community Service

EVENTS

STAY TRUE to your CULTURE

BY TRAVIS SAXTON | VICE PRESIDENT OF TECHNOLOGY

EVENTS Tips for making sure your culture is reflected in your annual real estate events.

Recently, a person from the REAL Trends team was asked to speak at a client’s annual gala/awards event. Through these events, we rediscovered how two firms continue to build excellent companies and cultures with unique circumstances and deliver on annual events.

These events speak to those cultures and create great value for their agents.

CULTURE MATTERS Fun is a key ingredient for an event, but it is not the most important ingredient. Focusing on prestige, another common theme can hit the mark. Education is also important, so delivering interesting speakers and vendors can play a critical role in making your real estate event a success. However, I believe the most important aspect may be perception—what your agents, partners, and guests perceive is critical of your firm and your culture as an extension of your real estate event.

THE LUXURY CULTURE Daniel Gale Sotheby’s in Long Island has 646 agents in 26 offices spread out over Long Island covering a wide geographical area. The 59th ranked brokerage by volume according to the 2015 REAL Trends 500 has a knack for luxury, and they deliver. This luxury theme

UPCOMING EVENTS n YPN

Softball Tournament: May 21 Tie Gala: October 20 n 2016 Golf Tournament: October 21 n Black

carries over into their annual gala. This year it was hosted at the Garden City Hotel on Long Island. They brought in Philip White, the president of Sotheby’s, to represent their firm at the annual gala. They had an exceptional mix of local, national and technology vendors at the event. Their partners had dedicated time with the real estate professionals to make their way through the exhibit space. Energy levels were high, and music and a feeling of success surrounded you at their event.

ROCKER CHIC Across the state of New York, we attended RealtyUSA’s 2015 Annual Rally. The company boasts a strong footprint in the Buffalo, Syracuse, and Albany markets. The 9th ranked firm in the country by sides, per the 2015 REAL Trends 500, has 63 offices and 2,100 agents. You can imagine that geography and size play a challenging role in their event. The event is held annually at Turning Stone Resort and Casino in upstate New York, which happens to be centrally located and just far enough away that the event becomes a party. I knew I was in for something unique as I departed

my hotel room at the Turning Stone Resort only to be greeted with what appeared to be members of famous rock bands and their groupies on multiple occasions. I knew my country club attire was not going to fit in. I was correct, yet I still joined the nearly 800 rocker clad guests at the event.

The party was a blast and a testament to the culture Merle Whitehead and crew have developed. By 6 p.m., as dinner was being served, the dance floor was full of agents, managers, partners, and more. The party was followed by excellent content sessions and speakers. Every year, they change themes and spare no expense decking out the conference center with elaborate decorations, props and more.

Both of these unique events were effective at showing the company’s cultures. Consider that when developing your event.

This article reprinted with the permission of RealTrends Inc. Copyright 2016

Election nominations are now open!

SAVE THE DATES:

TIMELINE FOR NOMINATING PROCESS: n Nominations are now open – Election information published to members. Open invitation to submit applications n Friday, April 15 at 5pm - Applications due n Monday, April 18 through April 22 - Interviews of all qualified applicants n Monday, May 23 – Election ballots e-mailed to REALTOR® members n Friday, June 24, 5pm – deadline for submission of election ballots n Monday, June 27 - Election committee (appointed by President with approval of Board of Directors) convenes to tabulate votes n Wednesday, June 29, 10am - Election results released at Association Annual Meeting

For more information contact Linda Jay at Linda@bakersfieldrealtor.org

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THE NEW CFB scrutiny of MSAs Are marketing and services agreements illegal under RESPA? SUE JOHNSON | STRATEGIC ALLIANCE CONSULTANT

Marketing and Services Agreements (MSAs), under which a company agrees to market the services of another company in return for a fee, have been common in the real estate industry for years. They long have been considered lawful under the Real Estate Settlement Procedures Act (RESPA) provided that the fees are for services actually performed and not a quid pro quo for referrals.

But today, MSAs are squarely within the sights of the Consumer Financial Protection Bureau (CFPB), and it is important to tread carefully.

The CFPB has targeted MSAs several times in the last few years, fining companies for allegedly disguising illegal referral fees under these agreements. The vagueness of this gotcha approach to rulemaking caused some in the industry to urge the CFPB to provide more guidance as to what constitutes a legal MSA. The CFPB responded on October 8, 2015, by issuing a Compliance Bulletin, “RESPA Compliance and Marketing Services.” But, the Bulletin is a powerful reminder of the adage, “be careful what you wish for.”

The Bulletin stops short of saying that all MSAs are illegal under RESPA, but it clearly expresses the CFPB’s dislike for the arrangements. It repeatedly warns against “the substantial risks” posed by entering into MSAs and states that the CFPB “intends to continue actively scrutinizing” MSAs as part of its enforcement and supervision efforts.

After having issued these warnings, the CFPB surprisingly fails to provide substantive guidance on how to properly construct an

MSA or guidance as to what can and cannot be done in an MSA. Instead, it summarizes the facts of some of its past enforcement actions against MSAs and provides a few examples of activity to avoid, such as paying for services that are not performed.

So, where does that leave a company that has an MSA in place or which is approached with an MSA offer? First, it is important to examine the specific facts and circumstances surrounding any MSA with legal counsel who is familiar with the constant twists and turns of RESPA. Below are some other tips to help reduce your legal risks. n Don’t assume that real estate brokers can’t be a CFPB target. It is true that Congress excluded real estate brokerage as a “consumer financial product or service” that is subject to certain CFPB regulatory, supervision, and enforcement activities under Dodd-Frank. But real estate brokerage is a “settlement service” that is covered under RESPA, and the CFPB can enforce (and has enforced) RESPA against real estate brokers. n An MSA involving flat fees for the market value of consumer-direct advertising services (e.g., for banner ads on websites, links to websites, advertisements in email or direct mail campaigns) involves fewer risks than an MSA that could more easily lead to affirmative referrals by the company or its sales force. n Obtain an independent analysis of market prices for advertising and any services being promoted. Don’t assume that this review will get you off the hook if you are investigated.

The CFPB made clear in its Bulletin that independently-established market rate compensation for marketing services, alone, does not ensure the legality of an MSA.

n Develop a company-wide MSA policy and

constantly monitor your operations and the operations of your partners to make sure the policy and the terms of any MSA are being followed. Regularly emphasize the importance of compliance. Conduct training sessions for the sales force. A properly-structured MSA and/or a sound MSA policy can be made irrelevant by unauthorized referrals or loose talk by sales representatives. n Try to use any MSA as a catalyst for creating a better consumer experience. The CFPB’s concern over MSAs is in part based on its belief that they prevent a consumer from shopping and that they involve high costs.

Consider using voluntary, legitimate consumer discounts or rebates (within the applicable law) to make the price of the marketed services more competitive. Be ready to verify the consumer benefits of the MSA through documented customer feedback. n Use the same regulatory caution needed for MSAs with office space rentals. While HUD issued specific guidance on office rentals in 1996 (saying that the rent must be at market rate without regard for referrals), it relied on the same RESPA exemption that the CFPB appears to ignore in its MSA guidance.

RESPA violations can subject the violator to civil penalties, consumer lawsuits, disgorgement of profits and even imprisonment. Significantly, both givers and receivers are liable under RESPA. Assuring that an MSA is RESPA-compliant in the CFPB’s eyes can be costly and time-consuming, but it’s better to be too careful than to be careless and regret it later.

This article reprinted with the permission of RealTrends Inc. Copyright 2016

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TEAM BRINGING HOME THE CURE

WINE & BEER TASTING & AUCTION

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Bringing Home The Cure – It’s Our Passion and Our Commitment

C

ancer is very personal to almost everyone you meet. Perhaps you, someone in your family, or your circle of influence has had his or her life affected by this cruel disease. While its effects are far reaching, it is particularly impactful on those who lovingly and tirelessly accept the role as ‘caregiver’.

That is why the Bakersfield Association assembled a passionate group of REALTORS® and their affiliate partners who pledged themselves to join in the fight to help save lives of those battling this devastating disease. This passionate group became our own team named “Bringing Home the Cure”.

Their mission is bold and determined: to raise funds to help find a cure to defeat cancer – once and for all! Their means of raising funds: a premier, multifaceted Wine Tasting and Auction The most Event. Our powerful weapon beneficiaries: on earth is the The American Cancer Society human soul on fire!

–Field Marshal Ferdinand Foch Relay for Life and the Kern County Cancer Fund. Both of these charities serve a vital part in helping cancer patients in Kern County and all those who remain hope-filled that cancer will one day be crushed.

On March 3rd, our team hosted their Fourth Annual “Bringing Home the Cure’ Wine Tasting and Auction; but, this year was a little different! Our theme was ‘Wines from Around the World’, and also added was a great selection of craft beers from right here in the United States.

This tasty event was fabulous and a huge success, raising nearly $90,000… and growing!

Our goal for this year is $100,000 and we are confident we will get there!

We want to express our heartfelt gratitude to our many sponsors, donors and volunteers whose outpouring of generosity and tireless efforts have helped

The Mortgage House celebrate their 20th anniversary by giving $20,000 to Team Bringing Home the Cure. (Photo l to r) Linda Jay, Michele Cooper, Randy Schell (the Mortgage House), Natalie Panelli (the Mortgage House), Debbie Roberson, Ronda Newport and Bill Redmond. Photo far right: Mortgage House check presentation at our Wine and Auction Fundraiser.

Thank you to our 2016 Team “Bringing Home the Cure”

Back row (l to r): Mike Grigg, Connie Waddell, Bill Redmond, Tammi Jo Marchand, Jeannine Phillips, Tracy Frith, Callee Garner, Athena Collup, Jenny McLean, Cindy Kiser, Suzi Beaty, Jennifer Woods and Barbara Bogner. Seated (l to r): Barbara Wells, Michele Cooper, Ronda Newport, Debi Roberson, Chereyl Nunn and Kim Plivelich. Not pictured: Anna Albiar, Patti Brubaker, Judy Camp, Candice Criswell, Shari George, Janete Ramsey, Linda Jay, Martha Johnson, Katlin Rudnick, Darion Nunn, Sheryl Gallion and Theresa Olson

make this signature event such a fantastic success.

Your participation and support will make a difference! If you were not able to attend but would like to help us reach our goal, we’d love to hear from you!

With deep gratitude, Ronda Newport, Co-Chair Debi Roberson, Co-Chair Bill Redmond, 2016 President Linda Jay, CEO BAKERSFIELD REALTOR® MAGAZINE

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BROKERAGE

NEGOTIATING SKILLS

DO YOUR ASSOCIATES HAVE THE NO. 1 SKILL?

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Teach your agents how to negotiate LARRY KENDALL | CHAIRMAN OF THE GROUP, INC. AND AUTHOR OF NINJA SELLING

Have you seen the latest National Association of Realtors® (NAR) survey? Eighty-nine percent of buyers and sellers rate negotiation as the key skill they are looking for in selecting a real estate professional. This high percentage may be related to the shortage of inventory and multiple contract negotiations in many markets. How are your team’s negotiation skills? What can you do to help them perfect this skill?

Start by helping your associates understand the five basic negotiation points of a real estate contract. Most real estate contracts are lengthy.

All the pages of legalese are designed to help buyers and sellers agree on just five negotiating points. Here they are:

offer to conventional financing to be more competitive?

What about the earnest money? In some markets, a winning strategy is to release all or a portion of the earnest money to the seller upon contract acceptance. This strategy is effective in markets with a history of buyers making offers on multiple properties, then deciding which one they want and using the inspection clause to walk away from the others.

3. Dates.

Closing and possession dates can often be the most important negotiating point of all. Sellers don’t like to make a double move.

Sometimes they want time to find another home. Buyers who match their closing and possession dates to the seller’s goals are more likely to win. Often a closing with a seller rent back (sometimes at reduced or free rent) for up to 60 days makes the difference.

1. Price.

Are you in a seller’s market with multiple offers? Will buyers need to offer full price or above to compete for this property? What about a price escalation clause?

4. Inclusions and exclusions.

Remember the buyer’s markets in the 1980s where the price sometimes included the cars in the garage? Fortunately, those days are over.

However, in many resort markets, the price may include the furnishings.

5. Contingencies.

2. Terms.

Cash is king, as long as it can be verified.

Conventional loans are next in line, followed

by FHA and VA. If you are in a competitive seller’s market, and your buyer is a low-down payment buyer (FHA or VA), can he or she get help from a family member to raise his or her

situation. The two biggest contingencies generally involve the loan and the inspection.

A buyer who is pre-approved (not just pre-qualified) has an advantage. However, the property will still need to appraise. Do the buyers have enough extra cash that they can agree to buy the property so long as it appraises for a minimum amount? If so, they can modify the appraisal clause unless they are buying FHA or VA. On the inspection clause, if the listing real estate professional had the property pre-inspected by a reputable inspector, and the seller is also offering a Homeowner’s Warranty, would the buyer be willing to accept these inspections and waive the inspection clause? If the buyer is competing for a property where contracts will be collected and then presented to the seller at one time several days later, is there time for the buyer to get his or her inspector into the property and have an inspection done BEFORE he or she writes the contract? If the property inspects, they can write an offer waiving the inspection clause.

The strategies mentioned here can be used by buyers to compete in a multiple offer market. They can also be used by sellers to request concessions from buyers when they receive multiple offers. These strategies are generally unnecessary in buyers’ markets and may vary by state law.

Regardless of the market, your associates should be familiar with the five negotiating points. We recommend you have them rehearse their strategies and share best practices, so they become master negotiators.

After all, it is the No. 1 skill for which customers are looking.

This article reprinted with the permission of RealTrends Inc. Copyright 2016

This one is a biggie. The cleaner the buyers can make their contract (and still be comfortable); the more likely they are to win in a multiple offer

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time will be spent combing through leads that come off the web? Spending countless hours per week working on a pending file is an activity… but is this time going to help you generate more income?

Productive activities include previewing property daily… high-impact prospecting daily… following-up closely with any lead you have daily… pre-qualifying every buyer and seller every time, no exceptions… going on showing and listing presentations with qualified buyers and sellers… and negotiating contracts.

Seventy-five percent (75%) of your workday must be committed to these four activities if you want to be productive in the calendar year 2016.

MINDSET. When people talk about mindset, a wide variety of thoughts occur. I’m not sure any of us can really define what mindset is in this business; however, we do know that there is some ability to control what goes on inside of our head, which controls not only our production, but our overall results in life. So the question then becomes, how do we develop a stronger mindset?

Real estate sales is unique because it fits into the category of sales along with many other sales business or professions… there are certain things you can count on. You can count on the fact that as a sales person, you are going to be rejected non-stop every day for the rest of your sales career, this is simply a part of the sales business. In looking at the word mindset, we look at how you’re responding mentally to the rejection you receive. During the calendar year 2016 each of us has to work every day on accepting the following… yes, the business is down compared to previous years… yes, listings take longer to sell than ever before… yes, sellers are mad because prices are lower than they were 2-3 years ago… yes, the mortgage industry is a major cause of the problems we have today, and we have to live that… yes, agents, brokers and offices are going out of business faster than they ever had before… yes, you have to take even more listings than you ever imagined to get one sold… yes, it takes more skill in getting a listing and getting a price reduction to getting it sold… yes, it takes more discipline and determination to get a contract signed and get that contract sold than it has in the past…

Question… What is your attitude or mindset toward all of the statements we made in this paragraph?

Since we know that the ability to control what

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goes on in your head is directly related to the results we get, and since we know that the more positive the thoughts we hold the better chance we have, how do we maintain a positive, strong attitude or mindset when there is so much negativity in the business? Any of the following will help you strengthen your mindset. n Form or join a strong mastermind group n Role-play or practice scripts and dialogues an

hour a day n Find 3-4 accountability partners that you talk to daily to keep yourself on track n Find 5-6 inspirational books and write down key quotes that you carry around on 3x5 cards and read them 5-6 times a day n Write 2-3 affirmations that you can chant 3-4 times out loud a day n Start a healthy eating program immediately n Exercise 30-60 minutes every single day, n Be grateful that you are still in the business after 2015.

Put all of these to work if you want to make 2016 your best year ever.

WORK ETHIC. When the market was going straight up as it did from 1995 to 2005, almost anything you and I did that was even close to reasonable in terms of work ethic, resulted in income. This has dramatically changed. “Now putting in our time and effort” has become a critical part of the process.

I have never been an advocate of Realtors® working 24-7, nor have I been an advocate of agents giving customers their cell phone number, or being at buyers and sellers disposal 24 hours a day. Although, today if you and I are not willing to work in a positive manner, harder than we ever have before, we are probably not going to make it or achieve the goals we have set for 2016. Committing to putting in excessive hours, putting in excessive energy and putting in the time to maintain strong positive thoughts, is physically and mentally draining, but is absolutely critical to our succeeding at a high level this year. The stronger the work ethic, the better the results. The better the results, the more money we earn, which again quickly separates us from our competition.

MARKET STATS. The more successful the Agent was in 2015 the more successful the Agent will be in 2016. The better they understand the use of market statistics, which not only makes the agent’s job easier but more importantly, makes the decisionmaking process easier for buyers and sellers.

It’s absolutely imperative that every one of us knows how many homes are for sale in

our marketplace…how many months of standing inventory is available to buyers…what percentage of those homes that are for sale are short sales and repossessions…how many new listings are coming on the market monthly… how many sales are taking place monthly…and how many closings are taking place.

Not only do we have to know these stats, we also have to become experts at presenting them, not accepting any static from the seller except for a signature on a contract at the right price.

We cannot allow buyers and sellers to back us into a corner because they know more about the market than we do. The stats are the most honest measure of the business, and it’s up to us to back buyers and sellers into a comfortable corner where they can sign a contract because of our knowledge.

CONFIDENCE. As we stated earlier, “knowledge equals confidence and ignorance equals fear…” It is up to each one of us, individually, to do whatever it takes to build our confidence so we can go out on the street every day and be productive. Webster defines confidence as, “a belief in our ability to succeed.” That really does sum up the difference between a highly skilled productive real estate agent and that massive amount of agents in our industry that do little to nothing.

Earl Nightingale, writer of the greatest motivational book of all time, defines success as, “The progressive realization of a worthwhile goal or objective.” If I want to build my confidence, I need to have a solid foundation of scripts, dialogues, techniques and abilities along with well-defined, very specific, attainable goals. By having attainable goals in front of me at all times and working on them every day and seeing progress being made, monitoring these activities toward these goals daily and being held accountable to these goals, we develop stronger beliefs in ourself and what we can do, which builds our confidence. If we then add Earl Nightingale’s other great thought, “We become what we think about all day long” to this series of thoughts and we make sure that we have positive, strong thoughts in our head and we only allow storing positive thoughts in our head, we can quickly change ourselves from a complete lack of confidence to complete and total self-confidence. Work on this every day to improve your results.

I believe, scratch that, I know that if you master these skills you can withstand any market and be a huge success as a real estate professional. Have a great 2016, and remember to “Get Back Into the Box”.

PHISHING

EMAIL SCAMS targeting our INDUSTRY Scammers phish for mortgage closing costs COLLEEN TRESSLER | FEDERAL TRADE COMMISION

Buying a home is exciting. You saved for the down payment, scheduled the move, and are dreaming of planting new roots. Closing is right around the corner… unless a scammer gets your settlement fees first.

The Federal Trade Commission and the National Association of Realtors® are warning home buyers about an email and money wiring scam. Hackers have been breaking into some consumers’ and real estate professionals’ email accounts to get information about upcoming real estate transactions. After figuring out the closing dates, the hacker sends an email to the buyer, posing as the real estate professional or title company. The bogus email says there has been a last minute change to the wiring instructions, and tells the buyer to wire closing costs to a different account. But it’s the scammer’s account. If the buyer takes the bait, their bank account could be cleared out in a matter of minutes. Often, that’s money the buyer will never see again.

If you’re buying a home and get an email

with money-wiring instructions, STOP. Email is not a secure way to send financial information, and your real estate professional or title company should know that. If it’s a

Sophisticated Email Scammers phish for mortgage closing costs National Association of Realtors®

Criminals are hacking into the email accounts of real estate agents or other persons involved in a real estate transaction and using information gained from the hack to dupe a party into a fraudulent wire transfer. The hackers often send an email that appears to be from an individual legitimately involved in the transaction, informing the recipient, often the buyer, that there has been a last minute change to the wiring instructions. Following the new instructions, the recipient will wire funds directly to the hacker’s account, which will be cleared out in a matter of minutes.

The money is almost always lost forever.

The National Association of REALTORS® urges its members and state and local REALTOR® associations to be on high alert for email and online fraud.

phishing email, report it to the FTC.

Here are some ideas to help you avoid phishing scams: Don’t email financial information. It’s not secure.

If you’re giving your financial information on the web, make sure the site is secure. Look for a URL that begins with https (the “s” stands for secure). And, instead of clicking a link in an email to go to an organization’s site, look up the real URL and type in the web address yourself.

Be cautious about opening attachments and downloading files from emails, regardless of who sent them. These files can contain malware that can weaken your computer’s security.

Keep your operating system, browser, and security software up to date.

Learn more about protecting yourself from phishing and what to do if your email is hacked. If you gave your information to a scammer, visit IdentityTheft.gov.

For more information go to www.goo.gl/eOaX6q SOURCE: NATIONAL ASSOCIATION OF REALTORS®

BAKERSFIELD REALTOR® MAGAZINE

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WOOLGROWERS Affiliate Luncheon

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BAKERSFIELD REALTOR速 MAGAZINE

M

embers of The A Team!

Collectively, these individuals form a group of loyal, hard-working Affiliate members who serve the Association in a variety of ways.

Over a long period of time, they consistently: n Attend activities and events such as MLS Open Forum, Commercial Investment and more. n Volunteer their time and energy to support the Association’s programs and activities. n Promote Association activities to other members. n Contribute raffle items and door prizes, as well as sponsor various programs and special events.

For all their efforts, A Team Members earn these opportunities: n Featured in all issues of Bakersfield REALTOR® Magazine. n Complimentary advertising through The A Team contact list on the Association website. n Complimentary recognition on the Association Reception TV. n First opportunity to sponsor key events with sponsor banner.

If you’re interested in becoming a member of The A Team contact Barbara Wells, our Affiliate Chair!

THEATEAM SHERYL GALLION Ticor Title 661.342.7802

sgallion@ticortitle.com

mikegeorge@agapemtgco.com www.agapemtgco.com

SUZI BEATY

JANETTE RAMSEY

Fidelity National Home Warranty 661.477.3906

suzi.beaty@fnf.com

MICHELE COOPER

San Joaquin Valley Mortgage bwells@sjvalleymortgage.com 661.703.2227

MIKE GEORGE

Agape Mortgage 661.324.2427

Affiliate Vice Chair Karpe Real Estate Center 661.900.2358

karpe.com mcooper@sjvalleymortgage.com

Janette Ramsey Insurance 661.328.9250

Over the years we have developed a special partnership with our Affiliates in Action who have given so much to our members!

LISA HOOK-ESTES

The Mortgage House 661.832.4100

lhook-estes@themortgagehouse.com www.themortgagehouse.com

CHEREYL NUNN

Wells Fargo Home Mortgage 661.664.5300

janette@jramseyinsurance.com www.jramseyinsurance.com

chereyl.a.nunn@wellsfargo.com www.wfhm.com/loans/chereyl-nunn

JEFF AGUILERA

CANDICE CRISWELL

jeffrey.aguilera@bankofamerica.com mortgage.bankofamerica.com/ jeffreyaguilera

candice.criswell@homestreet.com

Bank of America Home Loans 661.282.4677

HomeStreet Bank 661.489.6272

You can be a part of The A Team too!

Call Barbara Wells at 661.703.2227 for more information BAKERSFIELD REALTOR® MAGAZINE

25

LEADERSHIP

SUCCESSION PLANNING as a business tool There are a great many people who comment that the difference in the ages of real estate agents and the average age of buyers is vast, and likely causing problems, or perhaps will cause problems. While we don’t subscribe to that theory (the age difference 30 years ago was likely the same), we do know that there is an entire generation of both agents and brokers who are thinking about “what’s next”? They are north of 55 years old, have accumulated some net worth, and they are trying to figure out what is next with their careers, businesses, and lives.

COUNSELING AGENTS AND TEAMS While most of our work has been with brokerowners for the last 29 years, we are increasingly counseling agents and teams about the same topic. How does an owner of a realty business establish a plan, other than a sale, for his or her business? What are the keys to successfully establishing a succession plan?

We would offer this. First, don’t try and replace yourself with yourself. In all likelihood,

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BAKERSFIELD REALTOR® MAGAZINE

you have grown your business with your skills, background, relationships and view of the world. As we have previously said, it is difficult to replace an iconic founder with someone just like him. So, don’t go down that path.

CONSIDER FUTURE SKILLS Instead, consider what skills are needed to continue to drive your organization forward. Can that be found in one person or a team? Some firms have been successful using personality assessment tests to line up the people skills of potential successors as a starting point.

Selecting several people in your organization who might have the skills to lead your business is also key. It may take more than one person to fill the roles the founder has provided. The next steps are investing your time in educating this team about the business and the environment, testing their ability to make decisions and be responsible and, most importantly, testing their ability to work as part of a team to achieve mutual goals.

MEASURE RESULTS Lastly, whether you are building a team as part of a succession plan or to strengthen your company, measure results rigorously.

We’ve found that it doesn’t mean only measuring financial or operating results, but also measuring how well these potential future leaders work together and support each other. As Patrick Lencioni said in his book, “The Five Dysfunctions of a Team,” it is the attention to results and not egos and status that marks a truly effective team.

Thinking about how you would build a future team should be the goal of a business owner whether he intends to sell or not.

One of the biggest weaknesses in residential brokerage is the lack of investment in the leadership and business skills of the management teams of brokerage firms. The important thing is to invest your personal time in doing so.

This article reprinted with the permission of RealTrends Inc. Copyright 2016

National Grant in honor of the

BOYS & GIRLS CLUB KIM SCHAEFER GOVERNMENT AFFAIRS DIRECTOR

The Bakersfield Association of REALTORS® Receives National Grant for Expanding Housing Opportunities In honor of National Boys & Girls Clubs Week, the Bakersfield Association of REALTORS® has announced that it has received a grant to work in partnership with Boys & Girls Clubs of Kern County in an effort to strengthen the community and support the community’s youth.

The Bakersfield Association of REALTORS® (in partnership with Boys & Girls Clubs of Kern County) has announced it was awarded a $5,000 grant from the National Association of REALTORS®’ Housing Opportunity Program to support activities which create and expand affordable housing opportunities. The grant will be used to educate high school students participating in programs through the Boys & Girls Clubs of Kern County about homeownership and what it takes to own a home.

“REALTORS® build communities and work

hard to make housing affordable to all who are willing and able to become homeowners,” said Bill Redmond, 2016 President of the Bakersfield Association of REALTORS®. “This grant will help address housing opportunities in our community for youth, as well identify and promote solutions that address affordable housing. The program will help young people understand that anything is possible and that homeownership can become an attainable dream for many hard working American families across the country.”

“We are so excited to be partnering with the Bakersfield Association of REALTORS® to bring education on homeownership to our teen Club members and their families as part of our workforce training and summer intern program. We want our Club members to know that home ownership is attainable,” said Zane Smith, Executive Director, Boys & Girls Clubs of Kern County.

NAR’s Housing Opportunity Grants were established in 2006. Individual grants are awarded ten times per year. During the January 2016 cycle, NAR approved over

$42,000 in funding to nine REALTOR® Associations across the country. Since the program’s inception, more than 400 grants (totaling over $1.4 million) have been awarded.

The grants support a wide range of housing opportunity activities, including housing symposia; home buyer education or housing fairs; counseling and financial literacy efforts; down payment or closing cost financial assistance programs; housing needs studies; and REALTOR® affordable housing education.

About Boys & Girls Clubs of Kern County The Boys & Girls Clubs of Kern County have 3 Clubs and 59 school sites in Bakersfield, Arvin, Lamont, and Frazier Park. Overall, there are 7,200 youth daily that are affected in a positive way through their involvement with the Boys & Girls Clubs of Kern County. Mission: To enable all young people, especially those who need us most, to reach their full potential as productive, caring, responsible citizens. For more information, visit www.bgclubsofkerncounty.org or call 661-325-3730.

BAKERSFIELD REALTOR® MAGAZINE

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Membership Benefits How to get the most out of your dues…

With your commitment to our Association, we offer various REALTOR® benefits tailored just for you.

EDUCATION Educational programs, products and services to enhance your knowledge and skills for greater success in your real estate business.

Many are offered at no cost or at a reduced rate for members; including, classes, seminars and hands-on user workshops covering relevant, up-to-date topics and technologies for the real estate industry. REALTOR® designation classes are also offered.

ZIPFORMS® C.A.R. develops new standard real estate forms in response to legislative and court decisions. Each form is carefully reviewed by experienced REALTORS® and real estate attorneys, available online through zipForms®.

ADVOCACY EFFORTS AT NATIONAL, STATE AND LOCAL LEVELS OF GOVERNMENT n Your dues support REALTOR® offices in both Sacramento and Washington, D.C. which review thousands of bills on all government levels n Our Government Affairs Director lobbies our local government agencies on issues that protect the real estate industry and private property rights.

LEGAL SERVICES An exclusive member service, C.A.R. Legal “Hotline” responds to legal inquiries from REALTORS®. You have free access to this service with your dues investment.

OMBUDSMAN SERVICES As a REALTOR® you have access to our Association’s Ombudsman who provides

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BAKERSFIELD REALTOR® MAGAZINE

counsel, advice and education to REALTORS® and members of the public on our professional standards, monetary disputes prior to arbitration, as well as formal arbitration and Code of Ethics complaint policies and procedures.

LEGAL Q&As Available to members is a full range of legal opinions pertinent to the real estate industry. Developed by C.A.R.’s attorneys and available online at www.car.org.

ETHICS & PROFESSIONAL STANDARDS REALTOR® Code of Ethics is designed to instill the highest standards of professionalism in the industry and to elevate the image of REALTORS® in our community.

MLS AND TECHNICAL SUPPORT Our MLS manager provides support and training on MLS issues relative to recent developments and trends.

COMMUNITY REALTOR® IMAGE A public relations program aimed at serving the community and elevating the REALTOR® image through fundraisers for local charities and advertising in various publications. realtor.com® PROFILE A realtor.com® marketing profile to you at no additional cost. Claim yours today at www.goo.gl/A01Zul REAL ESTATE STORE A convenient location to purchase many of the supplies you need for your business.

Prices are discounted for members, and charges can be conveniently made to your Association account.

C.A.R. MAGAZINE Published by the California Association of REALTORS®, C.A.R Magazine brings you important information on industry trends and new techniques geared towards success.

REALTOR® MAGAZINE Published by the National Association of REALTORS® and delivered to its members, REALTOR® Magazine is filled with news and Information designed to provide insights on how to be successful in the current complex marketplace.

BAKERSFIELD REALTOR® MAGAZINE Published by the Bakersfield Association of REALTORS® and available to its members.

Bakersfield REALTOR® Magazine is filled with news and local information designed to provide insights on how to be successful in our local market.

FAIR HOUSING PARTNERSHIP Implementation of the “Fair Housing Partnership” between HUD and REALTORS® available to members, facilitating their qualification to participate in HUD sales and demonstrating a commitment to fair housing practices.

GROUP INSURANCE As a REALTOR® member, C.A.R. offers a wide array of group insurance plans, including errors and omissions insurance, with flexible premiums and discounts.

MEMBERSHIP DISCOUNTS Available at participating retailers through the group buying power of the NAR and C.A.R. LOCAL STAFF SUPPORT Professionals serving professionals. Our professional staff is here to support you and your business.

SUCCESS

Welcome, New Members!

Your journey as a REALTOR® has just begun in making a positive impact in the lives of families in our community

new realtors ®

FEBRUARY 2016

Lori Ambrose, Bolich Realty, Inc; Megan Anderson, Keller Williams Realty; Dhanwant Brar, Hero Real Estate, Inc; Ronnie Carter Jr., Greenstone REALTORS®; Hannah Chay-Som, Miramar International-Downtown; Dalia Beckman, Watson Realty ERA; Murad Darwish, Sierra Central Real Estate; Anthony Fletcher, Keller Williams Realty; Callee Garner, Watson Realty ERA; Taj Garrett, Changing Places Real Estate; Sonja Garza, Magic Real Estate; Kristina Gilbert, Portfolio Properties; Raul Junior Jimenez, Magic Real Estate; Mathew Judson, Keller Williams Realty; Karin Magar, Premier Realty; Kimberly Van Noort, Coldwell Banker Preferred-Ming; Lewis Kootstra, Miramar International-Downtown; Carrie Lack, My Realty; Laurie Basaldua, Magic Real Estate; Kenneth Lewis, Tholco Real Estate Group, Inc; Dylan Logan, Keller Williams Realty; Natanya Moreno, Keller Williams Realty; Jamie Patterson, Coldwell Banker Preferred, Ming; Robert Rodriguez, Changing Places Real Estate; Celso Javier Sanchez, Hero Real Estate, Inc; Lana Sanchez, Tobias Real Estate; Harpreet Singh, Bakersfield Real Estate Professionals; Laurie Slate, Tobias Real Estate; Peter Thorne, Cal Pro Real Estate; Jaimie Van Boening, Tobias Real Estate; Jennifer Woods, Tobias Real Estate; Peter A. Yackley, Watson Realty ERA; Jesse Zepeda Garcia, Tholco Real Estate Group, Inc

new realtors ®

MARCH 2016

Martin Alsup, Miramar International; Jose Arellano, Golden Valley Real Estate; April Baldner, Coldwell Banker Preferred-CO; Noel Carter, Keller Williams Realty; Tammy Clegg, Coldwell Banker Preferred; Mark Clemmer, Clemmer and Company Real Estate; Nicholas Cushman, West Valley Real Estate; Bridget Daugherty, Miramar International - Mill Rock; Jordan Garcia, New Generation Real Estate Group; Donyell Gomez, Premier Realty; Rodney Hubbard, RE/MAX Golden Empire; Olivia Marshall, Watson Realty ERA; Christian Meza, Miramar International - Haggin Oaks; Colton Nichelson, Platinum Real Estate, Inc; Francisco Perez, Platinum Real Estate, Inc; Syed Rizvi, Tholco Real Estate Group, Inc; Sergio Salinas, Dream Home Realty; Michelle Trivitt, Tholco Real Estate Group, Inc; Geronimo Vargas Jr, Santa Cruz Realty; Valerie Villalovos, Coldwell Banker Preferred, Ming; Breanna Young, West Valley Real Estate; Matthew Edmondson, Premier Realty; Marcie Crytzer, Keller Williams Realty (Tehachapi AOR) BAKERSFIELD REALTOR® MAGAZINE

29

STATEOFTHE

HOUSING MARKET

2015 Compared to 2016

by MLS Area

JANUARY 2016 All Areas January January

FEBRUARY 2016 All Areas

January 2016 January 2016

2016 2015 2015 2016

%%Year % % Year Year over over Year Year Yearover overYear Year 2015 2015 Change Change Change Change

February February

February 2016 February 2016

2016 2015 2015 2016

Active Active

Active Active

1,805 1,805

1,805 1,616 1,616 1,805

1,616 11.7% 11.7% 1,616

11.7% Active 11.7% Active

Active Active

1,885 1,885

1,885 1,611 1,611 1,885

Contingent Contingent

Contingent Contingent

211 211

211 205 211205

205 2.9% 2052.9%

2.9% Contingent 2.9% Contingent

Contingent Contingent

243 243

243 221 243221

Pending Pending

Pending Pending

892 892

892 802 892802

802 11.2% 80211.2%

11.2% Pending 11.2% Pending

Pending Pending

946 946

946 924 946924

Sold Sold

Sold Sold

507 507

507 452 507452

452 12.2% 45212.2%

12.2% Sold 12.2% Sold

Sold Sold

497 497

497 440 497440

% %%Year % Year Year over over Year Year Yearover overYear Year 2015 2015 Change Change Change Change 1,611 1,611 17.0% 17.0% 221 22110.0% 10.0%

17.0% 17.0% 10.0% 10.0%

924 9242.4% 2.4% 440 44013.0% 13.0%

13.0% 13.0%

Total Total Closed $111,564,931 $90,583,571 23.2% Total Volume Volume Closed Closed $111,564,931 $90,583,571 $90,583,571 23.2% TotalVolume Volume$111,564,931 Closed $111,564,931 $90,583,571

23.2% Total Closed $110,246,346 $90,874,374 Total Volume Volume Closed Closed $110,246,346 $90,874,374 $90,874,374 23.2% Total TotalVolume Volume$110,246,346 Closed $110,246,346 $90,874,374 21.3% 21.3%

21.3% 21.3%

Median Price ** Sales $210,000 ** Median Sales SalesMedian Price $210,000 Median SalesPrice Price

10.5% Price ** Sales $218,050 ** Median Sales SalesMedian Price $218,050 10.5% Median Median SalesPrice Price

Average *Average DOM Average DOM DOMAverage * DOM**

49 49

$210,000 $190,000 $190,000 $210,000 49 51 49 51

$190,000 10.5% 10.5% $190,000 51 -3.9% 51-3.9%

-3.9% *Average DOM Average DOM DOMAverage * -3.9% Average DOM**

Bakersfield January January

50 50

$218,050 $210,000 $210,000 $218,050 50 54 50 54

$210,000 $210,000 3.8% 3.8% 54 54-7.4% -7.4%

2.4% 2.4%

3.8% 3.8% -7.4% -7.4%

Bakersfield

January 2016 January 2016

19.0% 19.0%

Median Price ** Sales $215,000 ** Median Sales SalesMedian Price $215,000 Median SalesPrice Price

10.3% Price ** Sales $220,000 ** Median Sales SalesMedian Price $220,000 10.3% Median Median SalesPrice Price

Average *Average DOM Average DOM DOMAverage * DOM**

48 48

* Figures from Single Family Homes Only.

Statistics were run on March 31, 2016. ** Single Single Single Family Family**Only Only SingleFamily FamilyOnly Only

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BAKERSFIELD REALTOR速 MAGAZINE

48 51 48 51

51 -5.9% 51-5.9%

Sold Sold

-5.9% *Average DOM Average DOM DOMAverage * -5.9% Average DOM**

431 431

51 51

431 382 431382

% %%Year % Year Year over over Year Year Yearover overYear Year 2015 2015 Change Change Change Change 12.8% 12.8%

$195,000 10.3% 10.3% $195,000

11.1% Sold 11.1% Sold

2016 2015 2015 2016

382 12.8% 38212.8%

$215,000 $195,000 $195,000 $215,000

387 11.1% 38711.1%

February 2016 February 2016

19.9% Total $97,246,146 $97,246,146 $81,742,754 19.0% Total Volume Volume Closed Closed $97,246,146 $81,742,754 $81,742,754 19.0% 19.9% Total TotalVolume VolumeClosed Closed $97,246,146 $81,742,754

Sold Sold

430 387 430387

February February

Total Total $95,133,688 $95,133,688 $79,346,404 19.9% Total Volume Volume Closed Closed $95,133,688 $79,346,404 $79,346,404 19.9% TotalVolume VolumeClosed Closed $95,133,688 $79,346,404

Sold Sold

430 430

2016 2015 2015 2016

% %%Year % Year Year over over Year Year Yearover overYear Year 2015 2015 Change Change Change Change

$220,000 $217,500 $217,500 $220,000 51 54 51 54

$217,500 1.1% 1.1% $217,500

1.1% 1.1%

54 -5.6% 54-5.6%

-5.6% -5.6%

Bakersfield uses the following Zip Codes: 93301, 93302, 93303, 93304, 93305, 93306, 93307, 93308, 93309, 93310, 93311, 93312, 93313 93314.

2016 YEAR-TO-DATE STATS Area

Dollar Value

# Sold

Average Sold Price*

% of List Price*

DOM*

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015

10

56

50

$8,515,160

$7,232,900

$159,271

$149,998

42

52

96.16

96.62

21

26

36

$2,384,314

$3,072,422

$93,305

$90,076

65

76

96.86

95.10

22

45

44

$6,962,241

$7,202,100

$154,716

$165,200

33

53

98.55

98.49

23

4

2

$929,000

$769,000

$284,500

$384,500

58

33

96.45

93.89

31

43

61

$5,725,790

$7,253,826

$133,233

$118,915

42

57

96.29

98.47

32

108

83

$19,696,526

$13,363,050

$186,355

$170,089

54

39

96.81

97.69

33

36

47

$8,942,421

$10,632,575

$254,726

$231,224

45

68

99.78

97.61

34

20

13

$6,311,400

$3,420,500

$315,570

$277,958

56

86

96.92

96.94

41

32

38

$3,993,150

$3,968,518

$124,786

$104,435

48

44

96.98

94.68

42

23

24

$3,966,600

$3,543,672

$172,461

$153,551

48

48

98.26

98.70

43

2

0

$195,000

$0

$97,500

$0

30

0

97.50

0.00

51

115

105

$16,900,762

$13,317,244

$151,702

$144,067

36

45

98.52

98.11

52

285

272

$56,969,951

$51,618,611

$211,683

$202,342

47

44

98.52

98.37

53

161

137

$51,167,194

$42,835,100

$322,342

$315,556

51

44

97.61

97.64

54

2

2

$590,990

$988,000

$295,495

$494,000

51

81

100.68

99.90

61

44

37

$11,438,625

$9,436,200

$259,969

$255,032

64

55

98.40

97.75

62

210

205

$60,712,933

$56,850,507

$289,109

$278,547

54

55

98.07

97.89

63

73

76

$24,116,036

$24,727,738

$330,357

$329,057

54

49

97.05

98.58

64

4

3

$1,793,000

$1,073,429

$448,250

$357,810

75

35

94.42

98.17

80

25

23

$6,097,479

$5,504,432

$258,447

$248,611

58

47

98.67

96.47

81

2

1

$192,000

$250,000

$96,000

$250,000

421

49

89.32

89.61

82

0

7

$0

$588,400

$0

$84,057

0

39

0.00

97.13

83

13

9

$1,910,900

$1,357,025

$146,992

$150,781

55

78

98.10

94.81

84

1

0

$595,000

$0

$595,000

$0

163

0

86.36

0.00

85

3

3

$1,240,000

$516,500

$413,333

$188,750

97

71

94.73

99.34

91

14

11

$1,865,190

$1,403,000

$133,228

$127,545

39

27

94.70

97.75

92

1

0

$175,000

$0

$175,000

$0

41

0

97.77

0.00

93

1

2

$72,000

$295,300

$72,000

$147,650

64

73

96.64

94.04

94

2

8

$360,000

$1,598,000

$230,000

$181,250

58

44

94.85

94.16

95

38

59

$7,207,350

$9,849,704

$189,667

$169,391

54

40

98.48

100.79

96

42

31

$4,362,779

$3,584,920

$104,159

$122,960

61

81

94.89

97.05

98

37

38

$7,018,700

$6,209,495

$189,695

$163,408

50

29

96.57

99.88

99

32

34

$11,078,895

$7,673,325

$374,175

$240,781

43

57

96.41

97.53

* Figures from Single Family Homes Only.

Statistics were run on March 31, 2016.

BAKERSFIELD REALTOR速 MAGAZINE

31

REAAC

REAAC raises fraud AWARENESS contribution by

SCOTT TOBIAS In the summer of 2012, the President of the California Association of REALTORS®, LeFrancis Arnold, met with Kern County District Attorney Lisa Green and representatives of the Bakersfield Association of REALTORS® at a foreclosed property in East Bakersfield for a press conference. The purpose was to discuss a subject that was on the minds of both REALTORS® and the public: Real Estate Fraud. As President of the Association that year, I had previously met with our Government Affairs Director Donna Carpenter, CEO Linda Jay, and members of the Ventura Association of REALTORS® who had formed an anti-fraud group. Linda, Donna and I met once more with Lisa Green at the Association office to discuss the possibility of creating an anti-fraud advisory committee in Bakersfield. Through subsequent meetings with community and real estate leaders, as well as law enforcement agencies, REAAC (Real Estate

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BAKERSFIELD REALTOR® MAGAZINE

Anti-Fraud Advisory Coalition) was born.

The mission of REAAC was set “to prevent, detect and report real estate fraud” through both education and collaboration with law enforcement agencies. Education has been directed toward both real estate professionals and the general public. Public outreach efforts have included an anti-fraud forum and speaking engagements at local service clubs and organizations. REAAC’s outreach has included the Better Business Bureau, local appraisers, lenders, title companies and REALTORS®. Law enforcement agencies involved with REAAC are the Kern County District Attorney’s Office, Bakersfield Police Department, Kern County Sheriff’s Department, Local FBI Agency and the California Bureau of Real Estate.

In March of 2014 with the help of new Government Affairs Director Kim Schaeffer, REAAC and the District Attorney’s Office were able to take Senate Bill 1342 (authorizing counties to raise recording fees on certain

real estate documents from $2 to $10) to the Board of Supervisors for approval. This had a potential fiscal impact of over $850,000 a year - all allocated to combat real estate fraud by bolstering budgets that will allow law enforcement agencies to staff investigators and other needed personnel.

Funding from the Bakersfield Police Department through these fees has allowed REAAC to further increase public awareness of potential real estate scams, as well as education on how to prevent being a victim, through a media campaign in both English and Spanish.

Members of REAAC now meet on a quarterly basis to discuss current fraud cases and ideas for increasing awareness.

This network with Real Estate Industry professionals and law enforcement personnel has been instrumental in identifying solutions to squatter issues and other illegal activities involving real estate.

For more information see our website at Reaackern.org.

ONLINE MARKETING

MARKET your business with FACEBOOK Social media marketing is vital to your brokerage’s success.

BY PAUL SALLEY | MARKETING STRATEGIST

Want to recruit more agents? Get your brokerage’s listings noticed? Then social media, particularly Facebook Marketing, should be considered a priority in the overall marketing plan for your brokerage.

There is no other site that is viewed as frequently with as much user profile data as Facebook. Facebook allows you to segment and pinpoint your marketing efforts to a select audience. Because Facebook pulls marketing information from user profiles, anything included in that profile is fair game to use as a marketing filter. You may drill down to job titles, interests, geography and more when choosing who you want your ad to reach. Also, by choosing to advertise on behalf of your brokerages’ own Facebook Page, you can place an ad in an individual’s newsfeed. The benefit to this over the traditional right-hand column ads is obvious—your ad is viewed without the distraction of other ads, or content, around it.

GETTING STARTED To get started on Facebook, ensure that your brokerage has its own Facebook Business Page,

then go to business.facebook.com, where the ads manager is located. This is where you may create and edit ads and determine the audience for those ads. In addition to creating your ads in the Ads Manager, you’ll also assign a budget associated with your ad campaign.

When advertising with Facebook, you set a daily budget. I recommend starting with $7 to $15 a day and run this ad continuously for four weeks. With Facebook, you may send your target audience or potential leads to your website, Facebook Page, Mobile App or other designated conversion target. To ensure maximum efficiency, make sure you have a solid lead capture strategy in place on the landing or home page to which your audience will be directed.

TIPS To maximize the success of your ads, try different campaigns targeted at specific audiences. For example, try a new homebuyer campaign with a targeted audience of 25- to 35-year-olds with a relationship status of not single who live in a certain location. Or, for a campaign aimed at recruiting, target those who have an interest in real estate. Another example of a successful ad is to target those who work

for large employers of the area. Rotate these highly targeted ad campaigns so they run in short, four to six-week bursts and compare which performed the best to replicate for the future.

When creating the imagery and text for your Facebook Ads, speak to the lifestyle your area provides. Use interesting photos of a specific area rather than just house images and a lot of text. People love seeing interesting photos of things to do and places to visit. This strategy also coincides with the reason users are on Facebook in the first place, as an escape from the day and to be entertained.

While setting up and maintaining these campaigns takes time and continual maintenance, the pay off in web traffic and number of leads is well worth it. You will experience an exponential return on investment. This is especially true when comparing Facebook Advertising to traditional print advertising, as a potential lead can take action immediately on his or her computer or device while the ad and your brokerage remain top of mind.

This article reprinted with the permission of RealTrends Inc. Copyright 2016 BAKERSFIELD REALTOR® MAGAZINE

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HOUSING SALES

HOUSING market REPORT JANUARY HOUSING NUMBERS UNIT SALES GROWTH Unit sales up strongly in January with a gain of 9.2 percent over the same time last year.

The REAL Trends Housing Market Report for January 2016 shows that housing sales increased 9.2 percent from the same month a year ago. The year-over-year gain is the strongest year-over-year increase since June 2015. The Northeast led the way with a 17.8 percent increase.

“January housing sales continued the increased pace of rising sales recorded in the last two months of 2015. The last two months of 2015, and now January home sales, have risen on a year-over-year basis faster than any month since last spring,” said Steve Murray, editor of the REAL Trends Housing Market Report. “The Northeast region had the strongest showing with unit sales up 17.8 percent. Each region showed increased strength indicating that the housing market is

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BAKERSFIELD REALTOR® MAGAZINE

heading into the new year in solid shape,” he added.

The annualized rate of new and existing home sales was 6.210 million which was up strongly from the 5.687 million rate of home sales recorded in January 2015. This was also the strongest rate of unit sales since June 2015.

Housing prices rose an average of 2.5 percent from January 2015 indicating that home sales and average prices are rising in tandem and above the average for the last six months of 2015.

“The market appears to be stronger than anticipated and has shrugged off other negative news such as the decline in equity markets and the slower rate of foreign purchases of homes,” said Murray.

Housing unit sales for January 2016 increased 9.2 percent, up from the December 2015 results. Unit sales were up 17.8 percent in the Northeast, the best performance in all regions. Sales in the Midwest region were up

13.2 percent, the West saw an increase of 6.6 percent, and the South region had an increase of 5.6 percent.

The average price of homes sold in January 2016 in the South region increased by 4.3 percent, the best result in the nation. The Midwest saw average prices increase 4.0 percent, average prices in the West were up 2.2 percent while the Northeast experienced a decline in the average price of homes sold with prices dropping 1.1 percent.

“We now expect that housing unit sales increases will continue to be higher in 2016 than thought earlier this past year. Most forecasts believe that housing unit sales will increase 3 to 5 percent for all of 2016 and that average prices will increase 3 to 4 percent.

With the recent strength in housing sales both of those may be on the low side of what may happen in 2016.”

This article reprinted with the permission of RealTrends Inc. Copyright 2016

BAKERSFIELD ASSOCIATION OF REALTORS®

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