REALTOR® Magazine August September 2015 by Bakersfield Association of REALTORS®

AUGUST/SEPTEMBER 2015

In giving we receive

Give more… Get more in life!

Fair Housing – Arts Contest

R.Gov – Kevin McCarthy

Fundraiser – Wine Tasting

Student Scholarships

Education – Career Booster

Attendance & Reception

Fair Housing

Golden Empire Gleaners

INSIDE Committees

Make a difference in the lives of others

W E’RE

MAKI NG

Safety Tips

Every REALTOR® Needs to know how to stay safe

OUR

Veterans

REALTORS® on the front line of homeownership

C O M M U N IT Y

B E T T E R

Digital Strategies Ways to generate more leads in your business

PL AC E

L IVE

GOLFTOURNAMENT

Team Registration is Open on Date?... Mark your calendar!

{

100 AYER PER PL

Tournament proceeds benefit the Wounded Heroes Fund and the Ronald McDonald House

}

5 4 T H

A N N U A L

GOLF TOURNAMENT

Get in the swing of things!

The Links, Riverlakes Ranch Golf Course

If you’d like to participate, please contact David Knoeb at 331-3900 or Linda Marie at 635-2300.

GOLF TOURNAMENT DATE: OCTOBER 23, 2015. TIME: 8AM

Homeownership Matters You’ re j us t on e s tep away from p rotec ting your livelih ood!

REALTOR ACTION FUND ®

make a difference — CONTRIBUTE TODAY! M A K E Y O U R C O N T R I B U T I O N AT w w w . g o o . g l / a w n K x m

CONTENTS BAKERSFIELD REALTOR ® MAGAZINE

4 LETTER FROM PRESIDENT “Under all is one land”... the first line of the Preamble to the Code of Ethics.

6 DAVID COUCH

Fourth District Supervisor invites REALTORS® to participate in the discussion of groundwater management.

16 SNAPSHOTS

We’ve been busy and we have photos capturing moments, making memories and building relationships.

13 OMBUDSMAN

Joe Newton speaks about mediation and what it is and how it is about resolving differences.

23 TRID DEADLINE EXTENDED Consumer Financial Protection Bureau changes TRID proposed effective date to October 3rd.

RAPPORT 29 CREATE WITH YOUR CLIENTS

In order to be the person your clients turn to for home buying and selling, we’ve given you 3 steps you need to take.

32 HOUSING STATISTICS

It’s all in the numbers. Take a look at the state of the housing market.

ON THE COVER As REALTORS®, we are active in our community. Don’t miss out on an opportunity to give back, join a committee today! See pages 8-9

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

LETTER FROM THE PRESIDENT

“Under all is the land”

It’s a powerful phrase to REALTORS® – the first line of the Preamble to the Code of Ethics.

As a Founding Father, John Adams said: “The moment the idea is admitted into society that property is not as sacred as the law of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.” So if under all is the land, what’s under the land? Kern County is Agriculture and Oil. These two industries are the very foundation of our economy and our history. So what happens when these two worlds collide? There is currently an interesting debate regarding Surface rights and Mineral rights. As REALTORS®, how do we balance a desire to be environmentally responsible with our staunch belief in property rights? As this conversation gains momentum and serious decisions are being considered, I was taken back to my ‘Principals’ class where my instructor, Jack Haddad, tried to explain the “Bundle of Rights”. I decided to pull out my white binder, with all the yellow and pink highlights, asterisks and underlines. There I found it, details of the “bundle”. Possession is a fundamental right of property ownership. I own it; therefore, I decide who can be physically on my property and who cannot. Quiet enjoyment, my ownership is at the exclusion of all others. In other words, if I hold title to a property, no one else, except those chosen by me, have the right to own it. I have full control of what I own, if I want to build, I can build, if I don’t, it’s my choice. It’s mine to walk on, sit on, or just let it be. If I own it, I can sell it, lease it, or give it away. Even more, I can give all of it or just part of it. I control what I own, can sell what I choose, and share ownership with whom I select. Only ownership ensures these rights, and they extend beyond the buildings or improvements on the property to include what is

BAKERSFIELD REALTOR® MAGAZINE

beneath it and what is above it. A property owner can record restrictions, like the requirement to join a homeowner’s association. Others could grant easements which limit rights of access, and others may choose to sell the mineral rights. In fact, it’s very possible these decisions were made before the current owner ever purchased the property. How does that dynamic impact the current owner? What does the ownership of these rights allow? Most understand an HOA imposes rules and guidelines, and an easement allows access. What exactly do the Mineral rights allow? There are five elements: the right to use as much of the surface as is reasonably necessary to access the minerals; the right to further convey rights; the right to receive bonus consideration; the right to receive delay rentals; and, the right to receive royalties. As ownership entitles you to these rights, ownership is subject to them as well. Owning property means something, especially in California, where the state constitution establishes “acquiring, possessing and protecting property” as an inalienable right. A recent Supreme Court Justice stated it this way: “Property in a thing consists not merely in its ownership and possession, but in the unrestricted right of use, enjoyment, and disposal. Anything which destroys any of the elements of property, to that extent, destroys the property itself. The substantial value of property lies in its use. If the right of use be denied, the value of the property is annihilated and ownership is rendered a barren right.” The protection of the right of citizens to secure their ownership of property is a core value of REALTORS®. It’s an exciting, yet challenging, time to be in this place, in this industry. It’s a powerful time to be a REALTOR®, and it’s an opportune moment to participate in this vital conversation.

LETTER FROM THE CEO

110 Years ago,

the founding fathers of our Association made a bold and courageous move… and for a noble cause: they believed that by joining together, they could do something of vital significance that they could not achieve separately! The word collaboration comes from the Latin ‘collaborare’ – which means ‘to labor together’. The bold pioneers of our industry understood the importance of collaboration… of forming a partnership… a spirit of mutual respect and cooperation… to advance their mutual interests. They realized that by forming this special partnership, they had a greater likelihood of achieving their mission and increasing their reach.

will require work, humility, time, and resources to incorporate that perspective. At times, this will require checking one’s pride at the door… Collaboration begins with mutual understanding and respect.”

Caution!! Fragmentation may be hazardous

to your health!

I would love to have been present in that conference room to witness this historic event in the making! Fifteen strong businessmen; individuals with very specific views, ideas and goals, eager to share their thoughts! That must have been some board meeting! Do I believe it was a quick and easy process, that at the end of the day, everyone got what they wanted and they all experienced a kumbaya moment?? Not so much!

So what I do believe is that these fifteen men came together for a special purpose… mindful and respectful of their unique differences and ideas… they rolled up their sleeves and began the work set before them. The question is, has collaboration become just a fleeting concept or is it still a rock solid principle and tenet? My fear is that we have been and are becoming more and more fragmented in so many areas of our society. That fragmentation results in developing a mindset of selfsufficiency (ego, pride, arrogance) which in turn creates a loss of unity and cohesion, detachment and separation… it divides and weakens our influence and effectiveness. Perhaps it’s time for us to reflect and remember who we are as professionals and why we started on this journey over a century ago. Is our purpose still relevant to our profession today? Do our core values still carry a strength and significance worth fighting for? Caution!! Fragmentation may be hazardous to your health… the life and health of your organization!

Astronaut Ron Garan makes this important observation, “A partner’s different perspective is valuable, but the very fact that it is different means that it

That’s why I’m a proponent of collaboration. It’s not because working together feels good. If it felt good and the results were mediocre, then collaboration wouldn’t be worth the effort. Collaboration is valuable because it helps us transcend our individual limits and create something greater than ourselves. – Bob Sullo

2015 OFFICERS President Sheri Anthes Coldwell Banker, Preferred — Ming

President-Elect Bill Redmond Watson Realty ERA

Vice President Midge Jimerson Boydstun Realty Co. Inc. Secretary/Treasurer Athena Collup Miramar International — Mill Rock

2015 DIRECTORS Immediate Past President Theresa Olson Soper Homes Realty, Inc. Chief Executive Officer Linda Jay

Pam Epps Miramar International Truxtun

Brian Tuttle Coldwell Banker Preferred– Coffee

Scott Knoeb Frontier Real Estate Services

David Gay Tobias Real Estate

Wayland Louie RE/MAX Golden Empire

Ashley Weaver Karpe Real Estate Center

Derek Sprague Sprague Real Estate Group

Kevin Palla BAKERSFIELD REALTOR Broker

MAGAZINE

REALTORS® are invited to participate in the discussion of

Groundwater Management

he decisions we make regarding our local implementation of the state’s new Sustainable Groundwater Management Act (SGMA) will define what it means to live and work in the Central Valley for generations to come. Water is the catalyst for a range of industrial activities, from farming to oil production, and it is a prerequisite for new residential and commercial development. It is the lifeblood of our economy. We can no longer afford to suffer through the economic shocks of droughtinduced scarcity or the devastation of wells running dry, and still provide our children with anything resembling the quality of life we have enjoyed. The groundwater management legislation provides that crucial decisionmaking authority regarding how water use is regulated will be removed from local hands and flow up to Sacramento if we do not succeed with local implementations. We know more about the needs of farmers and central valley residents than do regulators in Sacramento; that knowledge is critical to ensuring a successful outcome. Regardless of whether the current drought ends with an El Niño event next year, the ramifications of decisions we make regarding implementation of SGMA will affect our region for generations to come. As important as how we proceed under the new legislation, ultimately the importance is equaled by the complexity of the process and the need for public input from stakeholders and private property owners. Two milestones are particularly useful for orienting input and participation in the process from REALTORS®. First, the new law requires each critically impacted basin to form one or more

BAKERSFIELD REALTOR® MAGAZINE

David Couch

Fourth District Supervisor

groundwater sustainability agencies (GSA). It is these local agencies that will be responsible for developing the groundwater sustainability plans under which key policy decisions involving conservation and/or increases in supply will be made. There are numerous local agencies with control over water in the central valley. In addition, under SGMA, the County will play a new role in representing landowners who are not within the boundaries of a water district. Questions REALTORS® might ask themselves include: Would it be more productive for there to be one GSA based on membership in the existing Kern Groundwater Authority and/or, alternatively, for there to be several such entities working independently with the ultimate goal of eventually coordinating their plans? Should certain cities that rely

“It’s no use saying ‘we are doing our best.’ You’ve got to succeed in doing what is necessary.” — Winston Churchill

primarily on surface water but are impacted by groundwater regulations form their own GSA separate from an unincorporated area? How might these decisions affect crucial questions like basin boundary definitions or the likelihood of litigation? For the critical Kern sub basin, these decisions have to be made by June 30, 2017. Second, the GSA (or GSAs) must prepare a groundwater sustainability plan (GSP) for critical overdraft basins, including the large Kern sub basin, by January 31, 2020. The GSP must show realistic steps taken to achieve sustainability by January 31, 2040 (for basins in critical overdraft) or January 31, 2042 (for those subject to the new law but not in critical overdraft). Additionally, the steps taken deserve and demand thorough debate and discussion. The plans are exempt from CEQA, so the timeline for input may end up seeming nonconventional. It will take a special kind of community will and discipline to self impose mitigation measures that may be difficult or costly. One section of SGMA expressly states that nothing in the law should be interpreted as a modification of existing property rights, but another section provides authority to take several actions, including restrictions on pumping, that many in our community would consider impinging on property rights. It is crucial that we do not take action without extensive discussion from private property rights advocates and real estate professionals. There’s an old proverb, “You never know the value of water until the well runs dry.” Working together, we can protect both vital groundwater resources and local control. This is not the time to be reticent with helpful advice. I look forward to hearing from and learning from REALTORS® throughout the groundwater planning process.

G AD H IGHLIGHT S T WO REALTORS ® WH O S ERVE WITH PAS SIO N

e are so fortunate at the Bakersfield Association of REALTORS® to have many dependable, reliable and committed volunteers. I have recently had the pleasure of working with two of them that I would like to take a moment to highlight. As your Government Affairs Director, my favorite annual occurrence is C.A.R. Legislative Day. It is an opportunity, unlike no other, for members to interact and participate in the process of government. Participants often come to a unique understanding of why participation in the legislative process is of great consequence, in addition to understanding the importance of organized real estate for their business. This realization remains throughout their careers and manifests in various levels of participation. This year we had a sizable group of first-time participants that are members of the Young Professionals Network (YPN). It was a very exciting day to have that kind of involvement. Jenny Cameron, YPN Chair, and YPN Vice Chair, Ashley Weaver, led the charge. Jenny Cameron, a native of Bakersfield, is a serious, career-minded mom of two who loves to travel, sew, paint and bake when she isn’t focused on her work as a REALTOR®. She also loves animals and spends time volunteering for Marley’s Mutts Spay & Neuter Clinics. Jenny is also no stranger to volunteering her time at the Bakersfield Association of REALTORS®. She is currently serving as the Chair of the growing and dynamic YPN, a young professionals committee that is certainly doing great things. She has also previously served as a co-chair for the Attendance & Reception Committee. Jenny believes that her service with YPN is not just about grooming the

Kim Schaefer GOVERNMENT AFFAIRS DIRECTOR

leaders of tomorrow, but serving as leaders today. I look forward to seeing what comes next for Jenny. We are very privileged to work with such exceptional people. Ashley Weaver was born and raised in Bakersfield, where she lives with her husband and two beautiful children, ages 6 and 4. Ashley is an energetic, dedicated, hardworking mortgage professional with San Joaquin Valley Mortgage. Motherhood keeps Ashley active, along with her passion for real estate and uncompromising quest for knowledge of our industry. In 2013, Ashley joined the Association of REALTORS® and immediately became active on several committees, including: Community Spirit, 1st Thursday Brew, Golf, Harvest and YPN. After serving on various committees, she served as the Chair of the 1st Thursday Brew committee in 2013, where she brought fresh ideas to the meetings, leading to record attendance and participation. She currently

Jenny Cameron

Miramar International

serves as the DC for the Diversity committee and Vice Chair of the YPN Advisory committee. It is Ashley’s love for real estate, combined with her passion for helping people, that gives her the excitement to serve our Association as a newly-elected Director. She will serve her term from 2016-2018. Ashley also keeps active with the WCR and is in line to be president of our local WCR in 2016. After their visit to Sacramento on Legislative Day, Jenny and Ashley became even more passionate about the critical issues impacting the real estate industry and real estate professionals. Jenny represented Bakersfield’s YPN in Washington (DC) earlier this year, and had the opportunity to participate in our delegation’s Hill Visits. Weaver was able to learn more about the legislative issues at the national level during these Visits, which she subsequently shared in the Legislative Issue of the Bakersfield REALTOR® Magazine. Both Jenny and Ashley understand that if real estate is your profession, then politics is your business. Both are determined to do their part to make a difference in how their business and community is affected. The Bakersfield Association of REALTORS® is grateful to have many volunteers and leaders who continually go above and beyond the call of duty to make a difference in our community and make our Association great. A few ways you can do your part Vote. One of the easiest ways to positively impact your community is to simply participate by exercising your right to vote. There is a presidential election right around the corner and it is easier than ever to cast your vote. Advocate by quickly

Ashley Weaver Karpe Real Estate

VOLUNTEERS Continued on page 22

BAKERSFIELD REALTOR® MAGAZINE

A MTI TI TME E T TO O JOIN A COM D A YM! I RX

2016 COMMITTEES

The

Heart of Giving

REALTORS Take Time to Care ®

g n i s u o H ir

Make a difference in the lives of others, join a committee today!

We’re gearing up for 2016 and our committees are beginning to form. Make a commitment today and join any one of the Committees listed below. After all, it’s the heart of a REALTOR® that changes our community.

EDUCATE

EDUCATION Serves members by providing, promoting and developing timely, high-quality educational opportunities for members. Provides courses that will assist members in maximizing their ability to successfully conduct their individual businesses. Chair: Lisa Belt, Soper Homes Realty, Inc Vice-Chair: Doreen Lane, Watson Realty ERA COMMERCIAL INVESTMENT Plans and organizes monthly Commercial Investment meetings, including pitch sessions and educational speakers geared towards commercial and industrial real estate. Chair: Kevin Palla, Pacific Commercial Realty Advisors Vice-Chair: Pete Peralta, Watson Realty ERA DIVERSITY Promotes the benefits of diversity and inclusiveness within our organization and community. Plans and promotes outreach activities and initiatives which address our multicultural community and real estate market. Provides education and best practices for members on how they can effectively work with our diverse populations.

Fill the Boo

MEMBERSHIP DEVELOPMENT/ ORIENTATION Promotes membership in the Association by presenting benefits of membership, encouraging participation, and seeking ways to enhance the value of membership. Plans

BAKERSFIELD REALTOR® MAGAZINE

Above: R.Gov and YPN’ers in Sacramento

and conducts orientation sessions for new members of the Association. Chair: Ronda Newport, Miramar International, Mill Rock Vice-Chair: Scott Knoeb, Frontier Real Estate Services

Vice-Chair: Michele Cooper, Chevron Valley Credit Union

Educatioonos–ter Career B

TECHNOLOGY Increases the comfort and skill level of our members with technology. Advocates best use practices which will enhance member professionalism and efficiency. Chair: Derek Sprague, Sprague Real Estate Group Vice-Chair: Nik Boone, Tobias Real Estate

ENGAGE

AFFILIATES Affiliate support and participation has always been a vital part of our Association’s membership experience. Chair: Barbara Wells, San Joaquin Valley Mortgage

ATTENDANCE & RECEPTION Promotes attendance at Association events. Encourages membership participation in programs and activities that enhance cooperation and harmony among all members. Assists in planning and arranging for special events. Chair: Debi Roberson, Miramar International, Mill Rock Vice-Chair: Tina Price, Keller Williams Realty BROKERS ADVISORY GROUP (Invitation Only). Drawing on the experience, knowledge and strategic wisdom of our Broker community, this forum is a vehicle for the sharing of ideas and perspectives in order to identify opportunities to enhance services for our Broker partners. Chair: Scott Tobias, Tobias Real Estate

YPN Softball

® I N G L E L YL ! E A G U E S RXE AAL TN ODR SM G I V E B A CW K I ETV HE R C Y OD A BROKERS FORUM Provides a forum for dissemination of information to brokers and sales managers. Fosters communication between designated REALTORS® by setting regular, informal meetings for the purpose of sharing ideas. Provides input to the Board of Directors on industry policies and practices. Brokers and Designated Managers only. Chair: Saul Bernal, Miramar International, Panama Vice-Chair: Jason Thoele, Tholco Real Estate Group, Inc. COMMUNICATIONS The CPR committee is to keep a strong pulse on our membership and our community through effective communication and feedback. Chair: Derek Sprague, Sprague Real Estate Group Vice-Chair: Ashley Weaver, Karpe Real Estate Center MLS OPEN FORUM Forum engages our MLS participants and subscribers for educational purposes, sharing of information and obtaining feedback regarding ways to improve MLS services. Chair: Tim Roberts, Watson Realty ERA Vice-Chair: Andy Legase, Watson Realty ERA YOUNG PROFESSIONALS NETWORK Focused on building tomorrow’s leaders by being inclusive and proactively engaging our younger REALTOR® members. Helps members excel in their careers through leadership opportunities, gaining industry knowledge, networking with their peers, and participating in community activities. Chair: Ashley Weaver, Karpe Real Estate Center Vice-Chair: Scott Knoeb, Frontier Real Estate Services

LEAD

GRIEVANCE Analyzes complaints involving alleged violations of the Code of Ethics, membership duties or bylaws, and makes recommendations regarding disposition of said complaints. Chair: Bill Mell, Miramar International

LEADERSHIP ACADEMY (Presidential Appointment). Team of seasoned Association leaders whose objective is developing effective leaders, who create value within our Association. Chair: Sheri Anthes, Coldwell Banker Preferred, Ming

PROFESSIONAL STANDARDS Promotes and enforces the Code of Ethics of the National Association of REALTORS® and conducts ethics and arbitration hearings. *Note: Consists of REALTORS® with sufficient background to make informed and objective determinations. Chair: Mike Saba, Watson Realty ERA STRATEGIC PLANNING AND FINANCE The committee coordinates the planning and budgetary activities of the Association. It is responsible for setting the long-term direction for the Association by identifying critical issues. Chair: Athena Collup, Miramar International, Mill Rock Vice-Chair: Wayland Louie, RE/MAX Golden Empire NOMINATING COMMITTEE (Presidential Appointment). A committee of REALTOR® members specially appointed for the purpose of reviewing, vetting and interviewing Officer and Director Candidate applicants. Chair: Sheri Anthes, Coldwell Banker Preferred, Ming YPN ADVISORY A team of successful young REALTOR® professionals, plans and promotes YPN educational programs and provides insights to Association leadership when requested, and offers overall directions for YPN activities. Chair: Ashley Weaver, Karpe Real Estate Center Vice-Chair: Scott Knoeb, Frontier Real Estate Services

ADVOCATE

LCRC Our local political action committee, funded by voluntary contributions from REALTORS® to support candidates for public office who understand the importance of REALTOR® issues and who will take positions on those issues that help promote the cause of housing and private property rights. Chair: Jeanne Radsick, Tobias Real Estate R.GOV Creates a forum for members to engage in local, regional and national issues that affect our industry. Members meet to review local government policies, ordinances and programs that impact real estate transactions. They serve as advisors to the Board of Directors regarding the Association’s position on issues. Chair: Carol Helm, McKinzie Nielsen Real Estate Vice-Chair: Martha Johnson, Keller Williams Realty

SERVE

REALTORS® CARE

EQUAL OPPORTUNITY Sensitizes the membership to the importance and necessity of equal opportunity in housing. Forms partnerships with other organizations to promote fair housing opportunities, and coordinates the annual Fair Housing Arts Contest for grades K-12. SALLY’S PLACE A seniors hot lunch program. It’s a partnership with the Salvation Army where volunteers serve to feed a hot meal to the elderly in our community. Chair: Lisa Belt, Soper Homes Realty, Inc. Co-Vice-Chair: Misty Jefferies, Chicago Title Co-Vice-Chair: Joe Muller, Chicago Title GOLF TOURNAMENT Plans, promotes and coordinates the annual REALTOR® Golf Tournament. Brings together members in a relaxed setting and environment that promotes goodwill and fellowship. Proceeds benefit local organizations. Chair: David Knoeb, Frontier Real Estate Services Vice-Chair: Vincent Breeding, Watson Realty ERA

Relay Wine Tasting

BRINGING HOME THE CURE n Relay for Life n Campout Against Cancer Each year our members come together to raise funds and awareness to save lives from cancer through the Relay For Life movement and the Campout Against Cancer Event. Co-Chair: Debi Roberson, Miramar International, Mill Rock Co-Chair: Ronda Newport, Miramar International, Faiur Mill Rock Vice-Chair: Theresa Housin g Olson, Soper Homes Realty, Inc n Wine Tasting Event

Vice-Chair: Theresa Olson, Soper Homes Realty, Inc

ng Faiur Housi st Arts Conte

Safety Tips

Every Real Estate Agent Needs to Know 3

TRACEY VELT | REAL TRENDS DEANNA LAWLEY | HOMEFINDER.COM

While 90% of home buyers search online during their home buying process*, nothing replaces the experience of an open house or REALTOR ® a showing. Selling the home is the SAFETY ultimate goal, but your own safety should be your primary focus when meeting with these potential buyers. Below are six ways to stay safe when showing your listings. Familiarize yourself with the exits: Prior to your open house, take a few minutes to learn where the exits are and

unlock the deadbolts, in case you encounter a situation that requires a quick exit. Create a create a virtual floor plan of the house using an app like Home Design 3D (iOS, Free). Mark all entries and exits throughout the house so you can quickly exit if necessary. Keep in contact with your office: Give your office your itinerary, and schedule check-in calls with a co-worker or family member. If you aren’t available to speak at the scheduled time, send your safety contact a text message with a pre-determined word or phrase, so they know you’re occupied.

Keep your phone charged and close by: Before your open house, charge your phone fully and keep it on hand when you’re giving tours throughout the house. If your phone battery drains quickly, invest in a portable charge case or mat like one from Mophie to ensure you have full power throughout the day. Be diligent with signing in prospects: Collecting prospects’ contact information is not only a great follow-up technique, but a smart way to record attendees if anything goes wrong during an open house. Use an

Congratulations to our 2016 O ASHLEY WEAVER 2016 - 2018 Director

BILL REDMOND 2016 President

WAYLAND LOUIE

® 2015 - 2017REALTOR Director BAKERSFIELD MAGAZINE

MIDGE JIMERSON 2016 President Elect

KEVIN PALLA

2015 - 2017 Director

DAREK SPRAGUE

ATHENA COLLUP

2016 Vice President

2016 Secretary / Treasurer

SCOTT KNOEB

ASHLEY WEAVER

2016 - 2018 Director

open house management app like the Open Home Pro™ app (iPad/Android, Free) to ensure visitors enter their name and contact information upon entering. Trust your instincts: Stay safe when meeting potential buyers with the bSafe app (iOS/Android, Free). If you feel threatened or unsafe, tap the “Alarm” button and the app will send your GPS location to pre-determined contacts in your address book via text message. If your intuition tells you that something about a prospect or situation is not right, you are probably correct. Take the necessary steps to make sure you are safe, even if that means calling 911. Keep digital watch: During a busy open house, it can be difficult to keep an eye on everyone who passes through. Ensure your safety, and help keep your seller’s

valuables secure by using a wireless security camera like Canary. It syncs automatically through WiFi and you can watch real-time footage directly from your smartphone. It also has a safety net feature, so you can set a

co-worker or family member to be a back-up if you can’t respond to a safety notification. *According to The Digital House Hunt: Consumer and Market Trends in Real Estate, A Joint Study from The National Association of Realtors® and Google. This article reprinted with permission of REAL Trends Inc. Copyright 2015.

Officers and Directors It’s our 110-year anniversary! The longevity and success of our Association is a testament to the groundwork established by our founding fathers

SHERI ANTHES

Immediate Past President

PAM EPPS

2014 - 2016 Director

BRIAN TUTTLE

2015 - 2017 Director

in 1905 when the first Realty Board was established. They had a dream of building a community — of homeownership. Today, the dream lives on through our leadership and members who continue to advocate for homeownership and develop communities. We wouldn’t be here without you, your efforts and

DARLENE TOBIAS 2016 - 2018 Director

LINDA JAY

Chief Executive Officer

continued support.

REALTORS

GIVE BACK

YPN Softball Tournament Benefitting the YPN educational and networking coffers Dollars Raised: $2,174.50 Total Hours: 288

54th Annual Golf Tournament & Helicopter Golf Ball Drop (October 23, 2015) Benefiting the Wounded Heroes Fund and Ronald McDonald House Estimated dollars to be raised: $45,000 Last year raised: $32,134 Total Hours (to date): 75

Fair Housing n Arts

Contest Dollars raised: $3,619.50 (Donated $1300 in gift cards to participating teachers) Number of Entries: 170 Total Hours: 133

Harvest n Relay

for Life Team Bringing Home the Cure and Campout Against Cancer. Dollars Raised: $30,753.79 (split between the two non-profit organizations) Total Hours: 424

Affiliate Committee n Woolgrowers

Dollars Raised: $300.00 Total Hours: 110

IT’S IN THE NUMBERS

ASSOCIATION TOTAL HOURS:

980 hours

ASSOCIATION GRAND TOTAL: $

68,98179*

*Total figures above do not include the Golf Tournament

Other Community Involvement SCHOLARSHIP TRUST FUND Scholarships are available for qualified students from a Kern County high school, community college or university. Ten area students were selected to receive funds in 2015. Total: $4,600 Hours: 10

Advertising n Bakersfield

Californinan (Trade) Life (Trade) n KGET Webtab – $3,000 n Airport Billboard Advertising 3 year contract - $440 mo. ($5,280 per year) Production cost - $1,500 2 banners (change-out 2x a year) n Bakersfield Magazine for the August/September and October/November Issue – $4,150 n Bakersfield

Public Relations

n Campout

Against Cancer (committee fundraiser) n St. Jude Dream Home Giveaway (committee fundraiser) n Habitat for Humanity (committee fundraiser) n Article submissions to the Bakersfield Californian n Downtown Business Association (State of Downtown) Sponsorship with Tickets – $500 n WCR Membership – $210 n Salvation Army Meal Donation – $100 n 2015 Newspapers in Education – $250 n Kern Economic Development Corporation Annual Investment – $5,000 n Kern Economic Summit Sponsorship – $3,500 n Bakersfield Chamber of Commerce Membership Investment – $375 n Kern County Hispanic Chamber of Commerce Membership Investment – $150 n Kern Tax Membership Investment – $1,000

Association Memberships n Downtown n Kern

county Hispanic Chamber of Commerce n Greater

n Make-a-Wish

Foundation (committee fundraiser) n The Golden Empire Gleaners (committee fundraiser) n American Cancer Society (committee fundraiser)

Bakersfield Chamber of Commerce n Women’s

Council of REALTORS®

n Rotary n Better

Business Bureau

Upcoming Activities n Exchange

YPN Softb

all Tourn

ament

Relay for Life

Business Association

Club of Bakersfield

Fair Hou

sing

DBA Socia

l Mixer

Mediation is all about

resolving differences I

n recent years, our society has had an instinctive reaction to turn to the courts to resolve disputes. However, the reality is that lawsuits are almost always financially and emotionally draining for the participants. While buyers and sellers (with the agents) usually resolve the minor disputes that arise, some others are best handled by mediation. Mediation is growing in popularity and one that can dramatically reduce Joe Newton the time and cost of resolving disputes. In fact, the standard California Residential Purchase Agreement (RPA) now requires the parties to mediate many disputes that might arise between them. It is not an “optional” clause that requires a check mark or initialing. When the parties sign the RPA, they agree to attempt to resolve disputes through the mediation process before escalating the dispute by filing a court action or arbitration. Any party who does not attempt mediation before filing an arbitration or court action, or any party who (before litigation or arbitration has been commenced) refuses to mediate after a demand has been made, is not entitled to attorney’s fees even if they subsequently win the legal action. Certain matters are excluded from the obligation to mediate and arbitrate because those matters can be resolved more expeditiously outside of arbitration, or because special rules have been established by the legislature to deal with such issues.

WHAT IS MEDIATION? Mediation describes a relatively informal

2015 OMBUDSMAN REPORT APRIL – JUNE

187 calls were received by our Ombudsman

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

1 grievance/ethics packages mailed out to complaining party n

1 arbitration packet mailed out to complaining parties regarding a case that could not be resloved n

68 calls requesting information on real estate procedures n

22 calls requesting information on deposits

3 anonymous calls

13 cases referred to Association mediation

3 Tehachapi calls

323 Year-to-date total

form of dispute resolution that occurs outside the court system. In mediation, the parties to the dispute are assisted by a neutral third person called a mediator. The mediator is not empowered to impose a decision on the parties; instead the mediator facilitates discussions and negotiation between the parties with the goal of assisting them in reaching a mutually-acceptable, no adversarial settlement of their dispute.

WHAT ARE SOME ADVANTAGES? It is a flexible dispute resolution process that can be used to resolve virtually any type of dispute. Mediation allows the parties to work together and keeps them in control of the decision making. It can be free of lawyers, judges, arbitrators, or inflexible laws, court or arbitration rules. It allows a “winwin” outcome as opposed to the “winnerloser” scenarios associated with litigation and arbitration. It is always confidential and private, whereby the discussions and agreements are not part of a public record.

HOW DOES MEDIATION WORK? Mediation does not have to follow any particular set of rules or procedures. However, a typical mediation session may be as follows: The mediation session begins with introductions and an explanation of how the mediation will begin. Various documents will be signed, such as the agreement to mediate with a confidentiality statement. From there, the parties will have an opportunity to express their views of the dispute. Sometimes the parties will separate to discuss their personal views and proposals. Once the parties have presented their views on the dispute, the mediator will then work with them to identify areas of agreement and disagreement. The mediator does not tell the parties what they must do but, rather, suggests ideas that will help resolve the differences. If the parties do reach an agreement, it will be put in writing where all parties would sign.

WHAT IF THE MEDIATION DOES NOT RESOLVE THE DISPUTE? In the event mediation does not resolve the dispute, the parties are free to pursue any other system of dispute resolution available to them. If the parties had previously agreed to arbitration, then they could pursue that. It should be remembered that even if mediation does not resolve the dispute, it is still an effective way of narrowing areas of differences, allowing the parties to express their feelings, and enabling future proceedings to be more efficient and focused. Contract disputes among REALTORS® tend to lend themselves naturally towards mediation. Agency, partnerships, commissions, and sales issues all involve continuing relationships among professionals that are best preserved without burning bridges. BAKERSFIELD REALTOR® MAGAZINE

Let’s talk about home loans in our NEW office. HomeStreet Bank – Local Expertise for your Home Loan Needs Kathryn Mika

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661-619-9760

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REALTORS® on the Front Line…

Help Vets become Homeowners NATIONAL ASSOCIATION OF REALTORS®

WASHINGTON (May 15, 2015) — Officials from the U.S. Department of Veterans Affairs encouraged REALTORS® to help debunk misconceptions regarding the VA Home Loan Guaranty Program at an agency briefing held during the REALTORS® Legislative Meetings & Trade Expo. The VA home loan guaranty is a military benefit that helps service members, veterans and eligible surviving spouses become homeowners. Since the program was enacted in 1944, as part of the G.I. Bill, the VA has guaranteed more than 21 million home loans. John Bell, Assistant Director of Loan Policy and Valuation, thanked REALTORS® for their role in the home buying process. “I have been so impressed with being able to work with the National Association of REALTORS® and its members on improving our outreach to the community,” he said. “You are the front line of defense when it comes to helping

veterans understand this program; without REALTORS®, veterans will not come.” Seth Task, 2015 Chair of NAR’s Federal Financing and Housing Policy Committee, said REALTORS® are working hard to educate other agents, lenders, and those who served the country about the advantages of the program and how veterans can use them. “REALTORS® are proud to help all eligible homebuyers use their VA benefits to meet their housing needs,” he said. Because VA loans are a benefit for veterans and their families, protections are built into the home buying process to ensure that any property purchased will be safe, sound and sanitary for occupants. The program’s special conditions mean that closing requirements for VA loans are different from other conventional loans. REALTORS® are concerned that the differences may deter sellers from accepting veterans’ offers, especially during bidding wars when a VA loan may seem inconvenient.

“We think every veteran should be able to use a VA loan, and it is frustrating for us when there are confusions or other roadblocks that prevent veterans from getting the home they want,” said Task. Bell said further education needs to be done. “There are misconceptions in the marketplace about VA loans. People worry they are challenging to close or difficult to underwrite, and that the appraisal process drags on too long, yet the facts show that appraisal and closing times are on par with the rest of the industry,” he said. REALTORS® can also remind lenders to request an appraisal early in the process to make sure a VA-certified appraiser is able to value the property in advance of the closing date. If agents feel that a shortage of certified appraisers is slowing down the process, they can call the local VA loan center and request a review of appraiser capacity. NAR is committed to working with Congress and the VA to provide more flexibility to veteran borrowers when purchasing a home. The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1 million members involved in all aspects of the residential and commercial real estate industries.

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SNAPSHOTS

P H O T O SA C TA IP M T UER I TN OG M M OI M X

M X E NA TNS D , MME M I NO G R ILEES AWNI DT H R E LC AOT LI OL NESAH G I PUS E S

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Too busy to volunteer? Here’s a few tips on

Time (Frame) Management

BRAD WARREN | REAL TRENDS

hat’s right! You can’t manage time. Despite all the workshops, software programs and personal planners available today, you can’t manage time. Instead, manageable are people’s promises and commitments (as well as your own) to do something within a time frame. A co-worker promises to have a CMA to you by 3pm on Tuesday, or you make a commitment to attend your daughter’s soccer game on Saturday, and so on. We make promises and commitments to do something within a certain time frame and that’s what we manage — not time itself. So if that’s true, how do we manage our promises? How do we organize ourselves to get more done in less time and with less stress as well? Here are five general principles that I have found extremely useful to help me be productive and effective: Have a planning system and use it religiously. By “system,” I mean something more than just post-it notes and scraps of paper. It can be a PDA, a software program, or pen and paper planner. Your system should: Work for you. Be simple to use, and be the one system tool you use (don’t lose it!). Having one planner at work and one at home is confusing; not to mention that we always forget to write down our promises in one or the other, and wind up missing an important business or personal event. (Oh, I forgot to ask: You do have a personal life, don’t you?) Set goals, both short-term (daily, weekly and monthly) and long-term (quarterly, annually, and beyond) goals. The best goal-setting formula is the SMART system: specific, measurable, attainable or achievable, realistic, and time-bound. Describe your goal in non-jargon ways so that anyone can understand that goal. Make it measurable so you know if you reached it, achievable so it can be accomplished by you (with assistance from others), and action oriented. You’ll also need to fractionate your large goals into sub-goals or milestones

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along the way. Make it a stretch, but not so unrealistic that you’ll fail; and, have a due date, a specific deadline, or a “by-when” date when it will be completed. Your goals should also be written down and shared with others who are supportive. Brain research shows that the mind would rather move toward a positive goal than run away from or avoid a negative one, so state your goals in positive terms, e.g., “I eat healthy, nutritious food” is better than “I will stop eating jelly donuts.” Determine your priorities. You can’t do it all, no matter what they say. So what’s most important to you? This is not what’s most urgent (like a client from hell, who interrupts you all the time and sends you on wild goose chases). Some questions I use to help sort this out are: What’s the best use of my time right now? If I could only do one of these things on my list today, which one would it be? Then, work on that task until it’s done (completion frees up energy), then begin on the next. In the words of Goethe, “Things which matter most must never be at the mercy of things which matter least.” Or, in the words of Steven Covey, “Remember that the main thing is to keep the main thing the main thing!” Schedule a week at a time. Again quoting one of Covey’s Seven Habits of Highly Effective People, “Begin with the end in mind.” Look at what you’ve got planned for Friday. How does that impact what you’ll do on Thursday? On Wednesday? Tuesday? Today? Look into the future and plan backwards to the present. Rather than prioritizing your schedule, try

scheduling your priorities. ‘Efficient’ is doing things right, but ‘effective’ is doing the right things. The greatest leap in my productivity and effectiveness (and satisfaction, too) was when I went from daily seat-of-the-pants planning to a much-focused process of planning out the entire week every Sunday evening. Try this weekly planning process for the next three weeks and you’ll see a dramatic improvement in your productivity, as well as a decrease in your stress. Complete the day before you go to sleep. Look at your to-do list. Check off all the things you accomplished and congratulate yourself for doing what you did, not lamenting what you didn’t. Reschedule those things that need doing by transferring them to another day; seeing if they can be delegated to someone else, or dropped if they are no longer relevant. Then, go to sleep with a clear mind, uncluttered by thoughts of all the things you have to do. They’ll still be there in the morning. You’ll be much more refreshed and capable of handling them after you’ve gotten a good night’s sleep. The key is to make and keep your promises and hold others accountable for their promises. I promise you a richer, more rewarding life if you do, and you will become a Master of Time Management in the process. ABOUT THE AUTHOR: Tracey C. Velt is a writer, blogger and editorial strategist who specializes in the business of real estate. For the past 10 years, she’s been writing and editing for REAL Trends, is the Editor of the REAL Trends blog and the Editor of LORE magazine. This article reprinted with permission of REAL Trends Inc. Copyright 2015.

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Two Guest Speakers Sharing the Tale of Two Cities

Bakersfield and Tehachapi

The Bakersfield Association of REALTORS® Commercial Investment Committee has invited two special guest speakers in September and October. The individuals include: Alan Tandy, Bakersfield City Manager, and Michelle Vance, Development Coordinator for the City of Tehachapi. They will be speaking at our Association and sharing the tale of our two cities, Bakersfield and Tehachapi.

Joining us on Friday, September 18th, 8am, is Alan Tandy Alan Tandy has served as the City Manager of Bakersfield since 1992. He has insight into the inner workings of our city that only he would know and share. He was the Executive Director of the

Bakersfield Redevelopment Agency from 1992 until its dissolution by the State in early 2012. Tandy was also the City Administrator and the Executive Director of the Redevelopment Agency in Billings, Montana from 1985-1992. He previously held the position of City Manager in Gillette, Wyoming, and Napoleon, Ohio, and served as an Administrative Assistant in Rock Island, Illinois. Tandy graduated from the University of Oregon with a Bachelor of Arts Degree in Political Science, and from the University of Iowa with a Master of Arts Degree in Municipal Administration.

Joining us on Friday, October 16th, 8am, is Michelle Vance. Michelle is the Economic Development Coordinator for the City of Tehachapi. She joined the City of Tehachapi in April 2013. As the Economic Development Coordinator, she is responsible for implementing principles and practices of economic development, business recruitment, and retention and expansion policies. Vance serves as the primary liaison to community groups and organizations where the City shares partnerships. Join us to get the latest update. We’ll have a time for networking too! Join us — but first be sure to RSVP Claudia at 661.635.2300.

September Sponsor: John Lock, Edward Jones. October Sponsor: Janette Ramsey, Janette Ramsey Insurance BAKERSFIELD REALTOR® MAGAZINE

design for living

HOW TO CHOOSE THE RIGHT PROJECTS

Lowest Cost Project brings in the

Highest Return on your Investment

lthough kitchens and bathrooms always steal the spotlight in a home remodel, they aren’t necessarily the ones that have the highest return on investment when you sell your home. Since 2002, trade magazine for contractors and builders “Remodeling” has been tracking how much it costs to do common home improvement projects — and then calculating how much of that cost is recovered when the home sells. Each year, we highlight the projects with the highest return on investment (ROI) from the magazine’s “Cost vs. Value Report.” But this year, we decided to focus not just on the new data, but how projects have performed since 2002. So, what’d we find? Well, you may want to reconsider turning that spare room into a full-fledged office. A home office remodel had the worst overall ROI of 52.6%. The project’s been declining since it was added to the study in 2005 with an ROI of 72.8%. The biggest jump

we’ve seen? Backup generators, which had some of the lowest ROI rates over the years — as low as 47.5% in 2011 — leapt to 52.7% in 2012 and then took an almost 15 point jump to 67.5% in 2013, thanks to Hurricane Sandy and extreme weather. When weather and the demand for generators calmed last year, ROI dropped to 59.9%. Overall, backup power generators come in second-to-last in our check on the history of the “Cost vs. Value Report.” But the real gems are those projects that don’t have such highs and lows — the ones with consistent ROI. We’re not saying these steady and reliable projects are the ‘right’ ones for you. If a home office will improve your quality of life and

help you enjoy your home more, then it makes sense. We just think knowing what’s going to happen with your remodeling dollars makes sense, too. So, which ones are the long-term winners? The projects that share these four characteristics: 1. Low-maintenance 2. Good — but not necessarily the highest — quality 3. Energy-efficient 4. Not too costly

The Highest ROI: Replacing Your Front Door

Year in and year out, no single project has provided such a healthy return on your home improvement dollar as a new front door. A replacement steel door averaged a 98% return on investment — by far the highest return in our historical look at the “Cost vs. Value Report.” It’s also the lowest-cost project in the annual report at $1,230. It’s an energy upgrade that has great curb appeal and needs virtually no maintenance. “It gives you the best bang for your buck in terms of transforming the look and feel of your home,” says Brandon Erdmann, president of the remodeling firm HomeSealed Exteriors in Milwaukee. “Plus, old exterior doors can be a huge source of energy loss. So you’re improving the look of your house, improving energy efficiency, and you’re able to do it without breaking the bank.”

New Siding

No other feature has as much impact on curb appeal as siding. Clean, well-cared-for siding signals home improvement mastery. Old, worn siding can

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contribute to a loss of up to 10% of your home’s value. That’s one reason new siding has such a high ROI. In fact, of the top 10 long-term averages from the “Cost vs. Value Report,” three of them are replacement siding projects. Vinyl siding is low-cost, durable, and easy to install, hitting all the right notes when it comes to getting a good return on your home improvement dollar. Best of all: It’s a lowmaintenance feature that frees up your time. In a 2013 survey of homebuyer preferences from the American Institute of Architects (AIA), respondents voted low-maintenance products the most popular characteristic of home design — a preference that’s trending up from previous AIA surveys. Today’s vinyl siding includes fade-resistant finishes and transferrable lifetime warranties that are much more confidence-inspiring than the 10-year guarantees of just two decades ago. Over time, midrange vinyl siding replacement projects have returned 81.5% on the initial investment. Fiber-cement siding also shows a strong ROI, with the second-best return of any project in our long-term look at the “Cost vs. Value Report” — 83.9%. Although it’s more expensive than vinyl, it has one thing vinyl still lacks — the perception of quality. That’s important to homeowners and homebuyers. In a survey from the National Association of Home Builders (NAHB), “quality” was the one of the most important traits that homebuyers focused on when shopping for a house. Foam-backed vinyl is another winning project, with an average long-term return of just under 80% and a cost that’s slightly

more than fiber-cement. But foam-backed vinyl has a trick other sidings don’t — it’s an energy-efficient upgrade, with an R-value of R-2 to R-3. During a research project on residential energy efficiency conducted by the technical analysis firm Newport Ventures, homes clad with foam-backed vinyl siding showed an average energy savings of 5.5% over a twoyear period. That’s music to any homeowner’s ears. According to the AIA, energy-efficiency is the second most popular characteristic of home design — a feature that helps you save money for years to come.

Minor Kitchen Remodel

We’re not talking about the dream kitchen remodels that are plastered on Pinterest and Houzz. Those types of remodels took a big hit on ROI during the recent recession. But a minor kitchen remodel weathered the economic bumps with an average return of 81.8% over the years, helped by a relatively modest financial commitment — the 2015 “Cost vs. Value Report” pegs the cost at $19,226 (that includes labor and new cabinet doors and drawer fronts, countertops, flooring, and appliances). Recession or not, a minor kitchen remodel beat out a higher-end kitchen remodel every single year, with its highest recorded ROI at 98.5% in 2005. “People are always willing to update their kitchens,” says Dale Contant, secretary of the National Association of the Remodeling Industry (NARI) and owner of Atlanta Build and Design. “It’s the hub of the home.” That’s underscored by stats from Harvard’s

Joint Center for Housing Studies that show that over the last 10 years, homeowners have spent more on kitchen remodeling than any other home improvement category. That indicates homeowners don’t seem to be as concerned about the ROI on a kitchen remodel as they are about how the kitchen works for them personally, and maybe a bit about injecting their own personalities into the hub of the home. A 2013 survey from NAR found that 53% of buyers undertook a remodeling project within three months of purchase, and of those, 47% dug right in and remodeled their kitchen.

Wood Deck Addition

Deck additions have been popular projects with a high ROI but, like a lot of investments, decks fell off during the recession. “When the economy soured, deck-building soured,” says remodeling contractor Lino Carosella of Haverton, Pa. “Decks are a bit of a luxury, and homeowners tended to spend on necessities, such as upgrading their kitchens and baths. But now decks are coming back.” Indeed they are, in they past two years vaulting over bathrooms and other improvements on our list of long-term winners with an average ROI of 80.6%. Although homeowners annually build about twice as many patios as decks, both outdoor projects benefit from our ever-increasing love of outdoor living, a trend that looks to continue for the foreseeable future. One big reason is that decks and patios are a sweet way to expand living space at a low cost of $8 to $30 per square foot — a bargain REMODELS Continued on page 22

BAKERSFIELD REALTOR® MAGAZINE

Sprague Recognized by NAR Class of 2015 honorees of the ‘30 Under 30’ in Chicago

A group of rising young REALTORS®, including Derek Sprague, recently met in Chicago to be recognized by NAR. They are hardworking, young professionals who understand the importance of building strong customer and community relationships. They are professionals who stand out from the crowd emerging with an unmatched work ethic and unyielding dedication to their clients. They came from all parts of the country and their specialties are diverse. They are salespeople, team members, team leaders, and company owners. As a group, the 30 practitioners demonstrated some of the best traits the real estate industry has to offer. This year, we have the pleasure of congratulating one of our own, Derek Sprague, as a distinguished Class of 2015 honoree in the ‘30 Under 30’ honorees. REMODELS Continued from page 21

compared to the $150 to $300-per-square-foot cost of a new home addition.

Attic Bedroom Remodel

Attic bedroom remodels join our list of smart investments with an overall ROI of 79.3%. Attic conversions were especially popular during the recession, when homeowners put off buying move-up houses and instead turned to increasing the living space they already owned. Makes sense with the rise of multi-generational households over the past few years. Converting an attic to a bedroom increases living space without increasing your home’s footprint — the walls, floor, and ceiling already exist — which helps keep remodeling costs under control.

Garage Door Replacement

No surprise that a garage door replacement project made it onto our list of all-time winners — a new garage

VOLUNTEERS Continued from page 7

completing Calls for Action from C.A.R. and NAR. Volunteer on a campaign for a candidate who is a REALTOR® champion. One hour of your time could make a big difference in a close election. Write a letter to local elected officials encouraging them to make good decisions for the community, or take the time to submit a letter to the editor of the local newspaper. Participate in R.GOV meetings and

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door provides a big boost for your home’s curb appeal. In fact, of our top 10 long-term champs, most are exterior projects that ramp up your home’s good looks and enhance marketability. A project that replaces an older, twocar door with embossed steel door has a current cost of about $1,600. Over the years, midrange garage door replacement projects have returned a healthy 80.7% of a homeowner’s investment.

A Note on Projects That Are Trending Downward Why aren’t home office remodels as popular as they were 10 years ago? Probably because we’ve come to rely less on dedicated office space and more on mobile hardware that lets us conduct business from any room in the house. Cloud storage puts documents a click away — not in a file cabinet — and our smartphones keep us connected 24/7, not just when we’re in the office. That sensibility frees up spare rooms for

other uses, especially bedrooms, bathrooms, and storage. Another project, sunroom additions, appears to have gone the way of sunken living rooms and parlors. They used to be fashionable, but today we know sunroom additions are difficult to heat and cool, and, at $300 to $400 per square foot, they’re expensive to construct. You’ll get almost the same benefits — and more fresh air — with a much cheaper deck or patio.

The Bottom Line It’s true: A rising tide lifts all boats. Over the past couple of years the stabilizing economy has helped produce better returns on most remodeling projects. That’s good news for homeowners, who can be assured that their remodeling dollars are garnering better returns when it comes time to sell, and generating more enjoyment of their homes in the meantime. Happy remodeling! SOURCE: NAR/Houselogic.com

programs when elected officials are hosted at the Bakersfield Association of REALTORS®.

If you are interested in seeking

Contribute to the REALTOR® Action Fund.

local or state board, commission,

Run for office. Seriously! We need more REALTOR® champions in elected positions. By doing our part to contribute to the community, we add people to our circle of influence and gain opportunities to build relationships and success. We also demonstrate what it means to be a good citizen to the next generation by leading by example.

an appointment to serve on a and/or committee, please contact Kim Schaefer for additional information. Kim can be reached at 661.635.2306.

Consumer Financial Protection Bureau changes

TRID effective date — again The Consumer Financial Protection Bureau recently issued a proposed amendment to the Know Before You Owe mortgage disclosure rule, which proposes to move the rule’s effective date to Oct. 3, 2015. This comes mere days after CFPB Director Richard Cordray said that the CFPB would delay the effective date of the TRID rule until Oct. 1st. Now, the CFPB has issued the actual proposal, with a proposed effective date of Oct. 3 instead. The rule, also called the TILA-RESPA Integrated Disclosure rule, requires additional mortgage disclosure forms and a more complex compliance apparatus for lenders. The required loan documentation consists of two new forms, the Loan Estimate and the Closing Disclosure, to ensure compliance. These new forms consolidate the TILARESPA forms and are meant to give consumers more time to review the total costs of their mortgage. The Loan Estimate is due to consumers three days after they apply for a loan, and the Closing Disclosure is due to them three days before closing. These two requirements have thrown the mortgage

October 3

CFPB’s new proposed effective date issued for TRID industry into a frenzy as they try to comply by the deadline. The Bureau is issuing the proposal to correct an administrative error that would have delayed the effective date of the rule by at least two weeks, until Aug. 15th at the earliest. National Association of Federal Credit Unions Director of Regulatory Affairs Alicia Nealon said CFPB missed the point and could do more. “While NAFCU is pleased by the CFPB’s proposed extension of the effective date of the TILA-RESPA Integrated Disclosures, it is disappointing the CFPB has not taken this opportunity to permit an early compliance period that will provide credit unions with valuable time to test their systems before the implementation date,” said Nealon. “NAFCU will continue to urge CFPB to reconsider its position on this issue.” This announcement comes shortly after

huge news earlier in June, when the CFPB announced that it would allow a good-faith enforcement grace period asked for by both the mortgage industry and a bipartisan coalition in Congress. The Bureau said that it believes that moving the effective date may benefit both industry and consumers with a smoother transition to the new rules. The Bureau also said that it believes that scheduling the effective date on a Saturday may facilitate implementation by giving industry time over the weekend to launch new systems configurations and to test systems. A Saturday launch is also consistent with existing industry plans tied to the original effective date of Saturday, Aug. 1st, the CFPB said. ABOUT THE AUTHOR: Trey Garrison is the Senior Financial Reporter for HousingWire. com. Trey has served as Real Estate Editor for the Dallas Business Journal, and was one of the founding editors of D CEO Magazine. He has been an editor for D Magazine — considered among the best city magazines in the United States — and a contributor for Reason Magazine. This article reprinted with permission of REAL Trends Inc. Copyright 2015.

BAKERSFIELD REALTOR® MAGAZINE

REALTORS® Make a Difference in the

Community and Around the Globe REALTORS® not only help make the dream of homeownership a reality, they also help build better communities. In small towns and large cities across the globe, REALTORS® help shape and promote community values, giving their time and effort to noble causes. REALTORS® throughout the state have a long-standing tradition of community involvement, making a difference in the neighborhoods in which they serve. REALTORS® volunteer their time and effort in numerous charities and worthy causes. The initiatives that are highlighted below offer examples of how REALTORS® are working to strengthen community bonds everywhere. C.A.R. Disaster Relief Fund C.A.R. established the C.A.R. Disaster Relief Fund in the wake of the devastating 2003 California wildfires. Grants provided by the fund were used to help members of the REALTOR® family — REALTORS®, their staff, and association members and their staff — who incurred substantial losses due to the wildfires. Today, C.A.R. continues to reach out to those affected by natural and other disasters by distributing grants of $1,000 to $10,000 from the fund. Legal Q&A: Firestorms: Basic Real Estate Legal Issues To assist REALTORS® and their clients with some of the many legal questions which may arise, C.A.R.’s Legal Department has released

a Legal Q&A entitled Firestorms: Basic Real Estate Legal Issues. NAR Housing Opportunity Program NAR’s Housing Opportunity Program serves as the blueprint for REALTORS® to become leaders in identifying, developing, advocating and promoting business opportunities, programs, products and resources that expand housing availability. REALTORS® are ideally situated to improve housing opportunities where they live. They are the first stop for the prospective home buyer or renter. Accordingly, REALTORS® can reach out – through personal involvement in their own communities – to those who need greater access to quality, affordable home ownership and rental opportunities. NAR’s Housing Opportunity Program was created in 2002 with the vision of positioning, educating and assisting REALTORS® to create housing opportunities for all. The Housing Opportunity Program offers programs, grants, trainings, and resources that help REALTORS® and REALTOR® associations to expand housing availability and insure an adequate supply of rental housing and home ownership opportunities in their communities. REALTOR® Magazine Good Neighbor Award The Good Neighbor Award recognizes REALTORS® who make extraordinary commitments to improving the quality of life in their communities. Diversity The NATIONAL ASSOCIATION OF REALTORS® has a vision of REALTORS® being the leaders in a culturally-diverse real estate market. REALTORS® who are able to effectively reach out to all racial and ethnic groups in their community are not only positioned for success, but can take pride in knowing that they have participated in the expansion of home ownership to all Americans. Martin Luther King, Jr. Memorial Underscoring its mission to make home ownership viable for all Americans and its commitment to supporting fair housing,

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NAR made a $1 million contribution to the Martin Luther King, Jr. National Memorial Project Foundation in Washington, DC, in February 2007. Habitat for Humanity Habitat for Humanity brings families and communities in need together to build decent, affordable housing. NAR is proud to be a National Underwriter of Habitat for Humanity’s “CONGRESS BUILDING AMERICA, NATIONAL BUILD PROGRAM,” joining Congress in building a home for a deserving family in Washington, D.C. HOPE Awards The HOPE (Home Ownership Participation for Everyone) Awards recognize up to seven organizations and individuals who are making outstanding contributions to the cause of increasing minority homeownership. Smithsonian Exhibition “Within These Walls...” The NATIONAL ASSOCIATION OF REALTORS® is the sole sponsor of the “Within These Walls...” exhibition at the Smithsonian National Museum of American History. REALTORS® are proud to showcase their commitment to educating the public about homeownership and its role in the American Dream. REALTORS® Relief Foundation The REALTORS® Relief Foundation was established to provide needy victims and their families of disasters (including, but not limited to affected relief and rescue workers), assistance with housing-related needs arising out of such disasters, and for other charitable purposes permitted under Section 501(c)(3) of the Internal Revenue Code. The Foundation may elect to provide assistance primarily or solely to victims who are members of the National Association of REALTORS®. Since its inception in 2001, the REALTORS® Relief Foundation has distributed over $21 million.

realtors ® technology

Digital Strategies to Attract

More Real Estate Leads

TRACEY VELT | REAL TRENDS

ast year, 55 percent of potential homebuyers turned to the Internet as the first step in their property hunt, while only 15 percent made direct contact with a real estate agent, according to the latest National Association of REALTORS® report. As they continued their search, 50 percent used a mobile or tablet search engine and 26 percent used an online video site. Digital marketing has become crucial to successful home selling. Make sure you have a solid digital lead generation strategy and are continuously improving your competitive advantage in today’s mobile marketplace. Ready to attract some more leads? Here are a few strategies.

Update Your Website to Make It Mobile-Friendly If your real estate site is not mobilefriendly, it’s time to give it a makeover with a visually-pleasing responsive site design. The responsive approach to site design means that a site’s layout is programmed to automatically adapt to any screen size, from smartphones to 34-inch ultra-wide desktop monitors, and everything in between. A responsive design is preferred by search engines, thus potentially improving your site ranking. It is also simple for users to navigate, and can improve your visitor bounce rate. Get a jump on your competition and position your site to be favored not only by Google, but also by the rapidly-growing number of online mobile users. As with any design, make sure your

site is filled with strong, appealing photos and video that will capture your viewer’s attention. Enhance your current offerings with high-quality, relevant stock photos and video for an improved visual experience from a desktop, mobile, or tablet.

Create Compelling Content Content is key to any effective digital marketing strategy. Real estate trainer Brian Icenhower suggests looking beyond content aimed exclusively at home buyers and sellers; instead, real estate bloggers can give their sites a boost by generating content of interest to the general public. For instance, offer original content such as a local guide to the best restaurants, which can attract visitors from a target geographic area. Icehower also recommends local-oriented checklists, recreation guides, LEADS Continued on page 26 BAKERSFIELD REALTOR® MAGAZINE

Why Switch to a Responsive Real Estate Website It would be putting it lightly to say that Google’s recent update about mobile-friendly sites has left many website-owners bewildered and frightened. Maybe you set up a site as recently as a couple years back, and it was pretty cuttingedge and snazzy at the time. Now, you’re being told that you’ll be shut out by Google – a company that’s practically synonymous with the term “search engine” and an industry giant that boasts over two-thirds of the search engine market share? Why can’t they pick on someone their own size? Before you decide to throw in the towel, and go back to advertising on matchbooks, consider two things: n Google is simply doing its job, which is directing web users to helpful sites. As mobile device use has commanded the majority of web traffic since January 2014, Google is just trying to accommodate its users by directing mobile users to sites that work well with their devices. If you’ve ever viewed a non-mobilefriendly site on a smartphone screen, you know what a royal pain this can be: pinching, zooming, scrolling – and even then, you need a finger the size of a Tic Tac Candy to tap the buttons. Google’s continuing success can be attributed to how it has adapted to changes in market trends and the ways that we interact with technology; if they didn’t, competitors willing to do so would soon leave them in the dust. n You might have absolutely no reason to worry, at all (for awhile, anyways). Many of our sites are already mobile optimized, in that they automatically direct users on handheld devices to a mobile-friendly version of the original site. These scaled-down versions of real estate sites offer much of the same content and IDX search functionality as their desktop counterparts, albeit with a simplified navigation menu and larger buttons that are easy to navigate with just your thumbs. As such, these sites are in full compliance with Google’s current Mobile Optimization Guidelines.

Of course, if your real estate site is not mobile friendly, then it’s probably the perfect time to give your site the makeover it deserves. For those of you who are unfamiliar with the term, “responsive” denotes an approach to site design in which the site’s layout is programmed to automatically adapt to any screen size, from smartphones to 34” ultra-wide desktop monitors, and everything in between. While Google doesn’t require all mobile-friendly sites to utilize responsive design, they’ve indicated a growing preference for it, and there are no shortage of advantages to making this switch: TOP EIGHT REASONS TO GO RESPONSIVE As mentioned previously, Google has made no secret that they like responsive design, a lot. Google has indicated a growing preference for responsive web design. The adaptability of responsive sites makes for a very user-friendly experience on any screen size. A more user-friendly browsing experience can significantly decrease a site’s bounce rate. Expand your audience to mobile/tablet users who may have previously avoided your older, non-responsive site. Making changes to a single responsive site is often much less time-consuming than applying the same changes to separate desktop and mobile sites. Today’s popular social and blogging channels are sure to bring in more mobile visitors; a responsively designed-site will help to keep them engaged, and keep your site’s bounce rate low. More and more potential clients are surfing the web on mobile devices than desktop computers. A joint study from Google and the National Association of REALTORS® found 89% of new home shoppers use a mobile search engine at the start and throughout their homebuying research. A 2014 study found that 27% of home buyers found their home via mobile searches; if you’re not visible to nearly a third of prospective leads, count on them going to your competitors. Stay competitive. Get a jump on your competition and position your site to be favored not only by Google, but the rapidly-growing number of online mobile users. Get your site redesigned or just upgrade it to a responsively-designed site, but don’t wait, do it now! SOURCE: idxcentral.com

LEADS Continued from page 25

statistics, and features on spotlighted neighborhoods.

Use Email Marketing to Capture Leads The best way to transform your site visitors into leads is by combining your content marketing strategy with an effective email marketing strategy. One proven way to do this is by offering a free report that shares information related to your blog as an incentive for opting into your email list. Once subscribers are on your list, you can build a relationship with them by sharing updates along with other content relevant to their interests, such as tips on mortgage financing, negotiating a home price, and new local developments. OutboundEngine product marketing manager Travis Balinas says a newsletter featuring this type of content generates a higher open rate than announcements about new home listings. He stresses that a good real estate newsletter should be characterized by informative content, strong subject lines, a visually appealing look, clear contact information, and calls to action that make it easy for readers to get in touch with you or share your emails with prospective referrals. AUTHOR BIO: Tracey C. Velt is a writer, blogger and editorial strategist who specializes in the business of real estate. For the past 10 years, she’s been writing and editing for REAL Trends, is the editor of the REAL Trends blog and the editor of LORE magazine. Prior to that, she served as an editor for Florida Realtor magazine and continues to contribute to multiple real estate publications, both in print and online. This article reprinted with permission of REAL Trends Inc. Copyright 2015.

BAKERSFIELD REALTOR® MAGAZINE

Welcome, New Members!

SUCCESS

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

CONGRATULATIONS TO OUR NEW REALTORS® JUNE: Saeeda Abbas, Coldwell

Banker Preferred – WB; Joel Brock, Tobias Real Estate; Saron Collom, Miramar International – Truxtun; David Cullifer, Miramar International; Joseph Fanous, Tholco Real Estate Group; Justin Fortier, Watson Realty, ERA; Francisco Gomez Jr., Miramar International – Panama Lane; Jonathan Green, Miramar International – Marketplace; Andrea Lee, RE/MAX Golden Empire; Joseph Lopez, Joseph Lopez, Broker; Marilyn Packer, Williams Development, Inc.; Fernando Padilla, Executive REALTORS®; Tomas Piedra, Dream Home Realty; Peter Recicar, Tholco Real Estate Group; Lisa Rodriguez, Fenton Real Estate; Renee Schuyler, Tholco Real Estate Group; Vicki Swart, Coldwell Banker Preferred – CO; Dana Weir, Tholco Real Estate Group; Linda Wells, Miramar International – Downtown; Jeremy Wright, Keller Williams – Bakersfield; Darwin Young, Miramar International – Mill Rock; Catalina Zamora, Coldwell Banker Preferred – Westwind; Marisol Donate – Ziranda, Golden Valley Real Estate Group

JULY: realtors ®

JUNE

realtors ®

JULY

Grant Armstong, Watson; Realty ERA; Amanda Boschma, Keller Williams Realty; Ashley Bradley, Miramar International; Esmeralda Cardenas, Miramar International; Benjamin Chaidez II, Mckinzie Nielsen; Lizbeth Comery, Tholco Real Estate Group; Kelly Custer, Castle & Cooke; Sarah Etcheverry, Blue Sky Real Estate; Mike Grigg, Accelerated Home Sales; Norma Gutierrez De Bolanos, Magic Real Estate; Victoria Johnson, Keller Williams Realty; Cynthia Lyons, Keller Williams Realty; Judy Marchbanks, Kern Realty Bakersfield; Martin Martinez, Miramar International - Mill Rock; Nicholas Megazzi, Watson Realty ERA; Kennie Pounds, Coldwell Banker Preferred- Coffee; Jerome Preston, Tholco Real Estate Group; Paul Robles, Watson Realty ERA; Sylvia Rodriguez, Coldwell Banker Preferred - Coffee; Mark Schutzner, Watson Realty ERA; Ronnie Soriano, Re/Max Golden Empire; Robert Spasiano, Miramar International; Juan Torres, Century 21 Vision Realty; Eddie Watson, RE/MAX Golden Empire; Jeffrey Williams, Williams Development, Inc.; David Wilson, Wilkerson Realty

MEMBER BENEFIT

WE PROMOTE

YOU

We Market the REALTOR® Brand and Home Ownership The 2015 Marketing and Communications plan focuses on continuing to build a positive public image of our industry and our members. Our values and our brand are actively communicated to the public through consistent advertising in the Bakersfield Californian, Bakersfield Life Magazine, the Kern County Business Journal, Bakersfield Magazine, and other publications and directories. Since January 2015, the Association has published over 25 advertisements. The messages are crafted so that they represent who we are and reflect our values. Some of these exciting and flexible marketing collateral pieces have been designed with the intent of building brand awareness, promoting the benefits of using a REALTOR®, the realtor.com® website, and enhancing REALTOR® professionalism and their services. All pieces are done with the intent of developing and striving for inviting and interesting solutions which mirror the Association’s core values and purpose. The variety of communications is also designed to enhance the REALTORS® Code of Ethics and level of professionalism. In addition to this valuable publicity, the Board of Directors has proactively created new programs and partnerships that demonstrate our commitment to our community. These programs and partnerships help promote our members and the real estate profession.

member benefits

BAKERSFIELD REALTOR® MAGAZINE

TRACEY VELT | REALT TRENDS

s a real estate agent, you have a challenging job. You’re responsible for making sure a client’s home gets sold so she can take the job opportunity of a lifetime in another state, or it’s up to you to find the dream home for a client and his family. You deal with individuals’ livelihoods, financial futures, and aspirations. It’s obvious you should be on time, polite, and thorough with each person who uses your services, but this bare minimum isn’t enough if your goal is to truly establish a connection with your clients. In order to be the person they turn to for home buying and selling, and moral support throughout these complex processes, here are three steps you need to take.

1. Be Accommodating

As you intimately know, real estate revolves largely around scheduling. When clients miss appointments or have to reschedule, it can be aggravating. Your time is valuable, so your inclination might be to respond in a less than favorable way to these circumstances. Take a moment and remember that your client is about to make one of the biggest decisions—and purchases—in his lifetime. Stay flexible to help the process move forward smoothly. To that end, make scheduling a straightforward process. If your client is of an older generation and prefers to make appointments over the phone, strive to be available that way. If your client is a millennial, consider setting up an online scheduling system like TimeTrade, so the younger folks can jump online to reserve time with you instead. They’ll appreciate you meeting them through the medium that is most convenient based on personal preference, and you’ll have an easier time managing your calendar.

2. Be Thoughtful

Think of a friend who is especially considerate to you and hyper-aware of your feelings. What does that person do to make you feel special? With your clients, it’s crucial to acknowledge them as human beings and act as that friend. If one client was outbid on a house she had her

3 Ways

to Create Rapport with Your Clients heart set on, express your understanding of her disappointment and send a gift basket to let her know you’re thinking of her. A kind gesture like that will boost her spirits and remind her that you’re on her team. Another way to be particularly attentive is by listening. Pay attention to what your clients tell you during the times you’re casually chatting. Did a college student mention how close he is with his parents who live downtown? Keep this in mind when looking into what areas to recommend to him. Did the new family you’re working with drop a hint they’re trying to conceive? Think about gathering a list of daycare

facilities and schools to share with them so they know what’s nearby. Instead of merely looking for attributes and features that are specifically requested, try to anticipate potential wants and offer ways to satisfy them.

3. Be Calm and Optimistic

It may be surprising, but sometimes what a client needs most of all is to know that you’ve been through this experience many times before. If financing isn’t shaping up how they want it to, if their house isn’t attracting buyers, or if they’re simply having a hard time finding everything they want in one home, frustration can set in. Clients don’t understand the real estate market like you do, and can be tempted to give up entirely when setbacks come their way. It’s up to you to encourage clients to trust the process and stay on course. Emanating a sense of calm, and speaking with the right blend of realism and optimism can do wonders to quell their annoyance and fears. It’s been said that home is where the heart is and, though cliché, this statement holds true for many people. A place of residence is often a safe haven, not to mention a considerable financial investment. With such important decisions on the line, your clients are looking for someone to lead the way, hold their hands, and give them a little beyond polite professionalism. Whenever possible, accommodate scheduling requests and changes, devote extra thought to clients’ needs, and be a strong beacon of calm amid potential chaos. Your clientele will appreciate you more, and your roster of lifelong clients is likely to grow as well. ABOUT THE AUTHOR: Tracey C. Velt is a writer, blogger and editorial strategist who specializes in the business of real estate. For the past 10 years, she’s been writing and editing for REAL Trends, is the editor of the REAL Trends blog and the editor of LORE magazine. This article reprinted with permission of REAL Trends Inc. Copyright 2015. BAKERSFIELD REALTOR® MAGAZINE

We’re promoting realtor.com… because they’re promoting you!

Take a moment to set-up your profile. It’s easy and it’s free! Go to www.realtor.com/realestateagents

Hit Your Target Market!

You can’t miss by advertising with the Bakersfield Association of REALTORS®

Start marketing and promoting your company today with the Bakersfield Association of REALTORS®.

The Association has over 1,600 REALTOR® and Affiliate members. We offer many ways for you to actively communicate your company’s brand and marketing message directly to our members. Every week we host a variety of activities, classes, and events. Reach your target market in effective and affordable ways. Consider one of our many opportunities.

SPONSORSHIP OPPORTUNITIES: PRICES RANGE PER ACTIVITY n Newsletter n Educational

Classes

n Networking

Activities

n Community

Outreach

n Special

Events

FOR ADVERTISING INFORMATION OR AD SIZES, PLEASE CONTACT: Carol Duran at 635-2307. Communications Design and Development.

Call now at 661-635-2307

BAKERSFIELD REALTOR® MAGAZINE

MEMBER RATES PUBLIC WEBSITE Member Advertising Rates Feature Ad (2 week period)

$200

Home Page (2 week period)

$150

REALTOR ® WEBSITE Member Advertising Rates Home Page Ad

$125/mo

Entire Site Ad

$85/mo

CONNECTIONS NEWSLETTER Eblast: Member Newsletter

1 time run

$60/blast

4x consec. run

$200/mo

THEATEAM

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 1st Thursday Brew & Breakfast. 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.

SHERYL GALLION Ticor Title 661.342.7802

sgallion@ticortitle.com

CHEREYL NUNN

Wells Fargo Home Mortgage 661.664.5300

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

MIKE GEORGE

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

SUZI BEATY

Agape Mortgage 661.324.2427

Fidelity National Home Warranty 661.477.3906

mikegeorge@agapemtgco.com www.agapemtgco.com

suzi.beaty@fnf.com

JANETTE RAMSEY

JEFF AGUILERA

janette@jramseyinsurance.com PersonalExpressNorthwest.com

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

Personal Express Insurance 661.328.9250

Bank of America 661.282.4677

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

Michele Cooper

Chevron Valley Credit Union mcooper@chevronvalleycu.com 661.900.2358

BARBARA WELLS, Vice Chair San Joaquin Valley Mortgage 661.703.2227 bwells@sjvalleymortgage.com

You can be a part of The A Team too! Call MikeCooper Georgeatat661.900.2358 324- 2427 forfor more information Call Michele more information

BAKERSFIELD REALTOR® MAGAZINE

1,400 1,200

HOUSING MARKET 1,000

STATEOFTHE

800 600 400 200 0

CONTINGENT

2,000

1,800

1,800 1,600 1,400

2015

1,600

2015

2014

1,400

2014

1,200

1,000

800

800 600

600

400

200

ACTIVE

2014 Compared to 2015 by MLS Area PENDING SOLD

0 ACTIVE

MAY 2015 May All Areas 1,800

CONTINGENT

PENDING

SOLD

ACTIVE

CONTINGENT

PENDING

SOLD

JUNE 2015 JuneAll Areas June 2015

2,000

% Year over Year% Year over Year % Year over Year% Year over Year 2014 2015 2014 2014 Change Change Change Change % Year over Year% Year over Year % Year over Year% Year over Year May Active May 1,737 2015 2015 2014 2014 June Active June 1,896 2015 2015 2014 2014 Active 1,737 1,402 1,402 23.9% 23.9%Active 1,896 1,462 1,462 29.7% 29.7% 2015 Change Change Change Change 1,600 Contingent Contingent 307 307 345 345 -11.0% -11.0%Contingent Contingent 315 315 356 356 -11.5% -11.5% Active Active 1,737 1,737 1,402 1,402 23.9% 23.9%Active Active 1,896 1,896 1,462 1,462 29.7% 29.7% 2014 1,400 Pending Pending 1,238 1,238 1,146 1,146 8.0% 8.0% Pending Pending 1,229 1,229 1,045 1,045 17.6% 17.6% Contingent Contingent 307 307 345 345 -11.0% -11.0%Contingent Contingent 315 315 356 356 -11.5% -11.5% 1,200 Sold Sold 676 676 685 685 -1.3% -1.3%Sold Sold 706 706 636 636 11.0% 11.0% Pending Pending 1,238 1,238 1,146 1,146 8.0% 8.0% Pending Pending 1,229 1,229 1,045 1,045 17.6% 17.6% Total Volume Closed Total Volume$157,112,117 Closed $157,112,117 $145,910,468 $145,910,468 7.7% 7.7% Total Volume Closed Total Volume$155,464,787 Closed $155,464,787 $135,324,234 $135,324,234 14.9% 14.9% 1,000 Sold Sold 676 676 685 685 -1.3% -1.3%Sold Sold 706 706 636 636 11.0% 11.0% Median Sales Price Median * Sales $220,000 Price * $220,000 $200,000 $200,000 10.0% 10.0%Median Sales Price Median * Sales $210,000 Price * $210,000 $204,990 $204,990 2.4% 2.4% Total Total Volume$157,112,117 Closed $157,112,117 $145,910,468 $145,910,468 7.7% 7.7% Total Volume Closed Total Volume $155,464,787 Closed $155,464,787 $135,324,234 $135,324,234 800Volume Closed 14.9% 14.9% Average DOM *Average DOM * 43 4344 44-2.3% -2.3%Average DOM *Average DOM * 37 3740 40-7.5% -7.5% Median Sales Price Median * Sales $220,000 Price * $220,000 $200,000 $200,000 10.0% 10.0%Median Sales Price Median * Sales $210,000 Price * $210,000 $204,990 $204,990 2.4% 2.4% 600 May 2015

Average DOM *Average DOM * 43

400

200 Bakersfield 0

Sold

4344

44-2.3%

-2.3%Average DOM *Average DOM * 37

3740

40-7.5%

-7.5%

Bakersfield

MayACTIVE

May 2015 CONTINGENT

May Sold

May 2015 594

Total Volume Closed Total Volume$142,941,248 Closed Sold Sold 594 Median Sales Price Median * Sales $229,000 Price * Total Volume Closed Total Volume$142,941,248 Closed Average DOM *Average DOM * 42 Median Sales Price Median * Sales $229,000 Price * * Figures from Single Family Homes Only. Average DOM *Average DOM * 42 Statistics were run on July 24, 2015. * Single Family * Only Single Family Only * Single Family * Only Single Family Only

2015 2014

BAKERSFIELD REALTOR速 MAGAZINE

% Year over Year% Year over Year % Year over Year% Year over Year 2015 2014 2014 June June 2015 2015 2014 2014 P ENDING SOLD Change Change Change Change % Year over Year% Year over Year % Year over Year% Year over Year 2015 2014 June Sold June 2015 2015 2014 2014 2014 594 587 587 1.2% 1.2% Sold 621 621 544 544 14.2% 14.2% Change Change Change Change $142,941,248 $129,024,113 $129,024,113 10.8% 10.8%Total Volume Closed Total Volume$140,033,731 Closed $140,033,731 $121,116,437 $121,116,437 15.6% 15.6% 594 587 587 1.2% 1.2% Sold Sold 621 621 544 544 14.2% 14.2% $229,000 $209,950 $209,950 9.1% 9.1% Median Sales Price Median * Sales $220,000 Price * $220,000 $215,000 $215,000 2.3% 2.3% $142,941,248 $129,024,113 $129,024,113 10.8% 10.8%Total Volume Closed Total Volume$140,033,731 Closed $140,033,731 $121,116,437 $121,116,437 15.6% 15.6% 4241 412.4% 2.4% Average DOM *Average DOM * 35 35 38 38-7.9% -7.9% $229,000 $209,950 $209,950 9.1% 9.1% Median Sales Price Median * Sales $220,000 Price * $220,000 $215,000 $215,000 2.3% 2.3% uses Codes: 93301, 93302, 4241 412.4% 2.4% Average DOM *Bakersfield Average DOM * the 35 following Zip35 38 38-7.9% 93303, 93304, -7.9% 93305, 93306, 93307, 93308, 93309, 93310, 93311, 93312, 93313 93314.

2015 YEAR-TO-DATE STATS Area

Dollar Value

# Sold

Average Sold Price*

DOM*

2015

2014

2015

2014

2015

2014

2015 2014

131

114

$23,347,194

$14,412,484

$183,887

$131,975

$7,859,276

$6,407,532

$93,278

$87,828

115

126

$18,054,700

$18,522,995

$158,763

$3,112,650

$2,592,600

164

143

$22,154,945

257

294

121

% of List Price* 2015

2014

97.54

98.35

97.02

97.27

$150,963

98.41

98.63

$320,850

$216,050

95.44

99.11

$18,541,073

$135,091

$130,043

98.98

98.09

$44,589,450

$47,282,126

$178,707

$168,571

98.49

97.72

104

$26,711,781

$19,982,989

$227,076

$199,506

98.41

99.55

$10,887,020

$8,057,212

$297,417

$274,904

97.27

98.44

$10,326,790

$9,183,891

$116,031

$122,992

97.88

98.11

$9,398,572

$8,705,706

$156,443

$138,357

98.26

97.85

$225,000

$1,310,000

$112,500

$151,250

88.58

97.54

290

301

$39,475,109

$41,257,442

$146,199

$141,860

98.29

99.30

740

$149,164,943

$140,004,970

$212,584

$200,348

98.53

98.80

394

384

$124,089,147

$118,374,440

$318,093

$310,770

97.81

98.68

$4,367,146

$2,435,062

$335,934

$304,383

99.48

100.59

109

111

$28,700,589

$27,809,990

$263,308

$250,540

97.76

98.31

546

568

$158,098,589

$165,425,936

$290,040

$292,175

98.37

98.95

238

197

$81,928,285

$64,451,647

$350,697

$331,542

98.37

98.85

$3,924,929

$2,473,221

$392,493

$330,746

97.25

97.73

$15,945,792

$11,728,860

$269,674

$215,895

97.23

97.60

$510,000

$2,132,000

$255,000

$209,600

230

93.07

94.54

$1,720,920

$883,840

$87,113

$83,871

96.31

94.43

$2,341,914

$3,345,800

$130,106

$165,858

95.92

95.69

$3,871,000

$3,756,860

$124,871

$110,496

96.81

99.24

$1,880,000

$1,734,500

$376,000

$346,900

142

93.17

97.18

$778,300

$233,500

$111,186

$77,833

95.66

89.70

$2,593,001

$1,376,507

$186,667

$228,719

92.18

98.40

118

144

$21,147,325

$23,599,805

$180,533

$166,804

99.01

98.04

$9,659,470

$8,848,650

$122,789

$100,824

96.47

96.49

106

$17,604,022

$13,808,550

$167,053

$140,904

98.12

97.42

$18,010,427

$17,996,680

$267,066

$223,277

97.98

95.88

* Figures from Single Family Homes Only. Statistics were run on July 24, 2015.

QUARTERLY COMPARISONS 1st Qtr 2015 New Listings Contingent Pending Sold Total Volume Closed Median Sales Price * Average DOM * Average Sale Price/SqFt *

2,836

1st Qtr 2014 2,644

2nd Qtr 2015 3357

2nd Qtr 2014

3rd Qtr 2015

3rd Qtr 2014

4th Qtr 2015

4th Qtr 2014

2,912

672

715

780

710

1,856

1,851

2175

2,075

1,494

1,527

2,001

1,956

$306,079,332

$305,762,885

$448,919,995

$406,083,344

$197,000

$188,000

$215,000

$190,000

127.07

120.50

130.96

122.19 BAKERSFIELD REALTOR速 MAGAZINE

IN A NUTSHELL Improving economy and job growth draw home buyers back to the housing market, forming more households, REALTOR® survey finds. CALIFORNIA ASSOCIATION OF REALTORS®

With an improving economy and job market over the past year, home buyers have started forming households again, and buyers who previously experienced a foreclosure or short sale are back in the housing market, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) “2015 Survey of California Home Buyers.” In 2015, more households were formed, as the share of buyers who previously lived with their parents increased to 12% (the highest in the survey’s history), up from 2% in 2014. Additionally, the share of those who previously rented dipped from 40% in 2014 to 39% in 2015; and, those who previously owned fell from 59% in 2014 to 47% in 2015. With distressed sales at record lows, California is returning to a more normal housing market, with those who previously went through a foreclosure or short sale returning to the market and purchasing homes again. More than one in five home buyers (22%) experienced a distressed sale, most occurring after 2007. A further indication of this return to normalcy is reflected in the share of buyers who were previously “underwater” on their homes, which increased to 23% in 2015, up from 4% in 2014. Additional findings from C.A.R.’s “2015 Survey of California Home Buyers” include: n In what could further exacerbate a future housing inventory shortage, buyers in 2015 indicated they plan to keep their home longer than ever – an average of 20 years – substantially longer than the 6 years cited by home buyers in 2013. n Buyers cited “tired of renting” (15%), “wanted a place to live” (14%), “desired larger home” (12%), “changed jobs/relocated” (11%), and “desired better/other location” (8%) as the top reasons for purchasing a home. In looking specifically at first-time buyers, “tired of renting” was the top reason for purchasing a home (21%), followed by “wanted a place to live” (19%). n Despite the recent run up in home prices, the vast majority (85%) felt that their home was worth the price they paid, while 14% said the price was too high, and 1% said the price was too low. n While the majority of buyers (75%) were satisfied with their home purchase, one-fourth made compromises, with 13% saying they selected the best house, given the limited supply in their desired neighborhood, and 12% who said they selected the best house in an affordable neighborhood because prices were

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STORIES AT-A-GLANCE FOR REALTORS ®

too high in their preferred neighborhood. n Buyers put an average of 24% down on their home purchase in 2015, down from 28% in 2014, and 25% in 2013, but more than what has been the traditional 20% since 2009. n The primary source of down payment for firsttime buyers was personal savings, cited by 49% of first-time buyers, followed by “borrowed or gift,” cited by 33% of first-time buyers. The primary sources of down payment for repeat buyers were personal savings (34%) and proceeds from sale of previous residence (34%). n Buyers spent an average of 18 weeks considering buying a home before contacting a real estate agent in 2015, down from an average of 19 weeks in 2014, and a high of an average of 24 weeks in 2013. They spent an average of 14 weeks investigating homes and neighborhoods before contacting an agent in 2015, down from an average of 21 weeks in 2014, and a high of an average 29 weeks in 2013. n In 2015, it took home buyers an average of 12 weeks to look for a home, the longest since C.A.R. began the survey. It took an average of 10 weeks in 2014 and 2013 for home buyers to find a home. In a sign of less market competition, buyers made fewer offers in 2015 compared to previous years – an average of 2.6 offers, down from an average of 3.6 offers in 2014, and an average of 3 offers in 2013. The 2015 Survey of California Home Buyers was conducted by telephone and email to nearly 1,300 people statewide to measure their perceptions of the home-buying process. All eligible respondents closed escrow on their homes between February 2014 and February 2015. Access the full report on the survey findings here: http://www.car.org/ marketdata/surveys/buyer/ and view the webinar presentation here: http://www.car. org/marketdata/videos. Leading the way...in California real estate for 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 175,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

Pending Home Sales Cool Off Slightly After five consecutive months of increases, pending home sales reversed course and dropped in June, a slight ease to what has been a red-hot housing market, according to the National Association of REALTORS®’ Pending Home Sales Index, a forward-looking indicator based on contract signings. June’s pending home sales, however, remained near May’s level, which was the highest in more than nine years. Pending home sales showed slight gains in the

Northeast and West, but were offset by larger declines in the Midwest and South, NAR reports. NAR’s Pending Home Sales index nationwide dropped 1.8% to 110.3 in June; it is still 8.2% above levels one year ago. Lawrence Yun, NAR’s Chief Economist, states that despite the dip in pending sales in June, the overall trend has been a solid pace of home sales this summer. “Competition for existing houses on the market remained stiff, as low inventories in many markets reduced choices and pushed prices above some buyers’ comfort level,” Yun says. “The demand is there for more sales, but the determining factor will be whether or not some of these buyers decide to hold off even longer until supply improves and price growth slows.” The national median existing-home price for all housing types in 2015 is expected to rise about 6.5% to $221,900 -- which would match the record high set in 2006, NAR reports. A boost in existing-home sales is coming from pent-up sellers who are now realizing equity gains, Yun adds. “Strong price appreciation and an improving economy is finally giving some homeowners the incentive and financial capability to sell and trade up or down,” says Yun. “Unfortunately, because nearly all of these sellers are likely buying another home, there isn’t a net increase in inventory. A combination of homebuilders ramping up construction and even more homeowners listing their properties on the market is needed to tame price growth and give all buyers more options.” SOURCE: NATIONAL ASSOCIATION OF REALTORS®

Home Prices Reach an All-Time High

The rise in buyer demand, combined with a limited number of homes for sale, pushed the national median sales price above its 2006 peak and to a record high, according to the National Association of REALTORS®. The median existing-home price for all housing types reached $236,400 in June – 6.5% above year-ago levels and surpassing the peak median sales price set in July 2006 at $230,400. Along with a boost in home prices recently, existing-home sales also reached the highest pace in more than eight years. Lawrence Yun, NAR’s Chief Economist, calls this year’s spring buying season the strongest since the downturn. “Buyers have come back in force, leading to the strongest past two months in sales since early 2007,” Yun says. “This wave of demand is being fueled by a year-plus of steady job growth and an improving economy that’s giving more households the financial wherewithal and incentive to buy.”

Yun says that June’s sales also likely got a boost by the spring’s initial phase of rising mortgage rates. That “usually prods some prospective buyers to buy now rather than wait until later when borrowing costs could be higher,” Yun says. Total sales of completed single-family, townhome, condo, and co-op transactions ticked up 3.2% last month to a seasonally adjusted annual rate of 5.49 million and are nearly 10% above year-ago levels. Sales are also at the highest pace since February 2007. All major regions of the U.S. saw sales move higher in June. The number of homes for sale across the country remains low, as housing inventories only saw a 0.9% increase in June to 2.30 million existing homes for sale. Inventories are 0.4% higher than a year ago. Unsold inventory is at a 5-month supply at the current sales pace. “Limited inventory amidst strong demand continues to push home prices higher, leading to declining affordability for prospective

buyers,” says Yun. “Local officials in recent years have rightly authorized permits for new apartment construction, but more needs to be done for condominiums and single-family homes.” But with inventories still low, properties are selling faster. Forty-seven percent (47%) of homes sold in less than a month in June, according to NAR. Properties typically stayed on the market for 34 days in June, the shortest number of days since NAR began tracking in May 2011. Short sales had the longest days on the market with a median of 129 days, while foreclosures sold in 39 days. Non-distressed homes were on the market for 33 days. Chris Polychron, NAR’s president, says that real estate professionals are reporting drastic imbalances of supply compared to buyer demand in several metro areas, most notably in the West. “The demand for buying has really heated up this summer, leading to multiple bidders and homes selling at or above the asking price,” Polychron says. “Furthermore, tight

Regional Breakdown of

Existing-Home Sales June 2015

Median price: $281,200

annual rate of $720,000

4.7%

annual rate 1.33 million

Median price: $190,000

SOURCE: National Association of REALTORS®

South

4.3%

Midwest

2.3%

annual rate 2.20 million

Median price: $205,000

West

Northeast

2.5%

annual rate 1.24 million

Median price: $328,900

inventory conditions are being exacerbated by the fact that some homeowners are hesitant to sell because they’re not optimistic they’ll have adequate time to find an affordable property to move into.” SOURCE: NATIONAL ASSOCIATION OF REALTORS®

A Town’s Walkability Becomes More Key

You may want to highlight the walkability of a neighborhood and area, particularly when you’re working with first-time buyers and young adult clients. Millennials are showing a strong preference to walking over driving, and by substantially wider margins than any other generation, according to a new poll of 3,000 adults living in the 50 largest metro areas conducted by the National Association of REALTORS® and the Transportation Research and Education Center at Portland State University. Millennials, those aged 18 to 34, prefer walking as a mode of transportation by 12 percentage points over driving. They also prefer living in attached housing, living within walking distance of shops and restaurants, and having a short commute, according to the 2015 National Community and Transportation Preference Survey. They’re also more likely than other age groups to use public transportation. “REALTORS® don’t only sell homes; they sell neighborhoods and communities,” says NAR President Chris Polychron. “REALTORS® aid in improving and revitalizing neighborhoods with smart growth initiatives, helping create walkable, urban centers, which is what more Americans want in their neighborhoods. While there is no such thing as a one-size-fits-all community, more and more homebuyers are expressing interest in living in mixed-used, transit-accessible communities.” The survey found that all age groups are showing a stronger preference for walkable communities than in the past. Forty-eight percent (48%) of survey respondents said they would prefer to live in a community that has homes with small yards that are within easy walking distance to amenities over communities that have homes with large yards that require you to drive to all amenities. Americans say they desire more choices when it comes to transportation options in their community, whether that’s walking, biking, or driving. Eighty-five percent (85%) of respondents said that sidewalks are a positive feature they look for when purchasing a home, and 79% said finding a place that is within easy walking distance of places is also important. Women showed the highest preference for walkability, with 61% saying that the availability of sidewalks with stores and restaurants to walk to is very important to them. SOURCE: NATIONAL ASSOCIATION OF REALTORS® BAKERSFIELD REALTOR® MAGAZINE

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