REALTOR Magazine June July 2017 by Bakersfield Association of REALTORS®

J U N E | J U LY 2 0 17

INSIDE

Legislative Topics Hot Issues Affecting You

Beyond 2017

Will We Run Out of Housing?

BRE Regulations Regarding Team Names

Social Media

Know Where to Invest

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CONTENTS

2017 OFFICERS

President Midge Jimerson Boydstun Realty Co., Inc.

Bakersfield REALTOR® Magazine LEGISLATIVE DAY IN SACRAMENTO

President-Elect Derek Sprague Mossy Oak Properties Vice President Athena Collup Miramar International — Mill Rock Secretary/Treasurer Ronda Newport Miramar International — Mill Rock Immediate Past President Bill Redmond Watson Realty ERA

PAC CONTRIBUTORS Each year we like to recognize those who have contributed.

Chief Executive Officer Linda Jay

2017 Directors

Anna Albiar Coldwell Banker Preferred, Coffee

RUDY SALAS believes he has a duty to give a voice to the voiceless. Why he voted against the gas tax.

William Chicas Watson Realty ERA Scott Knoeb Frontier Real Estate Services, Inc.

Wayland Louie RE/MAX Golden Empire

JEANNE RADSICK… runs for C.A.R. 2019 President Elect.

Kevin Palla Broker Darlene Tobias Century 21 Tobias Real Estate

Brian Tuttle Coldwell Banker Preferred – Coffee

YPN IN SACRAMENTO Snapshots from Legislative Day in Sacramento.

Ashley Weaver Karpe Real Estate Center

J U N E | J U LY 2 0 17

ON THE COVER

The Bakersfield Association of REALTORS®’ delegation joined fellow REALTORS® from across the nation to attend meetings and visit with regulators and lawmakers on Capitol Hill.

INSIDE

Legislative Topics Hot Issues Affecting You

Beyond 2017

Will We Run Out of Housing?

BRE Regulations Regarding Team Names

Social Media

Know Where to Invest

R E A LT O R S ® A DVO CAT E IN G OV E R N M EN T R EL AT I O N S AN D AR E T H E VO I C E O F R EAL ES TAT E

STOP SELLING AND START SOLVING People love to buy, but they hate to be sold. So, stop selling!

YPN HITS IT OUT OF THE BALLPARK Check-out a few snapshots from the tournament.

WHO ARE today’s successful CEO’S.

MILLENIALS They move less, but rent more.

WHAT OR WHO is your most important business asset?

TEAM BRINGING HOME THE CURE GIVES BIG donate over $50,000.

SCHOLARSHIPS Meet award recipients.

Executive Editor - Linda Jay, CEO, RCE 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.com facebook.com/bakersfieldrealtors twitter.com/bakorealtors

LETTER FROM THE PRESIDENT

What does the number

9,800 mean to you? H

ow does it make you feel to know that 9,800 REALTORS® attended the National Association of REALTORS® Legislative Days and spent a week in Washington D.C. working hard to protect you in the practice of real estate? Aren’t you amazed that there are so many REALTORS® concerned about what affects YOU in your day-to-day business of selling real estate. That they were willing to take the time away from their own businesses and their families to go to Washington D.C. to educate our legislators on hot topic issues like private property rights, mortgage interest deduction, flood insurance, and our most current issue – Property Assessment Clean Energy Act (PACE). Not only did 9,800 REALTORS® from all over the United States meet in Washington D.C., two weeks prior, more than 2,000 REALTORS® from all over the State of California held their Legislative meetings in Sacramento. There are always so many ideas exchanged, different issues and problems that vary from one end of the state to the other. It is at the state level that we look closely at bills that have been introduced that could impact our industry, private property rights, homeownership, and the consumers at-large. We have discussions, and sometimes robust debates, on hot topic issues, but at the end of the day the C.A.R. directors come to a consensus that empowers C.A.R. to move forward and lobby for

BAKERSFIELD REALTOR® MAGAZINE

or against these potential new laws. I’m sure you are wondering….so what’s the big deal? I’ll bet you think our legislative leaders are supposed to fully know each proposed bill they will be voting on and how it will affect our industry…and we hope they do know. We should all hope and pray that each of our representatives give all proposed bills they will be voting on careful consideration; that they have read and reviewed any facts and information pertinent to what they will be voting on. However, I have witnessed firsthand how important it is to get face-to-face with our assemblyperson, congressional representative or our senator; to advocate our position, and be able to inform and educate our governmental leadership on the impact of their vote. This comes from advocacy. This comes from 9,800 REALTORS® looking out for what happens in our day-to-day business. This comes from 9,800 REALTORS® fighting against those potential threats to the American Dream of home ownership and private property rights. The question is, that while 9,800 REALTORS® are in Washington D.C. working to protect the very industry you work in, what are you doing to help? You too can be involved. 1) You can start by supporting the REALTOR® Action Fund (RAF). This is the $148 that is the “true cost of doing business”. The purpose of the RAF is to raise money to advance the goals of our REALTOR®

political action committees at the local, state and federal levels. 2)You can make sure you, and all REALTORS® you know, are registered to vote – there are more than 36,000 REALTOR® members in the state of California that are not registered to vote. 3) Respond to Red Alerts and Calls for Action. This is when C.A.R. asks REALTORS® to call their legislators to support or oppose proposed bills. It is so easy to do and doesn’t take more than a couple of minutes of your time. 4) If you are a broker, join the REALTORS® Broker Involvement Program. C.A.R. will contact brokers so they can alert and urge their agents to look for and respond to a Red Alert email. 5) For those of you who are Twitter fans, you can follow @CARGovAffairs on Twitter. Social media is also a great way to broadcast a Red Alert. Except for #1, all of the rest of these are FREE and easy to do! I am a proud member of the REALTOR® party and I am a proud American. It was an honor to represent the Bakersfield Association of REALTORS® in Washington D.C. To be in Washington at our nation’s Capitol is so inspiring and humbling! Getting the opportunity to walk in the halls of our nation’s Capitol and visiting historical monuments is an incredible experience. But more importantly, to be among 9,800 REALTORS® from all across the United States, including, Hawaii, Puerto Rico and Guam, is without a doubt an awesome experience!

LETTER FROM THE CEO

Changing the narrative…

t our recent NAR Legislative Meetings in Washington, DC, the Association’s leadership team attended a highly informative Federal Legislative & Political Affairs Forum presented by NAR’s Government Affairs staff under the leadership of Senior Vice President and Chief Lobbyist Jerry Giovaniello. Evan Liddiard, Senior Policy Representative for Tax Issues, began his session by displaying a beautiful photo of an impressive iceberg, intriguingly entitled “More than meets the eye”. His topic addressed the new proposed federal tax plan and included a caution that there is always more to an issue than what is visible on the surface at first glance. That image was very thought-provoking. Considering the overall complexity of our industry and the challenges with which we are faced, how often do we find this statement to be true? The first example that came to my mind was that of innovation. . .particularly in the area of technology. During the past 10-12 years, our industry has witnessed, first-hand, advancements in technology, which continue to change exponentially and in ways we never dreamed possible. Some developed gradually over a period of time, providing solutions to existing challenges while greatly enhancing our efficiency, effectiveness and productivity. Other technologies have been more revolutionary in

nature… carrying a greater level of uncertainty as to its users’ adaptability. Such advancements, which may not be readily embraced, I would characterize as being on the bleeding edge! That being said, some emerging technologies advance even more aggressively, pushing limits that progressively challenge traditional business models. On the surface, they can appear non-intrusive and of little concern to a well-established business model. In reality, certain danger lies in ignoring the part of that emerging technology that is not fully visible or understood; elements that can disruptively change values, attitudes, beliefs and behavior. We’ve seen it happen… the Blackberry… Amazon… Netflix… Wikipedia… Uber…

Airbnb. While some of these are not completely disruptive, meaning, not all have totally displaced leading firms or products, but how can we ensure we do not fall victim to such disruptive forces? How do we change the narrative of “being disrupted’ to perhaps “becoming the disrupter”? The answer lies somewhere within the very fabric of who we are as an organization. It will require wisdom, discernment, knowledge and a great deal of ingenuity from our team, but dig deep! It may not be an easy find, but we know what is best for our members, our customers and clients, and for our industry. In our search for the right answer, the following factors should always remain part of the equation: n Remain true to who we are as an organization. Never compromise our core values and standards. n Keep our vision focused. Always keep our members at the center of our business. Never settle for mediocrity. n Change is guaranteed. Be open to change, and committed to continued improvement. n Be courageous. Stick to what you believe in. Stand out and be willing to act in spite of fear. Confront tough issues, make hard decisions and take decisive action. Stand firm – stay the course in spite of criticism And most important… do the right thing! BAKERSFIELD REALTOR® MAGAZINE

REALTORS® TACKLE THE TOUGH ISSUES

Hottest Legislative Topics

Photo: Washington D.C.

The White House PHOTO COURTESY OF LINDA JAY

NAR ISSUES

The Bakersfield Association of REALTORS® Joins Thousands of REALTORS® in Nation’s Capital to Advance Vital Housing and Property Issues On behalf of current and future home and property owners throughout the country, over 9,500 REALTORS® traveled to Washington, D.C., this past month to advocate important real estate issues during the 2017 REALTOR® Legislative Meetings & Trade Expo. The Bakersfield Association of REALTORS® delegation joined fellow REALTORS® from across the nation to attend the meetings and visit with regulators and lawmakers on Capitol Hill to discuss the legislative and regulatory environment and its effect on residential and commercial real estate. Attending REALTORS®, all members of the National Association of REALTORS®, focused on several major issues pertaining to the industry during the legislative-focused meetings. Of utmost importance was protecting real estate-

BAKERSFIELD REALTOR® MAGAZINE

related tax policies, which are vital to expanding homeownership to more Americans. It is imperative we connect with our lawmakers to ensure they understand the issues that face the real estate industry, markets and their constituents - many of whom are home and property owners. REALTORS® are on the ground every day fighting for home and property owners in their communities, and we demonstrated we will do the same here in our nation’s capital with our elected officials. Supporting homeowners and property owners through smart legislation is

so important for families, communities and the nation’s economy, so we will continue to work with lawmakers to ensure they are protected. While in Washington, members from The Bakersfield Association of REALTORS® delegation met with Congressman Kevin McCarthy on Capitol Hill to influence public policy decisions that will directly affect consumers’ ability to own, buy and sell real estate. Specifically, Jeanne Radsick, the Federal Political Coordinator for Congressman McCarthy, asked the Congressman to support tax policies that promote and incentivize home ownership, long term reauthorization of flood insurance, and protecting sustainable homeownership by supporting the Protecting Americans from Credit Entanglements Act of 2017 (PACE loans). Congress is considering legislation that will have a very real impact on the industry, market, and buyers and sellers, so it is important our elected officials hear from us. Through the voice and strength of the REALTOR® Party, we made it clear where we stand on key issues that affect

home and property buyers, sellers and investors right here in Bakersfield.

TAX REFORM Congressional Republicans have promised the first comprehensive tax reform bill in more than 30 years. Members of Congress and their staffs need to be reminded that tax reform must not dilute the current real estate tax provisions vital to the housing market and the economy. Reform ideas that repeal or weaken tax incentives to encourage homeownership must be rejected. We need tax reform, but it must first do no harm. Current tax reform proposals discussed to date would lower tax rates and raise the standard deduction, but would pay for these changes by scaling back existing real estate tax provisions. Proposals that limit itemized deductions — even if not directly changing rules applicable to mortgage interest — could have serious negative consequences for homeowners.

HOMEOWNERS MUST BE TREATED FAIRLY IN TAX REFORM Middle-income homeowners could be worse off under proposals that limit tax incentives for homeownership. Analysis of a blueprint-like tax reform plan shows that home-owning families with incomes between $50,000 – $200,000 would face average tax hikes of $815 in the year after enactment, while non-homeowners in the same income range would enjoy average annual tax cuts of $516. Homeowners already pay 83 percent of all federal income taxes, and this share would go even higher under similar

PHOTO COURTESY OF LINDA JAY

Midge JImerson at the White House in Washington D.C.

reform proposals. Homeowners should not have to pay a higher share of taxes because of tax reform. We must reverse the decline in firsttime homebuyers. The tax code, historically, has encouraged homeownership. However, proposals that limit interest and property tax deductibility would reverse this course. The number of firsttime homebuyers is coming off an all-time low, and in 2016 the homeownership rate was at a 50year low. Homeownership provides social benefits to communities, increasing neighborhood stability and community involvement.

deduction has been preserved. Critics will argue that a simpler tax code with lower rates is better for housing than the current system, and the MID most benefits high-income homeowners who do not need help buying a home. The National Association of REALTORS® responds that 88 percent of all those claiming MID earn less than $200,000, and limiting or repealing current housing tax incentives would hurt the housing sector and unfairly harm homeowners who already pay 80 – 90 percent of all federal income tax.

LIKE-KIND EXCHANGES MUST BE PRESERVED

NATIONAL FLOOD INSURANCE PROGRAM

The Section 1031 provision encourages growth by permitting real estate held for investment to be exchanged for property of a like-kind on a tax-deferred basis. Exchanges are essential to the commercial real estate sector and to the economy. Since its inception, our income tax system has recognized the favorable effects of homeownership for families, communities and society by incentivizing homebuyers with tax benefits. The result is a home-owning society that is the envy of the world. However, tax reform plans now being discussed threaten to decimate, or even wipe out, the tax benefits of owning a home for 95 percent of American families. In addition to almost doubling the standard deduction, these plans would outright repeal the deduction for property taxes while gutting the Mortgage Interest Deduction (MID) for all but the richest. Ironically, a hollow shell of the MID would stay on the books, allowing proponents of this type of tax reform to emptily boast that the

We asked our representatives to provide authority for the National Flood Insurance Program (NFIP), which expires on September 30, 2017, and urged them to pass a multiyear reauthorization with needed private market reforms to avoid adding uncertainty to real estate markets. Each lapse costs 40,000 property sales per month, and without reauthorization the NFIP cannot issue or renew policies in 22,000 communities where flood insurance is required for a mortgage. Additionally, accurate flood maps are essential. The NFIP should use modern mapping technology to produce building-specific risk assessments. Congress was urged to pass the “Flood Insurance Market Parity and Modernization Act” (S. 563/H.R. 1422), which was unanimously adopted (419-0) by the House last year. NFIP premiums are based on national averages, so half of policyholders pay too much and half pay too LEGISLATIVE, Continued on page 10 BAKERSFIELD REALTOR® MAGAZINE

RECOGNIZING OUR

2017 PAC CONTRIBUTORS NAR GOLDEN R

HALL OF FAME $

25,000

Lifetime Investor PRESIDENT CIRCLE

Jeanne Radsick

CONTRIBUTORS

of $148 True Cost of Doing Business Abbot, Frank Ablin, Robin Abrams, Sara Aguirre, Adriana Albiar, Anna Ambrose, Lori Angelini, Alicia Apsit-Incardone, Barbara Ayala, Georgina Ayon, Tony Bader, Michael Baldwin-Hartwig, Vanessa Ball, Michael Barnhard, Kristi Belezzuoli, Robbyn Bender, Terri Bernal, Saul Bhuee, Amarjit Blain-Eilers Melody Joy Blanza, Susan Blomberg, Jamie Boeman, Penny Boone, Nikolas Brock, Joel Brooks, Juanita Brubaker, Patricia Burkey, Larry Busby, Jennifer Busby, Jon Busby, Kim Bynum, Donald Bynum, Gregory Canady, Rhonda Capilla, Belinda Carlson, Gregory Carruesco, Gary Carter, Douglas Caywood, Desiree Cera, Korina Chaffin, Lezlie Chay-Som, Hannah Chicas, William Clark, Cecilia

Clasen, Richard Clemmer, Mark Clemmer, Melinda Cofield, Christine Collup, Athena Cook, Daniel Cooper, Michele Cortes Aguilar, Cesar Cruz, Salvador Dobbs, Glen Dobbs, Ryan Domlao, Juliana Dorotheo, Joy Drakhshandeh, Shahabeddin Duarte, Louis Durazo, Felice Enge, Ann Epps, Pamela Etcheverry, Sarah Fahil, Rami Fillmore, Nance Fleming, Lydia Foley, Tammy Ford, Susan Diane Ford, Thomas Freedman, Michael Aaro Frost, Michelle Garcia, Pascual Garone, John Garone, John Gay, David Ghuman, Jessie Gibson, Edith Gill, Perminder Goettig, Jon Gomez, Manuel Gonzalez, Monica Gonzalez, Ralph Gonzalez Aceves, Jesus Greene, Jim Gregory, Maria Grigg, Mike Gunter, Vernon Harandi, Suzanne Harrison, Stacy Hartje, Richard Harvey, Michelle

BAKERSFIELD REALTORÂŽ MAGAZINE

CAR GOLDEN R Chartered

Jeanne Radsick Gail Malouf Linda Jay

Hernandez , Adam Hernandez-Abbas, Iliana Heyart, Crystal Holland, Greg Holzman, Roberta Houchin, John Hudson, Jessica Huzaibi, Mohamed Ister, Umit Jassar, Raju Jimenez, Elizabeth Jimenez Morales, Jaime Johnson, Martha Johnson, Victoria King, Kristine Klawikowski, John Knoeb, Joanna Knoeb, Misty Knoeb, Scott Knudsen, Ashley Koons, Maureen Kornbau, Garry Krausgrill, Jessica Kress, Wayne Lawson, Danielle Lopez, Phyllis Louie, Wayland Luna, Morena Mackessy, John Magana, Jenny Magat, Josephine Malkin, Robert Marchand, Tammi Martin, Joanne Martinez, Jennifer Martinez-Castruit, Sharon McClurg, Pam McEwen, James McIntosh, Lisa Mell, William Mendoza Torres,Marlene Miller, Judy Miller, Marietta Mohlke, Melba Montero, Claudia Morris, Wayne Morris Jr., Troy

Munson, Dana Murphy, Shelley Neiss, Jason Nemetz, Valeska Newport, Ronda Newport, Walt Newton, Joe Northrup, Kim Oja, Gregory Orellana, Vanessa Overstreet, Michelle Peters, Coleen Peters, Sanglim Pineda, Juana Porter, Glenn Porter, JP Portillo, Ricky Price, Tina Prieto, Ralph Ramos, Wendy Raymond, Kristin Reagor, Marilee Rios, Anthony Rios, Jeffrey Rios Ventura, Flor Rivera, Kathy Rivera, Scott Roberson Brandon, Gene Roberson, Debra Ryder, Judy Salas, Mario Salmeron, Jessica Sanchez, Carlos Schaeffer-Montijo, Michelle Schueler, Jeri Schweer, Denice Scott, Ed Seamster, Vicki Segrest, Sandy Sewell Nancy Shanyfelt Dan Sheridan Christine Silvestro Sara Simon Frank Singh Grewal Deepinder Soper, Michael

SILVER BEAR

Sheri Anthes David Knoeb Theresa Olson Bill Redmond Derek Sprague Midge Jimerson

Sousa, Roberta Sparks, Darrell Sprague, Derek St. Clair, Frank Steiner, Terrye Stout, Frank Taylor, Teresa Teagarden, Thomas Tobias, Darlene Tobias, Scott Toews, Dutch Torigiani, Sandra Trone, Sherri Tuttle, Brian Umana-Banuelos, Rebeca Urner, Susan Vaca, Michelle Valverde, Michelle Vargas, Geronimo Vazquez, Victor Walters, Leslie Ward, Teri Weaver, Ashley Wells, Dan Wilkerson, Sammy Winkler, Wanda Winter, Olga Wolfe, Bryce Woodbury, William Woods, Jennifer Wright, Staci Young, Gayle Zulfa, Pam

CONTRIBUTORS

Less Than The True Cost of Doing Business Alsup, Julia Anderson, Rhonda Arnette-Voth, Donna Ashcraft, Becky Barnhard, Jeffrey Brar, Dhanwant Brown, Lisa Castro, Domingo Chester, Jessica Cox, Stacy Ferrero, Maria

Ferris, Douglas Fisher, Janice Fletcher, Anthony Flores, Maria Garcia, Jesus Gill, David Gonzales, Rolando Graddy, James Guerrero, Alexandra Guzman, Javier Hernandez, Angela Jeffries, Virginia Jenkins, Kasie Ketchum, Cheryl Ketchum, Greg Lakdawala, Moiz Lewis, Kenneth Lopez, Asucena Lopez, Sylvia Love, Verlen Marquez, Jacob Mayorga, Martin McCombs, Diana McQuilliams, Shawn Miguez Lazcano, Fernando Mills, Darrel Mora, Samuel Moses, Valerie Myrick, Brian Ochoa, Maria Oliver, Mary Ortiz, Carlos Palla, Kevin Pandura, Maria Pena, Evie Qassim, Issam Sanchez, Angie Sangha, Navjit Sidhu, Harpreet Sidhu, Swaran Slavin, Douglas Tang, Jullian Trieu, Young Van Boening, Jaimie Vargas, Pablo White, Diane Whitfield, Hollie

2017 LOCAL GOVERNMENT REPRESENTATIVES

CONGRESS

STATE

Kevin McCarthy

Jean Fuller

House Majority Leader U.S. Congressman 23rd District Phone: 661- 327-3611 D.C.: 202-225-2915 www.kevinmccarthy.house.gov

David Valadao

Senator 16th District Phone: 661-323-0443 Sacramento: 916-651-4016 Email: Senator.Fuller@sen.ca.gov

Vince Fong

U.S. Congressman 21 District Phone: 661-864-7736 D.C.: 202-225-4695 www.valadao.house.gov st

Assemblyman 34TH District Phone: 661-395-2995 Sacramento: 916-319-2034 Email: assemblymember.grove@ assembly.ca.gov

COUNTY SUPERVISORS Mick Gleason

First District Supervisor Phone: 661-868-3650

Zack Scrivner

Second District Supervisor Phone: 661-868-3660

Mike Maggard

Third District Supervisor Phone: 661-868-3670

David Couch

Fourth District Supervisor Phone: 661-868-3680

Leticia Perez

Fifth District Supervisor Phone: 661-868-3690

Rudy Salas

Assemblyman 30th District Phone: 661-335-0302 Sacramento: 916-319-2032 Email: assemblymember.salas@ assembly.ca.gov

Andy Vidak

Senator 14th District Phone: 661-395-2620 Sacramento: 916-651-4016 Email: andy.vidak@sen.ca.gov

CITY REPRESENTATIVES Karen Goh, Mayor

Office: 661-326-3770

Bob Smith, Vice Mayor

Willie Rivera

Council member, Ward 4 Office: 661-326-3767

Andrae Gonzales

Councilmember, Ward 5 Office: 661-326-3767

Ken Weir, Vice Mayor

Councilmember, Ward 6 Office: 661-834-4943

Council member, Ward 1 Office: 661-326-3767 Council member, Ward 2 Office: 661-326-3767 Council member, Ward 3 Office: 661-326-3767

Vacant Seat

Jacquie Sullivan Chris Parlier

Councilmember, Ward 7 Office: 661-326-3767 BAKERSFIELD REALTORÂ® MAGAZINE

LEGISLATIVE, Continued from page 7 little in premiums. Enabling consumers to meet federal requirements with a private plan offers an alternative to overpriced NFIP policies. There is a considerable and growing private market that is offering better coverage at a lower cost than the NFIP. The NFIP was created to provide incentives for communities to rebuild to higher standards and steer development away from flood zones. In exchange, communities gain access to flood maps, mitigation assistance and subsidized insurance to prepay for future damage and recover more quickly from flooding. However, the program was never designed to absorb the catastrophic losses of the last decade, including Katrina (2005), Sandy (2008) and Baton Rouge (2016). As a result, the NFIP has borrowed $25 billion from the Treasury and is making interestonly payments of $400 million a year. The NFIP was last up for reauthorization in 2008. There were 18 short-term extensions and a two-month shutdown before Congress reauthorized the program in 2012. NFIP critics argue that the federal government should not be in the business of flood insurance and it is time to privatize the NFIP. NFIP supporters respond that the private market cannot guarantee access to affordable flood insurance for all 5 million NFIP policies. Flood mapping critics say, “scrap the maps” and let the private sector do it. Mapping advocates say that the current maps are developed by the private sector and without them, communities, lenders, and property owners could not determine where to build, lend or buy. Private market critics believe that private insurers will “cherry pick” the low-risk properties from NFIP. NFIP supporters counter that the private market is targeting high-risk, subsidized properties that are net revenue losers for the NFIP. Mitigation critics argue that taxpayer dollars should not be invested in flood-prone properties. Advocates note that U.S. taxpayers are already spending billions on repairing flooded properties, and elevating or relocating those properties would be more cost effective.

ban the use of mortgage guarantee fees (g-fees)

PROTECT SUSTAINABLE HOMEOWNERSHIP

cuts or transportation spending. It is wrong

The congressional action needed to protect sustainable homeownership is to responsibly reform the secondary mortgage market to ensure that the qualified borrowers have access to safe, affordable mortgage financing. Reform of our housing finance system is required, as the current conservatorship of Fannie Mae and Freddie Mac is unsustainable. In addition, Congress should

BAKERSFIELD REALTOR® MAGAZINE

improvements, however, consumers are unable

Members take a snapshot while attending NAR’s Legislative Meetings in Washington D.C.

to offset the cost of legislation unrelated to housing, and ensure that loans used to pay for energy efficiency improvements are subject to consumer protection laws. In order to help accomplish this, we asked our members to support H.R. 916 (Sanford, R-SC; Sherman, D-CA), the “Risk Management and Homeownership Stability Act,” which prohibits the use of g-fees as offsets for government spending. As well as S. 838 (Cotton, R-AR) and H.R. 1958 (Royce, R-CA; Sherman, D-CA), both entitled the “Protecting Americans from Credit Entanglements Act of 2017,” which extend consumer disclosures to Property Assessed Clean Energy (PACE) loans. We asked that these entities not be dismantled without identifying a viable replacement or omit an explicit federal guarantee. These components are critical to safeguard the 30-year, fixed-rate mortgage and ensure families are not shut out of homeownership. G-fees are passed on to consumers in the form of higher interest rates. In recent years, Congress has proposed increasing g-fees to pay for other governmental spending such as tax to tax a subset of middle-class Americans to cover unrelated federal spending. We urged our members of Congress to strongly oppose g-fees. PACE (Property Assessed Clean Energy) loans should not hurt the very homeowners they aim to help. Programs that allow homeowners to improve the energy efficiency of their homes and reduce their energy costs should be encouraged. PACE loans provide funds for such

to make prudent housing decisions due to the lack of proper consumer disclosures. PACE loans, and other energy efficiency lending programs, should be subject to the same consumer disclosure laws that apply to mortgages. Homeownership has always been a cornerstone of our nation and differentiates the U.S. from many countries around the world. Fiscal constraints have left lawmakers struggling to balance budgets and improve our economy. But there are critical programs that encourage homeownership, which is still the American dream. Failure to responsibly reform the secondary mortgage market, limit costs imposed on homeowners, ensure proper loan disclosures, and fund necessary system upgrades for federal housing programs hurts the very fabric and underpinnings of our society. Critics believe that Fannie Mae and Freddie Mac should not be involved in the mortgage market. Rather, they believe free market competition will provide better pricing and access to credit for consumers and businesses. Supporters will respond that a purely private mortgage market may provide these benefits, but only for a select few. Critics argue that all sources of revenue are needed to lower the budget deficit. Supporters respond that diverting g-fee revenue undermines the safety and soundness of the U.S. housing market, and deficit reduction should not be done on the backs of middle-class homebuyers. Critics argue that problems with PACE loans are overstated and are outweighed by enhanced energy efficiency and lower utility bills. Supporters respond that there are homeowners with PACE loans who are in trouble because they LEGISLATIVE, Continued on page 12

JOIN THE RGR COMMITTEE NOW… REALTORS® WHO MAKE THEIR VOTE COUNT!

Why Salas Voted Against the Gas Tax contribution by

RUDY SALAS ASSEMBLYMAN

The families I represent drive too far to jobs that pay too little. Imposing an additional gas and car tax on them would disproportionately affect some of the poorest and hardest working families in the state. This weighed heavily on my mind on April 6th, as the California Legislature debated Senate Bill 1. Senate Bill 1 (the Road Repair and Accountability Act of 2017), a $5.2 billion a year transportation funding package to repair California’s road system, passed by a vote of 54 to 26 without my vote. Specifically, SB 1 will increase taxes/fees this November by: n 12-cents per/gallon on top of the current $0.28 gas tax n 20-cents per/gallon increase on diesel fuel, plus a 4% sales use tax n $25 to $175 in a “transportation improvement fee” on top of the vehicle license fees users pay now n $100 registration fee for electric cars starting in 2020 n Gas & diesel tax will automatically increase every year tied to the Consumer Price Index I represent the Central Valley, an area of the state that is home to some of the hardest working men and women I know. We like to say we are the heart of California, the breadbasket not only of our great state but to the entire country.

“I believe we have a duty to give a voice to those who are voiceless...” – Rudy Salas However, despite being a huge part of California’s economy, we in the Valley sometimes feel left behind. We feel left behind when promises to help with our double-digit unemployment remain without the investments and jobs to help us reach that “Golden California” that we are told is vibrant and thriving in other parts of the state. We feel left behind when we see headlines that say California’s economy is strong and that we are out of the recession. When, in fact, in the Valley families are still struggling to get back on their feet.

McFarland currently faces a 16.9% unemployment rate and Avenal is at 16%, while the state as a whole is at 5.5% according to the state’s Employment Development Department. Communities are still struggling to have access to safe, reliable drinking water for their kids and their families. We want to be part of that “Golden California” but these issues are what families in my communities throughout the Valley face every single day. That is why I must continue to represent the voices of those who do not have a voice, those who continue to struggle and who live paycheck-to-paycheck. Those who work hard and are trying to achieve the American Dream but continue to face hurdles. As I have previously stated, the families I represent drive too far to jobs that pay too little. These families have to drive further to buy groceries, further to take their kids to school and drive even further to get to work. Driving is not a choice but a way of life for us because we do not have the mass public transit options that exist in other parts of the state. We know that families in the Valley make less and travel more than people in other areas of the state that have higher wages and access to subways, light-rail and mass transit systems. I truly believe that with my vote on SB 1, I stood up for the single mom working two jobs to get her kids through school, the SALAS Continued on page 33 BAKERSFIELD REALTOR® MAGAZINE

Jeanne Radsick runs for C.A.R. 2019 President Elect

ur future begins today… A quality of a leader is reflected in the standards they set for themselves. Vision, results, innovation, courage, leading by example… This is the standard set by the leaders who founded our Association in 1905, and have continued to guide and direct our professional path for over 112 years! It has been their passion and collaborative spirit that has and continues to create tremendous value and a powerful, positive influence within our organization and community year after year. Throughout the prestigious history of our Association, we have also been represented by these very same standards at the State and National levels of our Organization. We are especially proud of the exemplary service of individuals like Robert Karpe who served as C.A.R. President in 1967 and Jim Antt who served as C.A.R. President in 1990. We are honored to announce that our own Jeanne Radsick has put forth her name to run for the office of President Elect of the California Association of REALTORS® in 2019. Our

State Association, also formed in 1905, has effectively maintained a highly innovative and dynamic presence in our industry that has also set a standard across the nation. Our industry is affected by exponential changes and challenges. Due to this fact, it is important to identify and raise up leaders who not only demonstrate the integrity and courage to remain steadfast to that in which they believe, but who, when confronted with hard issues, will face them and make the tough decisions that are needed. These qualities in a leader are

not only important, they may never have been more critical to our continued success. Jeanne Radsick is such a leader… she will exemplify that standard, leading by example to ensure we continue to create a future for our organization that is as vibrant, relevant, and influential as it has been for 112 years. Jeanne… Congratulations on your endeavor! We whole heartedly support your candidacy and wish you every success!

LEGISLATIVE, Continued from page 10 were not given the full details of the terms of their PACE loans.

Bill 640 to lay the groundwork to impose a sales tax on services. If enacted, the home buying transaction would be heavily taxed. Real estate transactions, which are “services intensive” would be especially hard hit by a service tax. Services that are rendered as part of a real estate transaction usually include: appraisal, brokerage, escrow services, home inspections and repairs, loan brokerage, Natural Hazard Disclosure Statements, roof certifications, structural pest control inspections, title insurance and home warranty. This doesn’t even include the services sellers and buyers incur in preparation for selling or after purchasing the property, including landscaping, painting and other home improvement services! A service tax would significantly increase the cost of buying or selling a home. At least ten different services are part of the typical purchase of a home. All totaled, they can comprise about 13% of the price of the home. Last year’s statewide median sales price of a home was $502,250. Based on a median sales price of $502,250, a service tax of 7.5% would increase the cost of buying a home by over $4,750! That increase would prevent more than 55,600 families from being able to afford the median priced home. If a lower tax of 5% were enacted, there

would still be over 37,200 families priced out of the market.

C.A.R. ISSUES C.A.R. LEGISLATIVE DAY AND STATE HOT ISSUES

Each year thousands of REALTORS® meet in Sacramento to advocate on key issues affecting the real estate industry. Again, this year, members of the Bakersfield Association of REALTORS®, the Young Professionals Network, and Leadership Academy participated in Legislative Day activities in Sacramento and joined thousands of REALTORS® for a day filled with networking, legislative meetings with Senator Andy Vidak, Assembly member Rudy Salas, Senator Jean Fuller and Assembly member Vince Fong, for discussions of the hottest issues that are important to the real estate industry. SB 640 (Hertzberg) – Service Tax – OPPOSE C.A.R. is opposing legislation that sets in place the foundation for a SERVICE TAX, essentially a sales tax on services in California that includes real estate transaction services.

ISSUE BACKGROUND Senator Robert Hertzberg has proposed Senate

BAKERSFIELD REALTOR® MAGAZINE

“Leadership is influence… Nothing more, nothing less.” – John Maxwell

WHY C.A.R. OPPOSES A SERVICE TAX It hurts housing affordability. California is already suffering from housing affordability and supply crisis. Adding a service tax to the transaction will only make the situation worse, once again keeping low and middle income families from purchasing homes. Fewer families would be able to rent. At a time when the legislature is focused on the housing affordability and re-emergence of a housing shortage, does it really make much sense to increase the cost of housing? And don’t forget about rental prices. Rents are already increasing. If service taxes are imposed on investment properties, the costs will eventually be passed on to renters. California service companies will be hurt. Individuals and businesses, seeking to avoid the additional tax, will simply use out-of-state companies to provide services, hurting those California companies that would typically provide them. It is a regressive tax. It has a disproportionately negative impact on low and middle income families who spend, rather than save, a larger percentage of their income on essential goods and services.

THE “A TEAM” AFFILIATES IN ACTION

PARTNERSHIPS

embers of The A Team! Collectively, these individuals form a group of loyal, hardworking Affiliate members who serve the

Association in a variety of ways. Over a long period of time, they consistently: Attend activities and events such as MLS Open Forum, Commercial Investment and more; Volunteer their time and energy to support the Association’s programs and activities; Promote Association activities to other members; Contribute

MIKE GEORGE

BARBARA WELLS

Agape Mortgage 661.324.2427

San Joaquin Valley Mortgage 661.703.2227

mikegeorge@agapemtgco.com www.agapemtgco.com

bwells@sjvalleymortgage.com

raffle items and door prizes, as well as sponsor various programs and special events. For all their continued support, A Team Members earn these opportunities: Featured in all issues of Bakersfield REALTOR® Magazine; Complimentary advertising through The A Team contact list on the Association website; Complimentary recognition on the Association Reception TV; First opportunity to sponsor key events with a sponsor banner. If you’re interested in becoming a member of The A Team contact Jeff Aguilera, our Affiliate Chair.

CHEREYL NUNN Wells Fargo Home Mortgage 661.664.5300 chereyl.a.nunn@wellsfargo.com www.wfhm.com/loans/chereyl-nunn

SUZI BEATY Fidelity National Home Warranty 661.477.3906 suzi.beaty@fnf.com

DEANA WITWER

MELISSA SULLIVAN

Built Right Home Inspection 661.377.7777

The Bakersfield Californian 661.395.7263

Deana@builtrighthi.com www.builtrighthi.com

Msullivan@bakersfield.com www.bakersfield.com

JEFF AGUILERA, Chair Cornerstone Mortgage 661.578.9259 jeff@csmbakersfield.com www.cornerstonemortgage.com BAKERSFIELD REALTOR® MAGAZINE

YPN Storms Sacramento

contribution by

SCOTT KNOEB

2017 YPN CHAIR Frontier Real Estate Services, Inc.

C.A.R. Legislative Day 2017 The Young Professionals Network (YPN) marched on the State Capitol on May 3rd during their third annual trip to Sacramento on Legislative Day. The YPN’ers were honored to be a part of this monumental event, which was orchestrated by the California Association of REALTORS® (C.A.R.). Together we gave vital information to all of California’s elected officials on important bills effecting private property rights, the real estate industry and home affordability in California. This year we were stronger than ever by breaking our very own record in attendance, having of over 2,600 REALTORS®. Collectively we are the voice of real estate, and we proved

BAKERSFIELD REALTOR® MAGAZINE

it during this event. As leadership at C.A.R. mentioned, the next largest association to march on the State Capitol yearly is Scott Knoeb, YPN Chair around 800. We are very proud of C.A.R. and our local REALTORS® for protecting our industry and private property rights for the community.

What is Legislative Day? For the past 45 years, Legislative Day has remained C.A.R.’s pinnacle legislative event. Legislative Day gives California REALTORS® the opportunity to meet and discuss real estate issues directly

with their state legislators and staff. Attending Legislative Day is not only a great investment in your business, it also provides REALTORS® with an opportunity to hear from California’s most dynamic political leaders and the leadership of our state association.

Mark Your Upcoming YPN EventS

CALENDAR

August: Giving Back September: Lunch & Learn Do’s & Dont’s of Marketing October: C.A.R. Expo, San Diego

November: Lunch & Learn – Business Planning December: Christmas Appreciation Mixer

LEGISLATIVE DAY

SNAPSHOTS FROM SACRAMENTO

BAKERSFIELD REALTORÂ® MAGAZINE

Stop Selling and Start Solving! People love to buy, but they hate to be sold. So, stop selling!

LARRY KENDALL AUTHOR OF NINJA SELLING

AND CHAIRMAN OF THE GROUP, INC.

What is selling? Webster’s New World Dictionary describes selling in two different ways. They are: 1. Selling, at its best, is serving and solving—often solving a need or want customers didn’t even know they had. The customer comes first. The word sell comes from an old English word, sellan, meaning to give. Giving service, counsel, and value is the highest form of selling and is the foundation of Ninja Selling. Is there any more noble purpose in life than to bring value to others? Our mission is to help our students sell in this manner and make it easy for both them and their clients. 2. Unfortunately, there is another form of selling. Selling, at its worst, is pitching and pushing—often resorting to highpressure tactics and trickery. In fact, the slang description of selling in the dictionary is to cheat, hoax or dupe. The salesperson is looking out for their interests, not the customers. Unfortunately, this form of selling is often depicted in movies and gives selling a bad image. It causes many to avoid a career in sales and others to avoid salespeople. It is to this form of selling that we say: “Stop

BAKERSFIELD REALTOR® MAGAZINE

selling!” There is a better way. We call it the Ninja Way. When customers sense high-pressure tactics or manipulation, they either put up their defenses, causing the salesperson to push harder, or they run away, causing the salesperson to chase them. Would you like to attract customers rather than chase them? It’s simple: stop selling and start solving! Focus on creating value by asking the right questions and finding out what your customers want and are willing to pay for. As a Ninja, you will be selling at its very best—solving, serving and giving value. And, customers will beat a path to your door.

The Internet Has Changed Selling in Two Profound Ways The days of high-pressure selling techniques are over. Perhaps you were taught combative selling; always be closing (ABC); you have to have 10 no’s to get your first yes—grind them down, they buy or die. Customers no longer put up with these tactics. What’s changed? The internet has changed selling in two profound ways. First, in the old days, the salesperson used a superior product and market knowledge as a lever to manipulate or outwit the customer, who was at a distinct disadvantage. Today,

most customers have done a great deal of research online, even before they enter the showroom, sales center or open house. In some cases, they know more about the market and the product than the salesperson. A salesperson who launches into a pitch or engages in puffery is a turnoff to the customer. Customers want someone they can trust to help them make a good decision. Do customers get the feeling that you are there to help them or to sell them? Second, since the advent of the internet, pushy salespeople can be roasted by customers on social media. A salesperson’s reputation can be made or broken by just one customer. On the positive side, when you create value—solve their problems (pain) or make them feel good (pleasure)—your customers consider you their trusted advisor. They will tell their friends on social media. Today, the story your customers tell about you is far more important than the story you tell about yourself. What story will they tell? That you were selling? Or, that you were solving and serving? This article reprinted with the permission of Real Trends Inc. Copyright 2017

Beyond 2017…

will we run out of housing?

STEVE MURRAY REAL TRENDS, PUBLISHER

The problem is not just affordable housing; it’s that unless homebuilding of all kinds increases back to near its historical norm of above 1.4 million homes a year, we may simply run out of places to live and homes to sell. Having studied recent data about inventory and sales levels, household formations, immigrant populations and other related factors, one could construe that we are, in fact, going to run out of housing for a growing population. Here are some thoughts to consider: We are adding 1.3 million new households per year. This is currently a number expected to grow to nearly 2.0 million per year as Millennial households enter the workforce, leave their parent’s home and get their own place to live. Homebuilding is averaging slightly above 1.1 million starts a year, most of which is single

family starts at about $650,000 to $700,000 per year. Multi-family is slowing somewhat while single family is growing somewhat—but few think this number will advance rapidly in the next few years. According to the U.S. Census Bureau, the vacancy rate for rental housing currently stands at 6.9 percent nationally while the vacancy rate for homeowner property is 1.8 percent. In many markets, the demand for entry-level homes far exceeds the supply, while the supply of homes in the higher end of the price segment far exceeds the demand. Some 22 to 24 million, one to four-family homes are in the hands of private or institutional investors who have no immediate financial need or desire to sell them. This level of total housing stock held by private investors is far above any previous level. Estimates are that many of these homes are, in fact, entry-level houses, that in previous years would have been available to firsttime homebuyers. The homeownership rate has fallen from a

high of just over 69 percent in 2005 to a 40-year low of just above 63 percent in 2016. The nearly 6 percent drop represents over 7 million potential homeowners who are not owners right now. When one extrapolates the growth of households over the next 10 years against projected housing starts of all kinds, not only will we run short of houses to sell, but also of houses or apartments in which emerging households can live. The vacancy rates are already near all-time lows. The problem is not just affordable housing, which is a huge growing problem. The problem is that unless homebuilding of all kinds increases back to near its historical norm of above 1.4 million homes a year (and likely that is not enough), we may simply run out of places to live, not to mention homes to sell. In fact, the rough average of home starts from 1990 to 2005 was 1.6 million new home starts. Is anyone looking at this data? This article reprinted with the permission of RealTrends Inc. Copyright 2017

When one extrapolates the growth of households over the next 10 years against projected housing starts of all kinds, not only will we run short of houses to sell, but also of houses or apartments in which emerging households can live. BAKERSFIELD REALTOR® MAGAZINE

YPN hits a homerun! Keller Wiliams Real Estate, 2017 YPN Softball Champions

A BIG THANK YOU TO ALL OF OUR YPN SOFTBALL SPONSORS AND TEAMS! SPONSORS: Loan Depot, Built Right Home Inspections, Signature Home Loans & Agape Mortgage DONATIONS: Women’s Council of REALTORS® (WCR) & Signature Home Loans TEAMS: Ascend Real Estate, A-Team, Performance REALTORS® Inc., Signature Home Lending, Chicago Title, Keller Williams Realty, Intero Real Estate Services, Coldwell Banker Preferred, Loan Depot®, Watson Realty ERA

MENT OURNA ALL T OFTB ER S MB ME

BAKERSFIELD REALTORÂ® MAGAZINE

Meet the Candidates

2018 ELECTION

ANNUAL CHARITY GOLF TOURNAMENT

OFFICERS

ATHENA COLLUP 2018 President Elect

RONDA NEWPORT Vice President

SCOTT KNOEB

Secretary Treasurer

DIRECTORS

SAVE THE DATE

Candidates below are vying for Director’s Seats, 2018 - 2020 There are only 4 seats available. The top 3 vote recipients will receive a 3-year term. The 4th person receiving the most votes will receive a 1 year term.

October 20th Riverlakes Ranch GOLF SPONSORSHIPS ARE NOW AVAILABLE! Don’t wait, purchase your Tee Sign or banner today!

WAYLAND LOUIE

GLENN PORTER

BRIAN TUTTLE

NIK BOONE

MICHELE COOPER

VOTE

2018 PRESIDENT AND DIRECTORS President and Directors who have already been voted in and will continue to serve.

C a l l L i n d a M a ri e Now a t

661

63 5.2 3 14 f o r D e t ails

2017 BAKERSFIELD ASSOCIATION OF REALTORS®

TASK FORCE/COMMITTEES

Get Involved…Together we can make a difference in our Community. Join any one of our committees; or, if you don’t have much time on your hands, we’ve set up many task forces just for you. Take part today and find a committee that’s a perfect fit for you. You can download the application at files.bakersfieldrealtor.org/images/JoinCommittee.pdf

Call 635-2315 now!

DEREK SPRAGUE

MIDGE JIMERSON

2018 President

Immediate Past President

DARLENE TOBIAS

WILLIAM CHICAS

2016 - 2018 Director

2017 - 2019 Director

BAKERSFIELD REALTOR® MAGAZINE

ASHLEY WEAVER 2016 - 2018 Director

ANNA ALBIAR

2017 - 2019 Director

SUCCESS

Welcome, New Members!

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

new realtors ®

APRIL 2017

Karina A. Ardizzi, Golden Valley Real Estate Group; Viviana Barboza-Gutierrez, Wingate Real Estate Services; Marinna M. Castillo, Brick and Boulder Real Estate; Sherri Lee Caudill, Rueben Zamudio, Broker; Amber D. Chaddick, Chaddick Williams Realty; Richard Daniel Cook, Equity 1 Loans; Henry C. Cornejo, My Realty; Diana L. Cummings, Portfolio Properties; Alexis Escamilla, Performance REALTORS®, Inc; Raymond J. Fraser, Keller Williams Realty; Connie R. Fuentez, SearchKern.com; Mark L. Hitchcock, Coldwell Banker Preferred, Ming; Francisco J. Hurtado, Stratton Davis Realty; Barbara Kammel, 4 USA Realty and Loans; Robert Walter Limpias, Landstone Realty Advisors, Inc.; Chimele Obinnaya Okezie, Stratton Davis Realty; William T Potter, Potter McKinney, Inc.; Angel M. Ransom, The Lacava Group, Real Estate; Madhav K. Sharma, Keller Williams Realty; Lakhdeep Singh, Keller Williams Realty; Carolyn R Thiessen, Stratton Davis Realty; Deepak Udani M, Coldwell Banker Preferred, Ming; Zamora Juan, Santa Cruz Realty

new realtors ®

MAY 2017

Brian Aguirre, Intero Real Estate Services; Raul G. Alvear, Coldwell Banker Preferred - Ming; Manuel Amaya, Miramar International - Downtown; Gizel Bermudez, Potter McKinney Inc.; Michelle S. Bertrand, Vintage Real Estate; Amy Ann Bush, Scott River Real Estate; Disa E. Cranmer, Keller Williams Realty; Laura Diaz, Keller Williams Realty; Gerardo A. Escalante Jr., Watson Realty ERA; Mahavir S. Gill, Real Estate Professionals; Joanna J. Grajeda, Coldwell Banker Preferred - Ming; Lesley R. Greer, Watson Realty ERA; Debbie M. Guseman, Fenton Real Estate; Jodi J. Haycock, Keller Williams Realty; Sicily A. Henderson, Platinum Real Estate Inc.; Jairo E. Hernandez, Alliance Investments Group Inc.; Brittany N. Jacober, Coldwell Banker Preferred - Coffee; Michelle L. January, Castle & Cooke; Roberto J. Moita, Jr., RE/MAX Golden Empire; Julie Dawn Molina, John Balfanz Homes; Melissa A. Moncur, Advanced Realty; Juan C. Morfin, Canales RE/MAX Golden Empire; Melody Orr, RE/MAX Golden Empire; Ricardo D. Paredes, Real Estate eBrokers Inc.; Jaime Omar Quintana, Ruben Zamudio, Broker; Mayra Reyes, Stratton Davis Realty; Audrey N. Romero, Miramar International Inc.; Noah L. Salinas, Century 21 Tobias Real Estate; Bryant S. Valdez, Marco Caracas, Broker; Julie Vargas, The Russell Group; Elba M. Villagomez, Potter McKinney Inc.; Sumer L. Webb, Keller Williams Realty BAKERSFIELD REALTOR® MAGAZINE

Who are Today’s

Successful CEOS? STEVE MURRAY REAL TRENDS, PUBLISHER

Traits that differentiate those leaders who excel over the long term. After 40 years being in the residential brokerage industry—37 of them working with CEOs from across the spectrum of large and small brokerage firms, nationally affiliated and independent, full service and discount models—I’ve come to some conclusions about the traits that differentiate those who truly excel over the long term. And, yes, much of what is written here has been written elsewhere, in numerous bestselling business books, in multiple speeches, blog posts, etc.

BAKERSFIELD REALTOR® MAGAZINE

n They

are passionate about their business. This doesn’t mean that they don’t tire of the day-to-day challenges, and don’t get as frustrated as the next guy, but they really love what they are doing most of the time. n They are tinkerers. They are unafraid to try new and untested ideas, some more so than others. But, they are not fools for fads and most know the difference. They look for new ways to separate themselves from the pack. n They share. They are willing to share what they know with others. n They don’t suffer fools. While these top CEOs appear to be friendly and warm, they don’t like having their time wasted by those who haven’t thought through what they are proposing, or those who have

chronic-complaining symptoms. They do have patience for those in true need of their input and somehow the best CEOs know the difference. n They are curious and read a variety of publications daily. While many would not be considered great readers, they are constantly seeking information. They are curious not just about the business, but about what is going on around them in the world. n They are great listeners. The very best are great listeners and know they don’t necessarily know the answers to all the tough questions. n They get it. They understand that their culture is every bit as important as their financial and operational results. This article reprinted with the permission of Real Trends Inc. Copyright 2017

OMBUDSMAN

BRE Regulations regarding use of Team Names contribution by

JOE NEWTON OMBUDSMAN There are many times in which salespersons work in teams under a single real estate brokerage. If a group of two or more wish to work together as a team, and are advertising themselves as a team using one of the members’ names (i.e. Smith Group or Smith Team, or Smith and Associates), there are some specific CalBRE requirements to follow. Requirements for the use of team names are in place because Joe Newton we have faced problems with their use in the past. The main problem we have previously come up against was that many consumers were unable to determine the identity of the agent(s) or the responsible party behind a team name. If there became a problem with the transaction, the consumer and the CalBRE had a difficult time connecting that team to a particular office. The initial solution was to require that team names be registered with the county as a fictitious business name. Matters became more workable, however, by allowing most common types of team names that contained the surname of a team member to be allowed without registering as a FBN. In order to avoid problems with team

names in the future, the CalBRE has issued clarification of its team name and fictitious business name regulations. A salesperson can use a team name without obtaining a fictitious business name from the county recorder, and without registering that team name with the BRE, as long as the team name meets the following requirements. 1. The team name includes the surname of a least one of the agents within the team. 2. The team name is used by two or more real estate licensees who work together to provide licensed real estate services. 3. The team name does not include any term or terms, such as “real estate broker”, “real estate brokerage”, “broker”, or “brokerage”, or any other term that would lead a member of the public to believe that the team is offering real estate brokerage services independent of a responsible broker. The terms “associate”,

2017 OMBUDSMAN REPORT

MARCH - APRIL 209 calls were received by our Ombudsman n

33 calls were grievance/ethic complaints against agents which were resolved n

10 calls were arbitration complaints against agents that were resolved n

7 grievance/ethics packages mailed out to complaining party n

75 calls requesting information on real estate procedures n

49 calls requesting information on deposits

2 anonymous calls

26 cases referred to Association mediation

6 Tehachapi calls

1 Kern River Lake Isabella calls

371 Year-to-date total

“group”, or “team” are acceptable as long as there are at least two licensed real estate agents that are part of the group. If you do not qualify under the team name requirements, then you MUST register for a fictitious business name with the county recorder AND the Bureau of Real Estate BEFORE using the fictitious business name in any capacity. All advertising and solicitation materials which include the team name, including print or electronic media and “For Sale” signs, must also include the license number of at least one of the licensed members of the team, all of which must be displayed in a conspicuous and prominent manner. The name of the responsible broker under which the members of the team are working, must also be displayed as conspicuously and prominently as the team name in all advertising and solicitation materials. The broker’s license number is no longer required to be displayed. The name of the responsible broker must be the name that the broker uses to conduct their business in general, or a substantial division of the firm. The advertising and solicitation material must not contain any terms that imply the team is a real estate entity independent of the responsible broker. More information may be obtained by contacting C.A.R.’s Member Legal hotline at (213) 739-8282 or (213) 739-8350 or members may also submit online requests to speak to an attorney. If you have a specific legal question, seek the advice of an attorney. BAKERSFIELD REALTOR® MAGAZINE

Millennials Move Less but rent more than older generations

New data from the Census Bureau and analysis by the Pew Research and that a primary reason is that Millennials are moving

BAKERSFIELD REALTORÂŽ MAGAZINE

STEVE COOK

EDITOR OF REAL ESTATE ECONOMY WATCH

Though younger adults typically move more often than their older peers, Millennials (ages 25 to 35) are moving significantly less than Gen Xers and Boomers, yet they still are more likely to rent than buy than older generations at the same age. In 2016, only 20 percent of Millennial 25- to 35-year-olds reported having lived at a different address one year earlier. One-year migration rates were much higher for older generations when they were the same age. For example, when members of the Silent Generation were ages 25 to 35 back in 1963, 26 percent reported moving within the prior year. And in 2000, when those in Generation X were the age that older Millennials are today, 26 percent of them reported having moved in the previous year. (The analysis is limited to older young adults because the census data source does not accurately capture moves to and from college dormitories, which are more prevalent among 18- to 24-year-olds.) It may seem counterintuitive that Millennials would be contributing to a trend toward less geographic mobility. After all, according to Pew Research Center analysis of Current Population Survey data, they are less likely than earlier generations to have three things that tend to be impediments to moving for a young adult:

A SPOUSE Millennials are less likely than previous generations of young adults to be married, so that should give them more flexibility than earlier generations. Married young adults are less likely to move than unmarried ones, in part because a married couple’s move may

entail two people lining up new employment. Only 42 percent of Millennial 25- to 35-yearolds were married and living with their spouse in 2016. By comparison, 82 percent of Silent 25- to 35-year-olds were married and living with their spouse in 1963.

A HOUSE Today’s Millennials are less likely to be tied down by owning a house. It is presumably less disruptive and potentially less costly to move from a rental unit than it is to sell a house, so one would expect renters to be more mobile than homeowners. Older generations appear to be significantly more likely to have been tied down with a house when they were young adults than Millennials are today. For example, 56 percent of early Baby Boomer 25- to 35-year-olds lived in owner-occupied housing (not owned by their parents) in 1981, whereas only 37 percent of Millennials lived in such housing in 2016.

A CHILD Young adults also are more likely to migrate if there are no children present in the household. In 2016, a majority (56%) of Millennial 25to 35-year-olds were childless (regarding not having a child living with them). Fewer than half of Gen Xers and Boomers were childless at a similar stage of life. So, if Millennials are less hampered by spouses, houses and kids, why are they moving less than previous generations did at their age? Labor market opportunities may be a factor. Millennials were hit hard by the Great Recession regarding job-holding and wages. For many young adults who moved in the past year, job opportunities were a prime motivation for moving, and the modest jobs recovery may not be providing

the impetus Millennials need. When they do move, Millennials’ motivations for moving are significantly different from those of earlier generations of young movers. One incentive for moving is to buy a home, but Census Bureau migration data suggest Millennial movers are doing so at significantly lower rates than earlier generations. In 2016, homeownership among younger households was at its lowest level in at least 40 years. On the one hand, the different family demographics of Millennials – such as not having children – may undercut their desire to own a home. But financial considerations may play a role as well. Compared with Gen X young adults around 2000, lending standards are much tighter, making it more difficult for Millennial 25- to 35-year-olds to get a mortgage. Student debt may be deterring young adults from home ownership. According to the Census Bureau survey, in 2000, 14 percent of Gen X movers said that their primary reason for moving was that they wanted to own a home, not rent. Just 6% of Millennial movers in 2016 were so motivated. Among Millennials who moved in 2016, 22 percent owned their home after their move. In contrast, earlier generations of young movers were more likely to move into homes that they owned. For example, 35 percent of early Boomer 25- to 35-year-olds who moved in the year before 1981 lived in an owner-occupied home. So, whether by choice or by circumstance, Millennial migrants appear to be significantly less likely to buy a home than earlier generations of 25- to 35-year-old movers. This article reprinted with the permission of RealTrends Inc. Copyright 2017

Center found that Americans are moving at the lowest rate on record significantly less than earlier generations of young adults.

BAKERSFIELD REALTOR® MAGAZINE

What, or who is your most important business asset?

LARRY KENDALL AUTHOR OF NINJA SELLING AND CHAIRMAN OF THE GROUP, INC.

hat is your most important business asset? Your people? Your reputation? Leadership? Brand? All are important; however, an in-depth study by the Gallup Organization of over 400 companies in multiple industries found that your most important business asset is your manager. Managers are the key players in building a strong team, office and company. The Gallup study based their conclusion on four performance measures: productivity, profitability, retention and customer satisfaction. After separating companies into performance quadrants based on these four measures, they began to drill down to discover why the companies in the top quadrant performed so much better than those at the bottom. The clear conclusion— the quality of the manager is the difference that makes the difference.

What are the great managers doing? There are four keys. 1. Selection. When selecting someone, they select for talent, not for experience, intelligence or determination.

2. Setting Expectations. When setting expectations, they define the right outcomes, not the right steps.

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3. Motivation. When motivating someone, they focus on strengths rather than weaknesses.

4. Development. When developing someone, they help them find the right fit, not simply the next rung on the ladder. How can you measure the quality of your manager? Success leaves clues. The Gallup study found the great managers (the ones with the highest performance on productivity, profitability, retention and customer satisfaction) rated 5s on 12 questions asked of their employees. Poor performing managers rated 3s or less. Can it be that simple? According to Gallup—yes! Here are the dozen key questions (on a scale of 1 to 5 with 5 (Strongly Agree) and 1 (Strongly Disagree): 1. Do I know what is expected of me at work? 2. Do I have the materials and equipment I need to do my job right? 3. At work, do I have the opportunity to do what I do best every day? 4. In the last seven days, have I received recognition or praise for doing good work? 5. Does my supervisor, or someone at work, seem to care about me as a person? 6. Is there someone at work who encourages my development? 7. At work, do my opinions seem to count?

8. Does the mission and purpose of my company make me feel my job is important? 9. Are my co-workers committed to doing quality work? 10. Do I have a best friend at work? 11. In the last six months, has someone at work talked to me about my progress? 12. This last year, have I had opportunities at work to learn and grow?

We administer this 12-question survey every year to both our sales associates and staff. Just as in the Gallup study, we find a direct correlation between the manager’s rating and the performance of their office in the four key areas: productivity, profitability, retention and customer satisfaction. The 12 questions help our managers get clear on what is important and how to get results. The questionnaire is also used in the manager’s performance evaluation. Can great management be as simple as these four keys and 12 simple questions? We believe so and highly recommend you read the book on this study, First, Break All The Rules, What the World’s Greatest Managers Do Differently by Marcus Buckingham and Curt Coffman. It will be worth your investment. After all, your managers are your most important business asset. This article reprinted with the permission of RealTrends Inc. Copyright 2017

RELAY FOR LIFE

Team Bringing Home the Cure donates over $50,000 to American Cancer Society & Campout Against Cancer

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CONGRATULATIONS THE BAKERSFIELD ASSOCIATION OF REALTORS® is an advocate of education for the children and the youth of our community. To encourage and support the educational endeavors of students in Kern County, the Association formed the Scholarship Trust Fund.

GRACIE BUSH

The following are the 2017 Award Recipients and their career goals: Gracie Bush

In January of 2013, Gracie Bush’s mother was diagnosed with leukemia. Soon after her diagnosis, she received chemotherapy and later, a stem cell transplant. The cancer was gone after the treatments, but the treatments came with major setbacks. Gracie’s mother developed Graft Versus Host Disease, a disease that occurs when stem cells in your body are not recongnized. Because they are not recognized as the body’s own cells, anitbodies try to kill the cells, which can make the immune system very weak. This caused her mother to lose her mobility, as well as the ability to take care of herself. She still battled with feelings of fatigue and pain, but most of these symptoms were side effects caused by medications that were being administered to keep the disease under control. With each medication ranging from $100 to $10,000 per month, Gracie began to see how medication not only affects the health of a patient, but how it can affect financial health as well. Gracie became frustrated with how this affected her family and it made her wonder how others with worse conditions handled these issues. People just like her mother, who are merely trying to get healthy and sustain their lives, are struggling to do so amidst feeling miserable in their health, while at the same time feeling negative affects on their bank accounts. Gracie has made it her personal goal to

BAKERSFIELD ASSOCIATION

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dedicate her future studies to pharmaceutical chemical engineering. With these studies she hopes to find ways to make medication more effective and decrease negative symtoms, while at the same time making them less expensive. Gracie plans to receive her degree from Colorado School of Mines, where she can utilize the equipment, professors, and internship opportunities she is given. When she gradutes from Colorado School of Mines, Gracie plans to work for a phamaceutical company, where she can study alternate substances in prescription drugs that can be sold at a lower price, and create more effective antibiotics with fewer side effects.

Justin Chase

Justin Chase has big goals when it comes to his schooling and career path. He plans on attending Bakersfield College in order to earn an Associates Degree in Agricultural Business Management, Animal Science, Environmental Horticulture and Plant Science. From there, Justin plans on transferring to a University that specializes in agriculture. His top picks are Texas A&M, UC Davis, Chico State, and Fresno State. After completing all the necessary schooling, he would like to get a job at Grimmway or Bolthouse Farms and use it as a stepping stone to start his own farming operation. Since he was a child, Justin has dreamed, of doing nothing but farming all the days of his life. This aspiration can be accredited mostly in part by his great grandfather, Sonny Lewis Chase, as well as many other members of Justin’s family that are from that lineage. One of those additional family members

JUSTIN CHASE is Sheri Anthes. She has been Justin’s rock through all of his 4-H endeavors. She could always be counted on to show family support, along with her daughters, father, and mother. Being in 4-H has taught Justin a few things: responsibility, work ethics, love for animals. Through schooling, Justin wants to learn how everything behind the scenes of a business works; How money is managed, the special properties of soil and its effect on the produce, how everything gets done efficiently, and the knowledge on how to effectively run a farm on one’s own. Moving out of state to attend a larger agricultural university would mean having to start fresh, leaving behind many local connections Justin has made over the years, but that is a challenge he knows he can work at to overcome. Because of 4-H, he has met many important people that can be used as resources to help Justin prosper in this field. With this scholarship, Justin will get the necessary knowledge to use these connections and start ‘’Chase Farms” sometime in the future.

Karli Cordova

Karli Cordova is a sophomore at Cal State University Bakersfield, and is currently a fulltime engineering student. She was fortunate enough to receive this scholarship in 2015, prior to entering into her Freshman year. At that time, Karli was working with her mother at Miramar International Downtown, making copies and helping with basic office duties. She had every intention of getting her real estate license and assisting her mother with her business. However, as Karli entered into her studies she realized that earning a real

OF REALTORS

2017 SCHOLARSHIP RECIPIENTS

KARLI CORDOVA

WILLIAM DARBY MELL

estate license would have to wait. Being an engineering major requires many difficult courses, which takes Karli’s full attention. In the last year and a half, she has taken calculus, physics, statics, and several engineering classes to name a few. These courses require hours upon hours of studying. She is currently the only woman in her engineering class, and even more importantly, Karli is also consistently at the top of her class, setting the curve. Karli is very excited for her future. She has an opportunity to apply for an internship this summer and plans on doing so. She welcomes any experience she can get. Karli is currently on the Dean’s List at Cal State and is looking forward to dedicating more time to her studies and maintaining her GPA. She is on track to receive her degree in 2019.

Bakersfield, California. A big question Darby always gets asked is “Why sports medicine?” Well, as he has said, he is a student athlete and is in the home stretch of his last season of baseball. It will be his last season because he would like to dedicate his full focus on his education in college. Now this is no easy task, giving up a sport he has played from a young age until now. However, choosing sports medicine for a career allows Darby to not completely shut out the sports world in his life; a large part of his world that he has learned to know and love so much. This scholarship will be so beneficial to not only Darby but to the people of this wonderful community because it gives him the ability to branch out and get a wonderful education, and then come back to the hometown that has done so much for him. As most of us know, out-of-state tuition is significantly more expensive than in-state tuition, but Oklahoma is a place Darby has always wanted to explore, and he is looking forward to the new experiences and opportunities it has to offer as well. This scholarship can help with the cost of living, the cost of books, and can also help with the cost of the total tuition. Through all of this, Darby is hopeful that this scholarship will benefit this community by helping him on his journey of making Bakersfield a healthier place to be.

William Darby Mell

Darby Mell is a student athlete currently attending Centennial High School, as well as the Regional Occupational Center. He has plans to attend Oklahoma State University in the Fall of 2017. Currently, at the Regional Occupational Center, Darby is enrolled in a Sports Medicine class for the sole purpose of getting a feel for the career path he intends to follow. He has big plans to pursue a degree in Exercise Science and Health, with an emphasis on Strength and Conditioning. After receiving a master’s degree in this field, Darby intends to further his education in Physical Therapy School, where he can then obtain a Doctorate in Physical Therapy. With this certification, he feels it is important to bring his talents back to the community and use his newly acquired skills to help the people of

Lexi Ontiveros

Lexi Ontiveros currently attends California State University Bakersfield as a full-time student and plans to continue doing so. Her desired and current major is in business, with

LEXI ONTIVEROS a concentration on marketing. She plans to achieve a degree in marketing because it will give her exposure to a broad range of careers. Lexi has wanted to pursue a career in real estate for a while now. This is because she was raised around it, for her dad is a sole proprietor and has his own real estate appraisal business as an appraiser and broker. Also, almost all the men on Lexi’s dad’s side of the family have some sort of career involving real estate. However, there has not yet been a woman in her family that has attempted to pursue this kind of career, which makes her even more excited to be the first. Lexi would love to have her own business as a real estate appraiser, real estate agent, and property manager. When she took a personality test, real estate was one of the fields that matched up to Lexi’s personality, which backed up her previous interest of attaining her goals. Thinking of becoming a real estate appraiser is an easy future to imagine because Lexi currently works for her dad’s real estate appraisal business and loves it. She plans to work on getting her real estate license this summer and studying hard to deepen her understanding of the industry. Along with these aspirations, Lexi plans to continue flipping fixer-uppers with her family as a side job. She enjoys working hard and taking on challenges, which is why she finds having her own business in real estate someday very ideal. As you can see, having a business in real estate appears to be Lexi’s destiny because being involved in it so far has helped to shape who she is and has led her to finding what she loves to do. BAKERSFIELD REALTOR® MAGAZINE

STATEOFTHE

HOUSING MARKET

2016 Compared to 2017 by MLS Area

APRIL 2016 APRIL 2017

MARCH 2017 All Areas

All Areas

% Year over Year % Year over Year % Year over Year 2017 2016 April March 2017 2017 2016 2016 % Year over Year % YearChange over Year % Year over Year % Year over Year Change Change March 2017 2017 2016 2016 April April 2017 2017 2016 2016 Change Change Change Change Active 1,589 1,864 -14.8% Active Active 1,611 1,589 1,853 1,864 -14.8% -13.1% Active Active 1,589 1,589 1,864 1,864 -14.8% -14.8%Active Active 1,611 1,611 1,853 1,853 -13.1% -13.1% Contingent 243 269 -9.7% Contingent Contingent 279 243 277 269 -9.7% 0.7% Contingent Contingent 243 243 269 269 -9.7% -9.7% Contingent Contingent 279 279 277 2770.7% 0.7% Pending 1,081 1,098 -1.5% Pending Pending 1,118 1,081 1,202 1,098 -1.5% -7.0% Pending Pending 1,081 1,081 1,098 1,098 -1.5% -1.5% Pending Pending 1,118 1,118 1,202 1,202 -7.0% -7.0% Sold 702 650 8.0% Sold Sold 608 702 642 650 8.0% -5.3% Sold Sold 702 702 650 6508.0% 8.0% Sold Sold 608 608 642 642 -5.3% -5.3% Total Volume Closed $162,759,346 $145,252,261 12.1% Total Volume Closed Total Volume $149,477,891 Closed $162,759,346 $141,893,906 $145,252,261 12.1% 5.3% Total Volume Closed Total Volume $162,759,346 Closed $162,759,346 $145,252,261$145,252,261 12.1% 12.1% Total Volume Closed Total Volume$149,477,891 Closed $149,477,891 $141,893,906$141,893,906 5.3% 5.3% Median Sales Price * $221,000 $212,000 4.2% Median Sales Price Median * Sales $230,000 Price * $221,000 $208,250 $212,000 4.2% 10.4% Median Sales Price Median * Sales Price $221,000 * $221,000 $212,000 $212,000 4.2% 4.2% Median Sales Price Median * Sales Price $230,000 * $230,000 $208,250 $208,250 10.4% 10.4% Average DOM * 50 49 2.0% Average DOM *Average DOM * 44 5043 49 2.0% 2.3% Average DOM *Average DOM * 50 5049 492.0% 2.0% Average DOM *Average DOM * 44 4443 432.3% 2.3% March March

Bakersfield

QUARTERLY COMPARISONS

Pending Sold Total Volume Closed Median Sales Price * Average DOM * Average Sale Price/SqFt *

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Cont

Pend Sold

Total

Medi

Avera

Bakersfield

% Year over Year % Year over Year % Year over Year March 2017 2016 April March 2017 2017 2016 2016 % Year over Year % Year over Year % Year over Year % YearChange over Year Change Change March March 2017 2017 2016 2016 April April 2017 2017 2016 2016 Change Change Change Change Sold 607 563 7.8% Sold Sold 510 607 571 563 -10.7% 7.8% Sold Sold 607 607 563 5637.8% 7.8% Sold Sold 510 510 571 571 -10.7% -10.7% Total Volume Closed $142,338,418 $128,564,978 10.7% Total Volume Closed Total Volume $127,786,322 Closed $142,338,418 $128,884,625 $128,564,978 -0.9% 10.7% Total Volume Closed Total Volume $142,338,418 Closed $142,338,418 $128,564,978$128,564,978 10.7% 10.7% Total Volume Closed Total Volume$127,786,322 Closed $127,786,322 $128,884,625$128,884,625 -0.9% -0.9% Median Sales Price * $225,000 $220,000 2.3% Median Sales Price Median * Sales $236,500 Price * $225,000 $215,000 $220,000 10.0% 2.3% Median Sales Price Median * Sales Price $225,000 * $225,000 $220,000 $220,000 2.3% 2.3% Median Sales Price Median * Sales Price $236,500 * $236,500 $215,000 $215,000 10.0% 10.0% Average DOM * 46 46 0.0% Average DOM *Average DOM * 40 4642 46 -4.8% 0.0% Average DOM *Average DOM * 46 4646 460.0% 0.0% Average DOM *Average DOM * 40 4042 42-4.8% -4.8% * Figures from Single Family Homes Only. Statistics were run on May 31, 2017. * Single Family Only * Single Family Only Bakersfield uses the following Zip Codes: * Single Family*Only Single Family Only 93301, 93302, 93303, 93304, 93305, 93306, 93307, 93308, 93309, 1st Qtr 2017 1st Qtr 2016 93310, 93311, 93312, 93313 93314. New Listings 2,876 3,125

Contingent

Activ

700

604

1,991

1,989

1,663

1,674

$379,702,040

$373,370,870

$216,500

$215,000

137.56

132.97

Sold

Total

Medi

Avera

2017 YEAR-TO-DATE STATS Area

Dollar Value

# Sold

Average Sold Price*

DOM*

% of List Price*

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

101

$15,261,949

$15,150,760

$166,258

$157,517

97.31

96.60

$6,868,465

$5,902,314

$102,218

$99,558

98.88

97.75

$15,758,532

$13,283,016

$168,710

$158,131

98.45

$2,228,500

$3,304,250

$318,357

$293,523

96.12

96.52

104

$14,543,331

$14,875,790

$149,931

$143,163

97.66

97.50

189

226

$33,108,729

$40,464,115

$184,060

$182,566

97.65

97.49

$13,841,111

$15,633,374

$237,460

$237,329

97.96

99.35

$11,721,177

$11,500,670

$346,399

$310,829

93.79

97.67

$5,670,635

$6,540,730

$134,796

$121,125

96.13

97.37

$8,903,735

$8,387,100

$170,822

$167,382

98.06

96.32

$645,600

$531,000

$161,400

$177,000

96.68

96.63

187

238

$28,236,701

$35,494,425

$158,190

$154,763

98.56

98.33

479

565

$98,852,111

$113,987,680

$218,332

$212,886

98.54

98.52

305

320

$94,603,268

$104,692,557

$314,132

$331,529

98.35

97.72

$610,500

$984,990

$305,250

$328,330

100.58

98.81

$19,463,750

$23,624,569

$279,627

$261,162

98.20

98.51

432

408

$129,308,961

$120,429,736

$300,274

$295,245

98.77

98.20

151

170

$56,551,468

$57,938,227

$376,656

$340,813

97.93

97.58

$2,803,800

$2,695,900

$423,133

$422,983

97.73

95.18

$8,603,139

$1,269,825

$296,660

$317,456

141

99.01

98.45

$14,816,199

$13,011,675

$278,007

$252,127

97.57

98.01

$334,900

$352,000

$111,633

$88,000

254

95.74

89.13

$2,312,415

$216,000

$166,301

$95,500

216

92.14

98.00

$3,466,700

$2,901,900

$208,856

$153,717

100

97.56

97.88

$1,223,271

$2,664,800

$926,271

$500,980

100.68

96.38

$2,688,300

$1,240,000

$366,471

$413,333

176

96.39

94.73

$3,306,211

$3,315,590

$136,196

$126,487

96.91

94.45

$1,059,000

$510,000

$316,333

$255,000

96.85

98.27

$732,500

$72,000

$244,167

$72,000

98.06

96.64

$819,000

$1,105,000

$148,500

$204,750

91.67

96.98

$15,303,700

$15,875,883

$180,044

$188,999

98.29

97.52

$7,780,174

$8,393,229

$118,142

$108,390

97.09

96.89

$12,909,440

$12,941,845

$193,484

$184,884

97.64

97.38

$17,376,925

$14,639,899

$382,089

$321,370

98.15

96.56

* Figures from Single Family Homes Only. Statistics were run on May 31, 2017.

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REAL ESTATE IN THE NEXT

10 YEARS Where will the next big impacts on housing come from? STEVE MURRAY

REPRINTED FROM CEO DAILY

n a recent session at the Association Executive Institute entitled “Real Estate in the Next 10 Years,” REAL Trends shared some thoughts about where some of the big impacts on housing and brokerage will come from. Here are some trends from that presentation:

1. The Advent of Driverless or Autonomous Cars Americans spend an average of $9,100 per year on their cars. In total, $1.7 trillion was spent on buying, driving and repairing cars. Over $152 billion is spent on property and medical damage claims annually. Nearly 40,000 deaths and 4.4 million personal injuries were recorded in 2015, and that is

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just in the United States. And, virtually these deaths and injuries and claims were the result of driver error of some kind. Yet, on average, a car sits unused 96 percent of the time, and nearly 76 percent of all drivers drive alone. Imagine then, for the average driver who drives about 12,000 miles per year being able to have the same mobility at $.40 per mile— perhaps lower. That same driver would then save over half of the annual cost of having a car—$9,100 versus $4,800 per year for the same miles and destinations. Now think about that extrapolated over the whole population and the savings would be on the order of $800 billion per year! Here’s the question: Where would Americans spend that extra money? Would it be on entertainment, food, travel, clothes—or

would some extra go into housing? When you can work while in a car driven by someone or something else, do commute times matter that much anymore? Couldn’t you live further out and have that place in the country? What about disabled Americans, wouldn’t they be able to get around easier? And, how would such a change affect their choice of housing? So, while there may be no direct effect on brokerage (imagine agents focusing on their clients while in the car instead of driving), there could be a profound impact on how much consumers can spend on housing and how and where they might choose to spend it.

2. The Lengthening of Life spans We are on the verge of enormous changes in life spans due to advances in what we call bio-genetics. Such changes allow doctors to

grow your own replacement organs and limbs, solving the issues of the aging of our cells and their ability to replicate as we age—all are experiencing material advances. What happens to housing should our life spans increase 10-15-20 years? What changes happen in our work lives, with the housing we chose and where we end up when we are healthy and living well into our early 100s? How will that impact housing and housing choices? We already have tremendous growth in elderly and assisted housing but, clearly, it won’t be enough if this happens—which most experts believe it will. Where will the money come from? How will Social Security and Medicare survive if you add 10-15-20 years to people’s life times? These are questions that are going to plague America in the years ahead, and housing will be right at the heart of the challenges. We already are building enough for Boomers to downsize—how will the new supply be created?

3. The Securitization of the Equity Side of Housing Total mortgage debt at the end of 2015 was about $8.4 trillion dollars. For the most part, it has become securitized or it can be. But what about the estimated $13 trillion worth of housing equities (this was one estimate and it could be far larger)? Could it be securitized? Co-ops in New York are but one small, localized example where someone doesn’t own a home but rather shares in a corporation that permits them to occupy a unit. There are approximately 22 to 24 million, one- to four-family homes owned by investors today. An estimated 400,000 are owned by publicly held investment companies. There are a growing group of companies buying more and some who are outright offering to buy homes directly from sellers. It is entirely possible that a new class of homeowner will emerge. An investor-owned class where rather than owning or renting, someone could buy shares in a company and choose to occupy the home of their choice. Think it’s crazy? Remember that the Case-Shiller Index was built originally to enable investors to bet on the direction of the housing market. The transaction costs of the current feesimple title way to acquire the right to live in a home are around $170 billion a year. Smart money is betting on a change that reduces

these costs and where investors can participate in the housing market through these vehicles. Don’t doubt that there are some smart investors looking at this right now. After all, $13 trillion is a lot of money to have tied up in equities in one market.

4. The Shift from Relationshipbased Agent Selection to Online Selection This one poses the biggest change to the way our business operates. There are three foundational parts of the REALTOR® marketplace—the use of agents in the purchase or sale. This remained remarkably consistent for 30-plus years. Second is how consumers find and choose agents for the purchase and sale of houses. Again, this has remained consistent for 30-plus years where consumers use a prior relationship to make their choice. Thirdly, the view by consumers that the commission-based method of compensation is fair to both parties. It is the second where change is going to take place first. Increasingly, consumers are using ratings and review sites to make their final choices. In our 2014 consumer study, over 55 percent of Millennials, 36 percent of Gen-X and 26 percent of Boomers used such a site before making their final agent choice. Of those who did visit a site, their decision was either reinforced or changed by what they found—or didn’t find. This will increase in the years to come as Gen-X, Millennials and even Gen-Z make up more of the buyers in the market. They will increasingly go to such sites, more often before they even think of using a referred source. Today, almost two-thirds of the agents are chosen based on a relationship; in the future that could fall to half or even fewer in the next 10 years. This will transfer market share and power to the more experienced, higher-performing agents and teams. This is particularly true of those with great expertise in marketing online. Such a shift will further alter an already strained financial situation for brokerage firms; will make it far harder for new agents to get a foothold in the market, and raise the cost of high-producing agents beyond where it is today. While this is not likely a Tsunami-level event, consider it a large tidal surge—one that keeps on building, slowly but surely. This article reprinted with the permission of Real Trends Inc. Copyright 2017

SALAS, Continued from page 11

hard-working men and women who are trying to make ends meet to raise their families, and for the seniors and the disabled who live on fixed incomes. Because SB 1 imposes on, rather than asks, Californians how and to what extent we should invest on our roads, I could not in “good conscience” to my heart and to the families I represent, vote for a lifealtering measure that does not at least ask them to weigh-in. I know sometimes the unpopular thing is the hardest thing to do. But, again I must reiterate that I believe we have a duty to give a voice to those who are voiceless, and I must put my faith in our democratic process. I support a holistic proposal that leaves no community behind, a proposal that corrects the regressive tax structure that hurts struggling families the most, addresses the environmental justice concerns in our most polluted areas of the state, and helps ensure that every Californian has access to safe, clean drinking water. I commend all the work the Governor and my colleagues have done to address the transportation needs of our state. Although, I wholeheartedly believe that we could have done better. Anything worth doing is worth doing right, and that means putting in the time and effort to create an infrastructure package that all Californians can be proud of. Assemblymember Rudy Salas, represents the 32nd Assembly District, which includes part of Bakersfield, the cities of Arvin, Avenal, Corcoran, Delano, Hanford, Lemoore, McFarland, Shafter, Wasco, and the communities of Armona, Buttonwillow, Home Garden, Kettleman City, Lamont, Lost Hills, Stratford and Weedpatch.

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Twitter Facebook Pinterest

Social Media Platforms

Where Should You Invest Your Marketing Dollars? BRITTANY SHUR Manager of Marketing Strategy & Communication

The pros and cons of different social media platforms. While social media is not a new concept, the marketing capabilities of social platforms, such as Facebook, Pinterest and Twitter are expanding to meet the needs of a quickly evolving digital marketing landscape. It can be difficult to know which platforms are worth the marketing spend and which might leave you with less ROI. Here are the pros and cons of several marketing platforms:

Facebook PRO: Facebook is the heavy hitter when it comes to social media advertising. Not only is it the platform with the greatest number of users, but also the detailed profile information makes it a great tool to help you connect with your desired audience. Using Facebook Ads Manager, you can target your

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audience geographically—a capability that has expanded since advertising became available through Facebook—or by profile information. CON: While Facebook can generate a lot of impressions and higher-than-average clickthrough rates, the conversion rates from the social media giant seem to fall flat. Most people are using the platform to read their friends updates or interesting articles on their timeline. This can make it a challenge to engage a user.

Twitter PRO: With Twitter, you can use the interest categories to segment to whom your ads are shown. You can also use multiple types of ads using Twitter, such as promoted trends, timeline or profile ads. CON: One of the cons to advertising through Twitter is the limited reporting and analytics capabilities when compared to other social media platforms. This can make it difficult to accurately track your ROI and associate a

click on your ad with a completed action on your site.

Pinterest PRO: The biggest pro to using Pinterest for your company’s advertising is the ability to raise brand awareness by engaging your audience in a fun and social environment. Using Pinterest, advertisers can access top placements. Furthermore, you can continually target an audience that has shown intent or interest with your advertisement and content. CON: Similar to other social platforms, Pinterest has a low conversion rate and may not be the best platform if your overall goal is engagement and lead capture. This platform is best used for brand awareness. Additionally, Pinterest tends to attract more female users which can make it difficult for advertisers to reach a diverse audience. This article reprinted with the permission of RealTrends Inc. Copyright 2017

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