Realtor Magazine July August 2014 by Bakersfield Association of REALTORS®

J U LY | A U G U S T 2 0 1 4

INSIDE

Government

The Hottest Issues

W E’RE

MAKI NG

Design for Living What’s your ROI

OUR

Tejon Ranch

Outlets Discussed

C O M M U N IT Y

B E T T E R

Seller Leads The Nitty-gritty

PL AC E

L IVE

Win up to 100,000 $

HELICOPTER GOLF BALL DROP

Numbered golf balls will be dropped from a helicopter over the RiverLakes Ranch Golf Course green toward the target hole on October 24, 2014 at 5pm. If your ball is picked from a predetermined number of golf balls and lands in or closest to the hole, you will win our Grand Prize!

GRAND PRIZE: $100,000 1st Prize: $2,500 2nd Prize: $1,000

(1st & 2nd prize are guaranteed winners)

update

For contest details or to purchase tickets, call 635-2300 or visit the Bakersfield Association of REALTORS速 SUPPORT OUR LOCAL CHARITIES: The Wounded Heroes Fund and Habitat for Humanity. BUY YOUR GOLF BALLS NOW!

20 - 1 Golf Ball $ 100 - 6 Golf Balls $

EVERY GOLF BALL HAS A CHANCE TO WIN! Open to the public. Need not be present to win.

a tree today!

YO UR G IFT WI L L E NR ICH OU R COMMU N I T Y AN D E N VI RON ME N T

Cost of a tree

plus tax

(To have it professionally planted, add an additional $45 fee for labor).

CALL NOW! Order your tree today

661-635-2300 www.bakersfieldrealtor.org

BAKERSFIELD REALTOR速 MAGAZINE

CONTENTS

MEMBERSHIP BENEFITS

8 PAC CONTRIBUTORS SQUATTERS EVICTED 11

REALTOR® APPS

BAKERSFIELD REALTOR ® MAGAZINE Recognizing our 2014

Pilot program provides aid to law enforcement and property owners

Our Association offers various REALTOR® benefits tailored just for you and your business NAR offers many free apps to help you with your business while out on the field

WHAT’S RIGHT WITH HOUSING?

YPN SOFTBALL TOURNAMENT SNAPSHOTS

MEET OUR 2015 OFFICERS AND DIRECTORS

2014 SCHOLARSHIPS

13 UPCOMING FHA RULE Federal agency may restrict financing in HOA - governed communities that impose transfer fees

17 20 21

ON THE COVER SAVIOR OF THE UNION “In this temple, as in the hearts of the people for whom he saved the Union, the memory of Abraham Lincoln is enshrined forever.” Beneath these words, the 16th President of the United States sits immortalized in marble as an enduring symbol of unity, strength, and wisdom.

We so often focus on the negatives of the housing market, that we forget to see how the overall housing market is actually improving.

It was a fun day in the park with family, friends and peers. The winner of the tournament is?...

CLAIM YOUR REALTOR PROFILE ON realtor.com® Authenticate your Realtor® status on your profile to help build repeat and referral business

PICK A PALETTE

A new coat of paint on the wall can improve your home’s value. Emphasize your home’s assets and hide the flaws

OMBUDSMAN

Joe Newton tackles Mediation. Avoid arbitration or court by first getting matters resolved in mediation

New election process makes voting a breeze. We are are pleased to announce your new leadership Eight of our local students were awarded scholarships to help them fulfil their dreams of obtaining a degree

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

LETTER FROM THE PRESIDENT

Change your World

here is a saying, If you don’t like something, change it; if you can’t

change it change the way you think about it. We have experienced a few major changes in our Association during the first 6 months of 2014. Let’s recap a few of those highlights!

We implemented our first online voting process for the 2015 Officers and

Directors, which was a huge success! It was not only easy for each and everyone that took the time to vote, but the ratification of the ballots was smooth, accurate and effortless for our election committee. When the opportunity comes around again, please take the opportunity to cast your votes. Your voice does count, so exercise that right and vote! We held a special membership meeting to consider an amendment to our Association By-Laws to conform to what has always been our underlying policy, that there will only be two representatives from any one real estate brokerage firm on the Board of Directors at any time. This gives all offices, large or small, an equal voice in our Association’s governance. We are in the final stages of forming our own 501c3 charitable nonprofit foundation. We are almost there, and before year-end we will have the Bakersfield Association of REALTORS® Charitable Foundation up and running! This will greatly streamline our efforts to support charities approved by the Foundation’s Board of Directors while providing a simplified method allowing our donors to make tax deductible contributions. This has been a long time in the making and our efforts are finally bearing fruit! With a renewed vision, the possibilities are endless. Coming soon! (and I’m not referring to signs) The revision of C.A.R.’s new RPA-CA (purchase agreement) will be released in November! Gov Hutchinson will be providing an in-depth, 4-hour CE credit training session, covering all the changes made to the contract on September 23 at the DoubleTree Hotel. Knowing the contract is vital to your business and your success! To encourage participation in this essential contract class, the Association Board of Directors voted to supplement half the cost of the class, just for our REALTOR® members. The cost for our members is $30 and $75 for non-members. $30

for an accredited ® class is a small investment in your future and career! Be one of the elite that is ahead of the competition and prepared to hit the ground running when the new RPA-CA rolls out. You won’t want to miss this valuable educational session! Sign up today! Let’s continue to make good things happen during the rest of the year! Keep the sales rolling and your involvement top notch!

Continue to Change your Words… Change your World!

LETTER FROM THE CEO

Symbols of Our Freedom

e hold these truths to be

symbolizing our nation’s strength and unity;

self-evident, that all men

the bald eagle was selected in 1782 because

are created equal, that

of its long life, great strength and majestic looks; and our great seal which shows the

they are endowed by their Creator

bald eagle with its wings outstretched. It

with certain unalienable Rights, that

holds a bundle of 13 arrows in its left talon

among them are Life, Liberty and the

(referring to the 13 original states), and

pursuit of Happiness. That to secure

an olive branch in its right talon, together

these rights, Governments

symbolizing that we have a strong desire for

are instituted among Men, deriving

peace, but always ready for war. The eagle

their just powers from the consent of

has its head turned toward the olive branch,

the governed.

on its right side, symbolizing a preference for peace. In its beak, the eagle clutches a scroll

INDEPENDENCE DAY…

with the motto E pluribus unum (“Out of

The anniversary of the adoption of our

Many, One”).

Declaration of Independence… the birth of our great nation! With the signing of this document on July 4, 1776, a standard was set… a moral standard to which the United States should strive… a statement of principles through which the United States Constitution should be interpreted. Can you imagine the message of hope and encouragement this gave to those who sacrificed and fought so courageously to earn those rights! But could they even begin to imagine the great power, influence and inspiration the words of this declaration would have, not only to our own country, but to nations throughout the world?

2014 OFFICERS President Theresa Olson RE/MAX Magic

President-Elect Sheri Anthes Coldwell Banker, Preferred — Ming

Vice President Bill Redmond Watson Realty ERA Secretary/Treasurer Midge Jimerson Boydstun Realty Co. Inc.

As the benefactors of the freedoms we so Despite the fact that we often become

abundantly enjoy today, we have a profound

overwhelmed and filled with anxiety over the

moral obligation and responsibility to never

turmoil and uncertainly that fills our world

forget and to continue to honor and protect

today, those truths have never waned… nor

those freedoms for generations to come!

should our dedication and commitment for

In a society where apathy is rampant

which we have been entrusted to promote

and accountability fleeting (personal and

and defend.

governmental), are we willing to acknowledge

There are symbols that serve as a constant

our complacency and commit today to the

daily reminder of our nation’s purpose and

standard set 238 years ago and renew our

commitment, which include the American

commitment to making a positive difference?

Flag, the bald eagle and the Great Seal of Our Nation. For 238 years the American Flag has been a source of pride and inspiration,

Immediate Past President David Knoeb Frontier Real Estate Services Chief Executive Officer - Linda Jay

2014 DIRECTORS Athena Collup Miramar International – Marketplace Pam Epps EPCO & Associates John Garone, Jr. Coldwell Banker Preferred - Westwind

David Gay Scott Tobias Real Estate

Wayland Louie RE/MAX Golden Empire

Jacob Marquez Miramar International – Marketplace

Kevin Palla Watson Realty ERA

Derek Sprague Sprague Real Estate Group BAKERSFIELD REALTOR® MAGAZINE

The Hottest Legislative Topics ®

REALTORS ® TACKLE THE TOUGH ISSUES

THE NAR ISSUES

BY KIM SCHAEFER, Government Affairs Director Bakersfield Association of REALTORS®

The REALTORS® Midyear Meeting and Trade Expo is where the National Association of REALTORS® takes an active role in advancing the real estate industry, public policy, and the Association. Our Bakersfield delegation was in Washington, DC for special issues forums, committee meetings and legislative activities. We took the following issues to our congressional members: Preserve the Mission and the Purpose of the FHA Program It is important to ensure that the FHA singlefamily program has the tools and policies in place to meet its mission of providing access to safe, affordable mortgage financing to qualified borrowers nationwide, without imposing burdensome limitations.

H.R. 2767 - Protecting American Taxpayers and Homeowners (PATH) Act - Garrett (R-NJ) / Hensarling (R-TX) – OPPOSE The House Financial Services Committee has passed the PATH Act. This legislation makes significant and troubling changes to the FHA program, including increasing down payment requirements, lowering FHA’s loan limits, and significantly restricting who can use the program. This bill alters and reduces the role of the FHA, curtailing opportunities for homeownership for millions of qualified American families. NAR strongly opposes this bill. S. 1376 - FHA Solvency Act of 2013 - Johnson (D-SD) / Crapo (R-ID) – SUPPORT The Senate Banking Committee has passed the FHA Solvency Act of 2013. This bill contains common sense reforms which give FHA greater authority for risk management

and provide additional tools to the FHA to better manage taxpayer risk. FHA, like every other holder of mortgage risk, has incurred financial losses as a result of high foreclosure rates. FHA has taken a number of steps to recoup its financial stability. These steps include increasing premiums five times in the last 2 years, increasing down payments on some borrowers, and increasing its risk management practices. Congress should not impose additional cost or qualification burdens on consumers. Further mandated increases to premiums or down payments will disenfranchise American families and hurt our nation’s housing and economic recovery. This legislation provides the FHA with flexibility to make necessary changes to the program, adds new taxpayer protections against lenders who make errors of material fact, and improves program oversight.

Preserve Real Estate-Related Tax Policies Lawmakers should remember the vital role that real estate tax provisions play in the nation’s housing markets and economy, as well as the financial well-being of America and families. While tax reform is currently on the “back burner”, the ideas introduced by House and Senate tax reform draft plans will be reconsidered when Congress gets serious about moving tax reform. It is important Congress understand now that reforms which harm real estate are non-starters. In the meantime, there are also urgent provisions which have expired that Congress should extend now. Mortgage Interest Deductions (MID): For more than a century, the MID has helped make homeownership more affordable for families of moderate means. Any efforts to eliminate or weaken mortgage interest deductions for primary and second homes. Property Tax Deduction: Property taxes paid are not properly considered “income” for income tax purposes. Eliminating the deduction would result in double taxation. Eliminating property tax deductions should be opposed. Mortgage Debt Forgiveness Relief Act: A provision that waives income tax on mortgage debt forgiven in a short sale or a workout for principal residences expired at the end of 2013. If distressed homeowners

NAR Offices Washington D.C.

have to pay a tax on “phantom income” from forgiven debt, many will proceed with short sales or workouts and will go into foreclosure. Congress should extend this tax relief now. Like-Kind Exchanges: This longstanding provision allows investment real estate to be exchanged for property of a like-kind on a tax deferred basis. Exchanges are a key part of a high percentage of investment real estate transactions; if repealed fewer development projects will go forward, resulting in fewer jobs. Reform the Secondary Mortgage Market to Provide Certainty in the U.S. Housing Market Lawmakers should restructure the secondary mortgage market to ensure that affordable mortgages are available to all consumers in all types of markets, and to avoid a major disruption to the nation’s economy which would result from the total collapse of the housing finance sector. Fannie Mae and Freddie Mac were created to ensure that creditworthy borrowers had access to affordable mortgage capital no matter where they lived in the United States. For more than 70 years, the system worked well, combining government support and private capital to make affordable mortgages available to consumers. The system faltered during the housing collapse, and since 2008, Fannie Mae and Freddie Mac have been in conservatorship under the supervision of the Federal Housing Finance Agency (FHFA).

During the last two sessions of Congress, there has been much discussion regarding the causes of the housing collapse, and the role that Fannie Mae and Freddie Mac played. It is unclear if any of the current proposals to overhaul the housing finance systems will be signed into law this year.

C.A.R. ISSUES

Each year, thousands of REALTORS® meet in Sacramento on Legislative Day to advocate on key issues affecting the real estate industry. Here are the summaries of the issues that the Bakersfield delegation discussed with legislators. SB 1439 – Ellis Act Restrictions – Leno (D-SF) / AB 2405 – Ammiano (D-SF) – OPPOSE As background, the “Ellis Act” prevents local governments from passing laws restricting the ability of landlords to go out of business. The Ellis Act currently provides protections in terms of advance notice to tenants, relocation assistance and extended notice protections for seniors and the disabled when a landlord elects to go out of the rental business. SB 1439 (Leno) would force landlords to stay in business for at least five years, and AB 2405 (Ammiano) would prevent landlords from ever going out of business. SB 1439 would empower local government to restrict the ability of landlords to take rental units off the market unless every owner of that rental property has owned the property for at least FIVE consecutive years. This effectively forces landlords to remain in the rental housing business, making it impossible for these owners and their families to occupy their own property. Additionally, under SB 1439, if an owner submits a notice to take rental units off the market, that owner cannot submit a notice on any other property he/she subsequently purchases. While SB 1439 only applies to the City and County of San Francisco (a “district” bill), AB 2405 applies statewide. SB 1439 sets the stage for this effort to spread throughout the state, limiting and restricting the rights of private property owners to buy and occupy LEGISLATIVE Continued on page 10 BAKERSFIELD REALTOR® MAGAZINE

RECOGNIZING OUR

2014 PAC CONTRIBUTORS NAR GOLDEN R

CAR GOLDEN R

PRESIDENT CIRCLE LIFETIME INVESTOR

$10,000 - $15,000

Jeanne Radsick

CAR GOLDEN R (NAR STERLING R) Chartered

Gail Malouf Theresa Olson Scott Tobias Linda Jay

NAR STERLING R Sheri Anthes David Knoeb Bakersfield Association

Athena M. Collup

John B. Knight

Bill Redmond

Jose J. Zepeda

Ivan De La Torre

Scott D. Knoeb

Sal Rivas

Pam L. Zulfa

April D. Degagne

Garry Kornbau

Scott Rivera

Rosina Jeppi Dewar

Wayne Kress

Brandon Gene Roberson

CONTRIBUTORS

Frank C. Jr. Abbott

Gayle Dobbs

Dana R. Kuntz

Debra A. Roberson

Robin Ablin

Joy E. Dorotheo

Jean E.C. Laborde

Joe Roberson

Todd Ablin

Shahabeddin Drakhshandeh

Yan Lahn

Blodgie M. Rodriguez

Mary K. Allen

Adriana Aguirre

Louis Duarte

Marie Lenzi

Justin Ryan

Rhonda L. Anderson

Anna A. Albiar

Yolanda Duran

Phyllis R. Lopez

Mike Saba

Becky Ashcraft

Elvia E. Alvarez

Felice P. Durazo

Wayland Louie

John Sanchez

James M. Bean

Annette M. Anello

Ann Enge

John P. Mackessy

Joe S. Sandhu

Jessica L. Chester

Sheri Anthes

Silvia Espinoza

Josephine U. Magat

Joe Santa Cruz

Rita G. Corson

Jim Jr. Antt

Nance Fillmore

Robert L. Malkin

Aileen Saucedo

Stacy L. Cox

Barbara A. Apsit-Incardone

Valerie J. Fisher

Gail Malouf

Jeri Schueler

Ben J. Farber

CONTRIBUTORS of $148 True Cost of Doing Business

Less Than The True Cost of Doing Business

Barbara Archer

Lydia E. Fleming

Jacob Marquez

Sandy Segrest

Perminder K. Gill

Tony Ayon

Kristina Foit

Joanne Martin

Frank Simon

Alexandra Guerrero

Bruce G. Barnhard

Darlene F. Foss

Martin Mayorga

Darrell Sparks

Roger Herrick

Bryan Batey

Nikkie L. Fowler

Diana L. McCombs

Derek Sprague

Martha L. Johnson

Kenneth G. Beavers

Michael Aaron Freedman

Timothy F. McCrary

Frank St. Clair

Barbara Konnoff

Robbyn Belezzuoli

Pascual Garcia

James A. McEwen

Gayle E. Stewart

Debby Krohn

Gary Belter

John Garone

Christie Ya Meek

Tracy L. Studebaker

Troy T. Lei

Melody Joy Blain-Eilers

John J. Garone

Ian A. Mellon

Luz O. Tamarra

Elizabeth Marquez

Penny Boeman

David Gay

Judy Miller

Teresa D. Taylor

Debra McTaggart

Kay Boyer

Baljit S. Gill

Melba D. Mohlke

Brian N. Tuttle

Valerie M. Moses

Lester A. Boynton

Manuel Gomez

Carol R. Moore

J. Steve Urner

Tracy M. Nail

Kathy Breeding

James Graddy

Dana L. Munson

Michelle R. Vaca

Maria Ochoa

Lisa L. Brown

Louie Gregorio

James T. Murphy

Thomas Varughese

Maria Pandura

Sara S. Burnette

Scott I. Hanson

Lourdes N. Naff

James Vaughn

Coleen Peters

Juan M. Bustamante

Suzanne L. Harandi

Ronda Newport

Lisa A. Villaseno

Ricky Portillo

Donald G. Bynum

Nancy Harper

Walt Newport

Marie C. Villaseno

Issam Qassim

Betty J. Byrom

Stacy Harrison

Kevin Palla

Leslie R. Walters

Emily C. Smith

Judy M. Camp

Carol Helm

Alejandra Pelayo

Teri L. Ward

Isella Vega Arellano

Rhonda K. Canady

Iliana Hernandez-Abbas

Angela Perdikis

Ashley Weaver

Diane F. White

Lezlie Chaffin

Midge Jimerson

Glenn Porter

Dan Wells

John W. Willingham

Jennifer M. Chou

Seth E. Johnson

JP Porter

Wanda A. Winkler

Jackie Wilson

Lavaundia Clark

Travis S. Keller

Maria L. Prior

Maria C. Woods

Richard Clasen

Alyssa M. Knight

Kristin D. Raymond

Jesse Zepeda Garcia

BAKERSFIELD REALTOR速 MAGAZINE

MEET YOUR 2014 REPRESENTATIVES

CONGRESS

STATE

Kevin McCarthy

Jean Fuller

Rudy Salas

David Valadao

Shannon Grove

Andy Vidak

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

Senator 18th District Phone: 661-323-0443 Sacramento: 916-651-4018 Email: Senator.Fuller@senate. ca.gov

Assemblywoman 32nd District Phone: 661-395-2995 Sacramento: 916-319-2034 Email: assemblymember.grove@ assembly.ca.gov

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

COUNTY SUPERVISORS First District Supervisor Mick Gleason Phone: 661-868-3650

Fourth District Supervisor David Couch Phone: 661-868-3680

Second District Supervisor Zack Scrivner Phone: 661-868-3660

Fifth District Supervisor Leticia Perez Phone: 661-868-3690

Third District Supervisor Mike Maggard Phone: 661-868-3670

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

Senator 16th District Phone: 661-395-2620 Sacramento: 916-651-4016 Email: andy.vidak@sen.ca.go

CITY REPRESENTATIVES Harvey Hall, Mayor Office: 661-326-3770 Willie Rivera Councilmember, Ward 1 Office: 661-326-3767 Terry Maxwell Councilmember, Ward 2 Office: 661-326-3767 Ken Weir, Vice Mayor Councilmember, Ward 3 Office: 661-326-3767

Bob Smith Councilmember, Ward 4 Office: 661-326-3767 Harold Hanson Councilmember, Ward 5 Office: 661-326-3767 Jacquie Sullivan Councilmember, Ward 6 Office: 661-834-4943 Russell Johnson Councilmember, Ward 7 Office: 661-326-3767 BAKERSFIELD REALTOR速 MAGAZINE

Some of our local REALTORS® take a snapshot at the California State Capitol in Sacramento with Senator Andy Vidak, 16th Senate District

LEGISLATIVE, Continued from page 7

their own property. These bills restrain and effectively prohibit the free use of private property in rent control jurisdictions, provide no exceptions or relief for property owners who have personal or financial hardships, and are fundamentally offensive to the notion of private property rights. AB 2039 - Auction Company Liability – (Muratsuchi) – SPONSOR A new practice has arisen where some lenders require homes in a short sale transaction to be put up for auction typically run by a third party auction company chosen by the lender. If the bids come in under the original offer, then the offer is accepted. However, if a higher bid is submitted then that bidder can purchase the home. The lender, of course, has complete control over the auction contract. As a condition of approving the short sale and absent legislation to the contrary, the lender can include a provision in the contract requiring the homeowner to agree to defend, indemnify, and hold harmless the auction company from any costs, liabilities, and damages arising in connection with any claim resulting from the auction company’s actions. This bill would prevent real estate auction companies from shifting liability for their mistakes to sellers and listing agents when the lender sends short sale properties to auction to validate their value. SB 391 – Recording Tax (DeSaulnier) – OPPOSE This bill would impose a $75 tax on the recording of all non-sale documents, including refinances. C.A.R. opposes SB 391 because it unfairly singles out one segment of

BAKERSFIELD REALTOR® MAGAZINE

REALTORS Applaud House Passage of Mortgage Choice Act ®

Jenny Werwa | NAR

WASHINGTON – The following is a statement by National Association of REALTORS® President Steve Brown: “The Mortgage Choice Act that passed the U.S. House of Representatives. Most importantly, it redefines a provision in the Ability-to-Repay rules that limits mortgage fees and points to three percent in order for home loans to be considered Qualified Mortgages. The provision unfairly prevents brokers and affiliated lenders from making QM loans because their joint venture services are collectively counted against the cap, while individual services from large retail financial institutions are each capped separately. The Mortgage Choice Act treats affiliated and non-affiliated service providers the same way under the rule while still protecting borrowers from risky loan products. REALTORS® will continue to advocate for this legislation to clarify the QM rules as it moves to the U.S. Senate.” The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

society to pay for something that should be the responsibility of all Californians. C.A.R. is opposing this bill which imposes a recording tax of $75 per document to generate funds for affordable housing programs. C.A.R. is opposing this measure because it unfairly adds to the cost of recording real estate documents. C.A.R. is an aggressive advocate for affordable housing, but believes it is bad policy to fund affordable housing at the expense of homeowners who need to record real estate documents. The real issue is that this tax is imposed only on real estate document recordings. AB 2416 (Stone) – Wage Liens on Property – OPPOSE This is a bill which creates a new superlien for wage claim disputes. C.A.R. opposes AB 2416 because it threatens the availability of mortgage finance, denies due process to the owner of the property, and unnecessarily clouds title. Under existing law, trades people and others who have conducted work to improve a property have the right to record a mechanics lien against the property for payment for that work. Additionally, if an employee has a wage dispute with his/her employer, there are multiple legal remedies available to seek fair compensation. AB 2416 seeks to expand the mechanics lien concept so that an employee may record a lien against any property owned by the employer, even property that has NO connection to the dispute. This isn’t a standard lien right either. AB 2416 creates a superlien for the first $50,000 of the claim. This super-lien would be paid before any other lien except tax and government liens, purchase money mortgages and mechanics liens.

Squatters Evicted

Pilot program provides aid to law enforcement and property owners In recent years, sophisticated and savvy squatters moving into vacant homes in Kern County have been a frustrating problem for homeowners, REALTORS®, and law enforcement. Finally, there may be help on the way. Assemblymember Steve Fox of Palmdale has introduced AB 1513 “Squatters”. This promising bill establishes a pilot program to facilitate enforcement of criminal trespassing laws in a timely manner against persons occupying residential property. Currently, under California law it can take a minimum of 30-60 days to evict a sophisticated squatter. The process can be unquestionably frustrating for both the homeowner and law enforcement. This bill will provide a clear-cut, expedient remedy for property owners whose homes have been taken over by squatters. AB 1513 establishes a pilot program to be in effect until 2018 to aid enforcement of criminal trespassing laws against persons occupying residential property which (pursuant to the program) has been registered and verified by local law enforcement to be vacant. The bill outlines a voluntary pilot project which will allow property owners to declare property to be vacant and register it with local law enforcement. This will then provide greater certainty that any subsequent trespasser

Kim Schaefer GOVERNMENT AFFAIRS DIRECTOR

upon the property will be subject to arrest for trespassing within 48 hours, so long as regular inspection of the property at 3-day intervals has confirmed it to be vacant since the date of registration. This bill is sponsored by the California Association of REALTORS®. It would provide property owners with an additional tool to enforce criminal trespass laws. According to Assemblymember Fox, “Unlawful detainer laws are not specifically designed to provide law enforcement officials the tools they need to assist owners of residential real property in their efforts to remove or prevent occupancy of squatters on vacant properties.” The program is intended to deter squatting and to provide a second chance for squatters to vacate the premises in lieu of arrest. The threat of arrest for trespassing on a property registered under this program will also serve as a deterrent to

sophisticated squatters targeting vacant properties. The pilot program established by this bill applies to residential properties within the cities of Lancaster and Palmdale. It is anticipated that several more cities will voluntarily seek to be included as the bill moves forward, given the prevalence of squatting in certain areas of California where vacant homes are common as a result of the foreclosure crisis. Assemblymember Fox continues to address workability and implementation problems within the proposed pilot program, and has demonstrated willingness to work with opponents and other stakeholders. The City of Bakersfield and the Kern County Board of Supervisors need to submit an official request to be included in the pilot program. AB 1513 is currently in the Senate Committee on Public Safety. Contact your local elected officials (Page 9) and let them know what you think about AB 1513. You can find additional information on AB 1513 at www.leginfo.ca.gov or by contacting Kim Schaefer. Remember, prevention is the best solution, so take precautions to prevent squatters from moving in the first place. Keep your property secure at all times. Drive by your properties and inspect them daily.

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:

THEATEAM

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

n Attend activities and events such as 1st Thursday Brew & Breakfast. n Volunteer their time and energy to support the Association’s programs and activities.

SHERYL GALLION

MONA CIMENTAL

n Promote Association activities to other members.

sgallion@ticortitle.com

mcimental@propertyid.com www.propertyid.com

Ticor Title 661.342.7802

n Contribute raffle items and door prizes, as well as sponsor various programs and special events.

Property I.D. 661.220.0159

MICHELE COOPER

Chevron Valley Credit Union 661.900.2358

mcooper@chevronvalleycu.com

For all their efforts, A Team Members earn these opportunities: n Featured in all issues of Bakersfield REALTOR® Magazine. n Complimentary advertising through The A Team contact list on the Association website.

LISA HOOK

BARBARA WELLS

lisa.hook@prospectmtg.com www.myprospectmortgage.com

bwells@sjvalleymortgage.com

Prospect Mortgage 661.301.5472

San Joaquin Valley Mortgage 661.703.2227

SAM JABUKA

Jabuka Home Inspections 661.664.8629 jabuka@sbcglobal.net

n Complimentary recognition on the Association Reception TV.

Mike George

n First opportunity to sponsor key events with sponsor banner.

mikegeorge @agapemtgco.com www.agapemtgco.com 661.324.2427

If you’re interested in joining The A Team contact Mike George, our Affiliate Chair!

Affiliate Chair

Agape Mortgage

ASHLEY WEAVER

Karpe Real Estate Center 661.847.4982 karpe.com Aweaver@karpe.com

You can be a part of The A Team too! Call Mike George at 324- 2427 for more information

BAKERSFIELD REALTOR® MAGAZINE

Upcoming FHA rule could

squeeze homebuyers and sellers

KEN HARNEY | CONTRIBUTOR

EALTORS®, lenders and community associations are up in arms about forthcoming Federal Housing Administration rules they believe could make mortgage financing more expensive — maybe even impossible — for large numbers of buyers and sellers around the country. The concerns are not about condo certifications this time around — an issue that has caused hundreds of condo developments to drop their eligibility for FHA mortgages on individual units. The new problem is even broader, affecting potentially tens of thousands of homeowner associations which routinely impose transfer fees whenever units are sold. The fees, which range from $100 to $500 in most cases, are used frequently by HOAs to replenish capital reserves, make improvements to infrastructure, or even fund environmental conservation activities. Unlike the controversial investor-driven private transfer fees marketed by Wall Street’s

Federal agency may restrict financing in HOAgoverned communities that impose transfer fees Freehold Capital Partners in 2010 and 2011, most HOA transfer fees are used to benefit the community. Here’s the problem: In response to the widely-criticized private transfer fee programs, Fannie Mae and Freddie Mac adopted guidelines in 2012 that banned private-purpose, investor-benefit transfer fees from eligibility for conventional financing. Their rule carefully distinguished between the Freehold Capital type of fees — which generated income streams for bond investors for up to 99 years — and the typical HOA transfer fees designed to benefit the community’s residents.

More recently, lawyers at the U.S. Department of Housing and Urban Development’s Office of General Counsel have warned FHA that under existing “free assumability” regulations, the agency is not permitted to insure mortgages on properties that come with “restrictions on conveyance” — encumbrances on the title that could hamper transfers. This includes fees required to be paid at the sale of units in communities governed by homeowner associations. The Community Associations Institute (CAI), the largest trade group representing HOAs, estimated that as of 2012 there were 323,600 association-governed communities in the U.S., containing just under 26 million housing units and 63.4 million residents. Based on a recent CAI survey of members, roughly 72% of HOAs impose transfer fees of one sort or another when units are sold. Most collect flat fees but some charge a small percentage of the sale price. According to HUD sources and interested FHA RULE Continued on page 30 BAKERSFIELD REALTOR® MAGAZINE

MEMBER BENEFIT

WE PROMOTE

YOU

Welcome, New Members

We market the REALTOR® Brand and home ownership so you don’t have to. The 2014 Marketing and Communications plan focuses on continuing to build a positive public image of our industry and our members. Our values and our brand are actively communicated

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

through monthly ads in the Bakersfield Californian, Bakersfield Life Magazine and Kern Business Journal. Headlines and messages are crafted so that they represent

elcome to the Bakersfield Association of REALTORS®. We are a community of likeminded professionals with the same objective… to grow a stronger community. We are more than REALTORS® we are family. Your local Association offers the highest quality of personalized, one-on-one member support found only at a local level.

who we are and reflect our values. In addition to this valuable publicity, the Board of Directors has proactively created new programs and partnerships that demonstrate our commitment to our community. These help promote our members and the real estate profession. Here are just a few examples: n Make-a-Wish Foundation n The Ronald McDonald House n The Golden Empire Gleaners n The Wounded Heroes Fund n Bakersfield Symphony Orchestra n Bakersfield Condors n Kern Economic Development Corp. n K-12 Schools - Fair Housing n Downtown Business Association n JJ’s Legacy n The H.E.A.R.T.S Connection of Kern County n American Cancer Society n And so much more BAKERSFIELD REALTOR MAGAZINE

new realtors ® JUNE 2014

JUNE:

Frances Alindajao — Tholco Real Estate Group, Allen II Mark Douglas — Keller Williams Realty, Michael Bettes — Keller Williams Realty, Barbra Jean Cornelius — Keller Williams Realty, John Eric Epperly — Miramar International, David Fabrizius — Miramar International, Marketplace, David Ray Gill — RE/MAX Golden Empire, Hugo Gomez — Sprague Real Estate Group, Anthony Dale Kessler — Miramar International, Haggin Oaks, Sandra Joyce Kownacki — The K Group, Adriana Gabriela Martinez — Keller Williams Realty, Angela Dawn McCuan — Miramar International, Coffee, Floyd Roberts — Platinum Realty, Inc., Marleny Rodriguez — El Valle Realty, Marlene Tello-Miguez — Karpe Real Estate Center, Connie Marie Totten — RE/MAX Magic, Amanda Watts — Miramar International, Mill Rock, Brooke Michelle Webb — RE/MAX Magic

Membership Benefits WHAT’S IN IT FOR YOU! With your commitment to our Association, we offer various REALTOR® benefits tailored just for you. EDUCATION Educational programs, products and services to enhance your knowledge and skills for greater success in your real estate business. Many are offered at no cost or at a reduced rate for members; including, classes, seminars and hands-on user workshops covering relevant, up-to-date topics and technologies for the real estate industry. REALTOR® designation classes are also offered. ZIPFORMS® C.A.R. develops new standard real estate forms in response to legislative and court decisions. Each form is carefully reviewed by experienced REALTORS® and real estate attorneys, available online through zipForms®. ADVOCACY EFFORTS AT NATIONAL, STATE AND LOCAL LEVELS OF GOVERNMENT n Your dues support REALTOR® offices in both Sacramento and Washington, D.C. which review thousands of bills on all government levels n Our Government Affairs Director lobbies our local government agencies on issues that protect the real estate industry and private property rights. LEGAL SERVICES An exclusive member service, C.A.R. Legal “Hotline” responds to legal inquiries from REALTORS®. You have free access to this service with your dues investment. OMBUDSMAN SERVICES As a REALTOR® you have access to our Association’s Ombudsman who provides counsel, advice and education to REALTORS® and members of the public on our professional standards, monetary disputes prior to arbitration, as well as formal arbitration and Code of Ethics complaint policies and procedures.

LEGAL Q&As Available to members is a full range of legal opinions pertinent to the real estate industry. Developed by C.A.R.’s attorneys and available online at www.car.org. ETHICS & PROFESSIONAL STANDARDS REALTOR® Code of Ethics is designed to instill the highest standards of professionalism in the industry and to elevate the image of REALTORS® in our community. MLS AND TECHNICAL SUPPORT Our MLS manager provides support and training on MLS issues relative to recent developments and trends. COMMUNITY REALTOR® IMAGE A public relations program aimed at serving the community and elevating the REALTOR® image through fundraisers for local charities and advertising in various publications. realtor.com® PROFILE A realtor.com® marketing profile to you at no additional cost. Claim yours today at www.goo.gl/A01Zul REAL ESTATE STORE A convenient location to purchase many of the supplies you need for your business. Prices are discounted for members, and charges can be conveniently made to your Association account. C.A.R. MAGAZINE Published by the California Association of REALTORS®, C.A.R Magazine brings

you important information on industry trends and new techniques geared towards success. REALTOR® MAGAZINE Published by the National Association of REALTORS® and delivered to its members, REALTOR® Magazine is filled with news and Information designed to provide insights on how to be successful in the current complex marketplace. BAKERSFIELD REALTOR® MAGAZINE Published by the Bakersfield Association of REALTORS® and available to its members. Bakersfield REALTOR® Magazine is filled with news and local information designed to provide insights on how to be successful in our local market. FAIR HOUSING PARTNERSHIP Implementation of the “Fair Housing Partnership” between HUD and REALTORS® available to members, facilitating their qualification to participate in HUD sales and demonstrating a commitment to fair housing practices. GROUP INSURANCE As a REALTOR® member, C.A.R. offers a wide array of group insurance plans, including errors and omissions insurance, with flexible premiums and discounts. MEMBERSHIP DISCOUNTS Available at participating retailers through the group buying power of the NAR and C.A.R. LOCAL STAFF SUPPORT Professionals serving professionals. Our professional staff is here to support you and your business.

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Apps Created for REALTORS

C.A.R. offers business tools designed just for you while out in the field or in the home ABR App (iOS) (Free) ABR agents, this is your App! This powerful set of resources was developed to provide you with the real estate tools you need and the information your clients want. Casmy REALTOR® (iOS) (Free) Casmy Realtor® is an easy-to-use mobile application and service for real estate professionals which optimizes Open House Events. It collects real-time visitor demographic information, buyer interest levels, qualifies loan status, property details, including the ability to generate powerful custom reports that can be shared instantly with any visitor, broker or senior management. Dictionary of Real Estate Terms (iOS) ($3.99) Dictionary of Real Estate Terms is filled with over 3,000 industry-specific terms, covering every aspect and nuance of the real estate industry.

DocuSign Ink – Sign Documents & PDFs (iOS) (FREE) Sign documents and get signatures quickly and easily from an iPad or iPhone. Eliminate the need to print, fax or mail documents and forms for signature. Dweller (iOS) (Pain Plans) Get great-looking mobile apps for your property for one low fee. Delivered in less than two weeks. eBooks from NAR’s Virtual Library (iOS) (Free) Download EPUB eBooks and MP3 audiobooks directly to your device. eKEY (iOS) (FREE) With eKEY software, use your iPhone as your lockbox key. The eKEY app updates wirelessly so you can conduct business anywhere! The eKEY Basic app provides wireless updates, alerts and listing keys. Keep track

of all your key boxes right from your phone! Manage and program your key boxes. Easily place and remove key boxes from listings using your phone. (You can also change your own shackle codes.) Foreclosure Search by USHUD.com (iOS) (FREE) USHUD.com is a totally free list of foreclosures. It lists properties owned by the government and all major banks. This gives REALTORS® & Lenders an exclusive opportunity to help homebuyers purchase homes in their local area. PropertyRadar (iOS) (FREE) Create inventory, find hidden properties, attract investors, sellers and homebuyers. PropertyRadar gives you foreclosure information from ForeclosureRadar®, plus new tools and search criteria that will open even more opportunities. House Auction & Home Foreclosure Auction Profits (iOS) ($4.99) Making money from house auctions can be a very exciting and lucrative way to become a property investor. The quickest route to best returns is from bank foreclosure auctions. This brand new guide tells you everything you need to know to get involved in this profitable venture. Housing Discrimination Complaint Application (iOS) (FREE) Use this app to submit a claim of housing discrimination for review by Housing and Urban Development’s Office of Fair Housing and Equal Opportunity. IREM Comps (iOS) (Free) The IREM Comps app is a tool that allows you to establish competitive rents for your residential, office, or retail property. You can enter data for three comparable properties and the app will calculate the adjusted effective rent for your subject property. You will also have the ability to e-mail the results in spreadsheet format to anyone. Junaio Augmented Reality Browser (iOS) (FREE) junaio is a mobile augmented reality REALTOR® APPS Continued on page 24

BAKERSFIELD REALTOR® MAGAZINE

Claim Your Profile on realtor.com

Build repeat and referral business at no cost to you

realtor.com®

se realtor.com® to manage what people learn about you. Build repeat and referral business. According to a recent survey by the National Association of REALTORS®, a majority of homebuyers reported that they used an agent they either knew personally or through referrals and recommendations. Get this working for you both locally and nationally so these social connections can help you

build on realtor.com® to manage your recommendations. Connect with consumers in your community by answering questions from potential buyers in your market area. Make sure your prospective customers know that you are a REALTOR®! Claim your profile and authenticate your REALTOR® status by including your NRDS number. Your profile will shout out to the world that you have subscribed to a code of ethics and are accountable to a higher standard. n Proclaim your REALTOR® status on your profile - the ® will show on your listings on realtor.com® as well! n An easy way to ask for recommendations and get them posted on realtor.com® and important social media sites. n Demonstrate your expertise; show your activity. n Your profile is the basic building block for other free tools like the realtor.com® Mobile Collaborative Search app. n Generate referrals, recommendations and repeat business.

Links for videos to watch (above): www.youtube.com/embed/PEDAT3ASKN4 www.youtube.com/embed/d9sRsTdOzeY How to get your profile: Call 1.877.569.1506 or go to www.marketing.realtor.com/realtorprofile.php Don’t wait, manage your own profile and claim it on realtor.com® today!

BAKERSFIELD REALTOR® MAGAZINE

design for living

HOME UPGRADE INDULGENCES

Home Upgrades with the Lowest ROI

Upgrades aren’t just about a return, but a comfortable living style

BY: LISA KAPLAN GORDON |HOUS ELOGIC

ile these six upgrades under wish fulfillment – not value investment. Life is a balancing act, and upgrading your home is no different. Some upgrades, like a kitchen remodel or an additional bathroom, typically add value to your home. Others, like putting in a pool, provide little dollar return on your investment. Of course, homeowning isn’t just about building wealth; it’s also about living well and making memories – even if that means outclassing your neighborhood or turning off future buyers. So, if any of these six upgrades is something you can’t be dissuaded from, then enjoy! We won’t judge. But, go in with your eyes wide open. Here’s why:

BAKERSFIELD REALTOR® MAGAZINE

Outdoor Kitchen

The fantasy: You’re the man -- grilling steaks, blending margaritas, and washing highball glasses without ever leaving your pimped-out patio kitchen. The reality: For what it costs (on average $12,000-$15,000), are you really gonna use it? Despite our penchant for eating alfresco, families spend most of their leisure time in front of some screen and almost no leisure time outdoors — no matter how much they spend on amenities, according to UCLA’s Life At Home study. The National Association of Home Builders’ 2013 What Home Buyers Really Want report adds that 35% of midrange buyers don’t want an outdoor kitchen. The bottom line: Instead, buy a tricked-out

gas grill, which will do just fine when you need to char something. If you’re dying for an outdoor upgrade, install exterior lighting (99% of buyers want that).

In-Ground Swimming Pool

The fantasy: Floating aimlessly, sipping umbrella drinks, staying cool in the dog days of summer. The reality: Pools are money pits that you’ll spend $17,000-$45,000-plus to install (concrete), and thousands more to insure, secure, and maintain. Plus, you won’t use them as much as you think; and, when you’re ready to sell, buyers will call your pool a maintenance pain. The bottom line: If your idea of ‘making it’

includes a backyard swimming pool, go for it. But, get real about: n How many days per year you’ll actually swim. n How much your energy bills will climb to heat the water ($760-$1,845 depending on location and temperature). n What you’ll pay to clean and chemically treat the pool ($20-$100/month in-season if you do it yourself; $75-$165/month for a pool service). n The fact that you’ll likely need to invest in a pool fence. In fact, some insurance carriers require it. Less expensive option: an aboveground pool. Lower maintenance option: natural pools. If you do put in a pool, you can save money by installing a solar heater.

In-Ground Spa

The fantasy: Soothing those aching muscles and sipping chardonnay with friends while being surrounded by warm water and bubbles. The reality: In-ground spas are nearly as expensive as pools ($15,000-$20,000) and cost about $1 a day for electricity and chemicals. You’ll have to buy a cover ($50$400) to keep children, pets, and leaves out. And, like in-ground pools, the ROI for inground spas depends solely on how much the next homeowner wants one.

climbing stairs, you can install a chair lift on a rail system ($1,000-$5,000). Best feature: It can be removed.

Backup Power Generator

The fantasy: The power in your area goes kaput, but not for you. You were smart enough to install a backup power generator. While the neighbors eat cold hot dogs using a flashlight beam, you’re poaching salmon in your oven and pumping out Red Hot Chili Peppers’ tunes. The reality: Power outages may seem to go on forever, but they don’t. Fifty dollars’ worth of batteries can power portable lights, radios, and TVs; a car adapter will charge your cell phones and iPods; and some dry ice will keep freezer food cold for at least a couple of days. The bottom line: If you live in an area where power shortages are the rule, not the exception; spend the money for reliable backup power: Your still-frozen steaks, home office fax, and refrigerated medicine will thank you. But if the power rarely goes out, then installing a standby generator is overkill. Nationwide, homeowners recouped 67.5% on their average $11,742 investment in a

backup generator – one of the lowest ROIs on the annual Cost vs. Value Report. If you need occasional emergency power, a gasolinepowered portable generator ($200-$650) will probably suffice.

New Windows

The fantasy: Brand new windows that don’t stick, and slashed energy bills. The reality: A $10,000 vinyl window replacement project will recoup about 70% of your investment at resale, and if they’re Energy Star-qualified, they can save you around $300 in energy bills per year. So, plan to live in your house about another 10 years to recoup the cost of new windows. The bottom line: We get it – new windows are sturdy, pretty, energy savers. But unless old window frames are thoroughly rotten, most windows can be repaired for a fraction of replacement costs. And if you spend about $1,000 to update insulation, caulking, and weather stripping, you’ll save 10%-20% on your energy bill. No judgments! What’s your home upgrade indulgence?

The bottom line: Unless you have a chronic condition which requires hydrotherapy, you probably won’t use your spa as much as you imagine. A portable hot tub will give you the same benefits for as little as $1,000-$2,500, and you can take it with you when you move.

Elevator

The fantasy: No more climbing stairs for you or your parents when they move in. The reality: Elevators top the list of features buyers don’t want in the NAHB What Buyers Really Want report. Elevators cost upwards of $25,000 to install, requiring sawing through floors, laying concrete, and crafting highprecision framing. And, at sales time, elevators can turn off some families, especially those with little kids who love to push buttons. The bottom line: If you truly need help BAKERSFIELD REALTOR® MAGAZINE

Pick a Palette

Improve your Home’s Value with a NEW COAT OF PAINT on the Wall

BY JAN SOULTS WALKER | HOUSELOGIC

ust about every seller’s willing to throw a new coat of paint on the walls to attract buyers. But it’s got to be the right paint color to capture buyers’ attention. Paint has remodeling power when you use it to emphasize a room’s best features or play down the flaws. Every home suffers a few negatives, but not every solution requires pricey structural changes. Paint is an often-overlooked, low-cost remodeler’s remedy for common complaints with interiors, offering the chameleon-like ability to lighten, warm, enlarge, erase, or attract attention. “Paint is a powerful tool that can enhance the architectural character and intent of space,” says Minneapolis architect Petra Schwartze of TEA2 Architects. “As you choose your paint, think about what the experience in the room should be.” MORE SCHWARTZE ADVICE: Always sample paint colors on a few walls. Don’t be shy about painting a few large swaths on walls and trim to consider the effect of natural and artificial lighting. Add samples to opposite sides of a room to judge the paint color from different angles. Check the space with the samples in place and watch how the paint color changes at different times of the day. Evaluate your reaction to the proposed colors: Does the space feel cozy or is the openness enhanced? How to enlarge space with color Painting walls white, cream, pastels, or cool colors (tinged with blue or green) creates the illusion of more space by reflecting light. Paint trim similar to walls (or use white on trim) to ensure a seamless appearance that visually expands space. White or light colors lift

BAKERSFIELD REALTOR® MAGAZINE

a ceiling; darker shades can have a similar effect if you select a high-gloss paint sheen, which reflects light and enhances space. Employ a monochromatic scheme to amplify the dimensions of a room. Select furnishings in one color and paint walls and trim to match. Lack of contrast makes a room seem more spacious. Make walls appear taller by extending wall color onto the ceiling. Create a 6- to 12-inchwide border of wall color on the entire ceiling perimeter, or wherever walls meet the ceiling. Vertical and horizontal stripes of alternating color can make a room grand. While vertical stripes enhance room height by drawing the eye upward, horizontal stripes lure your gaze around the perimeter, making walls seem further away. Use similar light colors for low-contrast stripes, and your room will look even larger. CREATING INTIMACY When a space feels cavernous, draw walls inward and make it cozy with warm colors (red-tinged) because darker hues absorb light. Similarly, a dark or warm color overhead (in a flat finish) helps make rooms with high or vaulted ceilings less voluminous. GIVE PEACE A CHANCE The right paint choice can lend tranquility to a bathroom, master suite, or other quiet, personal space. A palette of soft, understated color or muted tones help you instill a calming atmosphere. Some good choices include pale lavenders, light grays or greens, and wispy blues. DEFINE YOUR ASSETS Call out notable features in a room with paint. Dress crown mouldings and other trims in white to make them pop against walls with color. Make a fireplace or other feature a focal point by painting it a color that contrasts with walls. “Using a higher sheen of paint on woodwork, such as baseboards and door or window casings,” says Schwartze, “creates a crisp edge and clear transition from the wall to the trim.” HIDE FLAWS Not everything should stand out in a space. Using a low-contrast palette is a good way to hide unappealing elements or flaws. Conduit, radiators, and other components painted the same color as the wall will seem to disappear. Selecting low-sheen or flat paint colors also helps hide flaws. Unless walls are smooth, avoid using high-gloss paint because it reflects light and calls attention to an uneven surface.

Ombudsman Tackles Mediation

Mediation clause often resolves matters beforehand avoiding arbitration or court

n often overlooked provision in the C.A.R. Purchase Agreement (RPACA) is the mediation clause. This clause is a commitment to resolve matters before they escalate to arbitration or court action. If a party refuses to mediate, they can be denied attorney’s fees that they might otherwise be entitled to in subsequent litigation or arbitration. Found in paragraph 26, the clause reads as follows: Buyer and seller agree to mediate any dispute or claim arising between them out of this Agreement, Joe Newton or any resulting transaction before resorting to arbitration or court action. Buyer and seller also agree to mediate any disputes or claims with Broker(s), who, in writing, agree to such mediation prior to, or within a reasonable time after, the dispute or claim is presented to the Broker. Mediation is now used in most areas of legal conflict, with excellent results. This is because parties are directly engaged in the negotiation of the settlement, with the assistance of a third party neutral mediator who assists the parties in exploring various

alternatives which they might not have considered on their own. Mediation can be conducted at any time during the execution of the agreement. LESS TIME AND MONEY IS SPENT Going to trial takes a long time. Add the cost and expense of motions and appeals and the disruption of one’s daily activities, attempting mediation is a sound way to resolve conflict. Further, a Judge may order the parties back to mediation prior to a court hearing. Mediation can be scheduled promptly at the parties’ convenience and may also be conducted over the phone with an agreement satisfied via e-mail. This option is available for out of town parties who are not able to meet face-to-face. PARTIES DETERMINE THE OUTCOME During mediation, no one imposes their decision on the situation. The mediator helps participants explore alternatives and provides an environment for negotiation but never tells the parties what the outcome will be. Solutions are often found to satisfy business interests and not just to the strict legal rights and obligations of the parties. RELATIONSHIPS CAN BE PRESERVED Great value is placed on preserving business

and personal relationships. Our Association members work for the general public to instill confidence and trust. Relationships must be attended to especially where viewpoints diverge. The mediation process helps focus on goals and interests while bringing parties together in a manner that minimizes personal conflict. Parties enhance the likelihood of continuing their relationship, be it business or personal. SUCCESSES ARE GOOD Because mediation is confidential between parties, the level of success can be good. The American Arbitration Association estimates that 85% of all mediations result in a settlement. There is also a high rate of compliance in that parties have voluntarily agreed to the settlement. John F. Kennedy was quoted as saying: “Our task now is not to fix the blame for the past, but to fix the course for the future.” The advantages for mediation are numerous and should be considered first in resolving real estate conflicts. Inform agents and other professionals of this opportunity. The local Association of REALTORS® stands firmly behind this opportunity to serve its members by providing mediation services.

2 0 1 4 O M B U D S M A N R E P O R T ( M AY - J U N E ) 146 calls were received by our Ombudsman n 1 grievance/ethics n

package mailed out to complaining party n 65 calls were

grievance/ethics complaints against agents that were resolved

64 calls requesting information on real estate procedures n

3 calls requesting information on deposits n 6 anonymous calls n

1 Tehachapi call 6 cases referred to Association mediation n n

What’s Right with Housing?

Overall housing is improving and the outlook remains positive BY BILL MCBRIDE | CALCULATED RISK BLOG

There have been quite a few hand-wringing articles lately discussing the problems with housing. Most articles point to some of these suspects: 1) Existing home sales were down 7.5% yearover-year in March. 2) New home sales were down 13% year-overyear in March and down slightly Q1 over Q1. 3) Housing starts were down 5.9% year-overyear in March, and down 2% Q1 compared to Q1 2013. 4) The 4-week average of the Mortgage Bankers Association (MBA) mortgage purchase index is down 19% compared to the same week last year. 5) Mortgage credit is still tight. 6) Mortgage rates are up significantly from last year. 7) The homeownership rate is still falling. 8) Younger people prefer renting. Oh my, the sky is falling! Well, maybe not. The first mistake these writers make is they are asking the wrong question. Of course housing is lagging [in] the recovery because of the residual effects of the housing bust and financial crisis (this lag was predicted on this blog and elsewhere for years - it should not be a surprise). The correct question is: What’s right with housing? And there is plenty.

BAKERSFIELD REALTOR® MAGAZINE

1) Existing home sales were down 7.5% yearover-year in March. Wait, isn’t that bad news? Nope - not if the decline is related to fewer distressed sales - and it is. (fewer foreclosures and short sales). 2) Mortgage delinquencies are down sharply. See: Fannie Mae and Freddie Mac: Mortgage Serious Delinquency rate declined in March and Mortgage Monitor: Mortgage delinquency rate in March lowest since October 2007, “Only One in 10 American Borrowers Underwater” 3) Mortgage credit is tight. Hey, isn’t that bad news? Nope. There is only one way to go ... 4) New home sales are up significantly from the bottom, but are still historically very low. There really is no where to go but up. A growing population will require more new homes. (I’ll post again on household formation in the future). The graph for housing starts looks similar. 5) The percent of borrowers with negative equity is declining sharply. See: CoreLogic: 4 Million Residential Properties Returned to Positive Equity in 2013 and Zillow: Negative Equity declines further in Q4 2013 6) The impact from rising mortgage rates is mostly behind us. Economists at Goldman Sachs have found “the effect of monetary policy shocks on [building] permits persists for 3-4 quarters”. Rates

increased from around 3.5% in May 2013 to 4.4% in July 2013. Since then rates have moved sideways or down a little - and the “3-4 quarters” is almost over. 7) Existing home inventory is increasing, and house price increases are slowing. Sometimes rising inventory is a sign of trouble (I was pointing to this in 2005), but now inventory is so low that it is a positive that inventory is increasing. This will also slow house price increases (I think that will be a positive for housing too - a more normal market). 8) The MBA purchase index is skewed by large lenders. Over the last few years, small lenders (many not included in the MBA survey) have focused on purchase applications (they market through real estate channels and charge lower fees than the large lenders). Other data suggests mortgage applications are mostly flat year-over-year. UPDATE: The MBA told me they have expanded coverage of the index to include many smaller purchase focused lenders. The MBA doesn’t believe their data is “skewed” by the large lenders. 9) Investor buying is declining. Housing is a slow moving market - and the recovery will not be smooth or fast with all the residual problems. But overall housing is clearly improving and the outlook remains positive for the next few years. SOURCE: www.calculatedriskblog.com/2014/05/ whats-right-with-housing.html

Lead or not to Lead

Leadership skills exemplified in Marines can be implemented into a REALTOR’S® everyday life BY SCOTT LALLI, Representative on the Leadership Academy Advisory Board | NAR LAB, Leadership Insights A few weeks ago I was having a conversation with an agent about the time he spent in the United States Marine Corps. I was impressed and intrigued about the level of discipline and expertise it takes to be a Marine. I also could feel the deep sense of loyalty, pride and appreciation he had for his fellow Marines and the Corps in general. It made me think about some of the principles that cause Marines to feel so deeply about being a part of this elite organization, so I did a little research. I found that there are 11 principles that Marine officers are taught to help them become great leaders and soldiers. As I read these principles I thought that these leadership skills not only apply to the Marines, but they can be implemented into our everyday life to be great REALTORS® and great people. Let me share with you a few examples.

BE TECHNICALLY AND TACTICALLY PROFICIENT Marine officers need to be highly competent in their Military Occupational Specialty to be great leaders to their units. As REALTORS®, we need to be doing the same in our Professional Occupational Specialty. Being out in front of political issues that affect property rights and our profession, understanding how to utilize current technology to best serve our clients and understanding how our associations can best serve our membership is part of being a REALTOR® leader.

KNOW YOURSELF AND SEEK IMPROVEMENT Marines don’t just go through basic training and call it a day. They continue to train, learn and improve themselves. NAR provides us with many resources to improve ourselves, one of which is the NAR Leadership Academy. One of Stephen R. Covey’s 7 habits of highly effective people includes a habit he refers to as “sharpening the saw”. Simply stated, it means that we need to take the time to develop and hone skills that help us be at the top of our personal and professional game.

My experience with the NAR Leadership Academy was a great way for me to get to know and improve on who I am.

SET THE EXAMPLE Marine officers not only know what to do, but they do it. Perhaps more than any words we speak, taking action and practicing what we preach will be what people remember about us. Many REALTORS® are quick to speak about “what needs to be done”, but few stand up and answer the bell. What kind of REALTOR®are you? A talker or a doer? Many of the principles espoused by the Marines, I see at work within our REALTOR® Associations. Local, State and National Associations are full of people who want to be technically and tactically proficient, seek improvement and set the example. When you participate with great people you establish strong bonds rooted in a common cause. Much like my friend who feels so strongly about his Marine family, I feel the same way about the REALTOR® family. If you think you have what it takes to lead out in our REALTOR® associations, be sure to apply for the NAR Leadership Academy. We are looking for a few good men and women! BAKERSFIELD REALTOR® MAGAZINE

REALTOR APPS, Continued from page 16 junaio is a mobile augmented reality browser. It’s a fast and easy way to discover your surroundings. Find local events, offers and listings, and scan QR codes and barcodes to get instant access to additional information. Layar - Augmented Reality (iOS) (FREE) Print comes to life with Layar! Scan magazines, newspapers, posters, products and other items that have been enhanced with Layar. Then…watch as extra digital content appears, allowing for interaction with print in a whole new way! See magazines come alive with videos right on the page! Purchase items directly off the page with mobile shopping links, connect with links to web content, and share items on social media. LoopNet Commercial Real Estate Search (iOS) (FREE) Find the perfect investment property or lease space directly from an iPhone or iPad. With just a tap, see a map. Then easily adjust filters, view photos of nearby sale and lease listings, and contact the listing broker. Receive updates on properties saved and send alerts when listings come up which match the search criteria. MLS Source - Northern California Real Estate & Property Search (iOS) (FREE) MLS Source iPhone/iPad app puts MLS in the palm of every member’s hand. This app was designed to be used by real estate professionals as well as homebuyers and sellers in Northern California. Serving the counties of Monterey, San Benito, San Mateo, Santa Clara, and Santa Cruz, as well as San Joaquin and Stanislaus. MLS Source provides the most accurate, timely and comprehensive real estate information in Northern California. My C.A.R. (iOS) (Requires Membership) My C.A.R. is intended for use by the members of the CALIFORNIA ASSOCIATION OF REALTORS® and requires an access code. It features market data from over 40 counties, educational information, quick access to Market Matters, weekly mortgage rates, real estate news and much more. NAR Action Center (iOS) (Free) The REALTOR® Action Center is a source for REALTOR® political news and engagement. This app, designed specifically with state and local association staff and political leadership in mind, features access to

BAKERSFIELD REALTOR® MAGAZINE

top political stories from the REALTOR® Action Center and the Washington Report, current calls for action, and online dynamic reports to help track your state and local REALTOR® Party engagement and Call for Action participation. NAR Express (iOS) (Free) Designed with REALTORS® in mind, this app features easy access to hot topics, popular headlines, calls for action, special offers for NAR members, sales and marketing resources, and more. Open Home Pro (iOS) ($14.99) With Open Home Pro, you can run your open house on your iPad in addition to the following: Manage all walk-ins at weekly open houses or broker opens; automatically follow up with leads using new contact methods that get opened and are read more than 2x the industry average; create beautiful listing pages for all of your properties; buyers can leave feedback on or contact you with one click; export any collected data to Excel or a CRM (Customer Related Management) tool like Top Producer, or directly pass the leads to iCloud; and, create your own custom questions. Open House Manager (iOS) ($4.99) Open House Manager is designed to quickly capture info from potential buyers and distribute it to your iDevices and the Cloud! No more sign-in sheets! Visitors sign in on your iPad. Sync buyers’ contact information to your iPad, iPhone and Mac with iCloud. Generate follow-up emails to groups of buyers; send homeowner reports to your seller; create your own list of buyers and email them; also, create your own survey questions. Get all the information you need! realtor.com® real estate - homes for sale and rent (iOS) (FREE)

The realtor.com® app now has the ability to find homes based on school and district assignment boundaries! For real estate agents: connect and search with your clients! Stratus MLS Mobile (iOS) (FREE) With this app, you can perform searches for any listing class or status using easy, pre-defined searches, perform searches of public records data (where available), or find listings near a current location using GPS (where available). You can access large, color photo galleries with detailed listing views, search by geographic area or by fields applicable to a property type, or find open houses near your location. You can access your contacts and send listings via email. TouchCMA (iOS) (Free) TouchCMA is a fully interactive presentation and market analysis tool for real estate professionals. Create beautiful and functional buyer, seller and marketing presentations to foster better conversations and help you win more business. TourNarrator (iOS) ($1.99) Did the stove need to be replaced at Elm Road? Was the closet perfect at the Orange Trail house? Could the office on Valencia Drive convert to a nursery? These are the notes that often get scribbled on MLS printouts, then easily lost or later forgotten when it’s time to make a decision on which home to write an offer. TourNarrator compiles all your notes and photos into one beautiful sales presentation. The photos and feedback will be combined into an imagerich PDF with a dedicated URL you can link to from any website. You can also use the PDF to print flyers, publish to Facebook, post to Twitter or other social networks, and share with friends. And of course, each PDF tour features your contact information -marketing you and your business! zipForm® Mobile Web Edition (iOS) (12.95/year) Immediately connect to important information contained in your zipForm® 6 Professional (online) account. The TouchSign feature allows users to sign transactions on the touchscreen tablet with their finger or capacitive stylus. Managing transactions “on the go” has never been faster or easier! You can find any one of these apps at www.car.org/tools/technology/apps

Join us on Friday, July 18, 8am

GUEST SPEAKERS

Tejon Ranch Outlets Outlets open August 7, 2014

Joseph E. Drew Senior Vice President, Real Estate

Barry Zoeller

Vice President, Corporate Communications and Marketing with Tejon Ranch

The Outlets at Tejon Ranch, a proposed shopping center south of Bakersfield, is seen in a rendering provided by the Tejon Ranch Co.

Friday, July 18, 8am BY HOWDY MILLER, TICOR TITLE

Bakersfield Association of REALTORS® Commercial Investment Committee is very happy and proud to announce, July18, 2014 presenters. ATTENTION K-Mart Shoppers! Which includes Sears! You’re done! Finished! Kaput! So long Valley Plaza! East Hills Mall, you’re already gone! Northwest Promenade start packing up! In the “old” days retail was driven by “rooftops”, shopping centers were situated close to large tracts of homes, people from those homes underwrote and supported those stores and said stores flourished. Well, it’s a new age, retail is still driven by tops all right, car tops. How many cars pass thru the intersection of I-5 and highway 99 at Tejon Ranch? Many! Mucho! A lot! And now they will be stopping

not to fill up with gas, have a cheeseburger at In and Out, get their semi washed, let their dogs relieve themselves and themselves, but to shop! That’s correct, SHOP! The Tejon Outlet Center will be opening in August of 2014, that’s tomorrow! And of the many shops opening at the center, will be the Nordstrom Rack! That alone is enough to fill the rather substantial parking lot! Join us Friday, July 18th at the early morning hour of 8am, in the Bahamas or on Bahamas Drive Association office. Be treated to some type of bread product, coffee, etc. Our Speakers, two of Tejon’s finest, Mr. Joe Drew. Big mucky muck at Tejon Ranch, past Kern County C.A.O., past helicopter pilot (Vietnam) and more importantly all around good guy! And, good guy #2, Mr. Barry Zoller.

Director of public retaliations (just checking) for Tejon Ranch, past local T.V. personality and who can name ALL the shops planning to join the Tejon Outlet Center! Please R.S.V.P. to Claudia at 635-2311

Sponsored by: Ashley Weaver

Coming August 15, 8am Speaker: Jay Peet

Assistant Vice President, IPX 1031

Topic: 1031 Exchange Service Sponsored by: Brandi Agnetti, ServiceMaster BAKERSFIELD REALTOR® MAGAZINE

Our Local

Housing

Market OVERVIEW OF PROPERTIES Area

# Sold

Dollar Value

Average Sold Price*

DOM*

% of List Price*

2014

2013

2014

2013

2014

2013

2014 2013 2014

2013

116

$12,016,685

$15,249,768

$128,244

$137,728

98.42

98.69

$5,757,582

$5,973,555

$87,261

$86,402

97.03

95.15

111

101

$16,159,895

$13,118,500

$150,041

$136,154

98.64

99.02

$1,830,600

$3,536,500

$183,060

$294,708

99.17

96.19

123

119

$16,356,723

$13,026,607

$133,457

$109,467

98.05

98.54

254

277

$41,159,326

$37,253,174

$170,566

$136,673

97.42

99.14

105

$16,558,892

$17,508,081

$195,370

$173,424

99.80

99.77

$6,897,312

$15,497,948

$272,492

$285,388

98.35

97.03

$7,541,791

$5,580,836

$115,297

$95,359

99.14

101.96

$7,331,206

$9,203,265

$138,531

$132,914

97.85

100.77

$1,265,000

$852,625

$166,429

$170,525

97.61

92.29

249

344

$34,612,124

$41,121,620

$144,697

$124,856

98.86

100.55

646

630

$122,448,170

$105,951,457

$200,920

$176,023

98.73

100.19

338

378

$103,801,267

$107,126,683

$308,908

$284,404

98.28

99.50

$1,874,993

$634,050

$312,499

$211,350

118

100.16

96.35

104

$24,666,990

$23,164,189

$251,704

$223,089

98.25

100.36

465

477

$136,085,577

$120,905,220

$292,657

$253,799

98.92

100.45

160

177

$52,286,599

$58,435,803

$332,192

$330,146

98.84

99.93

$1,793,221

$1,921,000

$327,044

$274,429

97.98

100.67

$10,310,790

$7,759,400

$219,161

$187,424

97.84

96.58

$1,872,000

$1,206,000

$229,500

$171,000

235

224

94.23

92.61

$809,105

$1,544,449

$85,013

$92,341

102

93.23

92.29

$2,909,800

$1,925,234

$169,706

$88,487

96.01

94.81

$3,525,860

$4,049,364

$110,183

$103,830

99.19

102.12

$1,734,500

$885,000

$346,900

$295,000

97.18

100.81

$153,500

$1,267,396

$76,750

$126,740

89.09

96.73

$1,311,507

$906,500

$228,719

$145,750

98.40

96.44

128

109

$20,914,515

$15,193,550

$165,607

$139,390

98.18

98.65

$6,802,850

$6,668,789

$97,583

$90,785

96.48

97.98

117

$12,386,050

$17,244,220

$139,169

$146,028

97.17

97.05

$15,544,722

$18,077,170

$227,923

$239,139

95.65

97.34

* Figures from single family homes only. Statistics were run on July 1, 2014

BAKERSFIELD REALTOR速 MAGAZINE

2014 Compared to 2013 by MLS Area Active, Pending and Sold - All Areas

MARCH 2014 March

2014

2013

% Year over Year Change

April

2014

All Areas Active

1,307

778

March Contingent

2014 395

2013 622

68.0% % Year over Year -36.5% Change

Pending Active Sold Contingent Total Volume Closed Pending Median Sales Price * Sold Average DOM * Total Volume Closed

1,017 1,307 564 395 $114,978,271 1,017 $190,000 564 46 $114,978,271

1,094 778 625 622 $112,205,422 1,094 $166,000 625 45 $112,205,422

-7.0% 68.0% -9.8% -36.5% 2.5% -7.0% 14.5% -9.8% 2.2% 2.5%

Median Sales Price *

$190,000

$166,000

2014

2013

% Year over Year Change

483

526

March Total Volume Closed

2014 $102,387,831

2013 $97,551,061

-8.2% % Year over Year 5.0% Change

Median Sales Price * Sold Average DOM * Total Volume Closed

$200,000 483 44 $102,387,831

$175,000 526 45 $97,551,061

14.3% -8.2% -2.2% 5.0%

Median Sales Price *

$200,000

$175,000

14.3%

April Total Closed 200Volume 0 Median Sales Price ACTIVE* Sold 0 DOM * Average Total Volume Closed ACTIVE Median Sales Price *

-2.2%

Average DOM *

2014

2013

% Year over Year Change

1,400

ContingentApril

1,232 2014 421

761 2013 629

61.9% % Year over Year Change -33.1%

1,400 1,200

-7.0% 68.0% -9.8% -36.5%

Pending Active Sold Contingent

1,116 1,232 625 421

1,109 761 629 629

2.5% -7.0% 14.5% -9.8%

Total Volume Closed Pending Median Sales Price * Sold

$122,556,147 1,116 $185,000 625

$118,285,137 1,109 $172,000 629

0.6% 61.9% -0.6% -33.1%

2.2% 2.5%

Average DOMClosed * Total Volume

51 $122,556,147

48 $118,285,137

14.5%

Median Sales Price *

$185,000

$172,000

7.6%

2.2%

Average DOM *

6.3%

2014

2013

% Year over Year Change

April Total Volume Closed

532 2014 $109,460,742

534 2013 $104,059,691

-0.4% % Year over Year 5.2% Change

14.3% -8.2% -2.2% 5.0%

Median Sales Price * Sold Average DOMClosed * Total Volume

$198,000 532 46 $109,460,742

$180,000 534 45 $104,059,691

10.0% -0.4% 2.2% 5.2%

14.3%

Median Sales Price *

$198,000

$180,000

10.0%

-2.2%

Average DOM *

2.2%

Average DOM *

Active

1,232

761

ContingentApril

2014 421

2013 629

Pending Active 1,400 Sold Contingent 1,400 Total Volume Closed 1,200 Pending Median Sales Price * Sold 1,200 1,000 DOM * Average Total Volume Closed

1,116 1,232 625 421 $122,556,147 1,116 $185,000 625 51 $122,556,147

1,109 761 629 629 $118,285,137 1,109 $172,000 629 48 $118,285,137

14.5%

Median 1,000 800 Sales Price *

$185,000

$172,000

2.2%

Average DOM * 800 600

2014

2013

Bakersfield March Sold

Average DOM *Only * Single Family

% Year over Year Change

68.0% % Year over Year -36.5% Change

APRIL 2014 April All Areas * Single Family Only Active

3.6% 0.6% 7.6% -0.6% 6.3% 3.6%

Bakersfield

% Year over Year Change

-8.2% % Year over Year 5.0% Change

April Sold

MAY 2014 May

2013

600 400

April

400 200 Sold

532

534

2014 $109,460,742

2013 $104,059,691

% Year over Year Change 61.9% % Year over Year -33.1% Change 0.6% 61.9% -0.6% -33.1% 3.6% 0.6% 7.6% 2014 -0.6% 6.3% 2013 3.6% 2014 7.6% 2013 6.3%

% Year over Year Change -0.4% % Year over Year 5.2% Change

$198,000 $180,000 C ONTINGENT P534 ENDING 532 46 45 $109,460,742 $104,059,691 CONTINGENT PENDING $198,000 $180,000 46

10.0% SOLD -0.4% 2.2% 5.2% SOLD 10.0%

2.2%

2014

1,200 1,000

2013 2014

1,000 800

2013

800 600 600 400 400 200 2000 0

ACTIVE

CONTINGENT

PENDING

SOLD

ACTIVE

CONTINGENT

PENDING

SOLD

1,600 1,400

2014

2013

% Year over Year Change

2014

1,200 1,000

June

2014

2013

% Year over Year 2013 Change

1,402

819

71.2%

Active

#DIV/0!

345

603

-42.8%

Contingent

#DIV/0!

1,146

1,193

-3.9%

Pending 600

#DIV/0!

669

651

2.8%

Sold

#DIV/0!

Total Volume Closed

$143,164,423

$124,066,702

15.4%

Total Volume Closed

#DIV/0!

Median Sales Price *

$200,000

$179,000

11.7%

Median Sales Price * 200

#DIV/0!

4.8%

Average DOM *

Active Contingent Pending Sold

Average DOM *

Statistics were run on July 1, 2014

800

400

#DIV/0!

ACTIVE

CONTINGENT

PENDING

SOLD

BAKERSFIELD REALTOR MAGAZINE 速

A FUN DAY

Face painting for the kids

in the park with

FRIENDS AND FAMILY even a little Team Rivalry

THANK YOU YPN SOFTBALL SPONSORS AND TEAMS! SPONSORS: Karpe Mortgage and iMortgage TEAMS: Keller Williams Realty, RE/MAX Golden Empire, Coldwell Banker Preferred, REALTORS速, iMortgage, and Miramar International, Clarity Home Loans, Capitol Real Estate and Watson Realty NET PROCEEDS to the H.E.A.R.T.S. Connection of Kern County

Clarity Ho

Lisa Belt, Jenny Cameron and Suzi Beaty

BAKERSFIELD REALTOR MAGAZINE 速

Theresa Olsonn & Debbie Banducci

It was a day of fun and camaraderie

Derek Sprague, Jenny Cameron & Scott Knoeb

ome Loans Team, the 2014 YPN Softball Champions

Team members from Miramar International

Team members from iMortgage

Team members from Capitol Real Estate

Team members from Karpe Real Estate Center

Aimee Jones & Ashley Weaver

Hit Your Target Market

You can’t miss by advertising with the Bakersfield Association of REALTORS® START MARKETING AND PROMOTING YOUR COMPANY TODAY with the Bakersfield Association of REALTORS®. The Association has over 1,600 REALTOR® and Affiliate members. We offer many ways for you to actively communicate your company’s brand and marketing message directly to our members. Every week we host a variety of activities, classes, and events. Reach your target market in smart, effective and affordable ways. Please consider one of our many opportunities.

SPONSORSHIP OPPORTUNITIES: PRICES RANGE PER ACTIVITY n Newsletter n Educational Classes n Networking Activities n Community Outreach n Special Events FOR ADVERTISING INFORMATION OR AD SIZES, PLEASE CONTACT: Carol Duran at 635-2307. Communications Design and Development.

FHA RULE Continued from page 13

trade groups (CAI, the National Association of REALTORS®, the Mortgage Bankers Association and others), FHA is preparing regulations for publication as early as June which would, if adopted, restrict FHA financing in communities with transfer fees. FHA officials decline to discuss the regulation because it is still being drafted, but trade groups that have met with the agency say it will not track Fannie’s and Freddie’s clear guidelines, which allow communitybenefit fees. The groups fear that most existing HOA transfer levies will become obstacles when buyers or sellers seek to use FHA loans. Ditto when unit owners who are seniors apply for an FHA-insured reverse mortgage, the dominant financing tool of its type in the field. In an April 23rd letter to FHA Commissioner Carol Galante, six trade groups warned that any new regulation which

BAKERSFIELD REALTOR® MAGAZINE

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discriminates against HOA fees “will greatly disadvantage the millions of homeowners living in community associations, making it much harder for them to sell their homes.” The groups asked Galante to instead “mirror” Fannie’s and Freddie’s guidelines “and prohibit only those fees that don’t benefit the homeowner and association where they live.” Dawn Bauman, Senior Vice President for Government and Public Affairs at CAI, told me last week that FHA’s forthcoming regulation would have especially harsh impacts on HOAs in states that were hardest hit during the housing bust and recession: California, Arizona and Florida, among others. Many of these have struggled with financial problems caused by unit-owner defaults and have had to postpone needed capital improvements. Some depend on transfer fees for essential services to the community. If under FHA’s rule, these HOAs

will have to stop collecting transfer fees or take other steps that reduce the flow of funds. “This could compromise the stability of these communities,” Bauman said. At the very least, she said, FHA’s creation of a two-standard system with divergent requirements for mortgage approvals nationwide — Fannie’s and Freddie’s plus its own — would introduce needless confusion to the marketplace and be counterproductive for homeownership. What’s the remedy if FHA pushes ahead with what appears to be its plans and issues regulations which will harm HOAs? To fix the problem, “we’ll have to go to Congress,” Bauman said. Ken Harney writes an award-winning, nationally syndicated column, “The Nation’s Housing,” and is the author of two books on real estate and mortgage finance. SOURCE: www.inman.com/2014/05/06/upcoming-fharule-could-squeeze-home-buyers-and-sellers/

The Nitty-Gritty on Converting Seller Leads BY ERICA CHRISTOFFER | NAR

Leigh Brown, broker-owner of RE/MAX Executive Realty – Leigh Brown & Associates, got down to the business of selling houses during her presentation on leads and listings at the Emerging Business Issues & Technology Forum during the REALTOR® Party Conference & Trade Expo in Washington, D.C., last Thursday. She offered three tips for capturing and converting online seller leads that you can start implementing in your business plan immediately.

sellers to opt in for more information in

the next step. Go to Facebook.com/ads and

exchange for their contact info. Brown uses

set up your custom ad parameters. You can

is a BombBomb video, no more than 10

primesellerleads.com as her squeeze page host

target specific ZIP codes — and be sure to

for $59 per month. The page, which asks

choose an ad photo with a house that reflects

visitors if they’re selling their home or condo,

that neighborhood.

changes dynamically based on the location

You can also

of the viewer’s IP address. Brown’s customers

designate education

then receive a Zestimate on the backend.

level and age range.

“I don’t care if you like or don’t like Zillow;

If you want to target

that’s irrelevant,” Brown says. “It does give

move-up sellers/

me the best script in the world: ‘I know that

buyers, set your

the information you received is automated.

ad parameters for

Your home will have a unique value based on

college graduates age

its customized upgrades and location. For a

35-45. Brown’s text is simple: “Find out what

custom market analysis, please contact me.”

your [city name] area home is worth. Free

GET YOUR WEBSITE A “SQUEEZE PAGE” This is a simple page embedded on your site that allows would-be

SET UP A GEO-TARGETED FACEBOOK AD CAMPAIGN You have a Facebook business page, right? Well, it’s time to take

CALL FIRST Once that seller lead comes in, pick up the phone to introduce yourself, Brown says. Then

she’ll send a text. Her third point of contact seconds long, sent via email. In the video, she mentions the lead’s inquiry and offers up her expertise on the neighborhood and property taxes. Brown also sends an auto-response BombBomb to leads that come in after 4:30 p.m. weekdays and on the weekends with a stock video of herself saying she’ll get back to them as soon as she can.

home valuation in under 60 seconds.” From there, she handles the lead as she does those from her squeeze page. “My ROI is quite high on this,” she says. Brown spends $10 per ad per day. BAKERSFIELD REALTOR® MAGAZINE

We are pleased

to announce our

2015 OFFICERS AND DIRECTORS

SHERI ANTHES 2015 President

DAVID GAY 2013 - 2015 Director

BILL REDMOND

MIDGE JIMERSON

2015 President Elect

JACOB MARQUEZ 2013 - 2015 Director

2015 Vice President

DEREK SPRAGUE 2014 - 2016 Director

PAM EPPS 2014 - 2016 Director

ATHENA COLLUP

2015 Secretary-Treasurer

BRIAN TUTTLE 2015 - 2017 Director

KEVIN PALLA 2015 - 2017 Director

THERESA OLSON 2014 President

WAYLAND LOUIE 2015 - 2017 Director

BRUCE BARNHARD 2015 - 2017 Director

REAAC Forum Speakers Share with Members

Valuable information on how to protect yourself from real estate scams

www.fdicoig.gov - Fraud with FDIC Insured Banks n

Scott Tobias | REAAC Chair

n May 21st, the Real Estate Anti-

www.mpaa.org - Counterfeit DVDs/CDs/ Videos – Motion Picture Assn. of America n

Fraud Advisory Coalition (REAAC) held its first Anti-Fraud Forum at the Bakersfield Association of

REALTORS®. The forum was a success! With over 75 attendees, REAAC

Here are some important links on fraud tips, info, news and reporting:

was able to engage members on

real estate fraud issues. Speakers included District Attorney Lisa Green, Lief Sirman of the Federal Bureau of Investigation, Gordon Isen of the Office of the District Attorney, Brenda Smith of the California Bureau of Real Estate, and John Shore of the Community Housing Council. Those in attendance had the opportunity to learn about the ongoing and ever-changing types of real estate scams and how to protect themselves and their clients.

BAKERSFIELD REALTOR® MAGAZINE

www.stopfraud.gov - Federal Fraud Task Force – News, Info, Report Fraud, & more www.preventloanscams.org - Victims can enter info and initiate leads n

www.consumerfinance.gov - Loan Scams Info, Tips, Reporting & more n

www.ftc.gov - Phone & Various Scams Info, Tips and Reporting n www.ftc.gov/idtheft - Identity Theft Info, Prevention, Response & Reporting n

www.ic3.gov - Nat’l White Collar Crime Center & FBI - Internet-Related Scam/Crime and Mass Marketing Fraud n

www.oig.hhs.gov - Medical Fraud, Health & Human Services - OIG n

www.irs.gov - Tax Fraud – IRS

oig.ssa.gov - Social Security-Related Fraud

www.fcc.gov - Federal Communications Commission; TV, Radio, Cable, Satellite, Cell Phone Cloning n

www.usda.gov/oig - USDA-OIG - Food Stamp Fraud and Agriculture-Related Fraud n

www.oag.ca.gov - CA State Dept. of Justice CA Scam & Crime Info and Reporting n

US Secret Service - Counterfeit Money, ATM, Debit/Credit Card Fraud, Counterfeit Money Orders n

US Postal Inspection Services - Fraud or Crime Relating to Post Office/Mail n

US Dept. of Education - OIG - Fraud or Corruption Relating to Colleges n

California State Bar - Fraudulent Attorneys

CA DMV Investigations - California Department of Motor Vehicles Fraud n

2014 SCHOLARSHIP WINNERS Association supports our youth in higher education

Left to right: Theresa Olson, President, Blayne Ontiveros, Alysa Frias, Alexandria Rodriguez, Michelle Packer, Gabe Ablin, Kailee Moore and Linda Jay, CEO. Not shown are Sara Kathleen Hood and Chelsea Sanford. THE BAKERSFIELD ASSOCIATION OF REALTORS® is an advocate of education not only for our members, but for their 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. The following 2014 Award Recipients are:

Hood, is attending Grand Canyon University and is seeking to obtain a bachelor’s degree in Psychology. She also plans to pursue her master’s degree in Social Work. Sara’s dreams are to become a Social Worker and to one day start a mentorship program for children who need extra guidance in realizing their full potential.

Gabe Ablin, son of Robin Ablin, is currently attending the University of Portland. He plans to pursue an Environmental Sciences degree and has his sights on becoming an environmental designer. He is a strong proponent of protecting the environment and hopes to use his knowledge of real estate to better plan and meet increasing housing demands without negatively impacting the environment.

Kailee Moore, daughter of Jody Moore, will be attending University of Nebraska and will pursue a bachelor’s degree in Business Administration. Kailee envisions herself attending a top culinary school. She hopes to buy – not lease – her business location and with the right educational skills, she will be ready to build her bakery empire.

Alysa Frias, granddaughter of Debi Roberson, recently graduated from Liberty High School and will be attending California State University, Fresno. She will major in Animal Science, with an emphasis on PreVeterinary Medicine. Upon completing her schooling, Alysa intends to open up her own animal clinic here in Bakersfield. Sara Kathleen Hood, daughter of Cory

Blayne Ontiveros will be receiving his AA degree in Liberal Arts from Bakersfield College. He has enrolled at Cal State Bakersfield and will be starting the Fall 2014 semester. Blayne is pursuing a career in Criminal Justice and hopes to join the Sheriff’s Office, while working part-time on weekends in Real Estate. Michelle Packer, daughter of Marilyn Packer, will be attending Vanderbilt University in Tennessee. She pursues a

degree in Urban Planning and Development with a minor in Business Economics. Ultimately, Michelle sees herself in a career where she can improve the design quality of constructed environments while protecting and managing the resources of our natural environments. Alexandria Rodriguez, niece to Jacob Marquez, graduated from Garces Memorial High School and will be attending UC Davis. She will be busy taking classes to accomplish a major in Mechanical Engineering. Alexandria hopes to create a future filled with new and efficient ways of oil drilling; all while incorporating environmental and safety factors. Chelsea Sanford, daughter of Terri Mays, is currently attending Baylor University in Texas. She is pursuing a Major in Journalism/Public Relations with a concentration in Business. Her aspiration is to ultimately work in internal, corporate public relations as a VP in communications/ marketing. Chelsea simply enjoys people and is excited to see where a public relations career might lead. BAKERSFIELD REALTOR® MAGAZINE

IN A NUTSHELL C.A.R. 2014 Survey of California Home Buyers Findings

STORIES AT-A-GLANCE FOR REALTORS ®

NAR Survey Shows REALTORS® Continue to Invest in Mobile Technologies JANE DOLLINGER | NAR

More home buyers turning to social media in home-buying process, REALTOR®

Reflecting the proliferating use of social media in today’s society, home buyers are turning to social media in the home-buying process more than ever, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) “2014 Survey of California Home Buyers.” More than three-fourths of home buyers used social media in their home search, which is up from 52% who used it in 2011. Buyers said they primarily used social media to obtain buying tips and suggestions from friends (44%), neighborhood information (44%), and to view their agents’ Facebook pages (42%). Mobile technology and the Internet continued to be important tools in the homebuying process, with 91% saying they used a mobile device to access the Internet during the course of their home purchase. Buyers used their mobile devices to look for comparable home prices (78%), search for homes (45%), and take photos of neighborhoods, homes, and amenities (43%). Conversely, with the increased use of social media, fewer buyers “Googled” their agent (50% in 2014, down from 68% in 2013), turning to agents’ Facebook pages instead.

Equity home sales near 90% of all home sales, while pending home sales decline in May

Higher home values continued to fuel more equity home sales, which have made up more than 80% of all home sales for the past 11 consecutive months. Meanwhile, pending home sales fell in May as investors pulled out of the market due to higher home prices.

BAKERSFIELD REALTOR® MAGAZINE

Over the years, REALTORS® have spent countless time and millions of dollars advancing real estate technologies and keeping up with the latest high-tech tools. The 2013-2014 REALTOR® Technology Survey, conducted by NAR’s Center for REALTOR® Technology, found that REALTORS® continued to invest in new technology for their businesses in 2013 and spent more than they did in previous years. According to the survey, brokers spent a median of $1,410 on technology for their real estate business, up from $1,122 in 2012, while agents spent a median of $848, up slightly from $822 in 2012. Technology that allows work to be done while on the move appears to generate the most interest among REALTORS®, who are highly-mobile professionals. Smartphones and tablets ─ iPads, Androids, Surfaces or Kindles ─ are the tools REALTORS® are most intent on purchasing; 29% of participants said they plan on procuring one of these tools in 2014. “Technology has transformed the way REALTORS® do business, but in real estate, being high tech can never come at the expense of being highly accessible,” said Mark Lesswing, NAR Senior Vice President and Chief Technology Officer. “Advances in

Smartphones and social media have made it easier for REALTORS® to stay in touch with their customers, but maintaining a strong, personal relationship with clients is still at the heart of the business.” According to the survey, the vast majority of REALTORS® (94%) use mobile devices to communicate with clients. In fact, REALTORS® spend a median 44% of their time corresponding with or doing work for their clients via their mobile devices. Use of iPhones continues to increase among REALTORS®; 52% of respondents now use iPhones. Thirty-six percent (36%) of respondents use Androids and 3% use Blackberry devices. “REALTORS® tend to find the most value in technologies that allow them to conduct business quickly, conveniently and on the go,” said Lesswing. “Embracing new technologies and online resources is a vital part of how REALTORS® identify, market and sell homes and guarantees that they are meeting their clients’ needs.” The use of social media to generate leads and stay in contact with clients has also increased since 2012 (91% of all REALTORS® use social media). Seventy percent (70%) of those surveyed said that they use social media to build relationships and network, while 64% said they use the platforms for marketing and generating leads. The most frequently used social platforms were Facebook (77% of respondents said they

CALIFORNIA REALTOR® EXPO 2014 at the Anaheim Convention Center

Three incredible speakers lined up to enrich, engage, and inspire you every day at CALIFORNIA REALTOR® EXPO 2014. OCTOBER 7, Terri Sjodin. How to add a persuasive edge to your presentations. Sjodin is one of America’s most sought-after female speakers and best-selling author’s. n WEDNESDAY, OCTOBER 8, Captain Chesley B. “Sully” Sullenberger. His take on leadership after surviving and saving 155 lives during “Miracle on the Hudson.” n THURSDAY, OCTOBER 9, Leslie Appleton-Young. 2015 Housing Forecast. With FREE sessions all THREE days, why not attend the EXPO? All you have to do is register. Pick from a wide variety of free track sessions or attendee’s choice sessions

n TUESDAY,

It’s the state’s largest real estate trade show, taking place October 7-9 Admission to the EXPO Exhibit Hall is FREE for members of the CALIFORNIA ASSOCIATION OF REALTORS®, but you must register to receive a badge.

use the site regularly), followed by LinkedIn, which is used by 75%. The 2013-2014 REALTOR® Technology Survey was based on data collected in January 2014. The survey was e-mailed to NAR members, including REALTOR® brokers, managers and agents, and generated 1,280 usable responses. The survey is available for free at crt.blogs.realtor.org. In 2001, NAR established the Center for REALTOR® Technology to provide technology leadership, guidance and assistance to REALTOR® associations and members. Through its mission of evaluating, implementing and applying emerging technologies, CRT makes available informed industry insight, research and open-source applications.

“Coming Soon” Properties Can Create Consumer Confusion SARA WISKERCHEN | NAR

The National Association of REALTORS® published information for NAR members regarding advertising properties as “coming soon.” Some “coming soon” advertisements involve unlisted properties which may or will be listed with a broker in the near future, while others relate to properties that are subject to listing agreements where property is available to potential purchasers only through the listing broker and not available, temporarily or indefinitely, for showing or purchase through other MLS participants. In either case, “coming soon” properties are commonly withheld from the MLS. “The first important step in advising a seller-client on whether to advertise a property as ‘coming soon’ is to identify the client’s best interests, as defined by that client,” said National Association of REALTORS® General Counsel Katie Johnson. “Failing to act in the client’s best interest and failing to disclose the pros and cons of a limited marketing plan, such as ‘coming soon’ advertising, can violate state real estate license laws and regulations, MLS policies, and the REALTOR® Code of Ethics.” For most sellers, getting the highest possible price on the best terms is their best interest, and maximizing exposure of their property to potential buyers advances that interest. MLSs compile property information in an orderly manner and distribute that information to MLS participants who have buyer-clients actively seeking to purchase property in the location served by the MLS. Restricting the marketing of a seller’s property to only small networks, private clubs, or even to national websites without also making it available to other area brokers and agents and their buyerclients through the MLS limits that property’s exposure and consequently the seller’s ability to attract competitive offers. “It’s important that sellers understand the implications of various ways of marketing the property so that they can knowingly determine the choice which best serves their interests,”

said Johnson. “If a broker determines that ‘coming soon’ advertising is in the client’s best interest and confirms that the client understands the possible consequences, then it is imperative for the broker to know real estate license laws and regulations of their state to ensure that such advertising is in compliance. A broker who fails to comply with state laws and regulations risks facing disciplinary action from licensing authorities, as well as the possibility of litigation from unsatisfied clients.” Many state license laws impose certain duties on licensees, including the duties of care, loyalty, good faith, and honest-and-fair dealing. An unsatisfied seller could allege that a broker breached one of these duties if the broker did not seek to obtain the highest possible price for his or her client where the client didn’t understand that the marketing of the property might not achieve the highest price. In addition to complying with state license laws, brokers advertising a listed property as “coming soon” must ensure the advertising complies with their local MLS rules. Consumers benefit from MLSs because they help aggregate and evaluate numerous factors that can affect a property’s fair market value. MLS information facilitates appraisal preparation, comparative market analyses, and broker price opinions which help consumers ascertain a property’s fair market value. Sellers often rely upon those valuations when setting listing prices, and buyers rely on them when making offers to purchase. Those valuations are especially useful when they include information about comparable properties, including sales prices, days on market, and property conditions. Withholding that market information from the MLS impedes the consumer’s ability to receive useful estimates of value. Johnson advised brokers to research the license laws and regulations in their states for guidance regarding “coming soon” advertising and to check their local MLS rules to ensure compliance. Finally, adherence to the NAR Code of Ethics is an important consideration for brokers when advising clients on whether or not to advertise properties as “coming soon.” “REALTORS® must remember to promote and protect the interest of the clients, present a true picture in their advertising, marketing, and other representations, and make property available to other brokers for showing to prospective purchasers when it is in the best interest of the seller,” said Johnson. Failing to do so harms the reputation of the broker and Realtors® in general, and may result in disciplinary action from the broker’s local association of REALTORS®.

COMING SOON

C.A.R. To Publish Names of Code of Ethics Violators In an effort to make ethics violations and the disciplinary process more transparent, starting August 1, 2014, C.A.R. will publish the names and other information of members who are found in violation of the Code of Ethics. If a member is found in violation of the Code, and the discipline is anything other than a letter of warning or standalone education, C.A.R. will publish the following information: 1. The name and photo of the member found in violation. If the member’s name is similar to another member’s name, their real estate license number and/or office address may also be included in the publication; 2. A list of the Articles of the Code of Ethics that were violated and possibly the applicable standards of practice; 3. A brief factual synopsis of the matter, with the names of other parties removed; 4. The discipline imposed; 5. The effective date and duration of discipline imposed; and 6. The hearing panel’s rationale for the discipline imposed, if applicable. The name of the real estate firm will not be published. The name of the responsible broker will be published, only if the broker was also named and found in violation. This information will be published on the members-only section of car.org, and local associations will be free to republish the information in their local members-only publications. Local associations will begin requiring respondents named in an ethics complaint to submit a photo at the time of filing a response to the complaint, or allow their picture to be taken before the hearing begins. Most violations are related to advertising violations, however, members surveyed overwhelmingly cite problems with failure to cooperate with other agents (unavailability to show, misrepresent availability, give their buyers priority, failure to present all offers, etc.). Make sure you know the rules, so your name is not on the list! BAKERSFIELD REALTOR® MAGAZINE

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It’s a hole-in-one! 5 3 R D

A N N U A L

GOLF TOURNAMENT SAVE THE DATE:

OCTOBER 24, 2014 The Links, RiverLakes Ranch Golf Course

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Tournament proceeds benefit The Wounded Heroes Fund and Habitat for Humanity

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