Realtor Magazine June July 2021 by Bakersfield Association of REALTORS®

M A G A Z I N E JUNE JULY 2021

Scott Knoeb 2021 President See page 4

INS IDE

Message from New CEO, Derek Sprague

R E A L T O R S ®

Impact of New Legislative Issues Explained ®

A D V O C A T E

Technology and Real Estate

F O R

Fair Housing Committee Launched

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2021 OFFICERS

President Scott Knoeb Frontier Real Estate Services, Inc. President-Elect Anna Albiar Coldwell Banker Preferred, RLT Vice President Michelle Valverde MV & Associates Secretary/Treasurer Wayland Louie RE/MAX Golden Empire Immediate Past President Ronda Newport Watson Realty Chief Executive Officer Derek Sprague

2021 Directors Saul Bernal Miramar International

Michele Cooper Karpe Real Estate Center Scott Hanson The Hanson Group Martha Johnson Watson Realty Roger Magana Golden Valley Real Estate Group Bill Mell Bill Mell & Associates Glenn Porter RE/MAX Golden Empire Brian Tuttle Coldwell Banker Preferred, RLT

ON THE COVER

Introducing Bakersfield Association of REALTORS® President, Scott Knoeb

CONTENTS

Bakersfield REALTOR® Magazine

LESSONS LEARNED IN 2020 Families are migrating into our area while reevaluating living conditions under COVID-19.

2021 LEADERSHIP TEAM Times have been different working under a pandemic, but our leadership team continues to step up to the plate, gathering in zoom meetings.

LEGISLATIVE ISSUES How do Local State and Federal laws affect your Real Estate business, but most importantly homeownership?

INTRODUCING NEW OMBUDSMAN David Knoeb and Kevin Palla take on the role of Ombudsmen. They even have a hotline!

FAIR HOUSING AT THE ASSOCIATION As the National and California Association of REALTORS® takes a closer look at Fair Housing, we are introducing our own committee to address issues on a local level.

SUDDEN INTEREST BY OUTSIDE INVESTORS Tons of money has been thrown into the residential real estate brokerage space; why?

LOW INVENTORY, MULTIPLE OFFERS Knowing the five negotiating points of a contract is key.

LACK OF HOUSING INVENTORY ISSUE Economists say the housing market will continue to boom, but where will we find the inventory?

Executive Editor - Derek Sprague, CEO Managing Editor - Carol Duran Contributing Articles Editor - Tiffany Waldowski Statistics - Jamey Lyster Graphic Designer - Carol Duran Bakersfield Association of REALTORS® 2300 Bahamas Drive, Bakersfield, CA 93309 P. 661-635-2300 F. 661-635-2317 www.bakersfieldrealtor.com facebook.com/bakersfieldrealtors twitter.com/bakorealtors

BAKERSFIELD REALTOR® MAGAZINE

PRESIDENT’S MESSAGE

If it were not for leaders’ gallant efforts throughout our nation, we would not have been deemed essential. For this reason, my theme this year is

Leaders Light the Way.”

BAKERSFIELD REALTOR® MAGAZINE

ast year was a challenging year for REALTORS®. We had to redefine what a showing is, learn new contracts, conduct office meetings

through a camera, and know everyone’s new favorite word, PEAD! Fortunately, we had the vision and leadership of Ronda Newport, our 2020 President. Past President Newport took COVID-19 head-on, which resulted in a more robust and financially stable Association. She was instrumental in our C.E.O. leadership change to Kim Huckaby and now Derek Sprague, and facilitated the Association’s change to our new Ombudsmen, David Knoeb and Kevin Palla. Past President Newport stepped in and served an extra three and half months in 2020 due to a medical issue I incurred. Many REALTORS® will never know how much time Past President Newport contributed to our Association and her passion, notwithstanding. Our Association owes her and the entire Executive Team an enormous debt of gratitude! The executive team consisted of Athena Collup, Ronda Newport, Anne Albiar, Michelle Valverde, and Wayland Louie. This last year, we learned the true value of a leader. If it were not for many leaders’

Be as kind as to include, as brave as to inquire, and confident to know that you will, in time, be the one who will inspire” – Samantha Lee Cross

Committees at the Association are preparing for in-person events. Co-Chairs Nick Megazzi and Bobby Chalhoub of the Golf committee are committed to having our Golf Tournament at the end of this year. If you have not attended the REALTORS® Annual Golf Tournament, this would be the year to participate. Gary Frausto, Chair of the Young Professionals Network, is working on a multi-layer plan that includes many variations depending on local COVID-19 restrictions. Carrie Williams, Chair of the Education Advisory Committee, has her team ready to raise the bar on educational

in serving at the Bakersfield Association of REALTORS®, now is the time! We are getting ready for the end of COVID-19, and we want your help in redefining our Association. Whether you serve an hour a year on a Presidential Advisory Task Force, an hour a month on a committee, or an

events. COVID-19 regulations permitting, we will offer in-person events and provide online options for anyone who wants to learn on the go. Furthermore, I want every member and affiliate to know that all leaders at the Bakersfield Association of REALTORS® are

hour a week in leadership. Thank you

working diligently on your behalf. Whether it

Jeanne Radsick, who began her journey

is looking for new technology to make filling

volunteering for a committee and in

out PEAD’s easier, providing educational

2020 became California Association of

events, keeping you up to date with new

REALTORS® President. Your support and

COVID-19 regulations, or ensuring we

service can genuinely make a difference for

all stay essential. Each leader in 2020 has

our Profession.

exemplified what it means to be a leader!

gallant efforts throughout our nation, we would not have been deemed essential. For this reason, my theme this year is “Leaders Light the Way.” If 2020 has taught us anything, change is here, and it is here to stay! As an Association, we have had to change the way we do business altogether. Staff had to work from home, we held meetings and educational events online, and we made appointments to get a lockbox. Now, as we can see the light at the end of the tunnel, we must ask ourselves, what do we want the future of the Bakersfield

Start your journey, join a committee today! Call 635-2300

Association of REALTORS® to be? Our Association is going through many changes; therefore, I am declaring my first Call to Action. If you have ever been interested

BAKERSFIELD REALTOR® MAGAZINE

CEO’S MESSAGE

am excited and honored to be named the Chief Executive Officer of the Bakersfield Association of REALTORS®. Thanks in large part to the vision and execution of outgoing CEO Kim Huckaby and her REALTOR® leadership team, the Association is in an incredibly strong position. I step into this position at a critical time to keep that momentum strong while also embracing challenges to the real estate industry. The outpouring of support has been humbling, but I cannot take on this role alone. I am thankful for an exceptional leadership team led by newly named 2021 President Scott Knoeb. The extended leadership team at the Bakersfield Association of REALTORS® has a deep passion for our community and supporting the real estate industry. The Association has an extraordinary group of leaders who have all demonstrated a commitment to grow together. It is a frustrating time for homebuyers.

BAKERSFIELD REALTOR® MAGAZINE

Sprague Steps into Position of CEO

The Association has an extraordinary group of leaders who have all demonstrated a commitment to grow together. REALTORS® are counseling their clients through multiple offers, rising prices, contingency releases, and an overall busy environment fueled by a lack of housing supply across the state. California must take logical steps to make homeownership more affordable. REALTORS® carried this message at the annual California Association of REALTORS® Legislative Day, telling

legislators that the crisis is only getting worse. If you did not have the opportunity to participate in this annual event, keep an eye out for more ways to get involved. COVID-19 cases are down and REALTOR® leadership has been busy meeting with officials at the California Department of Public Health to address restrictions and guidance that has been in place for the past year. It is critical that REALTORS® continue to follow the updated guidance to support ongoing conversations to further roll back restrictions. As conditions continue to evolve, the Bakersfield Association of REALTORS® has lockboxes, open house signs, and more, all available for curbside pickup. Call (661) 635-2300 to make an appointment. I am excited about the future of the industry. Our REALTOR® and affiliate community has proven to be hardworking and adaptable, and it is a privilege to serve in this position to support our business in moving forward.

While Reevaluating Living Conditions under Covid-19

contribution by

Families Migrating into Our Area

RONDA NEWPORT

WATSON REALTY

t is still difficult to fathom that we have just crossed the one-year mark since the “novel coronavirus” was declared a pandemic. Over the course of the past year, stay-at-home orders have been mandated throughout California. Most of us would have never expected that in April of 2021, many would still be working from home and that our children would still be attending their Zoom classrooms. Yet, with spring in the air and vaccinations on the rise, there is hope! There is chatter about full reopening in our communities and a return to normality on the horizon. Yet, it goes without saying that “normal” will likely never be the same again. One clear example of this is how the concept of “home” has changed dramatically over the past year. “Home” has become so much more than “home”. Homes have become schools, offices, recreational playgrounds, gardens, and gyms. As a result, families have been forced in many ways to reevaluate their current homes, their priorities, and their lifestyles - mainly where they live, both homes and communities. Months and months under executive stay-at-home orders requiring most families

to spend nearly all their time at their homes pushed families to evaluate their homes and needs. If you can work remotely and you do not love where you live, it makes perfect sense that you would take inventory of all your options. Sky-high living expenses in big cities and small apartments are no longer easy to justify without city life incentives. Early in the pandemic, those with the financial ability soon started to compete for homes with more square footage, outdoor spaces, home offices, and larger kitchens. It is no secret that as young people start families, they’re more likely to move to the suburbs or where they can find more space and affordability. COVID-19 hastened this trend from the beginning. First-time homebuyers entered the market at the highest rates in a decade. Second homes have also remained in high demand. Funds set aside for vacations and travel expenses are being allocated elsewhere. Some employers have already set policies allowing some or all employees to work remotely for good, offering more encouragement for people to seek out larger, more affordable homes. We have seen this trend first-hand in our community because of the low affordability Bakersfield still has to

offer. There has been a significant migration into our area, where people have committed to and bought a home in a more affordable location. Offices, hair salons, gyms, schools, restaurants, and other businesses slowly take baby steps towards a full reopening. However, the lessons that we have learned this past year from experiencing the ups and downs, rule changes, uncertainty, reopening’s, and closings have taught us that home is more important than ever because of the the stability and comfort it provides. Homes with an abundant amount of space to work, go to school, exercise, and find leisure remains crucial, as things can change in a blink of an eye.

Yet, with spring in the air and vaccinations on the rise, there is hope! There is chatter about full reopening in our communities and a return to normality on the horizon. Yet, it goes without saying that “normal” will likely never be the same again.” BAKERSFIELD REALTOR® MAGAZINE

2021 Leadership Team Both familiar and new faces serving you as Officers and Directors

ur leadership team of Executive Officers and Directors are set for success in 2021 and beyond: Scott Knoeb, 2021 President; Anna Albiar, President-Elect; Michelle Valverde, Vice President; and Wayland Louie, Secretary/Treasurer. We also have two new Directors who will be serving a 2-year and 3-year term on our Association Board of Directors: Saul Bernal, Roger Magana, Scott Hanson, and Brian Tuttle, who give generously of their time to serve our members.

Here are a few highlights of the new Executive Team and Directors:

Scott Knoeb

2021 President Frontier Real Estate Services, Inc. After attending Legislative Day in Sacramento

several years ago, Scott Knoeb realized what it truly takes to protect our industry, our professional career, and the rights of private property owners. This experience inspired him to take his involvement in the Association of REALTORS® to the next level as this year he will serve as President. He has served on a committee every year for the past 12 years, which has provided him with experience and increased knowledge to fully take on the challenges our Association and industry face every day. Scott has volunteered his time on many local and national committees. He is a past Chair of the California Association of REALTORS® Expo Committee and the Kern County Heritage Commission. He serves as Director

for the Bakersfield Association of REALTORS® Charitable Foundation. He has also served as Chair of Strategic Planning and Finance, Chair of the Bakersfield Ronald McDonald House, and Chair for the Kern County Heritage Commission. Following in the footsteps of his father, David Knoeb, Scott is part-owner and REALTOR® for the family’s business, Frontier Real Estate Services, Inc.

Anna Albiar

2021 President-Elect Coldwell Banker Preferred, RLT Anna is a lifetime resident of Kern County. She obtained her Real Estate license in 2005 and began her Real Estate career in January of 2006. Anna is the proud mom of five great kids and

Our 2021 Leadership Team of Off

SCOTT KNOEB

ANNA ALBIAR

2021 President Frontier Real Estate Services, Inc.

2021 President - Elect Coldwell Banker Preferred, RLT

SCOTT HANSON

MARTHA JOHNSON

2021 - 2023 Director ® The Hanson Group BAKERSFIELD REALTOR MAGAZINE

2019 - 2021 Director Watson Realty

MICHELLE VALVERDE 2021 Vice President MV & Associates

ROGER MAGANA

2021 - 2022 Director Golden Valley Real Estate Group

WAYLAND LOUIE

2021 Secretary / Treasurer RE/MAX Golden Empire

BILL MELL

2019 - 2021 Director Bill Mell & Associates

a proud and loving grandma of one. She loves spending time with family, friends, and her pets. Camping and traveling with friends & family are her favorite past-times when Anna is not busy assisting her clients, family, and friends with their real estate needs. Early on in Anna’s career, she obtained her Graduate of REALTOR® Institute (GRI) designation. In 2007, she joined the Coldwell Banker Preferred, REALTOR® family, where she has been consistently recognized as a top producer and found outstanding leadership, training, encouragement, and support that led her down the path to leadership. Her peers at the Association encouraged her to join a committee and then later encouraged her to attend REALTOR® Legislative Days in Sacramento, where she was hooked. Since joining her first committee and then attending Legislative Days at the State Capitol, Anna has served on numerous committees. Anna is a Leadership Academy graduate from the second class administered at our Association. She has served as a Director

of the Bakersfield Association of REALTORS® Board in 2017-2019, Vice President in 2020, and currently the 2021 President-Elect. Anna is very proud to be a C.A.R. Director as of 2020 and very excited to represent Region 12 and the Bakersfield Association of REALTORS® at the state level. Anna appeals to you, her fellow REALTORS®, “find a committee that interests you either in our community or our Association. You may find that you will also love it!

Michelle Valverde 2021 Vice President MV & Associates

Michelle has been part of the real estate industry since 2007 in various administrative and management roles and is passionate about real estate as well as her community. She is currently Vice President for the Bakersfield Association of REALTORS®. Michelle is devoted and passionate about leading our members and our community.

ficers and Directors

RONDA NEWPORT

mmediate Past President Watson Realty

SAUL BERNAL

2021 - 2022 Director Miramar International

MICHELE COOPER

2019 - 2021 Director Karpe Real Estate Center

She demonstrates her passion for serving the community by providing volunteer support to many local organizations such as Habitat for Humanity and the Alliance Against Family Violence. Michelle has a strong belief in economic growth, something in which the Association has played a significant role for over 114 years. She looks forward to continuing her role in the Association’s leadership team that is committed to keeping our efforts to help grow a stronger community. Having built a solid foundation in the real estate profession since 2007 in various administrative and management roles, Michelle decided to become a REALTOR® in 2014 and obtained a broker’s license in 2018. Her driven desire and determination in promoting a positive community and economic growth in Kern County is exemplified in her commitment and care every step of the way. Here are just a few highlights: n 2019 Chair for the Young Professionals n Network and an advisory board member since 2016 n Leadership Academy Graduate, class of 2018 n Featured speaker at the 2019 WomanUP Conference n 2020 Association Director n 2019-2021 GEMLS Director n Strategic Planning and Finance Committee n One of the first of 300 to receive the Commitment to Excellence certification awarded by the National Association of REALTORS®

Wayland Louie 2021 Secretary / Treasurer RE/MAX Golden Empire Wayland is a Broker-Associate at RE/MAX Golden Empire. He currently serves as the 2021 Secretary/Treasurer of the Bakersfield Association of REALTORS®. Wayland has been a Director of both the Bakersfield Association of REALTORS® and the Golden Empire Multiple Listing Service (GEMLS) since 2010. He is currently a Director of the Bakersfield Association of REALTORS® Charitable Foundation and the Real Estate Professionals

GLENN PORTER

2021 - 2022 Director RE/MAX Golden Empire

BRIAN TUTTLE

2021 - 2023 Director Coldwell Banker Preferred, RLT

DEREK SPRAGUE Executive Officer

Continued on page 32 BAKERSFIELD REALTOR® MAGAZINE

UPDATE

Legislative Day Goes Virtual contribution by

KIM HUCKABY

GOVERNMENT AFFAIRS CONSULTANT

THE BAKersfield Association of REALTORS® delegation joined fellow REALTORS® from across California and the Nation to attend Legislative Day meetings and Hill visits with legislators in Sacramento and Washington D.C. virtually this year to discuss the legislative and regulatory environment and its effect on residential and commercial real estate. It remains imperative that we connect

is important for families, communities, and the state’s economy, so we will continue to work with lawmakers to ensure they are protected.

California Association of REALTORS® Legislative Day (C.A.R.) The Bakersfield Association of REALTORS® delegation wants to thank our legislators, Senator Shannon Grove, Senator Melissa Hurtado, Assemblymember Rudy Salas, and Assemblymember Vince Fong, for taking

with our lawmakers to ensure they

the time to meet with local REALTORS®

understand the issues that face the

as part of the California Association of

real estate industry, markets, and their

REALTORS® first-ever entirely virtual

constituents - many of whom are home

Legislative Day on April 27th, 2021.

and property owners. REALTORS® are on

C.A.R. and its members urged the

the ground every day fighting for home

California Legislature to prioritize the

and property owners in their communities,

creation of housing and homeownership

and we demonstrated we would do the

opportunities at all income levels to

same in our state’s capital with our elected

alleviate the dire housing shortage, and to

officials. Supporting homeowners and

help close the wealth gap. We encouraged

property owners through smart legislation

legislators to enact real solutions to the

BAKERSFIELD REALTOR® MAGAZINE

state’s dramatic housing shortage, like SB 6, allowing commercial property to more easily be converted to residential property. A second solution was to oppose attempts to tax homeownership by preserving the mortgage interest deduction, making housing fees more transparent, and avoiding service and transfer taxes and other fees that make buying and owning a home further out of reach for most here in California.

UPDATE

oppose ACA 7 (Muratsuchi). ACA 7 seeks to amend the California State Constitution to permit local preemption of state law as it relates to land use planning and zoning.

of at least 20 units per acre on lots zoned for office, retail, or commercial use on a neighborhood lot. These proposed housing developments would continue to be subject to all local zoning, parking, and design ordinances, as well as any design review or other public notice, comment, hearing, SB 6 – SUPPORT SB 6 allows property zoned for commercial use to be more easily utilized for housing. It will require that a local government ministerially approve housing developments

or procedure applicable to a housing development. This year on Legislative Day, C.A.R. and its members throughout the state also made it clear to lawmakers that REALTORS®

ACA 7 – OPPOSE Under existing law, if there is a conflict between a state and local law, state laws generally override any county or local ordinance. When there is a conflict between federal and state law, federal law generally preempts state law. ACA 7, if enacted and approved by the voters, would effectively remove the state’s oversight authority over local land-use planning and zoning by making local law, except in limited circumstances, the final word on land-use planning in a local jurisdiction. ACA 7 would permit local cities and counties to opt-out of, among other things, density bonus law, the general plan, RHNA and housing element planning process, the Housing Accountability Act, any statemandated housing approval or streamlining measure, including those streamlining regulations to facilitate the approval and development of accessory dwelling units (ADUs), etc.

Continued on page 12 BAKERSFIELD REALTOR® MAGAZINE

Continued from page 11

National Association of REALTORS® (NAR) Virtual Hill Visits

2126 and S. 902) The Supply and Affordability Act grants

over the last 20 years. California alone has a

governments to approve more housing

shortage of over 3 million units.

units. States and Local governments could apply for grants to either create housing

Thank you to Congressman Kevin

As the bill is discussed and debated, and

McCarthy, and Congressman David

REALTORS® believe it could be made even

Valadao for meeting with us. Our

better by clarifying that the housing plans

delegation asked our Members of Congress

also include a homeownership component.

address the state and the nation’s housing supply crisis:

plans or implement housing plans that will create more affordable housing units.

The Neighborhood Homes Investment Act (H.R. 2143 and S. 98) The Neighborhood Homes Investment

n The Housing Supply and Affordability

Act would create a tax credit for private

Act (H.R. 2126 and S. 902); which will

developers to build/refurbish 500,000

create a housing grant program that state

units. This bill includes a workforce

and local governments can apply to create

homeownership component and will help

more housing units.

provide affordable housing.

n The Neighborhood Homes Investment

has accumulated a 5.5 million unit shortage

will help to incentivize states and local

IMPROVE ACCESS TO HOMEOWNERSHIP AND INCREASE HOUSING INVENTORY

to support legislation and efforts to

historic 50-year housing shortage. The U.S.

REALTORS® strive to make sure that all

PROPOSED TAX INCREASES The American Families Plan includes proposals to offset its cost with tax increases. Specific to California real estate are the proposals to: n Cap stepped-up basis at $1 million ($2.5 million for couples, including an existing real estate exclusion). n Cap 1031 like-kind exchanges at $500,000 n Tax capital gains at 39.6 percent (the proposed top tax bracket in the plan) for households with incomes above $1 million. REALTORS® have concerns with some of the tax increases being proposed to pay for the American Families Plan. REALTORS®

Act (H.R. 2143 and S. 98); which will offer

Americans have the ability to reach the goal

are asking Congress to protect:

tax credits to attract private investment

of homeownership, which is the centerpiece

n Stepped-up basis and oppose capital

for building and rehabilitating owner-

of the American Dream and the pathway to

gains at death,

occupied homes.

economic well-being and intergenerational

n 1031 like-kind exchange, and

wealth-building. Throughout the pandemic,

n Against increases in capital gains on

of Congress to support tax incentives to

the residential real estate market has had a

infrequent events

convert underutilized commercial property

positive economic impact on homeowners,

into residential units.

communities, and the economy. However,

Our delegation also asked our Members

The Supply and Affordability Act (H.R.

California and the nation are facing a

Stepped-Up Basis A stepped-up basis is a provision in the tax code that has helped millions of households build generational wealth by passing on real estate assets at the fair market value for the purpose of calculating capital gains. Applying a capital gains tax at death – effectively eliminating stepped-up basis – will have less of an impact on households who have already passed on real estate for the passing on of wealth benefits future generations by expanding the middle-class and helping families to invest in their children’s college education and their path to homeownership. 1031 Like-Kind Exchanges 1031 like-kind exchanges are a vital tool for mom-and-pop housing providers that supports liquidity and encourages investment. Often small investors will keep firsthomes as a rental when they move up and

BAKERSFIELD REALTOR® MAGAZINE

National Association of REALTORS® headquartered in Washington D.C.

will use the 1031 exchange to buy up into

n Mom-and-pop investors with a handful

a multi-unit property. This helps build

of income properties may look to liquidate

who is an “employee” and who is an

wealth and is often used to build a nest egg

the properties at retirement.

“independent contractor” with the passage

and supplement retirement income. Nearly

n Unexpected life events such as medical

of AB 5 (Gonzalez) in 2019. REALTORS®

40 percent of all like-kind exchanges occur

emergencies, a family member going into

are concerned that the PRO Act (H.R.

in California; any restriction on these will

assisted living, or employment elimination

842) fails to clarify real estate salespeople

have a disproportionate impact on our real

may force households to liquidate assets.

and lacks proper deference to state laws

estate market. Capital Gains Increases on Infrequent Events There is a proposal to tax capital gains at 39.6 percent for households with incomes over $1 million. The problem is that capital gains are

Allowing investors to buy into higherpriced and more productive properties in California helps to create more tax

on the issue, creating uncertainty and the possibility of legal challenges.

revenue—and job opportunities, and

ENSURE FAIR HOUSING FOR ALL

growth.

REALTORS® are asking their Members

SUPPORT INDEPENDENT CONTRACTOR STATUS FOR REAL ESTATE

included in calculating the income;

SALESPEOPLE

households that would typically NOT fall

More than 87-percent of REALTORS®

into this $1 million capital gains tax bracket

are independent contractors. This choice

would be forced into it for that one year.

provides them with greater opportunities,

A household could experience a large

California has addressed the issue of

such as the autonomy to work as an

of Congress to cosponsor the Housing Fairness Act, H.R. 68 and S. 769, that would reauthorize and increase funding for HUD fair housing testing and enforcement programs. The bills would increase HUD’s Fair Housing Initiatives Program by $18 million, with the bulk of funds directed to increased discrimination testing under the

capital gains on a property or investment

entrepreneur and build their own brand.

when they were to:

REALTORS® are asking Congress to protect

Private Enforcement Initiative. NAR is also

n Sell their primary home. It is not

the right of real estate salespeople to choose

asking for an additional $20 million for

uncommon that homeowners, such as

whether to be independent contractors or

HUD’s Office of Fair Housing and Equal

retirees, who purchased their homes decades

employees. For decades, real estate agents

Opportunity to provide new resources to

ago and are now looking to downsize could

have been classified as statutory non-

be directed to proactive, agency initiated

realize a capital gain above $1 million.

employees for federal tax purposes.

investigations. BAKERSFIELD REALTOR® MAGAZINE

BAKERSFIELD REALTOR® MAGAZINE

Recognizing Our

2021 PAC CONTRIBUTORS NAR GOLDEN R

NAR STERLING R

HALL OF FAME $

25,000

Lifetime Investor PRESIDENT CIRCLE

Jeanne Radsick

CONTRIBUTORS

of 148 True Cost of Doing Business $

Robin Ablin Todd Ablin Guillermo Acosta Sanjeev Advani Arianna Aguilar Anna Albiar Coy Alexander Mark Allen Mark Anderson Rhonda Anderson Barbara Apsit-Incardone Christine Archuleta Jose Luis Arellano Janette Ashmore Tony Ayon Shawna Bankston Kristi Barnhard Loris Barsoum Clinton Bear Megan Behill Manpreet Behl Gary Belter Terri Bender Trevor Bender Walter Benitez David Bernal Saul Bernal Susan Blanza Kenneth Brewer Shanti Brinsfield Joel Brock Juanita Brooks Jeff Bussman Gary Carruesco Tanya Carruesco Douglas Carter Bobby Chalhoub Hannah Chay-Som Sharon Ciufo Mark Clemmer Melinda Clemmer Ginger Clemmey Terri Collins Athena Collup Daniel Cook Michele Cooper Ricardo Corona Brian Dandy Timothy Davis Fabiola Dees Kelly Demestihas Vipanee Dillow Adrienne Dominguez Felice Durazo

C.A.R. SILVER BEAR

Chartered

Sheri Anthes David Knoeb

Theresa Olson Derek Sprague

TO MAKE A VOLUNTARY CONTRIBUTION GO TO car.org/advocacy/PACSnRAF/raf Ann Enge Alexandria Ephrom Jane Etcheverry Aaron Fauke Mary Flores Tammy Foley Susan Ford Thomas Ford Michael Freedman Sherry Frith Raquel Fuentes John Garone John Garone David Gay Ali Gazali Jessie Ghuman Perminder Gill Frank Gonzales Antonio Gonzalez Raymond Goyeneche James Graddy Troy Grant Erik Gutierrez Perez Suzanne Harandi Vanessa Hartwig Carol Helm Anna Hernandez Iliana Hernandez-Abbas Alma Herrera Montanez Jeri Hickman Greg Holland Carmen Honesto John Houchin Jessica Hudson Rosaura Ibarra Umit Ister Martha Johnson Victoria Johnson Olga Jones Patricia Jones Louise Juracek Scott Knoeb Barbara Konnoff Kathy Kotsiomitis Linda Lamb Navdeep Laut Kyle Lawson Jaime Leal Phyllis Lopez Wayland Louie Martha Lujan-Ruiz John Mackessy Roger Magana Josephine Magat Libbie Mahan Tammi Marchand Megan Marley-Soto Sandra Mathews

Stephen McKinzie Debra McTaggart William Mell Henry Mendez David Mercado Judy Miller Melba Mohlke Raul Morales Ronda Newport Walt Newport Joe Newton Dave Nielsen Mario Nunez Saavedra Allison Oliver Marilyn Packer Maria Pandura Margaret Patnode Donald Paulino Teresa Perez Esmeralda Perez Pena Coleen Peters Eva Petersen Kymberly Plivelich Glenn Porter JP Porter Annette Pounds Angela Przybylski Rosario Ramirez Rodolfo Ramirez Bill Redmond Isaul Rivas Candice Roach Brandon Gene Roberson Debra Roberson Tim Roberts Robert Roberts-Young Angela Rodriguez Suzanne Rodriguez Brian Romine Gustavo Ruiz Judy Ryder Israel Salgado Solorio Wyatt Salinas Lana Sanchez Maria Sandoval Candy Saporito Jeffrey Saso Kelli Schoell Dan Shanyfelt Blake Sherman William Sill Harmanpreet Singh Harpreet Singh Michael Soper Jesus Soto Darrell Sparks Frank St. Clair Becky Telese

Angie Trigueiro Sherri Trone Lisa Tucker Hood Brian Tuttle Steve Urner Susan Urner Michelle Valverde Paula Vargas Victor Vazquez Ellen Wattenbarger Jonathan Weinmann Chad West Carrie Williams Michelle Wilson Richard Winward William Woodbury Jennifer Woods Justin Yim Rueben Zamudio Carrie Zaninovich

CONTRIBUTORS

Less Than The True Cost of Doing Business Sara Abrams Caneel Aguilar Tammie Albitre Lexus Alexander Julia Alsup Ana Andrade Lucrecia Arucan Nicholas Bankston Gurinderprit Basra Robbyn Belezzuoli Sonia Bravo Jennifer Brehm-Clark Cody Brown Gabriel Caballes Belinda Capilla Marisa Caruso-Cornejo Domingo Castro Norma Chavez Duran Jessica Chester Harry Chrysanthou Michelle Church Cecilia Clark Christine Cofield Gina Colon Tilo Cortez Casie Cortez Ivan De La Torre Greg Desme Ashley Dessy Amanpreet Dhaliwal Jagandeep Dhaliwal Krystal Dillard Travis Dobbs

Anna Duarte Armendariz Lucio Elizondo Gonzalez Jeanette Elston Ruth Escobar Lisa Estes Janice Fisher Maria Flores John Franey Liana Frayne Michelle Frost Eduardo Garcia Galvez Pedro Garcia Villalobos Mary Gavidia Rajvir Gill Marion Gomez Marco Gonzalez Ezequiel Gonzalez Velazquez Isiah Gray Maria Gregory Mohammad Hammad Joseph Hanawalt Christine Handel David Hardt Angela Hernandez Jose Iniguez Bernadette Iturriria Charlene Johnson Danny Johnson Chase Joseph Geraldine Kennedy Cheryl Ketchum Greg Ketchum Allison Kitchen Michael Kitchen Anisha Knox Maureen Koons Nicholas Lightle Priyanka Longacre Asucena Lopez Alexander Lucich Sandie Lynch Jill Madden Monica Madrigal Jacob Marquez Valerie Marquez Priscilla Marron Josue Martinez Dinny Mathew Luz Mayorga Georgia McCaffrey Matthew McCormick Angel Medrano Lizzeth Menchaca Fernando Miguez Lazcano Cameron Miller Alexander Mitchell Kristin Moniz Claudia Montero

Jodi Moore Samuel Mora Sarah Morales Salvador Moreno Stephania Moreno Valerie Moses Dana Munson Shelley Murphy Andrie Nainggolan Cynthia Nichols Lori Ochoa Jose Olmos Monique Padilla Job Palacios Rajesh Patel Miguel Perez Ricky Portillo Issam Qassim Jaime Quintana Wendy Ramos Lindsay Roberts Raul Rodriguez Jason Rodriguez Kelly Roland Lisa Ruesga Mario Salas Angie Sanchez J. Armando Sandoval Maria Sandoval Kelsey Scritchfield Christine Sheridan Harpreet Sidhu Baldeep Sidhu Tejroop Singh Surinderpal Singh Holly Sousa Ronald Sprague Terrye Steiner Gail Stevenson Zee Stowe Brigitte Strizak Christina Taber Bobbi Thompson Tracey Tipton Olivia Torres Angela Trevino Nicole Turner Valerie Ulrey Pablo Vargas Seth Wasylyszyn Lori Whaley Diane White Maria Wright Eduardo Zamora Gustavo Zannelli

BAKERSFIELD REALTOR® MAGAZINE

How do we take advantage of the data we have? BY STEVE MURRAY, Senior Advisor, Real Trends

Nearly 40 years ago, I read an article about the emerging field of information science and services. The author (whose name escapes at the moment) pointed out that while data is valuable, it becomes more valuable when it’s organized in a way to provide useful benchmarking or trends to the user. The most valuable use of data is when it’s in the hands of someone who knows the implications of its use, at which point it becomes knowledge. The writer was positing that in the coming era, the world would become swamped with data – even organized data would be widely available. To truly take advantage of that, it had to be in the hands of a user who understood its importance to whatever task lay in front of them.

How that relates to real estate In so many facets of our industry, these prophecies are truer today than ever before. Agents have always had access to customer relationship managers (CRMs) containing client and customer data. Now, there are

BAKERSFIELD REALTOR® MAGAZINE

a growing number of tools that have taken that data and combined it with other data to create information about which of those clients are more likely to sell or buy in the future. It’s only when that information is in the hands of someone who knows how to make the best use of the data that the highest value is extracted. The same is true for data about agent relocation activities, from one brokerage to another, where large amounts of data has been organized into useful information so as to know with greater certainty which agents may see one brokerage company as the ideal new firm with which to associate. The information that points to which agents are more likely to relocate their practice is now available, but it takes an interested, knowledgeable user to know how to put that information to good use. It is also true for offerings like zavvie, which helps agents deliver real market comparables to owners and sellers to help

them sort their options between iBuyers and alternatives. It does little good to have such a tool when the user doesn’t truly understand the knowledge that its features bring to a seller.

Why consumers still use agents And at its core, this continuum explains why, when housing consumers are inundated with information about the housing market, they still use agents to buy and sell their homes. They can get access to all the data and information they desire, but without someone who understands how to best apply this to the decision making on the purchase or sale of a home, the raw numbers are not that valuable. Combine all that information with an experienced agent, and now the consumer gains access to knowledge, the highest form of value in a data-driven world. Steve Murray is a senior advisor to RealTrends and a partner in Colorado-based RTC Consulting. This article reprinted with the permission of Real Trends Inc. Copyright 2021.

Technology Connects with Agents More agents receive training any time, any day through technology

contribution by

AJ BHUEE

TECHNOLOGY CHAIR, WATSON REALTY

Technology has made it possible for real estate agents to rethink every aspect of how they do their job, from prospecting for buyers and sellers to conducting property previews to transact and connect with clients on the other side of the world. COVID has brought to light the newer, better, and more efficient ways of working on a real estate transaction and connecting with clients. The advancement of technology has equipped real estate agents with tools that allow them to perform their jobs like never before. Agents are leveraging technology from prospecting to automatically keeping in touch with their past clients. Intelligent agents are using digital marketing to capture quality leads with software that uses algorithms to pinpoint who is interested in buying or selling real estate. Agents are utilizing software, such as HomeBot, to automatically send their clients monthly valuations of their home, with options to view a net amount if they were to sell, refinance, or take out equity to purchase an investment property. Agents are not just using technology for real estate transactions; with technology,

AJ Bhuee Watson Realty

agents can attend meetings and learn and connect with other industry professionals from anywhere in the nation. REALTORS® can attend multiple meetings throughout the day by using software like Zoom. Meetings and events requiring agents to travel to different cities and spend money on food and lodging are things of the past. Even though physical events will still come back in the future, they will most likely implement the webinar aspect in almost all future events. This technology allows more agents to receive knowledge and training in the

comfort of their office or home at any time or on any day. It isn’t just agents who are using new technology for real estate matters. Buyers also have access to tools and data that allow them to make the best and most informed decisions for their families. Buyers can walk through a home at their own pace and at any time with the help of virtual tours from Matterport or EyeSpy. With virtual tours, the concern of not knowing the floorplan is a thing of the past. Buyers are using technology to quickly tour properties and shortlist the ones they like to schedule private showings. With all the advancements in technology, it’s sometimes challenging to keep up. As we all know, once we have gotten comfortable using new technology, a better, more efficient way of doing things is inevitably created. It is up to the individual real estate agent to ensure that they are staying current on today’s technologies, while at the same time, looking into how they can use existing technologies in creative ways to be in front of the curve and pave the way for future real estate agents. You can be sure, utilizing technology and working as a real estate agent will continue to evolve as software gets more and more advanced. BAKERSFIELD REALTOR® MAGAZINE

THE A TEAM

We have a special group of individuals who form a group of loyal, hard-working Affiliate Members called the A Team, who serve the Association in a variety of ways.

SARAH TUCKER, VICE CHAIR Home Warranty of America 661.337.0362 sarah.tucker@hwahomewarranty.com

DAN ARDIS, CHAIR San Joaquin Valley Mortgage 661.342.9381 danardis@sjvalleymortgage.com

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

KAREN CLEMANS Mission Bank, 1031 Exchange 661.859.2500 clemansk@missionbank.com

HANNAH COOPER San Joaquin Valley Mortgage 661.303.7101 hcooper@sjvalleymortgage.com

MIKE GEORGE Agape Mortgage 661.324.2427 mikegeorge@agapemtgco.com

SHARI GEORGE Agape Mortgage 661.324.2427 sharigeorge@agapemtgco.com

MARY GUNSOLUS Cali Building & Home Inspection 661.829.5810 calibuildinghomeinspections@gmail.com

CHEREYL NUNN Loan Depot 661.270.8601 cnunn@loandepot.com

JANETTE RAMSEY Janette Ramsey Insurance 661.328.9250 janette@jramseyinsurance.com

PAUL STEELE First American Title 661-302-7117 psteele@firstam.com

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

DEANA WITWER Built Right Home Inspection 661.377.7777 deana@BuiltRightHI.com

Thank you A TEAM for supporting our REALTORS®

Introducing Our New Ombudsmen It’s a REALTORS® Fiduciary Duty and Code of Ethics

t is with a saddened heart that we announce Joe Newton’s retirement as our Ombudsman. After 11 years of representing our members and handling every case with grace and resolve towards an amicable resolution. His calming personality and mediation skills were certainly an asset to our members, and he will surely be missed. We wish Joe the best in all of his future ventures! We want to welcome our new Ombudsmen! We assure you that although Joe will surely be missed as he moves on to his new ventures, David Knoeb of Frontier Real Estate Services, Inc., and Kevin Palla of Pacific Commercial Realty Advisors, will be handling all of our future cases and do a phenomenal job. The Bakersfield Association of REALTORS® has the responsibility of hearing and resolving ethics complaints. This obligation is carried out by local, regional, and state Grievance and Professional Standards Committees. Many difficulties between real estate professionals and the public result from misunderstanding, miscommunication, or lack of adequate communication. When these difficulties arise, it is recommended that individuals first talk with the principal broker in the firm, but if not satisfied, contact the local Association of REALTORS®. Before an individual files an ethics or arbitration complaint, they are advised to first consider the services of an Ombudsman.

ABOUT DAVID KNOEB David Knoeb was born and raised in Stockton, CA. He moved to Bakersfield in 1979 while working for a restaurant company called McGuffey’s, where he met the love of his life, Joanna. April 6, 2021, will be Joanna and David’s Thirty-Seventh wedding anniversary. However, Joanna and David have been together for almost forty years, and she wants to count every day. According to David, Joanna would not marry him right away because she said “he needed to grow up” personally, I think she has done a fine job raising him. They have three children, eight

David Knoeb

Kevin Palla

Frontier Real Estate Services, Inc.

Pacific Commercial Realty Advisors

grandchildren, two great-grandchildren, two baby-doll sheep, one cat, and man’s best friend Hunter, the one-hundred-ten-pound Doberman. Somehow every night, Hunter finds a way to sneak into David and Joanna’s bed; Hunter really likes to cuddle. After passing his exam and placing his license at Karpe Real Estate Center in November of 2000, he felt right at home; he instantly fell in love with the industry and knew this was the career for him. Shortly thereafter, in August 2005, he became a broker. During his seven years stay with Karpe, he was top producer year after year. In 2007; David and his family opened Frontier Real Estate Services, Inc. Family owned and operated if you asked David, “none of this is possible without my family” during the early years, Joanna, Misty, and Scott worked together to start the business, and in a blink of an eye they grew into one of the largest home base offices in Bakersfield. As Frontier continued to grow, Scott’s fiancé Candice and David’s grandson Joshua were added to the company. Over the last 20 years, David has dedicated himself to organized real estate. Serving as President of the Bakersfield Association REALTORS® in 2013, Grievance, ProStandards, and his favorite duty of all;

Orientation Instructor for new REALTORS® teaching the “Code of Ethics”. He is currently servicing as a C.A.R. and N.A.R. Director, Vice-Chair CREPAC for C.A.R. and RPAC Trustee Fund Raising for N.A.R. His professionalism and comment to our local, state, and national association are why we believe he is a perfect fit for the Ombudsman’s duties. He is excited and looking forward to his new role and partnership with Kevin Palla.

ABOUT KEVIN PALLA Born and raised in Bakersfield, Kevin Palla is a perennial Top Performing Commercial Real Estate Broker known and respected throughout the Agriculture & Real Estate Communities. He is a skilled negotiator with experience in various fields who exhibits strength and industry knowledge as a Broker with Cushman & Wakefield | Pacific Commercial Realty Advisors as a Land Specialist and in Farming as an Agricultural Consultant. Since becoming a REALTOR®, Kevin has been actively involved in the Bakersfield Association of REALTORS®, where he most recently served as the Vice-Chair of the Grievance Committee. He previously has chaired the Commercial Investment Forum and the New Member Orientation Committees for 2-year terms. He also

Continued on page 24

BAKERSFIELD REALTOR® MAGAZINE

Fair Housing takes Center Stage Senate Bill 263 requires bias training for real estate licensees

CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

Housing and Equality C.A.R.-Sponsored Legislation Unveiled and Explained Earlier this month, C.A.R. unveiled its Fair Housing and Equity legislative package designed to help address ongoing fair housing and equity issues that persist, especially for communities of color. The package is part of C.A.R.’s statewide Californians Need Housing Now initiative, which urges the Legislature to enact policies that address the issue of affordability and availability plaguing many communities across California with increased housing supply and fair housing reforms. These bills address the historic inequities facing Black, Indigenous, and People of Color (BIPOC) that have made it more difficult for these communities to access and afford housing in California. “As REALTORS® in the Bakersfield Community, we understand how critical it is to ensure that there is fair access to housing, and we deplore any reference in state law that may discriminate or harm anyone who is seeking to purchase a home,” said Scott Knoeb “This is why C.A.R. strongly supports legislation that will help to eliminate implicit bias and any laws that are discriminatory barriers against any person.” Legislation that we are supporting includes requiring implicit bias training for REALTORS®, removing discriminatory language in property records, prohibiting discrimination against people living in affordable housing and repealing

BAKERSFIELD REALTOR® MAGAZINE

Article 34 of the California Constitution.

The four legislative bills included in C.A.R.’s Fair Housing and Equity Legislative Package include: Prohibiting Discrimination Against Residents Living in Affordable Housing. Assembly Bill 491 (Gonzalez)-First Hearing Pending: This bill will ensure that multifamily properties provide the occupants of affordable units the same access to common entrances, common areas, and amenities that are available to the occupants of market-rate units and do not isolate affordable units to a specific floor or area. Uniform Partition of Heirs Property Act (UPHPA) Assembly Bill 633 (Calderon)- This bill adds California to the list of states that utilize the Uniform Partition of Heirs Property Act (UPHPA). Under current law, if several heirs jointly inherit a property and there is no will, trust or other method of conveying the property at the time of the owner’s death, one heir can go to court to force the sale of the entire property, often at below-market rates. Furthermore, heirs who may be in an immediate need of money have been taken advantage of by predatory persons who buy small shares and then force these below-market sales at which they purchase the property. These forced partition sales have had an outsized negative impact on those in financially disadvantaged groups, more of whom tend not to have wills or trusts. This measure seeks to

preserve family wealth by providing a series of simple due process protections to ensure all parties receive their fair share of the inherited proceeds and ensure the best value for the inherited property is obtained. AB 633 passed its first committee hearing, Assembly Judiciary.

Implicit Bias Training for Real Estate Professionals Senate Bill 263 (Rubio) - This bill now requires a licensee’s continuing education requirement to include a two-hour course on implicit bias training for real estate licensees, including actionable steps licensees can take to prevent implicit bias. It also requires the current fair housing training to include participation in interactive training where roleplay scenarios are used to illustrate live-experiences from the perspective of both a consumer and a licensee. AB 263 passed its committee hearing in Sen. Business, Professions, and Economic Development. Repealing Article 34 Senate Constitutional Amendment 2 (Wiener, Allen)- Enacted by voters in 1950, Article 34 of the California Constitution requires that any development comprised of “low-rent” dwellings, financed in whole or in part by federal, state, or local government, be approved by a vote of the people in the jurisdiction where the project is located. Article 34 does not just apply to “public housing” but also affects mixed-income developments that often contain units partially “subsidized” by local government. Since 1992, C.A.R. has had policy supporting affordable workforce housing and has sought to advance policies seeking to increase the state’s housing supply. C.A.R. is a co-sponsor of S.C.A. 2, which seeks to repeal Article 34 in its entirety. This bill is pending referral to a policy committee. We will continue to share legislative updates with you as the legislation is being discussed and voted on in Sacramento. If you would like to get more involved with supporting the Fair Housing and Equity legislative package and/or upcoming bills that impact the housing market or our industry, we invite you to contact realtor@realtorparty.com.

Fair Housing at the Association

Diversity, Equity, and Inclusion Committee to protect and serve community contribution by

MICHELE COOPER

DIVERSITY, EQUITY & INCLUSION CHAIR

The recent years have brought light to the fact that change is needed and long overdue. As REALTORS®, we are committed to protecting and expanding the opportunity for all communities to own, use, and transfer real property sustainably. That is why we have created the 2021 Diversity, Equity, and Inclusion Committee. This committee is headed up by myself and Vice-Chair Camille Redmond. We currently have 12 active members but are looking to add more. Our goal in this committee is to help educate our members through professional development courses and training. We plan to host two events this year that are dedicated to Fair Housing and Diversity. The REALTOR® commitment to diversity, equity and inclusion is perhaps the strongest in real estate, even going a step further than the federal Fair Housing Act, which does not include sexual orientation and gender identity as protected classes against housing discrimination. To be a strong voice for real

Michele Cooper Karpe Real Estate

estate in our communities, diversity in our leadership can help our associations represent all the communities and demographic groups in our market area. Ensuring our Association reflects and includes leaders who serve all parts of our market will make our Association a better advocate for homeownership and

private property rights. It will build our commitment to ethics and make sure our Association meets member needs regardless of the communities we serve. Marketing our real estate services is essential to the success of our business. Social media has become a valuable tool in helping us create a platform to reach more potential clients. People have been highly successful utilizing this tool, while others have found the opposite effect. As business professionals, we should know the right and wrong things to advertise on our social media platforms. We need to ensure that we are committed to diversity, equity, and inclusion. Our 2021 Diversity, Equity, and Inclusion Committee is here to protect and serve our community. We would be honored to have you join our group to help ensure we are serving our community with the best service possible. We want to partner with you in protecting and expanding the opportunity for our community to own, use, and transfer real property sustainably. Join our Diversity, Equity, and Inclusion Committee now! Call Cindy Kiser at 635-2315 to sign up today. BAKERSFIELD REALTOR® MAGAZINE

A Move to Multi-Generational Living The pandemic has seen a shift from living in nursing homes to living with family. Builders are jumping on that trend.

STEVE MURRAY, SENIOR ADVISOR

quarters, where no decreases had been

More builders are adding floor plans to new homes that provide for multigenerational living arrangements. According to the CEOs of Lennar, Toll Brothers and others, they’ve seen an increase of home buyers looking for models where they can accommodate older parents. In addition, Accessory Dwelling Units (ADU) are spreading rapidly. These are adjacent, sometimes permanent, additional living quarters that can be built to provide space for

seen before. While much of this is due

other family members. Underlying this trend is a decrease in the numbers of older persons living in assisted living and nursing home facilities. According to the National Investment Center for Seniors Housing and Care, the occupancy rates have fallen 2.5% in each of the last two

to the pandemic, some believe that living with one’s family will be preferred to living in assisted living or nursing homes. According the National Association of Realtors®, nearly 25% of all houses bought in the last nine months were priced above $500,000, up from only 14% in the prior year. Much of this is driven by the scarcity of low-priced, entry-level homes in almost every market in the country. Once the pandemic eases and those at risk are vaccinated, we don’t see the trend away from nursing homes and assisted living facilities changing in the short term This article reprinted with the permission of Real Trends Inc. Copyright 2021.

B AKERSFIELD ASSO C I AT I O N O F R E ALTO RS ®

ANNUAL

MEMBERSHIP MEETING Wed., June 24, 10am

THE

RENTAL CRISIS W

BY TRACEY C. VELT, Managing Editor, Real Trends

hen the pandemic began and an eviction moratorium was put in place, the cause was admirable. Shutdowns and economic uncertainty required an empathic hand when dealing with unemployed workers who also faced eviction. However, the unintended consequences can be dire, especially for individual rental property owners, which make up about half of all rental units, according to the 2018 Rental Housing Finance Survey. I know in Florida, we’ve had a glut of investors, both from out of state and globally, buying affordable properties as investment properties, many of whom are investing their retirement funds in these properties. In this article, I’m mainly referring to single-family homes. When eviction moratoriums are lifted, I believe we’re going to see evictions happening at record rates. According to the National Multifamily Housing Council (NMHC), only 76.6% of U.S. apartment households had made a full or partial rent payment as of January 6, the lowest level since the beginning of the coronavirus pandemic.

Small businesses around the country are getting hammered, and individual owners of rental properties are no exception. What are the larger implications? This is down from 79.3% as of Aug. 6 and follows the stoppage of the additional $600 monthly insurance payments that was being paid to unemployed individuals, according to the National Association of REALTORS®. Individual rental property owners and corporate-owned rentals will be forced to raise rents to even attempt to recoup their losses from the last year. After all, in some cases, these landlords have given away their product for more than a year, all while paying the brick-and-mortar costs of maintaining the properties and paying taxes. Oh, and did I mention, we have an affordable home crisis in our country?

I don’t have a crystal ball, nor have I studied this issue with the time it deserves. I’ve spoken to a number of real estate leaders who believe this rental crisis will be impactful. How do you provide affordable housing and make a living? Of course, the recently passed COVID-19 relief package included $25 billion on rental assistance and expanded unemployment insurance. According to a recent Zillow survey, “While the extra assistance helps on a monthly basis, millions behind on their rent still face an incredible challenge of catching up on payments that have piled up before temporary eviction moratoriums expire.” In addition, for the individual owners, selling may be the only feasible option, and that may be good for the real estate market, which is desperate for inventory. However, if the landlords themselves haven’t been able to keep up the hard costs, you’re looking at a surplus of foreclosures. I would love to hear your opinion of this. Please email tvelt@realtrends.com with your thoughts on this potential crisis and what you think should be done. This article reprinted with the permission of Real Trends Inc. Copyright 2021. BAKERSFIELD REALTOR® MAGAZINE

Continued from page 19 has served as an MLS Director and BAK Director. Professionally, Kevin holds a Broker’s license in the State of California. Nationally, he is a member of the American Society of Farm Managers and Rural Appraisers where he holds the professional designation of Accredited Farm Manager. Kevin has also completed Mediation Training for Dispute Resolution at the Straus Institute for Dispute Resolution Pepperdine University School of Law. In the Bakersfield community, Kevin is active with the Music Ministry and Men’s Bible Study Group at St. Elizabeth Ann Seton Church and currently serves on the Advisory Board of Kern County Student Leadership. Kevin is a past Board Member of the Kern County Farm Bureau, the Bakersfield Heart Association, and the Kern County Make a Wish Foundation. He is a graduate of Cal Poly San Luis Obispo with a Bachelor of Science degree in Agricultural Management.

WHAT IS AN OMBUDSMAN? An Ombudsman is a neutral party who can confidentially, neutrally and independently prevent or resolve problems, complaints or issues brought by individuals or groups against a member of the real estate profession. The word “Ombudsman” means “representative of the people”, but the term has come to be used for the individuals who receive complaints and act as neutral mediators to try to reach fair solutions for the parties involved. The Ombudsman is easily accessible as a confidential sounding board and source of assistance. The Ombudsman can field and respond to a wide variety of inquiries and complaints, including general questions about real estate practice, transaction details, ethical practice and enforcement procedures. They may also receive complaints about members, and contact those members to inform them that a client or customer has raised a question or issue, and thus obtain information necessary to provide an informed response. They will not advocate for either party, nor will they be finding “right or wrong” with the parties involved, but will assist the parties to get clarity on the rules or issues and recommend possible options to resolve the

BAKERSFIELD REALTOR® MAGAZINE

problem before a more formal process is begun. The Ombudsman program is a “free” voluntary REALTOR® member benefit and is also available to any person from the public.

governmental or regulatory body (i.e. Bureau of Real Estate); to pursue litigation; or to pursue any other available remedy.

WHAT DOES THE OMBUDSMAN DO? The Ombudsman will: 1) Listen and help analyze the problem

Yes. An individual may call or meet with the Ombudsman without giving their name. However, this may limit the options available to the resolution of the concern.

or complaint. 2) Help to define and evaluate options. 3) Help to resolve problems informally and expeditiously. 4) Make inquiries into a problem, complaint, or concern. 5) Initiate discussions with other involved parties with their consent. 6) Provide information on resources that may help.

Yes. Persons filing complaints, or inquiring about the process for filing ethics complaints, will be advised that Ombudsman services are available to attempt to informally resolve their complaint. That person will also be advised that they may decline Ombudsman services and can have their complaint considered at a formal ethics hearing.

WHAT DOES THE OMBUDSMAN NOT DO? The Ombudsman will not: 1) Provide legal advice, nor legal representation. 2) “Take sides” or advocate for either party. 3) Compel or order a certain action be taken. 4) Conduct formal investigations. 5) Participate in formal grievance or arbitration procedures. 6) Determine whether ethics violations have occurred. 7) Keep formal written records. 8) Render judgment in a particular case.

FREQUENTLY ASKED QUESTIONS: 1) What about confidentiality?

The Ombudsman will not identify nor discuss concerns with anyone without permission. Private, confidential meetings at the Association of REALTORS® can be arranged. An exception to this confidentiality is when the Ombudsman decides that there may be a violation of public trust. (see next question) 2) What is a violation of public trust?

This is conduct involving misappropriation of client or customer funds or property, willful discrimination, or fraud resulting in substantial economic harm. In the event the Ombudsman concludes that a potential violation of the public trust may have occurred, the Ombudsman process shall be immediately terminated, and the parties shall be advised of this right to pursue a formal ethics complaint; to pursue a complaint with any appropriate

3) Can the caller (complainant/ respondent) remain anonymous?

4) May a person decline the services of the Ombudsman?

5) Are discussions with the Ombudsman referred to the California Association of REALTORS® (C.A.R.) for any reason?

No. Neither informing the Ombudsman in person or in writing about a concern constitutes “notice” to C.A.R. The Ombudsman can provide referral information to the caller about whom to contact. 6) Is the Ombudsman also an advocate?

No The Ombudsman does not take sides in a dispute. The rights and interests of all parties are carefully considered with the aim of promoting a fair and civil process to resolve the issue. All parties will receive equal consideration. 7) Why would someone choose the Ombudsman process instead of filing an ethics complaint? It will be a quicker and easier process to resolve misunderstandings by first contacting the Ombudsman. It may prevent escalation to a formal ethics hearing that may take weeks. The process can be accomplished without filing a written complaint. The Ombudsman process can take 2 to 5 days, depending on the availability of the parties involved. FOR MORE INFORMATION or to request Ombudsman services, reach out to our Ombudsman hotline where you will contact David Knoeb or Kevin Palla at 661-635-2052 email: Ombudsman@bakersfieldrealtor.org Online Ombudsman Services Request

Edited

RTrends

Why the Sudden Interest by

Outside Investors?

Tons of money has been thrown into the residential real estate brokerage space over the past few years. Here’s why. BY STEVE MURRAY, SENIOR ADVISOR, REAL TRENDS

Many in our industry are amazed at how much money has been invested into the residential real estate brokerage space over the past few years. To give you some perspective, let me offer these thoughts. This high level of interest is not all that new. For those who don’t recall, 40 years ago, Merrill Lynch and Sears began investing in brokerages. Then, Metropolitan Life and Prudential invested in the real estate brokerage business. In fact, dozens of savings and loan companies and credit unions have invested in brokerage firms. The interest by most was the potential cross sale of housing-related financial services, such as mortgage, title insurance, escrow services and property casualty insurance. So, the interest in brokerage by outsiders is not all that new.

SOME REASONS FOR INTEREST BY OUTSIDERS Now, let’s get into the reasons for the interest: n The residential real estate industry makes a lot of money – $85.9 billion in 2020 gross revenues. n There is strong demand for housing with limited supply of inventory, which is likely to create a strong market for many years to come and a strong desire in many Americans to be homeowners. n A fragmented market where the five largest national firms have less than 35% of the market, and the 500 largest brokerage firms have only a 38.5% market share. n The strengthening of brokerage firms’ ability to cross-market housing-related financial services, and a predictable regulatory environment in which to do so.

n The

belief that various technologies will break Americans’ habit of choosing an agent based on relationship, and change it to one based on features, benefits and cost savings, and deliver higher gross margins to the owner of the technology platform. n A consumer market in which the combination of com-missions, financial services and related homeownership products and services has created a consumer market that’s in the trillions of dollars of annual revenues and valuation. These factors explain the most recent fascination with residential brokerage. These key points are not going to go away soon— if ever. Steve Murray is a senior advisor to RealTrends and a partner in Colorado-based RTC Consulting. This article reprinted with the permission of Real Trends Inc. Copyright 2021. BAKERSFIELD REALTOR® MAGAZINE

Strategies for more engaging sales meetings

The World is a Stage

ANNA MARIE ELLISON | Real Trends, ERA King Real Estate

may not quote Shakespeare during ERA King Real Estate’s weekly sales meetings, but I would definitely say we inject a bit of theater into these highly staged productions. Paying attention to how you produce a meeting should be just as important as the material you present. The more engagement opportunities you create will lead to a more inspired and productive team. That’s why we’ve invested so much in our weekly meetings and they have truly become a show. SET THE STAGE TO SET THE TONE Our philosophy as a real estate firm is that ERA King the company does not sell properties, our people do. Our whole business is built around supporting our people and positioning them for success. Sales meetings are a significant component of that support. As a managing broker for the firm, I oversee agent recruiting and professional development. I’ve found that weekly meetings go a long way in setting the tone for the

week, providing motivation and creating achievable goals to support sustained production. That word production is important to us because we spend hours preparing to make certain our sales meetings aren’t just another meeting but an engaging, fun and productive event. Preparations for each weekly meeting begin at least one month out: Each leadership team member is provided with their schedule for the month, and it’s up to them to determine what content they will cover in their time slot each week. Once topics and content are established, each presenter works with our staff designers to create visually appealing slides to support their content. They may also make song selections to accompany their content. We then do a 30-minute dress rehearsal the day before the meeting to work out any rough spots. I learned that these meetings are critical, and you can’t just prepare for them the night before. You need to invest time and effort to create an informative, collaborate and valuable opportunity that drives a culture where agents want to—and do everything they can to—attend the meetings. ENTERTAIN THE SENSES In real life, I have a DJ for our sales meetings, which creates a subtle musical undercurrent of energy and momentum for the hour and discourages chit-chat in the audience. We are currently working on a way to incorporate the musical component on Zoom because the platform only allows for one audio source. One of the things we’ve been challenged with during COVID-19 is translating the incredible energy from our live weekly meetings. I design the meetings to be entertaining, fast-paced and highly motivational to keep our agents energized for the next six days. Moving to a virtual format has meant we needed to up our game, create more visually appealing slides—and more of them—to keep people’s attention on the screen. One thing we noticed is that it was harder to keep people focused on their computer screen for a full hour.

Studies show that it’s harder to digest material on a screen, so we shortened the meetings to 45 minutes to avoid screen fatigue. So, our presenters need to be tight and succinct, which has required us all to up our communication skills. Another adjustment has been the audience participation factor. In real life, it’s easy to catch someone’s eye in the audience or invite them to the front to be acknowledged—breaking the wall between the actors and the audience. During virtual meetings, we had to experiment with ways to create connections between the presenters and the audience. We always start our meetings with an interactive game or quiz in which participants can annotate on the screen or type in the chat. We also encourage questions and comments throughout the meeting. A QUALITY PRODUCTION We’ve been using Zoom for sales meetings for a few years now, letting agents attend in person or virtually. Because our agents were already comfortable and familiar with the platform, we didn’t have a technology curve to get over once we switched to 100% Zoom meetings during COVID-19. Pre-COVID-19, we had about a 50% participation rate for sales meetings, but during the pandemic, we saw participation increase to 75%. Quality content that both educates and entertains has been a mainstay of our sales meetings, which is why we have a high participation rate both in-person and virtually. Part of the increase we saw for the virtual meetings can be attributed to the fact that people didn’t have conflicts because they weren’t having in-person meetings. In addition, the convenience of logging into a meeting from home was a key factor. And probably just as significant was that the virtual meeting provided a much-needed place for our team to see each other and connect. We are a social bunch! While it may seem like a lot of work to produce a high-quality show every week, note that what you put in is what you get out. We invest in our agents and we always have, which continues to be a formula for success. We may not get an Emmy or Tony for our work, but the reviews have been excellent! This article reprinted with the permission of Real Trends Inc. Copyright 2021.

Low inventory and multiple offers

Don’t forget to negotiate home plate

(The Closing!)

LARRY KENDALL, AUTHOR OF NINJA SELLING

re your agents’ contracts falling apart even when sellers are in a power position? Here’s how to avoid it. Are you in a strong sellers’ market with low inventory and multiple offers? If your sellers are in the power position, why are they experiencing such a high level of contract cancellations? Have you heard the frustration of an associate lamenting how their listing had 10 offers but the contract has now fallen through, and the home is back on the market? What an unfortunate experience for their seller—and the associate. Now they have to start over. What happened? The listing real estate professional and the seller failed to negotiate home plate. They just negotiated first base (usually price and closing dates). Later, they had to negotiate the inspection (second base). Then, they negotiated the appraisal (third base). There are often other elements to negotiate before they finally get to closing (home plate). Associates skilled in the art and science of negotiating know that when the seller is in the power position with multiple offers on the table, you negotiate for home plate. You tidy up the contract by removing as many contingencies as you can up front. A seller can demand this

when they are in the power position. The minute the seller signs one of the contracts, the power position shifts to the buyer. Knowing the five negotiating points of a contract is the key. Here are the five points, and the questions a skilled negotiator would ask of the 10 buyers who have offers on the table. 1. Price. “Who is willing to pay the highest price?” 2. Terms. n Earnest Money. “Is anyone willing to release all or a portion of their earnest money to the seller upon signing of the contract? This money will become non-refundable as assurance to the seller that you are serious about purchasing the home.” n Cash. “Is anyone willing to pay cash and will provide verification of funds?” n Loan. “Who has a loan approval letter from their lender? Will you give me permission to call the lender and verify the buyer’s loan approval?” 3. Dates. n Closing. “Is anyone willing to close on the dates preferred by the seller?” n Possession. “Is anyone willing to allow the seller to give possession on the following date?” In some cases, allowing the seller to stay in the property or rent back after closing. 4. Inclusions & Exclusions. n “Are you willing to accept the inclusions and exclusions as

specified by the seller?” 5. Contingencies. n Appraisal. “Is there anyone willing to waive the appraisal clause and bring the extra cash to closing to make up the difference?” If not, “Is anyone willing to modify the appraisal clause and purchase the property as long as it appraises for $_________ or more?” n Inspection. “Is anyone willing to waive the inspection clause?” Alternatives: “Who is willing to accept the pre-inspections that have been done on the property?” “Who is willing to have the property inspected and waive the inspection clause prior to the seller signing the contract?” These questions may seem demanding (and they are) on the part of the seller, but it’s reasonable to ask them when the seller has multiple offers on the table and is in the power position. These questions improve the seller’s chances of making it to home plate. As the listing associate, how do you do this? You call up the buyer’s Realtor. What a concept! A study by Stanford University found the chances of success in a negotiation improve dramatically when there is live conversation between the parties (not just emails and text). Start with what looks like the best offer and start making your calls. You and your sellers will get to home plate. This article reprinted with the permission of Real Trends Inc. Copyright 2021. BAKERSFIELD REALTOR® MAGAZINE

Soaring home values and unprecedented buyer demand meant property owners pocketed substantially last year

Homeowners gained $20,000 in Wealth in 2020 SHELBY R. KING, Assistant Editor, Real Trends

Homeowners in 2020 gained more than $20,000 in wealth as home prices soared and buyer demand remained strong across the nation. Home prices nationwide increased in February 2021 faster than in January, and continued to appreciate at higher-than2020 average monthly rates, according to recent data released by Red Bell Real Estate, LLC, a subsidiary of Radian Group Inc. Home prices nationally rose from the end of January 2021 to the end of February 2021 at an annualized rate of 8.2%. February 2020 was the last month before pandemic-related shutdowns were implemented nationally. One year past that transition, home prices have shown tremendous resiliency in aggregate. The Radian Home Price Index (HPI) rose 8.3% year-over-year between February 2020 and February 2021. In comparison, the year-overyear period from February 2019 through February 2020 recorded a 7.4% increase in home prices nationally. NATIONWIDE DATA AND TRENDS Nationally, the median estimated price for single-family and condominium homes rose to $272,186, representing a more than $20,800 increase over the $251,384 median estimate at the end of February 2020. This means that the average U.S. homeowner gained more than $20,000 in wealth last year due to strong

BAKERSFIELD REALTOR® MAGAZINE

home price appreciation, and home prices rose an annualized 9.3% over the last six months, according to the study. This change represents a strong increase over the prior six-month appreciation rate of just 6.9%. Housing markets continue to be buoyed by ongoing imbalances between housing supply and demand. February 2021 continued a streak of records broken, both by setting the record for lowest number of active listings in any February, as well as for the highest number of sales in a February. Moreover, the absorption of inventory was brisk. The number of sales equated to 27% of the number of active listings, suggesting a very strong demand for inventory. REGIONAL DATA AND TRENDS Similar to the national reporting, all U.S. regions reported positive price appreciation in residential markets in February 2021. The Mid-Atlantic and Northeast regions were particularly resilient in what are normally down months for housing activity. While appreciation rates in these markets were comparable to those recorded over the last four months, it is more common to see some slowing of appreciation during winter months in these areas. The Midwest did record the weakest regional appreciation rate, and was weaker than prior months. The Southwest and West were the top performing regions in February. At the state level, home price appreciation was positive in all 50 states and in the District

of Columbia; however, 20 of the 51 states reported slower monthly appreciation in February when compared to the prior month. Home price appreciation momentum differs by state. METROPOLITAN DATA AND TRENDS All of the 20 largest metro areas in the U.S. reported positive price appreciation in February as compared to January 2021. Three metros— New York, Philadelphia and Boston—recorded slower annualized price appreciation month over month. It is striking that 17 of the 20 largest metro areas report higher rates of appreciation than in the month prior to the onset of the COVID-19 pandemic in the U.S. in early 2020. These metros grew faster in February 2021 than they did in February of 2020. To put that in perspective, the start of 2020 was the strongest on record following the Great Recession, as housing markets were very strong prior to the pandemic and reflected the broad strength of housing market prices. In just the first two months of 2021, the average median estimated price of homes in the 20 largest metros is greater by almost $5,000, which is a 78% increase over last year’s estimate of $2,800 for the same period. The Radian HPI is calculated based on the estimated values of more than 70 million unique addresses each month, covering all single-family property types and geographies. This article reprinted with the permission of Real Trends Inc. Copyright 2021.

Economists say the housing market will continue to boom, but where will we find the inventory? Let’s look at the numbers.

Lack of Housing Inventory Issue

Steve Murray, Senior Advisor HW Media

ccording to multiple sources, including Realtor.com and the National Association of REALTORS® (NAR), housing inventory is at an all time low. Currently, the national average is less than two months of housing inventory is available. Several markets we’ve examined indicate it’s lower than that. Yet, most housing market economists think we will sell more homes in 2021 than in 2020. They predict that both new and existing home sales will be up. Where is the inventory to come from? What will cause 4.5 to 5.5 million existing homes to come on the market when those sellers have nothing to buy? Consumers are sitting on nearly $1.4 trillion (with a ‘T’) more in savings accounts than was the case before the pandemic hit, and the federal government is supplying an additional $2.5 trillion (with a ‘T’) to the economy. Is anyone considering that we are worsening the affordability issue beyond what can be imagined? From the best data we’ve been able to find, the difference between housing formations and new, single-family and multi-family construction since the housing recovery started in 2011 is between 4 and 5 million units. That is, we built 4 to 5 million fewer units in the last 10 years than the number of new households that were formed. This includes single-family, condo, and multi-family for rent.

There are many challenges to our industry, but none more so than inventory and affordability. If the federal, state, and local governments, together with the private sector and institutions like NAR, would focus on this issue, then maybe solutions could be found. Do not expect to find this at the top of any of these organizations’ priorities. Biden’s $15,000 Tax Credit for Homebuyers In particular, the proposed $15,000 tax credit to help get people into homes could hurt the market. Certainly, there’s nobody in the REALTOR® universe who would argue about any incentives to help people buy homes. It’s a good thing for all of us, and we think it’s good for people to be able to own a home. Remember, it was the federal government, every bit as much as Wall Street, that caused the last crash in the housing market and the economy from 2006 to 2009. The bottom line is that starting with the Clinton administration and moving into the George W. Bush administration, home ownership was seen as a positive thing. It turned out not to be true. The home ownership rate went from 64.5% to almost 70% in 2005 because of the stimulus provided to people. Anyone remember subprime mortgages, Alt-A mortgages, no-interest mortgages, homebuyer tax credits, homebuyer down payment assistance

programs, and Fannie and Freddie lowering their underwriting standards? What does that have to do with President Biden’s $15,000 tax credit? We have two major problems. If we have the critical low inventory we have right now, where are they going to find the homes to buy, particularly when they’re competing with cash-down investors and iBuying companies like Opendoor, Zillow and Redfin? The $15,000 tax credit will help buyers be more competitive, but it’s not going to be a windfall for young home buyers, and it’s not going to help the way the government thinks it will. Do the Work It’s my thinking that if the federal government would do the messy, hard work of strategizing with state and local governments to build more housing—particularly affordable and workforce housing—it would be far better than simply handing a young family a check and saying, “Okay, we’ve done our part. Now go out and compete in the marketplace to try to buy a home.” I just don’t think it will have that big of an impact. It sounds good. It’s a wonderful sound bite. It’s a wonderful program. It will help some, but not as much as we think it will. The truth is that the lack of housing is a real challenge that is not going away. This article reprinted with the permission of Real Trends Inc. Copyright 2021. BAKERSFIELD REALTOR® MAGAZINE

LOCAL NUMBERS YOU NEED TO KNOW

INDUSTRY STATISTICS

2020 Compared to 2021 by MLS Area

state of the

HOUSING MARKET 2021 YEAR-OVER-YEAR STATS Area

Dollar Value

# Sold

Average Sold Price*

% of List Price*

DOM*

2021

2020

2021

2020

2021

2020

2021

2020

2021

2020

112

$28,277,380

$14,228,249

$258,204

$206,793

99.73

97.51

$12,100,350

$5,656,450

$157,470

$131,924

99.83

96.69

105

$27,577,100

$16,396,399

$262,924

$221,105

11.74

98.50

$9,319,400

$4,288,000

$388,308

$428,800

99.48

90.46

127

$29,854,683

$16,132,670

$237,945

$189,796

100.22

98.88

240

192

$63,165,390

$42,285,189

$267,948

$228,298

100.60

99.14

169

$51,754,940

$17,226,488

$318,635

$265,063

100.33

99.66 98.13

$14,734,100

$9,158,615

$377,108

$335,524

98.57

$8,195,490

$8,451,675

$184,535

$175,314

100.03

97.50

$18,340,550

$15,647,230

$265,080

$224,632

98.79

98.90

$1,595,500

$255,000

$243,100

$255,000

95.49

104.08

285

201

$64,383,950

$36,701,286

$238,734

$194,092

100.43

98.58

609

571

$179,018,456

$148,293,787

$309,323

$269,710

101.01

99.44

355

227

$152,127,686

$76,940,171

$431,971

$343,819

100.78

98.65

$7,562,199

$7,770,378

$504,147

$385,515

99.71

99.14

114

$42,901,955

$25,557,022

$380,612

$307,916

100.83

98.55

459

365

$180,494,298

$123,821,220

$393,898

$340,113

101.02

99.01

214

158

$106,494,696

$66,403,876

$505,430

$426,942

99.84

98.80

$5,150,942

$2,470,000

$515,094

$494,000

98.33

97.09

$3,017,000

$3,172,262

$335,222

$317,226

99.64

98.71

$37,922,450

$30,692,179

$401,735

$364,215

99.62

97.64

$4,151,900

$1,707,499

$199,670

$220,357

232

96.60

99.23

$6,320,800

$2,975,849

$345,878

$145,042

157

101

91.92

93.54

$5,050,800

$9,406,700

$336,720

$361,796

100.25

98.47

$930,000

$1,915,000

$640,000

$638,333

91.43

98.86

$5,379,400

$1,465,000

$384,243

$290,333

119

97.39

95.31

$7,006,899

$3,992,400

$250,246

$199,620

98.80

93.77

$1,605,000

$650,000

$401,250

$650,000

185

97.30

92.99

$349,900

100.00

0.00

$3,572,500

$3,090,350

$258,136

$284,433

100.06

94.73

$21,239,050

$22,564,155

$255,133

$230,246

99.04

98.23

105

$19,272,949

$9,922,040

$187,289

$138,784

98.66

97.31

$17,382,940

$14,322,300

$251,895

$217,005

98.69

98.44

115

$43,825,915

$30,023,113

$391,873

$355,893

99.92

97.18

* Figures from Single Family Homes Only. Statistics were run on June 4, 2021

The numbers tell the story Active, Pending and Sold - All Areas

APRIL 2021 2021

2020 2020

% Year % Year over over Year Year Change Change

Active Active

April April Contingent Contingent

505505 2021 2021 202202

1,260 1,260 2020 2020 149149

-59.9% -59.9% % Year % Year over over Year Year Change Change 35.6% 35.6%

Active Active Pending Pending

505 505 1,361 1,361

1,260 1,260 991 991

202 202 821 821

149 149 567 567

MAY May May

2021 2021

2020 2020

% Year % Year over over Year Year Change Change

Active Active

May May Contingent Contingent

487487 2021 2021 219219

1,229 1,229 2020 2020 172172

-60.4% -60.4% % Year % Year over over Year Year Change Change 27.3% 27.3%

-59.9% -59.9% 37.3% 37.3%

Active Active Pending Pending

487 487 1,356 1,356

1,229 1,229 1,014 1,014

-60.4% -60.4% 33.7% 33.7%

35.6% 35.6% 44.8% 44.8%

Contingent Contingent Sold Sold

219 219 731 731

172 172 510 510

27.3% 27.3% 43.3% 43.3%

Pending Pending 1,361 1,361 $156,393,016 991 991 Total Total Volume Volume Closed Closed $271,479,042 $271,479,042 $156,393,016

37.3% 37.3% 73.6% 73.6%

Pending Pending 1,356 1,356 $137,677,074 1,014 1,014 Total Total Volume Volume Closed Closed $248,084,850 $248,084,850 $137,677,074

Sold Sold 821 821 Median Median Sales Sales Price Price * * $310,500 $310,500

44.8% 44.8% 16.7% 16.7%

Sold Sold 731 731 Median Median Sales Sales Price Price * * $317,000 $317,000

73.6% 73.6% -34.4% -34.4%

Total Total Volume Volume Closed $248,084,850 $248,084,850 $137,677,074 $137,677,074 Average Average DOM DOM * Closed * 18 18 32 32

April April

All Areas

Contingent Contingent Sold Sold

567 567 $266,000 $266,000

Total Total Volume Volume Closed $271,479,042 $271,479,042 $156,393,016 $156,393,016 Average Average DOM DOM * Closed * 21 21 32 32 Median Median Sales Sales Price Price * * Average Average DOM DOM * *

$310,500 $310,500

$266,000 $266,000

16.7% 16.7%

Median Median Sales Sales Price Price * *

2121

3232

-34.4% -34.4%

Average Average DOM DOM * *

2020 2020

% Year % Year over over Year Year Change Change

Bakersfield Bakersfield Only Only Bakersfield April April

Bakersfield Bakersfield Only Only

All Areas

510 510 $263,000 $263,000

33.7% 33.7% 80.2% 80.2% 43.3% 43.3% 20.5% 20.5% 80.2% 80.2% -43.8% -43.8%

$317,000 $317,000

$263,000 $263,000

20.5% 20.5%

1818

3232

-43.8% -43.8%

2021 2021

2020 2020

% Year % Year over over Year Year Change Change

Bakersfield 2021 2021

May May

694694 458458 51.5% 51.5% % Year % Year over over Year Year April April 2021 2021 2020 2020 Change Total Total Volume Volume Closed Closed $235,628,192 $235,628,192 $128,765,617 $128,765,617 Change 83.0% 83.0%

Sold Sold

Sold Sold 694 694 Median Median Sales Sales Price Price * * $319,000 $319,000

51.5% 51.5% 16.8% 16.8%

Sold Sold 618 618 Median Median Sales Sales Price Price * * $322,000 $322,000

83.0% 83.0% -35.7% -35.7%

Total Total Volume Volume Closed $209,952,700 $209,952,700 $117,042,419 $117,042,419 Average Average DOM DOM * Closed * 15 15 28 28

16.8% 16.8%

Median Sales Sales Price Price *Family * $322,000 $322,000 $267,213 $267,213 20.5% 20.5% *Median Figures from Single Homes Only. Statistics were run on June 4, 2021

Sold Sold

458 458 $273,000 $273,000

Total Total Volume Volume Closed $235,628,192 $235,628,192 $128,765,617 $128,765,617 Average Average DOM DOM * Closed * 18 18 28 28 Median Median Sales Sales Price Price * *

Quarterly Average Average DOM DOM * *

* Single Family Only * Single Family Only

$319,000 $319,000

$273,000 $273,000

1818 1s t Qt r 2021

2828 1s t Qt r 2020

New Listings * Single * Single Family Family Only Only Contingent

2,489 945

506

Pending

2,349

1,900

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

-35.7% -35.7% 2n d Qt r 2021

618618 427427 44.7% 44.7% % Year % Year over over Year Year May May 2021 2021 2020 2020 Change Total Total Volume Volume Closed Closed $209,952,700 $209,952,700 $117,042,419 $117,042,419 Change 79.4% 79.4%

Average Average DOM DOM * * 2n d Qt r 2020 3rd Qt r 2021

427 427 $267,213 $267,213

1515 3rd Qt r 2020

44.7% 44.7% 20.5% 20.5% 79.4% 79.4% -46.4% -46.4%

2828 -46.4% -46.4% 4t h Qt r 2021 4t h Qt r 2020

2,431

2,012

1,690

$626,082,733

$458,027,974

$295,000

$254,800

$172.94

$152.36 BAKERSFIELD REALTOR® MAGAZINE

A l l 20

Continued from page 9 Family Relief Fund. In 2013 he was honored as the Association’s 2013 Salesperson of the Year. He has served on the Budget and LongRange Planning Committee for both Boards and currently serves on the Strategic Planning and Finance Committee as Chair. He also serves on other committees: Commercial Investment Forum, LCRC (Chair since 2017), Membership Orientation, and MLS Open Forum. He has conducted Ethics orientation sessions since 2013 and has been assisting in mediation sessions at the Association since 2014. Wayland also stays active in the community as a volunteer, feeding lunch to senior citizens at the Salvation Army/Sally’s Place monthly, and is a member of the Wounded Heroes Fund of Kern County. Wayland serves on the Citizens Oversight Committee for the Bakersfield Public Safety/Vital Services Measure (Measure N) until February 2022. Most recently, he was appointed to the Assessment Appeals Board of Kern County. Wayland is very thoughtful and analytical. He always considers the membership as a whole when making decisions as a Director, as is shown when he states, “please exercise your right to vote when election time comes!”

NEW 2021 DIRECTORS Scott Hanson

2021 - 2022 Director The Hanson Group

Scott is an experienced Real Estate Investor, Lender, and Broker with over 25 years of real estate experience. He has actively participated in all aspects of the industry. He is a mortgage broker, hard money lender, broker, investor, developer, and property manager. He holds a California Real Estate Broker license, a mortgage license with the Nationwide Mortgage Licensing System and Registry (NMLS), and a Bachelor of Business Administration degree with a concentration in Finance from Cal State University Bakersfield. Scott is a real estate professional that continues to contribute to the growth of the real estate industry.

Saul Bernal 2021 - 2022 Director Miramar International

Saul Bernal a father of two grown men,

BAKERSFIELD REALTOR® MAGAZINE

Robert and Michael, and the grandfather to Andrew M. Bernal and Melody G. Bernal, the apples of his eye! He moved to Bakersfield in 1999 for a Store Management job with OfficeMax after being employed as a Store Manager with K-mart for four years. Right from the beginning, Saul knew he would really like Bakersfield; it is a big city with a small-town feel. In late 2003, after 18 years of working in retail, 15 of those years in retail management, Saul decided he needed a change. Saul received his real estate license in April of 2004 and began his real estate career. He earned his GRI designation by 2005. Saul worked for three different brokerages, and in 2011, was approached by the owner of Miramar International to become their Broker of Record. Soon after, He was able to get involved at the local Board of REALTORS® and serve in various capacities; see below: n Strategic

Planning and Finance Committee Member n GE/MLS

Board as a member and as a Vice-Chair n Brokers

Forum Chair and Vice-Chair

n Brokers

Advisory Chair and Member

n Nominating

Coldwell Banker Preferred, REALTORS® as a Sales Manager, in which he remains as of today. In 2006 Brian became active with the Bakersfield Association of REALTORS® and has been on a variety of committees as a member, vice-chair, chairperson, and has also served as Director for the GEMLS and the Association. Brian enjoys spending time with family, friends, and particularly his daughter. They enjoy camping, traveling, and especially spending time at livestock shows and relaxing along the central coast. Most of his family lives in Kern and San Luis Obispo counties, with the remaining in Missouri, Texas, and Southern California.

Roger Magana 2021 - 2022 Director Golden Valley Real Esate Group

Roger relocated from Los Angeles to Bakersfield in the ’90s; he was introduced to the Real Estate industry back in 2003 as a clerical assistant and fell in love with helping the community. Therefore, he became a full-time REALTOR® and opened his brokerage firm Golden Valley Real Estate Group, in 2005. He helped firsttime homebuyers, veterans, investors with

Committee Saul mentions, “I am genuinely excited to serve as a Director of the Association Board. I will do everything in my power to serve its members and our local community.”

million-dollar portfolios, multi-family

Brian Tuttle

until 2012. To expand and learn from peers,

2021 - 2022 Director Coldewll Banker Preferred, RLT

Brian was born in Sacramento and is a native of Kern County since age 11. He grew up Taft, California and moved to Bakersfield at age 19. After attending college, he began working in the hospitality industry for Hilton Corporation as a food and beverage manager. In 2001, Brian decided to make a career path change to allow him more time with his family, including his then, newborn daughter. In December of that year, he obtained his real estate license, joined Coldwell Banker Preferred, REALTORS® as a Sales Associate, and began his real estate career. In 2005, he accepted a position with

units, and commercial properties. Due to the market crash in 2007, he became one of the most successful short sale listing agents in town, closing hundreds of transactions he served as a panelist on the Grievance Committee for three years, then became the Grievance Committee chair for one year, currently serving as a panelist on the Professional Standards Committee for the last three years. Overall, his passion for real estate has become his priority, as well as helping his clients, agents, and fellow REALTORS®, with two offices in Kern County and multiple agents working under his brokerage. His commitment, dedication, negotiation skills, and knowledge in the Real Estate industry are what sets him apart from the rest. Finding a solution for every problem is in his nature, with a well-known slogan in town “Let’s Do This.“

Thriving in the new Abnormal Three New Skills to Help Your Business Post-Pandemic LARRY KENDALL, Author of “Ninja Selling”

When will things return to normal after the pandemic? This often-asked question assumes our experience was some sort of cyclical event such as daylight automatically following darkness. But what if there were structural changes caused by the pandemic? What if these changes are the new abnormal? Here are three new skills required to thrive: 1. Virtual viewing. Due to the lockdowns, buyers became very comfortable viewing properties online—even making offers without physically seeing the property. Here are the facts according to the National Association of REALTORS®. n 63% of buyers last year made offers without ever physically viewing the home. n Buyers viewed an average of nine homes before writing a contract. – Five of these were virtual viewings. – Four of them were physical viewings. – How a home shows virtually often determines if it “makes the finals” and is viewed physically. Strategies in the new abnormal: n When working with buyers, have the knowledge and the tech skills to serve them virtually.

When working with sellers, make sure your listings “shine” online. 2. Bring your “A Game.” Due to virtual viewing and contracts, listings need to shine online. Homes that received the most views and contracts were staged and had professional photography, video and virtual floor plans available with the listing. These homes received more views, more contracts, sold faster and had fewer cancellations. In one study, homes where real estate professionals brought their A Game were viewed online for 90 seconds on average, whereas homes that did not have staging, professional photography, video, and floor plans were viewed for only four seconds. Your next listing is embedded in your current listing. Because of virtual viewing, future sellers are now more often picking their listing associate based on how the associate’s listings show up online. Who is bringing their A Game? Sellers want to list with those Realtors. 3. The three-step listing launch. The obsession with “speed to market” is a trap. Putting a home on the market before it is properly prepared (staged) and the marketing materials (A Game) are ready results in a lower sales price and hurts the seller. The best associates in our industry follow the three-step listing launch. n

Step 1: Package. Package the house well (staging) and prepare your marketing materials (professional photography, video, floor plans, etc.). Take the time to get the home as move-in ready as possible. n Step 2: Price. Develop your pricing strategy. This is based on the condition of the home, as well as current market conditions. n Step 3: Promote. Launch your marketing program – MLS, online, open houses, social media, outreach to potential buyers, neighbors and Realtors, etc. Follow your “marketing syntax.” Syntax is the order and sequence of words. For example, “The dog bit Johnny,” and, “Johnny bit the dog” are the same words. But when you change their order, the meaning changes—and therefore so do the results. The same is true with your marketing syntax. Follow the “package, price, promote” order, and you will get the results you are looking for. Unfortunately, some associates do the right things but do them in the wrong order. The most common mistake is promoting (Step 3) before they have packaged (Step 1). Develop your three new skills and you will thrive in the new abnormal! n

Larry Kendall is one of the founding partners of The Group, Inc., a real estate company that is owned equally by its sales associates and staff. He is also the author of “Ninja Selling.” This article reprinted with the permission of Real Trends Inc. Copyright 2021. BAKERSFIELD REALTOR® MAGAZINE

Bridging the Gap for Minority Homeownership NAR officials say data reinforces need for implementation of key housing policy initiatives to close persistent minority homeownership gaps. TRACEY C. VELT, Real Trends

Minority homeownership stubbornly lags behind the national rate, with Black Americans facing some of the toughest hurdles to achieving this essential part of the American Dream, according to the National Association of Realtors®. The homeownership rate for Black Americans (42%) is nearly 30% less than the rate for white Americans (69.8%.) The U.S. homeownership rate stands at 64.2%, with the rates for Asian and Hispanic Americans at 60.7% and 48.1%, respectively. NAR’s Snapshot of Race & Home Buying in America report examines the homeownership rate among each race in 2019 using American Community Survey data by state and the changes in the homeownership rate by race from 2009 to 2019. Using the Profile of Home Buyers and Sellers data from 2020, the report looks into the characteristics of who purchases homes, why they purchase, what they purchase, and the financial background for buyers based on race. Regarding home affordability nationwide, 43% of Black households can afford to buy the typical home compared to 63% of white households, 71% of Asian households and 54% of Hispanic households, according to the study. Wide variances in affordability exist by state. For example, more than 60% of Black households can afford to buy a home in Alaska, Kansas, Nebraska, South Dakota, and Vermont. However, less than a third of Black households can afford to purchase a home in California, Colorado, Hawaii, Massachusetts, Montana, Nevada, Oregon, Utah,

BAKERSFIELD REALTOR® MAGAZINE

Washington state, Wyoming, and the District of Columbia. There are only four states where less than half of white households can afford to buy a home: California, Hawaii, Oregon, and Washington state. More than half of Asian households can afford to purchase a home in all but six states—California, Colorado, Hawaii, Montana, North Dakota, Wyoming—and the District of Columbia. MULTIGENERATIONAL LIVING Nearly a quarter of Asian Americans (23%) and one in five Hispanic Americans (18%) purchased a multi-generational home, with “spending time with aging parents” and “saving money” listed as the primary reasons for those decisions. Fifteen percent of Black Americans and 10% of white Americans bought a multi-generational home as both segments said a top driver was adult children or relatives moving back into the home. Black and Asian Americans were more likely to say that “wanting a larger home that multiple incomes could afford together” was an important reason for buying a multigenerational home. TAPPING INTO RETIREMENT SAVINGS Black Americans (15%) and Hispanic Americans (10%) were three and two times as likely, respectively, than white and Asian Americans (5% each) to tap into their 401(k) or pension funds as a down payment source for a home purchase. Such actions can negatively impact future wealth growth and savings attainment. Conversely, almost four

out of 10 white Americans (37%) used the funds from the sale of their primary residence to serve as a down payment for a home, compared to only 21% of Hispanic, 18% of Asian and 17% of Black Americans. “The residential housing market’s strong performance during the pandemic helped homeowners enjoy a significant increase in wealth via approximately $1 trillion in additional home equity over the last year,” said NAR Chief Economist Lawrence Yun. “However, as indicative of the K-shaped economic recovery, greater numbers of potential first-time homebuyers—many of whom are minorities—are feeling discouraged by disproportionate job losses. Essentially, they’re being priced out of owning a home because of rapidly rising home prices resulting from historically low housing inventory. For Black Americans, in general, the greater likelihood of having student loan debt, combined with lower household incomes and accrued savings when compared to the national average, adds to the challenge.” While NAR believes policy proposals such as the Biden administration’s first-time buyer tax credit of up to $15,000 would help address many of these underlying problems, RealTrends isn’t so sure. To learn why, listen to Steve Murray’s RealTrending Podcast: https:// www.realtrends.com/blog/tag/podcasts View NAR’s Snapshot of Race & Home Buying in America report here: https://www. nar.realtor/research-and-statistics/researchreports/a-snapshot-of-race-and-homebuyingin-america. This article reprinted with the permission of Real Trends Inc. Copyright 2021.

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