REALTOR® Magazine April May 2015 by Bakersfield Association of REALTORS®

A P R I L / M AY 2 01 5

INSIDE

Derek Sprague

‘30 Under ‘30

We’re celebrating Fair Housing with our

Newton reviews

Code of Ethics

Writing with SEO

How to Get Found

Arts

2015

Contest

Get them while they’re hot

Attracting Millenials

H O M E O W N E R S H I P

I S

T H E

1 D R E A M

BAKERSFIELD REALTOR® MAGAZINE

A M E R I C A N

Help in our fight to save lives! Enjoy a taste of wine from the Central Coast, savory food and a silent auction.

IT’S ALWAYS AN EVENING OF FUN!

Purchase your tickets today

APRIL 18 4 - 7 PM

only

4 pk $200

Purchase your tickets at:

The Bakersfield Association of REALTORS®

Motor City Lexus

M OTOR C IT Y LEXU S

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

REALTOR ACTION FUND ®

make a difference — CONTRIBUTE TODAY! M A K E Y O U R C O N T R I B U T I O N AT w w w . g o o . g l / a w n K x m 2

BAKERSFIELD REALTOR® MAGAZINE

CONTENTS

Bringing Home the Cure Our relay teams are champions of hope and life as they make a difference in the fight against cancer.

Teamwork, a technology trend Teams have always been more effective than going it alone, and technology has helped create an efficient operating model.

BAKERSFIELD REALTOR ® MAGAZINE

Welcome New Directors Ashley Weaver and Scott Knoeb sit on the board for 2015.

Standards of Professionalism A few tips to help you get familiar with professional courtesies while conducting your real estate business.

Animals and Fair Housing David Knoeb appointed to the Service Companion Animal Guidelines working group. See what they’re discussing.

18 20

ON THE COVER

April is fair housing month! Join us as we celebrate with our annual fair housing arts contest. See page 16 for more information.

Color tips for your home Remodeling powers of paint when used to emphasize a rooms best features or play down the flaws. Ground Cover We are in a drought, so here are a few low-maintenance lawn alternatives.

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

LETTER FROM THE PRESIDENT

“It takes many good deeds to build a good reputation, and only one bad one to lose it.” — Benjamin Franklin

SHERI ANTHES

2015 PRESIDENT eputation is an old word – more of a 1970’s concept. Yet, its value is as significant as ever today. It’s not just your identity, nor is it merely perception. Many factors can impact one’s reputation, both positively and negatively. We’ve all been warned of the importance of protecting your identity. In fact, there are products designed for that very purpose. The same can’t be said for “Reputation Protection”. If you’re famous, you may hire the services of a publicist; for the rest of us, our reputations lie solely in our own hands. There are multiple benefits to building and maintaining a solid reputation. 1. A good reputation represents a great marketing strategy. When I find service providers whose performance and work stand out, they become like gold to me. I use them repeatedly, recommend them to others, and willingly pay them what they’re worth.

2. A good reputation inspires others. We all need positive role models, even the best and brightest among us. When in question, a good reputation can come to your rescue, causing other members of your industry and network to speak out in your favor without you even knowing it. 4. A good reputation provides you a target at which to keep aiming. Sometimes you may feel you haven’t really earned your reputation; that in some respects, it’s better than you are. Let your good reputation serve as motivation for you to improve yourself and become as others see you.

BAKERSFIELD REALTOR® MAGAZINE

Our reputation represents the way others look at us and is critically important. However, even those who are secure with who they are, live in this social network and need a good reputation for practical purposes – income being chief among them. It’s hard to make a living if people think you’re unprofessional, unreliable, or dishonest. In an industry where repeat business and referrals are the foundation for success, reputation is an essential tool – a key element for business building, security and success. No one is offended when called a Professional; in fact, it’s considered a compliment. As REALTORS®, we live by a Code of Ethics. Through our grievance process, we hold each other accountable. Violations lead to disciplinary action, education mandates, and more. However, our Code of Ethics shouldn’t just be a vehicle for correcting bad behavior, but our Code should be embraced by each of us for establishing and maintaining our REALTOR® reputation. By embracing the Code in our business dealings as well as our personal interactions, we become better citizens and better REALTORS®. A reputation built on the Code of Ethics is one worth protecting. It was over 17 years ago that C.A.R. released Real Estate Is Our Life™. This was the first of many campaigns designed to educate and inform the consumer on what it means to be a REALTOR®. Since that time, C.A.R. has strategically and thoughtfully continued to build on our collective reputation. That first effort was a huge success; in fact, the ad campaign earned awards for its TV commercials and overall effectiveness. Most importantly, it worked, changing public opinion to a favorable and

positive opinion of our industry, most specifically the REALTOR® brand. The 2003 release of REALTOR® – The Most Important Title in Real Estate, set us apart by informing the consumer about the strict Code of Ethics subscribed to by each REALTOR®. Since that first hugely successful campaign in 1997, C.A.R. year after year continues to build on and maintain the REALTOR® reputation. Whether online, in print, radio or television, the message is focused and clear: It’s better to consult a REALTOR®. We are different, our reputations speak for themselves. Just as C.A.R. is ever cognizant of the media outlets and importance of each, the individual REALTOR® should be as equally diligent. As professionals, our success is tied to our public image and reputation. It is imperative that we monitor and control how we are portrayed in the social media world of Facebook, Twitter and Instagram. Take control of your Professional Reputation. Build a solid, ethical, respectable brand. Use the tools available through C.A.R. and our local Association, and always be the champions of your “Reputation Protection”. I’m very proud to be part of the Bakersfield Association of REALTORS®, a true reflection of all that is the REALTOR® brand. Our first few months have been full of positive and exciting changes. Along with Kevin Palla and Brian Tuttle, from the ranks of our YPN, Scott Knoeb and Ashley Weaver begin their journey as new Directors. The year is full of promise, and your 2015 Leadership Team is in place and ready to serve.

LETTER FROM THE CEO

Go North! As professionals, we are committed to a strong moral and ethical code.

LINDA JAY

CHIEF EXECUTIVE OFFICER

ho Cares Anyway!

We live and work in a very competitive world! Competition is truly a driving force… As REALTORS® we experience this reality every day! Competition can be a very healthy and powerful motivational force… inspiring us to strive for excellence by working harder, and being more creative to improve the quality and productivity of our performance. On the other hand, if our competition becomes a negative force, the results can be polarizing and counterproductive. The fear is that we may be enticed to take the somewhat cavalier approach of ‘me versus we’… ‘the desire to win at any cost’… or the willingness to waffle or compromise on our principles and values, that ultimately hinders our ability to work together effectively for the greater good. So, let’s bring it down to a personal level… is my/our competitiveness creating a positive or negative result? This year we celebrate our 110th year as one of Kern County’s largest and most influential trade organizations. The REALTOR® brand we proudly bear, is well-known as a symbol of professional

2015 OFFICERS President Sheri Anthes Coldwell Banker, Preferred — Ming

President-Elect Bill Redmond Watson Realty ERA

“

The things we say and do today can greatly impact our future… let’s make today count!

— Linda Jay

excellence and strong moral compass. So what is a moral compass? According to noted authors Fred Kiel, PH. D. and Doug Lennick, “A useful way to think about your ‘moral compass’ is to think of it like an ordinary compass with the true North, representing Integrity… ” Webster’s online dictionary states that finding true north is essential (non-negotiable) for accurate navigation. So for 110 years, our Code of Ethics, has been our true north. By becoming a member of the National Association of REALTORS® “we pledge to accept this standard as our own and observe its spirit in all of our activities, whether conducted personally, through associates or others, or via technological means, and to conduct our business in accordance with its tenets of competency, fairness and high integrity”. It is this code that has consistently guided us through the good times and the bad… the best and the worst of

Vice President Midge Jimerson Boydstun Realty Co. Inc.

Immediate Past President Theresa Olson Magic Real Estate

Secretary/Treasurer Athena Collup Miramar International — Mill Rock

Chief Executive Officer - Linda Jay

economic cycles, always striving to do what is right and in the best interest of our industry, our members, and the consumers they serve. By carrying the REALTOR® brand, we are affirming this statement about ourselves, that we are professionals committed to a strong moral and ethical code. The question is: how we are perceived by our colleagues? Our community? As an Association, are we committed to remaining steadfast in our adherence to the moral and ethical principles of the REALTOR® brand? Are we individually and corporately committed to putting those principles into action in our day-to-day business practices? There are some that would say, “Who cares, anyway? I’m just doing what I can to make a living.” The truth is… If we don’t… who will? More importantly, it needs to begin with me… if not… how can I have that expectation of others? The things we say and do today can greatly impact our future… let’s make today count!

2015 DIRECTORS Pam Epps Miramar International — Truxtun

Brian Tuttle Coldwell Banker Preferred– Coffee

David Gay Tobias Real Estate

Wayland Louie RE/MAX Magic Golden Empire

Derek Sprague Sprague Real Estate Group

Ashley Weaver Karpe Real Estate Scott Knoeb Frontier Real Estate Services

Kevin Palla Broker BAKERSFIELD REALTOR

MAGAZINE

embers of The A Team! Collectively, these individuals form a group of loyal, hard-working Affiliate members who serve the Association in a variety of ways. Over a long period of time, they consistently: n Attend activities and events such as 1st Thursday Brew & Breakfast. n Volunteer their time and energy to support the Association’s programs and activities. n Promote Association activities to other members. n Contribute raffle items and door prizes, as well as sponsor various programs and special events. For all their efforts, A Team Members earn these opportunities: n Featured in all issues of Bakersfield REALTOR® Magazine. n Complimentary advertising through The A Team contact list on the Association website. n Complimentary recognition on the Association Reception TV. n First opportunity to sponsor key events with sponsor banner. If you’re interested in becoming a member of The A Team contact Michele Cooper, our Affiliate Chair!

THEATEAM SHERYL GALLION

MONA CIMENTAL

sgallion@ticortitle.com

mcimental@propertyid.com www.propertyid.com

Ticor Title 661.342.7802

Property I.D. 661.220.0159

LISA HOOK

BARBARA WELLS

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

bwells@sjvalleymortgage.com

Prospect Mortgage 661.301.5472

San Joaquin Valley Mortgage 661.703.2227

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

MIKE GEORGE

Agape Mortgage 661.324.2427

mikegeorge@agapemtgco.com www.agapemtgco.com

ASHLEY WEAVER

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

Michele Cooper Affiliate Chair Chevron Valley Credit Union

mcooper@ chevronvalleycu.com 661.900.2358

SUZI BEATY

Fidelity National Home Warranty 661.477.3906

suzi.beaty@fnf.com

JANETTE RAMSEY

Personal Express Insurance 661.328.9250

janette@jramseyinsurance.com PersonalExpressNorthwest.com

You can be a part of The A Team too! Call Michele Cooper at 661.900.2358 for more information

BAKERSFIELD REALTOR® MAGAZINE

NAR Recognizes One of Our Own

Derek Sprague Makes the list for REALTOR® Magazine’s 2015 Class of ‘30 Under 30’

he competition was fierce for Derek Sprague, but REALTOR® Magazine announced him as one of the ‘30 Under 30’ Class of 2015.

What is NAR’s REALTOR® Magazine ‘30 Under 30’?

A group of rising young REALTORS®, ’30 Under 30’ is taking advantage of renewed optimism in housing and commercial real estate markets to champion their clients’ buying, selling and investing goals and advance their real estate careers. This year’s REALTOR® Magazine ‘30 Under 30’ honorees are hardworking young professionals who understand the importance of building strong customer and community relationships. They are professionals who stand out from the crowd, many having sharpened their skills during the toughest years of the Great Recession to emerge with an unmatched work ethic and unyielding dedication to their clients. They come from all parts of the country and their specialties are diverse. They are salespeople, team members, team leaders, and company owners. As a group, the 30 practitioners demonstrate some of the best traits the real estate industry has to offer.

Who is Derek Sprague?

Sprague is Vice-President and Broker of Sprague Real Estate Group, Inc., in Bakersfield, CA, focusing on sales and leasing

of real property investments across California’s Central Valley. Derek has represented small businesses and national firms in successful transactions of a variety of property types for over a decade. He has earned the Certified Commercial Investment Member (CCIM) designation, which is generally awarded to recognized experts who have demonstrated their proficiency of the commercial and investment real estate industry. Derek has advanced his passion for real estate by representing the industry on boards and committees at a local, state, and national level. Sprague’s expertise is in Industrial (OfficeWarehouse, Distribution, Manufacturing & Land), Land (Raw, Entitled, & Agricultural),

Office (Medical, Professional, Non-Profit & Specialty Offices), and Retail (Free-Standing, Strip Center, & Grocery-Anchored). Derek holds a Bachelor of Science Degree in Business Administration from California State University of Bakersfield (CSUB), with a Marketing concentration, and holds his license as a California Real Estate Broker. He is currently on the Board of Directors for the California Association of REALTORS® and the Bakersfield Association of REALTORS®. He’s also a member of the National Association of REALTORS® and the Commercial Real Estate Research Advisory Board. Sprague also serves as a Director Chair (DC) for the Bakersfield Association of REALTORS® Technology Committee, and Region Liaison of the Transaction and Regulatory Committee. Derek recently held positions on the Research Committee, Land Use and Environmental Committee, and as 2013 Chair of our Association’s Commercial Investment Committee. He’s also a member of the Greater Bakersfield Chamber of Commerce, and is a graduate of the Kern Leaders Academy. “It’s an honor to be nominated as one of the top 50 [nominations], but even more so to be given the honor as one of the ‘30 Under 30’ honorees”, says Derek. And, he’s one of our own! Congratulations, Derek Sprague!

Election ballots emailed to all REALTOR® members on May 18th Look for it in your email box!

SAVE THE DATES:

Friday, June 12, 5pm – deadline for submission of election ballots

Wednesday, June 24, 2015, 10am - Election results released at the Association’s Annual Meeting n

For more information contact Linda@bakersfieldrealtor.org BAKERSFIELD REALTOR® MAGAZINE

Welcome, New Directors!

Ashley Weaver and Scott Knoeb sit on board for 2015

s a result of office realignments involving two of our Directors, changes were required in order to maintain compliance with our Association Bylaws. As a result, Ashley Weaver and Scott Knoeb were each elected by the Board of Directors to serve a one-year term to fill two vacated seats. Weaver and Knoeb are often seen giving generously of their time to support of programs and services provided by the Association, but if you haven’t met them, here are a few highlights about each of them.

been on a committee every year for the past 6 years, which has given him the experience and knowledge to fully take on the challenges of our Board. Scott is currently the Vice Chair of our Membership Orientation Committee. Following in his father, David’s, footsteps, Knoeb works as a REALTOR® for the family’s business, Frontier Real Estate Services. He currently serves on the 2015 YPN Advisory and Technology Committees. He also serves as Vice Chair for the Membership Development/ Orientation Committee.

SCOTT KNOEB

ASHLEY WEAVER

After attending Legislative Day in Sacramento last year, Knoeb realized what it truly takes to protect our industry, our professional career and the rights of private property owners. Scott Knoeb This experience has inspired him to take his involvement in the Board of REALTORS® to the next level. He’s

Weaver was born and raised in Bakersfield, where she lives with you husband of 8 years and two beautiful children, ages 6 and 4. Motherhood keeps Ashley active, along with her passion for real estate and uncompromising quest for knowledge of our industry. After attending West High School and Bakersfield College, Ashley completed 2 additional years of certification and licensing in Cosmetology. In 2004, an opportunity arose within Kern Schools Federal Credit Union where she assisted with the Foreclosure and Short Sale departments, and helped assist loan officers with processing mortgage loans. Her growing curiosity for real estate led her

to Karpe Real Estate, where she has thrived since 2012. Ashley quickly obtained her Real Estate License in March of 2013, and followed that with both National and State NMLS Ashley Weaver licensing in 2014. In 2013, Ashley joined the Association of REALTORS® and immediately became active on several committees, including: Community Spirit, 1st Thursday Brew, Golf, and Harvest. After serving on various committees, she served as the Chair of the 1st Thursday Brew committee in 2013, where she brought fresh ideas for the meetings, leading to record attendance and participation. It is Ashley’s love for real estate combined with her passion for helping people that gives her the ambition and excitement to be a Director. Congratulations to both Ashley Weaver and Scott Knoeb for their seats on the 2015 Board of Directors.

Workforce Development Program Jeanne Radsick represents REALTORS® to bring private and public sectors together

JEANNE RADSICK |TOBIAS REAL ESTATE

he Workforce Development Program began as a joint program hosted by Supervisor Leticia Perez and City Councilman Ken Weir. The goal of the program is to bring public and private sectors together to discuss ways to improve workforce quality. With so many industry clusters in Kern County, what can we do to ensure that the workforce sets the standard for excellence, which in turn will help continue our community growth? There were many presentations given from the private sector, and from the various school districts that are charged with educating our

BAKERSFIELD REALTOR® MAGAZINE

future workforce. We also heard from those in the employment field about what they might look for in their hiring practices. What our participation discussed was not only how urban Jeanne Radsick sprawl might contribute to longer commutes and less available transportation, but what housing

does for the stabilization of our communities. It is important to consider affordable housing finance and potential grants for down payment assistance. Our workforce needs to have housing that they can live in with confidence and stability. The continuance of this program is being refined into several teams so that we can strategize as to how to integrate the various components for an overall improvement. It is not enough to train our youth in school for programs that they can utilize in their jobs (education) without the ability to show up for those jobs (transportation), or where they may be able to sleep at night (housing).

Code of Ethics Going strong at 102 years

JOE NEWTON | OMBUDSMAN

his year, the NAR Code of Ethics is 102 years old. The Code continues to be a living and dynamic statement that has been updated annually to guide REALTORS® in their daily professional life. Every article is based on the original vision of its authors to better serve the public by using the Code as a means to achieve that goal. The Code of Ethics addresses a REALTOR’S® duties and obligations to clients and customers, the public and other REALTORS®. The Code consists of 17 points which outline the following expectations: A REALTOR’S® first duty is to promote the interests of his/her client, and to treat all parties honestly.

REALTORS® shall avoid concealment or misrepresentation of pertinent information in relation to the property or the transaction, and shall not disclose confidential information.

REALTORS® shall cooperate with other brokers, except when the cooperation is not in the best interests of their client. Cooperation does not include compensation.

REALTORS® must disclose any personal share or interest in a property involved in a transaction. When buying or selling, they must make it clear that they are representing themselves, not a client.

REALTORS® shall avoid conflicts of interest, and must make their interest known to all parties if they have a personal interest in services they are providing to clients.

REALTORS® shall not accept a commission, rebate, fee, or other financial benefit without disclosing it to the client.

REALTORS® cannot be compensated by more than one party in a transaction without making it known and agreeable to all parties.

11.

REALTORS® cannot provide services outside of their field of competence without disclosing it to their client.

12.

REALTORS® must adhere to truth in advertising and marketing, and must disclose their professional status in advertising.

13.

REALTORS® shall not give legal advice, and shall advise clients to seek legal counsel, when appropriate.

14.

REALTORS® shall make full disclosure of all pertinent facts, if charged with unethical practice.

15. Joe Newton

REALTORS® must maintain a special account for escrows, client monies, trust funds and the like. REALTORS® must assure that contracts are in clear, understandable written language, and explained at the time of signing or initialing.

10.

REALTORS® must give equal professional service to all clients and customers irrespective of race, color, religion, gender, handicap, familial status, national origin, or sexual orientation.

REALTORS® shall not make false or misleading statements about their competitors or businesses.

16.

REALTORS® shall not work outside of the exclusive agreements with their clients.

17.

REALTORS® agree to arbitration in the case of violation. As you can see, a REALTOR® is more than a real estate agent. REALTORS® receive training in ethics for both their dealings with the public and with the real estate community. The Code of Ethics is a guide for REALTORS® which shows the public the level of commitment, education and dedication to their profession possessed by each member of NAR.

2015 OMBUDSMAN REPORT (JANUARY - MARCH) 136 calls were received by our Ombudsman n 2 anonymous calls n

10 calls requesting information on deposits n 53 calls were n

grievance/ethics complaints against agents that were resolved

2 grievance/ethics packages mailed out to complaining party n 59 calls requesting n

information on real estate procedures n 5 cases referred to Association mediation

5 Tehachapi calls

BAKERSFIELD REALTOR® MAGAZINE

REALTORS® WHO MAKE THEIR VOTE COUNT… JOIN THE R.GOV COMMITTEE NOW!

The Neighborhoods

that Produce Presidents

ealtyTrac analyzed the neighborhood data behind the most recent presidents’ childhood homes to see how their childhood homes stacked up against each other. We looked at various neighborhood facts, including local crime, unemployment, environmental hazards, median sales prices, local schools, and homes in the area with negative equity. What we found was that each president’s childhood home was diverse. From Former President Clinton’s humble beginnings in Hope, Arkansas, where the local crime grade

is a D+, to President Obama’s childhood home in a more affluent neighborhood in Hawaii, where local school ratings are an A+, to former President Bush’s childhood home in Midland, Texas, where local school scores are rated a D+. Finally, we looked at the neighborhood surrounding the White House and found some interesting stats surrounding this famed address and the home of the current President. Did you know there are 653 environmental hazards within two miles of the White House? Find out more below.

The White House

City: Washington D.C. Local Crime: CUnemployment: 7% Environmental Hazards: 653 found within 2 miles Criminal & Sex Offenders: 99 within 2 miles Median Sales Price (October 2014): $475,000 Local Schools: B+ Homes with Negative Equity: 11.15%

Former President

City: Plains, Georgia Local Crime: A Unemployment: 9.7% Environmental Hazards: 0 found within 2 miles Criminal & Sex Offenders: 0 within 2 miles Median Sales Price (October 2014): $55,000 Local Schools: C Homes with Negative Equity: N/A

City: Milton, Massachusetts Local Crime: AUnemployment: 4.6% Environmental Hazards: 254 found within 2 miles Criminal & Sex Offenders: 43 within 2 miles Median Sales Price (October 2014): $497,000 Local Schools: B+ Homes with Negative Equity: 4.19%

City: Dixon, Illinois Local Crime: B Unemployment: 6.2% Environmental Hazards: 114 found within 2 miles Criminal & Sex Offenders: 33 within 2 miles Median Sales Price (October 2014): $84,500 Local Schools: C Homes with Negative Equity: 7.69%

Jimmy Carter’s childhood home

George W. H. Bush’s childhood home

Ronald Reagan’s childhood home

Former President

President

City: Midland, Texas Local Crime: B Unemployment: 2.2% Environmental Hazards: 201 found within 2 miles Criminal & Sex Offenders: 110 within 2 miles Median Sales Price (October 2014): $90,000 Local Schools: D+ Homes with Negative Equity: 5.67%

City: Hope, Arkansas Local Crime: D+ Unemployment: 6.7% Environmental Hazards: 69 found within 2 miles Criminal & Sex Offenders: 7 within 2 miles Median Sales Price (October 2014): N/A Local Schools: C Homes with Negative Equity: 7.69%

City: Honolulu, Hawaii Local Crime: B Unemployment: 3.8% Environmental Hazards: 10 within 2 miles Criminal & Sex Offenders: 11 within in 2 miles Median Sales Price (October 2014): $797,000 Local Schools: A+ Homes with Negative Equity: 5.98%

George W. Bush’s childhood home

BAKERSFIELD REALTOR® MAGAZINE

Bill Clinton’s childhood home

Barack Obama’s childhood home

Professional courtesies for conducting business…

Standards of Professionalism

NATIONAL ASSOCIATION OF REALTORS®

hile the Code of Ethics and Standards of Practice of the National Association of REALTORS® establish objective, enforceable ethical standards governing the professional conduct of REALTORS®, it does not address issues of courtesy or etiquette. Based on input from many sources, the Professional Conduct Working Group of the Professional Standards Committee developed the following list of professional courtesies for use by REALTORS® on a voluntary basis. This list is not all-inclusive, and may be supplemented by local custom and practice. Also available: A Pathway to Professional Conduct, a video which articulates key concepts and courtesies.

I. Respect for the Public n Follow

the “Golden Rule”: Do unto others as you would have them do unto you. n Respond

promptly to inquiries and requests for information. n Schedule appointments

and showings as far in advance as possible. n Call

if you are delayed or must cancel an appointment or showing. n If

a prospective buyer decides not to view an occupied home, promptly explain the situation to the listing broker or the occupant. n Communicate

fashion.

with all parties in a timely

n When

entering a property, ensure that unexpected situations, such as pets, are handled appropriately. n Leave your

business card, if not prohibited by local rules. n Never criticize

the occupant.

occupants are home during showings, ask their permission before using the telephone or bathroom. n Encourage

the clients of other brokers to direct questions to their agent or representative. n Communicate

clearly; don’t use jargon or slang that may not be readily understood.

you found it, unless instructed otherwise. n Use

sidewalks; if weather is bad, take off shoes and boots before entering the home. n Respect

sellers’ instructions about photographing or videographing the interior or exterior of their property.

III. Respect for Peers

aware of and respect cultural differences.

n Identify your

n Show

n Respond

n Be

courtesy and respect to everyone.

aware of—and meet—all deadlines.

n Promise only

what you can deliver—and keep your promises. n Identify your

REALTOR® and your professional status in contacts with the public. n Do

not tell people what you think—tell them what you know.

II. Respect for Property

REALTOR® and professional status in all contacts with other REALTORS®. to other agents’ calls, faxes, and e-mails promptly and courteously. n Be

aware that large electronic files with attachments or lengthy faxes may be a burden on recipients. n Notify

the listing broker if there appears to be inaccurate information on the listing. n Share important

information about a property, including the presence of pets, security systems, and whether sellers will be present during the showing.

n Be

responsible for everyone you allow to enter listed property.

n Show

n Never allow

buyers to enter listed property unaccompanied.

n Avoid

n When

showing property, keep all members of the group together.

n Do

n Never allow

unaccompanied access to property without permission.

n Return keys

n Enter

showings.

property only with permission even if you have a lockbox key or combination. n When

the occupant is absent, leave the property as you found it (lights, heating, cooling, drapes, etc.). If you think something is amiss (e.g., vandalism), contact the listing broker immediately.

courtesy, trust, and respect to other real estate professionals. the inappropriate use of endearments or other denigrating language. not prospect at other REALTORS®’ open houses or similar events. n Carefully

promptly.

replace keys in the lockbox after

n To

be successful in the business, mutual respect is essential. n Real

estate is a reputation business. What you do today may affect your reputation— and business—for years to come.

n Be

considerate of the seller’s property. Do not allow anyone to eat, drink, smoke, dispose of trash, use bathing or sleeping facilities, or bring pets. Leave the house as

property in the presence of

n Inform occupants

after showings.

n If

that you are leaving

n When

showing an occupied home, always ring the doorbell or knock—and announce yourself loudly before entering. Knock and announce yourself loudly before entering any closed room. n Present

a professional appearance at all times; dress appropriately and drive a clean car. BAKERSFIELD REALTOR® MAGAZINE

The Code is your business Ethical dilemmas crop up daily. Here’s how to avoid running afoul of five of the most common REALTORS® Code of Ethics complaints.

GRAHAM WOOD, BRUCE AYDT |NAR

orking in real estate comes with its fair share of irritations. Agents who don’t return calls in a timely manner, or clients who make inappropriate demands can be frustrating, to say the least. But discerning when difficult behavior crosses the ethical line can sometimes be tricky—whether it pertains to your dealings with other REALTORS®, clients, or the general public. To help you distinguish actual infractions from misunderstandings or simply poor manners, we look at five real-life business dilemmas and describe how the REALTORS® Code of Ethics applies.

Disclosing Multiple Offers It’s heartbreaking to tell buyer clients they’ve been outbid when you didn’t even know there were other offers on the table. You may feel as if you’ve been wronged — but is it time to call your association’s grievance committee? Not necessarily.

BAKERSFIELD REALTOR® MAGAZINE

Karen, an agent in West Palm Beach, Fla., blamed the loss of a deal last year on a listing agent who didn’t disclose competing offers until the eleventh hour. Karen, who asked not to be fully identified because of the sensitivity of the matter, submitted her buyer’s offer and received a preliminary acceptance from the seller. (Such an acceptance is not binding as that of a signed purchase contract.) The buyer even had a home inspection done. But when pressed to move forward on the deal, the listing agent said the seller was considering other offers. “The listing agent had previously told me she was just waiting for the seller to sign the official paperwork [for the buyer’s offer],” Karen says. “At no point did she say that we didn’t have an executed offer. She never said anything about other offers.” Karen says she believes the listing agent’s lack of candor cost her the deal because her client missed out on the opportunity to

increase the offer. However, failure to disclose other offers isn’t automatically a violation of the Code. What the Code says (Article 1, Standards of Practice 1-15 and SOP 1-13(5)): Two conditions must be met before a listing agent has any duty to disclose multiple offers: The seller must grant permission to disclose such information, and the buyer or cooperating agent must ask for the disclosure. The same applies to revealing who obtained the offers— whether they were obtained by the listing agent, another agent with the listing agent’s firm, or a cooperating broker. So, if Karen didn’t pose the question to the listing agent, or if the seller didn’t grant the listing agent permission to disclose, the listing agent did nothing wrong. The lesson is this: Cooperating agents should always ask the listing agent if other offers exist and, if so, who procured them. They should also inform buyers that their

offer and its terms are not confidential and can be disclosed by a seller to other parties. The exception: A confidentiality agreement between a buyer and seller—entered into before presenting the buyer’s offer — would obligate a seller not to disclose the buyer’s offer. While rare in residential real estate, such agreements are common in commercial transactions.

Transparency in Advertising

Social media tools may appear to provide a more informal way of presenting listing data, but ads posted to Facebook are subject to the same advertising standards as those that appear in print. When putting listings on social platforms, REALTORS® have a responsibility to identify themselves as real estate professionals and to show their company affiliation. Brian Brooker, broker-associate at Carrington Real Estate Services in Boca Raton, Fla., spotted some listing ads on Facebook that gave him pause. They were posted by an agent he had long known from another state. What troubled him wasn’t the content but rather her failure to identify her brokerage. “I had just finished broker classes and passed my broker exam, so the advertisement without the company name stuck out like a sore thumb,” Brooker says. Many agents assume that displaying a picture of their brokerage on the backdrop of their Facebook business page takes care of Code compliance, Brooker adds. But that alone is not sufficient to meet the standard: Backdrop images don’t show up in Facebook newsfeeds, so individual postings must include the brokerage name. This wasn’t the first time Brooker had seen this type of Code violation, but he chose not to get involved. “I didn’t say anything [to the

agent] because the last time I said something to someone, they asked me sarcastically if I was the real estate police,” he says. “And I thought, you know what, I’m not.” What the Code says (Article 12): REALTORS® must present a “true picture” in their advertising. No matter the medium, they must properly identify themselves as REALTORS®, licensees, and real estate professionals and identify their company name. Common posts such as “Just listed, 123 Sunrise Drive” with a description of the listing do not alone make it clear that the person posting is a real estate professional. SOP 12-5 requires that any advertisement of real estate services or of listed property must disclose the name of the REALTOR’s® firm “in a reasonable and readily apparent manner.” Exceptions exist for media with “abbreviated” formats, such as thumbnails, text messages, and tweets. In these cases, the REALTOR® is not required to include the company name in the actual abbreviated format, as long as there is a link back to a display of the REALTOR’s® full information, including company name.

Disclosure of Property Defects Sometimes, sellers would rather not disclose significant problems with a property, and it may seem that the responsibility to act in a client’s best interest gives listing agents a reason to go along with the pretense. However, the Code prohibits REALTORS® from misleading buyers on the material facts about a home. If an agent knows about a property defect, disclosure is necessary regardless of the seller’s wishes. Sherry Hutchens, a sales associate with Dudum Real Estate Group in Walnut Creek, Calif., recognized this when one of her sellers tried to hide a termite problem with her home. Despite the termite rods—filled with chemicals—running from the foundation and along the stucco exterior of the house, the seller wanted to make it appear as though there was never a problem. “[The seller] called me one day and asked me to come to the house with my digital

What’s the penalty for a Code violation?

The maximum fine for an ethics violation is $15,000, but it’s up to each association’s hearing panel to decide what an appropriate sanction is for each case. In general, if the violation is considered to be relatively minor, such as an advertising mistake that did not cause significant harm and was mainly due to a lack of knowledge of the Code, a fine of $500 or less may be imposed. But if the violation is very serious, such as an escrow account problem that caused substantial harm and was knowingly committed, then a fine at the top end of the $15,000 maximum may be recommended by the panel.

camera,” Hutchens recalls. “When I arrived, I found her on the side of the house wearing rubber gloves and scrubbing the termite rods with steel wool pads.” The seller requested that Hutchens take photos of the cleaned rods to “prove that the termite inspector was wrong” about the home’s current condition. Hutchens rightfully refused—and the seller fired her. The loss of the client was a small price to pay compared to the sanctions Hutchens could have faced had she done what the seller asked. That breach of the Code of Ethics would likely have violated the license law, too, and it could have put her real estate license in jeopardy, triggering legal action by a duped buyer. What the Code says (Article 2): “Avoid exaggeration, misrepresentation, and concealment of pertinent” facts about the property or the transaction. Typical scenarios that come up under Article 2 involve a seller who does not want to disclose a matter of significance about the home. To avoid the risk of a Code violation and possible legal action that may result from a seller’s failure to disclose, REALTORS® should err on the side of disclosure. Similarly concerning is when a seller refuses to disclose an issue because it has been “fixed.” The problem here is that

Continued on page 28

BAKERSFIELD REALTOR® MAGAZINE

Giving it Teeth GRAHAM WOOD | NAR

It’s up to state and local boards to make sure members adhere to the Code.

The REALTORS® Code of Ethics sets clear professional standards for the real estate industry, but how are its principles enforced? Local and state REALTOR® associations are primarily responsible for making sure members adhere to the Code, and some have developed distinctive methods for addressing infractions. Here are three approaches to Code enforcement.

Making Education a Priority The Northeast Florida Association of REALTORS® monitors ethics training closely. Members who haven’t completed Code of Ethics course requirements within a designated period receive notifications from the association six months before the deadline. Two months from the deadline, brokers are sent lists of licensees at their firm who haven’t completed COE requirements. Once the deadline passes, members who haven’t met requirements are immediately suspended from the association, and all their member services are terminated. They’re given one more chance to complete COE requirements, and

if they do, they are reinstated, says NEFAR communications director Melanie Green.

option to request a full hearing on the complaint’s merits.

Streamlining Complaints

No Running from Sanctions

Several associations, including the Illinois Association of REALTORS®, have introduced an Ethics Citation Program, which gives members an easier, faster way to file ethics complaints. On IAR’s website, complainants can fill out a form, upload documented evidence of a violation, and submit their complaint online. The program is meant to encourage more members to file complaints and to resolve them more quickly, explains Matt Difanis, IAR’s 2014 Chairman of Government Affairs and Public Policy Member Involvement Group. The citation initiative is limited to certain Articles in the Code that lend themselves to prima facie evidence—evidence that, alone, would prove a violation. An ethics citation panel reviews each complaint, and if a violation is substantiated by the evidence, the respondent receives a copy of the complaint and a fine. The respondent maintains the

Ethics violators will have a much harder time dodging complaints in California. REALTORS® in the Golden State often belong to two or more local associations, but the boards haven’t necessarily communicated with one another when a member has been sanctioned or suspended. That has allowed a member suspended by one board to continue receiving benefits from another board. Under a California Association of REALTORS® pilot program, launched in March 2012, a member’s suspension by one local association for failure to comply with sanctions takes effect statewide after a C.A.R. review. That means that a REALTOR® loses membership status with all associations in the state and cannot reapply to any of them until the matter is resolved, says C.A.R. General Counsel June Barlow. To date, no member has received a statewide suspension.

You can’t afford not to advertise with the Bakersfield Association of REALTORS®

Hit Your Target Market!

Start promoting your company today

The Bakersfield Association of REALTORS® offers many ways for you to actively communicate your company’s brand and marketing message directly to our members. We continually host a variety of

BAKERSFIELD REALTOR® MAGAZINE

activities, classes, and events. Reach your target market in effective and affordable ways.

n Networking

Activities n Community Outreach n Special Events

SPONSORSHIP OPPORTUNITIES: PRICES RANGE PER ACTIVITY n Newsletter n Member and public websites n Educational Classes

FOR ADVERTISING INFORMATION PLEASE CONTACT:

Call Carol Duran now!

661-635-2307

FAIR HOUSING Equal professional service to everyone in their search for real property

April Is Fair Housing Month NATIONAL ASSOCIATION OF REALTORS®

April 2015 marks the 47th anniversary of the 1968 landmark Fair Housing Act. Each year, REALTORS® recognize the significance of this event and reconfirm their commitment to upholding fair housing laws, as well as our commitment to offering equal professional service to all in their search for real property. Fair Housing: Beyond the Transaction Taking your effort to the next level for stronger neighborhoods and more stable communities. In our industry, there’s naturally a signiﬁcant focus on the buying and selling of property. It’s what real estate professionals do! But when it comes to fair housing, the transaction itself is only one important aspect of a much bigger issue. Until inequity and under-representation no longer stand in the way of housing opportunity and stable home values where they’re needed most — there’s plenty more work to be done. Through active engagement, REALTORS® can effect positive, big-picture change. No one understands community better than REALTORS®. In response to the eye-opening

events in Ferguson, Missouri last year, and the ensuing inquiry into racial and economic imbalances across the country, the St. Louis Association of REALTORS® found a positive role leading the discussion with regard to community. It developed four principles that exemplify the REALTOR® commitment to fair housing, and serve as a sensible model for all of us concerned with creating inclusive communities: Diverse Neighborhoods REALTORS® are already the best advocates for inclusive communities because they understand the value of diverse neighborhoods, a key tenet of fair housing. Diversity in REALTOR® Leadership By actively engaging minority members in leadership roles, state and local associations will beneﬁt from governing bodies that accurately reﬂect their membership and bring to the table a heightened sensitivity to race issues. Diversity Among Community Leadership REALTORS® have the power to help elect candidates that are passionate about fair housing. The REALTOR® Party exists to share Continued on page 16

Fair Housing Act NAR opposes discrimination in housing based on race, color, religion, gender, handicap, familial status, sexual orientation, gender identity, and national origin. This policy is embodied in NAR’s Code of Ethics. NAR also authorizes sanctions in response to a finding that a member has violated any fair housing law, including local and state laws which prohibit discrimination based on sexual orientation or gender identity. NAR policy is to support equal opportunity on the basis of sexual orientation and gender identity, and the NAR Code of Ethics was amended in 2010 and 2013 to include this updated policy in the Code of Ethics.

BAKERSFIELD REALTOR® MAGAZINE

2015 Arts Contest Continued from page 15

its resources and expertise with state and local associations who want to give a leg-up to the best candidates for the job: those who will promote and create broader housing opportunities. Land Use and Neighborhood Revitalization Policies That Invite and Sustain Diversity The REALTOR® Party has numerous programs designed to address aspects of fair housing, from land use policy to neighborhood revitalization. Whether you’re starting small or thinking big, sprucing up a single city block or re-drafting zoning law to promote diverse neighborhoods, the REALTOR® Party is there for you. It’s time to take it beyond the transaction. Now, more than ever, consider how you and your fellow REALTORS® can take the lead in creating a reality of fair housing for all.

Fair Housing is celebrated locally through our Arts Contest Years ago, the Bakersfield Association of REALTORS® wanted to educate children about the Fair Housing Act. Leaders of the Association came together to form an Equal

REALTOR® FAIR HOUSING DECLARATION:

Help us beat our 2014 Numbers…

n Provide

Number of entries: 281 Number of Sponsors: 11 Total Monetary Sponsorship: $3,365 Number of Selected Award Recipients: 50

Sponsor or participate in the Arts Contest Today! 661-635-2300 Opportunity Committee. Members wanted to create something that children could relate to – the outcome was the Fair Housing Fair Housing Arts Contest This year’s arts contest theme is “Opening Doors to Fair Housing.” Rules and guidelines have been mailed to over 300 local school principals. All school-age children are eligible to submit artwork. Middle and high school students are especially encouraged to participate. The Fair Housing Arts Contest is designed to create community education for children, parents and teachers.

equal professional service without regard to the race, color, religion, gender, handicap, familial status, national origin or sexual orientation of any prospective client, customer, or of the residents of any community. n Keep

informed about fair housing law and practices, improving my clients’ and customers’ opportunities and my business. n Develop

advertising which indicates that everyone is welcome and no one is excluded - expanding my clients’ and customers’ opportunities to see, buy, or lease property. n Inform

my clients and customers about their rights and responsibilities under the fair housing laws by providing brochures and other information. n Document

my efforts to provide professional service, which will assist me in becoming a more responsive and successful REALTOR®. n Refuse

to tolerate non-compliance.

n Learn

about those who are different from me, and celebrate those differences. n Take

a positive approach to fair housing practices and aspire to follow the spirit as well as the letter of the law. n Develop

and implement fair housing practices for my firm to carry out the spirit of this declaration.

16 BAKERSFIELD REALTOR MAGAZINE CALL NOW T O ®

HEL P

C E L E B R AT E

FA IR

H O U S IN G

MON TH

Animals and Fair Housing

David Knoeb Appointed to the Service/Companion Animal Guidelines Working Group!

n February 26, 2015, the Chair of the C.A.R. Investment Housing Committee, Tica O’Neill, appointed David Knoeb as a member of the “Service/Companion Animal Guidelines Working Group” to propose draft regulations released by the Department of Fair Employment and Housing in January 2015. The Working Group was appointed by the Investment Housing Committee during the winter meeting of 2015 C.A.R. Board of Directors Meeting. The Working Group is to evaluate and make recommendations to the committee regarding the Department of Fair Employment and Housing (DFEH) draft regulations which seek to permit disabled tenants, as a “reasonable accommodation,” to request permission to bring “assistive animals” (e.g., service dog, guide dog, etc.) and/or “companion animals” (i.e., any animal that provides emotional or other support) into a rental unit. SERVICE ANIMALS: Dogs are the most common service animals, assisting people in many different ways since at least 1927. [1] Other animals such as monkeys, birds and horses have also been documented. In places of public accommodation in the United States, only dogs (and in some cases miniature horses) are legally considered service animals. COMPANION ANIMAL: A pet (or companion animal) is an animal kept primarily for a person’s company or protection. SOURCE: WIKIPEDIA

Topics discussed during the meeting included: 1. Should C.A.R. seek to establish policies relating to services/ companion animal guidelines for residential rental housing? 2. Is it necessary to limit what constitutes a service/ companion animal?

David Knoeb Frontier Real Estate Services

3. Is it necessary to clarify that tenants may be evicted if the animal poses a threat to other tenants or to the physical condition of the property? 4. Should the requirements surrounding a “landlord’s hardship” be clarified and extended to instances where the accommodation would jeopardize a landlord’s ability to obtain real property insurance (i.e., permit the denial of animals like Pit Bulls, Rottweilers, etc.)? What about denying accommodations for endangered or illegal species (i.e., ferrets, elephants, snakes, etc.)? 5. Is requiring service/ companion animals to comply with all state and local requirements (i.e., pet licensing, vaccinations, and/or sterilization) a good policy?

6. Is it a good policy to require a guideline permitting a landlord to request tenants to provide a prescription letter from a physician or mental health care provider verifying the disability and the need for the animal? 7. Should the number of animals that could be identified as “companion animals” be limited. The entire team worked together, deliberating every question on the agenda, discussing the pros and cons, opening dialogue and sharing experiences regarding each issue. Knoeb expressed pride and appreciation for being appointed to this working group, stating that ‘every member was professional and engaging.’ Work Group Chair, Phil Schaefer; Legislative Advocates (C.A.R. Staff), Jennifer Svec and David Milton; Working Group Members, James Dill, Dennis Goldstein, Kathleen Oliver and Irma Vargas; and, Investment Housing Committee Chair, Tica O’Neill. This is another illustration of C.A.R. and REALTORS® working together to protect our REALTOR® business and private property rights. Legislative Advocates Jennifer Svec and David Milton continue to work on the proposed regulations for the Working Group to review. Their goal is to have the proposed regulations ready for the Investment Housing Committee to approve and forward to the C.A.R. Board of Directors for final approval during our meeting in Sacramento April 21-25, 2015.

“

As member of the Bakersfield Association of REALTORS®, please remember to pay the true cost of doing business each year. A contribution of $148 per year is a small price to pay to protect our REALTOR® business and private property rights.

— David Knoeb

Frontier Real Estate Services

BAKERSFIELD REALTOR® MAGAZINE

design for living

COLOR TIPS FOR YOUR HOME

How to Pick Paint Colors

Paint has remodeling power when you use it to emphasize a room’s best features or play down the flaws.

JAN SOULTS WALKER | HOUSELOGIC

space,” says Minneapolis architect Petra

aint has remodeling power when

Schwartze of TEA2 Architects. “As you

you use it to emphasize a room’s best

choose your paint, think about what the

features or play down the flaws.

experience in the room should be.”

Every home suffers a few negatives, but

not every solution requires pricey structural changes. Paint is an often-overlooked, low-cost remodeler’s remedy for common complaints with interiors, offering the chameleon-like ability to lighten, warm, enlarge, erase, or attract attention. “Paint is a powerful tool that can enhance the architectural character and intent of

Painting Walls Red: How to Pick It and How to Get Rid of It Painting walls red — or any bold color — makes a definite statement, which you may want to take back someday. A tinted primer will cover your mistake. CARALEE ADAMS | HOUSELOGIC

Painting walls red is an inexpensive way to add pizzazz to a room and bring a lush, romantic mood into your home. But red — and any bold color — is a bear to cover up when you suffer painter’s remorse. Here’s how to find the right red and how to cover your tracks when you decide to 18 get ridBAKERSFIELD of red. REALTOR MAGAZINE ®

More Schwartze advice:

Always sample paint colors on a few walls. Don’t be shy about painting a few large swaths on walls and trim to consider the effect of natural and artificial lighting. Add samples to opposite sides of a room to judge the paint color from different angles. Check the space with the samples in place and watch how

SEEING RED

Painting walls red is less forgiving than, say, painting walls Linen White. Make a mistake, and you’ll feel like you’re dining inside a tomato. Change your mind, and you’ll need at least two new coats of paint to cover your regrets. Here are tips on where and which red to choose. Painting walls red can make large spaces feel more intimate, and small spaces look more interesting. Splash a little red in a powder room, or on just one wall in a den. Bluish reds can be festive and a good choice for dining and living rooms. Orange-hued reds are anxiety-producing colors—popular in casinos—so keep them

out of the bedroom. Paint your selection of a sheet of poster board—not on the walls—and place it in different parts of the room, at different times of the day, and in different sunlight conditions. At night, turn on lamps to see how your red reacts to artificial light.

CHOOSE TO RE-CHOOSE

Red walls don’t play well with new colors: Whites turn pink, yellows become orange, and blues look purplish. You won’t be able to throw up a coat of crème and call it a day.

HERE’S HOW TO NEUTRALIZE RED: Prime walls with water-based sealing primers, such as Benjamin Moore Color

the paint color changes at different times of the day. Evaluate your reaction to the proposed colors: Does the space feel cozy or is the openness enhanced?

alternating color can make a room grand. While vertical stripes enhance room height by drawing the eye upward, horizontal stripes lure your gaze around the perimeter, making walls seem further away. Use similar light colors for low-contrast stripes, and your room will look even larger.

Painting walls white, cream, pastels, or cool colors (tinged with blue or green) creates the illusion of more space by reflecting light. Paint trim similar to walls (or use white on trim) to ensure a seamless appearance that visually expands space. White or light colors lift a ceiling; darker shades can have a similar effect if you select a high-gloss paint sheen, which reflects light and enhances space. Employ a monochromatic scheme to amplify the dimensions of a room. Select furnishings in one color and paint walls and trim to match. Lack of contrast makes a room seem more spacious. Make walls appear taller by extending wall color onto the ceiling. Create a 6- to 12-inchwide border of wall color on the entire ceiling perimeter, or wherever walls meet the ceiling. Vertical and horizontal stripes of

Give peace a chance

How to enlarge space with color

Foundations or Behr Premium Plus Interior Enamel Primer. Tint primer to make it closely match your final color. Or, choose a grey or pink tint to help transition from red to a more neutral color. Paint two coats of primer and let dry completely. Use fans to speed up the process. After priming, choose a good quality paint and you’ll likely need only two coats. For a high-quality paint, look for 100% acrylic and stick to national brands.

The right paint choice can lend tranquility to a bathroom, master suite, or other quiet, personal space. A palette of soft, understated color or muted tones help you instill a calming atmosphere. Some good choices include pale lavenders, light grays or greens, and wispy blues.

Define your assets

Call out notable features in a room with paint. Dress crown mouldings and other trims in white to make them pop against walls with color. Make a fireplace or other feature a focal point by painting it a color that contrasts with walls. “Using a higher sheen of paint on woodwork, such as baseboards and door or window casings,” says Schwartze, “creates a crisp edge and clear transition from the wall to the trim.”

Hide flaws

Not everything should stand out in a space. Using a low-contrast palette is a good way to hide unappealing elements or flaws. Conduit, radiators, and other components painted the same color as the wall will seem to disappear. Selecting low-sheen or flat paint colors also helps hide flaws. Unless walls are smooth, avoid using high-gloss paint because it reflects light and calls attention to an uneven surface.

Creating intimacy

When a space feels cavernous, draw walls inward and make it cozy with warm colors (red-tinged) because darker hues absorb light. Similarly, a dark or warm color overhead (in a flat finish) helps make rooms with high or vaulted ceilings less voluminous.

What’s the cost?

As a DIY job, painting a 12-by-12-ft. space costs about $150, including paint, primer, brushes, drop cloths, and other painting tools and supplies. A professionally painted room using high-quality, brand-name paint costs $ 200-$400. About the Author: Jan Soults Walker Nationally published home improvement writer Jan Soults Walker and her husband, Dave, once built a window seat with flanking bookcases into a kitchen. It remains one of their favorite storage projects to date. Visit HouseLogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®. www.houselogic.com

Apply new color with a 3/8in nap roller. The shorter the nap, the better the coverage, which is important when covering red colors. About the Author: Caralee Adams. A veteran journalist, has written for Better Homes and Gardens, Parents, Fitness, and The Wall Street Journal. Visit HouseLogic.com for more articles like this. Reprinted from HouseLogic. com with permission of the NATIONAL ASSOCIATION OF REALTORS®. www. houselogic.com

BAKERSFIELD REALTOR® MAGAZINE

Low-Maintenance Lawn Alternatives:

Ground Cover

Creeping Perennials, Clover, and Other Ground Covers

For starters, the average household dumps 60 gallons of water a day on conventional lawns. Toxic lawn herbicides and pesticides run off into lakes and streams. Gas-powered mowers spew pollution into the air. And then there’s all that time spent watering, weeding, seeding, sodding, thatching, and mulching. If you’re looking for an alternative, consider replacing some or all of your highmaintenance turf with ground covers that form walkable “carpets,” and innovative grasses that require little or no water or mowing once established. In turn, you’ll reduce the need for irrigation, stop washing harmful chemicals into the watershed, add depth and texture to your landscape, and spend your spare time enjoying your yard instead of manicuring it.

Look for attributes that meet your needs: child-durable, deer-resistant, droughttolerant, shade-loving. Mixing them up is not only aesthetically pleasing, it’s also good for the landscape: Diversity increases resistance to pests and disease and reduces the need for fertilizer and pesticides. Here are some popular choices. Creeping perennials: Tight to the ground, these plants are especially good for cushy green carpets. They keep out weeds and allow air, water, and nutrients to get to plant roots. Many work equally well in rock gardens or in crevices between stepping stones, in full or partial sun. These include mat-forming New Zealand Brass Buttons (Cotula squalida) and Scotch or Irish Moss (Sagina subulata), which isn’t a moss at all

LAURA FISHER KAISER | HOUSELOGIC

f you want a yard that demands less time, money, and water, consider ground cover rather than a traditional lawn. Effort: High 1-3 mos (prep and plant) Investment: Low $4-$500 (seed or plant 1,000 s... Americans have long had a soft spot for lawns. Turf grass covers nearly 47 million acres in the U.S., according to the Lawn Institute. But there’s plenty that’s not green about all that green.

BAKERSFIELD REALTOR® MAGAZINE

There’s a ground cover to meet most needs, whether you’re planting a pathway, a hedge, or a broad swath of green. They run the gamut of foliage textures and colors, and many have wonderful flowers. Some varieties are ground-hugging and feel delicious under bare feet. Others grow up to two feet tall, making them ideal as barriers or landscape punctuation.

but a perennial that forms a cushiony blooming carpet. Some, like Blue Star Creeper (Laurentia fluviatilis), which has tiny green foliage, bear up to heavy foot traffic. Creeping Jenny (Convolvulus arvensis) has an extensive root system that makes it quick to spread and tough to kill. That’s a good thing if you’re looking for a tough turf alternative but a problem if it creeps into beds where you don’t want it. Besides being good creepers, many ground-hugging perennial herbs are often nicely scented, hardy under foot traffic, and even edible. These include chamomile (Chamaemelum nobile), which has fern-like foliage and white flowers with yellow centers; Corsican mint (Mentha requienii), which thrives in shade, exudes a minty smell when trod upon, and is edible; and various thymes (Woolly, Red, Prostrate), which feature dainty flowers and work well between pavers or as a low mounding carpet. Creeping perennials cost $6 to $10 per plant. A 15-foot-by-20-foot area with plants two inches apart (for instant density) requires 300 plants. But if you’re patient enough to wait a year or so for them to spread, you can buy fewer plants and space them 12 inches apart. Clover: Although clover has gotten a bad rap as a weed, it’s actually not a weed at all. In fact, a clover lawn (or, for high-traffic areas, a clover-grass mix) has many advantages. Sweet-scented, inexpensive, and quite durable, white clover (Trifolium repens) grows in any kind of soil, stays green even during low-water periods, and feels lovely underfoot. Low-growing clover doesn’t need regular cutting, nor does it need fertilizer, but an occasional mow will encourage new growth and discourage bees. If you don’t mind the bees, consider letting your clover bloom, which benefits the bees and the environment. Clover is one of the least expensive groundcover options, costing about $4 to seed 4,000 square feet. Visit HouseLogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®. www.houselogic.com

5 Plants You (Almost)

Never Have to Water HOUSELOGIC

Not every plant is a big drinker; some can get along with only a few sips. Here are 5 droughtresistant plants that won’t break your water budget. Every plant needs water. But droughtresistant varieties need only dainty sips once they’re established, making them perfect for low-rainfall areas and low-energy gardeners. Susan Gottlieb, an expert on droughttolerant gardens, says native plants have the best chance of surviving dry summers or whatever nature throws at them. “Natives have evolved to thrive in your climate without a whole lot of extra work,” Gottlieb says. Include these 5 stunners in your landscaping and retire your watering can. 1. California lilac (Ceanothus): This beautiful shrub flowers in late winter/early spring, emits a lovely fragrance, and shows flowers that run from white to purple. The “Concha” variety is prized for its deep blue blossoms. California lilacs grow best on dry, sloping land or in front of any structure that protects them from wind. They also prefer well-drained soil, and they don’t do well in clay.

2. Deer grass (Muhlenbergia rigens): Found in many desert gardens, deer grass is a spiky and dependable ornamental. It loves full sun, but also will grow in a little shade. Water every three days until established. After the first year, water only every three weeks. 3. Salvia, heatwave series: These dependable perennials were developed in

Australia to withstand extreme weather. As a bonus, they bloom spring through fall, to the delight of hummingbirds and butterflies. Colors include white, pink, and salmon. 4. Dusty miller (Senecio cineraria): This low-growing perennial is known for its silver-gray foliage, looks good as a ground cover, and thrives in containers stuffed with annuals. It hates standing around with wet roots, so plant it in soil that drains well. 5. Tickweed (Coreopsis): These yellow perennials add a burst of sunshine to any garden or border. More than 100 species are long-blooming (so long as you deadhead) and low-maintenance. They range from long and leggy to small and mounded. Also, they are easy to divide, creating many more plants season after season. (Here are more tips on taking care of perennial flowers.)

Flashes of color can still accentuate your home’s curb appeal during a drought without breaking the (water) bank HOUSELOGIC

Just when the growing season looks bleakest — think scorchers and mid-summer drought — Mom Nature brings out bursts of cheery color. These drought-resistant plants help conserve water and ensure your curb appeal won’t wilt in the heat. Native varieties are the most tolerant.

Four O’Clocks

Latin: Mirabilis Type: Perennial Colors: White, pink, yellow, and variegated Tip: These hardy plants grow in tangled, 3-foot-high mounds that make them look like shrubs. The big, trumpet-shaped flowers open in late afternoon and are fragrant into the evening, so plant them along walkways and exterior doors.

Lavender

More than 30 states host Native Plant Societies, which can guide your selection and help you save water in your garden. To find a local society, check with your local extension agent or with the Native Plant Conservation Campaign, a friend to native and endangered plants. For more ideas, check out these droughtresistant plants with an emphasis on color, and these lawn alternatives that don’t hog water. About the Author: Lisa Kaplan Gordon is an avid gardener, a member of the Fairfax County Master Gardeners Association, and a builder of luxury homes in McLean, Va. She’s been a Homes editor for Gannett News Service and has reviewed home improvement products for AOL. Visit HouseLogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®. www.houselogic.com

Latin: Lavandula Type: Perennial shrub Colors: Blue, purple (lavender!), occasionally white and pink Tips: Fragrant lavender grows in loose sprays of spikes tipped with little clusters of flowers, and are good in informal gardens. Most varieties attract bees and butterflies. They tolerate poor soil and neglect, even preferring sand and gravel to organic mulch.

Azalea

Latin: Rhododendron Type: Perennial shrub Colors: White, pink, red, purple Tips: Drought-tolerant after they’re established, rhodos need ample water to get started. They also like their soil well-adjusted and well-drained, so checking for soil pH and other nutrients is helpful before planting. They prefer filtered — not direct — sunlight. There are over 800 varieties in all sizes; ask your local nursery what works in your BAKERSFIELD REALTOR MAGAZINE region. ®

DEIRDRE SULLIVAN | HOUSELOGIC

Home Hacks

That Make

Tuck Chalk in Your Toolbox to Stop Rust. You can keep the metal tools and hardware in your toolbox rust-free with blackboard chalk. How so? Chalk is a moisture sucking material that traps dampness. When you place several pieces throughout your toolbox, its porous nature will protect items prone to rusting. Bonus Tip: Got a musty closet? Fill up a small muslin or cheesecloth bag with chalk and then hang it inside. It will absorb the dampness and stinky odor.

Spray Your Mower’s Blades to Keep Clippings From Sticking. If you have a lawn, mowing is one of those must-do drudgeries. Fortunately, cooking spray can make the chore problem-free. When applied to a mower’s undercarriage and blades, it can help prevent grass clippings from sticking. Bonus Tip: You can prevent ice from building up in your freezer with cooking spray. Just spray a thick layer over spots prone to icing, and let it sit for five minutes. Afterwards, use a towel to wipe up the oil.

Maintenance

Easier

Home upkeep can be challenging. From basic maintenance to quick repairs, these hacks and tricks make tackling prickly household issues easier. 22

BAKERSFIELD REALTOR® MAGAZINE

Toss in a Tennis Ball to Clean Your Pool Water. Suntan lotions, moisturizers, and body oils will leave a greasy slick on pool water. To clean, toss in a fresh tennis ball. Its fuzzy surface will soak up the oils your guests left behind. Bonus Tip: A tennis ball will buff scuff marks off floors. To avoid stooping while cleaning, cut an X into the ball and place on the end of a mop or broom handle.

Use Painter’s Tape for a Perfect Caulk Job. To many DIYers (myself included), applying caulk in clean, straight lines seems like an impossible task. But it’s actually very easy if you use painter’s tape. You’ll need to thoroughly clean the

area you’re caulking first. When it’s dry, apply medium adhesion painter’s tape, such as Frog Tape, above and below the area you’ll be caulking and then caulk. Be sure to peel off the tape while the caulk is still wet.

Grab a Makeup Sponge to Repair Drywall Holes. Typically mesh or paper tape is used to fill small holes in drywall. But a cosmetic sponge will get the job done, too. Just stuff it into the hole (you may need to cut it down to size) and spackle. Bonus Tip: A little baking soda added to a dollop of strong, fast-acting glue, such as Krazy Glue, will fix a small wall crack. When the mixture is dry, it forms a hard plastic that can easily be sanded down to a smooth surface.

Apply Nail Polish to Fill a Hole in Your Window. Found a tiny hole in your glass window? Repair it with clear nail polish. Apply a coat then wait for it dry. Repeat those steps until the layers of clear nail polish are flush with the glass surface. Bonus Tip: Clear nail polish can also fix torn window screens. You’ll need to apply multiple layers until you create a substantial barrier.

Use Your Drill to Clean a Grimy Tub. It takes a lot of elbow grease to deep clean a dirty bathtub — unless you use a cordless drill with a foam ball polishing attachment (found in the automotive section of most big box stores). Attachments like these were designed to be tough on grime without scratching surfaces. Bonus Tip: Another automotive store item that saves cleaning time is rain repellent windshield sealant. Apply it to clean glass shower doors to reduce soap scum buildup. About the Author: Deirdre Sullivan is an NYC-based writer who’s obsessed with maximizing every inch of her urban dwelling. She’s a former fashionista who has worked for Lucky Magazine and InStyle. She recently traded her high heels and Fashion Week pass for a drill and bandsaw. Follow Deirdre on Google+, Twitter, and Pinterest. Visit HouseLogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®. www.houselogic.com

Team Bringing Home the Cure

Champions of Hope and Life B

A snapshot of part of our Relay Team, “Bringing Home the Cure”. There’s still time to join!

akersfield is a very giving community. If there was an Olympic event for charity and donations, Bakersfield would be the Gold Medal Winner! There are countless local events throughout the year for a myriad of charities ranging from children’s advocacy and the homeless to serving our returning military men and women, both healthy and wounded, many of which our members actively support. These and other incredibly important charities are showered with donations, large and small, from all walks of life in Bakersfield. We are a giving and generous town, like none other, and this is one of the reasons we choose to live here. People care and they show it by organizing these events and then reaching down into their pockets and giving from their personal resources. The Bakersfield Association of REALTORS® is proud of our many members who have faithfully and tirelessly supported various causes for years, including Relay for Life. However, in 2013, our members whose passion was sparked by the love, compassion and memory of those colleagues, friends and loved ones who exemplified the epitome of hope and life even in the midst of their courageous battle with this devastating disease, decided they wanted to do more. “Team Bringing Home the Cure” was formed to unite and engage

all of our REALTOR® and Affiliate members to maximize our efforts to raise funds in support of the American Cancer Society’s Relay for Life. In 2013 and 2014 alone, our REALTOR® and Affiliate members raised over $110,000 towards that effort. In addition to continuing our support of Relay for Life,

It takes each of us to make a difference for all of us. — Jackie Mutcheson, Teacher

In Loving Memory of Susan O’Quinn

August 23, 1954 — February 22, 2015

this year our team has elected to support a second essential organization in Kern County, now in its third year, called the Kern County Cancer Fund (KCCF). KCCF is devoted to providing financial support to cover insurance, pharmaceutical and patient services, to residents in Kern County undergoing cancer treatment. Team Bringing Home the Cure is proud to present its third annual Wine Tasting and Auction Gala, its main fundraiser, held at Motor City Lexus of Bakersfield. The chic and sophisticated atmosphere of the Lexus facility is the perfect backdrop for this prestigious event. The opportunity to taste outstanding wines is a great way to find a new favorite without traveling far from home. To accompany the wine, there will be delicious favorites from a number of Bakersfield’s most popular restaurants. The evening wouldn’t be complete without both a live and silent auction with items ranging from small and affordable to “out of this world fabulous”! Come join us in the fight to save lives on April 18 from 4:00 to 7:00 p.m. at Motor City Lexus of Bakersfield. Tickets are available at The Bakersfield Association of REALTORS®, 2300 Bahamas Drive; and Motor City Lexus of Bakersfield, 5101 Gasoline Alley. For more information please call the Bakersfield Association of REALTORS® at 661.635.2300.

OUR FUNDRAISING EFFORTS HAVE BROUGHT IN OVER $110,000 FOR THE AMERICAN CANCER SOCIETY BAKERSFIELD REALTOR® MAGAZINE

Why Real Estate Leads Don’t Close

The Secret

Are You Giving Away Too Much Information?

Behind Promoted Tweets

TRAVIS SAXTON | REALTRENDS

It goes against what you’ve learned about marketing listings on the Internet, yet recent studies have proven that having too many details about listed properties on your website can inhibit leads. Why? First, there’s nothing left to request. If you include every detail about a home, why would a prospect need to call you? Next, there are plenty of would-be buyers analyzing the information on their own. When interested people draw their conclusions about your product without your assistance, they could overlook or misunderstand something. This is especially true for those offering a fractional product that involves explanation-of-use plans and advanced FAQs. If your web visitor accidentally overlooks one small, but critical piece of information about the property, such as HOA fees, he or she could go from interested to completely lost, all unbeknownst to you. While you don’t have to make prospective buyers jump through hoops to get details about the listing, you don’t have to give them everything. There is a middle ground. About the Author: Travis Saxton is featured weekly in industry publications, webinars, presentations, and regularly presents at national conferences and regional meetings.

HOME

FOR SALE

People use Twitter to connect, engage, and follow their interests, such as favorite celebrities, brands, and friends. By leveraging Millennials’ innate ability to be alone (speaking from experience), Twitter has created an environment for businesses to engage with their customers through personal interactions. Well, as personal as it can get online. Businesses can take these interactions and build rapport with consumers, thus spurring a pseudo-viral effect of word-ofmouth referral opportunities. You can promote your Tweets to help cast a wider net, encourage content engagement, drive traffic, or reach out proactively to potential customers. You can control what your audience sees, where they see it, how long they see it, and how it’s optimized.

Here’s some advice: The How To create a Promoted Tweet, start by writing a compelling piece of content, such as the announcement of an upcoming product release, a sale or an event you’re hosting. Include an image or video to drive higher engagement. Once you create your Promoted Tweet, use targeting options to connect with the right audience. After you launch your Tweet Engagements campaign, your Promoted Tweet will appear in the home timeline of the users that you targeted.

The Right Campaign As you craft promoted tweets on ads.twitter.com, you may create certain audiences in front of those you want to display your message. You may create a new campaign and choose several options, depending on your strategy. You may want to grow your community. You may want to drive traffic and conversions for a product or sign up. You may want to get people to install or engage with your mobile app and much more. They don’t necessarily have to be objectivebased campaigns, as you can simply promote tweets to certain demographics and locations.

BAKERSFIELD REALTOR® MAGAZINE

You first need to understand who you want to reach; then, you can start targeting. A few examples of targeting options:

Locations. Such as United States, Florida, or you can import multiple locations. Gender. Any gender, male only, or female. Languages. Target those who only speak English or Spanish, for example. Keyword Targeting. This allows you to reach Twitter users based on keywords in their search queries, recent Tweets, and Tweets they recently engaged. Follower Targeting. Targeting @usernames allows you to reach users with interests similar to followers of any of those accounts. Once you’ve figured out your campaign, your strategy, and your audience, you are ready to set a budget, and let it run. Given that 90% of 18- to 29-year-olds use social networking sites, according to PewResearch, this could be a successful strategy.

Agent Strategy Center your campaign around life-changing events for keyword targeting, such as “Just had a baby,” “Getting married,” or “Just got my dream job,” and place promoted tweets in front of the right audience at the right time. That way, you’ll likely be top of mind when they are ready to move.

Broker Strategy From a recruiting and retention standpoint, you can adopt the agent strategy listed above and have brokerage-generated leads for agents in your office. This works well if you are targeted and have the right plan in place. Build a campaign for recruiting. Either grow your audience with the “grow your community” function, or use keyword targeting, using phrases such as, “passed the real estate exam,” or “nervous about taking the real estate exam.” Or, place an ad promoting your training systems. Whatever your strategy, it only works if you implement it. Build yours today. About the Author: Cade Madison strikes deals with top companies for the business alliances group at RE/MAX, he has perspective into what brokerages, teams, agents, and real estate franchises are looking for from a technology perspective. Reprinted with permission from REAL Trends, Copyright 2015, All Rights Reserved.

TEAMWORK, a technology trend Technology allows more teams to form

DAVID FRIEDMAN | REALTRENDS

umans have been forming teams (or tribes) since the beginning of recorded history. The advantages of working together are easy to understand and don’t need to be listed here. The simplest illustration of this is for real estate professionals to ask the following: Of the 1.2 million members of the National Association of REALTORS® (NAR), how many of them do you think are tough negotiators? All of them? Far fewer than that? OK, then. If we agree that teams are more effective than going it alone, why is it that forming teams has only been a strong trend in the past few years? Why now? And, why hasn’t this always been the case? The answer is technology. Technology has made the team an even more efficient operating model. Let’s look at a few examples. A team often includes a staff that sits in one location, while agents meet with clients, show property, and close deals. Communicating with admins has never been easier. Therefore, leveraging these teammates has become even easier. In

other words, in part, mobile technology has propelled the trend. Some Customer Relationship Managements (CRM’s) provide for teams, even within larger brokerages. This opens the door to a myriad of features that make teams more productive. They are: Leads can be assigned to teams, rather than just one agent. This allows any teammate to market to and respond to a lead, speeding up lead follow-up and ensuring more consistent contact. By now, we all know that this translates into better conversion rates. Clients that are connected with different agents can be managed by one admin. That admin can make sure, even when the agents are busy, that the clients are touched on a regular basis with a newsletter, market report, or (gasp!) a phone call! One admin can execute a marketing campaign which benefits team members. The best CRMs empower staff to work on behalf of many agents at once. So, the marketing team can send a newsletter that appears to come from the agent that the lead knows and trusts. Alternatively, if the team’s brand

is strong enough, marketing materials may, in fact, include the team’s name. Having both options in your CRM are best. Even transaction management systems now offer team functionality. A transaction coordinator can make things run a lot more smoothly. Large teams will have one dedicated member who knows how to push and pull paperwork electronically, while the other team members are playing their specialized roles. The popular transaction management systems allow for one person to set up documents and then distribute to parties who can then execute. With all of these tools at the disposal of the well-equipped brokerage and the teams within, it’s no wonder that agents are banding together. The benefits are just too good to pass up! About the Author: Travis Saxton, President of Boston Logic is featured weekly in industry publications, webinars, presentations, and regularly presents at national conferences and regional meetings. Reprinted with permission from REAL Trends, Copyright 2015, All Rights Reserved.

BAKERSFIELD REALTOR® MAGAZINE

HONORING EXCEPTIONAL REALTORS WHO HAVE GONE ABOVE AND BEYOND FOR CLIENTS. 速

NOMINATE A CHAMPION TODAY! Recipients will be recognized at a special awards presentation at CALIFORNIA REALTOR EXPO, featured in California Real Estate magazine, and have their unique stories told in a video produced by C.A.R. 速

Nominations are open through May 4, 2015.

New this year! Nominate online at on.car.org/cohawards BAKERSFIELD REALTOR速 MAGAZINE

Writing with SEO in Mind:

5 Tips and Tricks to Help You Get Found

Most people want to know how to best leverage the secret ingredients that go into the potent Search Engine Optimization (SEO) concoction called “Google Juice.” So, let’s shed some light on some content mysteries that drive traffic to successful blog posts and web content. Practice the following tactics next time you approach your keyboard for a session in content creation.

1Title Naming Conventions

When drafting a title for a written piece of content, do not shy away from using adjectives to spice up your article. What sounds better: ‘Amazingly Simple Tips for Staging a Home’ or ‘Tips for Staging a Home’?

What Your Readers 2Consider Want to Hear

Use your expertise in real estate to approach topics and concerns in which today’s

consumers are interested. Take things a step further by using a question when naming your article or headline. Here is an example: Why Use a REALTOR® Over Zillow?

Excitement and Entice 3Create People to Read Your Content

Don’t be afraid to be informal in your writing. Often, people search out blogs and information as a break from the regular workload. So, feel free to be casual in your writing to engage a casual reader even further.

Your Expertise or the 4Leverage Expertise of Others

Often, visitors to your blog are looking for something very specific in regards to your expertise. Focus on what makes you or your business an expert in a specific industry and maximize this expertise. Include contributing authors or conduct interviews with experts in your field to build credibility

and draw in readers.

5Frequency and Commitment

To ensure that Google finds you based on your content requires a commitment from you and your team. This is due, in part, to the fact that Google takes frequency of new website content under heavy consideration when ranking your site in organic search results. When venturing out to blog or contribute fresh content to your site, make sure that you do so on a consistent basis. Also, focus on content that is relevant. This will ensure more natural interest and excitement about the content you are posting. When looking at your overall marketing and SEO strategy, keep these tips and tricks in mind to make sure you are tapping into as much “Google Juice” as possible to ensure a more dominant online presence. Reprinted with permission from REAL Trends, Copyright 2015, All Rights Reserved. BAKERSFIELD REALTOR® MAGAZINE

Continued from page 13

there are many ways to define how something was fixed. The best thing to do is to ask the seller for documentation of the fix, including a paid receipt, and then discuss disclosing and providing evidence of the fix to a new buyer. A seller’s refusal to disclose a significant fix to a property can result in serious liability issues for an agent if the agent knows about it and the fix fails or was inadequate.

Client Confidentiality

Certain client information is subject to confidentiality, even after the relationship ends between the client and agent. Most notably, a client’s price position, negotiating position, and motivation to buy or sell cannot be shared with anyone else. Here’s an example: Sellers tell the agent that they would lower their asking price from $245,000 to $210,000, if needed. The agent is not free to disclose this, even if a deal falls through. Linda Hobkirk has seen a number of agents break this rule. Her home state of Arkansas allows for dual agency, where an agent or brokerage can represent both the buyer and seller in a transaction. The agent or brokerage must keep the buyer’s and seller’s information confidential at all times. But in cases where a deal goes bad and the house falls out of contract, many agents have “loose lips” and start carelessly revealing information about buyers and sellers to third parties, assuming their duty to keep quiet ends when the client relationship does, says Hobkirk, an associate with Coldwell Banker Harris McHaney & Faucette Real Estate in Rogers, Arkansas. “We are very similar to doctors and lawyers in that we must protect confidential information unless ordered by a sitting judge to release it,” she says. Some information, however, is not subject to confidentiality. For example, since a seller

BAKERSFIELD REALTOR® MAGAZINE

cannot expect an agent to conceal significant property defects from a buyer, the seller likewise cannot demand that the agent keep that information confidential after their business relationship has ended. Therefore, an agent can disclose the existence of property defects to anyone, including another agent with whom the seller decides to work. What the Code says (Article 1, SOP 1-9): A client cannot require an agent to keep confidential any information that would be required to be disclosed to a buyer. Any other information defined as confidential may not be disclosed. But the question remains concerning how long the duty of confidentiality lasts. SOP 1-9 says the duty of confidentiality exists during and after the termination of the agency relationship. However, if there is a conflicting standard under state law as to how long confidentiality lasts, state law will rule. Many states follow the SOP 1-9 standard of confidentiality, but one state that differs is North Carolina, where state law says the duty of confidentiality ends at the termination of the agency relationship.

Soliciting Another Agent’s Listing or Buyer Agreement The only time an agent may not solicit another agent’s client is when that client is subject to an exclusive agreement with his or her agent. However, when a client has a nonexclusive agreement with an agent, the client is fair game to any other agent. Exclusive agreements are in the best interest of the client, which is why the Code offers them protection. With nonexclusive agreements, sellers, for example, may work with several listing agents to list a property, but the agent who procures the buyer is the only one who gets paid. That offers little incentive for the listing agents to work hard for the seller when they know they may not

receive compensation. In exclusive agreements, the client works with one agent, and that incentivizes the agent to do his or her best for the client. Tammy O’Neill, an agent with RE/MAX Fine Homes in Newport Beach, Calif., had another agent go after her client despite their exclusive buyer agreement. “I had an agent go to my client’s house right after I showed that agent’s listing and solicit my client to work with her in finding a home,” O’Neill says. “Yes, she went right to the door and tried to steal my client. Needless to say, it didn’t work, and my client and I closed on a beautiful house.” The offending agent’s actions constituted a Code violation because she initiated contact with a client who was already subject to an exclusive buyer agreement. However, there are conditions where certain interactions between a client bound by exclusivity and another agent are fair. What the Code says (Article 16): On the seller side, sending mass mailings to groups that may incidentally include an owner who is exclusively listed with another agent doesn’t violate Article 16. However, REALTORS® are prohibited from discussing listing a property with such an owner—unless the owner initiates the contact. On the buyer side, SOP 16-9 requires that before a REALTOR® enters into an exclusive buyer agreement, he or she must use reasonable efforts to determine whether the buyer is already subject to one. Should the REALTOR® find that the buyer is already subject to an exclusive buyer agreement, the REALTOR® must direct the buyer back to his or her exclusive broker unless the buyer directs them otherwise. Bruce Aydt, ABR, CRB, writes REALTOR® Magazine’s Ethics column. Reprinted from REALTOR® Magazine, March/April 2015, with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2015. All rights reserved.

Welcome, NEW REALTORS! ®

SUCCESS

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

new realtors ® february 2015

CONGRATULATIONS! Makalah Bivens, Coldwell Banker Preferred — Westwind; Spring Bunting, Miramar International — Coffee; Martha Cabral, Coldwell Banker Preferred — Westwind; Shanna Davidson, Coldwell Banker Preferred — Coffee; Gregory Desme, C2 Financial Corp; Elsa Fernandez-Mercado, Platinum Real Estate Inc.; Maria Guadalupe Ferrero, Miramar International - Ming; Kerit Zaet Flores De La Paz, D.Best Realty, Inc.; Laura Galici, Marcom Real Estate; Richard Gonzales, D.Best Realty, Inc.; Robert Gonzales Jr., Vazquez & Associates; Elizabeth Jimenez, Platinum Real Estate Inc.; Jessica Krausgrill, Gregory D. Bynum & Associates, Inc.; Esteban Lemus, New Generation Real Estate Group; Shelly Loveless, Vintage Real Estate; Shelly Meadows, Marcom Real Estate; Sara Merlo; Creative Realty Marketing & Mortgage; Kendra Merrel, Tobias Real Estate; Javier Morales, Keller Williams Realty; LaShay Munoz, Coldwell Banker Preferred — Ming; Ana Solanyi Pena Solano, Golden Valley Real Estate Group; Melinda Perez, 661 Realty; Tina Price, Keller Williams Realty; Sean Regan, Premier Realty Associates; Cherrie Sabin, Coldwell Banker Preferred — Westwind; Vicki Seamster, Advanced Realty Management Inc.

new realtors ® march 2015

Cesar Eduardo Cortes Aguilar, RE/MAX Golden Empire; Emily Gay, Scott Tobias Real Estate; Matheus Abraham Gezalyan, Miramar Internatinal - Coffee; John Goon, Miramar International - Mill Rock, Hani Makram Guirguis, Hani Guirguis, Broker; Royce Jennings, Watson Realty, ERA; Gregory Ketchum, Miramar International - Downtown; Eduardo Daniel Magana, Platinum Real Estate Inc.; Linda Maldonado, Five Star Property Management; Stephanie Mazza, Bakersfield Properties Attended, Inc.; Shawna Renee Moyer, Watson Realty, ERA; Sylvia Padilla, California Home Pros; Julie Patterson, Coldwell Banker Preferred - Ming; Sanglim Lee Peters, Tholco Real Estate Group; David Peterson, Watson Realty, ERA; Jodi Sands, Creative Realty Marketing & Mortgage; Vernon David Strong, Jr., Vernon David Strong

BAKERSFIELD REALTOR® MAGAZINE

800

HOUSING MARKET 600

STATEOFTHE

400 200 0

CONTINGENT

1,800

1,600

1,600 1,400

2015

1,200

2014

2015

1,400

2014

1,200 1,000

1,000 800

800

600

400

200

ACTIVE

2014 Compared PENDING SOLD to 2015 by MLS Area

ACTIVE

CONTINGENT

JANUARY 2015 January January2015 All Areas 1,800

PENDING

SOLD

ACTIVE

CONTINGENT

PENDING

SOLD

FEBRUARY 2015 February February2015 2015 2014 All Areas

% Year over Year% Year over Year % Year over Year% Year over Year 2014 2014 Change Change Change Change % Year over Year% Year over Year % Year over Year% Year over Year 2015 2015 2014 2014 2015 2015 2014 2014 Active January Active January1,616 1,616 1,318 1,318 22.6% 22.6%Active February Active February1,611 1,611 1,373 1,373 17.3% 17.3% Change Change Change Change 1,600 Contingent Contingent 205 205 355 355 -42.3% -42.3%Contingent Contingent 221 221 356 356 -37.9% -37.9% 2015 Active Active 1,616 1,616 1,318 1,318 22.6% 22.6%Active Active 1,611 1,611 1,373 1,373 17.3% 17.3% 1,400 Pending Pending 802 802 784 784 2.3% 2.3% Pending Pending 924 924 908 908 1.8% 1.8% Contingent Contingent 205 205 355 355 -42.3% -42.3%Contingent Contingent 221 221 356 356 -37.9% -37.9% 2014 Sold Sold 445 445 483 483 -7.9% -7.9% Sold Sold 427 427 476 476 -10.3% -10.3% 1,200 Pending Pending 802 802 784 784 2.3% 2.3% Pending Pending 924 924 908 908 1.8% 1.8% Total Volume Closed Total Volume$88,671,419 Closed $88,671,419 $96,030,709 $96,030,709 -7.7% -7.7%Total Volume Closed Total Volume$87,774,372 Closed $87,774,372 $93,846,891 $93,846,891 -6.5% -6.5% Sold Sold 445 445 483 483 -7.9% -7.9% Sold Sold 427 427 476 476 -10.3% -10.3% 1,000 Median Sales Price Median * Sales $190,000 Price * $190,000 $189,350 $189,350 0.3% 0.3% Median Sales Price Median * Sales $209,000 Price * $209,000 $184,990 $184,990 13.0% 13.0% Total Volume Closed Total Volume$88,671,419 Closed $88,671,419 $96,030,709 $96,030,709 -7.7% -7.7%Total Volume Closed Total Volume$87,774,372 Closed $87,774,372 $93,846,891 $93,846,891 -6.5% -6.5% Average DOM *Average DOM * 52 5248 488.3% 8.3% Average DOM *Average DOM * 53 53 53 530.0% 0.0% 800 Median Sales Price Median * Sales $190,000 Price * $190,000 $189,350 $189,350 0.3% 0.3% Median Sales Price Median * Sales $209,000 Price * $209,000 $184,990 $184,990 13.0% 13.0% Average 600 DOM *Average DOM * 52

2015 2014

5248

400

Bakersfield 200 0 Sold

January

January2015

ASold CTIVE January

CONTINGENT January 2015 381

Total Volume Closed Total Volume$77,634,252 Closed Sold Sold 381 Median Sales Price Median * Sales $195,000 Price * Total Volume Closed Total Volume$77,634,252 Closed Average DOM *Average DOM * 52 Median Sales Price Median * Sales $195,000 Price * * Figures from Single Family Homes Only. Average DOM *Average DOM * 52 Statistics were run on March 31, 2015. * Single Family * Only Single Family Only * Single Family * Only Single Family Only

BAKERSFIELD REALTOR速 MAGAZINE

488.3%

8.3% Average DOM *Average DOM * 53

53 53

530.0%

0.0%

Bakersfield % Year over Year% Year over Year % Year over Year% Year over Year 2014 February February2015 2015 2014 2014 Change Change Change Change % Year S over Year% Year over Year % Year over Year% Year over Year P ENDING OLD 2015 2014 February February2015 2015 2014 2014 2014 381 414 414 -8.0% -8.0%Sold Sold 372 372 399 399 -6.8% -6.8% Change Change Change Change $77,634,252 $86,005,679 $86,005,679 -9.7% -9.7%Total Volume Closed Total Volume$79,144,742 Closed $79,144,742 $81,062,801 $81,062,801 -2.4% -2.4% 381 414 414 -8.0% -8.0%Sold Sold 372 372 399 399 -6.8% -6.8% $195,000 $200,000 $200,000 -2.5% -2.5%Median Sales Price Median * Sales $216,900 Price * $216,900 $195,000 $195,000 11.2% 11.2% $77,634,252 $86,005,679 $86,005,679 -9.7% -9.7%Total Volume Closed Total Volume$79,144,742 Closed $79,144,742 $81,062,801 $81,062,801 -2.4% -2.4% 5244 44 18.2% 18.2%Average DOM *Average DOM * 54 54 52 523.8% 3.8% $195,000 $200,000 $200,000 -2.5% -2.5%Median Sales Price Median * Sales $216,900 Price * $216,900 $195,000 $195,000 11.2% 11.2% Bakersfield uses the following Zip Codes: 93301, 93302, 93303, 93304, 5244 44 18.2% 18.2%Average DOM *Average DOM * 54 54 52 523.8% 3.8% 93305, 93306, 93307, 93308, 93309, 93310, 93311, 93312, 93313 93314. 2015 2014

2015 YEAR-TO-DATE STATS Area

Dollar Value

# Sold

Average Sold Price*

DOM*

2015

2014

2015

2014

2015

2014

2015 2014

$6,686,900

$5,350,950

$150,339

$127,013

$3,007,422

$2,011,364

$91,433

$76,228

$6,907,100

$5,708,890

$166,063

$769,000

$449,900

$7,039,826

125

% of List Price* 2015

2014

96.47

98.72

95.48

96.00

$144,074

98.20

98.55

$384,500

$149,967

93.89

98.88

$6,327,350

$119,319

$117,969

98.56

98.05

$12,726,550

$19,247,711

$170,715

$166,480

97.60

96.70

$10,257,575

$7,839,987

$233,258

$202,805

97.59

100.45

$3,105,500

$2,940,412

$274,591

$267,310

97.06

98.01

$3,820,518

$3,269,953

$103,257

$103,950

94.53

98.27

$3,531,672

$4,398,300

$153,551

$137,447

98.70

97.99

$575,000

$191,667

0.00

100.19

116

103

$15,960,244

$14,105,846

$152,723

$142,717

98.49

98.73

243

298

$45,685,321

$55,470,869

$201,352

$196,938

98.42

98.49

131

163

$40,508,978

$50,538,309

$312,201

$310,940

97.64

98.23

$689,000

139

100.00

0.00

$9,214,200

$9,430,090

$255,950

$230,002

97.83

98.25

194

205

$53,719,143

$59,290,892

$278,198

$289,224

97.85

99.13

$22,331,443

$21,863,272

$332,581

$330,618

98.48

99.34

$1,483,429

$480,000

$370,857

$480,000

103

100.30

96.00

$5,484,932

$4,532,790

$247,724

$195,609

96.41

97.48

$250,000

$524,000

$250,000

$174,667

177

89.61

94.16

$588,400

$242,000

$84,057

$79,500

97.13

85.48

$904,025

$1,393,500

$129,146

$193,000

96.02

94.17

$1,403,000

$1,465,410

$127,545

$104,672

97.75

99.56

$885,000

$442,500

0.00

96.41

$295,300

$153,500

$147,650

$76,750

94.04

89.09

$1,598,000

$530,630

$181,250

$200,000

94.16

108.11

$8,436,714

$8,756,560

$164,936

$167,472

101.26

98.50

$3,333,920

$3,275,700

$122,757

$91,153

96.89

95.86

$5,031,495

$6,389,250

$157,234

$138,897

100.39

96.76

$7,793,375

$8,315,450

$248,176

$263,943

97.53

95.23

* Figures from Single Family Homes Only. Statistics were run on March 31, 2015.

BAKERSFIELD REALTOR速 MAGAZINE

Attracting

Millennials

Reach them while they’re HOT!

no way around it; most can’t even remember a

Practice what you preach:

illennials now represent the largest

home phone and balk at the question, “Is that

Illustrate your industry and personal savvy

generation in the United States

your home phone or cell phone?”

through Instagram, Google+, Pinterest and

CADE MADISON | REAL TRENDS

equating to roughly one-third of the

Real Estate Coach Travis Robertson

other popular channels. People respond by

total world population in 2013. This means

mentioned in a recent session at Leading

how your presence online showcases what

that Millennials will continue to be a sizable

RE’s annual conference that his mom (a baby

you’re all about. Humanize your brand!

part of the population for years to come.

boomer) knows William Shatner as Captain

What are you doing to attract this young generation, not only as consumers but also as agents? According to whitehouse.gov, Millennials use social media more frequently than other generations. It’s no surprise that they prefer to sleep near their cell phone. Three-quarters of Millennials have an account on a social networking site, compared with only half of Generation Xers and less than a third of Baby Boomers. There’s a serious disconnect here. If you’re not connecting with Millennials in their native environment, you might as well forget trying. As a Millennial, I get (just a bit!) turned off if someone asks me to fax something or doesn’t communicate with me via texting. That’s not to say that belly-to-belly communication or a phone call doesn’t work well for me, but I’m not into setting calls and working around multiple schedules when something can be decided on the spot. Technology has molded Millennials. There’s

BAKERSFIELD REALTOR® MAGAZINE

In summation, quality of life is a focus

Kirk. He (a Millennial) knows him as the

of this generation. Millennials value family,

Priceline Negotiator. That sums it up perfectly.

friends and being close to all of them. They

One study found that more than half of

also look forward to free time for recreation,

the Millennials surveyed expressed interest in

whether it is volleyball in the park or going to

starting a business. They also value community,

the mountains, as well as working in creative

family, and creativity in their work.

jobs. How will you reach them? Will you

How are you connecting with them?

change your focus or just shift priorities?

Given the fact that more than half of all

How to be attractive to Millennials:

Millennials surveyed are of the entrepreneurial

Load full of leads: One strategy is to invest

spirit, how are you being creative? Are you

in lead generation systems to pump your

recognizing what they value? Or, are you

brokerage full of leads. Some brokerages have

connecting with them in their natural habitat?

an e-team that scrubs and curates the leads

Here’s where they are:

to make sure the handoff is smooth. The

Facebook: Make sure you connect with

Millennial generation understands that leads

prospects. The more you have, the more mutual

are the new currency, and they love the instant

friends you’ll have with more Millennials. You’ll

gratification of being fed leads.

also show up as a ‘Do you know?”

About the Author: Cade Madison, formerly the Sr. Business Development Representative at RE/ MAX World Headquarters. Striking deals with top companies for the business alliances group at RE/ MAX, he has perspective into what brokerages, teams, agents, and real estate franchises are looking for from a technology perspective.

Young Professionals Network (YPN) Events: Even if you’re young at heart, you may sponsor YPN events in your area. Plus, it’s a great way to recruit ambitious young professionals.

NATIONAL ASSOCIATION OF REALTORS®

AR GENERATIONAL SURVEY: Millennials Lead All Buyers, Most Likely to Use Real Estate Agent WASHINGTON (March 11, 2015)

– Despite the economic and financial challenges young adults have braved since the recession, the millennial generation represented the largest share of recent buyers, according to the 2015 National Association of REALTORs® Home Buyer and Seller Generational Trends study, which evaluates the generational differences of recent home buyers and sellers. The survey additionally found that an overwhelming majority of buyers search for homes online and then purchase their home through a real estate agent, with millennials using agents the most. For the second consecutive year, NAR’s study found that the largest group of recent buyers was the millennial generation, those 34 and younger, who composed 32 percent of all buyers (31 percent in 2013). Generation X, ages 35-49, was closely behind with a 27 percent share. Millennial buyers represented more than double the amount of younger boomer (ages 50-59) and older boomer (60-68) buyers (at 31 percent). The Silent Generation (ages 69-89) made up 10 percent of buyers in the past year. Lawrence Yun, NAR chief economist, says the survey highlights the untapped demand for homeownership that exists among young adults. “Over 80 percent of millennial and Gen X buyers consider their home purchase a good financial investment, and the desire to own a home of their own was the top reason given by millennials for their purchase,” he said. “Fixed monthly payments and the long-term financial stability homeownership can provide are attractive to young adults despite them witnessing the housing downturn and subsequent slow recovery in the early years of their adulthood.” With millennials entering the peak buying period and expected to soon surpass boomers in total population, Yun believes the share of millennial purchases would be higher if not for the numerous obstacles that have slowed their journey to homeownership. “Many millennials have endured underemployment and subpar wage growth, and rising rents and repaying student debt have made it very difficult to save for a downpayment. For some, even forming households of their own has been a challenge.” According to the survey, 13 percent of all home purchases were by a multi-generational household, consisting of adult siblings, adult children, parents and/or grandparents.

Millennials Lead All Buyers, Likely to Use Real Estate Agent The biggest reasons for a multi-generational purchase were cost savings (24 percent) and adult children moving back into the house (23 percent). Younger boomers represented the largest share of multi-generational buyers at 21 percent, with 37 percent of those saying the primary reason for their purchase was due to adult children moving back into their house. “Even though the share of first-time buyers has fallen to its lowest level since 19871, young adults in general are more mobile than older households,” adds Yun. “The return of first-time buyers to normal levels will eventually take place in upcoming years as those living with their parents are likely to form households of their own first as renters and then eventually as homeowners.” CHARACTERISTICS OF BUYERS The median age of millennial homebuyers was 29, their median income was $76,900 ($73,600 in 2013) and they typically bought a 1,720-square foot home costing $189,900 ($180,000 a year ago). The typical Gen X buyer was 41 years old, had a median income of $104,600 ($98,200 a year ago) and purchased a 1,890-square foot home costing $250,000 (same as last year). Seventy-nine percent of all buyers considered their home purchase a good financial investment, with millennials (84 percent) and Gen X (82 percent) having the highest share, followed by younger and older boomers (both 77 percent), and the Silent Generation (72 percent). Generation X buyers (68 percent) were the most likely to be married, younger boomers had the highest share of single female buyers (23 percent), and millennial buyers were more likely (compared to other generations) to be an unmarried couple (14 percent). When asked about the primary reason for purchasing a home, a desire to own a home of their own was highest among millennials at 39 percent. Younger boomers were the most likely to buy because of a job-related relocation or move, and a change in a family situation – likely the birth of a child – was the highest (13 percent) among Gen X buyers. Older boomers (at 15 percent) were the

most likely to buy because of retirement. SEARCHING FOR AND BUYING A HOME Regardless of their age, buyers used a wide variety of resources in searching for a home, with the Internet (88 percent) and real estate agents (87 percent) leading the way. Millennials were the most likely to use a real estate agent, mobile or tablet applications, and mobile or tablet search engines during their search; Gen X buyers were the most likely to use an open house. Although the Internet was the top source of where millennials found the home they purchased (51 percent), they also used an agent to purchase their home at a higher share (90 percent) than all other generations. NAR President Chris Polychron, executive broker with 1st Choice Realty in Hot Springs, Ark., says the survey results highlight the fact that while the Internet is widely used during the home search process, the local market knowledge and expertise a REALTOR® provides is both valued and highly sought by buyers of all ages. “Nothing can replace the real insights and guidance REALTORs® deliver to help consumers navigate the complex buying and selling process,” adds Polychron. Although most purchases by all generations were in a suburban area, the share of millennials buying in an urban or central city area increased to 21 percent in the past year (19 percent a year ago), compared with only 12 percent of older boomers (unchanged from a year ago). Older boomers and the Silent Generation

Continued to page 34

Continued from page 33

older boomers (23 percent) and younger boomers

are likely to use the agent again or recommend

were more likely to buy in a rural area (18 percent

(20 percent). The older the seller, the longer he

to others.

each). Buyers’ median distance from their previous

or she was in the home. Millennials had been in

residence was 12 miles, with older boomers moving

their previous home for a median of five years,

home to potential buyers, younger sellers were

the furthest at a median distance of 30 miles.

while older boomers and the Silent Generation

more likely to want their agent to help with

stayed for 13 years.

pricing the home competitively or selling within a

The majority of all buyers (79 percent) purchased a detached single-family home. Gen X

Younger sellers were more likely to need a larger

While all sellers wanted help in marketing their

specific timeframe.

buyers represented the largest share of single-

home or move for job relocation. In comparison,

family homebuyers (85 percent), and the Silent

older buyers wanted to be closer to family or

2014 using a random sample weighted to be

Generation was the most likely to purchase

friends, said their home was too large, or were

representative of sales on a geographic basis.

a townhouse or row house (10 percent). A

moving due to retirement.

A total of 6,572 responses were received from

combined 7 percent of millennial buyers bought

The survey additionally found that Gen X

NAR mailed a 127-question survey in July

primary residence buyers. After accounting for

an apartment, condo or duplex in a building with

sellers were the most likely to have wanted to sell

undeliverable questionnaires, the survey had an

two or more units.

earlier but were stalled because their home had

adjusted response rate of 9.4 percent. The recent

been worth less than their mortgage (23 percent

homebuyers had to have purchased a home

compared to 16 percent for all sellers).

between July of 2013 and June of 2014. Because

Among the biggest factors influencing neighborhood choice, millennials were most influenced by the quality of the neighborhood

Sellers moved a median distance of 20 miles, with

of rounding and omissions for space, percentage

(75 percent) and convenience to jobs (74

boomers and the Silent Generation moving further

distributions for some findings may not add up to

percent). Convenience to schools was most

distances and downsizing to a smaller-sized home.

100 percent.

desired by Gen X buyers and proximity to health facilities by the Silent Generation. Millennials plan to stay in their home for 10 years, while the baby boom generation as a whole plans to stay for a median of 18 years. Financing the Purchase NAR’s study found that 88 percent of all buyers in the past year financed their purchase. Millennials (97 percent) and Gen X (96 percent) were more likely to finance than older boomers (72 percent) and the Silent Generation (61 percent). The median downpayment ranged from 7 percent for millennial buyers to 20 percent for older boomers. Younger buyers who financed their home purchase most often relied on savings for their downpayment, whereas older buyers were more likely to use proceeds from the sale of a primary residence. Younger buyers also were more likely to receive a gift from a relative or friend, typically their parents, cited by 25 percent of millennials and 15 percent of Gen X. Twelve percent of all recent buyers had delayed their home purchase due to outstanding debt. Among the 22 percent of millennials who took longer to save for a downpayment, 54 percent cited student loan debt as the biggest obstacle – down slightly from 56 percent a year ago. Younger buyers were more likely to finance their purchase with a low downpayment Federal Housing Administration-backed mortgage, whereas older buyers were more likely to obtain a mortgage through the Veterans Affairs loan program. CHARACTERISTICS OF SELLERS Gen X homeowners represented the largest share of sellers in the past year (27 percent), followed by

BAKERSFIELD REALTOR® MAGAZINE

A combined 60 percent of responding sellers

All information is characteristic of the 12-month

found a real estate agent through a referral by a

period ending in June 2014 with the exception of

friend, relative or neighbor, or used their agent

income data, which are for 2013.

from a previous transaction. Eighty-three percent

The Study is posted on the REALTOR.org website: http://goo.gl/B4ofwK

U.S. Home Prices Are Surging 13 Times Faster Than Wages

“largely been driven over the last two years by buyers who are not as constrained by incomes -- namely the institutional investors coming in and buying up properties as rentals, and international buyers coming in and buying, NATIONAL ASSOCIATION OF REALTORS often with cash,” Daren Blomquist, vice For most people, buying a home is no cheap president at RealtyTrac and author of the venture. That’s especially the case when the report, said in an interview. growth in U.S. home prices is beating wage For demand from traditional buyers to increases 13 to 1. improve, “either wages are going to need to Wages climbed by 1.3 percent from the go up or prices are going to need to at least second quarter of 2012 to the second quarter flatten out and wait for wages to catch up,” of 2014, compared to a 17 percent increase he said. “You might say the third alternative is in home prices around that time, according to interest rates go down so you give people more a new report from RealtyTrac. The real-estate buying power with their wages, but interest data provider used the Labor Department’s rates are about as low as they can go.” weekly earnings data to measure wage growth, The trend illustrates the limited impact while home prices were derived from salesof the Federal Reserve’s decision to deed data in December 2014 and compared include mortgage-backed securities to December 2012 on the hypothesis that a in its unprecedented asset-buying change in average wages would take at least program. The Fed bought more six months to affect home prices. than $1 trillion of those securities Using localized earnings data, RealtyTrac to prop up the housing also found that 76 percent of housing markets market after it posted increases in home prices that exceeded collapsed the wage growth there during that time frame, and led by the regions of Merced, California; helped Memphis, Tennessee; Santa Cruz, California; trigger and Augusta, Georgia. Others include the the worst Detroit, Houston and Miami regions. (To be recession in fair, some of these areas are still considered the post-World affordable and experienced massive price War II era. drops during the housing bust and recession.) With the How could this happen? Enter the investor. economy improving In many markets, the housing recovery has ®

contribution by

KEVIN OLIVER

MIRAMAR INTERNATIONAL REAL ESTATE

REALTORS® GIVE BACK

In late December 2014, Oliver was watching the local news and saw a story about how the Boys and Girls Club in Bakersfield was broken into by thieves who stole all of the children’s gardening machines and equipment. This despicable act tugged at Oliver’s heart since he knew the meaning of disappointment, having been raised in a very poor neighborhood as a young boy. Oliver is also a product of the Boys and Girls Club, and attributes much of his success today to the ideals and

support he received during those very tough years. Oliver could simply not imagine how anyone could steal from such a worthy organization. Oliver immediately called the local news station which ran the story, and offered to replace all of the stolen equipment so that the boys and girls would be able to continue their activities. The very next day, Oliver

and home prices climbing, central bankers seem to have achieved at least part of their goal. However, investors have reaped much of the benefits of rising prices, while meaningful wage growth -- and with it the ability of many Americans to buy homes -- has yet to materialize. That’s been one reason housing has posted such inconsistent progress over the past two years, even with mortgage rates near historical lows. The 24 percent of markets where wage growth outpaced home price appreciation from 2012 to 2014 include Tulsa, Oklahoma; Raleigh, North Carolina; Virginia Beach, Virginia; and New York, according to the RealtyTrac data. However in some places, such as the Baltimore region, it’s only because home prices fell during that time period. In such regions, there may be “a lot of distress those places are working through,” Blomquist said. Though for someone who’s looking for a more “emerging market” where prices have more room to run, “maybe that’s a good opportunity,” he said.

hand-delivered a substantial check to the Boys and Girls Club to replace everything that was stolen.

ABOUT OLIVER: He is a Bakersfieldnative and an award-winning REALTOR® and Real Estate Investor with over 10 years of market experience. Although blessed with great success in the past few years, the most important thing to this former U.S. Naval officer is creating a means of giving back to both to his church as well as his Bakersfield community. Oliver is active in supporting Flood Ministries and their goal of assisting the homeless find homes, and is also active in many other Christian organizations.

BAKERSFIELD REALTOR® MAGAZINE

Prsrt Std U.S. Postage PAID Bakersfield, CA Permit #70 GROWING A STRONGER COMMUNITY

W E ’ R E

M O R E

T H A N

J U S T

R E A L T O R S

NT RNAME L TOU L A B OFT ER S MB E M

MEMBER SOFTBALL

TOURNAMENT JOIN US ON MAY 30TH AT PATRIOTS PARK

It’s time to hit a home run! Bring your family out to enjoy some sunshine and have a good time with family, friends and peers while watching

REALTORS® and Affiliates compete for the coveted Softball Tournament Trophy, but even more so, the championship bragging rights for an entire year. Come out and cheer on your favorite team and maybe even witness a few shenanigans

from some of our crazier players. There’s something for everyone — games, food and lots of fun!

TEAM SIGN-UPS

Let the games begin …

CONTACT CODY TODAY!

Registration: 9am Games begin: 10am

Early Registration: Only $250 per team (You must register by April 30th). After April 30th, it’s $350 per team. cody@bakersfieldrealtor.org or 661-635-2300

BECOME A SPONSOR —G$1,000 Contact W E’RE MAK I N O U Ballpark R C O MSponsor M U N I |T$500 Y ABooth B E Sponsor. T T E R P L A C ECody T OforL details! IVE