REALTOR Magazine October November 2017

112 O C T O B E R / N OV E M B E R 2 017

2017 Year In Review Moments and Memories Celebrated for a Successful Year!

INSIDE NAR‘S NEW CEO

encourages members voice

2018 President

Sprague connects the dots

PACE Alternatives life after PACE

Leadership Academy creates uique experiences

RREEAALLTTOORRSS®® GG RR OO W NG G EE R R CC OO M MM M UU NN IITTYY W II NN GG AA S T R O N

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2017 OFFICERS

President Midge Jimerson Boydstun Realty Co., Inc. President-Elect Derek Sprague Mossy Oak Properties Vice President Athena Collup Miramar International — Mill Rock Secretary/Treasurer Ronda Newport Miramar International — Mill Rock Immediate Past President Bill Redmond Watson Realty ERA Chief Executive Officer Linda Jay, RCE

2017 Directors Anna Albiar Coldwell Banker Preferred, Coffee William Chicas Watson Realty ERA

CONTENTS

Bakersfield REALTOR® Magazine

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2017 C.A.R PRESIDENT Geoff McIntosh reflects on C.A.R.’s accomplishments for 2017.

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WHY LEADERSHIP? Our Leadership Academy created a video that showcases and promotes the Association’s programs, products and services.

VELESKA (VALI) NEMETZ Local Broker receives scholarship from REALTOR® University. An honor only given to qualified and committed candidates.

ON THE COVER

2017 was a big year!

We offered many training classes and various events for all of our members.

2017 ASSOCIATION HIGHLIGHTS There’s no shortage of activities with various committees and events.

WHO’S YOUR COMPETITION You may have fewer than you think.

Kevin Palla Broker

Ashley Weaver Karpe Real Estate Center

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Wayland Louie RE/MAX Golden Empire

Brian Tuttle Coldwell Banker Preferred – Coffee

JOE NEWTON Within the Code of Ethics are provisions that affect how REALTORS® communicate with their clients regarding commissions and compensation.

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Scott Knoeb Frontier Real Estate Services, Inc.

Darlene Tobias Century 21 Tobias Real Estate

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15

2018 YPN CHAIR NIK BOONE Goals and insights revealed for YPN’ers in 2018.

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ARE YOU CUSTOMER OBSESSED? You better be. Customer experience is the differentiator.

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

LETTER FROM THE PRESIDENT

A Legacy of Leadership W

ow… it’s already October… can you believe it? My year as your Association President is about to come to a close… how can it be that it is almost over? I feel like it just started… I don’t want it to end. I’m not ready yet, I want to do more… what a great year I have had!

My theme this year was about Vision, Values and a Legacy of Leadership! This theme could not have been a better fit.

So let’s talk about vision for a moment.

Good leaders have a vision, and their team clearly understands what that vision is. Each Association President has an idea of what their year should stand for and look like! Leaders share a dream and direction that other people want to share and follow. My vision was to grow more members and that was demonstrated by having the opportunity to install more than 200 new REALTORS® into our membership.

We now have a REALTOR® membership that exceeds over 1,900 members. We are closing in on the 2,000 mark, which I hope happens before the end of my year as President.

We are growing new leaders at our Association! Under the leadership of our 2015 President Sheri Anthes, came the development of our Leadership Academy. These students of leadership are absolutely amazing! Their energy and enthusiasm is so inspiring. I had the opportunity to work with this group of

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BAKERSFIELD REALTOR® MAGAZINE

“up and coming leaders” and I am excited to see what they do in the future! They will all be amazing! Anyone interested in leadership should get involved with this group and become part of the Leadership Academy.

Good leadership has good values. As REALTORS® we subscribe to the National Association of REALTORS® Code of Ethics. At the Bakersfield Association of REALTORS®, our leadership takes these values quite seriously and incorporates them into our daily activities and meetings.

One of the things the REALTOR® members don’t realize is what an amazing Leadership Team we continue to build year after year… always putting our REALTOR® members first!

The countless hours those in leadership at the Association put in to assure your Association is going smoothly. We have developed a strategic plan that has inspired others to use its framework to develop their own. Our strategic plan has been shown to other countries around the world as a model from which to work. We should be so proud of our leadership at the Bakersfield Association of REALTORS® that developed this plan.

Yes, REALTORS® have good values! It was your REALTOR® members, Sheri Anthes and Jeannie Radsick, along with Bakersfield Association of REALTORS® executive officer, Linda Jay, and Government Affairs Director,

Kim Shaefer, who worked tirelessly to help protect our community and our consumers against the PACE/HERO programs. With the help of our REALTOR® members, we were able to get the City of Bakersfield and the Kern County Board of Supervisors to take a stance and repeal this program in our community.

So where does the Legacy of Leadership come in? Many of you know that my grandfather, C. E. Boydstun, and my father, John E. Boydstun, served as Presidents of the Bakersfield Association of REALTORS® in 1945 and 1952, respectively. As the sun starts to set on my year as your 2017 President, I get to join the ranks of the term “Past President”.

I am honored and humbled by serving for this one year. It was amazing and incredible, and I thank everyone for the support I was shown. I now get to join the ranks of so many of the wonderful and brilliant Presidents that came before me that set the landscape and helped to shape the future because of their own vision and values for our Association.

Our future is bright and our future leadership is even brighter. Our membership has so much to look forward to under the leadership of Mr. Derek Sprague, in combination with his leadership team!

Thank you for giving me the honor and privilege to serve as the 2017 President of the Bakersfield Association of REALTORS®!

True leaders don’t create followers; they create more leaders!

T

op of the morning’ from Ireland!

Ireland is a country rich in history and folklore, as well as being one of the most lush and picturesque countries I’ve ever had the privilege to experience. The people are absolutely charming and always willing and eager to share a good story. During a brief conversation with a young lad at our hotel in Dublin just this week, I was commenting on the lush beauty of their country side. He very graciously acknowledged my compliment, then with a slight smile and gentle tilt of his head, reflectively commented, “’It’s not always as green as it looks”. Over the next couple days, his comment kept echoing in my mind.

Now, I consider myself to be a very positive and optimistic person, but I began to contemplate the number of times I may have made a similar comment. I try very diligently

to see the best in others and whatever the circumstances. Please don’t misunderstand, I don’t mean to imply that I choose to see things through “rose-colored glasses”, because that can truly color the truth as well.

For the young lad at the hotel, Dublin was all too familiar. For him the truth is that warm, sunny days are the exception, not the rule; but rather 150 to 225 days of grey skies, rain and gusty winds per year. From a tourist’s perspective, the land is beautiful and lush with the wind and grey skies being embraced as part of the country’s endearing ambiance. Pragmatically speaking, thinking something is better than it actually is because of our lack of familiarity, or neglecting to acknowledge the truth about something because we are in search of something new, different, or perceived as “better’,

are both misguided perceptions.

Perceptions regarding leadership can also be misguided. For some, leadership may be perceived as the exception and not the rule… it is only for a select few, but not necessarily for me. It may also be perceived as a position of prestige and power. Neither of these perceptions is true! The truth is, leadership is about influence, nothing more and nothing less… If you have a heart for service and are passionate about being an inspiration to others, your moment of choice is now.

Take action and get involved! Also, seek the wisdom, insight and inspiration from other leaders. They understand the importance of encouragement and mentorship, because they were once right where you are. There may never be a better time than now to begin your leadership journey. Make your choice today!

BAKERSFIELD REALTOR® MAGAZINE

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BAKERSFIELD REALTOR® MAGAZINE

NAR’s New CEO

Wants to Hear from Members

contribution by

BOB GOLDBERG

W

CEO, NATIONAL ASSOCIATION OF REALTORS®

hen Linda Jay reached out to me with a request to submit an article for the Bakersfield REALTOR® magazine, I immediately agreed. When I became CEO of the National Association of REALTORS® in August, I promised that NAR would break down the perception of being removed and in an ivory tower. This is the perfect opportunity of how I intend to make true on my word.

An essential aspect of communications, often that is overlooked, is listening. It has often been said that we were given two ears and one mouth for a reason. We want to hear directly from our members – that includes brokers, agents, and our industry partners. What are your frustrations? What are your fears for the future? What are your day-to-day concerns within your businesses?

How can NAR better serve you?

Social media is an excellent tool for allowing us to hear from our members. I encourage you to follow and engage with my NAR colleagues in areas that are of most interest to you. I’ll take the lead by encouraging you to follow me on Facebook at RealtorsCEO. To follow me on LinkedIn, just search Bob Goldberg.

To help us become better listeners, I want to take us beyond cyberspace and into the real world. Toward that end, I’m implementing an Executive Outreach Program in which every NAR vice president

and senior vice president will be tasked with strengthening relationships within a specific region. This includes forging relationships with RVPs, local and state AEs, association and board leadership, and brokers and members in the area.

Furthermore, to better collaborate with our local and state REALTOR® associations, I want to build on the success of recent Members’ Edge and Brokers’ Edge programs and take them on the road to locations and regions nationwide. These events are high touch with a high impact, providing us the opportunity to connect with our membership in a more personal environment. You’ll hear more about these initiatives shortly.

Finally, effective communication can only happen when everyone involved is engaged.

To that end, I encourage you to take advantage of NAR’s resources and offerings

on the platforms and topics that are most useful to you.

For a broad overview of everything from research to public policy to REALTOR® benefits to consumer trends, follow NAR’s main social feeds on Facebook, Twitter, Instagram, and yes, even LinkedIn(!) @NARdotRealtor.

To stay abreast of current industry news and business trends, sign into nar.realtor and subscribe to NAR’s daily real estate news, and to get monthly marketing and business tips, subscribe to NAR’s Business Tips enewsletter (See photo below).

The National Association of REALTORS® is here for one purpose: To help our members become more successful in the businesses. I promise we are here to listen to you. When we hear about your concerns, they will be our concerns. Together we will turn them into all of our successes.

BAKERSFIELD REALTOR® MAGAZINE

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NAR’S 2016

proofed

LEADERSHIP SUMMIT IN CHICAGO

It was a time of learning and inspiration for our incoming 2018 President

Derek Sprague

Lyrics to Own it!

Watch the walls come down; believe it here and now, and the doors will open.

This is your moment; Own it!

Think of all the years that led you to this.

Look around and you will find everyone who knows that you can do this; who were with you all the time.

So come enjoy the ride, you are not alone.

We’re in this together now; you’re finally home – so; Go ahead and take a chance, the love you find won’t ever let you fall; you’re gonna have it all – just Own it! ©2017 Words and music by Elizabeth Mendenhall and Benton K. Stokes. Songs From The Basement (BMI). All rights reserved. Used by permission.

NAR’s 2018 Leadership Summit in Chicago – President Elizabeth Mendenhall’s theme: REALTORS® Own It

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2018 President Derek Sprague, with Beth Hall, 2018 President of the Tehachapi Association of REALTORS® BAKERSFIELD REALTOR® MAGAZINE

Connect the Dots

ll l

Derek Sprague brings Multi-generational Legacy to His 2018 Presidency

I

am eager, humbled and inspired to serve as the 2018 President of the Bakersfield Association of REALTORS®. I do not take this privilege lightly… and have many role models to thank for building a strong foundation for me, starting with my dad.

Just as 2017 President Midge Jimerson celebrated the multi-generational legacy of her family in real estate, I first learned this industry from my father. It began when I was a child running around his office playing with the giant microfiche machine and walking the building with a measuring wheel. It wasn’t until I obtained my real estate license in 2005 that he taught me how to use those tools, but that wasn’t the point. I have spent my career aspiring for my father’s patience, wisdom, and meticulous work ethic, and I am thankful for our opportunities to be successful together.

“If you would not be forgotten as soon as you are dead, either write something worth reading or do something worth writing” — Benjamin Franklin

Serving in a variety of roles at the Bakersfield Association of REALTORS® has given me the opportunity to make

relationships with colleagues that I otherwise would have never made. From the past presidents who laid the groundwork before me, to the new licensees that I popped in on unannounced during REALTOR® Orientation, I have enjoyed meeting new people and building deep bonds with REALTOR® friends. And… it is with the encouragement and support of my colleagues that I take on this role… so here we go…

Creativity is just connecting things —Steve Jobs

My theme for 2018 is Connect the Dots. That is, identify how the traits that make REALTORS® successful are interconnected, and part of our role as the Bakersfield Association of REALTORS® is to connect these dots together to make our members successful.

There are a lot of “dots” that make an impact on our industry. Some dots are bigger than others…but they are all important and relevant. Some REALTORS® want to take their success a step further by connecting the dot to giving back. A new generation of millennials is ready to connect with the wisdom of veterans. We are constantly challenged to stay connected as technology develops and cultures change.

“We make a living by what we get, but we make a life by what we give.”

— Winston Churchill

This goes beyond our Association.

REALTORS® have to Connect the Dots with our local community by continuing to make an impact. Over the last several years, REALTORS® have contributed significantly to supporting children through alliances with the Boys and Girls Club and Ronald McDonald House, to raise money for cancer research/ support with our REALTOR® Team, Bringing Home the Cure, to veterans by raising money at our annual golf tournament, and much more.

One of my goals for 2018 is to make sure the community knows the direct impact a REALTOR® makes locally. There is no website, there is no app, and there is no device that will replace the influence that our membership makes on our neighbourhoods.

So how do you Connect the Dots? Get involved… join a committee… contribute to the REALTOR® Action Fund… or if you aren’t convinced about connecting any dots, reach out to me directly and give me ten minutes of your time to share why my entire leadership team and I are dedicating countless hours to serve the industry.

I am excited to work alongside the Executive Team, Directors, and the rest of my entire leadership to make 2018 a successful year for the Bakersfield Association of REALTORS® and its members.

BAKERSFIELD REALTOR® MAGAZINE

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Time as C.A.R. President Draws to an End Geoff McIntosh reflects on C.A.R.’s accomplishments

on housing with a diverse group of

contribution by

GEOFF MCINTOSH

I

participants, including outside the real

C.A.R. PRESIDENT

estate industry. The institute held numerous

joined C.A.R.’s Leadership Team a little

events this year aimed at addressing

more than four years ago as your 2014-

California’s housing affordability woes.

15 Treasurer, but it seems like it was

We had many other accomplishments

just a few weeks ago. As much as I would

this year as well. We launched a new car.

like to stay on forever, my time as president

org website early in the year, (see below)

is drawing to an end. I believe so strongly

an endeavor that took many months and

in REALTORS® and the work that you do!

REALTOR® focus groups so that we could

These past four years have been extremely

better serve C.A.R. members and give them

rewarding for me, both personally and

the information they want, the way they

professionally. By allowing me to be your president – a responsibility that I took very seriously – I have been able to work on

want it. The Association also expanded its

GEOFF MCINTOSH C.A.R. PRESIDENT

your behalf to advocate for homeownership and private property rights. During my presidency, I hope I have been able to help all C.A.R. members to conduct business more efficiently so that you can better serve your clients.

California’s homeownership rate has alarmingly fallen to an all-time low in just a few short years. Homeownership has always

ASSOCIATION OF REALTORS® holds dear. We MUST find ways to create more opportunities for homeownership.

As part of that effort, one of my goals was to grow C.A.R.’s Thought Leadership

PHOTO: CAR Government Affairs

C.A.R. President Geoff McIntosh addressing California REALTORS®

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BAKERSFIELD REALTOR® MAGAZINE

of various demographics, and to help people work with California’s diverse clients.

...my time as president is drawing to an end. I believe so strongly in REALTORS® and the work that you do!

been the traditional way to attain wealth and security. It’s a value the CALIFORNIA

Inclusivity Initiative to reach REALTORS®

C.A.R. will continue to concentrate on solutions to solving our state’s housing crisis, outreach to ALL our members through our Inclusivity Initiative and work to preserve property rights for our clients.

It’s a HUGE job, but I know we’re up to the challenge. We ARE the authority on housing in California!

Although I’ll turn the gavel over to

Initiative through its Center for California

our 2018 President Steve White early

Real Estate (centerforcaliforniarealestate.

November, I won’t be “done.” I’ll never

org), which was launched in 2013. The

stop advocating for you, for C.A.R., our

institute is dedicated to intellectual

industry, and for our clients. I sincerely

engagement in the field of real estate and

thank you for all that I have learned

encouragement of dialog and discourse

from you.

WEBSITE: car.org

C.A.R. launched the new design of their website, car.org early this year

Alternatives to PACE

P

roperty Assessed Clean Energy (PACE) financing has been removed from the City of Bakersfield and the County of Kern. What now? The Bakersfield Association of REALTORS® supports and promotes energy efficiency and water conservation. Here are some alternative options for financing energy efficient and water conserving upgrades.

1. Home equity lines of credit 2. Traditional financing 3. Credit card financing 4. Cash 5. In-house financing 6. PowerSaver Home Energy Upgrade — Up to $7,500 This unsecured consumer loan is intended for smaller projects (e.g., insulation, air and duct sealing, water heating, replacing heating and cooling equipment, etc.). It does not require a home appraisal or lien on the property.

Single-family homeowners may qualify for the loan if they have manageable debt and a credit score of 660 or higher. Interest rates vary, but typically range from 4.99% to 7.75%.

PowerSaver participating lenders, markets, and contact information is available here.

7. PowerSaver Second Mortgage (Title I) —Up to $25,000 This Title I loan is intended for financing larger retrofit projects, including energy efficiency, PV, solar hot water, geothermal, or other renewable energy projects. A home appraisal or equity is generally not required, but PowerSaver lenders may request it if required by their investor. Borrowers cannot currently have an existing home equity loan, a second lien, or second mortgage to qualify

for this product. Interest rates vary, but typically range from 4.99% to 9.99%, and the maximum loan term is 20 years. PowerSaver Title I participating lenders, markets, and contact information is available here.

8. PowerSaver Energy Rehab (203(k)) — First mortgage up to FHA loan limits This 203(k) loan is for home purchase or refinance, targeting either home buyers wishing to combine home improvements with a home purchase or homeowners wishing to include home improvements when refinancing an existing mortgage. It is FHA-insured up to 100% for a home purchase or refinance, plus the cost of a home improvement project.

Current loan limits for a single-unit property vary by area from $217,500 to $625,000 (higher amounts are permitted for two-, threeand four-unit properties); specific loan limits for an area can be found at this website. In order to qualify as a 203(k) PowerSaver loan, at least $3,500 of the home improvements must consist of eligible PowerSaver measures.

Continued on page 32 BAKERSFIELD REALTOR® MAGAZINE

REA LTOR A DVOCACY… LET YOUR VOICE BE H EARD ®

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LEADERSHIP ACADEMY

Academy Creates Unique Experiences contribution by

SHERI ANTHES

Coldwell Banker Preferred, Ming

“I love it when a plan comes together”, is often declared when dedicated efforts lead to success, how apropos it was originally uttered by the Leader of an A Team.

The initial vision of our Leadership Academy was clear: create a program to educate, enlighten, and groom individuals for future leadership roles; introduce participants to opportunities within the Real Estate Industry, but also to expose them to local, state and national potential. Structure was easy, as there are many successful academies to reference and build on. Our challenge was to create an experience that was unique and different. I’m proud to say, nothing could have prepared us for the stunning success of our 2017 Leadership Academy.

OUR GOALS WERE CLEAR AND CONCISE: n Develop service minded REALTORS® who seek to be leaders in our Industry n Identify REALTORS® who demonstrate leadership potential and an interest in the REALTOR® organization, its history, and goals n Improve leadership competence and cultivate the potential of future leaders n Develop practical application and increase understanding of leadership roles within the Association n Develop the skills needed to have a positive impact on your community n Recognize that effective democracy involves individual responsibility, as well as individual rights

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BAKERSFIELD REALTOR® MAGAZINE

n Better understand the REALTOR® code

and how it differentiates us from other organizations. Develop the characteristics of an ethical leader. Focus on trustworthiness, fairness, responsibility, respect, care, and citizenship n Motivate participants by increasing their awareness of real estate and association management issues and challenges, and involve them in problem-solving activities on issues of current interest n Gain a deeper understanding of the tripartite method of governance through N.A.R., C.A.R., and the Bakersfield Association of REALTORS® We launched with a solid agenda of talented speakers and presenters, each carefully selected based on experience, knowledge and qualifications. During the course of the year, the Academy interacted with past C.A.R. Presidents and Directors, County Supervisors, City Council members, and elected officials,

along with other key figures in positions of leadership.

Without exception, Legislative Days in Sacramento will stand out as one of the most memorable. A mass gathering of REALTORS® overwhelms the senses with a contagious excitement. It truly must be experienced in person to grasp the enormity of the event. The twelve members of the Academy personally met with our State Legislators, C.A.R. Directors, and C.A.R. PAC Director. These sessions provided insight into the power of the REALTOR® Party and how our influence is respected at all levels of government. Each day was full of challenges, some planned while many were spontaneous and unexpected.

Nothing can describe the thrill of walking the back halls and secret alcoves of the State Capital building, or climbing to the top of the Dome for a breathtaking view. We owe a very special thank you to Vince Fong and Rudy Salas who created moments and memories that exceeded anything we could have scripted.

There is no doubt each member of this first Academy will take away a unique and personal perspective of their journey and how it changed them. Early on it was clear there were exceptional gifts and talents within this group.

This shared experience allowed an opportunity to unlock their individual potential.

I’m proud to announce every member of this Academy has embraced a key position on our 2018 Team. As they step into these roles, we will all be blessed by the energy and commitment of these dedicated REALTORS®.

Leadership Academy creates a video that showcases and promotes the Association’s programs, products and services.

This Year’s Theme is

“Why Leadership?”

WHY LEADERSHIP? For the past 112 years, our Association has been blessed and privileged to have an exemplary lineup of leadership representing us not only at our local Association level, but also at the State and National levels as well. The California Association of REALTORS® and the National Association of REALTORS® provide local Associations with an impressive array of resources to help prepare their leaders to step into leadership roles, while also challenging them to grow more leaders for the years to come. One such resource provided by the California Association of REALTORS® at each of their meetings, is an educational and networking forum. Each year the current-seated Presidents are invited to create and share a video that showcases and promotes their Association’s programs, products and services. This year the theme of the video was “Why Leadership”. As this was the first year of our newly-created Leadership Academy, President Midge Jimerson engaged our Academy members to develop the content and produce the video to submit to the Leadership Forum for October’s meeting… and what an amazing job they did! The content of their video included the top ten reasons for leadership.

7. Vision – Be part of the solution & protect our future. “Leadership creates the opportunity to influence the future!”

They are as follows:

Why Leadership Cast

10. Get Involved! Make a difference!

“Great leaders don’t set out to be a leader, they set out to make a difference! It’s not about the role. It’s about the goal.”

9. It makes our business better!

“Don’t wait for opportunity. Create it!”

8. Personal growth – knowledge is power. “In order to unleash the power of the mind, you must have knowledge. I will continually seek opportunities to learn and grow.”

6. Courage – Promote and protect home ownership! “Strong people stand up for themselves. Stronger people stand up for others.”

5. Bringing people together – Unity/ Strength/Solidarity. “Together we will always win!”

4. Influence/Inspire – lead with our actions. “If your actions inspire others to dream more, learn more or do more, you are a leader.”

3. Service – Giving back to our community. “We make a living by what we get. We make a life by what we give.”

2. Develop/grow future leaders. “True leaders don’t create followers, they create more leaders”.

1. Why leadership? Because it’s not about me!

We are very proud of the creativity and commitment of our Leadership Academy for their work in a producing a product that conveys the importance of investing in their own personal growth as well as the growth of our Association!

Executive Leadership Team: Midge Jimerson, Derek Spraque, Athena Collup, Ronda Newport and Scott Knoeb Leadership Academy Team: A.J. Bhuee, Nik Boone, William Chicas, Melinda Clemmer, Michele Cooper, Vanessa Hartwig, John Houchin, Jenny Magana, Bill Mell and Vali Nemetz C.A.R.: Candidate for 2019 President Elect – Jeanne Radsick Videographer: Curtis Nemetz BAKERSFIELD REALTOR® MAGAZINE

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Veleska (Vali) Nemetz, Local Broker Receives

Scholarship from REALTOR® University Congratulations to Veleska (Vali) Nemetz on obtaining a scholarship from REALTOR® University.

students to a unique network of likeminded professionals. Students also receive access to the largest real estate library on the planet, with the majority of materials available in a digital format. At our online REALTOR® school, professionals are offered an extraordinary opportunity to explore and experience the world of real estate, and discover new ways to advance their future.

About Vali Vali Nemetz was born and raised in Bakersfield California. Her grandfather, Earle Gibbons had instilled in her the love for real estate and investment at an early age. Vali was also exposed to new construction early on when her uncles, Gibbons and Wheelan, built her childhood home and started their company.

Vali attended Cal Poly San Luis Obispo where she graduated with a degree in business.

It was there that she met her husband Curtis, and now they have 4 children.

Vali has worked as a broker for a local custom home builder in Bakersfield since 2007. She is currently the sales and marketing manager for John Balfanz Homes. Vali received the award for top 30 under 30 by the National Association of REALTORS® in 2012. Vali absolutely loves real estate and is passionate about seeing the industry grow and evolve to best serve the community and future home buyers.

Vali states “Being a part of the leadership academy this year has helped me grow and challenged me in so many ways. One way that I have been challenged is to continue my education and get my MBA in Real Estate.

I started researching programs right after I returned from our trip to Sacramento [for Legislative Day]. In June I took the GMAT and started applying to schools. I landed on REALTOR® University after I saw the caliber of professors that taught and how specific the program is to the industry I love. I am confident that this education will enhance my ability to serve home buyers and sellers in the future. Once I was accepted into the program I began pursing scholarships to help offset the cost. I recently found out that I was awarded The President’s Grant! Through this generous grant, I will end up paying 1/3 of what I was anticipating. I am incredibly grateful and excited to continue learning and pursing my future goals. Thanks for all your support and for the support of the Association. I know I would not have done it without the leadership

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BAKERSFIELD REALTOR® MAGAZINE

VALI NEMETZ BROKER, academy and the influence our community leaders have had on me this year.”

About REALTOR® University – Graduate School of Real Estate REALTOR® University’s graduate school allows students to expand their education in what they know best: real estate. With a unique blend of practical and applied learning, students will be able to use this education to advance their careers and better their business and their lives.

REALTOR® University students gain access to an unmatched library of resources, and a deeper understanding of how specializing in specific markets, such as buyers and sellers 50-plus, or commercial real estate, can increase their business and referral opportunities.

REALTOR® University’s graduate students study key aspects of both business and real estate, with a unique balance of applied and practical learning. With five available concentration areas ranging from Asset & Property Management to Real Estate Association Management, their tailored curriculum allows students to focus on the aspects relevant to their business and career goals.

REALTOR® University’s global online campus welcomes real estate professionals from all over the world to one real estate REALTOR® training school, and connects

History One of the strategic initiatives in the National Association of REALTORS® strategic plan is to “improve the competency and professionalism of REALTORS®.” Under this strategic initiative is a business practice that “NAR promote the creation of advanced real estate degree programs, as well as other types of educational training for members.”

The idea for transforming REALTOR® University into a degree granting institution emanated from a 2008 National Association of REALTORS® Advisory Group on Professionalism in the industry. The group was charged with recommending ways to improve real estate practice and to ensure the REALTOR® mark is perceived as an assurance of experience and professional service.

Assistance for Qualified and Committed Candidates We want the brightest and most motivated individuals attending our University. We realize that possessing these qualities does not necessarily mean you have the resources to pursue advanced education. That is why we have established a scholarship foundation to provide financial assistance to qualified and committed candidates.

The program was created in cooperation with the National Association of REALTORS® and its Institutes, Societies and Councils, local REALTOR® Associations and Boards, real estate companies, and others. If you are interested in applying for a scholarship, please contact the Admissions Office at 855-786-6546 option 1, or email at admissions@realtoruonline.net.

To date, the Graduate Program has awarded partial scholarships to over sixty students. Congratulations, Vali!

2018 Chair Nik Boone

Excited for the future of YPN contribution by

NIK BOONE

YPN stands for Young Professionals

2018 YPN Chair Ascend Real Estate

“A

s chair of the YPN for the year 2018, I think it is important to incorporate as much useful information as possible for all members of the board. I believe that education is the only thing that separates the good from the great, and people who are always willing to learn will have no cap on their life or income.

That’s why this year we are really putting emphasis on educating the members in a fun and interactive way, along with putting on some great events for the benefit of our local charities. Our local YPN has done an amazing job of this in the past, and we want to continue the tradition. With our annual events continuing to get better every year, and new event ideas from local and state support, we are ready to bring about a lot of energy, fun, and educational events. Our plan is to engage with even more members, and help the new and seasoned REALTORS® with new technology, new information, and the future of the real estate sector.

n Broker/Owner, Ascend n 2018

Real Estate

YPN Chair

n YPN

Advisory Committee Member Chair n Bakersfield Life 20 Under 40 n NAR 30 Under 30 nominee n Technology

Network, but the organization truly benefits a wide variety of ages, skills, experience, and much more. I believe that each person, regardless of generation, has something to offer, and new members seeking to learn

from members of all generations can come to any of our events or meetings and take as much information as they would like! With so much information out in the world and new competition entering our market every month, the goal this year is to inform first, and help continue to keep our real estate market in our hands.

The Association also has a lot of new technology and benefits becoming available in the coming 12 months. With those resources comes a lot of training and communication, but most importantly it helps our consumers and members experience the joys of real estate in an easier and more efficient way. This year we will also be looking at the future and trying to stay ahead of the technology curve, while helping protect the REALTOR® Party as well.

All in all, we are looking forward to a great year of fun and helpful learning from the YPN. We are excited to expand and better our events and help more and more members!

If you have any interest in joining or getting our calendar of events don’t hesitate to reach out to me! “ BAKERSFIELD REALTOR® MAGAZINE

15

People First, ALWAYS!

KELLY LEVINE, Graham and Kelly Fine Homes RE/MAX Associates, REAL TRENDS

Growing up in a real estate family, this sales associate learned lessons from some of the best in the industry.

Real estate is often mistaken as a business about houses, but I disagree. To me, real estate is a business about people and service.

As real estate professionals, we get the rare privilege of walking alongside our customers through their greatest life changes. When people get married, they hire a wedding planner. When they have their first baby, they work with a registry consultant. Investing or retiring—they work with a financial planner.

As real estate professionals, we have the opportunity to assist with all of those life events. We are people’s advisors and advocates through some of the most exciting and challenging times of their life. We have a massive opportunity to impact our customers and a huge capacity to care.

You Have to Care One of the first persons who taught me the magic of caring was my grandfather.

He was the quintessential people person.

He was exceptionally good at quickly connecting with people on a deep level.

Most people thought of him as a classic

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BAKERSFIELD REALTOR® MAGAZINE

extrovert, but it didn’t come naturally. He read Dale Carnegie’s “How to Win Friends and Influence People” several times. He worked on being gregarious and often thought of himself as just a farm boy from Wisconsin—though you’d never know it. He achieved massive success within the real estate industry, and I think it was due, in large part, to his gift for caring and connection.

My grandfather told me many times that we have two ears and one mouth for a reason, so we could listen to people twice as much as we talked. And, he was an exceptional listener. He had this incredible ability to listen in such an intense way that it felt as if you were the only person in the room. I knew it was something I wanted to practice in my own real estate business. It sounds simple, but in our fast-paced world and tech-driven industry, it doesn’t come easily. Even though it isn’t easy, it’s still incredibly important.

Making people feel heard is a powerful tool that can have a huge impact on our business.

Nurture Your Customers This concept of people first, always doesn’t just apply to customers; it applies to colleagues and staff as well. My grand-father nurtured his customers and empowered his staff. The people who worked for him wanted

to perform, and I work to inspire the same dedication in my team. I was recently told when discussing my team, that all of its members are “replaceable cogs in a wheel.” That doesn’t sit well with me. I understand that we all have a role to play, and if someone is not a good fit with our team’s culture or doesn’t believe in our mission, then they may not be a good fit.

But, when I heard that, I couldn’t help but wonder what my grandfather would think.

He would probably feel like I do, that people aren’t replaceable parts, but the heart and soul of what we do. The people we work for and the people we work with.

I have found that the more I care; the more I give. And, consequently, the more I thrive as a real estate professional. It’s why my team donates to The Children’s Miracle Network, St. Jude and Shoes That Fit. It’s why we do everything we can to support and nurture our community. It’s why we work to provide fivestar service to our customers and why I do what I can to encourage my team members.

I learned this from a man who gave his time, energy and resources to people all around him—and loved being able to do it.

This article reprinted with the permission of Real Trends Inc. Copyright 2017

Welcome, New Members!

SUCCESS

CONGRATULATIONS TO OUR NEW REALTORS®

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

Abdalkareem Hifdhuulah Alrowhaany, Coldwell Banker Preferred, Ming; Lorena Ayon, Miramar International, Downtown; Courtney G. Baker, Century 21 Tobias Real Estate; Katie Bassey, Keller Williams Realty; Manpreet S. Behl, El Centro Hispano Realty; Robin D. Blanquette, Century 21 Tobias Real Estate; Cristabelle Camacho, Platinum Real Estate, Inc.; Jacie L. Castellon, Keller Williams Realty; Rachael Connor, Premier Realty; Sandra J. Corbin, McMurtrey Realty; Casie S. Cortez, RE/MAX Golden Empire; Rigoberto Cruz, RE/MAX Golden Empire; Mitchell A. Dela Cruz, SearchKern.com Miramar International, Riverwalk; Laura Ann Devin – Clark, Platinum Real Estate, Inc.; Ana C. Garcia, Open Door Real Estate; Susan Harlander, Keller Williams Realty; Kari Lynn Jackson, Miramar International, Riverwalk; Leslie P. Johnson, St. Clair Realty; Lewis D Kootstra, Miramar International, Downtown; Cassandra L. Lawhon, Platinum Real Estate, Inc; Heath M. Lawson, Servando Rocha, Broker; Laura M. Lopez, California Home Pros; Jose Medina, Solutions Realty, Inc.; Katelyn M. Montalvo, Magic Real Estate; David S. Norris, Keller Williams Realty; Tina W. Pounds, Keller Williams Realty; Jacob P. Ramos, Platinum Real Estate, Inc.; Hadley M. Regan, Keller Williams Realty; Mary J. Romero, Open Door Real Estate; Brenda M. Roush, Platinum Real Estate, Inc.; Brenda M. Roush, Platinum Real Estate, Inc.; Ashley N. Schott, Miramar International; A.J. Shaheen, Stratton Davis Realty; Ronald S Wareham, Bakersfield Real Estate Service; Manuel T. Zaragoza, Bahena Real Estate Group Inc. realtors ® september

Alejandro Aguiar, Coldwell Banker Preferred, Ming; Yamilet Alamillo Sanchez, Stratton Davis Realty; Lori D. Allegranza, Fenton Real Estate; Heidi Y. Bailey, Keller Williams Realty; Joseph A. Barajas SearchKern.com Miramar International-Riverwalk; Christine M. Bautista, Delano Real Estate, Inc.; Natasha D. Berry, Keller Williams Realty; Juan Manuel Bustamante, Intero Real Estate Services; Melany M. Coletti, Keller Williams Realty; Noe Figueroa, Platinum Real Estate, Inc.; Salvador Gonzalez, Wilkerson Realty; Alicia A. Rolin, Watson Realty ERA; Truman O. Hance III, Coldwell Banker Preferred - CO; Ernesto M. Osuna Hernandez, Intero Real Estate Services; Ravinder Kaur, Intero Real Estate Services; Lynore D. Laba, McKinzie Nielsen Real Estate; Veronica S. Madera, Stratton Davis Realty; Marie Anne Morris, Coldwell Banker Preferred - CO; Aneliya I. Mota, Coldwell Banker Preferred, Ming; Zachary C. Newman, Keller Williams Realty; Ruth N. Panameno, Keller Williams Realty; Tarah Poochigian, Watson Realty ERA; Sherah A. Richardson, SearchKern.com Miramar International-Riverwalk; Keith Salgado Rocha, Intero Real Estate Services; Angel Anselmo Salinas, Daniel & Company Real Estate; Khaled Shakta, Real Estate eBroker Inc.; Heidi N. Sherman, Watson Realty ERA; Jesus D. Sifuentes, RE/MAX Golden Empire; Judith M. Whittington, Platinum Real Estate, Inc.; Samantha K. Wise, Watson Realty ERA; Maria L. Wright, Coldwell Banker Preferred - CO; Gerardo Zermeno Jr., Open Door Real Estate BAKERSFIELD REALTOR® MAGAZINE

17

of

Code

Ethics

& Joe Newton

Compensation Commissions

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BAKERSFIELD REALTOR® MAGAZINE

contribution by

JOE NEWTON

W

Ombudsman

ithin the CODE OF ETHICS are provisions that affect how REALTORS® communicate with their clients regarding commissions and

compensation. The provisions apply to listing agents as

DUAL OR VARIABLE RATE COMMISSIONS (SOP 3-4): Article 3 discusses variation of commissions payable from single or dual agency transactions and are to be disclosed to cooperating agents as soon as practical and such information must be disclosed to a buyer prior to making an offer to purchase.

well as cooperative agents and/or buyer’s agents. These

PROCURING CAUSE: Discussing what procuring

provisions should carefully be adhered to in discussions

cause is should be discussed with a licensee’s client as

with clients about these subjects.

soon as possible. To be the procuring cause of the sale,

LISTING BROKER COMMISSIONS (SOP 1-12):

the cooperating agent must show material involvement

At the time of a listing, Standard of Practice 1-12 states that the listing broker must advise the seller or landlord of the company policy regarding cooperation and the amount of compensation that will be offered

in the uninterrupted series of events that result in the sale or lease of the property. There are no predetermined rules established and each outcome must be determined by the individual facts of the transaction.

buyers or tenants. This applies to REALTORS®

CHANGING THE LISTING OFFICE OFFER OF COMPENSATION (SOP 16-16): Article 16 is very

participating in the MLS and /or brokers acting in

clear in stating that REALTORS® shall not use the terms

legally recognized non-agency capacities. The seller

of an offer to purchase/lease in attempting to modify

will understand that the real estate company and not

or make contingent that offer upon the listing office

the seller makes the MLS offer of compensation as

changing the commission.

agreed by the seller’s instructions. The next (SOP 1-13)

WORKING WITH FSBO (SOP 16-11): On unlisted

to subagents or buyer’s agents working with potential

essentially requires the same discussion when entering into a buyer/tenant agreement.

BUYERS OR TENANTS FROM PREVIOUS LISTINGS (SOP 16-14) In Article 16, Standard of

property, REALTORS® acting as a buyer/tenant representative shall disclose that relationship with the seller/landlord at first contact and the REALTOR® shall also make any request for anticipated compensation

Practice 16-14, REALTORS® are free to enter into

from the seller/landlord at the first contact.

contractual relationships or to negotiate with sellers,

ASKING BUYER IF THEY ARE A PARTY TO ANY EXCLUSIVE REPRESENTATION AGREEMENT? (SOP 16-13): Finally, a very important reminder

buyers or others who are not subject to an exclusive agreement but shall not knowingly obligate them to pay more than one commission except with their informed consent. At the time of listing, the licensee should determine if there are protected buyers or tenants from previous listings.

COOPERATION vs. COMPENSATION (SOP 3-1):

to all REALTORS® that before writing a purchase offer or

2017 OMBUDSMAN REPORT JULY - AUGUST

present a CMA to

n

prospects, they are

n

In Article 3, it states that REALTORS® shall cooperate

to ask whether they

with other brokers except when cooperation is not in

are a party to any

the client’s best interest. Cooperation does not include

exclusive representation

the duty to share commissions, however, REALTORS®

agreement. Based on

who participate in the MLS, once the offer to

the buyer’s answer,

compensate is made to members, the cooperative broker

this will determine the

may earn the MLS offer of compensation by becoming

proper protocol for a

the procuring cause of the sale.

REALTOR® to follow.

180 calls were received by our Ombudsman

35 calls were grievance/ethics complaints against agents that were resolved 3 calls were arbitration complaints against agents which were resolved n

1 grievance/ethics package mailed out to complaining party n

1 arbitration package mailed out to complaining party that couldn’t be resolved n

73 calls requesting information on real estate procedures n

n

40 calls requesting information on deposits

n

1 anonymous call

n

23 cases referred to Association mediation

n

3 Kern River Lake Isabella calls

n

735 Year-to-date total

22016 017

AS SOC IATION

H IG H L I G H T S

YPN Softball

A N D

CEL EB R AT IO N S

Golf Tournament

This committee continues the legacy of our annual Golf Tournament, which began 56 years ago. They plan, promote and coordinate the Golf Tournament in a relaxed setting and environment that promotes goodwill and fellowship. Most importantly, they work diligently to raise funds for various local charities.

A day filled with friendly team rivalry and fun for everyone Members pulled together to make the Annual YPN Softball Tournament a home run. It was a fun-filled day with a bit of friendly rivalry between members at the Mesa Marin Sports Complex. This year’s coveted trophy was won by the Keller Williams Team.

Career Booster

The Education Committee gathers some of our very own superstars. It’s always a great opportunity to sit down with some of our heavy hitters who are more than willing to share their experiences, describing what made them successful in a very unpredictable industry. It’s about providing courses that will assist members in maximizing their ability to successfully conduct their individual businesses.

Education

Fight Against Cancer

Our Education Committee serves members by providing, promoting and developing timely, high-quality educational opportunities for members. It provides courses that will assist members in maximizing their ability to successfully conduct their individual businesses. Led by Chair Doreen Lane, and Co-chair Debi Roberson, who have brought in speakers such as Joel Carlson, Nancy West, Mike Leggett (right) and so much more.

TEAM BRINGING HOME THE CURE Each year our members come together to raise funds and awareness to save lives from cancer. Our fundraising event was an entertaining evening of wine tasting, food and entertainment. The committee and leadership, Ronda Newport and Debi Roberson, raised almost $55,600 for the American Cancer Society and Campout Against Cancer.

YPN

Our YPNers are tomorrow’s leaders today. They have hosted many lunchand-learns and mixers so that they can proactively help and engage our younger REALTOR® members to excel in their careers. They also encouraged other YPNers to participate in Legislative Day activities in Sacramento.

Scholarships

Our Association champions the pursuit of higher education, and in 2017 we granted scholarships to six applicants.

The 2017 recipients were Gracie Bush, Justin Chase, Karli Cordova, William Darby Mell and Lexi Ontivero (not pictured is Justin Chase).

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BAKERSFIELD REALTOR® MAGAZINE

Attendance & Reception

This committee is invaluable to our members.

They always work behind the scenes checking everyone in, or even selling raffle tickets. They’re wonderful at creating decorations for some of our many fundraisers. Their great talent shines every Christmas as this committee decorates the office each year.

F RO M

O UR

VARIOU S

C O MMI T T EES

A N D

EV EN T S

Christian Real Estate Fellowship

Judy Miller organizes monthly fellowship and worship, along with many great speakers. The CREF comes together to encourage and to be encouraged by others, often listening to testimonies of faith. Always set in prayer, with a little worship music to begin the fellowship.

Commercial Investment

Membership Development Orientation

This committee plans and organizes monthly Commercial Investment meetings, including pitch sessions and educational speakers geared towards commercial and industrial real estate. This year’s Chair, Kevin Palla, brought in some heavy hitters, such as Marc Thurston, Billie Sue Records, Coby Vance and so much more.

Equal Opportunity and Diversity

They promote the benefits of diversity and inclusiveness within our organization and community which include outreach activities and initiatives which address our multicultural community and real estate market. This year we partnered again with the Boys and Girls Club.

MLS Open Forum

This forum engages our MLS participants and subscribers for educational purposes,.

It’s about the sharing of information and obtaining feedback from our members regarding various ways to improve.

Membership Development/Orientation seeks ways to enhance the value of membership and plans, and conducts orientation classes every month at the Association. This class is invaluable to new REALTORS®, taught by many of our seasoned REALTORS®, including our own Ombudsman.

Leadership Academy

The Academy’s objective is developing effective leaders who create value within our Association. The newly formed team consist of seasoned Association leaders whose goal is developing effective leaders who create value within our Association.

Technology

REALTORS® are learning how to connect!

Thanks to Nik Boone, our TUG Committee Chair, members have attended several hands-on demonstrations on new technology introduced to members.

Classes included GoMLS, Digital Forms and more. We can’t wait to see what new technology teachings the TUG Committee will bring in 2018!

Review RGR Government Advisory Council

ADVOCACY IS KEY! GET INVOLVED — MAKE A DIFFERENCE! We had a number of speakers this year brought to us by Kim Schaeffer, our GAD. Our guest speakers were very informative about political issues affecting our business and community.

REAAC

PROTECTING THE CONSUMER REAAC is a collaboration between the District Attorney’s real estate fraud unit and Bakersfield real estate professionals.

REAAC members help identify new and old types of fraud and scammer tactics, and educate the public on how to contend with these tactics.

BAKERSFIELD REALTOR® MAGAZINE

21

Check us out…

We have restocked our store with lots of new items just for you.

Visit us today!

Hit Your Target Market!

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

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

The Association has over 1,700 REALTOR® and Affiliate members.

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

SPONSORSHIP OPPORTUNITIES: PRICES RANGE PER ACTIVITY n Newsletter n Educational

Classes

n Networking

Activities

n Community

Outreach

n Special

Events

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

Call now at 661-635-2307

MEMBER RATES WEBSITE Member Advertising Rates Property Search & Partners Page

$400/mo

Property Search Page

$300/mo

PARTNERSHIP LOGO Member Advertising Rates Logo on public website partnership page (with redirect to your website)

$200/ mo.

CONNECTIONS NEWSLETTER Eblast: Member Newsletter

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BAKERSFIELD REALTOR® MAGAZINE

1 time run

$60/blast

4x consec. run

$200/mo

Amazon Reality The Impact…

STEVE MURRAY, Publisher REAL TRENDS

Recently Amazon teased the industry by launching (then removing) a new “Find a Realtor®” service. Pundits jumped all over it. Zillow shares declined and brokers are left to wonder what’s next.

I recall sitting in Zillow Co-founder Rich Barton’s offices a few years back when he commented that, while our industry seemed to be scared of Zillow, he was worried about firms like Amazon, Google and Apple entering the industry in some fashion. We reported on his observations at that time. No one commented then. Perhaps we are all smarter now.

There are three true fundamental building blocks that undergird our industry: 1. What percent of consumers use an agent to buy or sell a home?

2. How do consumers find and choose a real estate agent?

3. Do consumers think that the commissionbased compensation method is fair to them?

The only way large changes can occur in our business is if any one of these big three change.

It doesn’t take a change in all three; it only takes a change in one to have a big impact on our business.

How Consumers Choose an Agent Amazon entering our business with a potential “Find a Realtor” can obviously impact

the second factor. Over 60 percent of all consumers report that they chose a real estate agent through a personal connection. This number is down somewhat from ten years ago when it was closer to 67 percent. Some recent research suggests that consumers are going online to check out agents through ratings and review sites, as well as places like Facebook, Google and others. A trend has already been established. Consumers are looking for agents online more than in the past and selecting them based on what they find.

What might this mean? First, agents and teams who want to be found by online shoppers must be sure they can be found on Amazon. One example of this desire is that 68.5 percent of all individual agents ranked by REAL Trends on America’s Best Real Estate Agents (total of 12,570 agents and teams) and 39.4 percent of all teams have a Zillow or Trulia profile page. Of all agents and teams ranked in this report, 57.3 percent have a profile page on Zillow.

Brokers should expect that their agents will want to find a way to be featured there. This will cost them (or you) more money. If the agents are paying for it, the value exchange between you and your agents will be weakened just a little bit more. Then, Amazon will join Zillow as a well-known and regarded source of such information. It may cause a further decline in the share of consumers who find

their agents online versus through personal relationships. It may expedite the shift of market share to larger producers who can afford placement on Amazon, as has already happened.

I would imagine that sooner or later, Amazon will expand its offering to include some property information and similarly, Google will make its presence felt. There are hundreds of millions of real-estate searches going on each month and millions more watching HGTV. Homes are a hot topic and likely that interest will grow. Where there is an audience, there are those who want to reach and monetize that audience.

There are $70 billion-plus reasons for their interest (commission revenues) not to mention the revenues of mortgage, settlement services, home repair, furnishings and more up for grabs.

One other thing to add: Recently, most of the newspapers in the industry joined forces in an agreement to seek an anti-trust exemption from the Federal government to negotiate content license agreements with Facebook and Google as to how these two large media companies can use newspapers content. Legal experts say it likely won’t happen.

Is that what it will come to in our industry?

Stay tuned.

This article reprinted with the permission of Real Trends Inc. Copyright 2017

BAKERSFIELD REALTOR® MAGAZINE

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YOU HAVE FEWER COMPETITORS THAN YOU THINK. CONSIDER THE FACTS.

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BAKERSFIELD REALTOR® MAGAZINE

Who’s Your Competition?

LARRY KENDALL | Author of Ninja Selling and chairman emeritus of The Group, Inc.

There’s very little real competition in our industry.

Bold statement?

Let’s look at the facts.

1 2 3

An analysis of 1.3 million Realtor® MLS members indicates that approximately 45 percent of them did not have a single real estate transaction in the past year. Nearly half of our industry is not even in

the game! (REAL Trends Newsletter, August 2017)

wants is a packet of information that explains the process before they buy or sell a home. Several years ago, a study by REAL Trends and Harris Interactive

found that only about 20 percent of real estate professionals use these important packets. Eighty percent don’t provide this resource.

6

According to NAR’s Profile of Buyers and Sellers, twothirds of sellers only talk to one Realtor® about listing their house. So, the Realtor is seldom in competition for the listing. Interestingly, of the one-third who

talked to more than one Realtor, half of them only wanted to talk to one, but the first one they met with was so awful that they felt they needed to meet with someone else. The seller’s

Only 25 percent of sellers and 12 percent

response to this real estate professional is usually, “Thank you

of buyers use the same Realtor® on their

so much. This has been great. We are going to think about it.”

next transaction—a sign of poor service

Then, they call a second agent.

follow-up and client retention. (NAR Profile

of Buyers and Sellers, 2016) An amazing 74 percent of buyers and sellers report they never heard from their real estate professional again after closing! Twenty percent heard from them occasionally and only 6

percent heard from them consistently. (Zillow Consumer Housing Trends Report 2016) This statistic indicates that most real estate professionals are transaction driven versus relationship driven. They give lip service to relationships but operate their business as a series of one night stands. They prefer to chase leads rather than stay in touch with their customers who could send them referrals.

4

5

One of the most important resources a buyer or seller

J.D. Power’s Home Buyer/Seller Satisfaction Survey reports that real estate professionals who invest time in keeping their customers informed during the transaction and are

responsive to their customer’s concerns and questions, have a much higher satisfaction rating.

The best real estate professionals know this and are proactive in their communication, knowing that “if the client calls us first during a transaction, we are failing.”

Unfortunately, the research shows that most real estate professionals are not proactive. One of the seller’s and buyer’s biggest complaints is, “I never hear from my real estate professional about my listing/transaction. I always have to call them first.”

Here’s the good and bad news: The bad news is our industry is generally failing to address basic customer needs, let alone create a wow customer experience. The good news is that there’s very little competition in our industry for those who are client-centric and deliver the basic services and communication described above.

This is a very simple business. It does not take a big financial investment in new technology or lead generation systems. It does not take more people. All it takes is training your sales associates to do the following: n Be client-centric. “If you take care of your clients, your clients will take care of you.” n Use buyer and seller packets. Make it easy by providing a basic company packet. n Be pro-active in their communication by always calling their customers first. Encourage your associates to have a set time each week to communicate with their customers during the transaction. n Have an efficient follow-up system for your associates to use after the closing. Help them by creating newsletters, market updates, events, etc. for them to use.

Again, this is a simple business. It’s easy to do!

Unfortunately, it’s also easy not to do—which is probably why most of our industry isn’t doing it. Teach your team to do the basics better than anyone, and you will have all the business you can handle.

Who’s your competition? Look in the mirror. You are your only competition!

This article reprinted with the permission of Real Trends Inc. Copyright 2017

BAKERSFIELD REALTOR® MAGAZINE

25

THE “A TEAM” AFFILIATES IN ACTION

MIKE GEORGE

BARBARA WELLS

Agape Mortgage 661.324.2427

San Joaquin Valley Mortgage 661.703.2227

mikegeorge@agapemtgco.com www.agapemtgco.com

bwells@sjvalleymortgage.com

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

26

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

DEANA WITWER

MELISSA SULLIVAN

Built Right Home Inspection 661.377.7777

The Bakersfield Californian 661.395.7263

Deana@builtrighthi.com www.builtrighthi.com

Msullivan@bakersfield.com www.bakersfield.com

BAKERSFIELD REALTOR® MAGAZINE

PARTNERSHIPS Becoming an Affiliate Member of the Bakersfield Association of REALTORS® gives you the chance to network with REALTORS®. The relationships you create gives you the opportunity to expand your network and assist you in business development. The Association has many activities and events where Affiliate Members have the opportunity to participate.

Collectively, we have a special group of individuals who form a group of loyal, hard-working Affiliate Members called the A Team, who serve the Association in a variety of ways. To achieve the A Team status, the Affiliates must meet the JEFF AGUILERA, Chair following criteria: Cornerstone Mortgage n Attend monthly 661.578.9259 Affiliate meetings jeff@csmbakersfield.com n Attend activities and www.cornerstonemortgage.com events such the MLS Open Forum, Commercial Investment, Career Booster and others representing their company n Volunteer their time and energy to support many of the Association’s programs and activities n Help with grassroots marketing by promoting the Association activities to other members n Contribute raffle items, door prizes, and sponsor programs and special events when possible For their contributions, the A Team Members earn the following opportunities and perks: n Affiliates are highlighted in a feature page in all issues of the Bakersfield REALTOR® Magazine n Affiliates are highlighted in a feature page in all five issues of Bakersfield REALTOR® Digital Magazine n Affiliates are highlighted in our REALTOR® Orientation Workbook n Highlighted on our website with a photo and contact button, along with business information and a redirect button to their website n Affiliates are featured on a constant loop at the Association lobby and community room n Affiliates are given the first opportunity to sponsor key events n Featured on Social Media n Affiliates are listed on our Affiliate roster If you’d like to be part of this special group of Affiliate Members, the A Team, contact Jeff Aguilera, Affiliate Chair, or Linda Marie Carutachugue, staff liaison.

Are You Customer Obsessed? You Better Be Customer Experience is the Real Differentiator

R

DEIRDRE LEPERA, Director of Business Development

eal estate is full of technology solutions targeted at fixing the same problems — database intelligence, transaction management, lead acquisition and marketing to name a few. Many of these platforms offer similar tools and functionality, but what sets them apart, aside from price, is their differentiation in their obsession to the customer’s experience.

According to Forrester, customer-obsessed companies have the highest median three-year growth in sales. To be clear, customer obsession goes way beyond customer service. It’s a complete shift in how a company operates so that the customer is the focus at all times.

For real estate professionals, it’s almost impossible not to be customer centric. No two real estate transactions are the same, even if they involve the same customer. Each interaction with a customer is about providing the best experience possible despite the challenges that come with managing the sale or purchase of an individual’s most valuable asset.

Where REAL Trends is seeing a shift towards a customer centric approach in real estate is with technology partners, most notably those providing online leads.

Increasingly lead generation companies are focused on the experience of both their customers—those filling out the lead capture forms on their sites and those paying for the leads on the other end.

It’s no secret that improperly managed leads

mean missed opportunities for brokerages and sales associates. What it really boils down to though is that unanswered leads create a poor experience for the customer.

In an effort to enhance the customer experience, online lead providers are taking it upon themselves to add services that increase the likelihood of a positive experience initially for the consumer and ultimately for real estate professionals who serve them. Here are three ways we see customer obsession manifesting itself in today’s top online lead providers.

1. Simplicity A simplification of the platform setup across devices is paramount to making user engagement better. Many systems are reducing menu choices to five options or fewer over a streamlined mobile interface.

Hand-in-hand with simplicity is the intuitive nature of the platform. This will continue to increase as companies implement greater artificial intelligence capabilities.

2. Qualification The importance of consistent and timely lead follow-up is nothing new, but is still something that is a work in progress for most brokerages. More online partners are taking this initial first step on behalf of their clients.

Using personable, live people to make that first contact on behalf of the agent or brokerage can shift leads from cold to warm.

3. Actionable Analysis Who doesn’t love a good set of metrics to evaluate productivity? Successful business owners appreciate the value of data reviewed on a consistent basis. Teams and brokerages are finding more partners who are willing to put these data sets together for them and make the time to review performance issues from both sides.

Consider how these three shifts can help you heighten your customer obsession. If you already work with a technology partner to provided fable worthy customer service, we would love to hear your story. Please contact Deirdre LePera at dlepera@ realtrends.com.

This article reprinted with the permission of Real Trends Inc. Copyright 2017

Association Seeks to Assure that Tax Reforms

contribution by

Support Goals of Homeownership

MIDGE JIMERSON

U

Boydstun Realty

nder the current tax law, homeowners are allowed a deduction for mortgage interest paid. The deduction is generally allowed for interest paid on mortgage debt of up to $1 million, and is available for interest on mortgages for a principal residence and one additional residence. The $1 million limitation represents the combined allowable debt on two residences. Mortgage interest on up to $100,000 of debt on home equity loans or lines of credit also qualifies for the deduction.

The Association and its members acknowledge the complexity of the current tax system and seeks to assure that tax reforms support the goals of homeownership and freedom to buy, maintain and sell real estate.

This week a group of legislators and administration leaders, known as the “Big 6”, released an outline for comprehensive tax reform that, if enacted, could lead to a tax on homeownership for millions.

According to the Big 6’s framework for tax reform, changes to the current tax code would eliminate important provisions, such as the state and local tax deduction, while nearly doubling the standard deduction and eliminating personal and dependency

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BAKERSFIELD REALTOR® MAGAZINE

exemptions. The Bakersfield Association of REALTORS® stands with the National Association of REALTORS® and believes the result would all but nullify the incentive to purchase a home for most, amounting to a de facto tax increase on homeowners, putting home values across the country at risk and ensuring that only the top 5 percent of Americans have the opportunity to benefit from the mortgage interest deduction.

The proposal reaffirms our concerns from earlier in the year and we continue to urge lawmakers to keep homeowners in mind as they proceed with comprehensive tax reform.

We have always said that tax reform – a worthy endeavor – should first do no harm to homeowners. The tax framework released by the Big 6 today missed that goal.

This proposal recommends a backdoor elimination of the mortgage interest deduction for all but the top 5 percent who would still itemize their deductions.

When combined with the elimination of the state and local tax deduction, these efforts represent a tax increase on millions of middle-class homeowners. That tax increase flies in the face of a reform effort ostensibly aimed at lowering the tax burden for Americans. At the same time, the lost incentive to purchase a home could cause home values to fall.

Plummeting home values are a poor

housewarming gift for recent homebuyers and a tremendous blow to older Americans who depend on their home to provide a nest egg for retirement.

Congress can still score a win for American families by promoting lower rates and comprehensive reform that doesn’t single out homeowners for a tax hike, while also preserving important investment incentives like 1031 like-kind exchanges. We look forward to continuing the discussion in the weeks and months ahead.

Midge Jimerson, 2017 President of the Bakersfield Association of REALTORS®.

THE EFFORTS OF OUR ASSOCIATION AND ITS MEMBERS CONTINUE TO FIGHT FOR HOMEOWNERSHIP… CONTINUE TO DO YOUR PART: ADVOCATE QUICKLY by completing Calls for Action from C.A.R. and NAR. VOTE. Participate by exercising your right to vote.

INVEST. Contribute to the REALTOR® Action Fund.

JOIN RGR. Our RGR is a forum for members to engage in local, regional and national issues that affect our industry. Members meet to review local government policies, ordinances and programs that impact real estate transactions. They serve as advisors to the Board of Directors regarding the Association’s position on issues.

The Valuation and Sale of Teams STEVE MURRAY | Publisher, Real Trends

One of the hottest topics among teams today is how they are valued and how they are sold.

REAL Trends entered the team valuation segment of the industry within the last three years and is currently handling the valuation of two to three teams a month and the sale of about four teams a month. REAL Trends has completed several sales of teams thus far.

There are several keys to understanding how to value and successfully sell a team. They are: 1. Separate. First, you must separate the personal or sphere of influence segment of the business from that which is generated from the team’s business system, such as online, direct mail, TV or radio. Both the revenue contribution from each and the costs associated from each segment must be identified. This enables each segment to be valued separately.

2. Multiple Years of Results. The team should have at least two and preferably three years of results so that trends lines can be demonstrated.

3. Comp and Benefits. The compensation and benefits paid to the owners need to be segregated, both in terms of commission earnings and those costs that the company has paid on behalf of the owner through the company’s expense categories.

4. Leases and Contracts. The terms of any leases or contracts should be clearly outlined and disclosed.

5. Business Systems. The business system results should also be documented, i.e., what was done, what were the results, any special agreements, contracts or software that is used should be outlined.

6. Personal business. The personal business and the business-system-generated businesses are valued separately from each other in the valuation of a team practice. The ultimate valuation may also be determined by how the owner of the team is employed. Is the owner of the team in listings and sales or not? If they are, how much of the revenue did they contribute? If not, what role do they play in creating transactions, if any at all?

The business is valued based on the income each segment generated and is multiplied by a factor that is based on the location of the business, the market for that business, how much business is generated from a business system and how much is personal, the size of the business and a few other factors.

THE SALE OF TEAMS Now, let’s talk about the sale of teams.

The value of a team is only one-half of the equation. The terms of a sale, like with a brokerage company, require the seller and buyer to understand that there is a certain amount of risk that both must take to make a deal work.

In the many brokerage sales REAL Trends has handled over the years, we have a saying, “My price, your terms; your price, my terms.”

The goal is to balance what the seller wants to achieve with how much risk the buyer is willing to take. For example, the lower the amount of cash or guaranteed money a team is willing to take, the lower the risk for the buyer. Thus, the buyer should be willing to pay more for the business. The more the cash or guarantee the buyer must take on, generally the lower the price will be for the buyer.

Teams are no different than brokerages in this regard. In some cases, there may be more risk in buying a team than in buying a large brokerage. In our experience, this is reflected in slightly lower multiples for teams than for brokerage firms. In some cases, this is also a factor of size.

STRUCTURING THE SALE One of the biggest factors in structuring the sale of a team is the desire of the team owners to depart the scene and the desire of the purchaser to have the team owner stay on for a period. This is also true for brokerage sales. Team owners who plan correctly will, for example, need to plan to stay for one to two years after a sale to gain the highest price and best terms. The risk of the transaction is lower when they stay around as opposed to leaving quickly after a sale. This is true whether it is primarily a business system team or a personal sphere-driven team. This may also be true for other members of the team, particularly if those members are critical key players on the team.

Generally, each deal is customized to each team. There are varying amounts of cash, guaranteed notes and earn-out payments paid in these transactions. Earn-out payments are generally a percentage of future commission income, gross margin or earnings for a period after the close of a sale.

There is a market for well-run teams. Those with a higher percentage of business-systemdriven results are generally worth more than when a team is primarily a personally-drivenresults team.

This article reprinted with the permission of Real Trends Inc. Copyright 2017 BAKERSFIELD REALTOR® MAGAZINE

29

STATEOFTHE

HOUSING MARKET

JULY 2017

2016 Compared to 2017

by MLS Area

APRIL 2016 AUGUST 2017

All Areas

All Areas

Bakersfield

Bakersfield

% Year over Year % Year over Year % Year over Year % Year over Year 2016 August 2016 July 2017 2017 August 2017 2017 % Year over Year % 2016 Year over Year % 2016 Year over Year % Year over Year Change Change Change Change July 2017 2017 2016 2016 August August 2017 2017 2016 2016 Change Change Change Change Active 1,742 2,061 -15.5% 1,837 2,091 Active 1,742 2,061 -15.5% Active Active 1,837 2,091 -12.1% -12.1% Active Active 1,742 1,742 2,061 2,061 -15.5% -15.5% Active Active 1,837 1,837 2,091 2,091 -12.1% -12.1% Contingent Contingent 283 280 291 313 283 2801.1% 1.1% Contingent Contingent 291 313-7.0% -7.0% Contingent Contingent 283 283 280 2801.1% 1.1% Contingent Contingent 291 291 313 313-7.0% -7.0% Pending 1,057 1,156 -8.6% 1,025 1,134 Pending 1,057 1,156 -8.6% Pending Pending 1,025 1,134 -9.6% -9.6% Pending Pending 1,057 1,057 1,156 1,156 -8.6% -8.6% Pending Pending 1,025 1,025 1,134 1,134 -9.6% -9.6% Sold 671 683 680 741 Sold 671 683-1.8% -1.8% Sold Sold 680 741-8.2% -8.2% Sold Sold 671 671 683 683-1.8% -1.8% Sold Sold 680 680 741 741-8.2% -8.2% Total Volume Closed $166,157,268$166,157,268 -2.9% $170,651,267$170,651,267 Total Volume$161,374,043 Closed $161,374,043 -2.9% Total Volume Closed Total Volume$163,482,436 Closed $163,482,436 -4.2% -4.2% Total Volume Closed Total Volume$161,374,043 Closed $161,374,043 $166,157,268$166,157,268 -2.9% -2.9% Total Volume Closed Total Volume$163,482,436 Closed $163,482,436 $170,651,267$170,651,267 -4.2% -4.2% Median Sales Median Price * Sales Price $231,000 $224,950 2.7% Price * Sales Price $230,000 $215,000 * $231,000 $224,950 2.7% Median Sales Median * $230,000 $215,000 7.0% 7.0% Median Sales Median Price * Sales Price $231,000 * $231,000 $224,950 $224,950 2.7% 2.7% Median Sales Median Price * Sales Price $230,000 * $230,000 $215,000 $215,000 7.0% 7.0% Average DOM Average * * DOM * 39 3944 44-11.4% -11.4% Average DOM Average DOM * 42 4241 412.4% 2.4% Average DOM Average * DOM * 39 3944 44-11.4% -11.4% Average DOM Average * DOM * 42 4241 412.4% 2.4% July July

% Year over Year % Year over Year % Year over Year % Year over Year 2016 August 2016 July 2017 2017 August 2017 2017 % 2016 Year over Year % Year over Year % 2016 Year over Year % Year over Year Change Change Change Change July 2017 2017 2016 2016 August August 2017 2017 2016 2016 Change Change Change Change Sold 574 609 580 634 Sold 574 609-5.7% -5.7% Sold Sold 580 634-8.5% -8.5% Sold Sold 574 574 609 609-5.7% -5.7% Sold Sold 580 580 634 634-8.5% -8.5% Total Volume Closed $150,470,859$150,470,859 -6.4% $148,322,808$148,322,808 -3.3% Total Volume$140,785,376 Closed $140,785,376 -6.4% Total Volume Closed Total Volume$143,374,668 Closed $143,374,668 -3.3% Total Volume Closed Total Volume$140,785,376 Closed $140,785,376 $150,470,859$150,470,859 -6.4% -6.4% Total Volume Closed Total Volume$143,374,668 Closed $143,374,668 $148,322,808$148,322,808 -3.3% -3.3% Median Sales Median Price * Sales Price $235,000 $230,000 2.2% Price * Sales Price $236,000 $221,000 6.8% * $235,000 $230,000 2.2% Median Sales Median * $236,000 $221,000 6.8% Median Sales Median Price * Sales Price $235,000 * $235,000 $230,000 $230,000 2.2% 2.2% Median Sales Median Price * Sales Price $236,000 * $236,000 $221,000 $221,000 6.8% 6.8% Average DOM Average * * DOM * 37 3740 40-7.5% -7.5% Average DOM Average DOM * 39 3938 382.6% 2.6% Average DOM Average * DOM * 37 3740 40-7.5% -7.5% Average DOM Average * DOM * 39 3938 382.6% 2.6% * Figures from Single Family Homes Only. Statistics were run on September 19, 2017 * Single Family*Only Single Family Only Bakersfield uses the following * Single Family *Only Single Family Zip OnlyCodes: 93301, 93302, 93303, 93304, 93305, 93306, 93307, 93308, 93309, 93310, 93311, 93312, 93313, 93314.

July July

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BAKERSFIELD REALTORÂŽ MAGAZINE

2017 YEAR-TO-DATE STATS Area

Dollar Value

# Sold

Average Sold Price*

% of List Price*

DOM*

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

10

171

202

$28,171,088

$32,710,692

$169,694

$171,468

41

41

97.27

96.72

21

130

122

$13,196,465

$11,882,147

$105,957

$100,392

40

57

98.51

97.34

22

175

156

$29,400,932

$25,264,105

$170,979

$161,949

31

32

98.52

98.65

23

14

19

$4,770,400

$5,627,240

$340,743

$342,765

57

82

97.03

96.13

31

179

181

$28,022,046

$26,106,456

$156,548

$144,314

33

46

97.96

97.55

32

368

384

$64,670,754

$67,915,854

$185,800

$181,698

44

46

98.14

97.71

33

135

125

$30,991,238

$27,659,373

$235,335

$227,541

48

44

98.26

99.13

34

66

69

$20,711,524

$21,160,742

$332,659

$313,430

53

65

95.34

97.74

41

78

90

$10,712,735

$11,940,500

$140,916

$133,961

41

40

95.72

97.81

42

93

85

$16,415,310

$14,021,256

$178,199

$166,705

55

43

98.09

96.43

43

7

9

$1,178,250

$1,377,125

$168,321

$153,014

63

20

98.88

96.44

51

376

433

$58,067,745

$65,895,668

$161,987

$156,666

37

35

98.67

98.52

52

942

1018

$200,043,864

$207,661,627

$224,599

$216,607

39

39

98.56

98.52

53

569

618

$178,272,660

$201,576,335

$316,642

$329,719

40

47

98.31

97.60

54

9

4

$3,215,070

$2,484,990

$357,230

$621,248

41

35

99.47

99.52

61

125

165

$35,530,450

$43,156,408

$287,487

$262,417

55

44

98.15

98.62

62

842

772

$254,786,003

$231,616,157

$303,396

$300,066

41

43

98.71

98.42

63

310

354

$118,113,839

$126,260,834

$383,187

$358,390

49

49

98.68

98.25

64

16

10

$6,293,300

$3,528,900

$417,021

$374,544

18

54

98.10

96.06

65

39

25

$11,668,920

$7,246,510

$2,992,003

$289,869

128

56

99.51

99.36

80

128

96

$37,276,149

$23,435,019

$294,280

$252,146

63

61

97.43

97.87

81

13

10

$2,822,100

$2,258,000

$217,085

$225,800

119

245

95.87

86.09

82

23

11

$3,139,915

$814,340

$154,811

$89,543

73

121

92.90

96.65

83

29

33

$6,202,310

$5,374,035

$220,826

$172,164

123

63

97.52

96.46

84

4

12

$1,805,771

$6,957,300

$926,271

$652,240

7

49

100.68

98.59

85

14

7

$4,086,300

$1,995,000

$340,936

$305,833

149

103

96.28

96.60

91

41

47

$6,486,711

$6,623,140

$154,420

$137,897

31

46

96.73

93.83

92

10

5

$3,869,625

$1,946,000

$417,736

$389,200

79

93

96.66

97.15

93

4

1

$922,500

$72,000

$230,625

$72,000

91

64

98.84

96.64

94

6

9

$1,092,000

$1,620,000

$173,400

$193,167

53

64

93.44

97.11

95

161

163

$29,574,200

$30,468,207

$185,327

$186,922

67

48

98.02

97.88

96

118

126

$14,519,209

$15,023,279

$121,020

$119,160

57

63

96.78

96.68

98

120

118

$23,793,940

$21,316,395

$198,777

$181,338

29

49

97.65

97.30

99

96

90

$29,888,765

$26,398,077

$315,265

$311,174

60

46

98.03

96.61

* Figures from Single Family Homes Only. Statistics were run on September 19, 2017

BAKERSFIELD REALTOR® MAGAZINE

31

Continued from page 11 PowerSaver 203(k) participating lenders, markets, and contact information is available here. *The two types of PowerSaver 203(k) loans are Standard and Streamlined. Standard 203(k) loans are for major improvements, where a home improvement project costs at least $5,000 and includes $3,500 in energy upgrades. The Streamlined 203(k) loans are for minor home improvements, where the home improvement project cost must not exceed $35,000.

9. Energy Efficient Mortgage (EEM): This loan program allows borrowers to finance cost-effective energy-saving improvements as part of a single mortgage. These mortgages make it possible for property owners to borrow above the appraised value and stretch debt-to-income qualifying ratios. To ensure the effectiveness of EEMs and to make certain proper upgrades are performed, these loans require an energy audit. EEMs are a Federal Housing Administration product, but the Veterans Administration has its own version.

10. HomeStyle Energy Mortgage: This Fannie Mae program allows borrowers to make energy-efficient or utility-costreducing upgrades within the mortgage when purchasing or refinancing a home.

This program also offers $3,500 for certain types of weatherization and water-saving improvements. Note: Fannie Mae allows those with a PACE loan to finance with this program.

11. HomeStyle Renovation Mortgage: This Fannie Mae program allows borrowers to make renovations, repairs and improvements totaling up to 50 percent of the as-completed appraised value of the property with a first mortgage.

12. Freddie Mac Renovation Mortgage: This program allows borrowers to repair, restore and rehabilitate, or renovate their existing site-built homes within a Freddie Mac mortgage.

13. The Southern California Gas Company Home Energy Upgrade Financing Program: This program offers loans ranging from $2,500 to $20,000 for the purchase and installation of energy-efficient upgrades. Eligible technologies include

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BAKERSFIELD REALTOR® MAGAZINE

water heaters, refrigerated air conditioners, evaporative coolers, double-pane windows, building and equipment insulation, roofing, spa/pool heaters, insulated plantation shutters, and permanently installed natural gas barbecues.

14. The California Housing Partnership Corporation Ratepayer Integrated On-Bill Payment Program is tailored to low-income multifamily rental properties and allows retrofit costs to be included in a tenant’s energy bill.

15. Grid Alternatives Solar Affordable Housing program: This program provides qualifying low income families with roof

top solar, with little or no cost to the homeowners themselves.

It is important to note that none of the financing options above include stipulation that a super-priority lien be placed on the property taxes in front of the mortgage.

There are currently more than 4,500 properties in Kern County that have PACE loans. Be sure to ask sellers about how new upgrades, such as an HVAC unit or solar panels, were financed.

A seller may not even know they have a PACE lien on their property. Also, be sure you pay close attention to the preliminary title report in order to address a PACE lien early on in your transaction.

Be a Santa to a Senior this Christmas

ADOPT-A-SENIOR AT SALLY’S PLACE to share in the magic and joy of the holiday season. We’ll be accepting $10 donations which will be used to purchase gift cards for seniors It’s a great way to provide a nice Christmas for those less fortunate, home-bound or isolated seniors in our community. Funds will be given to qualified Seniors with annual income of no more than $11,025 – Individual; $

16,800 – Couple. Contact Cheri Romero at 342-7309 or cheri4RE@gmail.com

Donations will be accepted at the Association or by any REALTOR® CARE Member until December 6th

Residential Real Estate

Components of a Top Website PAUL SALLEY, Manager of Digital Marketing, REAL TRENDS

W

hat makes a great real estate website great? REAL Trends releasede its 2017 Website Rankings report on Aug. 16 where they ranked real estate sites in six key categories.

Here are some key components that were considered in each of the six categories:

Best Mobile When looking at a mobile website, we wanted to ensure the user experience was focused on a mobile experience.

This experience includes having imagery, navigation icons and layouts that resize for a mobile device. Content for the mobile experience is also condensed to ensure everything is visually pleasing in the palm of one’s hand.

Best Video With video, the most important things are the content and the accessibility of the videos. Videos should subtly add to the enjoyment of the website and complement the overall content of the site or a section of the site and not be a distraction. Video quality and content were the top factors we considered.

Best Neighborhood/ Community Pages Neighborhood and community pages are becoming more important as having them is the best way to compete against portal sites. When analyzing these pages, the main focal points that add value to website visitors include: • Market data • General demographics information • Amenities and restaurant reviews and information • School reviews • Cultural and lifestyle insights • Historical information

Best Property Detail Pages With property detail pages, we looked for overall use of imagery and quality of imagery.

This includes the ability to access and browse through additional images and browse. The

use of a lead generation strategy to get in touch with a sales associate was also looked at heavily, because, ultimately, the point to these pages is to put a sales associate into contact with a lead. Attributes and information pertaining to the property were also looked at, specifically what information was provided and how it was displayed.

Best Design Best design comes down to the use of imagery throughout the website and how it impacts the overall user experience.

This includes the layout of the site, ease of navigation, usability, branding and how the general flow of the website is organized and structured. The question we asked, “Do I enjoy using this website?”

Best Overall Every aspect of the ranking categories received high marks. In addition to each individual section receiving high marks, the flow of the entire website and how each individual section integrates together in harmony was considered. To see this year’s Best Overall website visit: www.groupkora.com.

This article reprinted with the permission of Real Trends Inc. Copyright 2017

BAKERSFIELD REALTOR® MAGAZINE

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Building and “Sailing” the Great Sales Organization

LARRY KENDALL, Author of Ninja Selling and Chairman Emeritus of The Group, Inc.

How do you bring out the best in your people and build a great sales organization?

I

n my 44-year career leading a sales organization, I’ve learned that you don’t manage great salespeople. You sail them.

Truly great salespeople bring amazing talent, energy and a certain amount of ego to the game. They don’t want management. They want direction, coaching and leadership.

How do you bring out the best in your people and build a great sales organization?

Start by recognizing that your sales associates come in all shapes, sizes, talents and motivations. One size will not fit all. Start by evaluating them using the four-quadrant model described below to identify what you have and how to work with them.

CATEGORY 1 ASSOCIATES: Productive and Coachable This is the most fun group with whom to work. Give them an idea, and they run with it. Show them the way, and they execute immediately. They work the system, and the system works for them. You are making a difference for them, and they appreciate your help. They take little of your time and have your highest rate of return on your time investment. Category 1 associates are great team players. You wish you had a whole company of them, but you don’t.

The biggest mistake you can make with Category Ones is taking them for granted. It’s easy to not pay attention to them. They cause little trouble and are just quietly cranking out amazing production. You are at risk of them thinking you are spending too much of your time on newer associates or those who are unproductive. Make sure you recognize them

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with personal notes, compliments, and ask them to share their expertise at a sales meeting or on a panel. Offer special coaching for them.

CATEGORY 2 ASSOCIATES: Productive and Un-Coachable This group marches to the beat of their own drums. They are creative, entrepreneurial and productive. They don’t follow your proven system. They create their own. They sell off the strength of their unique personality. Category Twos are what I call “freaks of nature.” I say this with great respect for them. What they do and how they do it is generally not a “teachable skill” that can be passed on to others.

Category Twos can be disruptive and difficult to manage. Don’t try to manage them. Sail them and support them. Let them know you appreciate them and their unique approach to real estate. They tend to need more staff support since they are not systemsor detail-oriented. They also are your research and development department. They are the source of new ideas and ways of doing things.

CATEGORY 3 ASSOCIATES: Un-Productive and Coachable Category Threes tend to be newer associates or associates in a sales slump. Some are experiencing a life event that has thrown them off track. They are motivated to get better and need your help. The best way you can help them is to manage their activities, not their production. The right activities are the key to generating income. These activities generally fall into two categories: Live Flow—face-toface and voice-to-voice; and Auto-Flow— mailings, emails and social media.

Have Category Threes log their flow activities and meet with them once a week to review. If they’ve been through the Ninja Selling training, there’s a formula for success, so start going

through the ingredients of the formula with them. Look at their database, hot and warm lists, flow activities, etc. Within 45 days, these activities should result in higher productivity.

CATEGORY 4 ASSOCIATES: Un-Productive and Un-Coachable This group is not motivated to have a full-time career in real estate sales. Many are hobbyists who are looking for an occasional transaction and plan to keep their day job. Others have no respect for the commitment, training and hard work it takes to be successful. This is the largest group in our industry, estimated at 60-70 percent of all Realtors®, plus the approximately 1.1 million real estate licensees who are not Realtors. With Category Fours, you really only have two viable choices. n No. 1: Build a business based on Category Fours. This is a recruiting model where these associates pay a monthly fee and production doesn’t matter. It’s a viable and fast-growing business model in our industry simply because of the abundance of associates who fit this category. n No. 2: Move Category Fours up to Category Threes, Twos, or Ones. It’s difficult to have Category Fours in a company devoted to productivity. They drain resources and are resented by Category Ones and Twos.

They’re often toxic to a productivity culture.

Put them into the intense activity program of your Category Threes and move them up or out gracefully. If they refuse to do the work; you’re better off without them. Rehab them or release them.

Now that you know what your organization is comprised of work with each category of sales associate based on their situation and start sailing towards your vision.

This article reprinted with the permission of Real Trends Inc. Copyright 2017

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