2013 REALTOR Magazine October November by Bakersfield Association of REALTORS®

OCTOBER / NOVEMBER 2013

We’ve accomplished so much, but…

“we’re not stopping now!”

Leadership Symposium

Flag Pole Dedication

T.I.M.E. Event

Casino Night

Code of Ethics Celebration

DBA Mixer

R EALT OR S

GROW I NG

S T RO N G E R

C O M M U N IT Y

a tree today!

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

Cost of a tree

plus tax

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

CALL NOW! Order your tree today

661-635-2300 www.bakersfieldrealtor.org

2013 REALTORS速 Conference and Expo

Rise to New Heights November 8 - 11, 2013 in San Francisco

SOME SPEAKERS

Hillary Clinton Photo: Rich Niewiroski Jr., projectrich.com

Chris Anderson

Luke Williams

CONTENTS

BAKERSFIELD REALTOR ® MAGAZINE

4 10

David Knoeb reflects on his presidency in 2013, to date The year isn’t over yet, and there’s so much Knoeb is encouraged by as his presidency comes to an end.

GAD shares how REALTORS® influence policy Learn what R.GOV has done for you lately as our GAD, Donna Carpenter, recaps on the various issues

Kevin McCarthy luncheon snapshots Kevin McCarthy gives our members insight into the policies and roadblocks in Washington D.C.

ON THE COVER 2013 ASSOCIATION HIGHLIGHTS

Air leakage in your home can blow your budget out the window Small holes and cracks can impact your utility bill. See how you can cut your energy cost.

Leadership Comes Together to Develop Goals, Strategies It was two days of planning for the year 2014. 2014 President Theresa Olson rolls our her new theme for the upcoming year.

Association highlights and celebrations We’ve been busy! Every committee has been active in bringing members more knowledge and training by bringing in diverse speakers and hands-on training.

Designers are carving out Spaces Viewing the heart of the home in a more holistic way, lifestyle spaces are in better sync with how people live today.

Get Involved with Our YPN The leaders of tomorrow network to give members the tools they need to advance their careers and have fun in the process. Find out how you can join.

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

LETTER FROM THE PRESIDENT

We’re

not

stopping

now! … Miracles do come true. Our Association members have inspired me to believe that miracles are just hurdles, and no hurdle is too high for the Bakersfield Association of Realtors®.

here has the year gone?!

2013 is flying by so fast that it is almost impossible to keep up. It seems as though I go to bed on Monday and wake up on Friday. This has been one of the most exciting years for me, being part of our Association and seeing the membership in action, continually hosting remarkable events and programs throughout the year. Earlier this year, on April 17, about 24 of our association members met with certified association executive (CAE) expert Robert Harris, to evaluate and enhance our strategic plan for 2013-2017. The strategic plan is like a road map for our Association to guide us through effective operations for the next four years. While many associations are prone to complete a strategic plan and then leave it on the shelf to gather dust. I am happy to report that we are different. Our 2014 president, Theresa Olson, and president-elect, Sheri Anthes, did an incredible job of realigning our committee structure to correspond with the new strategic plan. In doing so, it will help our committee chairs and vice chairs

understand the Association’s goals and their responsibility and role as a committee. Congratulations to Theresa Olson, Sheri Anthes, Linda Jay and our staff members for making this year’s leadership summit a major success. I am extremely happy and excited for Theresa Olson as she continues to prepare for her presidency. Our Association is truly blessed to have an affiliate committee of such a high caliber. The committee members were asked to be involved in nearly every event this year, and every time we ask for donations or volunteers to work the event, our dedicated affiliates step up. I never knew how important the affiliate committee was until this year. To all the committee members, on behalf of all the Bakersfield Association of

REALTORS®, thank you for your support and tireless efforts. We truly appreciate everything you do. Thank you! If I have learned anything this year, it would be “miracles do come true.” Our Association members have inspired me to believe that miracles are just hurdles, and no hurdle is too high for the Bakersfield Association of REALTORS®. Time after time, our Association has been faced with impossible tasks; and somehow by joining forces, staying focused and determined, we have always found a way to succeed. It is this spirit of our association I admire the most. To all of the members involved in making 2013 so exciting and memorable, thank you from the bottom of my heart! Just one time is all I can ask; now the rest is up to you! BAKERSFIELD REALTOR® MAGAZINE

LETTERFROM FROMTHE THECEO CEO LETTER

Are you a Mac OR PC? M

y brother is a techie. For years we have had this ongoing debate as to the which is better… a Mac or a PC… he on the side of his PC… and me on the side of my Mac. We are both very passionate about our product brand, because each of us has first-hand knowledge of their specific benefits. So for us, the perception of the value of our preferred product brand is a reality. In an article by Clint Pumphrey entitled, “10 Differences Between Macs and PCs”, he states: “Probably the most striking difference between Macs and PCs is in customer satisfaction… scoring high marks in reliability, service experience and even phone hold time.” I recently ran across a quote by Ashley Fern, a writer for a website called Daily Elite which states, “The way people view you and the way you present yourself, is the impression you leave behind. . .

2013 OFFICERS

What people perceive is usually what they believe, and this is based on what they hear, see and think.” What is today’s consumers’ perception of the REALTOR® brand? More importantly, as a professional, what is your perception of your REALTOR® brand? California homebuyers have made a decisive determination. Did you know that of the approximately 415,000 real estate licensees in California, only 38% are REALTOR® members (158,000)? Yet, statistics recently released by CAR show that 91% of California home buyers used a REALTOR® in 2013. That is a significant testimonial by the consumers throughout California as to the value of a REALTOR®. The top five areas identified as to where REALTORS® helped buyers the most are (in the order of importance); #1 — Price Negotiation; #2 — Negotiating Terms of Sale; #3 — Determining Comparable

President David Knoeb Frontier Real Estate Services

Vice President Sheri Anthes Coldwell Banker Preferred – Ming

Immediate Past President Scott Tobias Real Estate

President-Elect Theresa Olson RE/MAX Magic

Secretary/Treasurer Bill Redmond Watson Realty ERA

Chief Executive Officer - Linda Jay

BAKERSFIELD REALTOR® MAGAZINE

Homes for Sale; #4 — Determining Affordability; and #5 — Finding the Right Home. The REALTOR® brand is an important asset to our profession. For over 100 years, it has provided a consistent image of who we are and helps customers know what they can expect. Are we leaving behind an impression that sets us apart? Are you owning your REALTOR® brand? If not, maybe it’s time to take look at that brand from a new perspective. Be the standard-bearer of our brand and expand our reach for yourselves, your professional partners and your customers.

“Change the way you look at things and the things you look at change.”

2013 DIRECTORS Athena Collup Miramar International – Marketplace Pam Epps EPCO & Associates John Garone, Jr. Coldwell Banker Preferred - Westwind

David Gay Scott Tobias Real Estate Wayland Louie RE/MAX Golden Empire Jacob Marquez Miramar International – Marketplace

Darrell Sparks Keller Williams Realty Derek Sprague Sprague Real Estate Group

Financial Gain

put above client’s interest

REALTOR® puts submission of purchase offer on execution of a prelisting agreement Case #1 - 14: (Adopted May, 1988 as Case #7-18. Transferred to Article 1 November, 1994. Revised November, 2001)

wner Adam listed his home with REALTOR® Ben on an exclusive listing, which was disseminated through the multiple listing service. Mr. Campbell, a recent transferee to the city, was represented by REALTOR® David, who showed Mr. and Mrs. Campbell a number of properties. Of the properties they had seen, the Campbells decided that Owner Adam’s home was the only one that suited their needs. They told REALTOR® David they were prepared to make a full price offer to maximize their chances of purchasing the home. REALTOR® David agreed to write the offer, but first produced a prelisting agreement that, if signed, would obligate the Campbells to give REALTOR® David or his assignees the exclusive right to sell the property for 90 days should they ever decide to list the property for sale. Mr. and Mrs. Campbell objected to committing to a future listing, but REALTOR® David insisted he would not prepare or submit their offer to REALTOR®

Ben and Owner Adam unless the Campbells signed the prelisting agreement. Mr. and Mrs. Campbell left without making an offer or signing the prelisting agreement. The next morning they called REALTOR® David stating that if the property was still available they would enter into the prelisting agreement because they still wanted to purchase the house. The prelisting agreement and the purchase offer

were signed, their offer was accepted by Owner Adam, and the sale subsequently closed. After the closing, Mr. and Mrs. Campbell filed an ethics complaint with the local board of REALTORS®, alleging a violation of Article 1 on the part of REALTOR® David. At the hearing, REALTOR® David defended his actions, arguing that his conduct in no way had injured the buyers or sellers. He noted that Owner Adam’s home had sold at the full price, and Mr. and Mrs. Campbell purchased the home they wanted at a price they were willing to pay. In addition, REALTOR® David was prepared to put forth his best efforts to sell the Campbells’ home if they ever decided to sell. After hearing the evidence and testimony, the hearing panel concluded that REALTOR® David had violated Article 1. By entering into a principal/ client relationship, REALTOR® David was obligated to protect and promote his clients’ interests. The hearing panel concluded that by conditioning submission of his clients’ offer on their signing a prelisting agreement, REALTOR® David had placed his financial gain ahead of his clients’ interests, which is prohibited under Article 1.

2013 Ombudsman Report (July - August) 130 calls were received by our Ombudsman n 509 Total calls for 2013 year-to-date n 56 calls were grievance/ethics n

complaints against agents that were resolved n 7 grievance/ethics packages mailed out to complaining party

54 calls requesting information on real estate procedures n 1 call requesting information on deposits n

1 complaint against nonassociation members n

6 cases were referred for Association mediation n

5 anonymous calls were received n

BAKERSFIELD REALTOR® MAGAZINE

Cindy Veiner and Lisa Belt

Athena Collup and Shari George

Tisha Borda, Shellie Berlanga & Lisa Brimm

Adoree Roberson & Mary Christensen

kston & Sarah Croo Amy Villicano

HIGH ROLLERS Our very own

速

Rocked the House at Fleur de Lis!

Norma & Robert Cortez

Nancy Harper & Theresa Olson

Cindy Veiner, Sheri & Dick Anthes Paula Aguilar, Kym Plivelice, Laura Galicia

The Harvest Committee, Casino Night, raised $8,521 for the Golden Empire Gleaners. Thank you to all of our special sponsors, incredible committee members and wonderful volunteers for their contributions to make the event a success! PHOTOS COURTESY OF ABBYS PHOTOGRAPHY

Casino Night was a fun evening for everyone!

BAKERSFIELD REALTOR速 MAGAZINE

Kandie Miller & Shelli Berlanga

Girls night out at Casino Night

Attendees enjoying Casino Night

Ashley and Dustin Weaver

E D U C A T I O N

A N D

N E T W O R K I N G

A L L

I N

O N E

Commercial Investment Committee Programs

Speakers share their secrets Learn all there is to know about the RPR and the 504 Loan Emily Line

Director of Commercial Service

Friday, October 18th, 8am

Linda Jay gets an RPR tattoo

THE BAKERSFIELD ASSOCIATION OF REALTORS® Commercial Investment Committee brings forth for your pleasure & informational library EMILY LINE, Director of Commercial Services who will answer the question… What is a Wholly-Owned SUBSIDIARY of the National Association of REALTORS®? NO! It’s not Linda Jay… or?… Maybe it be! But instead… RPR… REALTORS® PROPERTY RESOURCE!! Although Linda has the RPR Logo and Mission Statement tattooed on the small of her back, I’m still not sure what it all means! The RPR claims to have over 150 million “datasets”… whatever the heck a “dataset” is, on over 150 million properties (quite sure that’s more than just Kern County). One simply logs on to RPR (requires iPad or old-fashioned laptop) and retrieves market and property details. The “good news”… this resource is available at NO additional cost… IF one is in “good standing” (meaning the prompt paying of one’s dues, with the local magistrate… known as the Bakersfield Association of REALTORS®). Obviously, I know nothing of what I write, which is usually the case! So, come by and learn, as I will, what exactly RPR can do in helping your already successful career. Very importantly, RPR also specializes in “Commercial Properties”. You had to read this far to get the hook! So perhaps

you should mark your calendar for 8 a.m., Friday, October 18th (third Friday of every month) at the well-appointed Bakersfield Association of REALTORS® office complex, on Bahamas Drive. A breakfast of Eggs benedict, coffee & juice will be served at the restaurant of your choice, while we’ll be having doughnuts!! Please respond to Karen at the Association, 635-2302, or karen@ bakersfieldrealtor.org… or go by and say “Thanks for the many years of dedication to our little niche of information and education.”

Sponsored by:

Brandy Agnetti, Service Master

BAKERSFIELD REALTOR® MAGAZINE

REAL ESTATE

AND POLITICS

Lunch with

U.S. Congressman and Majority Whip

Kevin McCarthy John Boydstun & David Knoeb

Angie Trigueiro & Theresa Olson Michelle Overstreet, Brian Tuttle & Judy Miller Kevin McCarthy speaks to members at the Doubletree

Evelyn & Marjorie Martinez Michelle Church, Judy Camp & Jodi Moore

David Knoeb, Kevin McCarthy & Scott Knoeb

Athena Collup, Derek Sprague & Jacob Marquez

Kevin McCarthy & Theresa Olson

Wayland Louie, Darlene & Scott Tobias

Kevin McCarthy takes a snapshot with REALTOR速 Maria Woods BAKERSFIELD REALTOR速 MAGAZINE

Cheryl Ketchum (far left)

Influencing policy

Development of fact-based position on issues affecting the real estate industry.

LET YOUR VOICE BE HEARD, JOIN THE Development of fact-based position on issues affecting the real estate industry. What has R.GOV done for you lately? Another year has flown by. Although we soon will be cooking turkey and decorating our homes for the holidays, I feel like we just put the decorations away from last year. For R.GOV, this was a year of rebranding

Donna Carpenter

GOVERNMENT AFFAIRS DIRECTOR

as we changed our name from LGR (Local Governmental Relations) and created a new forum for discussions about issues affecting your ability to operate your business. We also adopted the following mission, charter, goals and guidance statements: Mission — R.GOV will monitor governmental actions that affect REALTORS® and will represent and promote member interests. Charter — R.GOV will work to further the Bakersfield Association of REALTORS® members’ interests by promoting policies that positively influence the needs of real estate and housing and enhance the real estate industry. R.GOV addresses the range of issues that affect our members, such as: business license taxes, green building, point of sale, growth management, local disclosures and vacant foreclosed property issues. Goals — R.GOV will provide relevant fact-based information to policymakers at local and state levels and inform members about issues and legislation that may be of concern to them. R.GOV will develop policy positions that

will provide our association the ability and opportunity to swiftly engage on issues and promote the Association’s overall goals more effectively. Guidance — R.GOV participates in the political and administrative processes in advance of, and in response to, public policy proposals by presenting REALTOR ® views to policymakers. R.GOV influences policy through the consistent development of high quality, factbased positions on issues affecting the real estate industry. Our well-attended TRIP update earlier this year focused primarily on the Centennial Corridor project but also included information on SR 178/Fairfax Road, Mohawk Street, Westside Parkway, SR 99/7th Standard widening, 24th Street improvements, SR 58 gap closure, Hageman flyover, SR 178/ Morning Drive, SR 178 widening all the way out to Miramonte, Rosedale Highway widening, and the West Beltway. If you would like information on any of these projects, please go online to www.bakersfieldfreeways.us. We also heard from our friends at Kern Citizens for Sustainable Government. This nonprofit organization was started by three local businessmen who came together to promote sustainable government practices. KCFSG founders saw a need for responsible government policies to promote economic growth and create jobs in Kern County and dedicated themselves to the public good and betterment of our community. For more information, visit kerncitizens.org. A presentation by John Schuler, a technical adviser of the Kern Transportation Foundation — “A New Perspective on Transportation in Kern County,” sparked a lot of conversation about things we take for granted relating to the movement of people, goods and services. Additional discussion

COMMITTEE focused around our financial challenges relating to ongoing maintenance of our transportation system and the benefits we could have if we were a “self-help” county. To become self-help, we would need to pass a local sales tax measure establishing a stable funding source to finance critical transportation programs and projects, despite volatile federal and state funding. The benefits of being self-help include job creation, additional mobility, technological innovation, community vitality and sustainability. For additional information go to selfhelpcounties.org. The Protecting American Taxpayers and Homeowners (PATH) Act has drawn most of our attention recently. We have worked with NAR in opposing this legislation, which includes reforms to FHA, the GSEs, and the financial regulatory law known as the DoddFrank Act. Our opposition is based on two major concerns: 1) We strongly oppose the end of federal guarantee for a secondary mortgage market; and 2) we strongly oppose the dramatic restructuring and targeting of FHA. The PATH Act winds down Freddie Mac and Fannie Mae over a five-year period. It would create a new utility to promote the securitization of mortgages. However, the bill does not provide for a federal guarantee for the utility. The bill also contains significant changes to the FHA program that include income targeting, down payment increases and loan limit decreases. The PATH Act cannot be supported without a federal guarantee and a removal of the FHA Title. We have had meetings, conversations and written letters to our congressman regarding our concerns and will be watching closely as the bill moves through the legislative process. For more information about the PATH Act, go to realtor.org/ articles/nar-opposes-the-path-act. BAKERSFIELD REALTOR® MAGAZINE

The A Team M

embers of The A Team! Collectively, these individuals form a group of loyal, hardworking Affiliate members who serve the Association in a variety of ways. Over a long period of time, they consistently: n Attend activities and events such as 1st Thursday Brew & Breakfast. n Volunteer their time and energy to support the Association’s programs and activities.

SHERYL GALLION

MONA CIMENTAL

n Promote Association activities to other members.

sgallion@ticortitle.com

mcimental@propertyid.com www.propertyid.com

mikegeorge@agapemtgco.com www.agapemtgco.com

TERRI MAYS

BARBARA WELLS

tmays@firstam.com www.firstamericantitle.com

bwells@sjvalleymortgage.com

Ticor Title 661.342.7802

n Contribute raffle items and door prizes as well as sponsor various programs and special events. For all their efforts, A Team Members earn these opportunities: n Featured in all five issues of Bakersfield REALTOR® Magazine. n Complimentary advertising through The A Team contact list on the Association website. n Complimentary recognition on the Association Reception TV. n First opportunity to sponsor key events. If you’re interested in joining The A Team contact Michele Cooper, our Affiliate Chair!

LISA HOOK

Prospect Mortgage 661.301.5472

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

Property I.D. 661.220.0159

First American Home Buyers Protection 661.808.7612

MIKE GEORGE

Agape Mortgage 661.324.2427

San Joaquin Valley Mortgage 661.703.2227

MICHELE COOPER

Chevron Valley Credit Union 661.900.2358 or mcooper@chevronvalleycu.com

BEN SOELBERG

SMRT Home Inspections 661.747.3337

smrthomeinspections.com ben@smrthomeinspections.com

ASHLEY WEAVER

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

SAM JABUKA

Jabuka Home Inspections 661.664.8629 jabuka@sbcglobal.net

Thank you to all of our September and October Sponsors! n Mona

Cimental Property I.D.

BAKERSFIELD REALTOR® MAGAZINE

n Jennifer

Nuckols Union Bank

n Michele

Cooper Chevron Valley Credit Union

Air leakage in your home can be costly The impact of a few small holes or cracks in your home can affect your utility bill of air per hour! It was no surprise that the owners of that house told me that they had started using their evaporative cooler instead of their air conditioner during the summer months because their bill was too high. When I told the homeowners about their leakage level, they immediately wanted to know where the leakage was and how to stop it. Unfortunately, those are not easy questions to answer. Diagnosing exactly where and how much a house is leaking without expensive equipment is difficult, but there are some simple signs of leakage, and fixing problem areas can be easy and inexpensive. A thorough examination of the exterior penetrations will expose a number of areas that will leak air. A surprising amount of air can flow through small holes. The first place to check for significant leakage is around windows and doors. Gaps between the threshold and the bottom of the door or between the door frame and exterior wall surface will allow significant air to pass through. Newer windows do not necessarily mean that that there will be no leakage around the frame. Many people upgrade their windows on their own instead of hiring a professional to do the work. Small gaps may be detected by wetting a hand, holding it about an inch away from the frame and slowly tracing the outside edge of the window. Any gaps around windows or door frames

BY BEN SOELBERG, SMRT HOME INSPECTIONS

PHOTO: highimpactexteriors.com

ne of the first things that people consider when buying a house is how much they will pay each month for their mortgage. Knowing that number is extremely important because the mortgage payment is usually the largest monthly bill. The second-highest bill for many people is their utility payment. Unfortunately, that amount can vary wildly from month to month and even from house to house. It is very difficult for a homebuyer to be able to predict the cost of their future utility bills because of the many variables that are involved. The utility bill usually covers the cost of water, electricity and natural gas used in a home. Certain appliances used in a home, such as high-efficiency washers, dryers and kitchen appliances, may have a positive impact on the bill. Although those measures should be used, they do not account for the bulk of the bill, which is determined by the energy expended by heating or cooling the home. Unfortunately, a lot of the money spent on heating/cooling costs is wasted. The Building Envelope school of thought is a very useful way for homebuilders and homebuyers to understand the complicated processes that contribute to heating and air conditioning costs. Thinking of the home as a whole unit that should control the transfer of heated or conditioned air has allowed us to improve the energy efficiency of homes. Although one rarely feels a breeze, air is constantly entering or exiting a home. Home leakage measurement tools allow a technician to find out how many cubic feet of air pass through the home each minute. A fully inflated basketball holds approximately one cubic foot of air; a home that I recently tested had a leakage amount of 3000 cubic feet per minute. That’s almost 200,000 basketballs

Weather-Stripping Cuts Energy Costs BY HOUSELOGIC

Weatherstripping is an easy and costeffective way for home owners to save money on energy costs and improve comfort by reducing drafts, reports the U.S. Department of Energy. And many home owners install it themselves. Show your clients how with a free article offered by C.A.R., “How to Replace Weather Stripping, located in the REALTOR® Content Resource. It’s one of five free articles available in the September “Maintenance to Do Now” article package.

should be filled with caulking, silicone sealer or weather stripping. Another common area for leakage is around penetrations made for telephone, television, satellite or internet cables. Filling the hole with silicone or caulking will reduce the leakage. Most people do not realize how large an impact a few small holes or cracks can have on their utility bill. By helping homebuyers become aware of these small, simple home repairs, you can help them save a lot of money on their monthly bills over the life of their home.

BAKERSFIELD REALTOR® MAGAZINE

Leadership comes together Goals, plans developed for the upcoming years

ounded in 1905, the Bakersfield Association of REALTORS® is a dynamic association with a dedicated volunteer leadership and a membership of approximately 1,600. Of the trade associations and the chamber of commerce in Bakersfield, it can be ranked by budget size among the top 10 of business associations. Building upon decades of leadership and shared knowledge, incoming President Theresa Olson led this year’s leadership summit on THERESA OLSON September 2014 Association President 9 - 10, 2013. As the strategic plan for 20132017 was launched, she also unveiled her focus in 2014: “Change your words, change your world.” Through the implementation of our goals and strategic plan, we will continue to be the leading advocate of the real estate industry, its members and the consumers they serve.

Strategic Plan

The newly adopted plan spans the period of 2013 to 2017, guiding successive volunteer leaders, committees and professional staff. Key elements of the plan include:  Purpose – Statement of purpose for the association.  Vision – The long-term outcome of how the Association should be perceived.  Values – Guiding principles for the leadership and staff.  Goals – The core competencies of the Association to which sufficient resources will be allocated.

BAKERSFIELD REALTOR® MAGAZINE

 Strategies – Approaches and programs to advance the goals.  Tactics – Performance measures, assignments and deadlines to get the work done. (These are most likely identified and tracked in an annual program of work.)

Values statement

 Excellence – The highest professional and ethical standards will govern our work and our relationships with others.  Leadership – A commitment to provide a positive and effective influence within our professional and regional community.  Diversity – A respect for serving members representing all cultures and business models.  Collaboration – A commitment to working with other organizations as a trusted and supportive community partner to benefit our members/stakeholders.  Innovation – We will continually explore new avenues to provide better service to our members.

Our goals for 2013 – 2017

Association President Theresa Olson, has rolled out her 2014 Association theme.…

V. SERVE — Community service

Five goals were established as the core competencies of the Association for which resources will be allocated. Three are primary purposes, while the other two are the foundation that supports advocacy, education and service. I. EDUCATE — Professionalism and standards II. ENGAGE — Member service and value III. LEAD — Association leadership and operations IV. ADVOCATE — Government relations and the voice of real estate

Strategies to advance the plan

Strategies are programs and priorities to achieve the goals and advance the mission. The suggested strategies are indicated below. I. EDUCATE — Professionalism and standards — Maintaining the REALTOR® ethics and standards through education and knowledge. A. Increase compliance with the code of ethics. B. Increase competence and success through Association education and training. C. Improve awareness of the consequences of unethical practices; considering implementation of citations for violations.

D. Maintain effective and timely processes for professional standards and grievances. E. Enhance educational offerings by investing in signature quality speaker programs. F. Provide scholarships for students pursuing a course of study in real estate or some related field at the college or graduate levels. II. ENGAGE — Membership service and value — Serving the needs of our members by providing programs, products and services that positively impact their professional success. A. Maintain productive and responsive relationships within brokerage and agent community. B. Update and expand programs, products and services to meet the demands of an ever-changing and diversified marketplace. C. Provide a superior membership experience to all members. D. Set growth metrics to monitor recruitment, retention and market share. E. Respond to need for new forums, networks and user groups to engage diversity of members and interests. F. Promote the achievements, benefits and value of the Bakersfield Association of REALTORS®, C.A.R. and NAR as a distinct and valuable member service. G. Identify, reach and provide value to industry niches, i.e. property management, commercial brokers, new construction, etc.

III. LEAD — Association leadership and operations — Maintaining a nationally and state-acclaimed

association of REALTORS® through leadership and resources. A. Analyze programs, education and events to determine revenue, expense, perceived value and return on investment to increase income. B. Make use of the 501(c)(3) foundation to broaden purpose beyond scholarships. C. Pay off the Association mortgage by 2018. D. Allocate resources to identify, mentor and invest in future leaders of the Association and to serve on private and public boards. E. Anticipate Association office growth needs with a plan for expanding parking and classroom space. F. Maintain plan for technology investment and providing leading edge tech services to members. G. Increase professional staffing as increased programs and member service requires for customer service excellence. H. Align committees with the goals of the Association, ensuring relevance of their work and outcomes. IV. ADVOCATE — Government relations and the voice of real estate — Vigilance in monitoring and influencing issues impacting real estate. A. Develop policy platforms that correspond with strategic plan on issues impacting our industry. B. Develop a coalition with other associations to support advocacy. C. Support RPAC — “The voice and muscle of the REALTOR®.”

D. Improve awareness and grassroots involvement of members in political advocacy. E. Allocate sufficient resources for an effective government affairs program. F. Involvement and recognized as influential in economic development. V. SERVE — Community service Positively impacting our community through goodwill and campaigns led by REALTORS®. A. Contribute to the community as a REALTOR® force and as a means for involving members. B. Improve public awareness of the contributions of the Association and REALTORS® by quantifying the economic impact of direct and in kind services. C. Evaluate the Association’s involvement in community service and charities to determine direct costs (i.e. staffing, funds) and seek annual program that raises funds for REALTORS®, for instance scholarship, education, etc. (Be sure contributions are net and not gross proceeds.)

BAKERSFIELD REALTOR® MAGAZINE

2013

A S S O C I A T I O N

H I G H L I G H T S

YPN Softball

Code of Ethics

In classic YPN style, members pulled together to make this annual tournament and picnic a smash hit. Members and their families enjoyed a fun-filled day in the park. There was something for everyone — food, games, even a dunk tank! All to raise funds for the Jeremy Staat Foundation.

It was all about honoring REALTORS® who abide by a strict code of ethics! REALTORS® nationwide have abided by the code for 100 years. As a REALTOR®, you live by the code and celebrate this milestone!

Fun and games for members

NAR’s code of ethics turns 100 years old in 2013

A N D

C E L B R A T I

Casino Night

Harvest Committee Rocks

The Harvest Committee is bursting with energy and creativity. Led by Theresa Olson and Sheryl Gallion, it was another successful year. They raised $8,520 for the Golden Empire Gleaners. ®

Community Spirit Members Give Back

The idea for Community COMMUNITY S P I R I T Spirit was born from our mission and desire to serve the community in a meaningful way. Leaders Ronda Newport and Cheri Romero scheduled numerous projects throughout the year. Members gave more than 300 hours of their own time. R E A LTO R S E R V I C E V O LU N T E E R P R O G R A M

Education

Houchin Blood Bank Drive

We replenished our Association’s blood bank account with our committee vs. committee blood drive. 24 members participated, 20 donated for a total of 20 pints. We even had two new donors. The blood drive was hosted by the Education Committee while lunch was served by our very own Attendance and Reception Committee.

YPN Blaze Night

Cheering, Charity and Fun

The YPN hosted a Bakersfield Blaze game with a mixer, finishing it off with some fireworks celebrating our 100-year code of ethics celebration. It was an evening of fun with friends and family.

Wine Tasting Relay for Life packed the house… Well actually the Lexus Dealership. It was an evening packed with fun and wine tasting from several local wineries. The Relay committee, headed by Judy Camp, raised a total of $71,088 for the American Cancer Society.

Edge

Speakers

The Education Committee pulled in some heavy hitters like Robert Brand, John Wenner, Selma Hepp, Brian Fergus and Annette Graw. They shared their knoledge with many of our members that were in attendance.

O N S

Education & Cultural Diversity T.I.M.E. Event

It was a collaboration of the Education Committee and the Cultural Diversity Committees to not only bring culutually diverse food to the event, but inform our members of the various committees at the Association. It was a huge success!

cultural D I V E R S I T Y

creating new perspectives

Fair Housing

Arts Contest

It was a day of fun for committe members, students and teachers. The Equal Opportunity committee donated a total of $1,600 dollars to all of the teachers who participated.

Vote Vidak

Many of you were instrumental in helping Sen. Andy Vidak get elected. You came out for several days, manned the phones to show your support and to stand behind C.A.R.’s choice. The phone bank was led and facilitated by our very own GAD, Donna Carpenter.

WCR MIXER

Flag Pole Dedication It was a momentous

The Women’s Council of REALTORS® held their eighth annual martini mixer, and it was a hit! The WCR is a nationwide organization of 12,000 real estate professionals, both women and men, who are some of the best and brightest in the business. Currently the WCR is the 12th largest U.S. women’s professional organization and has one of the most successful communication networks in the National Association of REALTORS® family. Ronda Newport heads up the local group.

occasion as we raised our flag for the first time. It was presented to the Bakersfield Association of REALTORS® by John Boydstun and Mel Khachigian, REALTORS®

TUG Tech Expo Learning how to connect

Thanks to our Technology Committee Chair, Alyssa Knight, members have had several oppotunities to attend hands-on presentations on iPads, laptops and mobile devices. Classes included Digital Signatures, Cartavi, DocuSign, iPad, Evernote and more. USER GROUP

T E CH N O L O G Y

DBA Mixer

Parntership with the Downtown Business Association

It was a great turnout and huge success. Imbibe provided wine as members of the Association mixed and mingled with members of Bakersfield’s Chamber of Commerce.

REAAC

Protecting the consumer

The Real Estate Anti-fraud Advisory Committee (REAAC) is up and running strong. REAAC is a collaboration between the district attorney’s real estate fraud unit and Bakersfield real estate professionals. REAAC members will help identify new and old types of fraud and scammer tactics.

Our Community Giving (SO FAR)

We are an organization of giving. The numbers speak louder than words! YPN Softball Tournament Benefiting The Jeremy Staat Foundation Dollars raised: $2,733.09 Total Hours: 261

Community Spirit n Fair in the Park n Sally’s Place - twice each month Dollars donated by members for Sally’s Place to purchase food: $200 Total Hours: 384

52nd Annual Golf Tournament & Helicopter Golf Ball Drop (upcoming) Benefiting The Golden Empire Gleaners, Ronald McDonald House, Make-a-Wish, and Wounded Heroes Estimated dollars to be raised: $30,000 Last year raised: $26,358 Total Hours (to date): 271

Fair Housing n Fair in the Park n Arts Contest Dollars raised: $3,726.75

YPN Softbal

BAKERSFIELD REALTOR® MAGAZINE

(Donated $1,600 in gift cards to teachers)

funds in 2013.

Staff Hours: 66

Partnerships

Harvest n KGET Food Drive n Agent commissions — $85 n Casino Night — $8,520.89 Staff Hours: 61 n Relay for Life — $71,088.32 Staff Hours: 197 n Woolgrowers 50/50 Raffle — $177

TOTAL

$78,986.63

ASSOCIATION GRAND TOTAL $

116,76230

Other Community Involvement

SCHOLARSHIP TRUST FUND Scholarships are available for qualified students from a Kern County high school, community college or university. Nine area students were selected to receive

Total $6,000

n Downtown Business Association Social Mixer n June’s Faire in the Park n Kern Economic Development Corporation n 2013 Economic Summit n Bakersfield Condors annual Teddy Bear Toss (upcoming) n Bakersfield Chamber of Commerce Youth Leadership n Beautiful Bakersfield Awards n Bakersfield Women’s Business Conference n Women’s Council of REALTORS® n Martini Mixer n Bakersfield Blaze n Newspapers in Education n Bakersfield College Foundation Centennial Celebration Public/Private Partnership Category n American Lung Association n Bakersfield Symphony Orchestra Foundation

Fair Hous

ing

Relay for Life

Casino Night Note: Hours are approximate

BY VIJAY GOVINDARAJAN AND SRIKANTH SRINIVAS HARVARD BUSINESS JOURNAL

homas Edison said it over a century ago: “Genius is 1 percent inspiration, 99 percent perspiration.” Unfortunately, when companies launch innovation initiatives, they tend to devote most of their time, energy and attention to that initial 1% – the thrilling hunt for the breakthrough idea. The real innovation challenge, however, lies beyond the idea, in a long, hard journey from idea to impact. Innovative companies sustain a track record of success by creating the right “climate” for employees to cultivate the innovation mindset — to think different, act different, and achieve extraordinary success. THINK DIFFERENT — OPPORTUNITIES Not every idea is worth pursuing. The first step is to narrow down the ideas to worthwhile opportunities. Have a process to evaluate whether it is the right opportunity by asking: Do we want to pursue this – does it align with our purpose? Can we execute it – does it align with our core competencies? If it takes off in the best possible way, will the benefits be worth it? Are the risks such that the damage won’t be irrecoverable if things go wrong? Dare to seize the opportunities that meet these criteria. Create mechanisms to seed fund and resource the right opportunities. Recognize that seizing the opportunity is but a tiny first step – like a little plant has sprouted. You have to nurture it patiently until it grows into a big tree with deep roots and a thick trunk. “AND” THINKING The next challenge is to strike the right balance between getting the most out of these opportunities AND keeping your performance engine humming. What are the best structures to create so you neither disturb the rhythm of the performance engine nor drop the ball on opportunities? Many organizations embark on large-scale change management efforts to “make” their organizations more innovative; most fail. Our guiding principle is quite the opposite: Do no harm. The challenge is not just to make innovation happen, but to do so while simultaneously excelling in ongoing operations. Butter before jam.

The Right Innovation Mindset Can Take You from

Idea to Impact Goals and plans are developed for successful businesses

Innovation distinguishes between a leader and a follower. — Steve Jobs

Cake before icing. But butter AND jam. Cake AND icing. If the performance engine is humming along, it’s best not to impose an innovation challenge if it would disturb that rhythm. We would opt for minimal change on that front, and creating dedicated innovation teams that work in partnership with shared staff. Rather than major surgery, aim for precision surgery or micro surgery. ACT DIFFERENT — RESOURCEFULNESS Create a climate where resourcefulness is encouraged and rewarded. Pass down organizational stories, highlighting the obstacles that employees powered through to get results, through successive generations of leaders. Achieve Extraordinary Success — Outcomes Create a climate in which employees can

focus on outcomes instead of getting caught in the activity trap. Create separate planning processes for innovation efforts that are big enough to require dedicated teams. The innovation planning process needs to focus on learning, viewing innovation as a disciplined experiment. What gets measured gets done. In companies that consciously cultivate a climate of innovation, innovation is not about no accountability, but a different kind of accountability. Construct just enough structure to make sure you’re making progress in the right direction, and no more. If a flight going from Dallas to New York were a degree off, it would end up in the sea instead. Most flights, in fact, are more than a degree off 95% of the time. Most flights, though, land where they are supposed to. How do they do it? One key reason: the pilot has a “rough” flight plan and engages in dynamic course correction. This same notion of a “rough” plan coupled with dynamic course correction is what we recommend in innovation efforts. If the performance engine has monthly planning meetings, the innovation side should have weekly “course correction” meetings. If the performance engine is on a weekly rhythm, the innovation side has to step it up a notch and get on a daily course correction cycle. EXPAND THE PIE When the business model has stabilized, have systems in place to encourage employees to “expand the pie” by developing new revenue streams, increasing reach, or converting non-consumers into consumers. For example, Apple expanded its pie by creating the App Store, where individuals and small development shops could stand on Apple’s shoulders and reach a market they never could otherwise. In turn, Apple’s reach increased because their customers got access to a much larger pool of software. They expanded the pie for themselves, their partners, and their customers. Innovation execution is neither innovation nor execution but its own strange beast. When tamed, however, it can be a source of enormous strength, lasting differentiation, and sustained success. BAKERSFIELD REALTOR® MAGAZINE

Carve out a truly

Great Space New home construction is shifting away from the great room BY MEG WHITE, REALTOR® MAGAZINE

fter years of filling overwhelming great rooms

and domineering kitchens, designers are viewing the heart of the home in a more holistic way. Make way for “lifestyle spaces” that are in better sync with how people live today. For years, the kitchen and great room have fought for prominence in the minds of house hunters, designers, and home builders. But 2013 is the year when both spaces are pulling their punches. New home construction is shifting away from the once-ubiquitous great room design. And that shift can make it a design challenge to update or show a home for living that was originally focused around a large, open living space, says Heather McCune, director of marketing for the Newport Beach, Calif. – based architecture firm Bassenian Lagoni. “The downside to the great room house has always been that you walk right into the living space,” says McCune. Her company is on a mission, she says, to remake the great room by helping owners figure out “how to create a sense of entry.” Some techniques for this include expanding the entry space vertically and creating a more classic foyer to better welcome visitors. Not in your sellers’ budget? A rug, small table, and wall mirror can serve as an entryway focal point.

Shutting Down Clutter Central Besides often being an abrupt welcome to the house, great rooms tend to act as a centrifuge for all items associated with living. Lita Dirks, founder and owner of Denver-based design firm Lita Dirks & Co.,

BAKERSFIELD REALTOR® MAGAZINE

says she sees a growing desire among home owners to reduce this tendency. “They want to eliminate all that clutter,” she says. “They just want to clean up their lives and simplify everything.” Builders and designers are trying to meet those needs by integrating so-called “drop zones” into entryway design. They’re adding nooks and tucking away storage where home owners can stow keys, mail, and all the other items that so easily fill up the living space when occupants come home for the day. “A drop zone is a requirement in every one of our designs,” says Mark Patterson, co-owner of PATCO Construction in Sanford, Maine. Even in a small corner of a listing, you

could put this idea to action. When staging the entryway space, use a small table with a drawer, a mail organizer, key hooks, and a charging station. Still, not everything can be left in the drop zone. Instead of allowing the great room to become a place for everything,

up larger great rooms into usable, welldefined areas.

Kitchens: The Heart of the Living Triangle

designers are trying to put each thing in its place. They’re carving out small spaces such as homework nooks for kids, food prep stations in the pantry, and other spots that allow a delineated area for common household activities. McCune says these “lifestyle spaces” help home owners break

There’s nothing like an impressive kitchen to help sell a house. Jerry Gloss, senior partner of KGA Studio Architects in Louisville, Colo., says his company’s designs integrate concentric circles of spaces that cluster around the kitchen, which is placed at the heart of the house. “All those rooms radiate from it,” he says. Architects and designers call the integration of living and dining space a “living triangle.” The triangle helps home owners connect living space in the front of the home to the “family service area” in the back, says Dominick Tringali, founder and president of Bloomfield Hills, Mich. – based Dominick Tringali Architects. “The kitchen is still the heart of the home,” he says. “That’s where we start designing,” he says. “It’s all integrated in the back of the house. This is what we see nowadays.” Dirks agrees that the living triangle pulls all of the central living spaces together. “What backs up the great room but the kitchen?” she asks. “I think of it as ‘prep, eat, and play.’ ”

Bring It Together with 2013 Design Touches You can borrow some design shortcuts in your staging, so home owners can achieve the look of integrated spaces without extensive remodeling. Common finishes across rooms can help tie them together. Dirks notes that the use of soft grays, metal backsplash tiles, and furniture-matching wood stains create a “transitional” space in the kitchen. And don’t forget to look down. “We don’t like flooring breaks,” says Jerry Collin of Kay Green Design in Orlando, Fla. “You can make a small home look bigger by not breaking it up.” Taking kitchen elements beyond their traditional scope can help expand the space while at the same time integrating it into the living triangle. “Extend the backsplash over the cabinets,” advises Mary DeWalt of Mary DeWalt Design Group in Austin, Texas. “It makes it feel so much richer and more complete.” Beyond integration, Tringali cites horizontal lines, flamed granite, and

beamed ceilings as examples of kitchen design trends for 2013. But perhaps the most universally agreed upon change for 2013 kitchens is in the heart of the home: the kitchen island. Center island shapes are gaining variety, from retro, kidney-shaped workspaces to triangles that gesture toward other centers of activity. And material choices are opening up too, with new Formica options, solid stone, and recycled beer bottles gracing work surfaces. What’s out of fashion? “Those elevated bars that are trying to hide a sink. The sinks are beautiful today!” says Dirks. Besides, she adds, it’s all about functionality: “You can’t work at an elevated bar.” The result: kitchen islands everywhere are flattening out. DeWalt says this choice is trending everywhere from Pinterest to Restoration Hardware. Meanwhile, builders are responding to universal design by differentiating countertop heights to accommodate all.

Implementation on the Cheap The eclectic nature of this trend means that room integration solutions are aesthetically forgiving and available at many price points. For example, elements from a kitchen backsplash can be brought out of the space without spending a fortune. “If you can’t do tile all the way to the ceiling,” DeWalt says, “use paint above the cabinets that’s as close to the tile color as you can get.” And don’t assume the living triangle is only for mansions. Even a kitchen situated in a hallway can be inviting and feel integrated. “The galley kitchen is a personal favorite of mine,” Dirks says. “It’s so efficient. It’s sort of fun to see these kitchens coming back.” He cites the embrace of new urban living environments as a reason for the comeback and again advocates the use of those metals and soft grays to create “a softened industrial look.” That can tie together such spaces and “the galley kitchen becomes memorable,” he says. So whether you’re melding the cramped confines of an urban loft or the amorphous shapes of a dated minimansion, you can find countless ways to help each living area relate to the next to display the true greatness of the space. BAKERSFIELD REALTOR® MAGAZINE

How much does it (really)

Cost to Decorate?

Designers share secrets about the costs of assembling finished spaces — and the numbers may surprise you!

urveys such as Remodeling magazine’s “Cost vs. Value” report detail how much it costs to complete a variety of major popular home improvement projects each year, including the always popular kitchen and bathroom redos. But those numbers don’t reveal many of the additional expenses that give a room a truly finished look: a good paint job, built-in cabinetry, furnishings, carpeting, design lighting, accessories, and so for living much more. Buyers and sellers who haven’t recently decorated or remodeled have no clue how quickly costs add up — sometimes exponentially. To get an idea of what finished rooms cost to complete, we asked top designer-owners of Decorating Den Interiors franchises in different cities

to show us a single room they designed. Some shared before and after photos, furnishing costs, and each space’s challenges and advantages. You’ll hear where they splurged and when they cut back, as well as additional tips to guide you through the process of completing a room.

living room with limited access to the kitchen

Living Room

way to get into the kitchen, except through

How Much: $13,049

out a wall?’ And I did!”

Designer: Lisa Landry, Arlington, Texas

Advantages: It’s a good-sized room with a

Challenges: The designer’s own home had a

fireplace and a view of the yard.

and patio, a poor circulation path through public areas, and little flow within the room itself. “When my dad, a real estate salesman, showed me the house, he said, ‘You won’t like the layout, but will like the yard,’” she says. “But I saw it and found there was no the dining room. I said, ‘Why can’t we knock

Solutions: Landry removed the wall to the left of the fireplace for access to the kitchen,

Before

making the kitchen less claustrophobic and creating a better circulation path within the living room. A door to the patio replaced a window. She replaced the carpeting with stained hardwood flooring and arranged the furniture in a conversational square. Tip: Make sure you use all four corners of a room so you don’t waste space. Also, create the traffic pattern around the furniture grouping, not through it.

Master Bathroom How Much: $50,000

Designer: Theresa Gionesi, Long Island, N.Y. Challenge: This designer wanted to remodel her own master bathroom with an old-world, luxurious look after a trip to Venice, Italy. Solutions: Gionesi splurged on marble for a custom vanity and other wall and floor surfaces. She used elegant polished nickel faucets, wallpaper that looked hand-painted, a good chandelier, and quality detailed moldings. Tip: Gionesi says she could have cut back with less expensive tile, chrome faucets, plainer molding, and simpler window treatments and wallpaper.

After 22

BAKERSFIELD REALTOR® MAGAZINE

Dining Room How Much: $9,629

Designer: Terri Ervin, Atlanta

Challenges: While they pursued a sleek,

semi-custom cabinets, a good (but not top)

sophisticated, and contemporary look,

exhaust hood, and granite countertops ($40

designers were challenged to reuse the

to $50 per square foot).

existing shag rug, incorporate a piece of art, and find a sideboard that would look proportionate in a smaller room. Advantages: The owners already had a glass

Before

Advantages: The clients were willing to

in quality upholstered seating — chairs and

increase the budget to get the desired look,

a banquette with crystal button detailing (a

including spending more on built-in storage

splurge at $30 a yard) lent a luxurious look.

for clothing and a TV.

A $900 crystal chandelier created another

They also used red pops to tie everything together. Tip: Have a vision; here, it was an updated contemporary dining room that would fit with the adjacent living room because of their similar colors.

Kitchen

How Much: $93,200 Designers: Judy Underwood and Cliff Welles, Bonita Springs, Fla. Challenges: These designers sought to replace a French-country style kitchen with a more contemporary look that would attract guests when entertaining. Advantage: The budget was generous, considering the size of a 12-foot-square room. However, the average price of an upscale kitchen now hovers near $105,000, according to Remodeling magazine’s annual “Cost vs. Value” survey. Solutions: Though the kitchen was demolished, plumbing lines and wiring were left intact to save money. The budget was divided among custom wood cabinets, concrete countertops with recycled glass pieces (the prime “wow” at a steep $130 a square foot), glass basketweave-tiled backsplashes ($65 a square foot), top Bosch and Marvel equipment, and 6-inch mapleplank flooring instead of builder-grade tile. They painted the walls a sophisticated pale silver color. Tip: To accomplish this effect for less, choose

needed to be completely overhauled, except

overly trendy.

Solutions: Designers focused on investing

bay to play up the room’s 9-foot-high walls.

Challenges: This was a cavernous room that

and produce clean-lined space without being

to.

by designing simple panels, hung outside the

Serrano, Orlando, Fla.

places to sit and read, have enough storage,

she knew she could go higher if she needed

artwork. They cut back on window treatments

Designers: Kathie Golson and Adriana

stay close to the $20,000 budget, offer good

base. Although Ervin spent under $10,000,

pewter table base and custom framing for

How Much: $28,575

for the existing shades. The goals were to

top for the table, though they wanted a new

focal point splurge, alongside an antiqued

Master Bedroom

After

Solutions: The designers painted an accent wall behind the bed black for drama and to bring down the high ceiling. They found quality window treatments with sequins for added pizzazz and used different gray paint shades for the three other walls, ceiling, and trim for a more interesting look. Different pillows were brought in for a seasonal change of colors and patterns. Because the husband swims, the designers upholstered a bench in a practical marine vinyl so he can sit and put on or take off shoes without causing damage. Tip: Decorate in stages if need be. Because the clients weren’t sure about the black hue, the designers offered to repaint the wall if they didn’t like it.

Balcony

How Much: $9,400 Designer: Sarah Hermans, Philadelphia Challenge: The house had to be “resale ready,” so designers were asked to make the 12-foot-square balcony of this show house look homey at a modest cost with no extreme color choices or remodeling changes. Advantage: The balcony was already a nice size, with ample room for seating and tables. Solutions: Designed with English country house ambiance and a touch of France in mind, this balcony would give home owners a place for morning coffee or an after-work glass of wine. Designers painted the rubber floor in a white and khaki checkerboard pattern that runs diagonally to expand the feeling of space. Tip: Splurge on seating and cut back on curtains and pillows. Include enough seating so an area can be used, rather than just looked at.

Get involved with our The Young Professionals Network (YPN) invites you to be a part of the team We are an organization of young, careerminded, real estate professionals who focus on the importance of education, technology, community service and building relationships through networking, so that we can succeed as leaders of tomorrow.

THE FUTURE OF OUR INDUSTRY In a field where the average age is 52, younger real estate practitioners often strive for a way to connect with one another and tap into valuable resources that will help them succeed in business. REALTOR® Magazine launched the Young Professionals Network (YPN) in 2006 as a way to help the younger generation of REALTORS® build a

BAKERSFIELD REALTOR® MAGAZINE

stronger link with the magazine and the real estate industry in general. Through national networking events, a lively blog and an information-packed website, REALTOR® Magazine’s Young Professionals Network gives members the tools they need to advance their careers — and have fun in the process.

YPN MISSION STATEMENT YPN helps young real estate professionals excel in their careers by giving them the tools and encouragement to become involved in four core areas: REALTOR® associations. Attend REALTOR® conferences and pursue leadership roles with their local, state and national associations. Real estate industry. Take an active role in policy discussions and advocacy issues; be informed about the latest industry news and trends. Peers. Network and learn from one another by attending events,

participating in online communication, and seeking out mentoring opportunities. Community. Become exceptional members of their community by demonstrating a high level of REALTOR® professionalism and volunteering for causes they feel passionate about.

YPN LEADERSHIP:

Freddy Perez, Chairman Keller Williams Realty Aimee Jones, Co-Vice Chair RE/MAX Magic Juliana G. Domlao, Co-Vice Chair Miramar International – Downtown Jacob Marquez, Director Coordinator Miramar International – Marketplace If you have any questions please contact: Cody Brown, Phone: (661) 635-2301 Email: cody@bakersfieldrealtor.org Visit our Website bakersfieldrealtor.org Like us on Facebook facebook.com/bakersfieldypn Follow us on Twitter twitter.com/bksfldrealtors

BAKERSFIELD REALTOR速 MAGAZINE

Our Local

Housing

Market OVERVIEW OF PROPERTIES Area

# Sold

Dollar Value

Average Sold Price*

% of List Price*

2012

2013

2012

2013

2012

148

157

$19,709,167

$14,887,446

$138,789

$101,097

98.32

98.62

103

$8,245,749

$4,878,609

$85,293

$56,401

95.84

97.84

143

177

$18,854,143

$18,853,083

$137,923

$111,040

99.17

97.66

$6,099,500

$3,215,923

$342,912

$226,852

106

95.43

2013 2012 2013

2012

173

194

$19,978,962

$16,476,207

$115,485

$84,929

98.52

99.24

387

437

$54,941,934

$50,014,040

$144,336

$115,598

98.37

97.99

134

142

$22,856,290

$19,096,639

$175,935

$138,213

100.12

97.71

$24,569,998

$11,804,010

$294,976

$251,305

97.51

95.76

132

$7,289,934

$10,191,374

$93,090

$77,560

100.93

99.46

101

146

$12,814,777

$13,214,579

$132,561

$91,240

101.14

98.54

$1,483,525

$1,547,699

$164,836

$122,683

94.87

97.19

467

540

$57,118,770

$48,122,353

$127,871

$90,827

100.71

99.34 99.36

875

1015

$151,879,459

$142,407,726

$182,055

$146,357

100.15

511

492

$144,973,549

$111,139,203

$284,446

$228,516

99.55

99.05

$899,050

$1,224,400

$224,763

$204,067

97.93

99.93

147

148

$33,484,490

$27,472,130

$228,072

$188,291

100.81

99.2

700

722

$182,736,639

$162,662,082

$261,287

$225,322

100.56

99.38 98.82

246

263

$81,711,471

$75,811,999

$333,373

$290,299

100.04

$2,978,000

$2,106,550

$270,014

$219,889

100.26 100.73

$12,429,727

$14,042,850

$194,512

$159,399

96.24

96.95

$1,887,500

$1,289,000

$170,750

$184,143

196

138

91.49

95.32

$2,082,757

$2,785,449

$92,507

$96,072

93.79

97.16

$2,610,684

$2,960,930

$100,067

$88,210

96.35

88.52

112

$5,858,414

$9,384,350

$112,662

$83,877

100.51

98.89

$885,000

$465,900

$295,000

$155,300

178

100.81

98.75

$1,757,396

$2,033,200

$117,160

$158,608

96.56

95.6

$1,430,500

$978,500

$136,688

$126,143

142

97.22

96.2

143

216

$20,818,800

$23,855,774

$145,586

$110,971

98.38

97.11

103

114

$8,872,589

$8,612,296

$88,588

$75,438

97.84

97.9

162

204

$24,181,342

$23,434,700

$147,758

$116,021

97.85

96.56

108

174

$26,063,570

$30,578,189

$250,642

$193,041

97.29

98.13

* Figures from single family homes only. Statistics were run on September 17, 2013.

DOM*

2013

BAKERSFIELD REALTOR速 MAGAZINE

2012

1,000

The numbers tell the story

800 600 400 200

2013 Compared to 2012 by MLS Area 0

ACTIVE

CONTINGENT

PENDING

SOLD

Active, Pending and Sold - All Areas 1,400

1,400

2012

1,000

800

600

400

200

1,200 1,000 800 600 400 200 0

CONTINGENT

ACTIVE

PENDING

SOLD

July 2013 All Areas July

2013

1,000

800

1,400

1,200

2013

1,200

2012

CONTINGENT

ACTIVE

PENDING

SOLD

August 2013 All Areas

% Year Year over Year % Year Year over Year % Year over % Year over 2012 2013 2012 2012 August August 2013 Change Change Change Change 2013 % Year over Year % Year over % Year over % Year over Year July July 2013 2013 2012 2012 2013 2013 2012 2012 Active 1,049 912 15.0% 15.0% Active August 1,156 922 25.4% Active 1,049 912 Active August 1,156 922 25.4% Change Change Change Change 2012 Contingent 492 962 962 -48.9% -48.9% Contingent 494 967 967 -48.9% -48.9% Contingent 492 Contingent 494 Active Active 1,049 1,049 912 912 15.0% 15.0% Active Active 1,156 1,156 922 922 25.4% 25.4% 1,103 1,250 1,250 -11.8% -11.8% 1,047 1,169 1,169 -10.4% -10.4% Pending Pending 1,103 Pending Pending 1,047 Contingent Contingent 492 492 962 962 -48.9% -48.9% Contingent Contingent 494 494 967 967 -48.9% -48.9% Sold 662 648 648 2.2% Sold 618 707 707 Sold 662 2.2% Sold 618 -12.6% Pending Pending 1,103 1,103 1,250 1,250 -11.8% -11.8% Pending Pending 1,047 1,047 1,169 1,169 -12.6% -10.4% -10.4% Total Volume Closed $132,813,311 $96,753,103 37.3% Total Volume Closed $128,041,248 $114,522,112 Total Volume Closed $132,813,311 $96,753,103 37.3% Total Volume Closed $128,041,248 $114,522,112 11.8% 11.8% Sold Sold 662 662 648 648 2.2% 2.2% Sold Sold 618 618 707 707 -12.6% -12.6% Median Sales * $186,745 38.3% Median Sales * $190,000 Median Sales Price * Price$186,745 $135,000$135,000 38.3% Median Sales Price * Price$190,000 $145,000$145,000 31.0% 31.0% Total Volume Total Closed Volume Closed $132,813,311 $132,813,311 $96,753,103 $96,753,10337.3% 37.3% Total Volume Total Closed Volume Closed $128,041,248 $128,041,248 $114,522,112 $114,522,112 11.8% 11.8% Average 38 48 Average 37 54 -31.5% -31.5% Average DOM * DOM * 38 48 -20.8% -20.8% Average DOM * DOM * 37 54 Median Sales Median Price Sales * Price $186,745 * $186,745 $135,000$135,000 38.3% 38.3% Median Sales Median Price Sales * Price$190,000 * $190,000 $145,000$145,000 31.0% 31.0% July

Average DOM Average * DOM *

Bakersfield ACTIVE

2013 2012

2013

CONTINGENT

PENDING

-20.8%

Average DOM Average * DOM *

-31.5%

Bakersfield

SOLD

% Year Year over Year % Year Year over Year % Year over % Year over 2012 2013 2012 2012 August August 2013 Change Change Change Change % Year over % Year over Year % Year over % Year over Year July 2013 2012 August August 2013 2013 2012 July 2013 Sold 581 2012 538 8.0% Sold 526 2012 591 -11.0% -11.0% Sold 581 538 8.0% Sold 526 591 Change Change Change Change Total Volume Closed $119,845,911 $83,849,366 42.9% Total Volume Closed $113,327,570 $100,410,074 12.9% Total Volume Closed $119,845,911 $83,849,366 42.9% Total Volume Closed $113,327,570 $100,410,074 12.9% Sold Sold 581 581 538 538 8.0% 8.0% Sold Sold 526 526 591 591 -11.0% -11.0% Median Sales * $195,000 37.8% Median Sales * $200,000 29.0% Median Sales Price * Price$195,000 $141,500 $141,500 37.8% Median Sales Price * Price$200,000 $155,000$155,00029.0% Total Volume Total Closed Volume Closed $119,845,911 $119,845,911 $83,849,366 $83,849,366 42.9% 42.9% Total Volume Total Closed Volume Closed $113,327,570 $113,327,570 $100,410,074 $100,410,074 12.9% 12.9% Average 34 47 -27.7% Average 34 52 -34.6% -34.6% Average DOM * DOM * 34 47 -27.7% Average DOM * DOM * 34 52 Median Sales Median Price Sales * Price$195,000 * $195,000 $141,500$141,500 37.8% 37.8% Median Sales Median Price Sales * Price$200,000 * $200,000 $155,000$155,000 29.0% 29.0% July

July

2013 2012

2013

* Figures from single family homes only. Average DOM Average * DOM *

-27.7%

Average DOM Average * DOM *

-34.6%

* Single * Single Family OnlyFamily Only

2013 QUARTERLY

* Single Family * Single Only Family Only

1st Qtr 2013 New Listings

2,313

1st Qtr 2012 2,896

2nd Qtr 2013

2nd Qtr 2012

2652

2,729 1,293

996

1,528

1025

Pending

1,838

2,284

2045

2,242

Sold

1,654

1,901

1877

2,232

$287,135,286

$263,919,751

$362,652,923

$337,643,258

$159,450

$122,301

$180,000

$132,500

102.20

85.21

111.86

90.51

Contingent

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

Figures from 1st quarter were run on May 21, 2013, 2nd quarter on July 18, 2012. Ran 5/21/12 Ran 07/18/13

3rd Qtr 2013

Ran 10/15/12

3rd Qtr 2012

4th Qtr 2013

Ran 01/23/13

At Your Fingertips

TECHNOLOGY FOR REALTORS® TUG leader shares her “tech savviness” with our members, and stresses how hacking can be costly for you and your business BY ALYSSA KNIGHT, Keller Williams Realty. TUG Coordinator

Protect Your Passwords NOW! When agent Joe N. Trouble had his email account hacked, a malicious person sent urgent emails to all of Joe’s clients and contacts, letting them know that his life was in danger and he needed money now! (This is a common scam.) Of course, this embarrassed Joe as the concerned calls Alyssa Knight came pouring in. He took time out of his business to explain to everyone that he was hacked, and oh-by-theway, the hacker now had their email addresses too. His short sale clients had to know that their information was also compromised since they had sent their tax returns to him. The stress was huge, to say the least. Would Joe lose their immediate business? Worse than that, would he lose their referral business? What would it cost to clean this up? What would you do if your email account is hacked? And, more importantly, what can you do to prevent this from happening in the first place? If you have been hacked, take a deep breath, and …

Common hacking threats can be av

Don’t let your business, and your clien

Change your password! If the hackers forgot to change your password and you can still log in, do so immediately and change that password. (See the tips below) Recapture your account If your access is blocked, follow the directions on the email site help center. Once you again become the master of your email kingdom, invent a very sophisticated password and change your security questions. Be creative in your answers because the hacker may well have nailed those questions correctly in the first place. Trust me — you want them out of your life and not as permanent pen pals. Report the incident to the email site Your email provider may be able to provide you with further details about the nature and source of the attack, along with tools they may have available to protect your information and get you back up and running. Check with your bank or credit union, which may offer you access to identity protection services. Speak up immediately! Notify everyone on your contact list that your account has been compromised. Remind them not to open any links and be suspicious of any email coming from you for the time being. Assure them that you are taking aggressive steps to correct this. Further, they should double up on their computer protection. Run an updated anti-virus program Don’t think that sophisticated email hackers are in it for the fun of grabbing your email to simply embarrass you. Often their goal is much more insidious. Why crawl into a life unless you can truly monetize it? In some cases, they will insert an innocent-looking program into your system so that it can report back to them with all of your passwords or private information. Time is of the essence, as we like to say!

Get that anti-virus program running to eliminate any viruses, spyware or malware that it discovers. If you don’t have a new and sophisticated security software program, now is not the time to cut corners. Install the best program available. Review your personal email settings Make sure the cyber ninjas haven’t created forwarding email addresses, and if you find any, delete them immediately. Also, look carefully at the email signature and make sure that it’s really yours. The hackers may have included some malicious links there too. Change passwords or security questions for other sites Too often we opt for convenience over security and use a single password for multiple websites, including social media, secondary email sites and (worse) financial services. Not a good idea. In fact, it’s a very bad idea. If you’ve used your email passwords or security questions with any other site, change them now, using a different password for each and every login. Reminder: Don’t think it’s enough to use the same password while changing just the last few digits. A child could figure that out in minutes — seriously. Monitor your credit Assuming that the hacker was able to find either your Social Security number or other valuable pieces of personal information, it will become important for you to monitor your credit and various financial accounts for suspicious activity. To avoid being a hacker’s new best friend Be proactive to protect yourself from being hacked. More than 40 percent of all passwords use only lowercase letters.

g verted

nts, be in jeopardy Your password will be 1,500 times harder to hack, if you incorporate upper - and lowercase letters, special characters and numbers. Whatever you post on Facebook can be scrutinized by hackers as clues to your passwords. These invaders know that people often use

their kids’ or pets’ names, hobbies, anniversaries, birthdates (the things that we all love to talk about) as our passwords. So to be safe; do not include anything in your password that links back to you! How in the world can you keep track of your dozens of hard-to-hack

passwords? There are a lot of secure password management programs available at little or no cost. Check them out, and use one today! Honestly, a little bit of paranoia can be a good thing when it comes to protecting ourselves from these hackers.

Here are a few password management products that are worth considering:

RoboForm Cost: $9.95 for first year roboform.com Stores passwords and personal info on your computer only; it does not transfer data to the cloud. The app allows for multiple profiles — handy for team use — as well as alternate addresses. The entry-level version is not subscription-based, while RoboForm Everywhere starts at $9.95 annually, which lets you run the app on any number of computers. RoboForm2Go Cost: $19.99, desktop msevensoftware.com Offers 17 standard templates for logins, with the ability to create custom templates. The app allows you to categorize records into groups and mark favorite records for fast access. On mobile devices, you can auto-lock the screen after a set time and set the self-destruct feature to wipe data after a set number of incorrect password attempts. You can also share records via email, text or clipboard, and auto-backup encrypted data to an SD card

Password Genie Cost: $19.95 per year securitycoverage.com This app stores passwords and personal information so you can use autoform fill functions to easily open secure websites. Password Genie also provides space to store personal information such as PINs, and credit card information.

DirectPass by Trend Micro Cost: Free for five passwords; $14.95 per year unlimited passwords trendmicro.com Provides password generation, keystroke encryption, secure password generation, automatic form-filling, confidential notes. Also offers Secure Browser, designed for online banking and financial sites. Norton Identity Safe Cost: Free identitysafe.norton.com Along with support for multiple browsers, form filler and unlimited notes, Identity Safe includes Safe Web, a browser extension that alerts you when a site might not be what it appears to be. LastPass Cost: Free for desktop lastpass.com Allows for import and export, and permits sharing of passwords through the Internet. It also lets you create and keep notes, generate complex passwords. The premium version includes mobile support and YubiKey (hardware authentication device that changes passwords every time it’s used).

25 top passwords that hackers love: Many people want a password that is quick and easy for them to remember. Hackers realize that fact, and will try these 25 passwords in their attempts to access your information. Listed in the order of attack: 1. password 2. 123456 3. 12345678 4. abc123 5. qwerty 6. monkey 7. letmein 8. dragon 9. 111111 10. baseball 11. iloveyou 12. trustno1 13. 1234567 14. sunshine 15. master 16. 123123 17. welcome 18. shadow 19. ashley 20. football 21. jesus 22. michael 23. ninja 24. mustang 25. password1 To make a password harder to hack, it must be eight characters or longer. It should include upper- and lowercase letters, characters and numbers. Doing so can make your password much more difficult to hack.

Mobile Technology

Dominates home buying process

realtor ® technology

CALIFORNIA ASSOCIATION OF REALTORS®

emonstrating the proliferation of mobile technology into nearly every facet of our lives, more than eight out of 10 home buyers are accessing home information on their smart phones and computer tablets, according to the C.A.R. “2013 Survey of California Home Buyers.” “With more and more consumers using mobile devices and mobile technology, such as apps and social media platforms, buyers are increasingly using their smartphones and computer tablets to view comparable house prices, search for properties, take photos, and create videos of homes and amenities, as well as research communities and real estate agents,” said C.A.R. President Don Faught. “As a result, home buyers today are more informed and have a greater sense of control over what could be a daunting process.” The survey found 85 percent of

BAKERSFIELD REALTOR® MAGAZINE

buyers used a mobile device during the home buying process, with the majority of buyers (70 percent) accessing the internet from their smart phones and 15 percent accessing it from their tablets. While the majority of buyers (61 percent) found their home through an agent, the percentage who found their home online more than doubled from 16 percent in 2012 to a record high of 37 percent in 2013. Almost one-third (30 percent) of buyers rated Realtor.com as the most useful website, followed closely by Zillow at 28 percent. Broker and agent websites were also helpful in the home buying process as buyers increasingly seek local expertise and information. The use of social media in the home buying process continued to increase, with three-quarters of buyers now using it, compared to 52 percent who used social media in 2011. Buyers primarily used social media for buying tips and suggestions from friends (43 percent),

neighborhood information (42 percent), and to view their agents’ Facebook pages (41 percent). The use of social media as a form of communication is expected to grow, with 91 percent of buyers saying they are receptive to receiving information about the home buying process from their agent via social media. The survey also found that buyers spent nearly six months considering a purchase before contacting an agent, nearly twice as long as last year. They took more time investigating homes and neighborhoods before contacting an agent, spending just over seven months on researching, compared to about 1.5 months last year. Additionally, buyers spent nearly 10 weeks looking for a home with their agent, a week longer than last year. More than eight out of 10 buyers (85 percent) made offers on other homes, and onethird said they settled for the best option given the limited supply of houses. “The lengthier consideration time and home search illustrates the impact of low

housing inventory and increasing home prices,” said Faught. “These factors caused buyers to weigh their options more carefully before making their home purchase.” Additional findings from C.A.R.’s “2013 Survey of California Home Buyers” include: n Buyer optimism about the future direction of home prices continued to grow, with the majority of buyers (60 percent) believing prices will go up in five years and 36 percent seeing prices rise in one year, up from 41 percent and 25 percent, respectively, last year. n Buyers cited price decreases (38

percent), favorable prices/financing (12 percent), and the desire for a better location (10 percent) as top reasons for purchasing a home. n Reflecting the prevalence of tight lending standards, buyers experienced extreme challenges in obtaining financing. On a scale of one to 10, with 10 being extremely difficult, buyers rated their difficulty in obtaining financing at 8.6 on average, the highest in the survey’s history. n Higher down payments are the market norm these days, with buyers putting an average of 25 percent down on their home purchase. The average down

payment has been greater than the traditional 20 percent since 2009. n Ninety-one percent of buyers obtained a fixed-rate loan, up from 84 percent in 2011, reflecting low rates and the desire for certainty as the market gets back to basics. The 2013 C.A.R. Home Buyer survey was conducted by telephone with 1,400 people statewide to measure their perceptions of the home buying process. Eligible respondents all closed escrow on their new homes within the six months prior to March 2013. For the full report on the survey findings, please visit C.A.R.’s Market Data webpage.

Welcome to our Houzz

realtor ® technology

With 14 million monthly users, this new social site is a great fit for real estate pros as a slide show on your Web site or blog. Brandon Patterson, a sales associate with RE/ MAX Real Estate Concepts in Des Moines, Iowa, focuses on new-home sales and has created ideabooks featuring stylish kitchens, home offices, and do-it-yourself ideas.

BY MELISSA DITTMANN TRACEY, Realtor® Magazine

f you like looking at home and design photos on Pinterest, you’ll love another fast-growing repository of beautiful home photos. It’s called Houzz, and it’s already turning heads in the real estate community. Houzz — a combination of “house” and “buzz” — is a home remodeling website that caters to current and aspiring home owners with a passion for renovation and design. Today 90 percent of the site’s 14 -million monthly unique visitors are home owners. In March, real estate professionals were invited to join the Web site’s growing community with the launch of the site’s “real estate” category for practitioners. The profile section enables you to introduce yourself and follow other users. Creating “ideabooks” and “projects” allows you to share and engage with others excited about home design. Real estate pro and home stager Michelle Morris with RE/MAX Gateway in Chantilly, Va., considers Houzz the “Facebook of the design world,” and considers it a powerful ally in differentiating yourself in the real estate business. Whether her clients are selling, buying, or renovating, Morris uses Houzz to help them better envision a home’s potential. She’ll come to showings armed with the Houzz app on her iPad to help people look past aesthetic challenges. She’ll peruse Houzz’s searchable library of renovation

SHOWCASE

photos showing how a dated house can be transformed into the modern home her customers crave. “Buyers’ eyes light up when they can see the possibilities of a home. Houzz gives you ideas, and ideas can change everything.” Here’s how others in the real estate community are using Houzz:

INSPIRE

Houzz features a library of more than 1.5 million high-quality photos uploaded from designers and remodelers, showcasing everything from kitchens and bathrooms to landscapes and exteriors. You can sort those photos into ideabooks under any label you choose. Ideabooks can be featured on your profile page, e-mailed to clients, or embedded

Use the “projects” folder on your Houzz profile page to show off your portfolio of work, uploading photos of properties you recently sold, renovated, staged, or anything that illustrates what you do. Scott Campbell, a broker with Century 21–The Realty Group in Washington, N.C., posted photos of his own renovation project, a historic fire station built in 1912 that he’s renovating into lofts, and invited the Houzz community to leave feedback.

REVIEW Reviews by your clients and peers can be testimonials to your good work. To move higher on the site’s directory of agents and contractors, you’ll need to amass several reviews, receive high ratings, and be active in discussions by posting to the site.

COLLABORATE Use the site to collaborate with a client on a design project. Make the project accessible to the community or keep it private between you and your client. BAKERSFIELD REALTOR® MAGAZINE

Welcome, new REALTOR® members Your journey as a REALTOR® has just begun

AUGUST: Carol Bennett — Carol Bennett, Broker, Melissa Dignan — Watson Realty, ERA, Nicholas Howell — Scott Tobias Real Estate, Tayndra Hunter — Real Estate eBrokers, Inc., Gurdyal Singh Mann — Guardian Real Estate, Phi-Yen Markendorf — Watson Realty, ERA, Jared Mitchell — Scott Tobias Real Estate, Evie Pena — Heartland Realty, Joseph Velasquez — Miramar International — Coffee, Nathan Williams — RE/MAX Golden Empire, Jackie Wilson — Wilkerson Realty

2014 Director Meetings

ASSOCIATION Board of Directors Schedule February 25, 1:30 pm April 29, 1:30 pm June 24, 1:30 pm August 26, 1:30 p.m. October 28, 1:30 pm December 03, 1:30 pm

GEMLS Board of Directors Schedule January 28, 1:30 pm March 26, 1:30 pm May 27, 1:30 pm July 29, 1:30 pm September 30, 1:30 pm November 20, 1:30 p.m.

Budget/Long Range Planning Schedule February 18, 1:30 pm April 21, 1:30 p.m. June 16, 1:30 pm August 20, 1:30 p.m. October 20, 1:30 pm December 02, 1:30 p.m.

Budget/Long Range Planning Schedule January 21, 1:30 pm March 7, 1:30 pm May 19, 1:30 pm July 21, 1:30 pm September 22, 1:30 pm November 17, 1:30 pm

BAKERSFIELD REALTOR® MAGAZINE

SEPTEMBER: Larry Burkey — Keller Williams Realty, Jorge Chavez Jr. — Alliance Realty & Development, Jenny Cortez — California Home Pros, Armando Espinosa — Coldwell Banker Preferred — Westwind, David Fuentes — Alliance Investments Real Estate, Shelby Hale — Urbania Real Estate. Ian Mellon — Signature Home Real Estate, Sanglim Peters — Tholco Real Estate Group, Inc., Joseph Selassie — Keller Williams Realty, Marie Soto-Rispoli — Miramar International — Coffee, Charlene Oliver — Miramar International — Downtown, Trisha Tanabe — Trisha Tanabe, Broker, Avtar Tung — Coldwell Banker Preferred — Westwind

Member’s

Christmas Party WHEN: December 3rd WHERE: The Association WHO: All members

Happenings at the Association

SNAPSHOTS

Barbara Wells, Jenny Cameron & Michele Cooper

of moments, memories and events

Gail Malouf & Mel Khachigian

ASSOCIATION FLAG POLE DEDICATION

Flag Pole Dedication

Anna Albiar, iPad winner at our T.I.M.E event

David Gay, Wayland Louie & Scott Tobias

LOCAL GOVERNMENT RELATIONS WITH TOM TORLAKSON

Theresa Olson & Chris Clark

Kala Knox & Adriana Aguirre

Shari George & Sheryl Gallion

Amy Mestmaker & Brad Barnett

Barbara Bogner, Tony Ayon & Robin Ablin

Mel Khachigian, John Boydstrum & David Knoeb

PAST PRESIDENT’S LUNCHEON

CHRISTIAN REAL ESTATE FELLOWSHIP

Cheri Romero & Ronda Newport

Members of Our Association Staff BAKERSFIELD REALTOR® MAGAZINE

IN A NUTSHELL Equity home sales make up four of five sales and reach highest level in nearly six years CALIFORNIA ASSOCIATION OF REALTORS®

The share of equity home sales in California continued to expand in June, comprising four of every five home sales, thanks primarily to a drop in distressed sales. Meanwhile, sales of REOs fell into the single-digits for the third straight month and registered levels not seen since September 2007, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today. Distressed housing market data: n The combined share of all distressed property sales continued to decline in June, dropping to 20.1 percent in June, down from 21.8 percent in May and down from 42.2 percent in June 2012. Twenty-one of the 36 reported counties showed a month-to-month decrease in the share of distressed sales, with San Mateo and Santa Clara each recording the smallest share at 7 percent for both counties in June. n The share of equity sales – or non-distressed property sales – continued to expand in June and now makes up four in five sales, the highest share since December 2007. The share of equity sales in June increased to 79.9 percent, up from 78.2 percent in May. Equity sales made up more than half (57.8 percent) of all sales in June 2012. n Of the distressed properties, the share of short sales was 12.9 percent in June, down from 14 percent in May and down from 21.4 percent a year ago. The June 2013 figure was the lowest since June 2009. The continuing decline in short sales indicates more previously underwater homes are moving into positive equity as home prices remain on an upward trend. n The share of REO sales also continued to fall, dropping to single-digits for the third straight month, down from 7.3 percent in May to 6.6 percent in June and from 20.4 percent in June 2012. n The available supply of homes loosened in June, particularly for equity sales, but remained

BAKERSFIELD REALTOR® MAGAZINE

QUICK READS FOR REALTORS ®

tight. At 1.8 months, June’s Unsold Inventory Index for REOs was essentially unchanged from 1.7 months in May. The supply of short sales inched upward from 2.3 months in May to 2.4 months in June. The June Unsold Inventory Index for equity sales rose from 2.8 months in May to 3.1 months in June. Pending home sales data: Rising interest rates put a damper on California pending home sales in June. C.A.R.’s Pending Home Sales Index (PHSI)* fell 6.4 percent in June to 114.3, down from 122.1 in May, based on signed contracts. Pending sales were down 5.5 percent from the 120.9 index recorded in June 2012. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.

2.82 percent in the second quarter of 2012. The median home price was $316,490 in second-quarter 2012, and an annual income of $62,440 was needed to purchase a home at that price. Nearly all regions of the state experienced sharp quarter-over-quarter declines in housing affordability, with Bay Area and coastal regions recording the greatest decreases in the index due to significantly higher home prices. At an index of 71 percent, Madera County was the most affordable county of the state, while San Francisco and San Mateo counties tied for the least affordable at 17 percent.

Realtors® Applaud Senate Hearings on Housing Finance Reform NATIONAL ASSOCIATION OF REALTORS®

Higher home prices drive down housing affordability during second quarter, C.A.R. reports CALIFORNIA ASSOCIATION OF REALTORS®

Significantly higher home prices, particularly in the San Francisco Bay Area and coastal regions, shut out more home buyers in the state during the second quarter of 2013, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported. The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California dropped to 36 percent in the second quarter of 2013, down from 44 percent in first-quarter 2013 and from 51 percent in second-quarter 2012, according to C.A.R.’s Traditional Housing Affordability Index (HAI). The second quarter 2013 figure fell below 40 percent for the first time since the third quarter of 2008. C.A.R.’s HAI measures the percentage of all households that can afford to purchase a median-priced, single-family home in California. C.A.R. also reports affordability indices for regions and select counties within the state. The Index is considered the most fundamental measure of housing well-being for home buyers in the state. Home buyers needed to earn a minimum annual income of $79,910 to qualify for the purchase of a $415,770 statewide medianpriced, existing single-family home in the second quarter of 2013. The monthly payment, including taxes and insurance on a 30-year fixed-rate loan, would be $2,000, assuming a 20 percent down payment and an effective composite interest rate of 3.64 percent. The effective composite interest rate in first-quarter 2013 was 3.55 percent and

The following is a statement by National Association of REALTORS® President Gary Thomas: “REALTORS® applaud Senate Banking Committee Chairman Tim Johnson, D-S.D., and Ranking Member Mike Crapo, R-Idaho, for initiating a series of hearings about the future of the secondary mortgage market and the essential elements of sustainable housing finance reform. “As the thoughtful policy discussions move ahead, REALTORS® continue to advocate for a system that ensures creditworthy buyers always have access to safe, reliable mortgages such as 30-and 15-year fixed-rate loans, even in tough economic times when private lenders cannot, or will not, enter the market. “Our goal is to help Congress, and our industry, design a secondary mortgage market model that will serve America’s best interests today and into the future, and ensure a strong housing market and economic recovery.”

MyNHD Integrates with zipForm® MyNHD Integrates with zipForm® in California for Faster Ordering of Natural Hazard Disclosure Reports CALIFORNIA ASSOCIATION OF REALTORS®

Real Estate Business Services® Inc. (REBS®), a subsidiary of the CALIFORNIA ASSOCIATION OF REALTORS®, today announced MyNHD, Inc. as the latest service provider to partner with zipForm®, making it easier and faster for REALTORS® to

complete the California Residential Purchase Agreement and Joint Escrow Instructions (RPA-CA). “We’re thrilled to participate as a California zipForm® Service Provider,” said Eric Spitz, CEO of MyNHD, Inc. “Our philosophy of a great product, a great price, with great service falls in line with C.A.R.’s initiatives to make it easier and faster for their members to close a transaction online.” California REALTORS® can find MyNHD in the natural disclosure company drop-down field of the purchase contract and other forms that require natural hazard disclosure company information. MyNHD, which costs $74.95 for a residential report, joins existing zipForm® service provider Old Republic Home Protection. “With one click REALTORS® can select the

provider of their choice, and the auto-population of information not only saves them time but also reduces the chances for input errors,” said 2013 REBS Chair Jeannette Way. MyNHD, Inc. was founded in 2010 by the same owners that founded LGS Reports in 1994, which was subsequently sold to First American Title. MyNHD carries 10 Million E&O Insurance that covers all parties in the real estate transaction and has a “you don’t close, you don’t pay” policy. All reports include federal, state, local determinations and notices, taxes, Mello-Roos and 1915 Bonds. Environmental and CLUE reports are available. More information at www. mynhd.com. zipForm® is powered by zipLogixSM. The zipLogix family of tech-savvy products is the

Realtors® Respond to President Obama’s Speech on Fifth Anniversary of Financial Crisis

California’s improving markets

NATIONAL ASSOCIATION OF REALTORS®

The number of improving housing markets continues to expand, as reported by the National Association of Home Builders (NAHB), and several are in California! NAHB’s First American Improving Markets Index (IMI) identifies metro areas that have shown improvement from their respective lowest points in housing permits, employment and house prices for at least six consecutive months.

GROWTH IN HOUSING PERMITS FROM THEIR LOWEST POINT NAHB/First American Improving Markets Index (IMI)

12.1% 3.3% 4.0% 2.3% 6.3% 11.2% 21.0% 5.1% 8.1% 2.3% 2.4% 4.9% 3.3% 0.9% 13.8% 3.8% 4.2% 3.8%

recognized industry standard for electronic real estate forms and transaction management system that are currently used by more real estate professionals than any other real estate software program. zipForm® is the exclusive and official forms software of the National Association of REALTORS®. zipLogix is a subsidiary of Real Estate Business Services, Inc. (REBS) and is a joint venture between REBS and the National Association of REALTORS®. REBS® is a subsidiary of the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) and is the leading provider of real estate products and services to practitioners in California and nationwide. For more information becoming a zipForm® Service Provider call (213) 739-8213 or email jennyr@car.org.

In his speech recently, President Obama reflected on the five years since the financial meltdown and on the housing market’s steady return from the epoch of underwater mortgages, foreclosures and frozen credit. With NAR’s support, the administration enacted key policies to stabilize the market, recover home values, ensure access to affordable credit, and most importantly, renew faith in the value of homeownership. “REALTORS® supported efforts to help more than 7 million underwater homeowners refinance their homes or modify their mortgages through the Home Affordable Modification Program and two iterations of the Home Affordable Refinance Program. Additionally, NAR worked with the Treasury Department to develop a program to help homeowners avoid foreclosure. “To reinvigorate home sales, NAR led the charge to pass the temporary home buyers’ tax credit, which helped millions of Americans buy a home. When private lenders fled the market and stymied access to mortgage insurance, REALTORS® advocated reforms to the FHA SingleFamily Mortgage Insurance Program so that it could continue to make mortgages available to qualified home buyers. “To protect future home buyers from unscrupulous lending practices, NAR continues our work with the administration and Congress to develop new lending standards that create opportunities for private capital to re-establish itself as part of a robust and competitive mortgage market. “NAR continues to advocate a system that ensures creditworthy buyers always have access to safe, reliable mortgages such as 30- and 15-year fixed-rate loans, even in tough economic times when private lenders cannot, or will not, enter the market.” BAKERSFIELD REALTOR® MAGAZINE

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

P R O M O T E

Y O U R

R E A L T O R

B R A N D

TOP 5 REASONS WHY YOU SHOULD PROMOTE YOUR REALTOR® BRAND

REALTORS® ARE CHAMPIONS OF HOME!

91%

of California home buyers used a REALTOR® in 2013. The graph (at right) shows the areas where REALTORS® helped buyers the most. Use the REALTOR® brand to your advantage, use it to help promote you and your real estate business! Go to bakersfieldrealtor.org to download the REALTOR ® logos for your use.

1 Price Negotiation

2 3 Negotiating Terms of SALE

Determining Comparable Homes for SALE

4 5 Determining Affordability

Finding the Right Home

SOURCE: CALIFORNIA ASSOCIATION OF REALTORS 2013 HOME BUYER SURVEY

BAKERSFIELD REALTOR® MAGAZINE