REALTOR Magazine April May 2017

M A G A Z I N E A P R I L / M AY 2 017

INSIDE

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BAKERSFIELD REALTOR® MAGAZINE

CONTENTS

Bakersfield REALTOR® Magazine

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Letter from the President The Art of Selling. 13 Principles to guide you.

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Property Assessed Clean Energy 10 good ways to finance energy efficient home improvements and twelve reasons not to pick up the PACE programs.

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Bringing Home the Cure Auction, Wine and Craft Beer Event A passionate group of REALTORS® and their Affiliate partners, who pledge themselves to join in the fight to help save lives in the fight against cancer.

19 Members Storm Capitol for Legislative Day C.A.R.’s Legislative Day gives California REALTORS® the opportunity to meet and discuss real estate issues directly with their state legislators and staff.

ON THE COVER Bringing Home the Cure Auction, Wine and Craft Beer Tasting Fundraiser for American Cancer Society & Campout Against Cancer.

Ethical Issues when Dealing with Prospective Buyers Joe Newton, Ombudsman, speaks about this frequent question asked by REALTORS®: does a REALTOR® have an obligation to ask a prospective buyer as to whether that buyer is working with or represented by another real estate agent?

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YPN Partners with Habitat for Humanity, Bakersfield YPN joins forces with Habitat for Humanity of Bakersfield in August to work on an innovative residential real estate project.

Members Collaborate with Boys & Girls Club of Kern County Diversity and Equal Opportunity committees participate in PG&E’s Boys & Girls Summer School Program as well as a mural project.

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

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LETTER FROM THE PRESIDENT

The art ofSelling 13 Principles to guide you

I

ask you: What is a good a REALTOR®?

What makes a REALTOR® good? What are top qualities of REALTORS®? If you were searching for a REALTOR®, would you pick YOURSELF? When I first started in real estate, my dad, who was my broker, had this book – he used it religiously in training agents. The book is called, How I Raised Myself from Failure to Success in Selling. The book is so old now that the spine is gone – but I believe the author is Frank Bettger and it was written in the 1940s. I used to cringe every time he brought it out. I’m not sure if it was because it was such an old book, or that I felt a lecture coming on. However, my dad was not wrong about the valuable information the book held because the principles of selling are as true today as they were then. Here are 13 basic principles that each of us should remember: 1) Enthusiasm – The principle here is to act enthusiastic and you will be enthusiastic.

Enthusiasm is addictive! It brings excitement! If you love being a REALTOR® – be enthusiastic about it – let yourself shine.

2) Be organized – Take more time to think and do things in order of importance. The whole secret of freedom from anxiety over not having enough time lies not in working more hours, but in the proper planning of hours.

3) Think in terms of others’ interests – as

REALTORS®, we need to find out what our clients are looking for, and then help them find it. Always put your clients first!

4) Ask Questions – Cultivate the art of asking questions. Inquire rather than attack. Questions, rather than positive statements, can be the most effective means of winning people over to your way of thinking.

5) Find the Key Issue – To find hidden objections, remember to ask why and ask, ‘In addition to that?’. Most people, when asked why, will give you a surface answer; but when you ask ‘in addition to that?’, you are gently probing a little deeper to find out what that real key issue is for their objection.

6) Listen (Silence) – Be a good listener. Show the other person you are sincerely interested in what they are saying; give them all the eager attention and appreciation for which everyone craves and hungers. It is one of the most important principles of the formula for success in selling. Don’t talk too much!

7) Sincerity: Deserve confidence – To have confidence in yourself, and win and hold that confidence is essential. The real test is: Do you believe it? And not, will the other person believe it?

8) Know your business… and keep on knowing your business. The real estate industry is

constantly changing. It is important that we continue to stay educated, and there are many

educational offerings through the Bakersfield Association of REALTORS®, C.A.R. and NAR that can help keep you up-to-date on changes in the industry.

9) Appreciation and praise – Everyone needs to feel appreciated. People like you to show that you believe in them, and expect bigger things of them. If your interest is sincere, I don’t know of anything more they’d appreciate. We are all hungry for honest praise and appreciation!

10) Smile: happiness – If you want to be welcomed everywhere, give every living soul you meet a smile, an honest-to-goodness smile, from deep down inside.

11) Remember names and faces – Here are 3 tips for remembering names and faces: a) Impression: Get a clear impression of their name and face b) Repetition: Repeat their name at short intervals c) Association: Associate their name with an action picture, if possible, including his or her business.

12) Service and prospecting – Good agents return calls and emails at lightning speed. If possible, get in front of your contact. If you are conducting prospecting by phone, be a good listener and try and find the key issue. Never forget the customer, and never let a customer forget you!

13) Closing the sale – And, if you do it all right: Success! The commission check!

LETTER FROM THE CEO

Passion for Service

Y

ou be the judge! If you were to ask 100 people to define their expectation of excellent customer service, you very well may receive 100 different definitions. The truth is… it’s personal! Each of us have been afforded a lifetime of experiences upon which our expectations have been developed. So, what is your expectation of excellent service?

Last year my husband and I had the privilege of enjoying a breathtakingly beautiful and very relaxing river cruise through Germany, which accommodated about 135 people, with service that was impeccable! It was the crews’ sole purpose to utilize all their skills and resources available, to personalize our experience to make it the most welcoming and memorable event possible. Every crew member took great pride in their part of the experience, which was amazing.

In reflecting on the experience they provided, there were three important elements that

demonstrated their commitment to providing excellent service.

intentional about getting feedback from their

1). They cared greatly for the people they served. That service not only extended to their guests on board, but also to their coworkers. Each and every crew member took responsibility for doing their part so as not to place a burden on their fellow crew members.

more exceptional level of service. It is said that

2). They were passionate about the service they provided. They cared a great deal about the quality of service they provided, always striving to give their very best. They were genuinely enthusiastic about the service they provided because they knew it meant a so much to the people they served. They were intentional about seeing to every detail. No detail was overlooked and no task too demanding not to make the extra effort to get it completed.

3). They listened and learned. They were

2017 OFFICERS

guests to determine how they could provide a people don’t care how much you know until they know how much you care. They cared enough to communicate with their customers, asking them for their input and then taking positive action to make a difference.

SERVE – IT’S WHAT REALTORS® DO! Whether you are helping co-workers, customers or in a community focused effort… show you care… do your part. Be passionate about the quality of service you provide. Enthusiastically give your very best. And last, but not least, listen and learn. Feedback, whether it is complimentary or critical in nature, is essential to ensure you are meeting the ongoing needs and expectations of those you serve, Be intentional… Make a difference!

2017 DIRECTORS

President, Midge Jimerson Boydstun Realty Co., Inc.

Secretary/Treasurer Ronda Newport Miramar International — Mill Rock

Anna Albiar Coldwell Banker Preferred, Coffee

Wayland Louie RE/MAX Golden Empire

President-Elect, Derek Sprague Sprague Real Estate Group

Immediate Past President Bill Redmond Watson Realty ERA

William Chicas Watson Realty ERA

Kevin Palla Broker

Scott Knoeb Frontier Real Estate Services, Inc.

Darlene Tobias Century 21 Tobias BAKERSFIELD REALTOR Real Estate

Vice President, Athena Collup Miramar International — Mill Rock

Chief Executive Officer, Linda Jay

Brian Tuttle Coldwell Banker Preferred – Coffee

®

Ashley Weaver Karpe Real Estate Center MAGAZINE

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REALTORS® WHO MAKE THEIR VOTE COUNT… JOIN THE RGR COMMITTEE NOW!

I

have recently had the pleasure of working with Wayland Louie in his role as the new Chair of our Local Candidate Recommendation Committee. I have been greatly impressed with Wayland’s commitment and dedication to service, not only to the Bakersfield Association of REALTORS®, but also the community. We are so fortunate to have caring, dependable and committed volunteers.

Wayland grew up in the San Francisco Bay Area City of Fremont. Wayland obtained his real estate salesperson license in 1980, and then went on to graduate from UC Davis, with a degree in “You make a living economics. He by what you get, but was introduced you make a life by to the real what you give.” estate industry ~ Winston Churchill by his father, who opened his own office. Before going to work in real estate full-time, he worked at Lockheed Martin. Wayland obtained his Broker’s license in 2004.

Wayland’s community service started in part because of his amateur (ham) radio hobby. As an FCC-licensed radio operator, he participated in many public safety and public service events. He was a member of the American Red Cross, as a communicator in a Disaster Action Team.

He has been a communications volunteer with multiple police departments. He was a member of the California Office of Emergency Services and trained in communications exercises with the FEMA Urban Search & Rescue Task Force.

After moving to Bakersfield in 2004, with his wife Theresa and his son, Wayland began participating locally by serving monthly lunches to senior citizens at the Salvation Army and activities at the Boys

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BAKERSFIELD REALTOR MAGAZINE ®

Kim Schaefer GOVERNMENT AFFAIRS DIRECTOR

and Girls Club. He has volunteered in the classroom at his son’s schools. He is a passionate supporter of the Children’s Miracle Network, Relay for Life, and Wounded Heroes Fund. If that’s not enough, he is also a regular platelet donor and is registered as an organ donor and bone marrow donor.

Wayland is very active in our local Association. He currently serves as the Chair of LCRC, a member of the Diversity Committee and as a Director for the Association Board of Directors. He is a consistent contributor to the REALTOR® Action Fund. Wayland has been involved in various capacities in committees at the

Wayland Louie

Association level too numerous to list. Some of the committees on which he has served include Budget/LRP Committee, Commercial Investment, Diversity, Equal Opportunity, Grievance, Strategic Planning and Finance, Attendance and Reception, and LGR. I am impressed by his innovative and thoughtful ideas. Wayland is always asking questions and has a unique understanding of the way politics and legislation impact his business. Wayland has much to offer the Association and its membership.

HERE ARE A FEW WAYS YOU CAN DO YOUR PART: ADVOCATE QUICKLY by completing Calls for Action.

VOTE. One of the easiest ways to positively impact your community is to simply participate by exercising your right to vote.

Advocate quickly by completing Calls for Action from C.A.R. and NAR. ACT. Volunteer on a campaign for a candidate that is a REALTOR® champion.

One hour of your time could make a big difference in a close election.

INVEST. Contribute to the REALTOR® Action Fund.

WRITE A LETTER to local elected officials encouraging them for making good decisions for the community, or take the time to submit a letter to the editor of the local newspaper.

RUN FOR OFFICE. Seriously! We need more REALTOR® champions in elected positions.

By doing our part to contribute to the community, we add people to our circle of influence and gain opportunities to build relationships and success. We also demonstrate what it means to be a good citizen to the next generation by leading by example.

Property Assessed Clean Energy

Financing KIM SCHAEFER Government Affairs Director

T

here are at least ten good ways to finance energy­efficient home improvements and twelve reasons not to pick up the PACE. Property Assessed Clean Energy (PACE) programs are one way to finance energyefficient home improvements. Unlike other available energy improvement programs, PACE financing attaches to the property in the form of a tax. Although loans of this type sound attractive, PACE programs create serious problems.

Twelve Problems with PACE 1. Predatory Lending: Qualification is based on home equity rather than on the borrower’s ability to repay, which violates the U.S. Department of the Treasury’s prohibition against predatory lending practices.

2. Structured as a Property Tax Assessment: Because the amount borrowed is structured as a property tax assessment, it attaches to the property itself rather than to the owner, which negatively affects the owner’s ability either to sell the property or to refinance it and restricts a potential buyer’s ability to qualify for a mortgage on the property.

3. “Super-Priority” Lien: The amount borrowed is structured as a “super-priority” lien on the property, which means that, in the event of default, the PACE loan takes repayment priority over even the first mortgage. This arrangement violates the conditions spelled out in most mortgage agreements, negatively affects the owner’s

ability either to sell the property or to refinance it, and restricts a buyer’s ability to qualify for a new mortgage on the property.

4. No Proof of Benefit or Value: Because the energy­efficient home improvements financed with PACE programs are often sold without either a home energy audit or a third-party certification of their operational effectiveness, the home owner has no basis for performing a cost-benefit analysis or for assessing the true value of the improvements.

5. No Utility Cost Offset: The home owner is told that he or she will save enough on utility bills to cover the cost of the energyefficient upgrades, but this utility cost offset seldom materializes. More often, the hapless home owner ends up deep in the red.

6. Price Inflation: PACE contractors inflate their prices for energy-efficient renovations, often charging far more than fair market value.

7. No Financial Oversight: Most of the contractors pitching PACE financing options have no financial expertise, and their offers and promises are not currently being scrutinized by any financial institution or government agency.

8. High Interest Rates: The interest charged for PACE financing can be as much as twice the amount charged for a home equity loan or on loans obtained via other financing alternatives.

9. Inadequate Disclosure: Often the total cost (with applicable fees and interest), the yearly payment amount, the actual payoff schedule, and the anticipated payoff date are not properly disclosed up front.

10. Large Payoff Penalties: The penalties for early payoff are large and may include extended interest payments.

11. Harsh Late-Payment Penalties: Late payment or failure to pay is penalized in the same way as failure to pay property taxes and could result in foreclosure.

12. Automatic Default: A home owner whose mortgage agreement specifically prohibits any other loan or lien from taking priority over the first mortgage-and most do-will be automatically in default. Thus, the lending institution holding the first mortgage can require accelerated payment or initiate foreclosure.

Ten Other Ways to Finance EnergyEfficient Home Improvements.

Many programs are available to help finance energy-efficient home improvements. Ten of these programs are described below.

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

2. Federal Housing Administration PowerSaver Loans: This loan program offers Continued on page 18 BAKERSFIELD REALTOR® MAGAZINE

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THE REALTOR® PARTY get involved THE REALTOR® PARTY

T

he REALTOR® Party is a powerful alliance of REALTORS® and REALTOR® Associations working to protect and promote homeownership and property investment.

The REALTOR® Party speaks with one voice to advance candidates and public policies that build strong communities and promote a vibrant business environment.

Now more than ever, it is critical for REALTORS® across America to come together and speak with one voice about the stability a sound and dynamic real estate market brings to our communities. From city hall to the state house to the U.S. Capitol, our elected officials are making decisions that have a huge impact on the bottom line of REALTORS® and their customers. Through the support of REALTORS® like you, the REALTOR® Party represents your interests.

You can find valuable resources to the REALTOR® party at www.nar.realtor/ political-advocacy/get-involved

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BAKERSFIELD REALTOR® MAGAZINE

REALTOR® Action Center Mobile App!

Stay up-to-date on political issues, get the REALTOR® Action Center Mobile App! Where will you be when you get the Call for Action? You can be anywhere because the new REALTOR® Action Center mobile app contains a host of features to help you VOTE, ACT and INVEST on the go: n Mobile Advocacy: Receive a notification alerting you whenever there is a new Call for Action. The new mobile alert format will make participation a snap. No forms to fill

out. Short, fast and easy! n Mobile Investing: Make your annual investment via your phone. Now there is no excuse to not invest in RPAC! n Action Profiles: The app contains a summary of your REALTOR® Party engagement. A list of open action items, actions you have already taken. n Advocacy Reports: Track how your state and local associations are doing in terms of their advocacy efforts to help us reach our annual 15% goal. ® n REALTOR Party Tracker: Learn how your state and local association are using NAR programs to build political strength in your own backyard. Find out what tools and programs NAR is providing your association and how much money those programs cost.

The REALTOR® Action Center mobile app is currently available only for the iPhone and Android platforms. Search for “NAR Action Center” on the iTunes Store or Android Market and download the app today.

If you’d like to get more involved locally, join our RGR committee today!

LOREMIPSUM

Members will storm State Capitol for LEGISLATIVE DAY Connect with 2,500 of your fellow REALTORS® in Sacramento for the California Association of REALTORS® (C.A.R.) 45th Annual Legislative Day! For the past 45 years, Legislative Day has remained C.A.R.’s pinnacle legislative event.

Legislative Day gives California REALTORS® the opportunity to meet and discuss real estate issues directly with their state legislators and staff. Attending Legislative Day is not only a great investment in your business, it also provides you with an opportunity to hear from California’s most dynamic political leaders and the leadership of your state Association. After a rewarding day of business, join your fellow REALTORS® at the fabulous Capitol Reception!

In fact, your day will start at the Morning Briefing where you will hear from dynamic speakers, C.A.R.’s leadership and possibly a few of California’s legislative movers and shakers. Once again, Governor Brown has

been invited. Next, you will break off to network with your Association, and have lunch before you converge on the Capitol to meet your legislator and educate them on how current legislation is impacting our industry. End your day at the spectacular Capitol Reception where you can mix-&mingle with your fellow REALTORS® and legislators.

So, be sure to save the date for Legislative Day 2017, a day filled with networking, meetings with your state legislators, lively, industry-related hot topic discussions, and much, much more!

best destinations to live and work.

Legislative Day Webinars:

Legislative Day 101 webinars will be held on Tuesday, April 25th, and Thursday, April 27th (times TBD). For more information, go to goo.gl/nEqcB2.

C.A.R. is looking forward to an entertaining and enlightening Legislative Day! C.A.R. Government Affairs team has provided tips to a successful “Meeting with Your Legislator”. To watch the quick video, go to: goo.gl/JmMjpN SOURCE: www.car.org

Wednesday, May 3, 2017 in Sacramento!

REALTORS® are responsible for building California’s diverse communities. While our nation struggles to stay united, California’s REALTORS® come together to continue to make the Golden State one of the nation’s

BAKERSFIELD REALTOR® MAGAZINE

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UPDATE

LOREMIPSUM

DON’T FORGET the Federal Trade COMMISSION contribution by

SUE JOHNSON

STRATEGIC ALLIANCE CONSULTANT | REAL TRENDS

The new president will appoint two commissioners and a chairperson, and this could impact your business.

When it comes to enforcement of federal consumer protection laws, most people think of the Consumer Financial Protection Bureau (CFPB). But there’s another agency that should not be overlooked when watching President Trump’s appointments in the coming months. That is the Federal Trade Commission (FTC).

About the FTC The Federal Trade Commission (FTC or Commission) is a bipartisan, independent agency with a dual mission—to protect consumers by stopping unfair and deceptive acts or practices in or affecting commerce (UDAP), and to promote competition

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BAKERSFIELD REALTOR® MAGAZINE

by challenging anticompetitive business practices.

The FTC is headed by five commissioners, nominated by the President and confirmed by the Senate. The President chooses one commissioner to act as chairperson and no more than three Commissioners can be of the same political party. It currently has two open seats, so President Trump will fill two seats and appoint a new chairperson, giving the Commission a 3-2 Republican majority for the first time in nearly a decade.

Why is it important not to forget the FTC? Here are a few examples of areas in which it has jurisdictional authority over non-bank entities in the real estate and financial marketplace.

Real Estate Competition The FTC has long opposed efforts by Multiple Listing Services (MLS) and real estate associations to restrict the ability of non-traditional real estate brokers (e.g.,

fee-for-service brokers, discount full-service brokers, and internet referral networks) to compete.

In a 2007 joint study by the U.S. Department of Justice, entitled “Competition in the Real Estate Industry,” the FTC said that attempts by real estate brokers to restrict non-traditional business models “hinder competition in the industry.” It recommended that the FTC and DOJ “continue to monitor the cooperative conduct of private associations of real estate brokers, and bring enforcement actions in appropriate circumstances” if the conduct is anticompetitive and violates antitrust laws.”

The FTC has brought enforcement actions over the years to stop rules that restrict nontraditional listing agreements from being displayed on public real estate websites. Most resulted in consent orders in which the MLS or association agreed not to adopt or enforce such rules for 10 years. Each violation of

the consent orders carried a civil penalty of $11,000. The Commission also opposed proposed state laws requiring that real estate professionals entering into exclusive service provision agreements with their clients provide state-mandated minimum service packages.

Unfair and Deceptive Acts or Practices (UDAP) Section 5 of the Federal Trade Commission (FTC) Act gives the Commission UDAP authority over most non-bank entities (including real estate brokers) that are not subject to the CFPB’s UDAAP (unfair, deceptive and abusive acts and practices) jurisdiction. It also has concurrent jurisdiction with the CFPB over federal consumer protection statutes (such as the Truth in Lending Act) that specify that violations of certain practices are to be treated as if they were “unfair or deceptive” acts or practices under Section 5.

Some financial services attorneys speculate whether or not the FTC will step up its enforcement of UDAP and specific federal

consumer protection laws against non-bank entities if the CFPB Director is made removable without cause as a result of the PHH Corp vs. CFPB case or Congressional action.

Data Security Since Dodd-Frank did not transfer to the CFPB authority to enforce the data security requirements of the Gramm-Leach-Bliley Act and the Fair Credit Reporting Act, the FTC retained the authority to enforce these requirements. It also has the authority to pursue data security violations under the UDAP clause of the FTC Act. During the Obama administration, it aggressively pursued enforcement actions related to data privacy and security.

The Do-Not-Call Registry The FTC enforces the Do-Not-Call Registry, which gives consumers the ability to place their telephone number on the registry and prohibits telemarketers from calling anyone whose name is on the registry unless they meet certain criteria.

Photo: www.thelegalintelligencer.com

It has been aggressive in assuring that companies abide by the Do-Not-Call Registry rules. According to its website, it brought 105 enforcement actions and recovered over $41 million in civil penalties and $33 million in redress or disgorgement.

The Future of the FTC under President Trump While we do not yet know the Trump administration’s priorities for the FTC, he appointed Dr. Joshua D. Wright, a Republican FTC Commissioner from 2013-2015, to lead FTC transition efforts.

Wright was considered by The Wall Street Journal to be the most conservative FTC Commissioner during his tenure.

Nevertheless, the shaping of the FTC in the Trump Administration bears watching.

As one Washington, D.C. financial services attorney says, “Once the FTC finds you, you can never get rid of them.”

This article reprinted with the permission of RealTrends Inc. Copyright 2017

BAKERSFIELD REALTOR® MAGAZINE

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TEAM BRINGING HOME THE CURE

WINE & BEER TASTING & AUCTION

A BIG THANK YOU TO OUR SPONSORS: Wells Fargo Home Mortgage, Consolidated Asset Management Services, imortgage®, Cornerstone Mortgage, Academy Mortgage Corporation, Cones Health Food, Coldwell Banker Preferred, Agape Mortgage & Platinum Home Mortgage To see more photos of the event, go to our Facebook page at www.facebook.com/bakersfieldrealtor

Bringing Home The Cure – W

Passionate…Hope Filled … and Fighting Back!

hat fuels our passion?? It’s personal!

Cancer is very personal to almost everyone you meet. Perhaps you, someone in your family or your circle of influence has had their life affected by this cruel disease. The good news is, we’re getting closer to finding a cure… every individual, every dollar raised makes a difference, every day.

Five years ago, the Bakersfield Association of REALTORS® assembled a passionate group of REALTORS® and their Affiliate partners, who pledged themselves to join in the fight to help save lives of those battling this life-stealing monster. That passionate group became our Team “Bringing Home the Cure”.

Their mission is bold and determined: to raise funds to help find a cure to defeat cancer… once and for all! Our signature fund-raising event in support of this effort is a premier, multi-faceted Wine and Beer Tasting and Auction Event. Our beneficiaries: The American Cancer Society Relay for Life and the Kern County Cancer Fund.

Both organizations serve a vital part in helping cancer patients in Kern County and all those who remain hope-filled that cancer will one day be crushed.

has been funded and new medications developed… extending and saving lives.”

– Julia Otis Smith We want to express our heartfelt gratitude to our many sponsors, donors and volunteers whose outpouring of generosity and tireless efforts have helped make our event such a fantastic success.

Why do we fight? So we can celebrate those special people in our life who continue to fight and win… another day… another week… another month… another year. Special people like our precious friend, Julia Otis Smith! We love you Julia… we’re fighting for you!

‘Thanks to generous people like you and so many others… people who care… new research

*Cancer can turn your life upside down, it can take your hair, your health, your time, your energy, and parts of your physical body, but here are some things cancer CANNOT do…

F Break my spirit F Dissolve my faith F Rob me of my love F Lessen friendships F Take my dignity F Steal my identify or define who I am F Stop my life from moving on F Destroy my hope F Squelch my desire to help others F Take away my sense of humor F Take my memories F Take away relationship with family and friends F Seep into my entire life *WhatNext.com is an online support network developed in partnership with the American Cancer Society that helps cancer patients, survivors, and caregivers gain firsthand insight into living with cancer and connect with others facing a similar diagnosis.

Thank you to our 2017 Team “Bringing Home the Cure”

Front row (l-r): Jenny McLean, Michele Cooper, Ronda Newport, Debi Roberson, Anna Albiar, Janette Ramsey, Kaitlyn Rudaick. Standing (l-r): Connie Wydell Kris Mika, Sheryl Gallion, Marcella Ives, Mike Grigg, Jessica Szezech, Tish Debenham, Patti Bruebaker, Virginia Jeffrie, Stacy Estes, Suzie Beaty, Barbara Bogner, Deana Witwer, Kym Plivelich, Shelly Meadows, Jennifer Woods, Shari George, Derek Sprague and Linda Jay. Not pictured: Peggy Barnett, Judy Camp, Athena Collup, Carrie Cullifer, Nickolas Feli, Callee Garner, Midge Jimerson, Tammi Marchand, April Martinez, Jill Mushaney, Chereyl Nunn, Theresa Olson, Debbie Pena, Evie Pena, Jeannine Phillips, Bill Redmond, Kamri Roberson, Paul Robles, Linda Sheldon, Michelle Valverde, Barbara Wells, and Tulin Melton

SUCCESS leaves clues

-trend benders

LARRY KENDALL

Real Trends | Author of Ninja Selling & Chairman of The Group, Inc.

Want to increase the productivity of your office or company? Find, install and spread trend benders in your organization.

Have you ever seen one of your sales associates double or triple their income in one year? How did he or she do it? Success leaves clues. Look closely, and you may discover a trend bender.

What is a trend bender? You observe a sales associate cruising along, incrementally improving each year, and suddenly there is a spike where his or her production increases at an exponential rate. What happened? Was it luck or a trend bender?

Warning: Shiny objects posing as trend benders are often sold by speakers, internet promotors and at REALTOR® Expos. To find out if there is a true trend bender at work, you want to do four things: 1. Document the associate’s process in detail.

2. Repeat it to see if the associate will get predictable results. (This ensures it wasn’t luck or a one-time occurrence.)

3. Repeat it with another associate to see if it works regardless of personality.

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BAKERSFIELD REALTOR® MAGAZINE

4. If it works for others, spread the word in your company. You have discovered a trend bender!

Discovering and spreading trend benders in your organization is a primary responsibility of a good manager and coach.

We have documented dozens of trend benders over the years and teach them in our Ninja Selling classes. One example of a trend bender is a good database or CRM (Customer Relationship Management) system. Helping your associates put together a good CRM will turn the dial on their productivity.

The Science Behind Trend Benders A survey of 20,000 REALTORS® found that fewer than 40 percent had a database— even scraps of paper and business cards in a shoebox counted. Some 60 percent had nothing! Those with at least a semblance of a database earned 251 percent more than those who didn’t have a database. Helping your sales associates set up on a user-friendly database is a trend bender.

Case Study Steve and Jessica Bohner own Premier

Realty Group in Stuart, Fla. Their entire office went through our four-day Ninja Installation training. After the training, one sales associate, Candace Harman, came to them with a box full of papers, cards and sticky notes and asked, “Can you help me put these into a database? I love my clients, but I’m frustrated that I can’t stay in touch with them.” Candace is a 35-year pro and a consistent $4- to $5-million producer. Jessica helped Candace put together an electronic database to start 2016. Here are her results: n 2015 production (pre-database): $3.9 million n 2016 production (post-database): $17.4 million Now that’s a trend bender! Candace can now stay in touch and deliver the kind of “wow” service of which she has always dreamed. The results of installing this trend bender were career- and life-changing for her!

Want to increase the productivity of your office or company dramatically? Start by finding, installing, and spreading trend benders in your organization.

This article reprinted with the permission of RealTrends Inc. Copyright 2017

ORGAN DONOR

SIGN UP MOTHER’S LIFE inspired by SON’S LEGACY LORI MALKIN

A

CHAIRPERSON, JJ’S LEGACY

s a donor mother, I was inspired by the amazing legacy my son, Jeffrey ‘JJ’ Johns, left after his passing. It became my passion to inspire and educate my community about the importance of organ and tissue donation. I started JJ’s Legacy in 2009 to honor Jeffrey, and it has grown to be so much more than I ever imagined! Today, JJ’s Legacy is educating and inspiring our community to become registered organ and tissue donors, and honor donor families and recipients in Kern County.

Jeffrey saved five lives through organ donation and enhanced 50 lives through tissue and cornea donation. His heart saved a 64-year-old married man named Carl. My family had the honor of meeting Carl. He asked us if we would like to listen to Jeffrey’s heart. Knowing that my son’s heart was in the same room with us and that I could listen to my son’s heartbeat was the most heartfelt feeling, followed by waves of emotions. Since his transplant, Carl has been able to return to work as an actor.

Jackie was a young, 14-year-old girl when she started dialysis in 2004. After receiving her gift of life, a kidney transplant, she is

dialysis free and lives a healthy life. We had the honor of meeting her, and she was immensely grateful for her new kidney.

Her transplant let her continue her high school education.

Jeffrey was also able to give two people the gift of sight from his corneal tissue; Jeffrey’s left kidney, liver, right and left lungs gave others the gift of life!

Jeffrey had an infectious love for life, and JJ’s Legacy is one way that continues spreading that love. He is loved by family and friends; we remember him every single day. The loss of Jeffrey has been a rollercoaster of emotions, confusion and painful grief, but the family and friends who have become part of JJ’s Legacy give me the strength and courage to move forward.

I often hear Jeffrey’s voice telling me, “Mom, if you are going to do something, do it the very best you can!” And that is why JJ’s Legacy exists, to honor the legacy of Jeffrey ‘JJ’ Johns by inspiring our community to give the gift of life. Will you join me?

Go to www.donatelifecalifornia.org/ jjslegacy Sincerely, Lori Malkin Lori Malkin is the Mother of Jeffrey Johns, An Organ and Tissue Donor. JJ’s Legacy is a 501(C)(3) Non-Profit Organization.

JJ’S LEGACY: GOT THE DOT?

WATCH LOCAL VIDEO

A New Life

Created by Azriella Del Rosario and Elmae Frederick Go to: www.goo.gl/LRSojz Blue and green are the official Donate Life colors and every year during National Donate Life Month in April, donation and transplantation organizations across the country promote the colors and raise awareness on National Donate Life Blue & Green Day. This year’s Blue & Green Day celebration is Friday, April 21, 2017.

Join all Donate Life organizations, partners and volunteers, DMV offices, hospitals and individuals across the country in showing your Donate Life spirit by wearing blue and green, eating blue and green foods, taking photos with blue and green day props – and more! You can spread the word on social media by sharing your Blue & Green Day photos on your social media sites.

BAKERSFIELD REALTOR® MAGAZINE

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BAKERSFIELD REALTOR® MAGAZINE

Passion and Commitment of NON-PROFITS contribution by

BOB HARRIS

P

CAE, NON-PROFIT GOVERNANCE CONSULTANT

art of the greatness of America can be attributed to non-profit organizations and their volunteer leaders. According to the IRS, there are more than 1.5 million organizations advancing diverse causes to benefit the public.

In Bakersfield, there are more than 1,600 organizations, per the website Guidestar. org. In February, the Bakersfield Association of REALTORS® and the Greater Bakersfield Chamber of Commerce hosted a seminar to help these organizations build better boards.

These non-profits, including the Association of REALTORS®, Bob Harris, CAE make our community better; we hosted this seminar to demonstrate the commitment of REALTORS® to the communities in which we work.

Community Benefit

In 1831, Frenchman Alexis de Tocqueville wrote the book Democracy in America, describing how non-profits benefit society.

He explained that people in the US readily form organizations to channel resources into not-for-profit, non-governmental organizations. Their aim is to serve public good and improve life.

“I know of no country in which there is so little independence of mind and real freedom of discussion as in America,” he wrote.

Mission Driven

Every non-profit begins with the germ of an idea. It develops into a mission statement.

Volunteers step forward to lead the cause.

Before you know it, the public is relying on the organizations to serve the needs. It

has been said that non-profits do what some people think “just happens.” In nearly every case, thousands of people have benefited from the passion and commitment of these organizations.

All non-profits have two things in common – mission and volunteers. They have adopted a statement of purpose or mission that is meant to have public benefit. They rely on a volunteer workforce, known as a Board of Directors.

must adhere to good governance practices to advance the mission.

Mission Focused

The organization is expected to have public benefit expressed through a statement of purpose submitted to the IRS annually.

The mission should frame nearly every conversation and decision at the board table.

Strategy

The US is unique in the rights it affords nonprofits. A combination of public policies is the platform for vibrant non-profits.

It is important to be strategic. The leadership is expected to be visionary and to implement strategy to achieve the results. The opposite is a board which focuses on administration and tactics. A strategic plan serves as a road map for the organization for at least a 3-year period.

Freedoms

Resources

Privileges

The US Constitution provides for the rights of freedom of assembly and speech, and the right to petition government. Nearly every organization advocates for their cause. They do not worry that authorities monitor their discussions or restrict their meetings.

Volunteer Immunity

Federal and state governments afford volunteer leaders with immunity, should their actions cause harm. When the board works within the governing documents, they are provided certain protections from risk.

Exemption

The federal government does not collect income tax from exempt organizations. Thus, all revenues are used to advance the mission.

The exception is UBIT or unrelated business income tax for income streams outside of the mission statement.

Other government provisions state that volunteers may not gain personally, and must disclose conflicts of interest; and, the discussions of price or anything negatively affecting free competition is rigorously banned.

Responsibilities

With rights come responsibilities. The organizations rely on volunteers. The leaders

Volunteers cannot govern effectively without an understanding of the organization’s assets, which they must use wisely and protect. Focus on the big picture by tallying the amount in the annual budget with the amount in savings and other assets.

Values

Principles are integral to board excellence.

The values are guiding principles adopted by the organization. Some of the most respected board values include transparency, accountability and integrity.

Partnership Good governance includes respect for the varied roles in an organization. The best model is to let the “board govern and the staff manage.” It is said that the board sets the direction to achieve the mission, and the committees and staff undertake the most effective, efficient methods to reach that destination.

The non-profits in Kern County improve quality of life and enhance the community.

The volunteer leaders and the professional staff should be recognized for their contributions to society.

BOB HARRIS, CAE, provides nonprofit governance tips and templates at www.nonprofitcenter.com.

BAKERSFIELD REALTOR® MAGAZINE

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Continued from page7 three financing options for home owners to make energy-efficient and renewable energy upgrades to their homes.

3. PowerSaver Home Energy Upgrade (Up to$7,500): This program can be used by home owners with manageable debt and a credit score of 660 or higher for smaller projects, such as insulation, air and duct sealing, water heating, and upgrading or replacing heating and cooling equipment.

Loans of this kind do not require a home appraisal or lien on the property and are insured by FHA. 4. PowerSaver Second Mortgage (Up to $25,000): This program is for larger retrofit projects, including energy efficiency, solar photovoltaic, solar hot water, geothermal, or other renewable energy projects. A home appraisal and sufficient equity are generally required, and borrowers will likely not qualify if they already have a second lien or second mortgage on the property.

5. PowerSaver Energy Rehab (203(k) First Mortgage up to FHA Loan Limits):

This program is for the purchase or refinance of a home. At least $3,500 of the home improvements must consist of eligible PowerSaver measures. FHA insures the mortgage with the improvement project.

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

This program also offers $3,500 for certain types of weatherization and water-saving improvements.

NOTE: Fannie Mae allows those with a PACE loan to finance with this program.

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

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

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

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

10. The California Housing Partnership Corporation Ratepayer Integrated OnBill Payment Program (RIO PP) is tailored to low-income multifamily rental properties and allows retrofit costs to be included in a tenant’s energy bill.

Disclaimer: The content in this Government Affairs section is intended as a general advisory and is not intended as a substitute for individual legal advice. Advice in specific situations may differ depending upon a wide variety of factors; therefore, readers with specific legal questions should seek the advice of an attorney.

Campout Against Cancer Team Bringing Home the Cure is a proud supporter of Campout Against Cancer. This is a 24-hour celebration that took place March 31-April 1st. This event honors survivors, remembers loved ones who have lost the battle, and raises money to improve the quality of life for cancer patients and their families.

Campout Against Cancer raises support for Kern County patients and 100% of the net proceeds stay local. Generous contributions and fundraising efforts assists with medical costs associated with cancer care, such as prescriptions, insurance premiums, cobra, deductibles, co-pays and co-insurance. To find out more about how local patients can benefit from the funds raised at Campout please visit www. campoutagainstcancer. dojiggy.com In 2016 the Campout Against Cancer raised close to $400,000. This year their goal is to raise $500,000 which translates in assisting 100 local patients with an average of $5,000 per person. Currently over 320 local patients have depended on their support to pay for life saving treatment.

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BAKERSFIELD REALTOR® MAGAZINE

ETHICAL ISSUES

when dealing with prospective buyers contribution by

JOE NEWTON OMBUDSMAN

A frequent question asked by agents is: Does a REALTOR® have an obligation to ask a prospective buyer as to whether that buyer is working with or represented by another real estate agent?

There is no legal requirement which calls for real estate agents to affirmatively ask this question.

Further, the REALTOR® Code of Ethics does not specifically require REALTORS® to ask this question unless the REALTOR® is contemplating entering a representation agreement or other exclusive relationship with the buyer (such as an exclusive buyer-broker agreement). In this case, the REALTOR® has an obligation to make reasonable efforts to be sure the buyer is not subject to a current, valid exclusive agreement to provide the same service. This requirement is based on the NAR Code of Ethics’ Standard of Practice 16-9 which states: “REALTORS® prior to entering into a representation agreement, have an affirmative obligation to make reasonable efforts to determine whether the prospect is subject to a current, valid exclusive agreement to provide the same type of real estate service.”

OMBUDSMAN REPORT JANUARY - FEBRUARY 2017 n

162 calls were received by our Ombudsman

29 calls were grievance/ethics complaints against agents that were resolved n

In any event, where there is not a legal or ethical duty to ask this question, it is always a good idea to ask it anyway. Knowing this information as early as possible assists the REALTOR® in determining the proper way to deal with the prospective buyer, and can help avoid a procuring cause dispute or a claim of unethical activity.

A variation of this situation occurs when a REALTOR® is conducting an open house when a prospective buyer, who the REALTOR® knows is working with or being represented by another real estate agent, wants to write an offer on the property through the host REALTOR®.

There is not a specific legal obligation which exists in this situation, and there are several options available to the REALTOR®.

For example, if the buyer does not have an exclusive agency or contractual relationship with the other agent, the REALTOR® may assist the buyer and even be a dual agent for this transaction. Now, the first agent may pursue a procuring cause claim against the host REALTOR® with determination made by a hearing panel.

Article 16 of the Code of Ethics requires REALTORS® not to engage in any practice or take any action inconsistent with the agency or other exclusive relationship recognized by law that other REALTORS® have with clients.

Further, Standard of Practice 16-13 states that: “a REALTOR®, before providing substantive services (i.e., writing a purchase 3 grievance/ethics packages were mailed to complaining parties regarding cases that could not be resolved n

2 arbitration packages were mailed to complaining parties regarding cases that could not be resolved n

75 calls requesting information on real estate procedures

1 call was a arbitration complaint against an agent which were resolved

n

0 violations of public trust cases reported

n

n

n

35 calls requesting information on deposits

offer) to prospects...shall ask prospects whether they are party to any exclusive representation agreement. REALTORS® shall not knowingly provide substantive services concerning a prospective transaction to prospects who are parties to an exclusive representation agreement, except with the consent of the prospect’s exclusive representatives or at the direction of the prospect.”

Based on these principles, if the buyer is not under an agency or other exclusive relationship with another real estate agent, the REALTOR® can deal with the buyer, including writing the offer and acting as a dual agent in this transaction (the other agent may raise the issue of procuring cause), in which case may lead to determination for compensation by a hearing panel. If the buyer has an exclusive agreement with the first REALTOR®, the second REALTOR® can ethically deal with the buyer if the buyer’s exclusive agent specifically gives the REALTOR® permission to do so.

Disputes between REALTORS® regarding commissions are settled through arbitration at the local association and are decided by arbitration panels using C.A.R.’s Procuring Cause guidelines. No clear rule exists as to who is entitled to the commission until the facts are thoroughly analyzed by the panel.

More information on this topic and others are available to members. Visit car.org for a complete listing of legal questions and answers.

If you require specific legal advice, contact C.A.R.’s Member Legal Hotline at (213) 739-8282 and (213) 739-8350. n1

anonymous call

2 calls were complaints against non association members n

n

12 cases referred to Association mediation

n

1 Kern River Lake Isabella call

n

1 Tehachapi call

n

162 Year-to-date total

BAKERSFIELD REALTOR® MAGAZINE

19

SUPPORT OUR LOCAL

2017 BAKERSFIELD ASSOCIATION OF REALTORS®

TASK FORCE/COMMITTEES

Get Involved…Together we can make a difference in our Community. Join any one of our committees; or, if you don’t have much time on your hands, we’ve set up many task forces just for you.

Take part today and find a committee that’s a perfect fit for you.

You can download the application at

YPN

files.bakersfieldrealtor.org/images/JoinCommittee.pdf

Call 635-2315 now!

LIKE US ON FACEBOOK

www.facebook.com/bakersfieldrealtorsypn

They’re a group of young energetic professionals who keep busy all year long. Here’s just a few of the events they have planned. Be sure to save the dates: n April 15: YPN Softball Tournament n April 27th - Legislative Day Orientation n May 3rd: Legislative Day in Sacramento

7th: Compliance of Marketing n September 6th: Do’s and Dont’s of Marketing n October 11 - 12th: Expo, San Diego n November 1st: Lunch and Learn n December: YPN Christmas Party/Mixer You don’t want to miss any of these wonderful events! n June

COLLEGE SCHOLARSHIPS

We’re here to help defer the high cost of college. Apply today!

Our Association champions the pursuit of higher education, because education impacts every part of our community. The Scholarship Trust Fund offers qualified students from a Kern County high school, community college or university an opportunity to apply for scholarship funds.

Priority consideration is given to those who are pursuing a course of study in real estate or a related field at the college or graduate level; however, all students who meet the qualifications are invited to apply.

GENERAL INFORMATION Scholarships are considered once a year. This year applications are

due by May 4th at 5pm. Former recipients are invited to re-apply.

QUALIFICATIONS Applicants

must be a graduate of a Kern County high school or a student/ graduate of a Kern County community college or university.

Visit our website for more information and to download the application.

2017 Applications are available online, go to www.goo.gl/s2OUfq

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BAKERSFIELD REALTOR® MAGAZINE

SUCCESS

Welcome, New Members!

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

new realtors ® february 2017

FEBRUARY: Brenda Allison, Keller Williams Realty; Elizabeth ArteagaGonzalez, Miramar International – Downtown; Lisa Anna Asif Beatty, Coldwell Banker Preferred; Caroline S Awadallah, Hani Guirguis, Broker; Tanya Carruseco, Miramar International - CO; Cesar Chavez, Miramar International - Downtown; Daissy Barreto, Stratton Davis Realty; Yuzu Bevly, Keller Williams Realty; Jeffrey Cagle, Jeffrey Ryan Cagle, Broker; Enrique Reynoso Cruz, Stratton Davis Realty; Robert Dees,

Miramar International - Downtown; Joy Dorotheo, Keller Williams Realty; Bradley Duke, Keller Williams Realty; Jose Esquivel, Dream Home Realty; Mercedes Gomez, Sierra Central Real Estate; Rebecca Guardado, Keller Williams Realty; Mariam Haddad, Coldwell Banker Preferred - Co; Darcy Hardenbrook, Urner Realty; Ross Joseph Hoffmann, Stratton Davis Realty; Brandi Jelletich, Magic Real Estate; Rotana Lim, Magic Real Estate; Patricia Lucero, Miramar International; Libbie Rudnick Mahan,

Libbie R. Mahan, Broker; Angela McDowall, Performance REALTORS®, Inc.; Nicholas Meadors, Watson Realty ERA; Maria Mendoza, Capital Real Estate Group; Frederick Mirra, Keller Williams Realty; Raul Morales, Miramar International; Charles Brien Naus, Watson Realty ERA; Margaret Patnode, Coldwell Banker Preferred - CO; Alan Pennington, Alan Pennington, Broker; Peter Petrosyan, RE/MAX Golden Empire; Triston Pflugh, Keller Williams Realty; John Ramos, Watson Realty, ERA; Vianey

Andrade Rodriguez, Stratton Davis Realty; Michael Ruiz, Coldwell Banker Preferred; Jaime Ernesto Santos Alas, Keller Williams Realty; Kaitlyn Rae Scott, Keller Williams Realty; Terrye Lee Steiner, Miramar International; Jennifer Stiles, Vintage Real Estate; Donald Sullivan Sr., Tri-Unity Realty; Michael Velasquez, Stratton Davis Realty; Miguel Jesus Venegas, Miramar International; Chad West, RE/MAX Golden Empire; Matthew Williams, Chaddick Williams Realty, Inc.; Salina Zaragoza, Miramar

Allison Escovedo, 4 USA Loans Inc.; Wendy Gamme, Platinum Real Estate; Blaine Gann, Watson Realty ERA; Maria Angelica Garcia Gonzales, New Generation Real Estate Group; Harbhagwan Gill, Coldwell Banker Preferred - Ming; Sarah Hogue, Keller Williams Realty; Carmen Honesto, Liberty One Real Estate; Karen Beth Leffler, Stratton Davis Realty; Nasr

Mahmood, Century 21 Tobias Real Estate; Marjorie Martinez, Miramar International - Mill Rock; Merlie Mesar, Stratton Davis Realty; Janet Mizban, Janet Mizban, Broker; Mary Morrison, Coldwell Banker Preferred - Coffee; Elvia Gomez Ortiz, Stratton Davis Realty; Judith Pen, Keller Williams Realty; Angela Perdikis, Miramar International - Riverwalk;

Lovkarn Singh Riar, Watson Realty ERA; Elisabet Ruelas, Miramar International - Search Kern; Tina Spurling, Stratton Davis Realty; Nikki Stumbaugh, Real Estate eBroker Inc.; Joseph Van Boening, Century 21 Tobias Real Estate; Jonathan Vaughn, Maracom Real Estate; Adrienne Wiggins, Watson Realty ERA; Chad Michael Wright, Keller Williams Realty

new realtors ® march 2017

MARCH: Karen Baeza, Miramar International; Nelson Cantu, Stratton Davis Realty; Kurt Carlisle, Crystal River Realty; Jaime Lynn Cherry, Miramar International - Mill Rock; Diana Coburn, Miramar International - Co; Devin Cooper, Coldwell Banker Preferred - Co; Justin Deveroux, Keller Williams Realty; Salvador Diaz Ramirez, Platinum Real Estate;

PARTNERSHIPS

M

embers of The A Team! Collectively, these individuals form a group of loyal, hard-working Affiliate members who serve the Association in a variety of ways. Over a long period of time, they consistently: Attend activities and

events such as MLS Open Forum, Commercial Investment and more; Volunteer their time and energy to support the Association’s programs and activities; Promote Association activities to other members; Contribute raffle items and door prizes, as well as sponsor various programs and special events.

For all their continued support, A Team Members earn these opportunities: Featured in all issues of Bakersfield REALTOR® Magazine; Complimentary advertising through The A Team contact list on the Association website; Complimentary recognition on the Association Reception TV; First opportunity to sponsor key events with a sponsor banner. If you’re interested in becoming a member of The A Team contact Michele Cooper, our Affiliate Chair.

MICHELE COOPER Chair San Joaquin Valley Mortgage mcooper@sjvalleymortgage.com

661.900.2358

THE “A TEAM” – AFFILIATES IN ACTION

JEFF AGUILERA Vice Chair Cornerstone Mortgage 661.578.9259 jeff@csmbakersfield.com www.cornerstonemortgage.com

BARBARA WELLS

CHEREYL NUNN

Agape Mortgage 661.324.2427

San Joaquin Valley Mortgage 661.703.2227

Wells Fargo Home Mortgage 661.664.5300

mikegeorge@agapemtgco.com www.agapemtgco.com

bwells@sjvalleymortgage.com

chereyl.a.nunn@wellsfargo.com www.wfhm.com/loans/chereyl-nunn

LISA HOOK-ESTES

SUZI BEATY

JANETTE RAMSEY

The Mortgage House 661.832.4100

Fidelity National Home Warranty 661.477.3906

Janette Ramsey Insurance 661.328.9250

lhook-estes@themortgagehouse.com www.themortgagehouse.com

22

MIKE GEORGE

BAKERSFIELD REALTOR® MAGAZINE

suzi.beaty@fnf.com

janette@jramseyinsurance.com www.jramseyinsurance.com

DEANA WITWER

Built Wright Home Inspection 661-331-9659 deana@builtrighthi.com www.builtwrighthi.com

YPN PARTNERS with Habitat for Humanity

O

ur Young Professionals Network (YPN) will be joining forces with Habitat for Humanity of Bakersfield in August to work on an innovative residential real estate project.

The ultimate goal of their efforts are to raise awareness of the need for affordable housing for low-income families.

It’s such a wonderful partnership, that every year, NAR implements the Habitat Pact, which takes place at the annual Realtors® conference and Expo. The first house was built in Chicago at the 2001 Conference & Expo. REALTORS® took some time out from their busy schedule to help Habitat staff and volunteers build a single-family house from the ground up.

The house, located within the limits of the convention host city, became the home to a family selected by Habitat.

NAR past president Richard Mendenhall championed the program as a way for REALTORS®to leave a lasting legacy to the dream of homeownership in every city where the conference is held. “Mendenhall sees this program as a way for REALTORS® to give

back something tangible to the city we visit,” says Marbury Little, who brought the idea to NAR’s Leadership Team.

In the same spirit of giving back to our community, our local YPN’ers are building their own lasting legacy by joining forces with Habitat for Humanity Bakersfield helping to work on homes for a local families.

Get involved! If you’d like to participate in the Habitat for Humanity build, contact Scott Knoeb at 661-205-4394. And if you’re not a YPN’er, you’re also welcome to participate. It will be a time of camaraderie and great joy to be able to give back to our community, to a family in need. This partnership build will take place in August 2017.

About Habitat for Humanity MISSION. Seeking to put God’s love into action, Habitat for Humanity brings people together to build homes, communities and hope.

Vision. A world where everyone has a decent place to live.

Principles. Demonstrate the love of Jesus Christ.

Focus on shelter. Advocate for affordable housing. Promote dignity and hope.

Support sustainable and transformative development.

Who they are. Habitat for Humanity partners with people in your community, and all over the world, to help them build or improve a place they can call home. Habitat homeowners help build their own homes alongside volunteers and pay an affordable mortgage. With your support, Habitat homeowners achieve the strength, stability and independence they need to build a better life for themselves and for their families. Through our 2020 Strategic Plan, Habitat for Humanity will serve more people than ever before through decent and affordable housing.

BAKERSFIELD REALTOR® MAGAZINE

23

Your message on target START MARKETING AND PROMOTING YOUR COMPANY TODAY with the Bakersfield Association of REALTORS®. The Association has over 1,800 REALTOR® and Affiliate members.

We offer many ways for you to actively communicate your company’s brand and marketing message directly to our members.

Every week we host a variety of activities, classes, and events.

Reach your target market in smart, effective and affordable ways.

Please consider one of our many opportunities.

PARTNERSHIP OPPORTUNITIES: PRICES RANGE PER ACTIVITY

NON-MEMBER WEBSITE RATES

MEMBER RATES

WEBSITE

WEBSITE

Advertising Rates

Member Advertising Rates

Feature Ad

$500/mo

Feature Ad

$400/mo

Home Page

$400/mo

Home Page

$300/mo

CONNECTIONS NEWSLETTER

CONNECTIONS NEWSLETTER

Eblast Newsletter

Eblast: Member Newsletter

1 time run

$240/blast

1 time run

$60/blast

4x consec. run

$500/mo

4x consec. run

$200/mo

MAGAZINE

MAGAZINE

Advertising Rates

n e-Newsletter

1/4 page

$400

n Educational

Classes

1/2 page

$600

n Networking

Activities

Full Page

$800

n Community

Outreach

Inside Front Cover

$900

Inside Back Cover

$900

n Special n and

Events

so much more

Our Website has a new look!

Its’ still under consturction, but you can take a sneek peak. Check out our new advertising opportunities… bigger ads, redirects, more pages.

Go to bakersfieldrealtor.org

Back Cover

$1,000

Hit Your Target market!

Call Today 661.635.2307 Carol Duran, Communications Design and Development.

All ads must be submitted camera ready (pdf or jpeg).

If you need an ad built, we can help, see design rates.

Member Advertising Rates 1/4 page

$150

1/2 page

$250

Full Page

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Inside Front Cover

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Inside Back Cover

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Back Cover

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DESIGN Member Design Rates Business Card Ad

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Banners

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1/4 Page Ad

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Does not include stock art fees, if applicable

Advertise now, call 661.635.2307 24

BAKERSFIELD REALTOR® MAGAZINE

update

Members collaborate with BOYS & GIRLS CLUB contribution by

WILLIAM CHICAS Watson Realty ERA

L

ast year’s collaboration with the Boys & Girls Club was such a huge success, that we’ve continued to collaborate with them again this year. William Chicas, Chair of our Equal Opportunity Committee, is very proud and excited to work with the students again. We will be joining forces with PG&E’s Boys & Girls Summer School program, which works with approximately 325 students. Participating are committee members: AJ Bhuee, Vice Chair, Jeff Aguilera, Stacy Burt, Michele Cooper, Candice Criswell, Joy Dorotheo, Pam Epps, Lisa Hook-Estes, Misty Jeffires, Midge Jimerson, Elizabeth Livingston, Wayland

Louie, Jenny McLean, Lisett Peterson, Robin Rossi, Kaitlin Rudnick, Sandy Shergill, Randell Steele, Claudia Bugarin and Linda Jay, who are all very excited to partner in the 10-week program which engages these students. In this program, they will help the kids understand and set goals; explore career opportunities; prepare a resumé; fill out job applications; prepare a letter of reference; follow-up on job leads; learn how to use communication skills; and how to make a good impression on their employer.

This year we are also partnering with Equal Housing Opportunity Homes of Hope Foster Family Agency and Training Center of Bakersfield. We are helping them with a mural project that will exhibit an equal housing environment from the community in the City of Bakersfield. This mural will show the kids that it is important to be part of the community in helping others around you.

Homes for Hope is a program which helps kids get back on track, and teaches them better ways of doing things.

The importance of education was the focus of a speech given by former U. S. Secretary of State Condoleezza Rice during her visit to Bakersfield to co-host a fundraiser for the Boys and Girls Club of Kern County.

Ms. Rice has been a public supporter of the afterschool programs of the Boys and Girls Club of America, specifically in the areas of fine arts, music, and dance for many years. At the event, she was joined by Kevin McCarthy, Congressman and Majority Leader of the U. S. House of Representatives. The Bakersfield Association of REALTORS® was proud to sponsor this event and continue our growing partnership at the Boys and Girls Club of Kern County.

BAKERSFIELD REALTOR® MAGAZINE

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Pending Home Sales Leap

5.5% in February

NAR — Pending home sales rebounded sharply in February to their highest level in nearly a year and second-highest level in over a decade, according to the National Association of REALTORS®. All major regions saw a notable hike in contract activity last month.

The Pending Home Sales Index,* www.nar. realtor/topics/pending-home-sales, a forwardlooking indicator based on contract signings, jumped 5.5 percent to 112.3 in February from 106.4 in January. Last month’s index reading is 2.6 percent above a year ago, is the highest since last April (113.6) and the second highest since May 2006 (112.5).

Lawrence Yun, NAR chief economist, says February’s convincing bump in pending sales is proof that demand is rising with spring on the doorstep. “Buyers came back in force last month as a modest, seasonal uptick in listings were enough to fuel an increase in contract signings throughout the country,” he said.

“The stock market’s continued rise and steady hiring in most markets is spurring significant interest in buying, as well as the expectation from some households that delaying their home search may mean paying higher interest rates later this year.”

Added Yun, “Last month being the warmest February in decades also played a role in kickstarting prospective buyers’ house hunt.”

Looking ahead to the busy spring months, Yun expects to see continued ebbs and flows in activity as new supply struggles to replace listings that are going under contract at a very quick pace. This is especially the case at the lower- and mid-market price ranges, where

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choices are minimal and prices are being bid higher by multiple offers.

“The homes most buyers are in the market for are unfortunately the most difficult to find and ultimately buy,” said Yun. “The country’s healthy labor market is translating to greater job security, but affordability is not improving because home prices in some areas are still outpacing incomes by three times or more because of tight supply. How much new and existing inventory there is on the market this spring will determine if sales can reach their full potential and finally start reversing the nation’s low homeownership rate.”

Existing-home sales are forecast to be around 5.57 million this year, an increase of 2.3 percent from 2016 (5.45 million). The national median existing-home price this year is expected to increase around 4 percent. In 2016, existing sales increased 3.8 percent and prices rose 5.1 percent.

The PHSI in the Northeast rose 3.4 percent to 102.1 in February, and is now 6.6 percent above a year ago. In the Midwest the index jumped 11.4 percent to 110.8 in February, but is still 0.6 percent lower than February 2016.

Go to www. goo.gl/Yxb7xg to hear what Lawrence Yun, NAR chief economist has to say.

Pending home sales in the South climbed 4.3 percent to an index of 127.8 in February and are now 4.2 percent above last February.

The index in the West increased 3.1 percent in February to 97.5, but is still 0.2 percent higher than a year ago. * The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.

NOTE: Existing-Home Sales for March will be reported April 21, and the next Pending Home Sales Index will be April 27; all release times are 10:00 a.m. ET.

HOME AUTOMATION

Virtual Reality AND BIG DATA

PAUL SALEY

MANAGER OF MARKETING STRATEGY | REAL TRENDS

Find out how the current tech trends can change your business in the coming years.

Working with firms across the country, we have a unique vantage point that allows us to understand how brokerages are incorporating new technology into their company and strategy. We’ve seen the rise of smart home technology over the last year, and it will continue to impact real estate as consumers become more accustomed to the gadgets and tools that help them save time and money.

In addition to the continued dominance of home automation, other trends that will be heavily manifested this year include the incorporation of virtual reality and big data.

Recently, members of the REAL Trends Technology team attended the 2017 Consumer Electronics Show in Las Vegas to get a pulse on the latest technology trends and releases. Let’s take a look at the top three trends:

Home Automation Smart homes are getting smarter. We’ve already seen the popular smart home technology introduced last year in its second iterations.

Voice-command technology has been the method of choice for big smart home companies to deploy their products. Amazon

Alexa captured the market on voice-assisted tech. Many suspected Google Home or Apple Homekit to lead the pack, but that’s not happened yet.

When one thinks of home automation, typically a whole house system comes to mind, such as a thermostat or camera system.

Smart home technology has entered into a realm of being specific to particular facets and rooms of the house. For example, smart nurseries. Smart nurseries include products such as baby monitors, scales, heart-rate monitors and more. Also popular are outside systems, such as smart garages, smart sprinkler systems, smart doorbells, and smart outdoor security monitoring.

Virtual Reality Today, consumers expect high-definition (HD) imagery, maps and even drone footage of a property before they pick up the phone to schedule a showing. Imagine if consumers could tour a home from the comfort of their living rooms or offices? Some real estate firms are already experimenting with virtual reality (VR). This solution is appealing to longdistance consumers. The ability to navigate a home, inspect the floor plan and have a 3D experience before visiting a property could have a profound effect on the real estate industry. Matterport, a virtual imaging company, provides 3D environments to the

real estate consumer. Expect VR to become more and more mainstream as new consumer 3D cameras flood the market.

Big Data We’ve seen a shift in the ability to leverage big data with marketing efforts. A perfect example of this is Facebook. Without thinking twice, Facebook users provide information on a daily basis that can be used for marketing purposes. From check-ins at local restaurants to relation-ship or job status changes, marketers have found a way to tap into this big data for the purpose of targeting the perfect consumer. Downloaded an app lately? This information is fair game, too. With the wealth of information people provide to cyberspace on a daily basis, there’s an incredible opportunity for brokerage firms to use this information to their benefit. Not only has Facebook exercised this ability, but also other display network platforms are aggregating big data and allowing advertisers to purchase ad space and categorize consumers. We expect this trend to continue and even expand in 2017.

Questions about your 2017 technology and marketing initiatives? Contact the REAL Trends Technology and Marketing team for more information at tech@realtrends.com.

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

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LOCAL NUMBERS YOU NEED TO KNOW

INDUSTRY STATISTICS

2016 Compared to 2017 by MLS Area

state of the

HOUSING MARKET 2017 YEAR-OVER-YEAR STATS Area 10

Dollar Value

# Sold

Average Sold Price*

% of List Price*

DOM*

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

31

48

$4,858,450

$7,217,550

$156,724

$156,706

37

38

97.66

96.47

21

25

23

$2,247,340

$2,156,314

$98,207

$95,777

29

55

107.82

97.63

22

41

36

$6,770,950

$5,519,566

$165,145

$153,321

32

35

98.02

98.66

23

2

4

$740,000

$929,000

$370,000

$284,500

63

58

93.67

96.45

31

42

38

$6,370,069

$5,200,290

$151,668

$137,035

36

44

97.18

96.44

32

77

92

$12,488,337

$16,586,727

$172,982

$184,882

60

60

96.97

96.57

33

17

30

$3,745,805

$7,294,821

$220,341

$250,615

63

49

97.61

99.86

34

12

14

$4,970,400

$4,167,920

$414,200

$297,709

57

56

89.90

96.68

41

17

29

$2,158,945

$3,738,150

$143,925

$128,902

60

48

96.01

97.60

42

24

20

$3,875,585

$3,597,600

$167,591

$179,880

48

52

99.51

98.29

43

0

2

$0

$195,000

$0

$97,500

0

30

0.00

97.50

51

71

102

$10,338,501

$15,222,487

$154,117

$153,571

39

35

98.16

98.15

52

228

251

$46,599,853

$50,709,219

$214,043

$214,012

50

46

97.98

98.62

53

119

140

$35,315,054

$43,481,043

$300,625

$317,067

43

50

98.22

97.65

54

0

2

$0

$590,990

$0

$295,495

0

51

0.00

100.68

61

31

31

$8,324,990

$8,204,625

$281,224

$264,665

67

58

98.05

98.44

62

174

181

$51,693,721

$53,256,054

$296,256

$294,232

68

56

98.54

97.97

63

56

62

$20,526,436

$20,689,569

$366,544

$333,703

59

57

98.38

96.85

64

2

3

$794,000

$1,193,000

$397,000

$397,667

14

70

97.07

93.65

80

21

24

$5,610,890

$5,811,479

$267,185

$257,195

54

55

97.93

98.84

81

1

2

$179,900

$192,000

$179,900

$96,000

6

421

100.00

89.32

82

5

0

$439,500

$0

$121,333

$0

106

0

94.44

0.00

83

2

10

$273,000

$1,433,900

$136,500

$143,390

145

48

97.50

99.09

84

2

4

$1,016,271

$2,139,900

$926,271

$534,975

7

64

100.68

95.79

85

6

3

$1,860,300

$1,240,000

$359,060

$413,333

228

97

95.10

94.73

91

11

10

$1,757,800

$1,291,190

$144,790

$129,119

33

50

95.62

94.96

92

1

0

$510,000

$0

$510,000

$0

135

0

94.44

0.00

93

0

0

$0

$0

$0

$0

0

0

0.00

0.00

94

3

2

$469,000

$360,000

$122,000

$230,000

24

58

87.14

94.85

95

29

35

$4,981,200

$6,637,583

$171,766

$189,645

47

52

97.16

96.06

96

24

39

$3,323,349

$4,111,779

$132,850

$105,821

41

63

98.88

95.23

98

28

36

$5,329,450

$6,798,700

$190,338

$188,853

24

51

98.06

96.60

99

20

25

$7,536,300

$8,325,395

$387,963

$343,061

85

45

98.21

96.61

* Figures from Single Family Homes Only. Statistics were run on March 15, 2017.

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

JANUARY

FEBRUARY 2017

2016

% Year over Year Change

2017

2016

% Year over Year Change

Active

January Contingent

1,592 2017 190

1,805 2016 211

-11.8% % Year over Year Change -10.0%

Active

February Contingent

1,638 2017 249

1,885 2016 243

% Year over Year -13.1% Change 2.5%

Active Pending

1,592 818

1,805 892

190 486

211 515

-11.8% -8.3%

Active Pending

1,638 891

1,885 946

-13.1% -5.8%

-10.0% -5.6%

Contingent Sold

249 442

243 509

Pending Total Volume Closed

818 $110,340,169

2.5% -13.2%

892 $114,839,882

-8.3% -3.9%

Pending Total Volume Closed

891 $99,748,973

946 $113,268,727

Sold Median Sales Price *

-5.8% -11.9%

486 $210,000

515 $211,500

-5.6% -0.7%

Sold Median Sales Price *

442 $217,000

509 $219,000

-13.2% -0.9%

Total Volume Average DOMClosed *

$110,340,169 49

$114,839,882 48

-3.9% 2.1%

Total Volume Average DOMClosed *

$99,748,973 57

$113,268,727 51

-11.9% 11.8%

Median Sales Price *

$210,000

$211,500

-0.7%

Median Sales Price *

$217,000

$219,000

-0.9%

49

48

2.1%

Average DOM *

57

51

11.8%

2017

2016

% Year over Year Change

380 2017 $86,425,198

442 2016 $100,240,527

-14.0% % Year over Year Change -13.8%

January All Areas

Contingent Sold

Average DOM *

Bakersfield January Sold

January Total Volume Closed

February All Areas

Bakersfield 2017

2016

% Year over Year Change

407 2017 $91,165,878

435 2016 $96,863,739

-6.4% % Year over Year Change -5.9%

February Sold

February Total Volume Closed

Sold Median Sales Price *

407 $215,000

435 $215,000

-6.4% 0.0%

Sold Median Sales Price *

380 $220,000

442 $220,500

-14.0% -0.2%

Total Volume Average DOMClosed *

$91,165,878 49

$96,863,739 48

-5.9% 2.1%

Total Volume Average DOMClosed *

$86,425,198 53

$100,240,527 52

-13.8% 1.9%

Median Sales Price *

$215,000

$215,000

0.0%

Median Sales Price *

$220,000

$220,500

-0.2%

49

48

2.1%

Average DOM *

53

52

1.9%

Average DOM *

BAKERSFIELD REALTOR® MAGAZINE

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To Stand Alone or Not? Real Estate CRM OPTIONS

Y

By Real Trends Tech Team

our CRM should be the hub of all things technology in your brokerage. It should be the glue that ties your sales associates to your firm and provides so much value that sales associates aren’t afraid to share their contacts. Most importantly, having a feature-rich CRM positions sales associates and teams for growth.

When it comes to brokerages, there are ways to consider using a CRM: FULL SOLUTION. Using a full real estate solution that is tied to your website. This typically consists of websites, agent sites, CRM, email marketing and lead routing.

Pros: Having everything integrated is exceptional for data control, accuracy and overall accountability. It makes training and adoption easier and allows for the brokerage to track lead sources, ROI and reporting and be transparent. Marketing has greater control of the content and brand standards and can support sales associates with their CRM/marketing endeavors.

Cons: To get a full solution, you must be willing to spend the money. And, if you’re spending so much on the solution, you’ll want to ensure buy-in by your sales

1

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BAKERSFIELD REALTOR® MAGAZINE

associates and a long-term commitment from your vendor.

2

TIED-IN TO OTHER TOOLS. Many firms have contracted with a local- or websitespecific vendor. To this tool, they add-on a real estate specific CRM. Pros: With this option, you get a worldclass CRM with all the bells and whistles.

New features are typically common-place and frequent. A strong API allows you to integrate with your website and other systems. Sales associates like these systems because they usually have robust social tools, email contact and calendar integrations.

Cons: Broker support is tough because many of these CRM companies don’t have the staff and resources to support a larger brokerage.

Reporting and marketing functions are isolated and individual to the sales associates.

Leaving the agents to do everything is difficult for busy sales associates.

3

THE DIY MODEL. Firms promote a specific CRM vendor and give the CRM partner a license to sell to your organization in exchange for a small discount.

Pros: The obvious pros are cost and commitment. It’s the ultimate low-risk

solution for a brokerage. Some of these systems are powerful and low cost for the sales associates. This strategy separates the broker and agent technology strategies.

Some sales associates like the DIY type, but it also allows for the broker to drive their brand and lead generation through separate digital marketing tactics. This system takes the brokerage agnostic in the CRM adoption conversation.

Cons: The broker loses some control. Thus, the agent is portable and can take their CRM and the business they’ve built anywhere.

In the end, this solution is giving the sales associate much more than they can get for themselves on their own. The brokerage has virtually no control, insight, marketing capabilities or connection.

REAL Trends recommends you choose a CRM from options No. 1 and 2. This is due to the long-term and future implications.

Option No. 3 is fairly short sighted for a large brokerage with growth aspirations.

If you need help in this area, please reach out to tech@realtrends.com, and we can give you more specific examples and customized advice.

This article reprinted with the permission of RealTrends Inc. Copyright 2017

One of the hottest property markets in the WORLD PETER GILMOUR

REAL TRENDS CHIEF FOREIGN CORRESPONDENT

New Zealand’s largest city has an average house price of over $500,000 USD. Have prices gone too far?

New Zealand is one of the world’s most open economies with years of unbroken economic growth boosted by strong personal consumption and low inflation. In its Q3 2016 Global House Price Index, Knight Frank reported that New Zealand recorded a yearon-year house price growth of 13.5 percent, second only to Turkey in the 55 countries surveyed. By comparison, the United States placed 24th in the survey with a year-on-year house price growth of 5.5 percent.

Facts about Auckland New Zealand comprises many islands with approximately 70 percent of its 4.7 million people living in urban areas on the North Island. Auckland, the largest city, is situated on the North Island and is the most expensive housing in the country with an average house

price of over $500,000 USD, as reported by the Global Property Guide website. Ten years ago, the average house price was half of this amount, and for the outlay, you may not even get views of the water. Over 70 percent of New Zealand’s population consider themselves of European decent with the largest minority being indigenous Maori, who account for around 15 percent of the population. Farming and commerce are the major employers in the local economy.

Immigration In the aftermath of the Brexit vote, Immigration New Zealand reported a spike in queries from British nationals registering their interest on immigrating. Ten thousand inquiries were received in 49 days—more than double the inquiries received in the same period the previous year.

Why is Auckland so popular? It all comes down to jobs. New Zealand’s most global city attracts those who want to get ahead in their careers, and once employment is found, few want to leave.

Foreign Investment Booming Also, foreign investment is booming.

According to Corelogic, 37 percent of buyers in 2012 were investors, whereas today’s investors make up over 50 percent of all homebuyers, a large percentage of whom are Chinese. Rental prices continue to rise, and many locals are choosing to relocate to more affordable parts of the country and enduring a long commute into the city.

The New Zealand government is urgently looking at ways to find a solution to the crisis. These include fast tracking consent on new housing projects, making investors put down 40 percent of the purchase price in cash, offering locals cash incentives to move out of the city and strengthening of money laundering laws to prevent the stashing of illgotten gains in New Zealand property. Time will tell if these measures will be successful or if Millennials will lead the charge to work remotely and inject new talent into regional centers around the country.

This article reprinted with the permission of RealTrends Inc. Copyright 2017

AUCKLAND, NEW ZEALAND

BAKERSFIELD REALTOR® MAGAZINE

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FACTORS that affect MARKETABILITY SCOTT WRIGHT

DIRECTOR OF MERGERS & ACQUISITIONS REAL TRENDS

How does one truly define value? According to the IRS, the standard of value is Fair Market Value, which is defined as “the price at which the property would change hands between a willing buyer and a willing seller when the former is not under any compulsion to buy, and the latter is not under any compulsion to sell, both parties having reasonable knowledge of relevant facts.”

In simple terms, this definition says, “you’re only worth as much as what somebody is willing to pay.” At REAL Trends, our goal as valuators is to determine this worth. There is a myriad of factors that go into this process.

Before these factors are considered; however, it’s important to recognize the precarious nature of the residential real estate brokerage business. This is a business where the primary asset is not a tangible product, but rather an independent contractor sales professional who may freely move from one brokerage to another. Add this to the fact that the housing market is subject to a high degree of seasonality and cyclicality, and it is only then that you can establish a baseline upon which to build value. Thankfully, despite the overlying risks associated with this industry, brokerages are still marketable businesses with transactional value.

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BAKERSFIELD REALTOR® MAGAZINE

Financial Performance

Availability of Buyers

One of the first major factors we consider is financial performance. We always look at a multi-year trend, but what matters the most is the performance over the last 12 months. It is this performance that guides the approach to valuation, with the most common these days being the Income Approach.

Not surprisingly, the availability of buyers is one of the more important factors that affects marketability. The fewer available buyers; the more a firm’s value can be discounted.

Remember, you are only worth as much as someone is willing to pay. And, it is this willingness to pay that is hands down the most important factor that drives value.

Doing what we do on the mergers and acquisition front allows us to see what the buyers are actually paying to buy brokerage firms. This knowledge is invaluable and allows us to pin down Fair Market Value.

Size and Concentration of Sales Some other factors that naturally affect marketability are size and concentration of sales, which often go hand-in-hand. Larger brokerage firms are usually going to have a premium over smaller firms, all things being equal. With a large firm, there are more sales associates and thus a greater volume of transactions, which often leads to a more robust cash flow. With a larger volume of transactions spread across a larger agent pool, you also don’t typically run into concentration of sales issues. The loss of a top agent or team has much more of an impact on smaller brokerage firms.

Location and Competition Location and competition are other factors to consider when applying the value. Firms in larger metropolitan areas will typically get a premium simply because there is more inventory and, in all likelihood, a lot more market share to gain. Also, the bigger the city or region serviced the more competition. More competition means more available buyers.

Other Factors There are, of course, many other factors that we consider in the valuation process, including compatibility, brand, culture, leadership, economy and longevity. The bottom line is the factors mentioned above and more are all taken into account when determining value.

At REAL Trends, thousands of brokers have trusted us to conduct their valuations.

Whether it’s for the sale of the company, the sale of partial shareholder interest, insurance, estate, legal or partnership issues, business planning, or simply wanting to know what your firm is worth, you can count on REAL Trends to be your trusted source.

This article reprinted with the permission of RealTrends Inc. Copyright 2017

TRENDS

Norton talks buyer trends

Lessons remembered – learn from leaders where tomorrow’s opportunities and threats lie.

Those who know Frank Norton of The Norton Agency in the Gainesville and North Georgia area, joke with him about the multitude of businesses with which he and his family are involved. From residential brokerage to a large property casualty insurance business and numerous investment and property management services, Norton’s reach still exceeds his grasp. We asked Frank about what he sees ahead.

“2017 will likely be a repeat of 2016 [regarding] small increases in unit sales and prices,” says Norton. “It all depends on where you are in the United States, but there aren’t any factors present that would affect the market too much. We’ve seen a pause as developers and builders wait to see the direction of the new administration, but we don’t believe [this pause] will last. With income and employment still growing, housing these new households is going to be a big challenge.”

Active Adults and the Cool Factor However, according to Norton, he’s seen the Baby Boomer generation in Georgia shift to

smaller houses; but more of them. “Boomers are selling off their larger houses, and we see them buying two units to replace it—one for [living] and one as a getaway place. We see the development of far more active adult communities in our market than ever before,” Norton says.

“We’re also hearing from our [sales associates] that buyers are looking for more of the cool factors in the houses they want,” he says. “They want something that expresses their uniqueness. It might be smart home features, outdoor living/cooking areas or community amenities. They want that extra something that fits their personality.” He adds that it’s not only Millennials seeking this wow factor; this interest spans all generations.

Sales Associate Challenges REAL Trends asked Norton what is challenging his sales associates. “Buyers are showing up more knowledgeable about the homes and neighborhoods. This isn’t new, but the incidence of it has risen significantly. It is going to challenge all [sales associates] to have to do far more homework than they have in the past, or else they’ll find themselves ducking and covering when they are in the presence of a well-educated buyer.”

“The important thing is that while buyers are far more informed about properties and neighborhoods, they still seek guidance from

their agent, whether it is the non-public information or the transactional details of getting a deal done. Our agents tell us that they are doing more than ever to put and keep deals together. That is a good sign as far as we are concerned.”

Diversify and Thrive Norton is an avid pursuer of diversification.

“We have numerous businesses wrapped around the real estate transaction, whether it be residential or commercial. Our view is that there is no good reason we can’t be the premium, dependable supplier of all one needs when they are investing in real estate.”

Looking at the changes in his own business Norton says, “We have over 300 employees in our various businesses. You can’t lead a firm with that many people [the same way you did] when you had 50 employees. We now have a full-time human resources director.

We have become a different company. What doesn’t change is that to succeed you have to make great hires. That is the key to growing successfully, and there is no shortcut in this key area.”

For now, Norton has no intentions to slow down. “My dad and mom are alive and well in their late 80s. I don’t see retirement on the near horizon. Shoot, I don’t have enough hobbies to retire,” he laughs.

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

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TECHNOLOGY

Filling out forms gets a lot easier with zipLOGIX

N

AR and zipLogix are providing REALTORS® with access to a suite of tranaction tools shaped by nearly 25 years of industry expertise. Every REALTOR® member is now empowered with a comprehensive transaction platform, with the tools they need to prosper in today’s dynamic real esate market. Here are just a few, and many are free as a member benefit: NEW! zipTMS™ Now a FREE member benefit. Track and manage all transaction information and activities from listing through closing on a secured website 24/7.

This FREE member benefit from NAR and C.A.R. is woven right within your zipForm® Plus account so that you can quickly stay on your every day tasks. zipForm® Mobile Connect right where you are with zipForm® Mobile for Apple® iPad® & iPhone®, BlackBerry®, Andriod™ devices. Another way to stay connected to

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BAKERSFIELD REALTOR®

your clients and never miss a beat. zipVault Document online cloud storage in an easy to access and secure location within zipForm® Plus. Eliminate storing paper files. ®

zipLogix® Digital Ink® Works seamlessly with zipForm®, allowing you to instantly send real estate forms requiring signatures and eliminates the cost and time of printing, faxing, or traveling to get paper copies signed. Provide a paperless experience that ensures data and signature are protected throughout the “Signed, Sealed and Delivered” online process. zipFormMLS-Connect® Easily import listing data from an MLS system into a zipForm® transaction to eliminate the need for double data entry for many fields in a transaction.

Forms Advisor® An online software program that identifies which C.A.R. Standard Forms you need for your transaction. to use

and how to complete the forms. In addition, this rules-based tool creates the transaction in zipForm® Plus with the recommended forms, reducing the time spent on creating a transaction.

Forms Tutor® This online service inside of your zipForm® account provides fundamental instruction for completing the forms clause-by-clause.

Choose between audio and text instructions. zipConsult® The newest real-time collaboration tool inside of zipForm® Plus. And best of all, it’s free from C.A.R. It’s perfect for one-toone meetings or group collaborations. Web conferencing tool, powered by AnyMeeting™.

Choose between audio and text instructions.

SOURCE: www.car.org

More Resources Available

See the C.A.R. calendar on www.car.org/zipform/zf/ For upcoming FREE webinars. For recorded webinars visit videos.car.org

PRIVATE MONEY LOANS 100% PURCHASE MONEY LOAN PROGRAM* n No

Appraisal – Local n ITIN - OK n Close in Days, Not Weeks n Residential n Investment

Properties

n Quick

Approvals n Commercial/Industrial

n AG/Farm

Land

*Call now for details on this blanket loan program

Anita Calvillo

Mark Augustine

acalvillo@valleymortgageinvestments.com

maugustine@valleymortgageinvestments.com

CalBRE#01731835 * NMLS#287171

CalBRE#01875774 * NMLS#289612

(661)

432.0258

(661)

706.0446

Valley Mortgage Investments 5100 California Avenue, Suite 122 | Bakersfield, CA 93309 office 661.633.1600

|

fax 661-634-0600

Prsrt Std U.S. Postage PAID Bakersfield, CA Permit #70

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