M A G A Z I N E F E B RUA RY / M A RC H 2 017
INSIDE
VINCE FONG
Assemblyman fighting for us in Sacramento
CODE OF ETHICS
Midge Jimerson
NAR mandates new 2-year cycle
Meet your new president. See Page 4
REAL ESTATE OFFICES Are they a thing of the past?
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new look
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H O M E O W N E R S H I P
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BAKERSFIELD REALTOR® MAGAZINE
CONTENTS
INAUGURAL SNAPSHOTS
Bakersfield REALTOR® Magazine
4 6
A LEGACY OF LEADERSHIP Letter from 2017 President Midge Jimerson. 2016 AWARD RECIPIENTS Join us in congratulating our 2016 award recipients as we continue a time-honored tradition of recognizing members of our Association for their exemplary service to our Association, profession and community.
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HOUSING REGULATION Can Trump reduce housing regulatory costs? INAUGURAL SNAPSHOTS 2017 President Midge Jimerson Inaugural Celebration. LOCAL WOMEN’S COUNCIL OF REALTORS® 2017 President Michele Cooper.
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LEADERSHIP ACADEMY Specialized training for local leadership spearheaded by Sheri Anthes.
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ASSOCIATION WEBSITE Take a sneak peek! We are still putting the finishing touches on the Association’s website redesign, bakersfieldrealtor.org, take a look.
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ON THE COVER Midge Jimerson introduces vision and values for members as 2017 president.
MEMBERSHIP BENEFITS Association offers various Realtor® benefits tailored just for you. Get the most out of your dues. STATE OF THE HOUSING MARKET Housing Statistics compare 2015 to 2016.
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.org www.bakersfieldrealtor.com facebook.com/bakersfieldrealtors twitter.com/bakorealtorsBAKERSFIELD REALTOR MAGAZINE ®
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LETTER FROM THE PRESIDENT
MIDGE JIMERSON
Y
2017 PRESIDENT es, it’s all about NEW! A NEW YEAR! A NEW PRESIDENT for our country! A NEW MAYOR for our city! A NEW PRESIDENT for the Bakersfield Association of REALTORS®! NEW HOMES! NEW CARS! NEW PHONES! Then, there are NEW LAWS! NEW REGULATIONS! NEW FORMS! And, we should not forget our NEW YEAR’S RESOLUTION! NEW! NEW! NEW! Yikes! Hi! My name is Midge Jimerson and I am your 2017 President for the Bakersfield Association of REALTORS®. Yes, I am the NEW President of our Association following the wonderful 2016 Association President, Bill Redmond. Each year, incoming presidents are asked to select a theme for their year as president, which sets the tone for that year.
My theme is Vision, Values and a Legacy of Leadership. My theme fits me like a hand-in glove, because of the wonderful Legacy of Leadership that has gone before me. I am the first, third-generation female president of our Association. I have followed in the footsteps of my father, John E. Boydstun, who was president in 1952; and, my grandfather, C.E. Boydstun, President in 1945.
My experience and exposure to real estate came at an early age. As a child and young adult, I had the opportunity to meet many of our Association’s leaders from long ago. It’s very powerful to think back to that time, because those leaders had high values and upheld the Code of Ethics prescribed by the National Association of REALTORS® — the same Code of Ethics we use today! Our past Association
VISION AND VALUES – A LEGACY OF LEADERSHIP leaders had the wisdom to continually look forward to ensure that they were bringing the NEWEST, the best, and the most current information pertaining to the real estate industry to the members of our Association. The accomplishments they have made over time are too many to name, but here are a few examples: 1) They had a vision that the membership of our Association should not rent, but own the building in which they are housed; that has been accomplished; 2) They developed a strategic plan that is so highly respected, it is used as an example in other countries across the world; 3) In 2017, we are launching the newly developed Leadership Academy as a path for members to grow their leadership abilities for our Association and community; 4) Our members spend their time, energies and talents by working with our community and supporting projects like the Boys & Girls Clubs of America, cancer awareness (Bringing Home the Cure) and Sally’s Place. So why am I talking about “NEW”? Doesn’t the word “new” conjure up many thoughts? New can be pleasing when it is something new we desire. The word “new” can be terrifying for some because it might require change. In the last few years, the real estate community has had to learn about many NEW things, like the… iPad, tablet,
ABOUT MIDGE JIMERSON Midge is a third-generation REALTOR , who is very proud of the legacy of leadership that has been handed down to her by her family. She was born into a real estate leadership legacy, as her grandfather served as President in 1945, and her father served as President in 1952. She learned about real estate from childhood. She remembers, “In our household, you couldn’t answer the phone unless you knew how to answer it professionally. This meant being able to take a message that included the date, time, the caller’s name, phone number, and the purpose of the call. I worked in the office and learned about listings and the MLS. I would help my dad while he held ®
GET INVOLVED…Together we can make a difference in our Community. Join any one of our committees; or if time is limited, we’ve set up many task forces or quick action groups just for you. Take part today and find a committee that’s a perfect fit for you.You can download the application at www.bakersfieldrealtor.org
Call 635-2315 now!
phone, programs and apps. Many of us struggling with the idea of having to learn how to navigate a NEW app or a NEW piece of equipment. Did you know that each month the Bakersfield Association of REALTORS® offers TUG classes (Technology Users Group) to help you comprehend and navigate these NEW apps and/or your NEW devices?
an open house – so I learned how to show a home at an early age”. Midge has held her real estate license since 1993, and has learned so much about real estate. She states “I have learned the importance of private property rights; and most importantly, how to serve my buyers and sellers in the best capacity possible”. She joined Boydstun Realty Co., Inc., when her father was her broker. The first thing he encouraged his new agents to do was to get involved in our local Board of REALTORS®. He explained that it would help get us connected with more people in the industry. Because of that great advice, she has served on almost every committee at the Association. She mentions that “Serving has proven to
It is important for you to know that your Association leadership works hard at staying up-to-date on the NEW laws and NEW regulations that could have an impact on our membership and private property rights. It is critical that we keep the membership informed as to how these NEW changes will affect their day-to-day business. Each year, many of us start a clean slate and develop a list of NEW Year’s Resolutions. I would hope that you make it your NEW Year’s Resolution to get involved with the Bakersfield Association of REALTORS®. This is your membership and your Association! You pay the dues; why are you not involved? I often equate it to a gym membership. You pay your dues to benefit your health, but if you never go, what do you get out of it? Did you get the results for which you were looking? It’s the same with our Bakersfield Association of REALTORS®. You are a member, you pay your dues, but are you reaping its benefits? Do something NEW and get involved! It will positively impact your life and your career in real estate! Getting involved on a committee is one of the easiest ways to network, build friendships and share ideas. Join me and become part of the active members of our Association and join a committee today!
be very enlightening and educational, and has enriched my profession in ways I never dreamed. Plus, it has helped me get to know my colleagues on a personal level. Many times, it helps to have that connection when you are trying to work a transaction”. She has experienced many changes during her real estate career. From new ways to access MLS information, changes and more changes to our contacts and disclosures; many new rules; new laws to protect the consumer, along with many changes in technology. Midge states that “from NAR, C.A.R., to our local Association, collectively we are constantly trying to improve and hone the real estate experience, the clients’ experience, BAKERSFIELD and consumer protection”. REALTOR MAGAZINE ®
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2016 Award Recipients
Join us in congratulating our 2016 award recipients as we continue a time-honored tradition of recognizing members of our Association for their exemplary service to our Association, profession and community. Awarding the prestigious REALTOR® and Salesperson of the Year Awards began in 1955 and continues to be a very time-honored recognition for REALTORS® whose unwavering dedication and commitment to professionalism and service continues to provide a high standard of leadership and accountability.
Derek Sprague
Pam Epps
Brenda David
REALTOR® of the Year
Salesperson of the Year
Affiliate of the Year
Mark Clemmer
Joshua Gregorio
Tina Price
The Affiliate of the Year Award is our way of acknowledging our Affiliate for their tremendous service and support of our Association. The Rising Star Award is our way of recognizing the exemplary service and achievements of our newest REALTOR® protégés.
Rising Star
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BAKERSFIELD REALTOR® MAGAZINE
Rising Star
Rising Star
LETTER FROM THE CEO
Build on your past successes, and learn from your failures. Most importantly, Never Give Up!
W
riting your our story of success… 2017… The beginning of a new year! Twelve months… 365 days 8,760 hours… 525,600 minutes of limitless possibilities and opportunities. Reflecting on the amazing year we enjoyed in 2016 and the many worthy accomplishments we were blessed to experience has once again, set the bar pretty high for the year ahead. One thing is certain, we are hope-filled and enthusiastically committed to succeed in whatever our endeavors! So what might success look like for 2017? Success is defined as achievement of intention; the accomplishment of an aim or purpose; something that turns out well. Setting that as our goal, perhaps it would be prudent to consider not only what success will look like, but also what it will not look like. Intentional, Not Random The words of wisdom shared by Benjamin Franklin, “If you fail to plan, you are planning to fail” and Winston Churchill, “Those who fail to learn from the past are doomed to repeat it” are well-worth our thoughtful consideration. Be intentional about setting a plan for the new year.
2017 OFFICERS
Build on your past successes, and learn from your failures. Most importantly, Never Give Up!… just ask Tom Brady and the Patriots! Seek to Understand, Not Marginalize We live in a very diverse and complex world. As a member of the Strategic Planning and Finance Team for the California Association of REALTORS®, I recently read the book Strangers in their Own Land by Arlie Russell Hochschild. The thoughts shared by the author included the concept that we all have a ‘deep story’ to our life… our life’s culture and experiences that have shaped our beliefs and convictions. We are entitled to those beliefs and convictions even though they may not be shared by everyone. Flexible, Not Immutable The one constant in life is change… how well we know that truth! I recently heard a message delivered by Rex Tillerson, the newly confirmed Secretary of our U.S. State Department, to the 75,000 members of his department in which he stated, “Change for the sake of change can be counterproductive, and that will never be my approach. We cannot sustain ineffective traditions over optimal outcomes. I will gather
information on what processes should be reformed, and do my part to make sure we are functioning in the most productive and efficient way possible.” Be ready and open to adapt to new, different, or changing requirements. “Blessed are the flexible, for they shall not be bent out of shape.” – Anonymous Principled, Not Without Values As REALTORS® we have pledged to uphold the high standards of ethics and professionalism, as prescribed by our REALTOR® Code of Ethics, which also includes committing to personal accountability with regard to our actions and decisions. It also sets the standard of care and respect with which we should strive to serve members of the public as well as our colleagues. It’s not about me… It’s about us! There is no ‘I’ in Team! Our mission and goals are much bigger than you or I! It is what we individually and collectively bring to our organization… our knowledge, experiences and talents… that grows and strengthens us in ways we never dreamed possible! Let’s keep our aim high and our purpose steadfast!
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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Things we need to know about the
PACE Program
M
any of our members have had the opportunity to be educated about Property Assessed Clean Energy (PACE) financing programs that are available to homeowners in our community. Many of you have also experienced complications during your real estate transactions resulting from PACE financing, or you may have clients who have experienced problems. We must educate our legislators, local elected officials and consumers about what our members are seeing on the ground in our community. We need your help. Please contact Kim Schaefer at kim@ bakersfieldrealtor.org to share your story. REALTORS®, homeowners and elected officials should know about the pitfalls and drawbacks of the PACE Clean Energy Program, a government-sponsored program intended to enable homeowners in Kern County to reduce their utility bills while helping to save the environment. The PACE financing program allows homeowners to finance various energy conservation-related improvements through an assessment on their property, such as energy-rated water heaters, windows, and solar panels. When the house is sold, the assessment may transfer with the property and become the responsibility of the new owner; however, many mortgages prohibit this transfer. The loans are repaid over as long as 20 years. A PACE lien is similar to a property tax lien. In fact, it’s a line item on the homeowner’s property tax bill and is paid at the same time and in the same way as property taxes. There are some downsides and hidden
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Kim Schaefer GOVERNMENT AFFAIRS DIRECTOR
risks to this increasingly-popular program which should concern every homeowner. Here are some realities to keep in mind and share with your clients about PACE liens: n You could wind up borrowing too much on your property because the limits are very generous. For example, the owner of a $400,000 home could borrow up to $60,000 on their home. Caution is needed to avoid overleveraging your home with a PACE lien. Like a mortgage, the PACE lien comes out of your equity. Unlike a mortgage where a lender, by law, is required to ensure you can afford the payment, PACE lenders are not under such obligation, which could lead homeowners to overleveraging their homes. n You may not be able to refinance your mortgage with a conventional mortgage. n A PACE lien can be very expensive. Interest rates and fees are generally much higher than those for mortgages or home equity lines of credit. Worse, you will likely have to pay off the lien in order to sell the property to a buyer who wants to obtain conventional financing. Paying off a PACE lien will reduce the amount you can realize from the sale of your home, and in some cases, could impose a financial hardship and
make the home impossible to sell. n Limited mortgage options can create an unfortunate ripple effect. If fewer people can buy your property, it may take longer to sell. The longer the house sits on the market, the less desirable it may become, which could result in a lower sales price. n Consumers should also be aware of potential fraudulent activity and sales practices. As many home sellers in Kern County have discovered, these realities cannot be ignored. The bottom line is this: Are PACE liens worth the risks and pitfalls? That’s a question all homeowners in Kern County must answer for themselves, but it is important our members share their experiences with the community to help them answer that question. Please contact Kim Schaefer at kim@bakersfieldrealtor.org with your story today.
R.Gov is now
RGR
The new name is an acronym for REALTOR® Government Review Advisory Committee. If you’d like to join this committee, contact Kim Schaefer at 661-635-2306
2017 OFFICERS AND DIRECTORS MIDGE JIMERSON 2017 President
BILL REDMOND
DEREK SPRAGUE
ATHENA COLLUP
2017 President Elect
2017 Vice President
Immediate Past President
2015 - 2017 Director
BRIAN TUTTLE
WAYLAND LOUIE
SCOTT KNOEB
ASHLEY WEAVER
DARLENE TOBIAS
2016 - 2018 Director
2016 - 2018 Director
2015 - 2017 Director
2016 - 2018 Director
RONDA NEWPORT
2017 Secretary / Treasurer
KEVIN PALLA
2015 - 2017 Director
ANNA ALBIAR
2017 - 2019 Director
GEMLS BOARD OF DIRECTORS
WILLIAM CHICAS 2017 - 2019 Director
LINDA JAY
Chief Executive Officer
Derek Sprague 2017 President Directors Sheri Anthes v Jenny Magana n v Terri Collins n v Greg Holland n v Midge Jimerson
David Knoeb Wayland Louie Theresa Olson Jeanne Radsick v Bill Redmond v Bill Mell v Terms through
December 31, 2017 n Represents Large Brokerage
BAKERSFIELD REALTOR® MAGAZINE
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Can Trump Reduce Housing Regulatory Costs? More than that, can he reduce them from 25 percent to 2 percent?
SUE JOHNSON | STRATEGIC ALLIANCE CONSULTANT
Here are some regulations Trump has the power to change
I
n an August 11, 2016, speech before the National Association of Homebuilders’ (NAHB) Board of Directors, Presidential candidate Donald Trump made one of his few public campaign statements about housing costs. “No one other than the energy industry is regulated more than the home building industry,” he said. “Twenty-five percent of the cost of a home is due to regulation. I think we should get that down to about 2 percent.” The statistic Trump cited was from a 2016 NAHB study claiming that regulations imposed by the government at all levels account for 24.3 percent of the final price of a new single-family home built for sale. As a developer, Trump had first-hand experience with the costs of over-regulation. His transition website vows to “identify and eliminate unnecessary regulations that kill jobs and bloat government.” But can he reduce housing regulatory costs by 90 percent? Here are a just a few federal requirements that a Trump Administration has the power to change.
Clean Water Rule In 2015, the Environmental Protection Agency (EPA) and Army Corps of Engineers (Corps) published a “Waters of the U.S.” final rule, which clarified which streams, marshes, lakes and rivers are regulated under the Clean Water Act. Home builders consider it to be a vastly overly-expansive rule that would significantly reduce the volume of land they can construct on by requiring expensive federal permits to develop private property near most water bodies. According to one study, it takes an average of 788 days and $271,596 to obtain an individual permit and 313 days and $28,915 for a nationwide permit. The Trump Administration’s transition website says it “will eliminate the highly invasive Waters of the U.S. rule, and EPA Administrator nominee Scott Pruitt led the fight among Republican attorneys general against it. The Sixth Circuit Court of Appeals halted the rule’s implementation during pending
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PHOTO: abcnews.go.com/Politics
litigation. A Trump Administration could ask the court to hold the case and send the rule back to the EPA and Corps for reconsideration. To prevent legal challenges, it would need to publish a notice for comment announcing its plans to withdraw the rule and then begin a new rulemaking policy process.
Overtime Rule The Department of Labor’s (DOL) final Overtime Rule nearly doubled the current overtime salary cap from $23,660 to $47,476. According to its own estimates, compliance costs will be $677.9 million in first year and $241.5 million every subsequent year. Trump did not say much about the Overtime Rule during his campaign. But it has faced strong opposition from home builders and many other industries, and from Labor Secretary nominee Andrew Puzder. The rule’s December 1, 2016 effective date was stayed on November 22 by a U.S. District Court after 23 states challenged the rule. The Department of Justice, on behalf of the DOL, appealed the stay to the Fifth Circuit Court of Appeals. A Trump Administration could direct DOL to withdraw the rule, which would require notice-and-comment rulemaking. Or, Congress could attempt to overturn the rule under the Congressional Review Act, which provides Congress a period of 60 days in which it is in session to pass a resolution of disapproval without triggering a Senate filibuster.
Joint Employer Liability The Democrat-controlled National Labor Relations Board (NLRB) ruled in 2015 that companies can be held responsible for
labor violations committed by unaffiliated contractors and subcontractors, overturning a longstanding test requiring a company to have direct and immediate control over employees before it is considered to have “joint employer” status. The ruling was based on a case in another industry, but home builders protested it on the grounds that it could cripple small businesses. The NLRB decision was followed by a 2016 Administrator’s Interpretation published by the Department of Labor’s Wage & Hour Division, which set expansive new standards for determining joint employer status under the Fair Labor Standards Act. Trump has not spoken about the joint employer liability issue, and the NLRB is an independent agency that is not subject to Presidential authority. But Trump will have the opportunity to appoint Republican members to the NLRB who could reconsider the ruling, and DOL Secretary nominee Puzder has a say in future DOL enforcement standards and priorities.
What is Attainable Most observers agree that a 90 percent cut is unattainable. Many regulations affecting housing costs are imposed by state and local governments, over which the President has minimum control. Moreover, even the NAHB explained that its 24.3 percent estimate is limited to costs and does not account for benefits resulting from housing regulations. Nevertheless, there is hope today within the home building industry that the Trump Administration will significantly cut back on regulations that increase the cost of housing. This article reprinted with the permission of RealTrends Inc. Copyright 2017
REALTORS® WHO MAKE THEIR VOTE COUNT… JOIN THE RGR COMMITTEE NOW!
Turning Sacramento’s Priorities Right Side Up
Solutions to Address Our Community a Priority contribution by
VINCE FONG ASSEMBLYMAN
In the upcoming year, I expect the Democratled Sacramento leadership to be primarily focused on making political statements in reaction to Donald Trump’s presidency. We cannot afford this type of leadership. Instead, I will be working with my colleagues in Sacramento and D.C. to propose solutions to address Kern County’s priorities and the priorities of everyday working residents of Kern County. In the current status quo, we are seeing real consequences to our communities—lost jobs, small businesses struggling to survive, and the safety of Californians still at risk. Regulatory state agencies continue to layer more and more regulations on residents and businesses, which has led to the increasing cost of food, energy, housing, and transportation year after year. Sacramento needs a new direction. At the outset, I will work to create better checks and balances between the Legislature and regulatory agencies throughout the state. Unchecked regulations that have massive fiscal impacts on the business community and threaten jobs, should undergo the proper legislative oversight to hold agencies accountable. My first bill, AB 77, takes an initial step which requires major regulations with an estimated economic cost impact of more than $50 million to be submitted to the Legislature for review and approval prior to enactment. Ensuring greater transparency in the regulation-making process should be embraced by Sacramento lawmakers.
I will not waiver in fighting the harmful policies coming from Sacramento that are affecting businesses and hardworking families in Kern County. As a proactive voice and representative of the 34th Assembly District, I will fight for policies that recognize the importance of Kern County’s industries for this state. I will also fight for policies which support our energy producers. We also produce more than 75% of California’s domestic oil, and are essential to the state’s oil, gas, wind, geothermal, and solar energy production. More importantly, just look at some of the products we use daily that come from petroleum: toothbrushes, shampoo, makeup, sunscreen, laptops, tablets, and bandages, to name a few. A strong energy economy means a strong Kern County economy. Our state’s economy creates an ever-
growing demand for more energy, so it’s common sense to promote policies which recognize our energy and economic realities; and, to reject extreme environmental regulations which undercut our energy producers’ ability to operate and help meet our state’s incredible energy needs. We must focus on improving our state’s business climate so our small businesses can expand and grow. For example, our local small businesses have been threatened with legal action under the California Environmental Quality Act (CEQA), and the Private Attorney General Act (PAGA), which allows trial attorneys to delay critical transportation and water infrastructure projects. I will be leading efforts to curtail these types of abuses. There is much to be done, and I hope you will join us in this fight. We cannot accept the current status quo. Kern County’s quality of life is at risk, and Sacramento needs to see our priorities reflect those of honest and hardworking citizens. Our primary agenda will be to show that there is a better way, and a new direction that will make California a better place for everyday Californians and Kern County. My office and I are here to listen and champion the needs of our constituents. I am proud to call Kern County my home, and I look forward to working together to develop policies which solve real-world problems and help our community prosper. Assemblyman Vince Fong represents the 34th Assembly District and is the Assembly Republican Whip. BAKERSFIELD REALTOR® MAGAZINE
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Are Real Estate Offices a Thing of the Past?
What does the future hold for office square footage?
STEVE MURRAY | REALTRENDS
Traditional real estate brokerage offices have undergone changes over the past 20 years. For one thing, the average number of agents per office has increased by 35.6 percent since 1997 and 6.4 percent since 2011. There are more offices with more than 100 agents and several that have more than 200—a development not envisioned 20 years ago.
Some Things Haven’t Changed Most real estate offices remain in high-traffic retail-like locations. Most still average more than 100 square feet of space per agent. Even though most brokerage firms admit that agents spend little time in the traditional office; fewer use them at all. With mobile technology, it would not appear that this trend will change. One other thing that hasn’t changed much is that occupancy costs still average about 20 percent of all brokerage expenses exceeded only by employment cost as a major cost area.
EXP Realty A newer entry into brokerage, EXP Realty, has taken this to what they consider the
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logical conclusion—no formal company offices at all. Calling themselves the “agentowner cloud brokerage,” EXP offers no office space whatsoever, leaving it up to the agent or team to decide whether it wants office space outside of a home office. The firm is now in 41 states and Canada, has about 2,400 agents and teams signed up and reports strong growth across the country. According to the firm’s CEO and General Counsel Russ Cafano, the firm offers traditional brokerage services such as sales meetings, brainstorming sessions, transactional assistance and other services through a centralized, cloud-based system. “Based on our growth, there are many agents and teams who don’t see the need to underwrite the cost of office space anymore,” says Cafano. “Agents and teams may desire to have offices to work out of, but only when they make their choice about space, locations and amenities. They can access anything they need through our cloud or mobile access to property data, transaction management, CRM and other resources. Having an office just isn’t that important anymore.”
There are a growing number of firms that are de-emphasizing the use of office space without eliminating it. Among leaders in this area are firms such as Realty One Group, HomeSmart, and even some large, traditional firms where private or semi-private offices are now seen as an a la carte option for agents, when, in the past, these were automatically provided as part of the package a brokerage would offer its agents.
Brokerage Models As the market continues to produce a wider variety of brokerage models, we think that Cafano is likely right. There will be a growing number of teams and agents who don’t see paying for office space a given when they have mobile access to virtually everything (except direct personal human contact). Experience shows that this is not for everyone and likely most agents will continue to want an office to call home. A culture of contact in a brokerage office will continue to appeal to a segment of the agent community. This article reprinted with the permission of Real Trends Inc. Copyright 2017
Beginning January 1, 2017
New Code of Ethics Requirements COE training outside of the Bakersfield Association of REALTORS®, it is the responsibility of each individual REALTOR® to provide a Certificate of Completion to the local board. NAR’s online COE training will take care of the notification to the local board.
contribution by
JOE NEWTON
T
he last NAR Quadrennial Ethics requirement ended on December 31, 2016, and now the new cycle is going from 4 years to 2 years.
4
This means that the next cycle for all REALTORS® will include 2.5 hours of the NAR Code of Ethics by December 31, 2018. If you successfully completed this
Failure to meet the requirement for the current period and subsequent periods will result in suspension of membership for the first two months (January and February) of the year, following the end of the period or until the requirement is met, whichever occurs sooner. On March 1st of that year, the membership of a member still suspended as of that date will be automatically terminated, including MLS privileges.
requirement since January 1, 2013, then you have satisfied the REALTOR® Code of Ethics’ training requirement for the last 4-year cycle.
JOE NEWTON Ombudsman
Originating in January 1, 2001, and successive 4-year periods thereafter, each
course for existing members without CE state license renewal credit.
REALTOR® was required to complete
2
the mandatory Code of Ethics training at least once during each 4-year period. This had been established by NAR’s Board of Directors to: heighten member create an awareness of and appreciation of the role the Code can and should play in their professional lives; enhance professionalism and competency; and, encourage REALTORS® to view their COE as a living, viable guide in their daily
3
dealings with clients, customers, and the public. This is a nationwide requirement mandated by NAR. Below are some questions and understanding the COE requirement.
Can I complete the COE training online? Yes, NAR offers a FREE online
SEPTEMBER - DECEMBER 2016 n
317 calls were received by our Ombudsman
78 calls were grievance/ethics complaints against agents that were resolved n
5 grievance/ethics packages were mailed to complaining parties regarding cases that could not be resolved n
4 Arbritraiion packages were mailed to complaining parties regarding cases that could not be resolved n
125 calls requesting information on real estate procedures
2 calls were arbitration complaints against an agent which were resolved
n
0 Violations of public trust cases reported
n
n
n
Are there other methods available for completing NAR COE training?
Yes, through other Boards/Associations, NAR-approved courses which meet the learning objectives and minimum criteria established by NAR, and may include home study, correspondence and classroom training. If you choose
answers which should assist members in
OMBUDSMAN REPORT
Does my real estate license renewal course satisfy this requirement?
No, however, a new “with continuing education” online REALTORS® Code of Ethics training course ($29.95) offers a highly-engaging, interactive experience, plus an estimated 3 credit hours of continuing education. California (along with many other states) accepts this in fulfillment of continuing education for license renewal.
awareness of the key tenets of the COE;
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What happens if a NAR member doesn’t comply with NAR’s COE training?
76 calls requesting information on deposits
For more information, please call Joe Newton at 661-303-8275 or Cindy Kiser at 661-635-2315.
n1
anonymous call
0 calls were complaints against a non association member n
n
17 cases referred to Association mediation
n
1 Kern River Lake Isabella call
n
8 Tehachapi calls
n
1049 Year-to-date total BAKERSFIELD REALTOR® MAGAZINE
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Determining which Tech Products to Implement
Don’t fall prey to the shiny penny. Instead, carefully vet new technologies and monitor results before committing
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PAUL SALLEY |REAL TRENDS
rying to keep up with the latest and greatest in digital marketing technologies and platforms is almost impossible. Many marketers fall victim to the shiny penny syndrome—always looking for the next best thing when seeking technology solutions. Don’t make this mistake. It’s a dangerous way to approach your marketing strategy as it will never allow a single marketing effort the ability to prove, or disprove, its efficacy at producing leads and growing your bottom line. Of course, there are times when the next best thing is the answer you’re seeking. How do you decipher what will work for your business and what is merely
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just another shiny penny? The key is to commit resources to a specific platform for a set amount of time and monitor the results. During the A/B testing phase of a platform, consider the following to maximize the return on your investment: Allocate a specific dollar amount to the platform.
1 2 3
Select a similar audience across all platforms being tested.
If possible, test each platform during similar business cycles for the same amount of time.
4
Ensure that accurate tracking and reporting of campaign performance is available.
Once you narrow down which marketing platform consistently delivers a positive performance, use it to its fullest. To maximize marketing performance, refresh ads and rotate the target audience. This will ensure optimal performance and prevent maximizing the exposure and wearing out a specific campaign. By consolidating your marketing dollars on a select number of ad platforms that you have proven to be effective rather than spreading your budget too thin, your business will have the ability to thrive. This article reprinted with the permission of Real Trends Inc. Copyright 2017
YPN legislative day contribution by
SCOTT KNOEB
2017 YPN Chair Frontier Real Estate Services, Inc.
About YPN The Young Professionals Network is a group of REALTOR® members who stay informed and involved through networking, not only with other young professionals, but with leaders in the community. As up-and-coming leaders, they are the future of our industry. Young professionals aren’t defined by age, but by mindset. A group of members who are interested in enhancing the future of our community by giving, participating and influencing those around them, through camaraderie in building a solid network that will last a lifetime. They work hard, have fun, are technologically savvy, and get involved in our industry and community.
Legislative Day The Young Professionals Network is proud and excited to be a part of the 2017 C.A.R. Legislative Day in Sacramento. As REALTORS® and members of the REALTOR® Party, this is the most important event of the year. REALTORS® are the strongest voice in the country in protecting
About Scott Knoeb n Owner/REALTOR®,
Frontier Real Estate Services, Inc. n 2017
Vice Chair, California Association of REALTORS® Expo Committee n 2016-2018
Director, Bakersfield Association of REALTORS® n 2016-2018
Director, Bakersfield Association of REALTORS® Charitable Foundation n Technology
Day on May 2nd, scholarships are available for first time attendees, who contribute $148 to the REALTORS® Action Fund, the true cost of doing business. Scholarships include a bus ride to and from Sacramento; a 1-night stay at a hotel; three events with food; time with our elected officials; and, a ticket into the REALTOR® Action Fund Legislative Day reception. Since my first time going to Legislative Day 4 years ago, I can honestly say that I have a huge respect for the REALTOR® Action Fund and the efforts by other REALTORS® for our industry. Get on board the Legislative bus for Sacramento. Join the YPN and many other REALTORS® across the state at this year’s Legislative Day!
Committee Member
n 2017
YPN Committee Chair
n 2017
Vice Chair, Ronald McDonalds House
n 2017
Vice Chair, REALTOR® Governmental Review
private property rights and our industry. That is why YPN Advisory Members take the pledge to go each year, and we want to inspire you to go as well! While all of our members are invited and encouraged to attend Legislative BAKERSFIELD REALTOR® MAGAZINE
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Creating a High-Five Culture
Here’s why you should consider hiring those who aspire to be the best
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LARRY KENDALL | CHAIRMAN OF THE GROUP, INC.
he average annual household income in the United States is $56,516. For the top 5 percent of households, it’s $159,619 and for the 1 percenters, it’s $380,354. In our company, we are only interested in hiring associates who aspire to be 5 percenters or better. We call them High Fivers, and we have a system to help them get there. Our associates averaged $221,485 in Gross Commission Income (GCI) in 2016. How do you build a High-Five Culture? Simple. Hire sales associates who aspire to be 5 percenters and coach them to success. Here are our observations of the Top 10 attributes and activities of these top agents:
1. Mindset Players versus Victims. Look for associates with a growth mindset who believe they can figure this business out and be successful if they work hard enough. See Dr. Carol Dweck’s book: Mindset: The New Psychology of Success.
2. Hungry Success takes effort. Hire associates who hunger to succeed and the work ethic to get there. What is their motivation? What is their why?
3. Character Hire likable people who tell the truth and do what they say. These character attributes are the keys for them to be a trusted advisor rather than just a salesperson.
4. Empathy Having the social skills to pick up on the subtle nuances and the feelings of another was the key attribute of the top 10 percent of sales associates, according to a study by Franklin-Covey.
5. Flow Flow fixes everything. We are in a contact sport. High Fivers are in flow (face-to-face or voice-to-voice) with at least 50 people a
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week. For some of them, it’s 50 a day! They use technology but tend NOT to spend a lot of time looking at screens.
6. Database What holds an associate back from flow? Fear of making calls? It could be, but we’ve found another common factor. They don’t have a good database. They can’t make the calls or send the mailings because they don’t have phone numbers, home and email addresses. Help them put together a database or hire a student to help them. A survey of 20,000 Realtors® showed that less than 40 percent had a database (even scraps of paper and business cards in a shoebox counted). Those with even a semblance of a database earned 251 percent more than those without one.
7. Value Proposition High Fivers know how to create value by solving problems and making their clients feel good. They are constantly solving and serving versus selling. They bring real value to their clients and know how to articulate their value proposition.
8. Negotiation A survey by the National Association of Realtors® of home buyers and sellers, rated Negotiation Skills as a key attribute in selecting a real estate professional. Are you practicing negotiation skills in your meetings? Share best practices on the five negotiation points of a real estate contract: Price, Terms, Dates, Inclusions/Exclusions and Contingencies.
9. Focus Dr. Stephen Covey, in his book 7 Habits of Highly Effective People, talks about living in our three circles. Circle One is our circle of concern—everything from politics to celebrities to football scores. Circle Two is our circle of
influence—clients, friends, kids, business. Circle Three is our circle of control—our mindset, behavior and daily activities. High Fivers focus on their circles of control and influence. The 95 percenters tend to focus on their Circle of Concern and live their lives worrying about everything over which they have no control. This is also the focus of the victim. Players focus on their circles of control and influence.
10. Reference Group Harvard Professor Dr. David McClelland found that “Eighty percent of a person’s success can be attributed to their reference group (peers, role models, mentors).” His research supports the adage “Birds of a feather flock together.” What kind of a flock are you creating at your company? Are you focusing on High Fivers? Focus on these 10 attributes and activities of High Fivers, and you will build a High Five Company. Just as importantly, you’ll build a High-Five Culture. Remember what management scientist Peter Drucker once said, “Culture eats strategy for lunch.” This article reprinted with the permission of Real Trends Inc. Copyright 2017
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
MIKE GEORGE
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
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
BAKERSFIELD REALTOR® MAGAZINE
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midge
B A K ER S F I E L D ASSOC I ATI ON O F RE A LTO RS ®
2017 PRESIDENT
JIMERSON
PHOTOS: ABBYS PHOTOGRAPHY (661) 342-4945
INAUGURAL CELEBRATION PARTNERS A special thank you to our Inaugural Partners: Coldwell Banker Preferred Agape Mortgage, Boydstun Realty Co., Inc., Keller Williams Realty 18
BAKERSFIELD REALTOR® MAGAZINE
MIDGE JIMERSON
INAUGURAL CELEBRATION
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Women’s Council of REALTORS®
New President, Michele Cooper Leads Local Chapter
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he Women’s Council of REALTORS® is a nationwide organization of 12,000 real estate professionals, both women and men, who are some of the best and brightest in the business. The purpose of the Women’s Council of REALTORS® – California is to support local Network excellence in serving the members; develop strong leaders for the Council, the profession and the community; and, support the Mission and Vision of the Women’s Council of REALTORS®. Currently the Women’s Council of REALTORS® is the 12th largest U.S. women’s professional organization and has one of the most successful communication networks in the National Association of REALTORS® family. State chapters include real estate professionals who support the objective of the Women’s Council, and
also interested in serving the industry, the community and fellow REALTORS®. Bakersfield is an ever-changing marketplace with low inventory, frustrated buyers and multiple offers. The value of
networking and knowing your fellow REALTOR® is vital to getting offers accepted and completing a successful transaction. The Women’s Council of REALTORS® is a dynamic, accessible network, linking resources and member expertise to drive business success. Women’s Council identifies, builds, supports and promotes its members to grow strong leaders for the real estate industry and the broader community. The Women’s Council of REALTORS® luncheons will be held every 3rd Thursday of each month at Stockdale Country Club from 11:30am - 1pm. Mark your calendars and join us every month for a dynamic time of networking, linking resources and supporting one another. For more information, contact Michele Cooper at mcooper@sjvalleymortgage.com or call her at 661.900.2358.
One of the Hottest Property Markets in the World New Zealand’s largest city has an average house price of over $500,000 USD. Have prices gone too far? PETER GILMOUR | REAL TRENDS
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,
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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 Real Trends Inc. Copyright 2017
Specialized Training for Our
Local Leadership Academy
T
he The Bakersfield Association of REALTORS® has just launched its own Leadership Academy. This specialized training will give attendees a chance to experience and understand the rewards of serving the REALTOR® community, and also identify those whose talent and commitment will set the tone for the future of our Association. Sheri Anthes, Chair, will be spearheading this year’s Leadership Academy. She states, “We believe our future is to be even brighter than our past, and we are excited at the prospect of engaging the Leaders of tomorrow. It happens often, when given the opportunity to shine, that untapped talent emerges. This is why the NAR Leadership Academy was created in 2008. As a volunteer leader, a 1-year term doesn’t allow for on-thejob training. NAR’s Leadership Academy puts volunteer leaders on the path to mastering the intricacies of the National Association that will prepare them for success”. Sheri mentions that a Leadership role is accepted as a volunteer, the commitment level and passion are a unique dynamic. Vince Lombardi believed Leaders are made, they are not born. They are made through hard effort, which is the price all of us must pay to achieve any goal that is worthwhile. As a compliment to that approach is the statement made by John F. Kennedy
who believed leadership and learning are indispensable to each other: “We are excited and confident this will be a career and life-changing experience for anyone interested in delving deeper into the challenging and rewarding role of Leadership”. Sheri has included the following brief outline which shows the intent of our Leadership Academy: n To develop service-minded REALTORS® who seek to be Leaders in our Industry. n To identify REALTORS® who have demonstrated leadership potential and an interest in the REALTOR® organization, its history, and goals. n To improve leadership competence and cultivate the potential of future leaders. n To develop practical application and
increase understanding of leadership roles within the Association. n To develop the skills needed to have a positive impact on your community. n Citizenship: Recognize that effective democracy involves individual responsibility, as well as individual rights. n Code of Ethics: Better understand the REALTOR® Code and how it differentiates us from other organizations. Develop the characteristics of an ethical leader. Participants will focus on trustworthiness, fairness, responsibility, respect, care, and citizenship. n To motivate participants by increasing their awareness of real estate and association management issues and challenges, and involving them in problem-solving activities on issues of current interest. n To gain a deeper understanding of the tripartite method of Governance through NAR, C.A.R., and the Bakersfield Association of REALTORS®. n And much, much more. The talent pool is endless; those who complete the program are assured of personal growth and a deeper understanding of what it means to be a REALTOR®. It is our hope to create a well-prepared group of individuals who desire to share their resources and talent for the betterment of our local Association and the Industry as a whole. It promises to be an exciting year! BAKERSFIELD REALTOR® MAGAZINE
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Productivity
The Secret to Being More Profitable WARREN DOW | LONE WOLF REAL ESTATE
H
ow often do we hear how busy peoples’ lives are? Whether it’s a question about how someone’s weekend was or how their work day is going, we hear busy and are supposed to assume it’s a good thing. Maybe I missed the memo, but I am not sure when we started to value how little time we have. I look around our industry and I see a lot of hard working, talented professionals. The ones that are leading this industry are those who aren’t keeping busy but are staying productive. Our clients, our colleagues and our brokers don’t care how busy we are – it’s all about the bottom line. How many contracts did you get signed? How many closed deals? Did you get the top dollar for your client? How much money did you make? We don’t get perfect attendance awards anymore. We don’t get a pat on the back for working 16 hour days. We get rewarded for results. Our goal should be to get the same job done in a more efficient way whenever possible. No client wants to hear how busy you’ve been. They want to know whether you’re doing your job. Productivity requires systems. It requires prioritization. Technology has brought about a wave of services, software and applications that can automate the tasks that used to keep us busy. Whether that’s prospecting through SEO and lead generation tools, marketing tools for emails and lead followup, document management and electronic signature for contracts, or accounting software to automatically cut checks and track the business of your business, all of these tools can save us time. Maybe it’s only 10 minutes per deal, or maybe it’s five hours that you would have spent manually following up or processing information at the close of a deal. It all adds up. Each tool you use can save you, your team and your staff time. After implementing, these systems will add hours of time back into your day. What would you do with an extra two hours a day? We need to re-train ourselves. It’s not about how we got the job done; it’s about getting it done. We live in a world of
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technology. This means we live in a world of analytics and data. We should use these numbers to measure ourselves, measure our agents or employees and as a value proposition when speaking to prospective clients. Numbers don’t lie. Find the software that will give you the reporting you need. The numbers and metrics to see how your business is doing. Once you see the numbers, you’ll be able to start seeing where you stand out. It may not be the highest volume or most transactions, but once you see the data, you’ll be able to see where you stand out from everyone else. Technology will not replace a REALTOR® but a REALTOR® with technology will replace one without. It’s just a matter of how much more time will be available on a given day. Finding the right software can be challenging. Maybe it’s a question of cost or functionality, of implementing the change with your team or staff. My suggestion – find someone you trust and ask what they’re using. Ask for advice. Join a product demo for software that was of interest to you. The more receptive you are to adopting tools to save you time, the more time you’ll have to
focus on your real business: relationships. This means more time to focus on networking, lead generation, sales, and even community engagement or volunteer work. Or, dare I say, your life! The next time someone asks how your day was, make sure to think twice before saying “busy.” We need to value the time we have, the time we spend and the time we save. Having more time in your day doesn’t mean you don’t work hard. It shows that you can get the job done in less time and gives you the freedom to invest that time into strategies that can make you even more profitable! About the Author: Warren Dow is the Director of Channel Marketing at Lone Wolf Real Estate Technologies and a principle contributor to the Real Estate Technology Institute. With a degree in behavioral neuroscience and a background in technology, consumer engagement, and marketing strategy, Warren offers a unique perspective which has placed him on the national stage for NAR, WCR, NAHREP, NAREB, as well as with many other regional, state and local associations and conferences throughout North America. This article reprinted with the permission of Real Trends Inc. Copyright 2017
Residential Property Management
Attracting Capital STEVE MURRAY | REALTRENDS PUBLISHER
There are an estimated 22 to 24 million, one- to four-family units in the United States that are owned by investors who are renting to families. This represents a huge housing segment that remains served mainly by smallto medium-sized locally owned and operated property management firms. While there are a few national franchise organizations that have built large national scale, there are now few national firms that seek to own and operate a nationally scaled residential property management business.
Property Management Trends Renters Warehouse, a relatively new company based in Minneapolis, has set its sights on building a national residential property management business where the company will own and operate the business. Originally started as a franchise business, the firm switched its sights on owning and operating its businesses going forward. Some strong franchises in its systems remain, but the
company is focused on buying and growing its presence. According to Anthony Cazazian, the firm’s chief investment officer, “Our goal is to be in 60 markets managing 200,000 properties within the next five years.” Cazazian said that the firm is also pursuing growth through a related unit called Residential Portfolio Services that will focus on larger, more institutional owners of residential property managers and owners of large portfolios of residential for rent properties.
Centralized Services “This is a large, fragmented market where we think the investment of capital and centralized services can create economies of scale for a company like ours. While there are thousands of residential property management firms, there are only a few that have achieved a size commensurate with the market size,” says Cazazian. “We think this is a great opportunity to apply capital and centralized service
techniques. Such services as rent collections and accounting, repair and maintenance and vendor management can be done more effectively and efficiently for the benefit of both the owners of these properties and the tenants as well.” While it is likely that most single-family rentals are owned by individuals who own a couple of properties and manage them directly, there has been strong growth in those who own five or more units and are turning to professional property management firms who require professional management services. A growing number of brokerage firms have either entered the business recently or are seriously considering an entry. Those who have such businesses report to REAL Trends that once a certain level of properties under management has been achieved, the business is both a profitable one and provides additional brokerage opportunities for crossselling services. This article reprinted with the permission of Real Trends Inc. Copyright 2017
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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 March 1st: Lunch and Learn - Social Media n April 15: YPN Softball Tournament n April 27th - Legislative Day Orientation
3rd: Legislative Day in Sacramento n June 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 n May
The Life of an Icon
Stan Redmond, June 14, 1929 – January 19, 2017 William Stanley Norman Redmond was born in Dallas, TX on June 14, 1929 - Stan moved from Dallas to Colorado Springs, CO where he had his first job as a Disc Jockey. He moved around as a disc jockey from Colorado to Tennessee back to Dallas and eventually to Chicago. He enlisted in the Army to fight in the Korean war. He fought for 18 months and received
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multiple medals for his bravery in battle. After the war he studied Japanese at the Army language school in Monterrey, CA. He later moved to Syracuse, NY where he met his wife Janice. They then moved West so that Stan could continue his career as a News Anchor; first in Phoenix, AZ, then in Salinas, CA, then, finally, to Bakersfield, California. After his career in broadcasting he launched a new career in Real Estate, joining our Association in 1973 with Harris Realty. He was a Real Estate Broker, Real Estate Appraiser, and enhanced his career by earning his GRI and CRS designations. He eventually was appointed to be the Kern County Probate Referee, a position in which he served for 39 years. He was a devoted member of and Lector for the St. Francis Parish. He was a 4th degree Knight of Columbus and served in the Kiwanis Club of Bakersfield for over 25 years. His life was characterized by his devotion to Family, Faith, Country and Community. The legacy of his courage, strength and love lives on through his 9 children, 25 grandchildren and 13 greatgrandchildren.
Strong Tech, High Service ®
Lessons remembered—learn from leaders where tomorrow’s opportunities and threats lie STEVE MURRAY |PUBLISHER, REAL TRENDS
“To compete today, you must have a commitment to a high level of service to your staff and your agents. Further, having a strong technology platform is a must,” says Matt Widdows, CEO and founder of HomeSmart. Based in Phoenix, Ariz., with franchises in 19 states and around 11,000 agents, HomeSmart has grown steadily since its founding nearly 16 years ago. After many years in a successful software sales career in other industries, Widdows saw an opportunity to focus on building a business that brought both a lower-cost alternative for real estate sales associates, yet aimed for high quality in the office environment and a state-of-theart technology platform where agents and staff could transact their business. “At the heart of what we built is a cloud-based technology system that can do it all. Also,
we provide centralized reception, transaction management, compliance systems and support, all at a low cost.”
can also back them with an easier way to do business then everyone benefits.
Low Cost and High Service
One of the largest challenges Widdow’s business faces is the non-stop investment in his firm’s tech platform. “There is no stopping place for investing in your platform,” he says. “It’s a never-ending process of continual refinement and improvement especially when you’re designing all of it yourself.” In the end, this constant improvement and investment is well worth it when profits and efficiencies increase.
Widdows says that just being low cost is not enough. “To grow consistently, you must have an agent services mentality that focuses on a high-quality service deliver. From my view, it doesn’t matter what your cost structure looks like, but it does matter that you can take care of your agents. And, if the service platform provides a superior experience, their customers will notice and become comfortable with that platform as well,” he says. According to Widdows, “We think that our platform will become a reason consumers want to do business with our agents.” He added that, of course, having great agents is the first step in this process but when you
It’s a new year,
Challenges
This article reprinted with the permission of Real Trends Inc. Copyright 2017
®
it’s a new look
Launching soon… new website redesign full of content and resources for everyone It’s the start of a new year and we’ve given our website a face-lift. Rather than two separate websites – one for the public and one for our members – we have one site with a special sign-in specifically for members. It’s a new look with lots of relevant content for the consumer, with exciting imagery, videos and links to MLS listings. That’s just for the consumer. We also have lots of extra tools for our members, with links to resourceful websites like C.A.R., NAR, and realtor.com – all to help make your job easier. We are still working on the finishing touches, but take a sneak peek. Visit our website today and let us what you think. We’re always looking for suggestions regarding content. Yes, we have that too! A suggestion box just for you. We do read them… your voice is important to us. You can also send your suggestions to Jamey Lyster at jamey@ bakersfieldrealtor.org. We’re here to serve you! If you’re interested in advertising on our website, contact Carol Duran at 661-635-2307 for advertising rates.
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Membership Benefits How to get the most out of your dues… With your commitment to our Association, we offer various REALTOR® benefits tailored just for you. EDUCATION Educational programs, products and services to enhance your knowledge and skills for greater success in your real estate business. Many are offered at no cost or at a reduced rate for members; including, classes, seminars and hands-on user workshops covering relevant, up-to-date topics and technologies for the real estate industry. REALTOR® designation classes are also offered. ZIPFORMS® C.A.R. develops new standard real estate forms in response to legislative and court decisions. Each form is carefully reviewed by experienced REALTORS® and real estate attorneys, available online through zipForms®. ADVOCACY EFFORTS AT NATIONAL, STATE AND LOCAL LEVELS OF GOVERNMENT n Your dues support REALTOR® offices in both Sacramento and Washington, D.C. who review thousands of bills on all government levels. n Our Government Affairs Director lobbies our local government agencies on issues that protect the real estate industry and private property rights. LEGAL SERVICES An exclusive member service, C.A.R. Legal “Hotline” responds to legal inquiries from REALTORS®. You have free access to this service with your dues investment. OMBUDSMAN SERVICES As a REALTOR®, you have access to our
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BAKERSFIELD REALTOR® MAGAZINE
Association’s Ombudsman who provides counsel, advice and education to REALTORS® and members of the public on our professional standards, monetary disputes prior to arbitration, as well as formal arbitration and Code of Ethics complaint policies and procedures. LEGAL Q&As Available to members is a full range of legal opinions pertinent to the real estate industry. Developed by C.A.R.’s attorneys and available online at www.car.org. ETHICS & PROFESSIONAL STANDARDS REALTOR® Code of Ethics is designed to instill the highest standards of professionalism in the industry and elevate the image of REALTORS® in our community. MLS AND TECHNICAL SUPPORT Our MLS manager provides support and training on MLS issues relative to recent developments and trends. COMMUNITY REALTOR® IMAGE A public relations program aimed at serving the community and elevating the REALTOR® image through fundraisers for local charities and advertising in various publications. realtor.com® PROFILE A realtor.com® marketing profile for you at no additional cost. Claim yours today at www.goo.gl/A01Zul REAL ESTATE STORE A convenient location to purchase many of the supplies you need for your business. Prices are discounted for members, and charges can be conveniently made to your Association account.
C.A.R. MAGAZINE Published by the California Association of REALTORS®, C.A.R. Magazine brings you important information on industry trends and new techniques geared towards success. REALTOR® MAGAZINE Published by the National Association of REALTORS® and delivered to its members, REALTOR® Magazine is filled with news and information designed to provide insights on how to be successful in the current complex marketplace. BAKERSFIELD REALTOR® MAGAZINE Published by the Bakersfield Association of REALTORS® and available to its members, Bakersfield REALTOR® Magazine is filled with news and local information designed to provide insights on how to be successful in our local market. FAIR HOUSING PARTNERSHIP Implementation of the “Fair Housing Partnership” between HUD and REALTORS® available to members, facilitating their qualification to participate in HUD sales and demonstrating a commitment to fair housing practices. GROUP INSURANCE As a REALTOR® member, C.A.R. offers a wide array of group insurance plans, including errors and omissions insurance, with flexible premiums and discounts. MEMBERSHIP DISCOUNTS Available at participating retailers through the group buying power of the NAR and C.A.R. LOCAL STAFF SUPPORT Professionals serving professionals. Our professional staff is here to support you and your business.
OCTOBER 2016
Welcome, New Members!
SUCCESS
Your journey as a REALTOR速 has just begun in making a positive impact in the lives of families in our community
Caneel Aguilar, Century 21 Tobias Real Estate; Anastasia Alavezos, Keller Williams Realty; Abraham Barrera, Majestic Palm Realty; Jose Berlanga, Keller Williams Realty; Demetruis Cooper, Karpe Real Estate Center; Brian Elliott, RE/MAX Golden Empire; Nicole Gomez, Search Kern.com - Miramar International, Riverwalk; John Gomez, Keller Williams Realty; Dylan Gould, Coldwell Banker Preferred Ming; Kelly Hedgecock, Coldwell Banker Preferred, Ming; Tyler Holland, Coldwell Banker Preferred, Ming; Katherine Legault, Citywide Property Management; Timothy Lewy, Westwind Realty Company; Michelle Lidgett, Century 21 Tobias Real Estate; Manual Martinez, Infinity Real Estate Group - Miramar International, Truxtun; Wayne Morris, Keller Williams Realty; Taimi Parris, Premier Realty; Navjit Sangha, Hero Real Estate, Inc.; Melissa Shapiro, Keller Williams Realty; Balmeet Singh, Keller Williams Realty; Dennis Stitt, Stratton Davis Realty; Steve Strelich, Westwind Realty Company; Lori Suburu, Platinum Real Estate Group; Janet Watson, Ritehomes.com Realty Group; Manuel Zaragoza, Bahena Real Estate Group
NOVEMBER 2016
new realtors 速 october 2016
Anastasia Alavezos, Keller Williams Realty; Lexus Alexander, Keller Williams Realty; Lanette Ferrari, RE/MAX Golden Empire; Adrian Garcia, Performance Realtors, Inc.; John Gomez, Keller Williams Realty; Juanita Gutierre, Miramar International, Downtown; Aaron Hynds, Brian Hicks Real Estate Group; Celestina Jones, RE/MAX Golden Empire; Satinder Kaur, AnyAndAllReal Estate, Inc.; Edwyna Sue Lawrence, Century 21 Tobias Real Estate; Vincent Earl Link, Keller Williams Realty; Marietta Marie Miller, Coldwell Banker Preferred, Ming; Ruben Mojarro, Keller Williams Realty; Kim Northrup, Keller Williams Realty; Samuel Pachenco, Keller Williams Realty; Christian Patrick, Landstone Realty Advisors, Inc.; Armando Pena Jr., Keller Williams Realty; Windi Portenga, Brian Hicks Real Estate Group; Juan A Razo Vazquez, Miramar International, Truxtun; Edward Reyes, Scott Rivera Real Estate Team, Inc.; Zachary Brian Ruff, Miramar International, Downtown; Michelle SchaefferMontijo, Century 21 Tobias Real Estate; Ashley Torres, Keller Williams Realty
DECEMBER 2016 new realtors 速 november 2016
new realtors 速 december 2016
Eric R. Behler, Keller Williams Realty; Walter A. Benitez, Keller Williams Realty; Carmen Bigjani, Keller Williams Realty; Surinder Brar, Coldwell Banker Preferred, Ming; Annemarie Braun, Miramar International, Riverwalk; Jay Burrows, Keller Williams Realty; Kyle Carter, Kyle Carter, Broker; Habib Bobby Chalhoub, Watson Realty ERA; Lorraine L. Dorotheo, Keller Williams Realty; Luis G. Escamilla, Better Homes Realty; Michelle S. Frost, Platinum Real Estate, Inc.; Joseph B. Hanawalt, Keller Williams Realty; Svetlana Kanbarova, Miramar International; Kristine King, Coldwell Banker Preferred, Coffee; Kyle J. Korman, Premier Realty; Alfredo Lopez Jr, Coldwell Banker Preferred, Ming; Beverly D. Lundy, Keller Williams Realty; Martin D. Lundy, Keller Williams Realty; Elizabeth A. Mebane, Miramar International, Downtown; Jennifer N. Miller, Keller Williams Realty; Vanessa Orellana, Platinum Real Estate, Inc.; John B. Reece, Keller Williams Realty; Eliza L. Reyes, Chaddick Williams Realty; Tiana J. Richard, Coldwell Banker Preferred, Ming; Anthony R. Rios, Miramar International; Wyatt C. Salinas, Magic Real Estate; Shelley Schmitt, Keller Williams Realty; Artie T. Swayne, Magic Real Estate; Fernando Tello Delgadillo, Karpe Real Estate Center; Misako Yano, Keller Williams Realty
We offer many advertising opportunities, including our new website design…
Advertise Today and Hit Your Target Market! Start marketing and promoting your company today with the Bakersfield Association of REALTORS®.
The Association has over 2,000 REALTOR® and Affiliate members. We offer many ways for you to actively communicate your company’s brand and marketing message directly to our members. Every week we host a variety of activities, classes, and events. Reach your target market in effective and affordable ways. Consider one of our many opportunities. SPONSORSHIP OPPORTUNITIES: PRICES RANGE PER ACTIVITY n e-Newsletter
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FOR ADVERTISING INFORMATION OR AD SIZES, PLEASE CONTACT: Carol Duran at 635-2307. Communications Design and Development.
MEMBER RATES CONNECTIONS NEWSLETTER Eblast: Member Newsletter
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661-635-2307
Your Professional Resource… we’re here for you!
Jamey Lyster
Manager of Information Technology (IT) MLS Services
Claudia Bugarin Professional Standards Administrator
Cindy Kiser
Manager of Education and Professional Development
Ginger Edwards Controller-Office Administrator
Carol Duran
Communications Design & Development
Bakersfield Association of REALTORS® Staff can be reached at 661.635.2300
Linda Curutchague Member Services Manager
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BAKERSFIELD REALTOR® MAGAZINE
Elissa Valdovinos Member Services Speciialist
Galene Boschman Administrative Suport Specialist
Kim Schaefer Government Affairs Director
Movers Not Moving Quickly
The percentage of Americans moving over a one-year period down
T
he percentage of Americans moving over a one-year period fell to an all-time low in the United States to 11.2 percent in 2016, according to tables recently released by the U.S. Census Bureau. “People in the United States are still moving, just not to the same extent as they did in the past,” said David Ihrke, a survey statistician in the Journey-to-Work and Migration Statistics Branch. “The decision to move can be personal and contextual. What causes one person to move might not be enough to convince another.”
Why People Move Among those who moved, 42.2 percent said they moved for a housing-related reason, such as wanting a new or better home or apartment. In comparison, 27.4 percent said they moved for a family-related reason, 20.2 percent said they moved for an employmentrelated reason, and 10.2 percent said they moved for some other reason. Among regions, the South saw the greatest number of people moving out (901,000), but also saw the largest inflow of people moving into the region (940,000). The inflows and outflows of the region are not statistically different from each other. The highest mover rates by race were for the black or African-American alone population (13.8 percent) and the Asian alone population (13.4 percent). These two mover rates were not statistically different. The white alone population moved at a rate of 10.3 percent.
The Hispanic or Latino population (12.6 percent) were more mobile than the nonHispanic white population (9.8 percent).
Population Studies Treasure Trove The statistics released come from Geographical Mobility: 2015 to 2016, a collection of national- and regional-level tables from the Current Population Survey Annual Social and Economic Supplement. The tables describe the movement of people in the United States, including the type of move, reason for moving and characteristics of those who moved during the past year. Distance moved is also available for people who moved to a different county or state. Also released today were updated historical tables and graphs on migration with some statistics extending as far back as 1948. Also available are 2015 American Community Survey state-to-state and place of birth flow and 2010-2014 American Community Survey county-to-county and metro-to-metro flow statistics. The county-to-county and metro-to-metro migration flow tables, which use data collected between 2010 and 2014, show how many residents move (or flow) from one county or metro area to another over a one-year period. Among the 2015 American Community Survey state-to-state and place of birth flows: n New York had 69,289 migrants to Florida, and California had 65,546 migrants to Texas. The state flows are not statistically different from each other.
n Over
1.5 million people living in Florida were born in New York. This was the largest flow between the state of birth and state of current residence followed by over 0.9 million people who were born in New York living in New Jersey. Highlights from the migration flows from the 2010-2014 American Community Survey: n Approximately
16.9 million people moved annually to a different county, and nearly another 1.9 million people moved to the United States from abroad. n The
two largest county migration flows were Los Angeles County to Orange County in California with 41,558 movers and Los Angeles County to San Bernardino County in California with 39,865 movers. The two largest county-to-county flows do not differ statistically from each other. n Among
metro areas, in California, the Los Angeles-Long Beach-Anaheim metro area had 87,565 movers go to the Riverside-San Bernardino-Ontario metro area. In addition to new data tables, the Census Flows Mapper tool now includes statistics from the 2010-2014 American Community Survey to show demographic statistics on the mover’s relationship to the householder, household type and housing tenure. Also, the 2010-2014 migration flow statistics are available through the Census Application Program Interface. This article reprinted with the permission of Real Trends Inc. Copyright 2017
BAKERSFIELD REALTOR® MAGAZINE
29
state of the
HOUSING MARKET NOVEMBER 2016 All Areas November
DECEMBER 2016
November2016
2016 2015
November2016 Active Active November 1,891
2016 2015 1,891 2,033
Contingent Active Pending Contingent
Contingent Active Pending Contingent
256 1,891 1,029 256
256 289 1,891 2,033 1,029 1,029 256 289
All Areas
% Year over Year % 2015 Year over Year December December 2016 Change Change % Year over Year % 2015 Year over Year December 2016 2,033 -7.0% Active December Active -7.0% 1,758 Change Change 289 -11.4% 2,033 -7.0% 1,029 0.0% 289 -11.4%
Sold 604 500 Sold 604 500 20.8% Pending 1,029 1,029 Pending 1,029 1,029 0.0% Total Volume Closed $139,971,674 $115,284,431 Total Volume Closed $139,971,674 $115,284,431 21.4% Sold 604 500 Sold 604 500 20.8% Median Price * $222,000 $210,000 Median Sales Closed Price Volume * Sales $222,000 $210,000 $115,284,431 5.7% Total Closed $139,971,674 Total Volume $139,971,674 $115,284,431 21.4% Average DOM Median * 49* Average DOM Price *$222,000 4951 51-3.9% $222,000 $210,000 Median Sales Price * Sales $210,000 5.7% DOM * Average DOM Average *
49
4951
51-3.9%
Bakersfield Sold
November2016
2015 2016
November Sold
November2016 492
2016 2015 428 492
2016 2015 1,758 1,897
Pending Contingent
223 1,758 927 223
223 274 1,758 1,897 927 1,046 223 274
% Year over Year% Year over Year 2015 Change Change % Year over Year% Year over Year 2015 1,897 Change -7.3% -7.3% Change
274 1,897 -18.6% -7.3% 1,046 274 -11.4% -18.6% 20.8% Sold 578 602 578 602 0.0% Sold Pending 927 1,046 -4.0% Pending 927 1,046 -11.4% 21.4% Total Volume Closed $129,246,230 $133,356,112 Total Volume Closed $129,246,230 $133,356,112 20.8%Sold Sold 578 602 -3.1% 578 602 -4.0% 5.7% Median Median Sales Price * $218,000 $212,000 Sales Closed Price $218,000 $212,000 $133,356,112 21.4% Total*Volume Closed $129,246,230 2.8% Total Volume $129,246,230 $133,356,112 -3.1% DOM * 48 -3.9% Average DOM$218,000 * 47 * 47 48 5.7% Average Median Price $218,000 $212,000 -2.1% Median Sales Price * Sales $212,000 2.8% -3.9% Average DOM *Average DOM * 47 47 48 48 -2.1% Contingent Active
% Year over Year % Year over Year December 2015 Change Change % Year over Year % Year over Year 2015 15.0% 428 15.0%Sold December Sold Change Change
Total $98,917,965 15.3% Total Closed $114,020,292 $98,917,965 Sold Volume$114,020,292 492 428 Sold Volume Closed 492 428 15.0% Median Sales Closed Price Volume * Sales $225,250 $219,000 $98,917,965 2.9% Median Price * $225,250 $219,000 Total Closed $114,020,292 Total Volume $114,020,292 $98,917,965 15.3% Average DOM Average * 47* DOM Price *$225,250 4749 49-4.1% Median Sales Price * Sales $219,000 2.9% Median $225,250 $219,000
* Single Family*Only Single Family Only
-11.4% -7.0% Contingent Active 0.0% Pending -11.4% Contingent
2016 2015
-18.6% -7.3% -11.4% -18.6% -4.0% -11.4% -3.1% -4.0% 2.8% -3.1% -2.1% 2.8% -2.1%
Bakersfield
November
*Average FiguresDOM from Average Single Family * DOMHomes * 47 Only. Statistics were run on February 1, 2017. * Single Family*Only Single Family Only
2015 Compared to 2016 by MLS Area
4749
49-4.1%
2016 December
2015 2016
December 2016 483
2016 2015 533 483
% Year over Year% Year over Year 2015 Change Change % Year over Year% Year over Year 2015 -9.4% 533 -9.4% Change Change
$109,507,227 $120,122,308 -8.8% 15.3%Total Total Closed $109,507,227 $120,122,308 15.0% Sold Volume 483 533 Sold Volume Closed 483 533 -9.4% Sales Closed Price *Volume $220,000 $215,000 $120,122,308 2.3% 2.9% Median Median Sales Price * $220,000 $215,000 15.3% Total Closed $109,507,227 Total Volume $109,507,227 $120,122,308 -8.8%
-8.8% -9.4%
2.3% -8.8% DOM * 46 -4.3% -4.1% Average DOM$220,000 * 44 * 44 46 -4.3% Median Sales Price * Sales $215,000 2.3% 2.9% Average Median Price $220,000 $215,000 2.3% uses*the *Average DOM 44following Zip Codes: 46 93301, 93302, -4.3%93303, 93304, -4.1% Average DOM Bakersfield 44 46 -4.3% 93305, 93306, 93307, 93308, 93309, 93310, 93311, 93312, 93313 93314.
2016 YEAR-OVER-YEAR STATS Area
Dollar Value
# Sold
Average Sold Price*
% of List Price*
DOM*
2016
2015
2016
2015
2016
2015
2016
2015
2016
2015
10
277
259
$46,072,696
$43,999,269
$175,854
$176,667
43
44
96.87
96.68
21
172
172
$17,387,511
$14,869,101
$104,860
$90,354
52
46
97.06
96.32
22
228
197
$36,197,534
$30,407,898
$160,387
$156,110
33
37
98.55
98.33
23
29
21
$7,500,890
$6,974,650
$293,036
$337,483
69
48
96.76
97.01
31
246
270
$35,948,856
$38,455,095
$146,199
$142,547
44
38
97.50
98.64
32
521
513
$90,201,754
$88,265,780
$180,874
$176,873
46
39
97.47
98.21
33
186
214
$41,416,974
$46,478,760
$228,371
$223,031
47
44
98.93
98.63
34
91
79
$27,592,892
$24,609,130
$312,003
$322,202
62
79
97.36
97.84
41
114
159
$15,111,470
$18,221,747
$134,278
$114,863
41
45
98.09
97.79
42
120
104
$20,402,505
$16,736,572
$172,876
$162,374
41
41
96.58
97.52
43
12
5
$1,925,125
$919,999
$160,427
$184,000
31
27
95.83
92.46
51
585
572
$88,779,970
$81,035,713
$156,679
$150,637
36
32
98.43
98.47
52
1427
1399
$294,813,215
$283,997,491
$219,032
$213,442
40
39
98.52
98.59
53
823
711
$262,199,715
$221,477,322
$322,547
$313,720
46
41
97.69
97.87
54
5
22
$2,759,990
$6,915,109
$551,998
$314,323
35
32
99.66
98.56
61
226
201
$59,084,808
$52,964,748
$262,066
$263,864
45
47
98.44
97.90
62
1131
1034
$337,499,653
$299,243,917
$299,122
$290,464
47
45
98.43
98.32
63
462
461
$162,945,604
$164,848,188
$355,578
$361,697
49
49
98.24
98.47
64
19
16
$7,845,700
$7,177,829
$448,100
$448,614
53
50
97.07
98.14
80
147
112
$36,599,775
$28,106,801
$257,972
$258,892
62
73
97.55
97.19
81
14
6
$2,949,000
$1,004,500
$210,643
$166,900
251
166
87.33
95.10
82
19
23
$1,682,109
$2,447,239
$100,416
$109,986
88
56
97.38
97.35
83
42
37
$7,122,085
$5,719,339
$177,256
$157,089
67
75
96.87
95.89
84
17
0
$9,462,300
$0
$597,492
$0
41
0
98.82
0.00
85
11
16
$2,961,000
$4,824,400
$301,875
$354,783
145
99
94.91
91.60
91
62
51
$8,929,540
$6,549,190
$141,797
$129,704
44
26
94.28
97.05
92
9
10
$2,941,000
$3,861,000
$326,778
$386,100
85
135
97.45
95.20
93
1
11
$72,000
$996,800
$72,000
$90,618
64
108
96.64
93.20
94
16
24
$2,770,950
$4,426,001
$200,500
$199,692
45
31
96.89
95.17
95
217
227
$40,427,972
$40,826,005
$186,304
$180,933
47
42
97.89
98.39
96
168
143
$19,522,479
$17,071,820
$114,845
$118,057
62
63
96.94
96.32
98
180
207
$32,834,745
$36,083,432
$182,876
$174,854
44
43
97.09
97.36
99
129
135
$38,750,305
$40,626,877
$311,430
$313,689
45
58
97.12
94.21
2016 QUARTERLY STATS 1st Qtr 2016 New Listings Contingent Pending Sold Total Volume Closed Median Sales Price * Average DOM * Average Sale Price/SqFt *
1st Qtr 2015
2nd Qtr 2016
2nd Qtr 2015
3rd Qtr 2016
3rd Qtr 2015
4th Qtr 2016
4th Qtr 2015
3,109
2,861
3,284
3,394
3,132
3,317
2,176
631
655
892
736
754
643
603
2,414 484
1,985
1,854
2,161
2,170
2,106
2,106
1,657
1,678
1,652
1,510
2,066
2,041
2,138
2,122
1,788
1,739
$366,284,612
$310,182,683
$477,219,660
$457,405,989
$496,689,232
$488,151,137
$405,469,811
$384,664,913
$213,250
$199,000
$220,000
$215,000
$216,500
$219,900
$220,000
$209,175
50
50
44
41
42
39
47
46
132.52
127.40
133.83
131.25
136.87
134.85
134.82
133.63
* Figures from Single Family Homes Only. Statistics were run on February 1, 2017. BAKERSFIELD REALTOR® MAGAZINE
31
What Can 1 Million $
Buy You in Prime Real Estate?
How far will your money go when investing in properties on a global scale? PETER GILMOUR |REAL TRENDS
In the last 15 years, the world has seen an acceleration in the globalization of demand for property for both residential and investment purposes. Many high-networth individuals are looking at new global locations in which to diversify their portfolios and their lifestyles. The release of the 10th edition of the Wealth Report by Knight Frank provides authoritative commentary on the latest global property trends.
London Tops for High-Net-Worth Individuals The report has rated the top 10 most important cities that matter most to highnet-worth individuals, based on where they live, spend their leisure time and grow their businesses. This year London has proved to be the No. 1 city followed by New York. No other city challenges these two when it comes to overall appeal. London’s geographical position means that within a two-hour flight,
32
BAKERSFIELD REALTOR® MAGAZINE
the city is accessible to twice as many highnet-worth individuals than New York, which explains its importance. Singapore has made significant strides to move into third place, with Dubai and Hong Kong rounding off the top five places. Shanghai and Paris have both been in the top 10 cities on a regular basis, but this year Sydney, Beijing and Geneva have risen to top out the 10 most important cities.
Adding to Wealth Portfolios In recent times, the world has experienced a low-interest rate environment which has encouraged individuals to add residential property to their wealth portfolios. Regarding the price performance of the world’s luxury residential markets, the report’s Prime International Residential Index tracks the price changes across a hundred locations. Prime residential markets rose 1.8 percent in 2015 globally, just down from the 2 percent recorded in 2014. Given these changes, how much will the dollar buy in these markets? For the
ninth year, Monaco is the world’s most expensive city to buy residential property with $1 million buying just 185 square feet of accommodation. Monaco is closely followed by Hong Kong and London, which occupy the next two places offering 215 square feet and 239 square feet respectively. New York occupies the fourth position and is the highest-ranked U.S. city where $1 million will buy 293 square feet of accommodation. Los Angeles and Miami are in eleventh and thirteenth places. The only Southern Hemisphere cities in the top 20 are Sydney in the sixth position, São Paulo in the nineteenth position and Cape Town in twentieth position, where $1 million will buy 2745 square feet of accommodation. The trends of globalization and urbanization are likely to continue throughout the world, and price rises are slowing, which will lead to increased cautiousness by investors in the year ahead. This article reprinted with the permission of Real Trends Inc. Copyright 2017
Introducing New Technology We have new resources just for you!
I
on all Listing Detail pages, RatePlug information is also included in specific reports that can be sent to prospects.
GoGEMLS
Realist® from CoreLogic is a robust, localized approach to property-centric data. Realist® seamlessly integrates in-depth property data with market information, community information, maps and market trends. Members can identify marketing areas with dynamic mapping solutions, create selling tools, and export data in reports, labels, lists and more.
t’s going to be a big year for our members as we introduce new technology benefitting you and your real estate business! As technology advances, we continue to move forward to better our real estate industry and your business. Here are just a few of the resources that we’ll be offering soon… GoGEMLS, mobile app enables you to stay organized and sharp on the go. Access listings, Realist® data, saved searches, maps, photos, contacts, and more, right on your tablet or mobile device. Easily share your branded app with clients, and trade texts using Home Assist, share listings, and view favorites in real time.
Realist®
RatePlug The MLS has a new, third-party integration with RatePlug which provides real-time housing payment information within the MLS to help real estate agents and homebuyers more effectively search for affordable properties. The system leverages live lending data from lenders referred by participating agents and brokers; it pulls monthly principal and interest loan payments on multiple loan products and special finance options offered specifically to the properties being searched. It also gathers and displays monthly real estate taxes, insurance, private mortgage insurance (PMI), and association fees to render an accurate estimate of the ‘total’ monthly housing payment for each property viewed. This valuable tool allows homebuyers to understand real affordability before scheduling showings or making offers on homes. The RatePlug data is available in the Public Searches, IDX Searches, Client Portals, and ‘See My Listings’ features, as well as in both the desktop MLS and the mobile Edge MLS. In addition to viewing mortgage information
Data Checker List Data Checker from CoreLogic is an automated, web-based software solution which polices data, Listing Data Checker red flags information discrepancies to keep our database accurate.
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Benchmarking Your Performance How are you doing relative to your peers?
B
SCOTT WRIGHT |REAL TRENDS
usiness owners strive to get a leg up on competition while improving their bottom line. This concept holds true in all industries, but boy does it drive us in real estate. At REAL Trends, we’ve worked with thousands of brokerage firms over the years, and a critical question that nearly always comes to the surface from the savvy owners of these companies is “How are we doing relative to our peers?” This recurring question motivated us to develop a tool, called REAL Trends Benchmark Report, to provide answers. The Benchmark Report is sourced from the financial data we get from our legions of valuation, mergers and acquisitions as well as business-planning clients.
What is a Benchmark?
By definition benchmark, as a noun means “a standard or point of reference against which things may be compared or assessed.” As a verb, benchmark means “evaluate or check by comparison with a standard.” We’ve found that real estate companies love benchmarking their performance against their peers, and our report has developed into a standard that provides them with an excellent point of reference.
Challenges
One of the biggest challenges of running
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a brokerage company is effectively managing operating expenses. Occupancy, advertising/marketing and salaries/payroll are key expense categories that all brokerage companies pay very close attention to, and our benchmark data on these categories can help brokers understand how they scrub up with their peers.
As you can see in the above table, we show where brokerage companies are with these expenses relative to their revenue and gross margin. This particular dataset is a national average from 2014 to current. As an example, of all the brokers we have financial data for (which includes all models from a graduated commission to cappers to fee based), the average firm spends 18.4 percent of gross margin, or 3 percent of revenue, on occupancy-related expenses.
Trim Expenses and Enhance Spending
Benchmarking can be incredibly useful in not only finding areas where you can
trim expenses but where you can enhance spending that would ideally improve profitability. If your firm spends 26.2 percent of gross margin on occupancy-related expenses, then you may need to examine why there’s such a deviation from the norm. If your firm is spending only 18.1 percent of gross margin on salaries/payroll, then you can explore hiring a full-time transaction coordinator to help your sales associates. Our benchmark report includes a myriad of valuable metrics. Above the line, we examine gross margin and percentage retained, and below the line, we look at expense categories like the ones in this table. We also look at agent productivity and break down the data on a per-office basis to normalize the report to fit brokerages of any size. Lastly and equally important to our clients, we segregate our data by region. Brokerage firms in the northeast do business differently than those in the south, so we need to make sure we compare apples to apples. Benchmarking is something that can help all real estate brokerage firms in their quest to build value. If this is something that intrigues you, contact us today to find out about our valuation services which include custom benchmark reporting. This article reprinted with the permission of Real Trends Inc. Copyright 2017
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REALTOR® Magazine Seeks Nominations for
2017 Good Neighbor Awards Do you know a REALTOR® who not only helps people buy and sell houses but also serves the community through volunteer work? The National Association of REALTORS® is currently accepting applications for REALTOR® Magazine’s Good Neighbor Awards from REALTORS® who have made an impact on the world through community service. Five winners will be announced in the November/December issue of REALTOR® Magazine and will receive a $10,000 grant for their nonprofit organizations. The winners will be recognized at the 2017 REALTORS® Conference & Expo in Chicago, receive travel expenses to the conference, and also gain considerable national and local media exposure for their cause. In addition to the winners, five honorable mentions will each receive a $2,500 grant.
C.A.R. Launches New Website Redesign!
If you haven’t seen it yet, check it out The tools you need. Support you want. You’ll find educational materials, marketing tools, training videos, and much more to keep your skills top notch. C.A.R supports REALTORS® in every way possible from discounted products and services, to career-focused programs and more. You’ll also find information on market data, government affairs, legislation, and other industry issues to help you show off your expertise to your clients. See what’s new and available to all C.A.R. members. Visit car.org now!
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Prsrt Std U.S. Postage PAID Bakersfield, CA Permit #70
Bringing Home the Cure
March 30, 2017 International
Purchase your tickets at:
Craft
Motor City Lexus Imbibe Wine and Spirits Merchant n The Bakersfield Association of REALTORS® n n
Tastings
Proceeds benefit
RELAY FOR LIFE ®
(Kern County Cancer Foundation)
FOR MO R E IN FO R MAT IO N C O NTAC T C INDY AT 6 61 - 6 3 5 - 2 31 5 Bakersfield Association of REALTORS® Charitable Foundation, Inc. is recognized as a tax-exempt organization under Section 501(c)(3) of the internal Revenue Code. Contributions are deductible to the extent allowed by law. The amount of a contribution that is deductible for Federal income tax purposes is limited to the excess of the amount paid reduced by the value of any goods or services provided by the organization in return. Retain this receipt and refer to IRS Publication 526 or consult your tax advisor for assistance determining what, if any, portion of your payment may be tax deductible. TAX ID#47-3299859