Realtor Magazine May June 2014 by Bakersfield Association of REALTORS®

M AY / J U N E 2 01 4

INSIDE

Code of Ethics and

Recruiting Agents

Where are your

digital listings? success

Are you wired to

be successful?

forLife Relay

PARTICIPANTS SHOWN ON COVER ARE MANDY MUTH, JULIA SMITH OTIS & SUSAN O’QUINN

work in progress BAKERSFIELD REALTOR® MAGAZINE

A M E R I CA N CA N C E R S O C I E T Y R E L AY FO R L I F E , T R A N S FO R M I N G L I V E S !

MEMBER SOFTBALL TOURNAMENT

and picnic 2014 M

embe

JOIN US ON MAY 31ST AT PATRIOTS PARK

Put a little Spring in your step! Bring your family out to enjoy some sunshine, have a darn good time with family,

friends and peers. REALTORS® and Affiliates are competing for the coveted Softball Tournament Trophy. Come out and cheer on your favorite team and maybe even

witness a few shenanigans from some of our crazier players. There’s something for everyone — games, food and lots of fun! Proceeds benefit the H.E.A.R.T.S. Connection

of Kern County. Registration: 9am Games begin: 10am

FOR MORE INFORMATION:

cody@bakersfieldrealtor.org or 661-635-2300

YO U R GIF T W I L L EN R IC H OU R C OM M U NIT Y A ND ENVIRONM ENT

CALL NOW! Order your tree today

BAKERSFIELD REALTOR® MAGAZINE

661-635-2300 www.bakersfieldrealtor.org

CONTENTS BAKERSFIELD REALTOR ® MAGAZINE

C.A.R. 2014 Advertising Campaign Strength of the campaign lies in the idea that every California REALTOR® is the core of economic growth throughout the state.

11 18

Do You Know Where All Of Your Listings Are Posted? It’s not always good to have your listings promoted on websites that you did not approve. 2014 Bringing Home the Cure Wine Tasting and Auction It was a blast! Check out the photos.

Are We Communicating? One of the biggest challenges facing real estate professionals and their clients is communication.

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

REALTORS® Can Help Their Clients Improve Their Credit Scores Clients with low credit scores or negative credit histories, or who have even defaulted on their mortgage, pose a unique set of challenges.

Welcome Kim Schaefer Our new GAD speaks about important election information. Your vote is your voice!

When to Reduce Your Home Price Six signs may be telling you it’s time to lower your price.

Design for Living How to choose the right flooring and color choices when painting your kitchen.

Congratulations on your wedding day! We wish you many years of happiness!

Gail & Richard Harger March 15, 2014

BAKERSFIELD REALTOR® MAGAZINE

LETTER FROM THE PRESIDENT

Keep Calm! Act. Invest.

VOTE.

KEEP CALM! ACT. INVEST. VOTE.

hese were the words proudly displayed across the stage at our 2014 Legislative Day in Sacramento! They were our marching orders as we converged upon Capitol Hill to meet with our elected officials! What do these words mean you might ask? Well let’s dissect them one by one! ACT - This means we need to get involved! Past President Petijohn once said, “Get into politics or get out of Real Estate!” It is a known fact that part of our mission as REALTORS® is to help protect the property rights of individuals. Those individuals are not only our customers and clients, but they are also you and me. We must ensure that our voice is heard by our elected officials on those issues critical to home ownership and the protection of private property rights. It is our calling and pledge as REALTORS®. INVEST - The true cost of doing business for us as REALTORS® is a mere $148! Do you realize what that amount has made you in commissions over the past few years? If we did not have our C.A.R.’s Government Affairs Team fighting for our rights and our clients’ rights, we would have made considerably less! Once a month they will be publishing a Homeowner Legislative Fact, a compilation of articles about laws and legislation that you and your clients will find valuable. You can access these articles by going to www.car.org/ governmentaffairs/HLF. Tap into RESOURCES provided by C.A.R. and NAR to enhance your business. VOTE - Yes I said VOTE! We can shout out our

BAKERSFIELD REALTOR® MAGAZINE

position on critical issues from the rooftops, but as Americans if we do not exercise our Right to Vote, then it is all in vain! So please, go register. Plus, it is so easy to vote by mail. Voter registration cards are available at the Association office, or contact Kim Schaefer for additional assistance. These are your marching orders as a REALTOR® and your civic duty as an American! As you all know, we have so much to accomplish, for the fight is never ending. We are an elite Association! We are a force to be reckoned with as our politicians and government officials have come to know and respect. We need to hear your voice in our own Association as well. You will soon be receiving your ballots for the 2015 Election of Officers and Directors, so please make time to cast your votes! Your voice and opinion is valuable to our Association; therefore, make a difference by casting your VOTE! CHANGE YOUR WORDS! CHANGE YOUR WORLD!

FIRST QUARTER HAPPENINGS: It is amazing that the first quarter of 2014 has zoomed by so quickly! We have accomplished so much in such a short period of time. Let’s reflect on some of the highlights! Harvest Committee had their Casino Night raising $4,500 in support of the Gleaners! What an amazing evening was had by all. Gambling, dancing, great food and all for a worthy cause! Thank you to our Chair Shari George and her awesome committee for the outstanding work they did to make this event so fabulous! Relay for Life held their second annual Auction and Wine Tasting event, raising over

$47,000 for our Relay Team “Bringing Home the Cure”! Raising this amount placed us third out of over 300 teams for a second year in a row! Kudos to Judy Camp, our Chair; Susan O’Quinn, her Vice Chair, and their amazing committee! You all rocked the house again this year! We have had several TUG and Educational classes that have benefited our members. Robert Brand spoke to a full house on Risk Management. His unique sense of humor made this normally dull subject come alive, which helps since it is a topic that is critical to protecting ourselves and our clients. Please take advantage of these classes; they are usually free and so informative. Our first Woolgrowers Luncheon for 2014 was a huge success! Networking and socializing always gives us a reason to get together to enjoy each other’s company! WCR Hoedown was a night filled with twostepping and great music! Kelly Sarratt and her band made you want to kick up your heels & dance the night away! As always, WCR’s events are fantastic and everyone enjoys participating. Thank you President Lisa Belt and your committee for all your hard work and dedication! OH MYLANTA! We have been a busy Association! The charities we have helped and the community involvement in which we have engaged in will only continue as the year progresses. I am going to put forth a challenge again that you get involved by either attending an event, joining a committee or tapping into the political arena! You owe it to yourself and your clients, as well as your career! MAKE A DIFFERENCE! Change Your Words! Change Your World!

Korean War Memorial

Tomb of the Unknown Soldier at Arlington Cemetery World War II Memorial

FREEDOM IS NOT FREE …

uring the month of May, President Theresa Olson, our NAR Director Jeanne Radsick, and REALTOR® members Scott Tobias and Derek Sprague and I attended the NAR Mid-Year Legislative Conference and Meetings in our Nation’s Capital. What an amazing privilege to experience firsthand its grandeur and an awe-inspiring display of the rich and honored legacy of our great nation. One could easily spend days taking in the many museums, monuments and memorials paying homage to various individuals, groups and events that played a significant role in our history. Understanding the full breadth of the sacrifices made and the price paid to provide us with the freedoms we enjoy today can literally render an individual speechless and emotionally overwhelmed. While each has its own beauty and significance, three memorials are particularly moving: the Tomb of the Unknown Soldier at Arlington

2014 OFFICERS President Theresa Olson RE/MAX Magic

Vice President Bill Redmond Watson Realty ERA

President-Elect Sheri Anthes Coldwell Banker, Preferred — Ming

Secretary/Treasurer Midge Jimerson Boydstun Realty Co. Inc.

LETTER FROM THE CEO

Cemetery, the Korean War Memorial, and the World War II Memorial. The still and solemn beauty of Arlington Cemetery bears a silent, yet profound tribute to the men

Immediate Past President David Knoeb Frontier Real Estate Services Chief Executive Officer - Linda Jay

and women who served our country, who freely laid down their lives… a debt that can never be repaid. The Korean War Memorial bears an inscription which reads: “Freedom is not free… ” The World War II Memorial bears the inscription: “They fought together as brothers-in-arms. They died together and now they sleep side by side. To them we have a solemn obligation”. — Admiral Chester W. Nimitz The message is so clear: Let us never forget the tremendous price that has been paid. We indeed have a solemn obligation to persevere and continue the good fight to protect the very freedoms for which we have been graced. Are you doing your part? Be informed. Become engaged. Vote! This is our Country. It is your Country. If you are not currently registered to vote, please make it a point to do so today!

2014 DIRECTORS Athena Collup Miramar International – Marketplace Pam Epps EPCO & Associates John Garone, Jr. Coldwell Banker Preferred - Westwind

David Gay Scott Tobias Real Estate

Wayland Louie RE/MAX Golden Empire

Jacob Marquez Miramar International – Marketplace

Kevin Palla Watson Realty ERA

Derek Sprague Sprague Real Estate Group

BAKERSFIELD REALTOR® MAGAZINE

C.A.R.’s 2014 Advertising Campaign Every California REALTOR® is at the core of economic growth

C.A.R.’s 2014 consumer advertising campaign launched April 4th, and builds on the successful theme, “California REALTORS®. Champions of Home.” The strength of the campaign lies in the idea that every California REALTOR® is at the core of economic growth throughout the state. The goal of the campaign is to continue to create awareness of the REALTOR® brand and to demonstrate the many benefits of the Consumer / REALTOR® relationship.

Digital components include further unique ways to engage California consumers. Ads geo-targeted to California across NBCTV affiliated sites (NBCLosAngeles.com, NBCBayArea.com, NBCSanDiego.com and KCRA.com) will blanket the state with C.A.R. messages. Consumers will also have the chance to win a $10,000 furniture makeover courtesy of NBC, promoted on the NBC-TV affiliated sites and through banner ads.

TELEVISION AND RADIO:

Finally, social media will be used to tactically energize members, engage consumers, and create a surround-sound experience that encourages sharing messaging tied to C.A.R. Outreach efforts include collaboration with Clever Girl bloggers (network of 6,500 digital influences reaching 130 million monthly impressions), Pinterest storyboards with Maps to highlight local California neighborhood hangouts, and a new Instagram program. There will also be a new microsite where REALTORS® can create and share their own “Dos and Don’ts” for staging and selling homes. This user-generated content, called REALTOR® REALTALK, will be shareable through social media and increase C.A.R.’s social presence, while at the same time provide members with a great looking, customizable piece of social content to share with friends, associates, and prospects. Vision commercials will air exclusively on NBC television stations in four core markets (Los Angeles, San Francisco, San Diego and Sacramento) from April 4 to July 17, across targeted morning, day-time, evening, and late-night programming. There also is a new partnership with HGTV this year, and commercials will run from April 4 to May 25 across the same four markets.

SOCIAL MEDIA:

To help spread our message, C.A.R. has partnered with two media giants, NBC and Clear Channel Radio, ensuring that our message will be seen or heard more than 86 million times across the state. Specifically: More than 1,488 TV spots will air across four top California markets, including Sacramento, San Francisco, Los Angeles, and San Diego. These 30 and 15 second television ads will be seen on one of America’s top television networks, NBC; stations in LA/SF/SD/Sacramento; as well as on HGTV during some of their most noteworthy programming. Over 1,300 radio spots will air in those four key markets as well. C.A.R. has secured a market-penetrating format to deliver our message through radio ads. Working with Clear Channel, radio spots will dominate Friday evening commutes. Hear the spots at www.goo.gl/BfQHFL, varying in length from :05 DJ reads to :15 and :60 spots, and learn more about the radio buy.

ONLINE: A geo-targeted search campaign will run consistent with terms related to home buying, selling, moving advice, and branded C.A.R. terms. Contextual web banners placed on

Your Clients Could Win a $10,000 Furniture Makeover

As part of the 2014 consumer advertising campaign, C.A.R. is offering a $10,000 furniture makeover BAKERSFIELD Courtesy REALTOR MAGAZINE sweepstakes. of NBC, one 6 ®

CAMPAIGN HIGHLIGHTS:

n Over

1,500 TV spots on HGTV and NBC, with more than 55 million TV impressions over 14 weeks n 1,344 radio spots over 16 weeks n 17 million online impressions over 14 weeks n Friday drive-time domination in four key radio markets n Online banners on REALTOR.com® and local news sites such as NBCLosAngeles.com, NBCBayArea. com, NBCSanDiego.com and KCRA.com (including expanded display and video banners) n A robust social media plan, which includes a collaboration with Clever Girls Blog Network, a social content generator site REALTOR® REALTALK n An updated microsite: www.championsofhome.com

REALTOR.com® and mobile sites will deliver 17 million online impressions and direct consumers to the campaign’s microsite, www.championsofhome.com. random winner will receive a $10,000 check to purchase new furniture and other home furnishings. To enter the sweepstakes, visit www. championsofhomesweeps.com The sweepstakes closes on Monday, June 9, 2014. Official rules for the sweepstakes can be found at www.championsofhomesweeps.com

Are We Communicating

Top Producer® Makes It Easy to Communicate and Close With Clients

BY: SUZANNE ROY | REALTOR.COM

ccording to a recent survey of California homebuyers, one of the biggest challenges facing real estate professionals and their clients is communication. We all know past clients are a great source of repeat and referral business, so why is it that many real estate agents find it difficult to stay in touch after the transaction? We know communication is key and yet the survey* shows that the main dissatisfactions consumers have with their agents are slow response time and ineffective/inefficient or undesirable communication methods. How would your clients rate your communication? As an agent, your relationships with your sellers are a fundamental part of your business. Communication needs differ dramatically depending on your client’s home buying cycle. But one thing remains the same and that is the necessity to manage and track all communication and touch points for future reference. Quick access to past communications, documents or other notes will ensure that you and your team can respond quickly to your client inquiries or

requests. How many prospects, active buyers and sellers, and past clients do you manage throughout the year? Keeping track of changing needs, email threads and important documents for your clients is something that doesn’t need to be difficult. With Top Producer® CRM, all important details and communications are quickly accessible from your computer, tablet or mobile phone – meaning you will never be stuck saying, “Let me get back to you when I am back in the office,” or “I will have to look for that email and get back to you.” Continuous and frequent communication with an ever-growing network of past clients and your sphere of influence can be

Slow response

82%

Ineffective/inefficient communication

48%

Undesirable communication methods

43%

Not aggressive in negotiation

47%

Showed homes unlikely to buy

a daunting task, however. Who should you connect with today, this week, this month? Ad hoc approaches leave many contacts with little-to-no contact. For many agents, not having a structured approach leads to doing nothing, or contact paralysis. If this sounds familiar to you, it may be time to automate and simplify your follow-up with Top Producer® CRM. Top Producer® CRM suggests which five of your contacts you should follow up with on a daily basis and what action you need to take, making your follow-up feel like a breeze. Top Producer® CRM creates a personal interaction with past clients and your sphere that drives engagement to a closing with personal and intelligent communication. To learn more about Top Producer visit http://www. topproducer.com/follow-up-coach/ * SOURCES: 2013 Survey of California Home Buyers — 1,400 telephone interviews conducted in April 2013. PAA Research — Led by founder & CEO Bradley Safalow, PAA’s independent study surveyed 600 real estate agents with the goal of “…better understand[ing] how [real estate professionals] think about lead generation and their marketing and advertising budgets.”

BAKERSFIELD REALTOR® MAGAZINE

SUPRA

LOCKBOXES The new iBox BT LE offers more capabilities

iBox BT LE Communicate directly with iPhones, iPads and more More models of smartphones and tablets communicate directly with iBox BT LE than any other Supra key box. No additional hardware is required for most phones, including the newest models of iPhone and iPad. You can check your phone’s compatibility on the Compatible eKEY Device List. iBox BT LE is equipped with the same large key container as the iBox BT, which can hold both gate cards and keys. The shackle is completely removed from the key box for easy handling when placing the iBox BT LE on a property. The iBox BT LE communicates directly with most phones or tablets via infrared (IR), Bluetooth® (BT), and Low-Energy Bluetooth (BT LE) technologies. Please note that iPhone and iPad devices released before

BAKERSFIELD REALTOR® MAGAZINE

Contact Supra

4001 Fairview Industrial Dr SE Salem, OR 97302 Technical Support: (877) 699-6787 or contact the Association at 635-2300 for more information the iPhone 4S require a small adapter to communicate with the iBox BT LE.

eKEY

With eKEY your smartphone is the key Use your smartphone or tablet as your lockbox key. The eKEY application uses your phone’s wireless communications so you can do business anywhere. Choose from many different Android™, BlackBerry®, and

Apple phones and tablets. Two service levels are available: eKEY Basic for common keybox functions, and eKEY Professional which enhances basic capability with business tools such as MLS data stored on your phone (eliminating time-consuming, over-the-air searches), links listings to Google maps, and displays showing details on your phone. eKEY Basic eKEY Basic turns your phone or tablet into a lockbox key. It also enables you to program iBoxes, change shackle codes, and more. eKEY Professional Like eKEY Basic, eKEY Professional turns your phone or tablet into a lockbox key. It also adds many productivity features to your phone or tablet. eKEY Hardware Certain phones require a small adapter or fob to communicate with the standard iBox or iBox BT.

RECRUITING AGENTS

REAL ESTATE

and the REALTOR® code of ethics

would violate ARTICLE 15 of the he REALTORS® CODE OF ETHICS CODE OF ETHICS. This might does not specifically address recruiting include gossiping or badmouthing if activities for real estate brokerage. However, the statements are known to be false or in their efforts to recruit other agents, all misleading. Unflattering statements made REALTORS® are to be truthful in the about a competitor that are true are comments they make about other real not a violation of ARTICLE 15. estate professionals. Even though the CODE OF The foundation for this is in Article ETHICS doesn’t specify restrictions 15, which states: REALTORS® shall related to recruiting salespersons, not knowingly or recklessly make it doesn’t mean that anything goes false or misleading statements about when it comes other real estate professionals, their to recruiting. businesses, or their business practices. Social media, which includes Joe Newton Standard of Practice 15-2 goes customized email marketing that on to say: The obligation to refrain gets your message noticed, is an from making false or misleading statements answer to recruiting–especially in recruiting about other real estate professionals, their younger people getting into the profession. businesses, and their business practices Providing tools for those recruits will help includes the duty to not knowingly or make their careers successful. Continue to recklessly publish, repeat, retransmit, or incubate the recruit to where agents will republish false or misleading statements made come in and say “We’re thinking about by others. This duty applies whether false or joining your company.” misleading statements are repeated in person, The major principle of ethics comes in writing, through technological means (e.g., from the Latin “Primum non nocere” the internet), or by any other means. which means “FIRST, DO NO HARM”. If a REALTOR® makes comments that Nothing is as powerful or as profitable as are not truthful and that individual making the REALTORS® CODE OF ETHICS in those comments knowingly, or reasonably attracting other agents to come to work for should know they are not true, those actions a broker. BY JOE NEWTON, OMBUDSMAN

2014 OMBUDSMAN REPORT (JANUARY - APRIL) 272 calls were received by our Ombudsman n 9 anonymous calls n

13 calls requesting information on deposits n 107 calls were grievance/ethics n

complaints against agents that were resolved n 9 Tehachapi calls

3 grievance/ethics packages mailed out to complaining party n 125 calls requesting n

information on real estate procedures n 4 cases referred to Association mediation

2 calls were complaints against a non-association member n

BAKERSFIELD REALTOR® MAGAZINE

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

THEATEAM

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

Volunteer their time and energy to support the Association’s programs and activities. n

Promote Association activities to other members. n

Contribute raffle items and door prizes, as well as sponsor various programs and special events. n

For all their efforts, A Team Members earn these opportunities: Featured in all issues of Bakersfield REALTOR® Magazine. n

SHERYL GALLION

MONA CIMENTAL

sgallion@ticortitle.com

mcimental@propertyid.com www.propertyid.com

Ticor Title 661.342.7802

Property I.D. 661.220.0159

MICHELE COOPER

Chevron Valley Credit Union 661.900.2358

mcooper@chevronvalleycu.com

Complimentary advertising through The A Team contact list on the Association website. n

Complimentary recognition on the Association Reception TV. n

First opportunity to sponsor key events. If you’re interested in joining The A Team contact Mike George, our Affiliate Chair! n

LISA HOOK

Prospect Mortgage 661.301.5472

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

Mike George, Chair Agape Mortgage

mikegeorge@agapemtgco.com www.agapemtgco.com 661.324.2427

SAM JABUKA

Jabuka Home Inspections 661.664.8629 jabuka@sbcglobal.net

TERRI MAYS

BARBARA WELLS

tmays@firstam.com www.firstamericantitle.com

bwells@sjvalleymortgage.com

First American Home Buyers Protection 661.808.7612

BEN SOELBERG

SMRT Home Inspections 661.747.3337

smrthomeinspections.com ben@smrthomeinspections.com

San Joaquin Valley Mortgage 661.703.2227

ASHLEY WEAVER

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

You can be a part of The A Team too! Call Mike George at 324- 2427 for more information

BAKERSFIELD REALTOR® MAGAZINE

Do You Know

WHERE YOUR LISTINGS ARE? Why You Need to Know Where Your Listings Are Posted

DANIEL CREASAP | NAR

ou might think that promoting your listings on dozens of websites is a good thing, even on sites that you did not approve or even knew existed. If so, consider the story of a real estate agent who discovered one of her listings was located right next to a video link explaining how to buy and sell a property without the services of a real estate broker. What if this same posting was one of your old listings that sold months ago? Or what if a listing ad did not contain information required by state law, such as the broker’s office location or telephone number? Given that your professional reputation can be harmed by online postings, there is more reason than ever for REALTORS® to invoke their legal right to approve all web pages that run their listings. REALTOR® Magazine addressed this issue in a January article entitled, “Questions to Ask Before You

Share.” The following are some questions you should consider with any website BEFORE you authorize posting your listings therein.

WEB PAGE OBSERVATIONS Look how a web page displays content. Is the real estate broker’s identity properly displayed? Is the listing agent identified? Is the listing agent’s contact information included? Do links on the listing display go directly to the broker? Are agents who are not affiliated with the broker advertised on the broker’s listings? Does the posting clearly distinguish between the listing content and advertising placed around it? Is the publisher’s identity readily identifiable on the website?

QUESTIONS FOR ONLINE PUBLISHERS The web page’s publisher should clearly post or be able to answer the following questions as well. Does the publisher accept

information about an individual real estate listing from multiple sources? If so, do they have control over which data sources take precedence? Do they have a process to promptly correct inaccurate listing information? How often do they update the web page, including removal of a listing when a property goes off market? Keeping track of where your listings appear online is an important step in tracking this portion of your marketing communications initiatives. Doing so will ensure your properties are being promoted accurately and are represented in the best possible light on your customers’ behalf. It will also protect the integrity of your reputation and help you maintain the highest standards of ethics and professionalism in everything you do as a REALTOR®.

BAKERSFIELD REALTOR® MAGAZINE

速

Over $25,000 Donated to the Golden Empire Gleaners

REALTORS速 tackle hunger by giving to the Golden Empire Gleaners. This year our Harvest Committee raised over $25,000.

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BAKERSFIELD REALTOR速 MAGAZINE

2014 FHA Limits

Affecting Your Buyers? Solution: 5% down payment with no mortgage insurance

BY ASHLEY WEAVER AND SCOTT BERRY, KARPE MORTGAGE

e all deal with a broad spectrum of buyers who come to us looking to purchase a home. Buyers range from the first-time homebuyer to the investor. These individuals all have one main objective in mind — not using all of their capital. This would make sense because borrowing money is very affordable. Buyers frequently used FHA to finance homes in the past. Yet as of January 2014, the FHA loan limit was lowered to $271,050 from $368,750. FHA made home buying easy in the past with its flexibility ranging from low down payments, gift funds and low credit score requirements. The fact is it allows a buyer to purchase a home with only 3.5% as a down payment. With high unemployment, rising student loan rates and tighter credit standards, first-time home buyers are finding it frustrating when trying to obtain financing. FHA not only lowered their limits, but also increased the monthly mortgage insurance needed when using an FHA loan, which is

ASHLEY WEAVER AND SCOTT BERRY

now tied to the loan for the entire length of the loan. The mortgage insurance will never go away unless you pay it off or the loan is refinanced. What does this mean for our buyers who are looking for financing above the FHA loan limits and do not have 20% to put down? Well, there is a solution! There is a light at the end of the tunnel. Typically when we think conventional, we think 20% down plus closing costs. This can be great for a buyer who has the cash, but what if that buyer doesn’t have 20% down? The solution would be a 5% down payment

with no mortgage insurance. What does this mean to your clients? This means they can still put down a very small amount and not have any mortgage insurance. This increases their buying power so you can go out and show them homes they would have not qualified for with an FHA loan. FHA loans make sense for some people, but with all the changes being made, the more popular and a better economic choice for someone looking for mortgage financing is the 5% with no mortgage insurance route. As REALTORS®, it is important to know what financing options are out there for your clients. The lending industry is changing every day. Today’s mortgage lenders must strive to keep up with all the updated laws and regulations to ensure they are staying in compliance, while offering a variety of loan options to accommodate varying client needs. Check with your mortgage lender on what programs may be available for your clients so you can become better educated on mortgage financing.

BAKERSFIELD REALTOR® MAGAZINE

Are you wired to succeed?

Those who put others first and adopt a giving mind-set most often reap the biggest results in revenue

BY MELISSA DITTMANN TRACEY | NAR

ice guys don’t always finish last. In fact, if you want to climb your way to the top in the business world, the more you give, the more you stand to get, says Adam Grant, best-selling author of Give and Take: A Revolutionary Approach to Success. Grant’s book debunks a common myth in business that in order to get ahead, you have to put your own ambitions first. Instead, Grant’s book reviews countless studies which show the opposite: Those who put others first and adopt a giving mind-set of helping others most often reap the biggest results in revenue and productivity. Indeed, Grant’s book points to research which shows the average salesperson with a “giving” style brought in 68 percent more revenue than salespeople with a “taking” approach – those who put their own ambitions first. However, givers can sometimes give too much time and energy without payoff. Givers can be more effective, says Grant, especially since they tend to ask more questions and learn more about their clients’ interests. “They end up delivering something better suited to what their clients are looking for,” he says. “By putting their clients’ interests first, they build more trust and are taken more seriously when they do make a recommendation. They see more of an increase in referrals and repeat business too.”

BAKERSFIELD REALTOR® MAGAZINE

successs

One of the biggest secrets to maximizing your success comes down to whether you have a “giving” versus “taking” style to your business. — Adam Grant, Best-selling Author

WHAT STYLE ARE YOU? How do you approach customers, colleagues, and others during the majority of your workplace situations? Are you a “giver,” a “taker,” or a “matcher”? Self-assess your style to determine what social orientation you gravitate toward and to be able to identify others’ styles. Grant illustrates the three following social styles: Takers: They tend to prioritize their own interests over others’ interests. They routinely ask others for favors, but rarely reciprocate. While there can be short-term advantages to putting your self-interests first, takers eventually experience relationship costs and tend to burn bridges with others who often feel that they are being taken advantage. Takers can be good fakers, disguising their interests and often taking advantage of those who are givers. But you can often spot takers by the words they use. For example, they tend to use singular pronouns like “I, me, myself, or mine” versus first-person plural pronouns like “we, us, ours.” On social networks, they tend to be more self-promoting in their posts

and tend to boast of a large social network of friends so they have a large crowd to advertise their accomplishments. Givers: They tend to be “other” focused, paying careful attention to what others need from them and act generously with their time, energy, and skills to help others. They will unselfishly offer mentoring, share credit for achievements, or make connections for others. They don’t worry about what’s in it for them. They tend to earn more respect, trust, and prestige from others due to their generosity, but they can often be viewed as “doormats,” are exploited, and may suffer from burnout or lack of productivity by giving too much. Matchers: They strive to preserve an equal balance of giving and getting. They operate on the idea of fairness or “tit for tat.” When they help others, they seek reciprocity. Likewise, when they ask for a favor, they feel like they’ll owe one back. All three styles can achieve success, Grant notes, but givers have been found to be more successful. One reason is that they accumulate crowds of supporters who are rooting for them to get to the top and will even help them get there. FOUR WAYS TO BE MORE OF A GIVER You don’t have to be a Gandhi or Mother Teresa in the workplace to be an effective giver, Grant says. There are many ways to adopt a giving approach, both big and small. Here are a few successful “giver” traits: 1. Offer up the 5-minute favor: Look for ways to do quick favors for others, setting out to “add value,” not just “trade value,” Grant notes. Look for favors you can do for others that will take you 5 minutes or less without expecting anything in return. The “5-minute favor” is a strategy coined by Adam Forrest Rifkin, known as the “giant panda of programming”, who attributes a giving approach to helping him achieve success in business. One of the easiest 5-minute favors is to connect others, such as by reviewing your Continued on page 16

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Commercial & Residential Management Speaker: Alejandro Haiek Founder & CEO of Iron Gates Property Management

Friday, June 20th, 8am BY HOWDY MILLER, TICOR TITLE

Bakersfield Association of REALTORS® Commercial – Investment Committee is semi-proud to announce …our speaker for the month of June! How to manage property in the new age of technology and compromise …what? New technology in the world of property management (means he has a bigger gun?) Another civil engineer graces us with words for the wise? Is that him or us? The last engineer brought his attorney with him! HMMM …this man has more letters after his name than the entire contents of the Greek alphabet! Ladies and gents …please attend this most informative presentation as Mr. Alejandro

Haiek, CEO, CE, REB, CPM, ACOM, IREM, CCAM, CACM, EAKC, and an AA, attempts to reach out and bring us all into the new world of high tech, customer service and specialized knowledge (perhaps a new margarita recipe) as it pertains to property management! Of course I jest! He doesn’t have an AA. He’s a civil engineer for goodness sakes. Alejandro is the CEO and Founder of Iron Gates, no, not those iron gates (Wasco – Shafter – Tehachapi). Iron Gates Real Estate, a firm who specializes in Professional Management of Owners Associations, Commercial Buildings and Residential Properties throughout California. Please check all weapons at the door and be entertained by a serious program on all things Property Management. I don’t know

about you, those two words scare the heck out of me! WHEN: Friday, June 20, 2014 at 8:00 am WHERE: Bakersfield Association of REALTORS®, Bahamas Drive WHY?: We all need knowledge and a coupla laughs in our lives! Breakfast will be served, steak and eggs, at the restaurant of your choice. Juice, coffee and bread products at our meeting! Hope to see you all there, later, HOWDY.

Sponsored by:

Brandi Agneti

BAKERSFIELD REALTOR® MAGAZINE

TIMELINE SALE

Open House

BY: DONA DEZUBE | HOUSELOGIC.COM

n inviting open house can put your home on buyers’ short lists. Get ready for a stress-free open house by starting early and breaking down your TO DO list into manageable chunks. Use this timeline of helpful tips and your house will stand out from the competition on open house day.

Four weeks before the open house:

Line up a contractor to take care of maintenance issues. n De-clutter every room. n Book carpet cleaners a few days before the open house and a house cleaning service for the day before your open house. n

Three weeks before the open house:

Buy fluffy white towels to create a spa-like feel in the bathrooms. n Buy a front door mat to give a good first impression. n

Two weeks before the open house: SUCCESS, Continued from page 14

LinkedIn and Facebook networks and looking for pairs of people from your network to introduce one another, Grant suggests. Or, offer up a recommendation to recognize someone’s accomplishments, such as through a LinkedIn recommendation. 2. Adopt powerless communication: Surprisingly, “powerless communication,” or tentative speech, can be more influential and powerful, Grant says. Tentative speech may project that the speaker lacks confidence or authority. Powerless communication may include hesitations, such as “well,” “you know,” or “um,” or disclaimers like “this may be a bad idea, but ...” Powerless communication may use tag questions, such as “that’s interesting, isn’t it?” This form of communication can look like a form of collaborating and less like you’re telling others what to do. Therefore, it can earn you more respect and influence, Grant says. Asking questions is another form of powerless communication. Grant says powerless communication is actually what

BAKERSFIELD REALTOR® MAGAZINE

Countdown to a Successful

Clean light fixtures, ceiling fans, light switches, and around door knobs. n Power-wash the house, deck, sidewalk, and driveway. n

One week before the open house:

Clean the inside of appliances and de-clutter kitchen cabinets and drawers and the pantry. n Put out the new door mat to break it in. n

Week of the open house:

Buy ready-made cookie dough. Nothing says “home” like the smell of baked cookies. n Clean the windows n Mow the lawn two days prior n

Day before the open house: Put away yard clutter. n Lay fresh logs in the fireplace. n

Day of the open house:

Put checkbooks, kids’ piggybanks, jewelry and other valuables in the trunk of your car. n Set the dining room table for a specialoccasion dinner. In the backyard, uncover the barbeque and set the patio table for a picnic. n

drew him to picking out his real estate agent recently. His agent, he says, was very clear about his expertise and also about what he didn’t know. If he wasn’t an expert on something, he made it clear that he would refer Grant to someone who would know the answer. “He didn’t create a facade that he had all the answers,” Grant says. “He made himself more trustworthy.” 3. Don’t be selfless, but “otherish”: Givers can land at the bottom of the workplace when they adopt a “selfless” style, instead of an “otherish” style, Grant says. With an “otherish” approach, givers don’t just give at their own expense, but they achieve their goals and their clients’ goals at the same time, creating a win-win situation. When their giving is not aligned with their professional or organization goals, givers risk being less productive, a common problem for them, Grant says. “You can’t say yes to every request,” Grant says. The most successful givers are specialists, not generalists. Instead of helping in a lot of

Check any play equipment for spider webs or insect invasions. n Clean the fingerprints off the storm door. n Remove shampoo, soap, toothbrushes, and other personal items from the bathtub, shower, and sinks in all the bathrooms. n Stow away all kitchen countertop appliances. n

One hour before the open house:

Bake the ready-to-bake cookies you bought earlier this week. n Hang the new towels in the bathrooms. n Put a bowl of apples or lemons on the kitchen table or bar counter. n

Fifteen minutes before the open house:

Open all the curtains and blinds and turn on the lights in the house. n Light fireplace logs (if it’s winter). n

DURING THE OPEN HOUSE:

Get out of the house and let your REALTOR® sell it! n

ways, they choose one or two forms of giving in which they are uniquely qualified. Then, their giving becomes efficient and energizing rather than distracting. 4. Ask for help more often: Givers can’t be afraid to ask others for help. In fact, you’ll be creating an opportunity for others to feel valued. Most giving in the workplace comes from direct requests for help, Grant says. So if you want others to be givers, one of the easiest ways is by just asking, Grant says. Ask for a 5-minute favor. Many givers also ask for help by asking assistance in helping someone else. Some businesses have formalized this by creating a “reciprocity ring,” such as creating groups of people who swap requests for help. One of the biggest pitfalls between failed and successful givers are that successful givers tend to be the ones who are able to ask for help. “If you never ask for help, you are depriving other givers in life of being a giver,” Grant says. “You can’t be the only one who gets to give. There can be two sides to giving and receiving.”

Team Bringing Home the Cure

Champions of Hope and Life

Snapshots of some of our members from our Relay Team Bringing Home the Cure

eam Bringing Home the Cure was proud to present its second annual Wine Tasting and Auction Gala in support of the American Cancer Society’s 2014 Relay for Life. This premier event began as a fundraising idea by REALTOR® Greg Holland, whose passion was fueled by his daughter’s battle with cancer at the age of 11… today she is 26. Out of a heart of gratitude, Greg felt this was a way he could give back and continue the fight to find a cure and wipe out cancer. The entire Coldwell Banker Team joined the effort, which resulted in four very successful Wine Tasting Events for their Relay for Life Team’s fundraising efforts. In December of 2012, Susan Ferguson approached 2013 President Elect Theresa Olson with the idea of bringing this event and team under the leadership and direction of the Bakersfield Association of REALTORS® in an effort to engage all of our REALTOR® and Affiliate members to maximize our efforts in this important endeavor.

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

In Loving Memory of Susan Terry Cahan Ferguson

March 29, 1943 — April 3, 2014

In January 2013, the idea was presented to members of the Association. The idea was immediately embraced by a very passionate team who shared a common bond… each of their lives had been touched, either directly or indirectly, by the devastating disease of cancer… and thus, Team Bringing Home the Cure sprang into action. The passion of this team, under the leadership of Theresa Olson and Judy Camp, was such that within 4 months, their dedication and hard work resulted in raising over $71,000, coming in third out of 370 teams for overall funds raised to help save lives, find a cure and becoming champions of hope for all who have been touched by this devastating disease. This year, Team Bringing Home the Cure’s efforts continue… and are as passionate as ever! This year’s goal is to excel last year’s fundraising efforts! Thank you for joining us in our commitment to help save lives by helping people stay well and get well, by finding a cure and fighting back!

OUR FUNDRAISING EFFORTS BROUGHT IN OVER $47,000 FOR THE AMERICAN CANCER SOCIETY BAKERSFIELD REALTOR® MAGAZINE

Wine Tasting & Auction

thank you! 18

BAKERSFIELD REALTOR速 MAGAZINE

TO OUR WINE TASTING & AUCTION SPONSORS

RELAY FOR LIFE

… and to our relay team 19 “Bringing Home the Cure” BAKERSFIELD REALTOR® MAGAZINE

The Law & You: Mold, a Fungus Among Us To reduce liability, seek red flags, then defer to experts.

BY ROBERT BRAND

nquestionably, the disclosure du jour in residential real estate is mold. Toxic mold, as it’s been called, is an increasingly important issue for real estate professionals. There are several reasons: n Modern energy-efficient building practices provide a conducive environment for mold growth. n Public awareness on the topic has grown. n Litigation activity has increased after several recent multimilliondollar judgments. For example, a Texas court Robert Brand awarded a family $32 million from their insurance company for alleged mold exposure. The verdict included payments for property damage, mental anguish, punitive damages, and legal fees. With judgments like that, you can be sure mold lawsuits are here to stay. At the outset, you should understand three key points about mold liability: 1. As a real estate professional, you don’t need to become an expert on mold. 2. Large legal settlements don’t change what you’re responsible for disclosing. 3. Some basic and simple strategies can equip you to address this important issue. Mold, a fungus, is ubiquitous, found everywhere indoors and out. It appears as a woolly growth on damp or decaying organic material. Most of it is harmless. But some varieties, such as the aspergillus and stachybotrus strains, are known to produce potent toxins under certain circumstances.

BAKERSFIELD REALTOR® MAGAZINE

Mold needs two conditions to thrive: moisture, often resulting from leaky roofs, defective plumbing, drainage problems, and high-humidity rooms (such as laundry rooms); and a food source, such as certain types of insulation, wood, and carpeting. Those who suffer from mold exposure complain most often of respiratory problems, skin irritation, and nervous system disorders. Because major mold problems often start with slight indicators, you should be alert to red flags when conducting your visual inspections. The most common telltale signs are staining on walls and ceilings and a musty, mildewy odor. So what do you do when you detect a red flag or find out that red flags have been detected by a home inspector, a pest control company, or a prospective buyer? Federal and state protocols on mold exposure in residential structures range from minimal to nonexistent. Several years ago the California Senate approved the country’s first mold bill, which sets standards for acceptable indoor levels and requires homesellers to disclose mold problems. Buyers often look to third parties in the transaction for toxic mold remediation. Real estate practitioners should be aware that home inspectors and pest control operators are rapidly adding disclaimer language to their reports to control their liability, and homeowners insurance coverage limitations are commonplace. Real estate companies should prepare for the possibility of being held liable for mold problems by buyer clients.

To reduce liability, consider the following points: n During your visual inspections, pay specific attention to stains or discoloration on ceilings and walls, including the baseboard area, to pick up red flags associated with plumbing leaks and drainage problems. n Pay attention to mold or mildew odors. n If you notice any of these signs of potential mold problems, carefully word a written disclosure. Be sure not to offer expert analysis, avoiding terms such as “black mold” or “toxic mold.” Generic descriptions such as “mold type” or “mildew-like” might be used. n Insist that potential buyers have their own, independent home inspections conducted. n Become aware of the licensed experts in your area who are prepared to inspect for mold, and know when to advise (in writing) that potential buyers hire one of those experts. If necessary, recommend that your buyer clients retain a Certified Industrial Hygienist (CIH) or other environmental specialist to provide mold detection and lab analysis services. n As always, avoid recommending a particular vendor; instead, give buyers a list of vendors or simply direct them to the type of service they need and let them choose one themselves. n Consult a lawyer to determine whether a special mold disclosure disclaimer form should be developed and signed by the transaction principals. n Equipped with basic knowledge, and using some simple litigation prevention strategies, you’ll be better prepared to address this disclosure challenge effectively.

AT YOUR FINGERTIPS

TECHNOLOGY FOR REALTORS

Simpson Compares Software Client Relation Management Software is vital to REALTORS®

BY SHERRY S. SIMPSON, TRUTH REALTY

ith the fast pace of a successful real estate business, client relationship management software (or CRMs) are more vital than ever to keep those warm leads on your radar. There is nothing more frustrating than losing touch with a potential seller, only to have your memory jogged when you see their home on the market. There are a myriad of companies offering CRMs – some quite sophisticated. Sherry S. Simpson You can use a standalone CRM program, or a CRM program integrated with a web site, or other variations like companies which use internet marketing to help obtain leads for you. Following are examples of three types of CRMs and their features. Realty Juggler is a standalone CRM. Top Producer is a CRM you can integrate with a web site they help you design, and Market Leader, which besides being a CRM with a designable web site, also does your marketing for leads.

Name

Realty Juggler

Top Producer-NAR

Market Leader

Phone Number

970-672-3467

800-444-8570 ext.8205 425-952-5780

Contact Person

Anyone

James Head

Jeff Lane

Price

$99/Year

$39.95/Mo. CRM

$99/Month

Additional Apps you can add

Auto reminders for closings, birthdays, etc.

Can integrate their web pages with your website

Capture leads with you marketing into your CRM

Cloud based

CMA report tools

Data back up

Direct mail

Drip campaigns

Import and export contacts

Branded news letter

Goal tracking / planning

Google and Outlook sync

Outlook

Market for you and send leads to your CRM

Realtor.com (Fee)

$25.00 /Lead

IDX feed

$19.95/Mo.

Import leads from lead services Instant email lead alerts from your marketing

Marketing library

300+

Hundreds or you create

4000+

MLS software

Monitor client activity on your website

Rental management expenses, admin fees, work orders

Sellers receive link to follow your marketing progress

Sync with Dropbox and Google Drive

Text alerts to your smart phone

Track commissions and Expenses

Track transactions

Website built for you

$34.95/Mo.$99 setup

Works with all operating systems and Mobile devices

BAKERSFIELD REALTOR® MAGAZINE

How

REALTORS

CAN HELP THEIR CLIENTS IMPROVE THEIR

BY NABIL CAPTAN

CREDIT SCORES! Nabil Captan NATIONAL CREDIT SCORING EXPERT

BAKERSFIELD REALTOR® MAGAZINE

hen a legal issue or tax problem arises during a real estate transaction, REALTORS® are required to point their clients in the direction of a lawyer or competent certified public accountant. Clients who have low credit scores, however, pose a challenge. REALTORS® often do not know where to send clients who have negative credit histories or have defaulted on their previous mortgages. Although REALTORS® can offer several options, these options may not adequately meet their clients’ needs. In situations of this kind, REALTORS® sometimes suggest the services of companies which offer to repair credit by correcting credit reports. Problems arise when REALTORS® choose this option because these companies are no strangers to violating the Fair Credit Reporting Act and Federal Trade Commission rules. For example, they may flood the three credit-reporting agencies—TransUnion, Equifax and Experian—with dispute letters challenging the accuracy of all of the negative items listed on their clients’ reports, even though they know that some or all of the items were accurately reported. Or these agencies may try to bully creditors into removing accurately reported public records— such as a tax lien, bankruptcy, judgment, or mortgage default—by taking them to small claims court. Some REALTORS® leave the credit education to lenders. Although they may believe that lenders will help their clients dispute any credit report errors, it will never happen. Lenders are not in the business of credit repair. Lenders are in existence to offer their clients a mortgage loan that has an advantageous interest rate and terms attached. When it comes time to closing the loan, lenders are expected to present the funds for the purchase of the home and nothing more. In reality, the credit report should be corrected and the credit score improved before the client applies for a loan. Credit counselors do offer consumers limited financial help, and some REALTORS® send their clients in that direction. This option is not really the correct solution either because these non-profit agencies are in the business of examining people’s expenses

against their income and determining if a debt management plan can help them reduce or eliminate their debts. This service does not necessarily include providing people with credit education, helping them repair a poor credit record, or improving their overall credit score. After attending numerous workshops and seminars offered by credit counseling agencies, I have found that the counselors are not well informed about what credit scores and credit reports mean. For this reason, it impossible for these agencies to develop programs for their clients that apply to their individual situations. Surprisingly, even financial advisors, certified public accountants, and divorce attorneys are sorely lacking when it comes to offering appropriate credit advice. They are not properly trained to help their clients understand credit profiles. REALTORS® should not send their buyers to these respected professionals if the goal is to help their buyers improve their credit scores. What Should REALTORS® Do? Currently, the American educational system barely addresses the subject of personal finances, and people are forced to discover for themselves the real cost of credit, at times paying a hefty price for this knowledge. It appears that REALTORS® do not have a choice; they must provide many of their clients with an appropriate credit education. REALTORS® need to educate themselves because their clients’ credit reports are an important element in the loan approval process. With time and a little effort, their clients can correct their credit reports and improve their credit scores if they learn from their REALTORS® what constitutes a credit score and what they need to do to raise it. REALTORS® do not need to become experts in credit scoring and credit repair. Instead, all REALTORS® should do is provide their clients with the information needed to do the work themselves. Best of all, the knowledge is free. Clients do not have to part with one penny to improve their credit scores. It is not even necessary for them to purchase their credit reports because they are entitled to receive one free credit report a year from each of the three major credit bureaus. These reports are available from Continued on page 30

Welcome, Kim Schaefer Our new Government Affairs Director

LET YOUR VOICE BE HEARD, JOIN THE

Your Vote is your Voice! BY KIM SCHAEFER, GAD

nother election is quickly

needs to be counted on Election Day!

Kim Schaefer GOVERNMENT AFFAIRS DIRECTOR

ensuring that homeownership is represented in Bakersfield City Council, Kern County Board of Supervisors, Sacramento and Washington, DC. Please make exercising that right a priority! Did you know that there are 36,000 REALTORS® in the State of California that are not registered to vote? The business of politics directly impacts your business. The decisions made by elected officials affect the lives of REALTORS® every day, from the taxes we pay, the roads on which we drive, to the schools our children attend. When REALTORS® vote, elected officials listen. That‘s why it’s important to participate in the political process by exercising your right to vote and choose elected officials who will act on issues important to REALTORS®. REALTORS® cannot afford to ignore what occurs in the halls of government because Real Estate is one of the most regulated industries at the local, state and federal level. The election process allows us to hold those who represent us accountable; every REALTOR® vote

It is important to know that it is necessary to re-register to vote when you change your address, change your name, or whenever Registering to vote is simple! The easiest

the 2014 Gubernatorial Primary

3rd. The REALTOR’S® vote is critical to

IMPORTANT ELECTION INFORMATION

you’d like to change your political party.

approaching. Election Day for

Election will take place on Tuesday, June

COMMITTEE

way to register to vote is online at www. BIO: KIM SCHAEFER, GAD Schaefer, a veteran of California Central Valley public service and political campaigns, has joined the Bakersfield Association of REALTORS® as its Governmental Affairs Director. Kim is an experienced political professional and has extensive knowledge in issues affecting business and agricultural interests. Most recently, she has consulted on a large scale Spanish language media campaign on Central Valley water issues. Kim has served as chief of staff to Kern County Supervisor Leticia Perez. She has been a consultant, campaign manager and district representative for Congressman Jim Costa. In her role as district representative for Congressman Costa, Kim acted as a liaison and worked with city, county and federal officials, chambers of commerce and other key individuals on central issues facing the community. She specializes in media relations, outreach, strategic counsel, legislative affairs, advocacy, political campaigns, communications, coalition building and crisis management. A graduate of California State University, Bakersfield, Kim serves on several boards including the Kern County Veterans Collaborative, Children Joining Children for Success, and the Kern Center for Political Education.

registertovote.ca.gov. Registration forms for voters are available in several places throughout Kern County, such as in Fire Stations, Postal Offices, DMV, and Public Libraries; or, you may request a registration form by mail by contacting the Kern County Elections Office at (661) 868-3590. Vote by Mail: Your time is important and valuable. Another way to make sure your vote counts is to request a Vote by Mail Ballot. Rather than go to the polls to cast a ballot on Election Day, you may request a Vote by Mail Ballot be sent to your home, and then just complete and return it to the Kern County Elections Office. To obtain a Vote by Mail Ballot, you may use the application printed on your Sample Ballot (which you will receive prior to every election), download a Vote by Mail Ballot Request Form from www.co.kern.ca.us, or visit the Kern County Elections Office. Your Vote is Your Voice! Let your voice be heard. DON’T FORGET TO VOTE TUESDAY, JUNE 3, 2014.

BAKERSFIELD REALTOR® MAGAZINE

Arts 2014

Contest THANK YOU TO OUR SPONSORS Donald & Diane Lake n Chevron Valley Credit Union n Western Exterminator n

BAKERSFIELD REALTOR® MAGAZINE

Jim McEwen, Broker

Locator Real Estate Co.

Agape Mortgage

Mechele Monji-Carter

Wayland Louie

The numbers…

Number of entries: 281 Participating Schools: 16 Participating Teachers: 19 Number of Sponsors: 11 Total Monetary Sponsorship: $3,365 Number of Selected Award Recipients: 50

Cheri Romero Tim and Michele Cooper

SPECIAL THANKS TO: Maui Pho – Chicken Rice Bowl Fundraiser n Dollar Dog n

6REASONS TO REDUCE YOUR HOME PRICE

BY: G. M. FILISKO | HOUSELOGIC.COM

hile you’d like to get the best price for your home, consider our six reasons to reduce your home price. Home not selling? This could happen for a number of reasons you can’t control, like a unique home layout or having one of the few homes in the neighborhood without a garage. There is one factor you can control: your home price. These six signs may be telling you it’s time to lower your price.

You’re drawing few lookers.

You get the most interest in your home right after you put it on the market because buyers want to catch a great new home before anybody else takes it. If your real estate agent reports there have been fewer buyers calling about and asking to tour your home than there have been for other homes in your area, it may be a sign buyers think it’s overpriced and are waiting for the price to fall before viewing it.

You’re drawing lots of lookers but have no offers.

If you’ve had 30 sets of potential buyers come through your home and not a single one has made an offer, something is off. What are other agents telling your agent about your home? An overly high price may be discouraging buyers from making an offer.

Your home’s been on the market longer than similar homes.

Ask your real estate agent about the average number of days it takes to sell a home in your market. If the answer is 30 days and you’re pushing 45, your price may be affecting

buyer interest. When a home sits on the market, buyers can begin to wonder if there’s something wrong with it, which can delay a sale even further. At least consider lowering your asking price.

You have a deadline.

If you’ve got to sell soon because of a job transfer or you’ve already purchased another home, it may be necessary to generate buyer interest by dropping your price so your home is a little lower priced than comparable homes in your area. Remember: It’s not how much money you need that determines the sale price of your home, it’s how much money a buyer is willing to spend.

You can’t make upgrades.

Maybe you’re plum out of cash and don’t have the funds to put fresh paint on the walls, clean the carpets, or add curb appeal. But the feedback your agent is reporting from buyers is that your home isn’t as well-appointed as similarly priced homes. When your home has been on the market longer than comparable homes in better condition, it’s time to accept that buyers expect to pay less for a home that doesn’t show as well as others.

The competition has changed.

If weeks go by with no offers, continue to check out the competition. What have comparable homes sold for and what’s still on the market? What new listings have been added since you listed your home for sale? If comparable home sales or new listings show your price is too steep, consider a price reduction. BAKERSFIELD REALTOR® MAGAZINE

Ways to Help You Conserve Water

The water crisis in California is causing homebuyers to look for efficiency When it comes to conserving water, small adjustments can have a big impact.

A typical three-bedroom, single-family home in California uses approximately 174,000 gallons of water a year. With the California water crisis at the forefront, see how conserving water can work to your advantage in selling a home, or just help in the conservation efforts in our state. Know where water is being wasted!

Check for Problem Areas n Verify that your home is leak-free because

many homes have hidden water leaks. Read your water meter before and after a 2-hour period when no water is being used. If the meter does not read exactly the same, there is a leak. n Repair dripping faucets by replacing washers. If your faucet is dripping at the rate of one drop per second, you can expect to waste 2,700 gallons per year which will add to the cost of water and sewer utilities, or strain your septic system. n Check for toilet tank leaks by adding food coloring to the tank. If the toilet is leaking, color will appear within 30

minutes. Check the toilet for worn out, corroded or bent parts. Most replacement parts are inexpensive, readily available and easily installed. (Flush as soon as test is done, since food coloring may stain tank.) n Avoid flushing the toilet unnecessarily. Dispose of tissues, insects and other such waste in the trash rather than the toilet. n Retrofit all wasteful household faucets by installing aerators with flow restrictors. n Consider installing an instant water heater on your kitchen sink so you don’t have to let the water run while it heats up. This will reduce heating costs for your household. n Insulate your water pipes. You’ll get hot water faster, plus avoid wasting water while it heats up. n Never install a water-to-air heat pump or air-conditioning system. Air-to-air models are just as efficient and do not waste water. n Install water softening systems only when necessary. Save water and salt by running the minimum amount of regenerations necessary to maintain water softness. Turn softeners off while on vacation. n Check your pump. If you have a well at your home, listen to see if the pump kicks on and off while the water is not in use. If it does, you have a leak. n If the toilet flush handle frequently sticks in the flush position, letting water run constantly, replace or adjust it. n When adjusting water temperatures, instead of turning water flow up, try turning it down. If the water is too hot or cold, turn the offender down rather than increasing water flow to balance the temperatures.

Saving Water Indoors n Never put water down the

drain when there may be another use for it such as watering a plant

BAKERSFIELD REALTOR® MAGAZINE

or garden, or cleaning. n Take shorter showers. Replace your showerhead with an ultra-low-flow version. Some units are available that allow you to cut off the flow without adjusting the water temperature knobs. n Use the minimum amount of water needed for a bath by closing the drain first and filling the tub only one-third full. Stopper tub before turning on water. The initial burst of cold water can be warmed by adding hot water later. n Don’t let water run while shaving or washing your face. Brush your teeth first while waiting for water to get hot, then wash or shave after filling the basin. n Operate automatic dishwashers and clothes washers only when they are fully loaded or properly set the water level for the size of load you are using. n When washing dishes by hand, fill one sink or basin with soapy water. Quickly rinse under a slow-moving stream from the faucet. n Store drinking water in the refrigerator rather than letting the tap run every time you want a cool glass of water. n Do not use running water to thaw meat or other frozen foods. Defrost food overnight in the refrigerator or by using the defrost setting on your microwave. n Kitchen sink disposals require lots of water to operate properly. Start a compost pile as an alternate method of disposing food waste instead of using a garbage disposal. Garbage disposals can also add 50% to the volume of solids in a septic tank which can lead to malfunctions and maintenance problems.

Saving Water Outdoors n Don’t over water your lawn. As a general

rule, lawns only need watering every 5 to 7 days in the summer and every 10 to 14 days in the winter. A

hearty rain eliminates the need for watering for as long as 2 weeks. Plant it smart with Xeriscape. Xeriscape landscaping is a great way to design, install and maintain both your plantings and irrigation system that will save you time, money and water. For your free copy of “Plant it Smart,” an easy-to-use guide to Xeriscape landscaping, contact your Water Management District. n Water lawns during the early morning hours when temperatures and wind speed are the lowest. This reduces losses from evaporation. n Don’t water your street, driveway or sidewalk. Position your sprinklers so that your water lands on the lawn and shrubs ... not the paved areas. n Install sprinklers that are the most water-efficient for each use. Micro and drip irrigation and soaker hoses are examples of water-efficient methods of irrigation. n Regularly check sprinkler systems and timing devices to be sure they are operating properly. It is now the law that “anyone who purchases and installs an automatic lawn sprinkler system MUST install a rain sensor device or switch which will override the irrigation cycle of the sprinkler system when adequate rainfall has occurred.” n Raise the lawn mower blade at least three inches. A lawn cut higher encourages grass roots to grow deeper, shades the root system and holds soil moisture better than a closelyclipped lawn. n Avoid over fertilizing your lawn. The application of fertilizers increases the need for water. Apply fertilizers that contain slowrelease, water-insoluble forms of nitrogen. n Mulch to retain moisture in the soil. Mulching also helps to control weeds that compete with plants for water. n Plant native and/or drought-tolerant grasses, ground covers, shrubs and trees. Once established, they do not need to be watered as frequently and they usually will survive a dry period without any watering. Group plants together based on similar water needs. n Do not hose down your driveway or sidewalk. Use a broom to clean leaves and other debris from these areas. Using a hose to clean a driveway can waste hundreds

of gallons of water. n Outfit your hose with a shut-off nozzle which can be adjusted down to fine spray so that water flows only as needed. When finished, “Turn it Off” at the faucet instead of at the nozzle to avoid leaks. n Use hose washers between spigots and water hoses to eliminate leaks. n Do not leave sprinklers or hoses unattended. Your garden hoses can pour out 600 gallons or more in only a few hours, so don’t leave the sprinkler running all day. Use a kitchen timer to remind yourself to turn it off. n Consider using a commercial car wash that recycles water. If you wash your own car, park on the grass to do so.

n Avoid the installation of ornamental water

features (such as fountains) unless the water is recycled. Locate where there are mineral losses due to evaporation and wind drift. n If you have a swimming pool, consider a new water-saving pool filter. A single back flushing with a traditional filter uses from 180 to 250 gallons or more of water. Be aware of and follow all water conservation and water shortage rules and restrictions which may be in effect in our area. Try to do one thing each day that will result in a savings of water. Don’t worry if the savings is minimal. Every drop counts. And every person can make a difference. SOURCE: www.americanwater.com

design for living

THE BEST CHOICES FOR KITCHEN FLOORING AND

Four flooring types which make

the most sense for kitchens

goes out of style, giving you a good return on investment if you ever sell your home. Also, if you have an open floor plan, hardwood flooring works well in both kitchens and living areas. It creates a warm and unified look.

HARDWOOD FLOORING IS IDEAL WHEN: n You don’t want your kitchen to look dated over time. n You have an open floor plan. n You seek durability. Hardwood flooring, with its unmatched warmth and visual appeal, is a great choice if you want to create a look that never really

HARDWOOD FLOORING IS ALSO: n Highly durable. It can withstand decades of use. n Low-maintenance. n Moisture-resistant, if you choose a prefinished type. Hardwood flooring is made in two ways: solid wood strips or engineered wood planks. Engineered wood is the better choice for kitchens. It has a veneer of real wood backed

JOHN RIHA | HOUSELOGIC.COM

o many factors play into choosing a kitchen floor: How much do you cook? Is it an open floor plan? What’s the most durable? We’ve taken out the guesswork and chosen four flooring types which make the most sense for kitchens, and we explain why they are ideal.

Most CostEffective Ways to Spend Your Tax Refund REALTORHome MAGAZINE on Your 28 BAKERSFIELD ®

ANGELA COLLEY | REALTOR.COM

If you happen to get a tax refund check from your state government or Uncle Sam, you have a great opportunity to invest it in home improvements and increase the equity in your home. To find those projects that give the most bang for your buck, we checked the 2014 Remodeling Cost vs. Value report, a collaboration between several research teams including

by layers of less expensive plywood. This construction provides dimensional stability which makes the flooring less susceptible to movement caused by changes in humidity and temperature — common in kitchens. VINYL FLOORING IS IDEAL WHEN: n You cook a lot. n You want the easiest-to-maintain floor. n You are on a tight budget. Sheet vinyl belongs to a group of flooring products called resilient flooring, which is the softest flooring option. If you cook a lot, this cushiness makes it easier on your feet while easing muscle fatigue. Also, sheet vinyl is much more forgiving if you (or someone in your family) is a bit of

REALTOR® Magazine and the National Association of REALTORS® which compares the average cost and resale value of 35 popular remodeling projects across 101 American cities. Here are the findings:

Replace the Front Door Adding a sleek-looking, new front door can boost your home’s curb appeal as well as improve its insulation, while

toughening up its security. Buying and installing a new steel entry door costs $1,162 and has a return-on-investment (ROI) of 96.6%.

Add a Deck Deck additions now have the best ROI since 2007. A 16-by-20-foot wood deck addition will run you about $9,540 but will return about 87.4% of its cost after resale. If you already have a

PAINT klutz who tends to drop things. You’ll have less breakage. Plus, sheet vinyl flooring is a snap to clean up; it’s completely waterproof and stain-proof. However, depending on the size and layout of your kitchen, you may have seams. Standard width for vinyl flooring is 12 feet. If your kitchen is wider than that, you’ll definitely have seams, which can let moisture into the subfloor and trap dirt if the flooring isn’t tightly bonded. If the softness of vinyl flooring appeals to you most, you might opt for cushioned vinyl flooring, which is backed with a layer of foam (standard sheet vinyl uses felt backing). Although it sounds good, that extra cushiness makes it hard to create seams that stay tightly bonded over time. You may end up with seams that come apart, letting in moisture and trapping dirt. Sheet vinyl comes in many colors and patterns. Thicker vinyl can feature a textured surface, and some types do an excellent job of mimicking the appearance of ceramic tile and real stone. Textured vinyl is a wise choice because it provides traction. Vinyl can be dangerously slippery when wet. Vinyl flooring also has a wear layer that helps resist scratches and scuff marks; but, it does eventually wear off. The best brands offer guarantees on the wear layer of 10 to15 years, and good quality vinyl should last 20 years. Don’t confuse vinyl with linoleum. While linoleum is a similar product, it is not as durable, nor as soft. Its upside is its ecofriendliness. PORCELAIN TILE IS IDEAL WHEN: n You want the toughest flooring. n You like the look of stone. n You want low maintenance. Porcelain flooring tile, a version of common ceramic tile, is the durability champ. It’s

deck, you could add some extras, such as an outdoor fireplace.

Add a Bed and Bath to Your Attic An extra bedroom can substantially increase your home’s value. While it’s not cheap, turning an attic into a 15-by-15-foot bedroom with a 5-by-7-foot bathroom with shower will cost, on average, about $49,400 — you can expect a

WHY WHITE KITCHENS STAND THE TEST OF TIME

Kitchen fads come and go (RIP avocado and harvest gold), but when it comes to enduring value, the White kitchen is champ. Here’s why… n White Has a Healthy History. White stands the test of time because it’s clean and fresh. n White is Marketable. White appliances have outsold all other colors. n Ditto Cabinets. White regularly tops the list of the most popular kitchen colors. n White Feels Good. Color therapists tout White’s positive vibes — it represents happiness, innocence, and purity. n White Has Inner Beauty. Cabinet doors and trims create shadow details and layers of contrast which give depth and lasting architectural interest. n White is the Ultimate Neutral. Every color looks great paired with White. n White Lets You Be You. Snowy cabinets, countertops, and appliances are the perfect backdrop for your favorite colors. www.houselogic.com

fired at high temperatures that produce an extremely hard, durable, stain-resistant tile impervious to moisture. In fact, porcelain flooring is so tough it can be used outdoors in virtually any climate.

decent ROI of 84%.

Replace the Garage Door Replacing that rickety garage door with a smooth-moving, modernized door is an inexpensive addition with an average cost of about $1,530 and an estimated ROI of 83.7%.

Tweak Your Kitchen Kitchen remodeling is predicted to be the most common renovation that

Like common ceramic tile, porcelain tile comes either unglazed or glazed. The unglazed versions take on the color of their clay mixture, so they have naturally earthy tones. Glazed tiles have a glass-like coating that can be made in virtually any color, and can mimic the look and texture of real stone at a much lower cost than stone. Make sure you choose porcelain tiles certified as slip-resistant by the Americans with Disabilities Act — this designation should be visible on product literature or packing materials. CORK FLOORING IS IDEAL WHEN: n You want an eco-friendly choice. n You want a softer floor than wood or tile. n You want slip-resistance. Cork is made from tree bark that’s harvested every 8 to 10 years; it’s a sustainable material, meaning the bark grows back and can be harvested repeatedly. Countries that produce cork are careful to regulate harvesting to ensure future supplies. Cork has a unique cellular structure that’s waterproof and compressible, which makes it a comfortable, moisture-resistant choice. It comes in 12-inch-by-12-inch tiles and 1-foot-by-3-foot planks, each with a unique grain pattern of swirls and speckles. The surface is naturally textured, which makes it slip-resistant. Unlike other flooring options mentioned, cork floors need to be resealed every 3 to 4 years to help guard against scratches and prevent moisture from entering the seams between tiles. Both natural wax and polyurethane are good sealers for cork. Choose water-based polyurethane that is non-toxic or has low volatile organic compound content to keep it green.

homemakers will decide to make in 2014. However, you don’t need to do a full-blown kitchen redo for a solid investment. Leave the old cabinets but replace the doors and drawers; pop in some new energy-efficient appliances; and install a new, modestly-priced sink. Replace old countertops, touch up the paint and fix cracked flooring. The cost for this type of mid-range remodeling is $18,856, and is estimated to

have an ROI of 82.7%.

Replace Windows Not only can replacing windows earn a solid ROI, you can also cut down on your heating and cooling bills and earn energy tax credits with energy-efficient models. The cost to replace 10 standard windows with insulated wood replacements is about $10,900 BAKERSFIELD REALTOR with a 79.3% ROI.MAGAZINE 29 ®

REALTORS Making a Difference ®

2013 Helicopter Golf Ball Drop fundraiser sponsored Raymond’s wish to communicate

LOCAL BOY GETS WISH Through our Helicopter Golf Ball Drop in 2013, the Bakersfield Association of REALTORS® had the opportunity to give to the Make-A-Wish Foundation and help one of our local kids. Raymond, age 15 with Mitochondrial Disease, whose wish to communicate came true with the help of REALTORS®. Raymond was born with Cerebral Palsy & Mitochondrial Disease. Raymond is completely dependent for all of his needs, is medically fragile, and has had to endure multiple surgeries. He does not have the ability to talk and form words, but he tries to communicate by alerting others around him with noises and facial gestures. Last year, the family was given the chance for Raymond to participate in a trial with a speech generating communication device that uses Eye-Gaze technology. After 5 months of rigorous speech therapy using the system, they found Raymond was learning to utilize the technology for communication. But, the family was devastated when their insurance would not cover the cost of the equipment. That’s when the family told the Make-A-Wish Foundation they knew what Raymond would want for his one true wish: “When we think of what Raymond wishes for, we can say… without a doubt… that Raymond wishes more than anything to be able to communicate with those CAPTAN, Continued from page 22

www.annualcreditreport.com, but clients will need to pay $20 if they wish to obtain their genuine FICO scores from www.myfico.com. To begin educating themselves and their clients, REALTORS® need only visit websites such as www.ftc.gov, www.cfpb.gov, and www. myfico.com for free and truthful information. REALTORS® can be assured that these entities will offer their clients all of the help they need to learn how to better manage and

BAKERSFIELD REALTOR MAGAZINE ®

Photos courtesy of Make-A-Wish Foundation

around him, and the Eye Gaze unit would make that possible.” Raymond’s wish was granted just in time for Christmas. History of the Make-A-Wish Foundation Since 1980, the Make-A-Wish Foundation* has given hope, strength and joy to children with life-threatening conditions and traces its humble beginnings to one boy’s wish to be a Police Officer. Since that time, it has evolved into an organization that grants a child’s wish in the United States and its territories every 40 minutes, with more than 198,012 wishes being granted to date. There are Make-A-Wish Foundation chapters serving all areas of the Purchase your 2014 United States, as Helicopter Golf Ball well as international Drop Ticket now! affiliates spanning Call 635-2300 five continents. Each chapter is responsible for granting wishes to eligible children within its designated geographical area and for raising the funds to fulfill those wishes.

protect their credit reputations. REALTORS® have a duty to ensure that their clients are as knowledgeable about credit scoring and about their credit records they can possibly be – it is the ethical thing to do.

instructor, Center Stage Speaker of Wells Fargo

Nabil Captan is a nationally recognized

for the U.S. Small Business Administration

credit-scoring expert, educator, author and producer. His dedication to financial literacy led him to create and produce The Credit DVD Series in English, Spanish and in Chinese. Nabil is a California Association of REALTORS®

Home mortgage, and also teaches at various community colleges in California. Nabil is a contributor for many online financial services web sites and regular contributor and speaker SBA/SCORE. Nabil was nominated for the SBA’s Financial Service Champion of the Year 2010. He can be reached at nabil@ nabilcaptan.com. ©2013 by Nabil Captan. All Rights Reserved.

Give them a big welcome!

new realtors ® FEBRIARY 2014

Terri Aldrete — Scott Tobias Real Estate, Robert Arthur — Miramar International, Downtown, Victor Bueno — Wilkerson Realty, Maria Bugarin — Alliance Investments Real Estate, Stephanie Burt — RE/MAX Golden Empire, Charles Cline — Miramar International, Larry Dennis — Keller Williams Realty, Martha Espericueta — RE/MAX Golden Empire, John Esquibias — Miramar International, Downtown, Augustine Garcia — Keller Williams Realty, Ruth Gardner — Dean Gardner, Gardner Construction, Amy Amelia Gonzalez — Platinum Real Estate, Inc., Monica Gonzalez — Miramar International, Downtown, Joshua Gregorio — Premier Realty, Angelia Michelle Gutierrez — Scott Tobias Real Estate, Richard Guzman — Richard Guzman, Broker, Steven Hartman — Platinum Real Estate Inc., Maureen Koons — McKinzie Nielsen Real Estate Inc., Gary Langston — Majestic Palm Realty, Michelle Layus — RE/MAX Magic, Daniel Markendorf — Watson Realty ERA, Stacy Rigney — Coldwell Banker Preferred, Coffee, Claudia Sandoval — Guardian Real Estate, Joel Sandoval — South Valley Realty, William Oliver Sill — RE/MAX Magic, Bhalinder Singh Suri — Miramar International, Downtown, Jatinder Singh Toor — Coldwell Banker Preferred, Ming

new realtors ® APRIL 2014

Pedro Arranaga — Alliance Investments Real Estate Group, Ginger Boyd — RE/ MAX Magic, Maria Del Pilar Garcia — Coldwell Banker Preferred – Coffee, Philip Haney — Sunbelt Business Brokers & Advisors, Mohinder Singh Johal — Hero Real Estate, Inc., Olgalidia Jones — McKinzie Nielsen Real Estate Inc., Gregory Lane — Gregory Lane, Broker, Pedro Martinez — RE/MAX Magic, Nydia Martinez — Alliance Investments Real Estate Group, Ralph Prieto — RE/ MAX Magic, Elia Renteria-Negrete — Century 21, Vision Realty, Sara Silvestro — Keller Williams Realty, Surinderpal Singh — Hero Real Estate, Inc., Michael Still — Coldwell Banker Preferred – Westwind, Stephen Walsh — Tholco Real Estate Group

new realtors ® MARCH 2014

Stacey Jane Atchinson — Mission Real Estate, Kimberly Barnett — Miramar International, Laura Delis — Coldwell Banker Preferred, Ming, Bonnie Eakle — Tholco Real Estate Group, Suzanne Elaine Eves — Karpe Real Estate Center, Vickie Gage — Watson Realty ERA, Maria Galvan — Graddy & Co. Real Estate, Jaimee Shawna Graham — Platinum Real Estate Inc., Megan Greenlee — Watson Realty ERA, Ivan Harlander — Century 21 Vision Realty, Eunice Herring — RE eBrokers, Leanne McCracken — Coldwell Banker Preferred, Westwind, Amy Mitchell — Tobias Real Estate, Jason Lee Neiss — Brighton Real Estate Group, Sylvia Marin Padilla — Miramar International, Downtown, Richardo Rios — Avalar Real Estate & Mortgage, Lauren Robinson — RE/MAX Magic, Harpreet Singh Sidhu — Coldwell Banker Preferred, Coffee, Araceli Soto — Keller Williams Realty, Ryan Elliot Stevens — Pacific Shore Real Estate, Penelope Anne Taylor — Keller Williams Realty, Ashely Torres — Coldwell Banker Preferred - Coffee, Keith Van Dam — Miramar International - Downtown

new realtors ® MAY 2014

Jonathan Castellanos — Coldwell Banker Preferred, Coffee, Leticia Castillo — Truth Realty, Reinhard Clasen — Soctt Rivera Real Estate Group, Elia Estasy — Elia Estasy, Broker, Evelyn Feltus — Coldwell Banker Preferred, Ming, Jennifer Holloway — Miramar International, Mill Rock, Rob Katano — Rob Katano, Broker, Yesenia Lainez — Coldwell Banker Preferred, Coffee, Corrine Raub — Coldwell Banker Preferred, Coffee, Bertha Sanchez — Platinum Real Estate Inc.

BAKERSFIELD REALTOR® MAGAZINE

LOCAL NUMBERS YOU NEED TO KNOW

Our Local

Housing

Market OVERVIEW OF PROPERTIES

INDUSTRY STATISTICS

Area

Dollar Value

# Sold 2014

2013

2014

Average Sold Price*

2013

2014

2013

% of List Price* 2013

$7,102,850

$8,694,417

$121,588

$131,031

98.46

97.98

$3,451,782

$3,533,560

$86,050

$88,604

97.10

94.60

$9,190,890

$7,080,850

$151,423

$122,138

98.08

98.61

$449,900

$2,676,500

$149,967

$297,389

98.88

96.23

$7,646,250

$8,188,900

$120,179

$103,657

97.71

97.26

151

178

$23,016,111

$22,476,556

$163,383

$128,480

96.83

98.26

$10,309,088

$11,474,135

$203,544

$169,835

99.57

99.31

$4,256,912

$7,985,850

$266,057

$266,195

98.29

95.99

$4,051,953

$3,282,845

$108,228

$97,965

98.06

101.78

$5,002,300

$4,895,841

$135,197

$133,911

97.94

99.77

$645,000

$457,625

$161,250

$152,542

96.44

94.38

146

211

$20,170,142

$24,087,232

$143,520

$120,309

98.78

100.01

372

375

$69,428,632

$62,004,192

$197,153

$171,733

98.74

100.09

201

209

$62,598,105

$58,162,097

$312,161

$278,592

98.17

99.42 102.30

$225,000

0.00

$12,807,990

$16,358,299

$237,185

$221,538

98.36

100.27

249

286

$71,908,742

$69,149,001

$288,790

$241,780

99.02

100.29

$29,099,172

$30,858,891

$326,479

$314,887

98.74

99.29

$1,110,000

$1,561,000

$277,500

$260,167

97.04

102.82

$6,556,790

$3,566,900

$220,220

$162,132

97.54

95.65

$655,000

$1,046,000

$154,750

$173,200

256

132

94.43

95.28

$327,900

$980,400

$61,225

$91,340

132

88.16

91.94

$1,565,500

$1,710,234

$190,375

$86,486

94.59

94.71

$2,171,910

$3,056,464

$108,596

$109,159

100.50 102.16

$1,370,000

$885,000

$456,667

$295,000

104

96.68

100.81

$153,500

$602,900

$76,750

$120,580

89.09

95.90

$1,106,607

$546,500

$236,659

$136,625

97.94

95.49

$10,523,960

$9,278,550

$171,737

$134,472

98.49

98.54

$4,498,450

$4,538,868

$93,579

$91,029

96.78

98.12

$7,529,500

$9,741,113

$136,900

$147,439

97.21

94.54

$10,151,950

$14,429,320

$234,141

$270,948

95.97

97.63

* Figures from single family homes only. Statistics were run on April 28, 2014.

DOM*

2014 2013 2014

BAKERSFIELD REALTOR速 MAGAZINE

2013 800 600

The numbers tell the story

400 200

2014 Compared to 2013 by MLS Area 0

ACTIVE

PENDING

CONTINGENT

SOLD

Active, Pending and Sold - All Areas 1600

1400

1400 1200 1000

2013

1000

800

600

400

200

200 0

ACTIVE

PENDING

CONTINGENT

1600 January All Areas Active 1400 January Contingent 1200 Active Pending

Contingent Sold 1000 Pending Total Volume Closed 800 Sales Price * Sold Median Total Volume Average DOMClosed * 600 Median Sales Price *

PENDING

CONTINGENT

SOLD

FEBRUARY 2014

2013

% Year over Year Change

1,318 2014 355

877 2013 625

50.3% % Year over Year Change -43.2% 2014

1,318 784

877 947

355 480

625 527

50.3% -17.2% 2013 -43.2% -8.9%

784 $95,445,219

947 $90,768,166

-17.2% 5.2%

480 $189,000

527 $155,000

-8.9% 21.9%

$95,445,219 48

$90,768,166 45

5.2% 6.7%

$189,000

$155,000

400 DOM * Average

2014

2013

% Year over Year Change

Active

February Contingent

1,373 2014 356

816 2013 651

68.3% % Year over Year Change -45.3%

Active Pending

1,373 908

816 1,073

68.3% -15.4%

356 468

651 529

-45.3% -11.5%

Pending Total Volume Closed

908 $92,576,891

1,073 $91,605,808

-15.4% 1.1%

Sold Median Sales Price *

468 $185,000

529 $160,000

-11.5% 15.6%

Total Volume Average DOMClosed *

$92,576,891 53

$91,605,808 45

1.1% 17.8%

21.9%

Median Sales Price *

$185,000

$160,000

15.6%

6.7%

Average DOM *

17.8%

2014

2013

% Year over Year Change

February All Areas

Contingent Sold

200 Bakersfield January ACTIVE

ACTIVE

SOLD

JANUARY

2014

1200

2014

Bakersfield 2014

P2013 ENDING

% Year over Year SOLD Change

February

January Total Volume Closed

CONTINGENT 411 2014 $85,420,189

449 2013 $80,242,353

% Year-8.5% over Year Change 6.5%

Sold February Total Volume Closed

394 2014 $80,037,801

453 2013 $81,050,336

-13.0% % Year over Year Change -1.2%

Sold Median Sales Price *

411 $200,000

449 $164,345

-8.5% 21.7%

Sold Median Sales Price *

394 $195,000

453 $170,000

-13.0% 14.7%

Total Volume Average DOMClosed *

$85,420,189 44

$80,242,353 44

6.5% 0.0%

Total Volume Average DOMClosed *

$80,037,801 52

$81,050,336 44

-1.2% 18.2%

Median Sales Price *

$200,000

$164,345

21.7%

Median Sales Price *

$195,000

$170,000

14.7%

0.0%

Average DOM *

18.2%

Sold

Average DOM * * Single Family Only

QUARTERLY COMPARISONS

* Single Family Only

1st Qtr 2014 2,591

New Listings Contingent Pending

2,368

748

949

1,858

1,857

1,500

1,681

$300,306,081

$294,579,396

$189,000

$160,000

Sold Total Volume Closed

1st Qtr 2013

Median Sales Price * Average DOM * Average Sale Price/SqFt *

120.44

103.84

*Statistics were run on April 28, 2014. BAKERSFIELD REALTOR速 MAGAZINE

IN A NUTSHELL C.A.R. Legal Hotline Reaches New Milestone C.A.R.’s Legal Hotline reached a new milestone in March when more than 8,100 calls were received and answered by C.A.R. attorneys. Over the 21 days that the Legal Hotline was open, C.A.R. attorneys handled an average of 387 calls per day. The C.A.R. Legal Hotline is one of C.A.R.’s most popular member benefits. This free member benefit enables C.A.R. members to receive free, real estate-related legal advice from one of C.A.R.’s hotline attorneys. To learn more about the Legal Hotline, including hours of operation, types of questions answered, and how to contact a C.A.R. attorney, please visit www.car.org/legal/miscellaneous-contacts/legalhotline-access/.

Legislative Facts to know C.A.R. is embarking on a new venture. REALTORS® often comment that they are always seeking fresh content for their various marketing vehicles – blogs, newsletters, websites, et

Legal Hotline Access

The C.A.R. Legal Hotline offers members the incredible benefit of receiving free legal advice over the telephone on a vast array of real-estate related topics such as contract interpretation, arbitration, litigation, tax issues, commission disputes, disclosure requirements, fair housing issues, laws governing homeowners’ associations, and so on. By contacting the C.A.R. Legal Hotline you can speak directly to one of C.A.R.’s attorneys. Since its debut in 1979, C.A.R. attorneys have answered more than 600,000 questions about real estate law and brokerage practice. LEGAL HOTLINE HOURS: Monday through Friday, from 9 a.m. - 6 p.m. Saturday from 10 a.m. - 2 p.m. on a first-come, first-serve basis by calling (213) 739-8282 only. The (213) 739-8350 and (213) 739-8286 numbers are not available on Saturdays. (Due to limited staffing, Saturday Hotline service is only for questions regarding active transactions.) Online: Click here to submit your legal question Fax: (213) 480-0864 Phone: (213) 739-8282 (for agents) Phone: (213) 739-8350 (for broker-owners, office managers, designated REALTORS®) WHETHER YOU SUBMIT YOUR QUESTION ONLINE, BY E-MAIL OR FAX: PLEASE KEEP YOUR DESCRIPTION OF THE ISSUE SHORT (2-3 short paragraphs; There is a 2,000 character maximum computer software limit on messages relayed to attorneys). YOU’LL BE ABLE TO PROVIDE MORE DETAILS WHEN YOU TALK TO AN ATTORNEY. One of our C.A.R. attorneys will telephone you to discuss your legal question so please be sure to indicate the name of any other licensee involved in your question/ transaction as well as your telephone number.

BAKERSFIELD REALTOR® MAGAZINE

QUICK READS FOR REALTORS ®

cetera. Since so much of what C.A.R. does in the legislative arena protects not only REALTORS® but their clients as well, C.A.R. has created Homeowner Legislative Facts, a monthly compilation of articles about laws and legislation that your clients may find valuable. At least once a month, C.A.R. will post new articles to this page so that you can copy and paste them into your own marketing materials. If you have questions about this program or its contents, please contact DeAnn Kerr at deannk@car.org.

Legislature Considers Tax on Homeowners The state legislature has been considering a tax that would be imposed on homeowners who need to record certain documents with their counties. This $75 per document tax will be imposed on a variety of documents, which will include documents related to refinancing properties, taking properties in and out of trusts, making lot line adjustments, obtaining construction loans, and upon the death of a spouse. The tax also applies to foreclosures (the owner would be responsible, not the lender) and filing mechanics liens. For instance, it’s not untypical in a refinance for six documents to be subject to the new tax, resulting in a tax total of $552. If a spouse dies, up to five documents need to be recorded, creating a total tax of $440 including existing recording fees. SB 391 is in the Assembly Appropriations Committee. The CALIFORNIA ASSOCIATION OF REALTORS® is opposing this bill.

CoreLogic Reports 4 Million Residential Properties Returned to Positive Equity in 2013 MARCH 06, 2014, IRVINE, CALIF. –

Homeownership — Approximately 6.5 Million Residential Properties with a Mortgage Still in Negative Equity — CoreLogic® (NYSE: CLGX), a leading residential property information, analytics and services provider, today released new analysis showing 4 million homes returned to positive equity in 2013, bringing the total number of mortgaged residential properties with equity to 42.7 million. The CoreLogic analysis indicates that nearly 6.5 million homes, or 13.3 percent of all residential properties with a mortgage, were still in negative equity at the end of 2013. Due to a small slowdown in the quarterly growth rate of the Home Price Index, the negative equity share was virtually unchanged from the end of the third quarter of 2013.*

Equifax: HELOC volume up 10% year-over-year Trey Garrison |HousingWire.com

The total number of new home equity revolving loans is 71,600, an increase of 10% from same time a year ago, according to the latest Equifax (EFX) National Consumer Credit Trends Report. The balance of newly originated home equity

revolving loans was up 18.4%, from $6.2 billion to $7.3 billion. The total outstanding balance of existing HELOCs in March 2014 decreased 6.5% from same time a year ago, the report says. Of total severely delinquent balances, 69% are from loans originated from 2005-2007. The total balance of severely delinquent loans in March 2014 is slightly more than $8 billion, a 5-year low. “Spring is here and consumers’ desire for credit appears to be rising alongside the mercury,” said Amy Crews Cutts, chief economist at Equifax. “Despite the relatively low numbers of new and used vehicles sold in January, auto originations were up nearly 20 percent from the same time last year. This suggests that consumers are responding positively to the generous terms and greater credit availability in the auto space. “Credit card and Home Equity Revolving Lines of Credit originations were also up sharply over the previous year, further signaling that not only are consumers interested in credit, but that banks are more willing to offer it,” she said. Changes in the total balance of new credit originated between January 2013-2014 include: Bank-issued credit cards: 28.5% increase ($15.2 billion to $19.5 billion); Home equity revolving: 18.4% increase ($6.2 billion to $7.3 billion); and Auto: 19.8% increase ($28.6 billion to $34.3 billion).

California pending home sales jump in March; short sales drop to lowest level in nearly six years CALIFORNIA ASSOCIATION OF REALTORS®

LOS ANGELES (April 23) – In an encouraging sign for a healthier spring home-buying market, California pending home sales increased more than usual and rose to the highest level in 8 months. Meanwhile, the share of short sales has fallen to levels last observed in 2008. PENDING HOME SALES DATA: n California pending home sales climbed 17.8 percent in March, with the Pending Home Sales Index (PHSI)* rising from 97.1 in February to 114.4 in March, based on signed contracts. The March index was the highest since July 2013. n Pending sales were down 9.9 percent from the revised 126.9 index recorded in March 2013. The year-over-year decline in the PHSI has been tapering over the past few months. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market. Distressed housing market data: n The share of equity sales – or non-distressed property sales – has been increasing steadily over the past year. The share of equity sales increased to 87.6 percent in March, up from 85 percent in February. Equity sales stabilized over the past several months but have started rising again as the spring home-buying season takes off. March marks the ninth straight month that equity sales have been more than 80 percent of total sales. Equity sales made up 71.8 percent

of sales in March 2013. n The combined share of all distressed property sales continued to drop in March, primarily due to declines in both short sales and REO sales. The share of distressed property sales fell from 15 percent in February to 12.4 percent in March. Distressed sales continued to be down by more than half from a year ago when the share was 28.2 percent. n Thirty of the 38 reported counties showed a month-to-month decrease in the share of distressed sales, with Alameda, Marin, San Diego, San Mateo, and Santa Clara counties registering the smallest share. Alameda, Madera, Marin, Monterey, Orange, Riverside, San Luis Obispo, and San Mateo counties experienced the greatest

year-to-year improvement in fewer distressed property sales. n Of the distressed properties, the share of short sales dropped to levels last observed in March 2008 at 6.6 percent, down from 8.2 percent in February. March’s figure was nearly a third of the 17.2 percent recorded in March 2013. n The share of REO sales also fell in March to 5.4 percent, down from 6.3 percent in February. REOs sales are now about half what they were a year ago, when REOs made up 10.6 percent of all sales in March 2013. n Active listings across all property types, especially in equity properties, fell during March, tightening housing supply conditions. The Unsold Inventory Index for equity sales dropped from 4.8

months in February to 4 months in March. The supply of REOs dipped from 3 months in February to 2.8 months in March, and the supply of short sales slipped from 5 months in February to 4.7 months in March. *NOTE: C.A.R.’s pending sales information is generated from a survey of more than 70 associations of REALTORS® and MLSs throughout the state.

FHA bounces back BY STEVE BROWN | 2014 NAR PRESIDENT

Just as winter snows melt, and spring begins to bloom, there are also signs of renewal for the Federal Housing Administration (FHA). The White House released its fiscal 2015 budget proposal last week, and it indicates that the FHA should not need additional taxpayer funding in the coming year. This excellent news couldn’t have come at a better time. This announcement puts the FHA on the right path not only towards achieving compliance, but being positioned to cover any future losses without seeking additional funds from the federal government. When private lenders fled the market after the 2008 financial crash, the FHA was left carrying an oversized burden. I saw this up close in my own company in Dayton, Ohio. During the depths of the Great Recession, FHA-backed loans were more than 60 percent of my affiliated mortgage company’s business. Even today, FHA-backed loans are nearly 30 percent of my book. There is no question that my business would not have survived without the FHA. In fact, the housing recovery we are now experiencing would not have happened if the FHA had not been there when times were tough. Understandably, FHA paid a price for this commitment. It suffered financial losses and needed additional funding to cover an accounting shortfall in its emergency reserve account. For the first time in the agency’s 80-year history, the FHA drew $1.7 billion from the Treasury Department last year. To ensure the agency does not need additional funds, the FHA made significant changes. The White House budget announcement indicates these reforms are producing positive results. NAR continues to be a strong supporter of the FHA. We are pleased that Congress allowed the FHA to put its house in order without enacting hasty reforms that would have stalled the real estate market’s fragile recovery. Of course, we aren’t out of the woods, yet. This is why we support needed housing finance reforms, especially the Senate’s Johnson-Crapo “FHA Solvency Act of 2013.” This bill is a strong step forward in strengthening the FHA. But, for now, everyone across the political spectrum should welcome the news that the FHA is on a path to financial solvency. It demonstrates that the FHA’s mission of providing low-cost loans to qualified borrowers — particularly low- and middle-income buyers — does not have to come at the expense of America’s taxpayers. BAKERSFIELD REALTOR® MAGAZINE

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