LUBBOCK REALTOR
®
www.lubbockrealtors.com
APRIL 2014
Phone (806) 795-9533 Fax (806) 791-6529 5015 Knoxville Avenue, Lubbock Texas 79413-4039 2014 Board Officers
MARCH MONTHLY MARKET COMPARISON
Nancy Rawls, President Rusty DeLoach, President Elect Charles Kearney, Treasurer Jef Conn, Secretary Coby Crump, Chairman of the Board
Categories
March 2013
March 2014
Percent Change
Total Residential Property Sales
361
262
-27.4%
Total Residential Dollar Volume
$53,039,333
$43,066,279
-18.8%
Average Single-Family Sales Price
$146,463
$164,375
12.2%
DIRECTORS Cynthia Arriaga, 2013—2014
Median Single-Family Sales Price
$122,750
$130,950
6.7%
Leigh Anne Brozo, 2014—2015
Total Active Residential Listings
1,113
1,105
-0.7%
Vanessa Dirks, 2014—2015
Total Pending Residential Sales
325
536
64.9%
Frank Harmon, 2013—2014
Months Inventory*
3.9
3.3
-15.4%
Jacky Howard, 2013—2014
*Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity.
Larry Jones, 2014 Tara Newton, 2014—2015 Nathan Jordan, 2014—2015 Jeff Sellers, 2014—2015
Year-to-Date Comparison Categories
Jan-March 2013
Jan-March 2014
Percent Change
Susan Shakespeare, 2014—2015
Total Residential Property Sales
849
770
-9.3%
Dan Williams, 2013—2014
Total Residential Dollar Volume
$129,216,370
$119,591,310
-7.4%
Jana Wuthrich, 2013—2014
Average Single-Family Sales Price
$151,839
$155,313
2.3%
EX OFFICIO DIRECTORS Tim Garrett, 2014—2015 Regional
Median Single-Family Sales Price
$122,000
$125,000
2.5%
Vice President and TAR Director Ann Kearney, 2014-2016 TAR Director John Walton, TAR Director Lifetime
Notice on this information: Multiple Listing Service data is reported to the Real Estate Center at Texas A & M and the National Association of REALTORS® on the eighth of each month. Year‐to‐date data may be corrected for information reported after the eighth. Neither the association nor its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the association or its MLS may not reflect all activity in the real estate market.
Don’t Believe Everything You Read on the Internet -The following article was distributed nationally on April 8, 2014 and has been picked up by more than 250 websites across the nation. With all the information on the internet, many feel they can become a virtual expert at just about anything – even buying or selling a home. Since a REALTOR® is going to get a percentage of the total selling price, you might want to keep that extra cash, try to sell on your own and find that perfect dream home by surfing real estate websites, right? Not so fast, says Lubbock Association of REALTORS® President Nancy Rawls. “If you choose to forego a REALTOR®, there are so many things you’ll need to prepare for,” she says. “For instance, you will need to stage your home, be available to show it at a moment’s notice, prepare marketing materials for potential buyers, and negotiate an offer. Additionally, you must be prepared to be objective about your home and accept the criticism that potential buyers will give.” While websites can give some information on both the buying and selling side, Rawls added, those websites are no match for the information that a professional REALTOR® provides. And, if you list your home for the wrong price, you may miss out on valuable money – all that you think you’re saving by not using a REALTOR® in the first place. “As REALTORS®, we have a large list of contacts and an MLS (Multiple Listing Service) to market your home,” she says. “Our entire careers are built around working with each individual to achieve the American dream of home ownership.” Page 1
Just as doctors worry about patients who “self-diagnose” based on website information; so too do REALTORS® when it comes to buyers and sellers looking for the best deal, Rawls says.
MEMBER NEWS Total Members 853 (+7% from projected 2014 membership) 175 Companies │ 678 Salespersons
“Websites simply can never replace the real expert working directly for you,” she says. “And, remember, just because you’re choosing not to have a REALTOR®, it doesn’t mean your buyer isn’t using one. The money you may think you’re saving can be lost when you have to negotiate against a trained professional.”
New REALTOR Members Salespersons Sven Roberts
Dustin Jones Realty
Jamie Petmecky
Exit Realty of Lubbock
Get Out and VOTE!
Yaci Yarbrough
Smith Realty
The association has endorsed these candidates that we believe are REALTOR friendly and support private property rights:
Jeremiah Phillips
Keller Williams Realty
Krista Jenkins
Keller Williams Realty
Ronny Hall
Keller Williams Realty
Rhonda Severin
M. Edwards, REALTORS®
Sara Nine
The Sellers Realty
Daniel Sayers
Coldiron Real Estate Group
Jordan Bailey
Keller Williams Realty
City Council, District 1—Frank Gutierrez Justice of the Peace Precinct 4—Ann-Marie Carruth Lubbock Independent School District Board—Laura Vinson Early voting began Monday, April 28th and will run through Saturday, May 10th.
Advice for Texas REALTORS Which party picks the title company?
(continued on page 3)
Q: Who gets to pick the title company that will issue the owner policy of title insurance? A: It depends. If the seller pays for both the owner policy and the lender policy of title insurance, then the seller can pick the title company without violating the Real Estate Settlement Procedures Act (RESPA). However, if the buyer pays for the owner policy, then the seller cannot condition the sale of the property on the buyer purchasing the owner policy from a particular title company. Rather, the buyer would get to pick the title company. In situations where the seller pays for the owner policy and the buyer pays for the lender policy, RESPA application is less clear. At least one court has held that, where the seller paid for the owner policy and the buyer paid for the lender policy, the seller did not violate RESPA by insisting on a particular title company for the owner policy. The court explained that the seller did not require as a condition of sale that the buyer use that same title company to issue the lender policy. However, the Consumer Financial Protection Bureau, the government agency that enforces RESPA, has yet to take an official position on the law’s application in this scenario. Therefore, if a seller wants to avoid a possible violation of RESPA, the seller should not insist on a particular title company for the transaction unless the seller is paying for both the owner policy and the lender policy of title insurance.
TexasRealEstate.com— Find All Your TAR Member Benefits OnLine Being a member of the Texas Association of REALTORS has more benefits than just zipForm™. You don’t have to wait for the yearly benefits brochure, just go click on the link For Texas REALTORS and you’ll see the Member Benefits link. Benefits Page 2
Before you return that key box…
Business Partner Applications Hart Moving & Storage
Jeremy Pool, representative
Membership Cancellations Designated REALTORS/ Companies Patsy McDaniel
There are many advantages to the Supra key boxes, particularly the ability to add showing messages to the box. We encourage you to take advantage of these features. Please, when you return the key box, erase this information from the box. It is very difficult for the staff to remove this information after it is turned in and before renting it to another agent.
McDaniel Appraisal Company
Salespersons Chad Conn
Texas Sky Realty
Adam Webb
Texas Sky Realty
REALTORS® on the Move Jill Carey
Kauffman & Humphreys Real Estate to Real Living Greg Garrrett, REALTORS®
Liz Tilson
Kauffman & Humphreys Real Estate to Real Living Greg Garrett, REALTORS®
Robert Garcia
Exit Realty of Lubbock to Houses R Us Realty
Wendell Burris
Keller Williams Realty to Minnix Property Management Jerry Kitten Broker to Kearney & Associates,
Alayna Abbe
REALTORS®
include marketing materials that are customizable, discounts on car rentals and hotels, client gifts, help finding insurance that suits your needs, and technology and business solutions.
The Importance of Prompt Reporting
Your clients look to you to have the most accurate, up-to-date information. To achieve this, it is crucial that status changes be recorded in a timely manner for the benefit of all MLS members
A delay, especially at the end of the month, results in Monthly Residential Data report inaccuracies which cannot be corrected. The Monthly Residential Data report contains information such as monthly and year-to-date closed sales, sold dollar volume, average and median sales prices, DOM, total active residential listings, under contract information, and price class information for sold and active listings. Your help in improving the timeliness of reporting status changes is appreciated, particularly with the busy summer months approaching.
MLS Rules and Regulations Reporting Status Policy Late submission of listing Listing agent must input listing into the MLS System within seventy-two (72) hours after all necessary signatures have been obtained.
1st offense warning
2nd offense $50
3rd+ offense $100
Late reporting of “under contract” status Listing agent must report status of Under Contract within twenty-four (24) hours after all signatures are obtained. Listings are considered Under Contract within the option period and shall be reported as such.
warning
$50
$100
Late reporting of “contingency” status Listing agent must report status of Contingency within twenty-four (24) hours after all signatures are obtained.
warning
$50
$100
Unauthorized extension and renewal of listings Any extension or renewal of a listing must be signed by the seller(s) and be on file at the listing office.
warning
$50
$100
Late reporting of “sold” status Listing agent must report status of Sold within twenty-four (24) hours after all signatures are obtained.
warning
$50
$100
Late reporting of “application pending” status Listing agent must report status of Application Pending within twenty-four (24) hours after all signatures are obtained.
warning
$50
$100
Late reporting of “leased” status Listing agent must report status of Leased within twenty-four (24) hours after all signatures are obtained.
warning
$50
$100 Page 3
Off MLS or “Pocket” Listing? You’re at Risk! By Grant Harpold
There is a temptation in this current and strong real estate market to do the non-traditional or unorthodox as a way to perhaps move ahead or to be, presumably, more efficient. Shortcuts are not uncommon when the money is flowing and business is good. By example, there are REALTORS in this market who have convinced themselves, as well as sellers, that withholding a property from the Multiple Listing Service (MLS) is in the best interest of the seller. Good times can result in poor or risky decision making. A seller may ask you a month after the closing on a property, “Why did you ‘pocket’ my listing and not put it on the MLS like my neighbor’s property who received a higher price for a similar situated property?” Your response might be to call your liability carrier to report a new claim. Your insurance company might, however, take the position that intentionally leaving a property off of the MLS is not covered, i.e., no REALTOR should be that careless. You get the picture? This current love affair by some with “pocket” listings, meaning property listed with a REALTOR who in turn does not place it in the MLS, can invite trouble. In fact, this issue of pocket listings may the greatest legal risk facing REALTORS today. Why? Once you have taken a listing, you have created the highest level of trust in our legal system: the fiduciary relationship, a “special relationship of trust.” A relationship created to help sell a property on the market. Market access is best provided by the MLS, with listings exposed to other brokers, agents and their buyers, as well as listings routed to public websites for consumer access and review, versus unknown and minimal exposure from a pocket listing. No jury would find that you fulfilled your fiduciary duties by choosing to sell a property under a pocket listing that results in limited exposure and limited buyers. The shortcut, the quick sale, exposes you to a liability and reduces the property’s exposure to the market. One might even argue that the effect of a pocket listing is to deny certain people access to the purchase of a property. If only certain buyers are allowed to bid on the property, then the REALTOR runs the risk of being party to a discriminating act, even if unintentional. Thus, a listing orchestrated to be accessed by a select few could be in violation of federal fair housing laws that are in place to prevent discrimination in the sale of a property. The federal government would also have interest in any private groups or collection of individuals that gain from pocket listings by setting commission percentages and listing terms to the exclusion of others. A REALTOR working in such an environment might be subject to antitrust laws that are in place to promote competition. Don’t be tempted to test or experiment with a pocket listing with the MLS as your fallback. A step in that direction will later provide the argument that you failed on a most fundamental part of selling a property: marketing it and letting the world know about it, as opposed to just a handful of agents, friends and neighbors. There may be that occasion when an owner has personal or other reasons for not listing a property on the MLS. Then, in such a situation, it would still be prudent to advise the owner of the benefits of an MLS listing, and if the owner’s position is still “no,” then you document that fact. Meaning, have the owner sign an authorization form which therein grants the broker authority to exclude the property from the MLS, and explains to the owner the consequences of not using the MLS. The market is highly favorable to sellers and their REALTOR at this time. Perhaps in the fast lane, if you will. Yet, don’t take off the MLS “seatbelt” that allows you to safely tell your client or anyone that the property had full exposure to the market, that is sold at market price to a random buyer, and that it was not sold below market at a price determined by a lone buyer from a select group. -Grant Harpold serves as legal counsel for the Houston
RSVP for LAR Luncheon and Regional Meeting There’s still time to RSVP! Date: Monday, May 5th Time: 11:30 a.m. Location: The Scottish Rite, 1101 70th Street Cost: $8 Speakers: Texas Association of REALTORS leadership— 2014 Chairman Dan Hatfield and President/CEO Travis Kessler. There are a limited number of spots available for the two (2) hour MCE course that afternoon from 1—3:00 p.m. Please send in your registration to hollymcbroom@lubbockrealtors.com.
Association of REALTORS and is a shareholder with the law firm of Vincent Lopez Serefino Jenevin, P.C. in it’s Houston office.
Member Benefit—Rent the LAR! As a member of the LAR, you can rent the office auditorium for just $25, even on the weekends! Members have used it for graduation receptions, birthday parties, lunches, and more. Contact Cade at the association for more information, cadefowler@lubbockrealtors.com. Page 4
An Evening At The Races Proceeds benefit: Texas Real Estate Political Action Committee
May 10, 2014 4pm-7pm Texas Tech Equestrian Center 5712 CR 1500 Lubbock, TX 79407 Join us for a fun night of: Horse Races - Pony Patty Bingo - Stick Horse Races - Hat Contest Washers - Corn Hole - an Appearance by Mini’s and Friends
Tickets $35 For First and $30 for additional Tickets include: Food, Drinks & 2 bet chances Additional bets can be purchased for $5 or 4 for $20
****CASH PRIZES**** RSVP to Holly 795-9533 or hollymcbroom@lubbockrealtors.com Disclaimer: This is in a horse arena it is NOT recommend to wear high heels or opened toed shoes. Contributions are not deductible for Federal income tax purposes. Contributions to the Texas Association of REALTORS® Political Action Committee (TREPAC), the Texas Association of REALTORS® Federal Political Action Committee (TAR FedPAC), and the REALTOR® Political Action Committee (RPAC) are voluntary and are used for political purposes. The amount indicated is merely a guideline, and you may contribute more or less than the suggested amount. The Association will not favor or disadvantage anyone by reason of the amount of their contribution, and you may refuse to contribute without reprisal by the Association. TREPAC initially receives each contribution, and a percentage is transmitted to RPAC via TAR FedPAC to meet TREPAC’s RPAC annual quota. RPAC supports Federal candidates with those contributions which are charged against your limits under 2 U.S.C.