Lubbock REALTOR 07-14 by Cade Fowler

LUBBOCK REALTOR

www.lubbockrealtors.com

JULY 2014

Phone (806) 795-9533 Fax (806) 791-6529 5015 Knoxville Avenue, Lubbock Texas 79413-4039 2014 Board Officers

APRIL MONTHLY MARKET COMPARISON

Nancy Rawls, President Rusty DeLoach, President Elect Charles Kearney, Treasurer Jef Conn, Secretary Coby Crump, Chairman of the Board

Categories

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.

$35 = entry + 1 bingo card $50 = entry + 2 bingo cards $60 = entry + 3 bingo cards Additional cards may be purchased for $5 once you have reached the $60 level. Your entry and additional bingo cards go toward your 2014 TREPAC (Texas Real Estate Political Action Committee) investment. RSVP to hollymcbroom@lubbockrealtors.com.

Page 1

Food courtesy of Chick-Fil-A! Beverages included! Tons of prizes including an opportunity to win 6 months of LAR dues!

Avoid Trouble From Incorrect Advertising The Real Estate License Act requires licensees to identify themselves as a real estate broker or salesperson in any ad the licensee publishes. Using the term REALTOR by REALTOR members is sufficient to identify yourself as a broker or salesperson.

MEMBER NEWS Total Members 879 ( ↑ 10% from projected 2014 membership) 177 Companies │ 702 Salespersons New REALTOR Members Designated REALTORS / Companies William Harper

Rockwood Investments

Salespersons Vanessa Hyde

West Texas, REALTORS®

Kyle Thompson

Keller Williams Realty

Kim Barnes

Exit Realty of Lubbock

Diane Barnett

Keller Williams Realty

Lia Strickland

Pat Garrett, REALTORS®

Chad Brady

Progressive Properties

Amber Brown

RE/MAX Lubbock

The following are examples of acceptable advertising: 2-bedroom apartment available Jacob McCandles and Company, Real Estate Brokers Call Rooster Cogburn, salesperson: 512-555-2222

Brian Palmer

Ultima Real Estate

Amber Bolen

Berkshire Hathaway Home Services

Scott Cain

Tigris Real Estate

2-bedroom apartment available Jacob McCandles and Company, REALTORS Call Jacob McCandles, broker: 512-555-2222

Kayley Falkenbury

Red Label Realty

Amanda Reimer

Cagle, REALTORS®

Shelby Peebles

Keller Williams Realty

Pamela Whitley

Berkshire Hathaway Home Services

Mark Franco

Exit Realty of Lubbock

NAR Comments on UAV Policy

Cameron Owens

Exit Realty of Lubbock

The National Association of REALTORS® submitted comments on the Federal Aviation Administration's (FAA) recent "Interpretation of the Special Rule for Model Aircraft," which specifically mentioned REALTORS® use of Unmanned Aerial Vehicles (UAVs) for taking property videos as being a commercial use and therefore prohibited under FAA policy.

Kelli Philp

Keller Williams Realty

Here is an example of an advertising violation: 2-bedroom apartment available Jacob McCandles and Company Call Rooster Cogburn: 512-555-2222

Remember that this applies to teams as well. All team advertising should clearly state who the sponsoring broker or brokerage is.

While safety and privacy concerns presented by UAV technology are NAR’s primary concerns, NAR members are also concerned about current FAA policy that prohibits any commercial use of this technology and hinders the growth of many industries. NAR supports regulation that allows industries to use this technology safely to enhance business development but also wants to ensure that any future regulatory framework is not so burdensome and expensive as to prevent UAVs from being used by industries that can benefit from its use. NAR encourages the FAA to comply with the statutory directives issued by Congress to develop rules that integrate UAVs into the national airspace by 2015.

(continued on page 3)

Donate to United Way and You Could Win! For every $25 donation, you will be automatically entered into a drawing for these great prizes! Donate $100 and get an extra entry!

1 Tablet (iPad / Microsoft Surface / etc.) 3—$100 cash prizes 2—$250 cash prizes 1—$500 cash prize The drawing will be held at the Sept 11 Membership luncheon, but you do not have to be present to win. You can donate by cash, check or on-line at unitedway-lubbock.org. The LAR will be notified if you donate on-line.

This technology is a growing trend in real estate, not just for commercial properties, but for residential as well. The Harlingen Board of REALTORS® recently began offering UAV services to their members for their listed properties.

Page 2

Dangers of Black Iron Pipe and CounterStrike’s Superior Safety Record Are you safer with rigid gas pipe in your house? It is proven that black steel pipe is prone to leaks and starting fires and explosions.1 CounterStrike corrugated stainless steel tubing (CSST) – which has been independently tested and proven to be a safe and durable product – is able to withstand the forces of nature.2 Experts agree CounterStrike CSST is the safest. The facts are indisputable: Black steel pipe is not safer and has its own dangers that have led to many deaths and injuries.

BLACK IRON PIPE

CORRUGATED STAINLESS STEEL TUBING

Deadly: The National Fire Protection Association estimates there are 24 deaths and over 100 injuries each year due to leaks and breaks.3

Safe: Unmatched 20+ year safety track record. 6 million successful installations totaling over 800 million feet.

Dangerous: 2,300 residential fuel gas fires each year caused by leaks and breaks.3 Rigid steel pipes can break and corrode and cause explosions or fires.

Durable: Made from corrosion resistant stainless steel – it is tough enough to be driven over by a forklift without damage. An indirect lightning strike cannot burn a hole in the wall of a properly installed CounterStrike CSST system.

Susceptible to lightning damage: About 100 fires every year are caused by lightning damage to black iron pipe installations.4

Protects against lightning damage: CounterStrike CSST has been tested in a Lightning Technologies lab and is proven to protect against lightning damage.

Unsafe in normal conditions: Ill-suited to withstand normal structural settling let alone earthquakes, floods or other natural disasters.

Designed to withstand extreme conditions: CounterStrike CSST is the only gas tubing product in the country that is listed for seismic and fire resistance, as well as enhanced lightning protection.

Foreign made with no quality control: Made offshore and not tested to any national performance standards – there are no consumer safeguards with black steel pipe.

Proudly made in the USA: CounterStrike CSST is designed and manufactured in the USA. Tested and listed by Underwriters Laboratories, International Code Council, Factory Mutual, International Association of Plumbing and Mechanical Officials, and Canadian Standards Association.

THE FACTS ARE CLEAR:

COUNTERSTRIKE CSST IS SAFE.

CounterStrike is a registered trademark of Omega Flex, Inc. 1. NFPA 921, Fire and Explosion Investigations 2. University of California – San Diego 3. Fires Starting with Flammable Gas or Flammable or Combustible Liquid, John R. Hall, Jr., National Fire Protection Association, February 2014 4. Lightning Fires and Lightning Strikes, NFPA, Marty Ahrens, June 2013

FGP-670 05/2014

Are You Aligned With Your Consumer or Your Past?

Business Partners (Affiliate Members) Duct Armor of Lubbock

Allen Eubank, representative

by Jeremy Conaway

Membership Cancellations

Today’s North American real estate brokerage is sharing its market space with a concept and a force known as digital disruption. Native to almost every industry in the contemporary economy, digital disruption is more than specific faces and brands, it is the application of several very effective and very new business concepts that are proving to be overwhelmingly effective, especially against individuals and entities who attempt to cling to traditional approaches that no longer appeal to the contemporary consumer.

Salespersons Bob Tyson

Keller Williams Realty

Brett Rodgers

Keller Williams Realty

Lisa Martinez

Rush, REALTORS®

Kim Sparks

Ultimate Sold of Lubbock

Resa Cunningham

Lubbock Discount Realty

Mary Beadles

Keller Williams Realty

Shelbi Eugenis

Coldwell Banker Rick Canup, REALTORS®

T.J. Tuttle

Century 21 John Walton, REALTORS®

Jacob Goertzen

Texas Sky Realty

Carla Hall

Exit Realty of Lubbock

Morgan Olivier

Kearney & Associates, REALTORS®

REALTORS® on the Move Joe Hall

Century 21 John Walton, REALTORS® to Jerry Kitten Broker

Adam Popejoy

Rush, REALTORS® to Kendra Sutherland, REALTORS®

Janis Rothwell

RE/MAX Lubbock to J. Rothwell Real Estate

Meagan Thompson

Keller Williams Realty to Exit Realty of Lubbock

Sven Roberts

Dustin Jones Realty to Keller Williams Realty

Property Investors and Managers Webinar Date: Wed, August 20 Time: 10—11:00 AM Cost: Free MCE hours: 1 The Property Investors and Managers Committee hosts this one hour webinar that provides an overview of the law surrounding foreclosures in Texas prior to the enactment of the federal “Protecting the Tenant at Foreclosure Act,” as well as an overview of the Act itself. Attendees will learn about the impact of the laws on the property manager. Members with just one investment property are encouraged to attend.

want.”

It is this recognition that digital disruption is a business doctrine practiced by brighter than average entrepreneurs, rather than a tyrannical assault engaged in by terrorists, that can go a long way in assisting real estate brokers to align their wonderful pasts with a successful future. Virtually every industry is, in some way or another, being impacted by digital disruption. Volumes have been written about digital disruption, what it is and how it works. Even within this broad span of attention perhaps the most common observation made about this behavior is that it almost always arises out of a pre -existing condition, most predictably consumer demands and expectations. There are several digital disruptors currently engaging the real estate industry. Without question the one creating the most buzz is the third party listing portal. In almost every marketplace there are both brokerages and practitioners who are expressing both outrage and fear regarding what they claim are inappropriate and unethical practices being engaged in by these now not so new entities.

While only history will be able to judge whether the alleged wounds and expressions of pain being communicated by these folks are, or were appropriate, there are some aspects of their behaviors that can be evaluated now. The first thing that has become obvious is that both the strategies and the tactics utilized by the real estate portals are not reflective of their being mean spirited or unethical but rather that they are absolutely tuned to the demands and expectations of the contemporary real estate consumer. A second observation would be that, even years after learning about the importance of relationships, many real estate professionals refused to change their approach. The practitioners of the traditional real estate service practice are not victims of some new weapon of mass destruction. They may, however, be victims of a weapon of mass disruption. This new “WMD” is not chemical or fusion based but rather is built around one of the oldest chemical formulas know to mankind: “give your customer what they

The vulnerability that has been exploited by the listing portal is not some technical, chemical, biological or communications advantage but rather consists of components gained by simply listening to the consumer and converting what one hears into simple steps that align the consumer real estate experience being offered with the demands and expectations being Page 3

articulated. All of which brings us to the simple conclusion that the traditional practitioner, by taking steps to be more sensitive and responsive to the increasingly powerful and influential consumer, could avoid much of the disruption currently being created by the portals. For the purposes of this article, the more obvious complications created by agent centricity will be ignored. What specific things should brokerages do to begin the process of understanding their customers? The first step is a classic example of that “one giant step for mankind” thing. The current situation would be greatly improved if brokers would acknowledge that the consumer is in whole or in fact “their customer.” The very idea that customers expressing interest, gaining knowledge of, or creating a relationship with brokerage violates some secret code or sacred relationship with the agent is both unacceptable and, in the face of the current marketplace, inappropriate. Much has been made about the billion dollar cap values being amassed by the portals. Yet the fact remains that what they are actually doing on a day-to-day basis is one of the easiest and cheapest remedies known to any industry; “listen to your customer.” The probable place to begin this quest is to understand the issue from a consumer perspective. Most consumers today expect and, in many cases, demand a relationship out of every transaction no matter how minor. Consumers not only expect this relationship but also demand that the companies they deal with hold up their end of the relationship bargain. Brokerages that have not adopted some relationship “standard” for their customers aren’t just falling behind, they are violating what today’s consumer believe is a righteous expectation.

Advice for Texas REALTORS® What Your Client Must Do to Resolve Contract Related Disputes Q: My buyer client asked me to explain the Mediation Paragraph in the One to Four Family Residential Contract (Resale) before she submits an offer on the form. Does agreeing to this paragraph mean she can’t sue the seller if he breaches the contract? A: If a contract-related issue arises that can’t be resolved through informal discussion, the parties must submit to a mutually acceptable mediation service or provider and pay the cost for mediation equally. The Texas Real Estate Commission recently revised its contracts to change the requirement to mediate from optional to mandatory. Buyers and sellers must now attempt to resolve any contract-related dispute through mediation before going through the court system.

Most brokerages today are further handicapped because they fail to develop what the Harvard Business Journal calls “relational intelligence.” They don’t understand all of the different relationships their consumers have with other vendors and brands, nor how these relationships impact the consumer’s demands and expectations. Accordingly, they tend to operate in the dark regarding this critical factor in most cases assuming, probably incorrectly, that agents are taking care of this requirement. Obviously this situation must be remedied if brokerages are to appropriately and effectively respond to digital disruption. Brokerages must design, develop and implement programs that will give them the very knowledge about their consumers that will allow meeting this new challenge. Only with this information will they be able to gain control over a relationship strategy that will allow them to begin to set their rules and expectations rather than to be dragged down the road ruled by a one sided consumer generated relation expectation.

In this new environment the brokerage’s marketing program can now be adjusted around the brokerage/customer relationship. This is an essential step forward. Yes, in many cases these steps and tactics are going to upset agents. Especially those Find more legal questions who choose to cling to the claim that they own the relationship and answers in the Legal and have the right to abuse that responsibility by failing to either FAQs section of texasrealesservice or respect the consumer relationship. It is time for the tate.com. real estate services community to recognize that the separation of brokerage and agent in this critical function is no longer acceptable or productive. The forces of digital disruption are widening the relationship gap every day and even now experts are looking forward to a “tipping point.” -—Jeremy Conaway is a keynote speaker, conference facilitator, and consultant to the real estate industry. He is President and CEO of RECON Intelligence Services, and can be reached at jeremy.conaway@reconis.com.

Page 4

2014

Texas Real Estate Political Action Committee (TREPAC) Investors—Levels Reached as of July 31, 2014

Crystal R ($2,500) Lisa Sellers Sterling R ($1,000) Carolyn Crowson Karleen Boyd Rusty DeLoach Bill deTournillon Norma Edwards Linda Ferguson Tim Futrell Tim Garrett Fred Hardin Jay Herrin Ann Kearney Charles Kearney Tony Lloyd Mark McMillan Jerod Reep Dorinda Sherwood Pam Titzell Capital Club ($500) Brian Aycock Brenda Bennett Michael Berg Bob Brandt Lisa Carswell Judy Cato Coby Crump Joy Daniel Kathy Davis Vanessa Dirks Kelley Elliott Steve Gwinn Nathan Jordan Renessa Knowles Greg Luman Josh Putman Nancy Rawls Winn Sikes Jana Wuthrich

Lone Star Statesmen ($250)

110 Club ($110)

Cynthia Arriaga Brian Aycock Wayne Backus Joe Bellar Doug Davis Michael Divin Casey Doyle Doug Duncan Brad Elder Cade Fowler Linda Gaither Kent Gamble Beth Garrett Ella Glover Tim Grissom Pat Ham Kendra Harris Cheryl Isaacs Larry Jones Cindi Lea Rob Leatherwood Jana Longbotham Kathy Marable Chase Marberry Mark McMillan Joe L. Murfee, III Brett Paxton Emily Ratcliff Ginger Robertson Jack Robnett Jeff Sellers Susan Shakespeare Steve Shanklin Liz Smart Beverly Sowell Shari Straley Gary Tapp John Walton Dan Williams

Courtney Allen Stephanie Allison Tricia Anderson Lindsey Bartley David Bloodworth John Bost Leigh Anne Brozo June Burks Rick Canup Julie Childs Mary Cleckler Bobbe Crawford Darlene Fillman Rick Fowler Greg Garrett Paul Garrett Chip Gilmour Mary Ann Grafft Ken Harlan Lanny Harris David Haymes Doug Jordan Nita Kiesling Sharon Lee Larry Leivas Don Lynn Terry Manz Mike McCarty Russell McGuire Velma Medina David Myers Jimmy Noland Rita Paxton David Pritchett Chris Raney Rod Reynolds Jim Rosson Ruan Samuels Johnny Stringer Lela Tackitt Gary Tapp David Terry Rachel Townsley Debby Tullis Donna Westfall La Donna Wichern Cindy Wilkinson Jon Willey

Thank You Investors!

As REALTORS® and private property owners, you know the value of protecting the real estate industry. That’s why TREPAC is so important. Not only is it an insurance policy on your career, but it makes you the ultimate advocate for your clients, friends and family. Every legislative session, TREPAC fights to protect the interests of home owners a the local, state, and national level including protecting homeowner’s equity, requiring the licensing of mortgage brokers for consumer protection and stopping additional taxes on the sale of real property.

Invest online at www.texasrealtors.com Year-to-Date Investments $83,872 Year-to-Date Participation 58%

For every TREPAC event you attend, like the upcoming Golf Tournament, Casino Night, Bingo Night, etc. your registration goes towards your overall TREPAC investment. So invest today and not only will you save money by defeating fees that take away from your income, but you also show your clients another reason why using a REALTOR® is so important.

Page 5