LUBBOCK ®
REALTOR
www.lubbockrealtors.com
AUGUST / SEPTEMBER 2014
Phone (806) 795-9533 Fax (806) 791-6529 5015 Knoxville Avenue, Lubbock Texas 79413-4039 2014 Board Officers
AUGUST MONTHLY MARKET COMPARISON
Nancy Rawls, President Rusty DeLoach, President Elect Charles Kearney, Treasurer Jef Conn, Secretary Coby Crump, Chairman of the Board
Categories
Aug 2013
Aug 2014
Percent Change
Total Residential Property Sales
368
358
-2.7%
Total Residential Dollar Volume
$59,334,674
$58,286,281
-1.8%
Average Single-Family Sales Price
$161,236
$162,812
1.0%
DIRECTORS Cynthia Arriaga, 2013—2014
Median Single-Family Sales Price
$132,000
$131,095
-0.7%
Leigh Anne Brozo, 2014—2015
Total Active Residential Listings
1,224
1,113
-9.1%
Vanessa Dirks, 2014—2015
Total Pending Residential Sales
303
252
-16.8%
Frank Harmon, 2013—2014
Months Inventory*
3.8
3.5
-7.9%
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-Aug 2013
Jan-Aug 2014
Percent Change
Susan Shakespeare, 2014—2015
Total Residential Property Sales
2,956
2,777
-6.1%
Dan Williams, 2013—2014
Total Residential Dollar Volume
$454,880,958
$453,529,693
-0.3%
Jana Wuthrich, 2013—2014
Average Single-Family Sales Price
$153,884
$163,316
6.1%
EX OFFICIO DIRECTORS Tim Garrett, 2014—2015 Regional
Median Single-Family Sales Price
$125,000
$132,500
6.0%
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.
Local REALTORS® Provide Children in Need Through Walk With Pride Campaign Insecurity abounds the first few weeks back to school for many children – but for those without, that insecurity can often leave lifetime scars. Enter The Lubbock Association of REALTORS® (LAR) Walk With Pride campaign that works to give local children a reason to smile as they start back to school with a new pair of shoes. LAR members last week fitted more than 350 children for shoes and socks, free of charge at participating Lubbock Payless Shoesource locations. Each year, the LAR budgets money for the Walk With Pride campaign to help families in need with new shoes for the school year. “This is a great opportunity for us to give back to the community, and it’s great to see fellow Lubbock REALTORS® come out and help fit children with shoes and see the smile on the kid's faces,” said LAR President Nancy Rawls. LAR members show their support by volunteering their time to help fit children for shoes and pass out socks. Walk With Pride also is generously supported by staff from the South Plains Food Bank who donate their free time each year, to locate families in need and distributes vouchers for both shoes and socks. “In addition to the tremendous support of the South Plains Food Bank, we greatly appreciate Payless Shoesource,” Rawls said. “I know I personally look forward to this event each and every year.” This year, the LAR also helped the Hutchison Middle School Dance group by donating ballet shoes. This campaign could not have been done without Chair Melissa Smith and the many REALTOR® members and Business Partners who donated their time to help with fitting children with shoes. The association gained substantial coverage for the campaign, reaching over 104 news out-lets coast-to-coast, including a full article in the Lubbock Avalanche-Journal, which can be viewed here.
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Education Offerings MCE Courses & Other Classes October 8—9
CRS Technology Course 16 hours MCE credit
MEMBER NEWS Total Members 889 ( ↑ 11% from projected 2014 membership) 177 Companies │ 712 Salespersons New REALTOR Members Designated REALTORS / Companies
October 15
9:00 AM—1:00 PM “Rapattoni New User Training” 9:00 AM “Be Your Buyers Advocate” 1 hour MCE credit
None
Salespersons Landon Brown
M. Edwards, REALTORS®
Brice Kelly
Egenbacher Real Estate
Mike Brown
Legendary Dreams Realty
Angela Simek
Keller Williams Realty
Jardon Powell
Coldwell Banker Rick Canup, REALTORS®
Lacey Hegi
Keller Williams Realty
Susan Price
Exit Realty of Lubbock
Carol Matticks
Keller Williams Realty
Jeff Gilliam
The WestMark Companies
Taylor Koontz
Keller Williams Realty
Travis Ellington
Exit Realty of Lubbock
Dustin Stone
Keller Williams Realty
Larissa Cable
Keller Williams Realty
Molly Montgomery
Keller Williams Realty
Bobby Davidson
Keller Williams Realty
Joanna Cunningham
Exit Realty of Lubbock
Advice for Texas REALTORS®
Angie Long
Keller Williams Realty
Ramzi Fakhreddine
New Home Brokers, LTD
Marcia Valencia
Lyons Realty
10 Ways to Get Sued
Adam Wright
Lyons Realty
Terry Patel
The WestMark Companies
10:00 AM “Budgeting & Planning for Emergencies” 2 hours MCE credit 1:00 PM “Credit, Debt and Your Customer” MCE pending
October 22
October 29
10:00 AM “Property Manager & Investors Webinar” 1 hour MCE credit 9:00 AM—1:00 PM “Rapattoni New User Training”
October 30—31 8:30 AM “Sellers Representative Specialist” taught by Pat Strong 14 hours MCE credit
During the Risk Reduction Forum at the Texas Shirley Robinson Exit Realty of Lubbock Association of REALTORS Annual Convention in San (continued on page 3) Antonio, John Mondics of Mondics Insurance Group and John Torvi of the Herbert H. Landy Insurance Agency included 10 of the top reasons an agent or broker may be sued in the presentation “Avoiding the E&O Claims Minefield.” 1) 2) 3) 4) 5) 6) 7) 8) 9) 10)
Failing to Disclose Failing to recommend inspections Failing to identify potential issues Failing to properly advise on the terms of a contract Exaggerating features of a contract Failing to explain the significance of a disclosure to buyers Making promises you cannot or do not keep Failing to explain the significance of a disclosure issue to a seller Failing to comply with the time frame in the contract Representing clients in unfamiliar geographic areas Page 2
Business Partners (Affiliate Members) Right Way Home Protection
Eve Darling, representative
Family Title Lubbock
Kim Kruse, representative
CMG Financial
Jana Longbotham, representative
Membership Cancellations Salespersons Frankie Justice
Keller Williams Realty
Nathan Gilliam
The WestMark Companies
Maria Fernandez
Coldwell Banker Rick Canup, REALTORS®
David Garza (deceased)
Lubbock Discount Realty
Jamie Petmecky
Exit Realty of Lubbock
Chis Pollock
Keller Williams Realty
Sheryl Buchanan
The WestMark Companies
Mike Torres
Ultima Real Estate
Chris Carpenter
Coldwell Banker Rick Canup, REALTORS®
Pam Benedum
Exit Realty of Lubbock
Morgan Harder
Keller Williams Realty
Justin Cloud
Biggest Issues for Title Companies, Mortgage Companies and Other Groups The Texas Association of REALTORS® (TAR) conducted focus groups during their visit to the sixteen different regions in Texas. These focus groups were comprised of industry groups beyond real estate agents, but that play a critical part of the home buying and selling process. These groups consisted of title companies, mortgage lenders, appraisers, inspectors, attorneys, home builders and home warranty companies, with the goal of compiling the biggest concerns these groups face while working with agents. One of the biggest issues is understanding promulgated contracts. Often, many key areas of the contract are not completed, such as identifying the broker, but excluding the company on the signature section and leaving out buyer/seller contact information. Another issue is non-realty item addenda. For example, not including that all the furniture and home theater equipment will convey, causing increased problems for appraisers and lenders.
Shockingly, the report states that 30% of contracts submitted to the title company do not have the Berkshire Hathaway Home Services effective date filled in. Obviously, this creates a host of problems for all involved, and can have substantial (continued on page 4) legal ramifications. It’s worth noting that according to the Mondics Insurance Group, one of the top ten reasons an agent or broker may be sued is failure to comply with the time frames in the contract. Download the full report here, located in the Member Center of lubbockrealtors.com (login required).
Brokers Should Take Advantage of the Big Consumer Trends of 2014 by Jeremy Conaway
Last month’s Brokerage Design article advocated that brokers manage the consumer relationship as theirs to cherish, promote and add value to. It went on to point out that all too many residential real estate service providers were unaware that they were being targeted by digital disruption and that not only were these providers (read agents) not taking the steps necessary to capture and harvest effective consumer relationships but, more importantly, that some relatively competent third parties, such as portals, are actively counseling consumers that there was no need to have an early on relationship with real estate service providers at all. That piece pointed out that there are currently several digital disruptors engaging the real estate consumer. Without question, the one creating the most impact and buzz is the third party listing portal. In every marketplace there are brokerages and agents who are expressing outrage and fear regarding what they claim are inappropriate and unethical practices being engaged in by these 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. Some aspects of their behavior can be evaluated even now. The industry must understand that neither the strategies, nor the tactics being utilized by portals, reflect being mean spirited or unethical but rather that they are Page 3
absolutely and near perfectly tuned to the demands and expectations of the contemporary real estate consumer. This understanding might also be extended to the fact that even years after learning about the importance of consumer relationships, many real estate professionals and their associations refused to change their approach and attitude regarding consumers. This article assumes for a moment that one or more of our readers might have been convinced that consumer relationship migration was indeed being practiced within the industry, and that perhaps they should begin the journey of creating consumer centricity and a consumer experience within their firm’s sphere of influence. While the overall effort of facilitating these challenges can be complex many of their elements are, in fact, quite simple. Common sense can serve well to provide a cost effective soft start to such an initiative. An appropriate starting point for creating a consumer centric environment is to examine how your brokerage’s attitudes about consumers and their issues are actually communicated to the firm’s customers. The favored methodology for meeting this challenge is creating training programs that impact the attitudes of agents, managers and support staff relative to great consumer communications experiences and service.
REALTORS® on the Move Joe Hall—correction
Did not transfer to Jerry Kitten Broker from Century 21 John Walton, REALTORS®
Karolyn Davis-Gass
The WestMark Companies to Exit Realty of Lubbock
Janis Rothwell
J. Rothwell Real Estate to Keller Williams Realty
Mike Terry
Ultima Real Estate to Haveli Realty, LLC
Amy Furst
Keller Williams Realty to Today in Lubbock Real Estate
Natalie Day
Berkshire Hathaway Home Services, Anderson Properties to Day & Co.
Shawna Gibbons
Keller Williams Realty to Red Label Realty
Dick Van Hoose
McDougal, REALTORS® to Lyons Realty
Other Changes Traci Young (Exit Realty of Lubbock), cancelled MLS membership Meagan Thompson (Exit Realty of Lubbock), name change to Meagan Ethridge
The second step is to research, group study, and create an actual consumer centricity policy with associated best practices within your firm. The third step, and by far the easiest of these recommendations, is to assist your brokerage and its personnel and procedures to be sensitive to the needs and expectations of the current consumer. The theory here is, while you may not be ready to promote what you absolutely want the consumer to think about the real estate experience your firm is offering, you certainly don’t want to sabotage the consumer relationship by simply not knowing what the real estate consumer is thinking themselves. If, by way of example only, you know that many consumers within your market are sensitive to issues of water scarcity and waste, you may want to be sure that your organization is demonstrating a similar sensitivity. An errant irrigation system that leaves puddles on the pavement that consumers have to walk through may say more about you than whatever greets them at the front door. In other words, you might want to be sure that, while in the presence of your firm and staff, consumers are not subjected to circumstances that demonstrate, without even trying, that your firm is completely insensitive to current consumer attitudes. Why lose the consumer relationship battle without even trying? Some clients, when faced with this challenge, immediately throw up their arms and wonder how their firm could ever know such things about people they don’t know exist? The answer to that question has never been simpler. There is more consumer related information being captured, stored and analyzed in today’s business environment than ever before. Virtually every factor imaginable regarding the expectations and demands of today’s consumer is readily available. There are dozens of vendors who will provide this information in many formats. One of better of these sources is trendwatching.com. This highly rated website provides a great deal of very valuable information in formats and batches that are easily understood and relevant to the real estate industry. The following factors were taken from their current discussion. Page 4
In the 3rd Quarter 2014, what issues should brokerages be sensitive to relative to interacting with consumers and pursuing excellent consumer experiences? Consider the following: More and more consumers, especially trailing X’ers and Generation Y folks are acquiring a sense of guilt regarding their consumption patterns. This is not to say that they are changing their consumption patterns but it is to observe that they are feeling guilty and will respond gratefully to any effort by vendors to moderate that guilt. This factor is referred to as “guilt free consumption.”
More than ever before consumers are conscious of how their fellow consumers are making decisions in the marketplace and want to mimic that behavior. This behavior is called “crowd shaping.”
Today’s consumer is increasingly aware of the fact that China is not only emerging as an economic leaders but is also demonstrating leadership tendencies in the area of environmental sensitivity and product quality. Comments inconsistent with these positions are noticed.
The X’ers focus on healthy bodies is being matched by the Y Generation’s interest in healthy and well-functioning minds. Consumers are relating a great many architectural features to their impact on mental health.
It should come as no surprise that consumers are beginning to form negative attitudes about “too much data.” Delivering the right data in a minimized format is good business.
“Caring,” in all of its iterations, is becoming a primary consumer focus. Residential real estate offers a virtual goldmine with respect to all of the ways that caring can be demonstrated.
Take the time to read and learn about the details regarding the above trends. Discuss these trends with your team and identify how they will apply to the JULY MONTHLY MARKET COMPARISON consumer’s real estate experience. Ensure that the Categories July 2013 July 2014 Percent Change agent panel is informed Total Residential Property Sales 468 391 -16.5% regarding how they can use these trends to be more Total Residential Dollar Volume $72,213,666 $65,793,023 -8.9% effective with consumers. Average Single-Family Sales Price $154,303 $168,269 9.1% These simple activities are the foundation of what those third Median Single-Family Sales Price $127,500 $135,000 5.9% party portals are doing. We Total Active Residential Listings 1,193 1,136 -4.8% need to do this. We can do this. Total Pending Residential Sales 262 549 109.5% Months Inventory*
3.8
3.5
-7.9%
*Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity.
Year-to-Date Comparison Categories
Jan-July 2013
Jan-July 2014
Percent Change
Total Residential Property Sales
2,578
2,381
-7.6%
Total Residential Dollar Volume
$394,163,584
$386,421,722
-2.0%
Average Single-Family Sales Price
$152,895
$162,294
6.1%
Median Single-Family Sales Price
$123,350
$132,500
7.4%
-—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.
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.
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• Election Day is Nov. 4 • Register to vote by Oct. 6 • Early voting days: Oct. 20-31
Proposition 1 gives Texans a unique opportunity to provide billions more in reliable transportation funding – an estimated $1.7 billion in the first year alone – with no new taxes, fees, or debt.
“The constitutional amendment providing for the use and dedication of certain money transferred to the state highway fund to assist in the completion of transportation construction, maintenance, and rehabilitation projects, not to include toll roads.”
Texas Real Estate Political Action Committee (TREPAC) Investors—Levels Reached as of September 24, 2014
Total Year-to-Date Investments: $93,015 with 60% participation Crystal R ($2,500) Coby Crump Lisa Sellers Cade Fowler
Sterling R ($1,000) Karleen Boyd Jef Conn Carolyn Crowson Joy Daniel Kathy Davis Rusty DeLoach Bill deTournillon Norma Edwards Linda Ferguson Tim Futrell Linda Gaither Tim Garrett Fred Hardin Jay Herrin Cheryl Isaacs Nathan Jordan Ann Kearney Charles Kearney Rob Leatherwood Tony Lloyd Mark McMillan Joe L. Murfee, III Vickie Noyola Nancy Rawls Jerod Reep Jeff Sellers Dorinda Sherwood Winn Sikes Pam Titzell John Walton Dan Williams Jana Wuthrich
Capital Club ($500) Brian Aycock Brenda Bennett Michael Berg Bob Brandt Lisa Carswell Judy Cato Vanessa Dirks Kelley Elliott Tim Grissom Steve Gwinn Renessa Knowles Greg Luman Josh Putman Ginger Robertson Kirk Schneider
Lone Star Statesmen ($250) Cynthia Arriaga Wayne Backus Joe Bellar Doug Davis Michael Divin Curt Douglass Casey Doyle Doug Duncan Brad Elder Kent Gamble Beth Garrett Ella Glover Pat Ham Kendra Harris Larry Jones Cindi Lea Jana Longbotham Kathy Marable Chase Marberry Brett Paxton Jeremy Pool Jack Robnett Susan Shakespeare Steve Shanklin Liz Smart Beverly Sowell Shari Straley Gary Tapp
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.
110 Club ($110) Courtney Allen Stephanie Allison Tricia Anderson Lindsey Bartley David Bloodworth John Bost Leigh Anne Brozo June Burks Kim Burrous Rick Canup Julie Childs Mary Cleckler Bobbe Crawford John Darden Donna Dubose Brian Duncan Darlene Fillman Rick Fowler Greg Garrett Paul Garrett Chip Gilmour Mary Ann Grafft Ken Harlan Lanny Harris David Haymes Becky Householder Gwen Jackson Doug Jordan Nita Kiesling Sharon Lee Larry Leivas Don Lynn Terry Manz Mike McCarty Russell McGuire Trina Meadows Velma Medina David Myers Jimmy Noland Cami Paston Rita Paxton David Pritchett Chris Raney Emily Ratcliff Rod Reynolds Jim Rosson Ruan Samuels Johnny Stringer Lela Tackitt Gary Tapp David Terry Debby Tullis Donna Westfall La Donna Wichern Cindy Wilkinson Jon Willey
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. Invest on-line—log-in to www.texasrealestate.com.
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