Capital Area REALTOR® Nov/Dec 2012

Check out www.GCAAR.com for our latest updates!

Capital Area Realtor

®

The official newsletter of the Greater Capital Area Association of REALTORS®

November - December 2012

Inside This Issue GCAAR’s Got Talent...............................page 3 Ask the President..............................page 4 GCAAR in the News...........................page 4 International Committee...................page 5 Installation Pics................................page 5 NAR & MAR Director’s Report �����������page 6 Emeritus Members............................page 6 SW DC Seminar................................page 7 WCR Election....................................page 7 Green Resources................................page 8 Technology.......................................page 9 YPN Event.........................................page 9

USPS: 017-467

Volume 18, Number 5

Michael McGreevy Installed as 2013 GCAAR President The Fillmore concert hall in Silver Spring was again the hippest place to be on December 4 as Michael McGreevy was installed as 2013 GCAAR President.

Awards were given to the 2012 Affiliates of the Year Tony DeVol and Bill Rozek, Rookie of the Year Jessica Evans, and REALTOR® of the Year Pat Weed. Attendees included Maryland Association of REALTORS® (MAR) President Carlton Bouljai, CEO Mary Antoun, Maryland Delegate Heather Mizeur, Long & Foster Chairman & CEO P. Wesley Foster, Jr., and a host of other special guests.

Attendees were given a special treat this year – the GCAAR’s Got Talent Showcase! The Fillmore provided the perfect backdrop as performers sang and danced to the delighted audience. Got Talent pics on page 3, Installation pics are on page 5, and additional pictures are posted on GCAAR’s Facebook page.

MC & DC Market Report..................page 10

Congratulations to the 2013 Officers and Directors:

GCAAR Cares..................................page 14

Officers: President Michael McGreevy President-Elect Greg Ford Immediate Past President Bonnie Casper Secretary William Highsmith, Jr. Treasurer Tim Knobloch

Education Schedule........................page 15 Public Policy...................................page 16 2012 REALTOR® Expo................... page 20 Quiz................................................page 21

www.gcaar.com

Directors: Koki Adasi David Bediz Jamie Coley Suzanne Des Marais Carter Ferrington Dorie Glass

GCAAR Names Two Affiliates of the Year This year, GCAAR is pleased to announce two winners of our 2012 Affiliate of the Year Award – Anthony DeVol of Tradition Title and Bill Rozek of Embrace Home Loans.

Greater Capital Area Association of REALTORS® 8757 Georgia Avenue, Suite 600 Silver Spring, MD 20910

Tony is a native Washingtonian and has practiced real estate law in the Washington area since 1988, representing buyers, sellers, and builders. He is very involved with the real estate community as a licensed Real Estate Broker, and is a member of GCAAR’s Contracts and Clause Committee, which is responsible for drafting the Contracts used

by REALTORS® throughout Maryland and Washington, DC. Tony is also a Continuing Education instructor, and is a member of the American Bar Association and the Maryland and Montgomery County Bar Associations. He is the former CEO of RGS Title and the founding member of its MD/DC Operations.

Bill has been a mortgage banker for over 25 years and has been with Embrace Home Loans as a Senior Loan officer since October 1999. Bill has been a member of GCAAR’s Events Committee for three years, serving as Vice-Chair for 2012. He also served on the Rookie Committee in 2012, has volunteered with GCAAR at Rebuilding Together® for the last three years, and has supported RPAC and the Wounded Warriors Trust. Bill has sponsored and been a presenter at many GCAAR functions, most notably REALTOR® Fest, the annual education summit. Bill also has served on the Boards of various nonprofits and associations.

Jacqué Grenning Gwen Henderson Mynor Herrera Ellen Katz Vicky Lobos-Kirker Peg Mancuso

Follow Us on Twitter! @GCAARNow

Bill Rozek

Like Us on Facebook! www.facebook.com/GCAAR2

Anthony DeVol

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2012 November - December

Serving the Business Needs of OUR Professionals

Capital Area REALTOR®

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11/28/12 10:10 AM

Capital Area Realtor®

Serving the Business Needs of OUR Professionals

2012 November - December

A ssociation N ews 2012 Board of Directors President

Bonnie R. Casper

GCAAR Thanks Bonnie Casper for Her Leadership and Vision as 2012 GCAAR President!

President-Elect Michael McGreevy

Secretary

Gregory Ford

GCAAR’s Got Talent Highlights

Treasurer

William H. Highsmith Jr. , JD, GRI

The culmination of a festive evening on December 4 was the GCAAR’s Got Talent Showcase. Contestants submitted their audition entries and five lucky performers were chosen to perform. Jazz artist Marcus Johnson doubled as emcee for the evening, introducing each act with humor and panache. Attendees got to vote by text for their favorite performer. The event ended in a tie with Greg Hawley and Darrell Parsons splitting the VIP Package from the Fillmore – two tickets a piece to the concert of their choice!

Immediate Past President Adrian Hunnings

Chief Executive Officer Michael Moran

Talent Showcase Winners! L-R: Julie Parsons, Darrell Parsons, and Greg Hawley, with Marcus Johnson

Directors

David Bediz Suzanne Des Marais Carter Ferrington Mynor Herrera Ellen Katz Tim Knobloch Elley Kott Emiliana Lobos-Kirker Margaret “Peg” Mancuso Obiora “Bo” Menkiti Gerard “Gerry” Occhiuzzo Prabhjit Singh

Talent Showcase Winners L-­‐R: Julie Parsons, Darrell Parsons, and Greg Hawley, with Marcus Johnson

Editor

Bobette Banks

Advertising Representative Arlene Braithwaite

Capital Area REALTOR® (USPS 017-467) is published five times a year by the Greater Capital Area Association of REALTORS®, 8757 Georgia Avenue, Suite 600, Silver Spring, MD 20910.

Periodicals postage paid at Silver Spring, MD. Member subscriptions account for $10 of each member’s annual dues.

Annual subscriptions are available to non-members for $25.

Darrell Parsons sings, a medley of “Have Yourself a Merry Little Subscription inquiries may be sent to Capital Area REALTOR® at the above address. Copyright© 2012 by the Greater Capital Christmas/O Sole Mio Area Association of REALTORS®. All rights reserved.

Darrell Parsons sings a medley

POSTMASTER: SEND ADDRESS CHANGES TO CAPITAL AREA REALTOR®, ATTN: GCAAR, 8757 Georgia Avenue, Suite 600, Silver Spring, MD 20910.

Renaire Rivers sings “The Greatest Love of All”

Brandon Green sings, “Thankful” Brandon Green sings, “Thankful”

Renaire Rivers sings “The Greatest Love of All”

The Greater Capital Area Association of REALTORS® makes no warranties and assumes no responsibility for the accuracy of the information contained herein. The opinions expressed herein do not necessary reflect the opinions of the officers, directors or staff of the Greater Capital Area Association of REALTORS®.

The Greater Capital Area Association of REALTORS® accepts submissions of articles and photographs and these items become the property of the The Greater Capital Area Association of REALTORS®. The publisher reserves the right of full editorial authority and to decline publication of any article not deemed proper. Deadline for all submissions, including camera-ready advertising on disk or film, is the first of the month prior to publication. Reprint with permission only. Reprint permission may be obtained by contacting the Greater Capital Area Association of Tango moves from the Tango Seekers REALTORS® at 301.590.2000; via fax at 301.590.2248; or via e-mail at bbanks@gcaar.com.

Tango moves from the Tango Seekers

REALTOR® is a registered collective membership mark that identifies and may be used only by real estate professionals who are members of the National Association of REALTORS® and subscribe to its Code of Ethics.

Tango moves from the Tango Seekers

Greg Hawley sings, “Feelin’ Good”

Not Receiving GCAAR or DCAR E-mails?

Greg Hawley sings, “Feelin’ Good”

Contact GCAAR’s Communications Department to

get plugged in again at communications@gcaar.com.

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Serving the Business Needs of OUR Professionals

2012 November - December

Ask the President Bonnie Casper 2012 GCAAR President Q. I always thought that GCAAR automatically deducted my dues from my credit card. I was just told that I had to go online to pay? Why can’t you just charge me so I don’t have to track my bill?

-An agent from Capitol HillA. Well, you’re darned if you do and darned if you don’t. We (as in GCAAR) don’t keep your credit card on file since the dues are only charged once a year. Most people don’t want us to have the ability to charge them at whim and more times than not agents change their preferred credit card within the year. As a matter of fact, the vast majority of our members like the greenness of our electronic billing system. Going paperless enables the association to save money – and for you to save money as well.

Q. 2013 is not an election year (thank goodness). Why are you still collecting for RPAC (the Realtors Political Action Committee)? I thought that money was only for political campaigns.

-A manager in WheatonA. Even though it is not an election year, we never know what’s

Capital Area REALTOR®

going to come up in politics. We’re a large, important association of professionals, and we need to have a big impact. In order to do that we need the funds not only to help support candidates, but to conduct campaigns to oppose issues like eliminating the mortgage interest deduction. It is important for us to make sure those with political power hear us before they take action. I’d encourage you to give every year and think of it as an investment, your insurance policy for a strong pro-housing policy.

Q. Why are there always so many changes to the contract? It seems as if whenever I get used to it one way you change it. I suggest you go at least one week without making a substantial change!

-Agent in Potomac A. Hah. It just seems like that! We try to make sure that most changes to the contract are caused by changes to law or regulations. We do try to bundle the changes so that they come out together, making sure that the contract is changed in all the places necessary to conform to the original change that was made. Remember, in terms of the Regional Contract, multiple jurisdictions impact the language in the contract. In regard to the MAR contract, MAR in addition to our own association, add changes or addenda. I know you’ll agree with me that while our contracts serve us well, there’s always room for improvement.

Also, if you have any questions about the contract, please remember you can call our legal hotline for help.

Bonnie Casper is the 2012 President of GCAAR. She can be reached at bonnie@LNF.com.

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STEP 2: Call Debbie Bell at 301.590.8771

Step 3: Collect your $250!

* Actual Gold Star Sticker is used, not just a star graphic. Only 1 winner per issue. Winner must present the issue of CAR with the sticker to claim winnings. If no winner is identified by CAR’s next mailing, the winnings are forfeited.

in the

News

We’ve got some great quotes, but couldn’t fit them all in!

Check out where GCAAR’s been making news!

State’s Home Sales Market Continues Rebound The Gazette November 16, 2012 Bonnie Casper, 2012 GCAAR President Message to Lawmakers: Make Transportation a Priority The Gazette November 16, 2012 Bonnie Casper, 2012 GCAAR President Names & Faces: Patrick Weed Named REALTOR® of the Year for 2012 Gazette.net November 16, 2012

People on the Move: REALTOR® of the Year Pat Weed Washington Business Journal November 2, 2012 Fed Spending Help Spur Housing Recovery in DC; Fiscal Cliff Threatens It Watchdog.org October 23, 2012 Bonnie Casper, 2012 GCAAR President Washington, DC Housing Market Appears to Be Cooling The Washington Post October 10, 2012 Bonnie Casper, 2012 GCAAR President

Capital Area Realtor®

Serving the Business Needs of OUR Professionals

Foreign Investment Hot Topic at International Event On October 31, nearly 100 REALTORS® attended the International Committee’s event on Legal Aspects of Foreign Investment in U.S. Real Estate featuring foreign-investment professionals Keat Bhutani and Serge Bauer, Esq. Information presented at the event triggered many questions about foreign real estate acquisitions and tax issues involving Visa regulations.

#1 2013 GCAAR Board of Directors

2012 November - December

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The International Committee not only held a record-number four events in 2012, but this event was also the single-most well attended event in the history of the International Committee.

On behalf of the International Committee, 2012 Chair Hildy Pollard would like to thank all the GCAAR members for their participation at the international events this year and to wish each of you a Happy Holiday.

2013 GCAAR Installation Images

#2 2012 GCAAR President Bonnie Casper with incoming President Michael McGre Front Row L-R: Ellen Katz, Vicky Lobos-Kirker, Gwen Henderson, Michael McGreevy, Bonnie Casper, Mynor Herrera, Jacque’Grenning, David Bediz Back Row L-R: Koki Adasi, Peg Mancuso, Suzanne Des Marais, Jamie Coley, Tim Knobloch, Bill Highsmith, Greg Ford. Not Pictured: Carter Ferrington, Dorie Glass

L-R, Maryland Delegate Heather Mizeur, 2013 GCAAR President Michael McGreevy and Long & Foster Chairman & CEO P. Wesley Foster, Jr L-R, Maryland Delegate Heather Mizeur, 2013 GCAAR President Michael McGreevy, and Long & Foster CEO P. Wesley Foster, Jr

2012 GCAAR President Bonnie Casper with incoming President Michael McGreevy

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Serving the Business Needs of OUR Professionals

2012 November - December

NAR, DCAR & MAR Director’s Report Bonnie Casper 2012 GCAAR President, NAR & MAR Director One of the most important roles of the National Association of REALTORS® (NAR), the Maryland Association of REALTORS® (MAR) and the District of Columbia Association of REALTORS® (DCAR) is to advocate actively and effectively for federal and state policies that strengthen the ability of Americans to own, buy and sell real property.

Over the past year, and especially in this past election cycle, we’ve been very busy trying to support those candidates who were pro-housing, to ensure that policies such as the mortgage interest deduction are not sacrificed as a shortsighted and quick fix for our fiscal problems.

A major element of NAR’s lobbying strategy is to designate members to liaise with members of the US Senate and House of Representatives. I have the privilege to be the NAR contact for Chris Van Hollen, US Congressman from Maryland, and often have the opportunity to speak with him concerning REALTOR® and homeownership matters. DC’s representative to Delegate Eleanor Holmes Norton is Brenda Small. It’s great to be able to have direct input to policymakers regarding pending legislation critical to our members and consumers.

Another important role is taking our message on homeownership and the professionalism of REALTORS® to the public directly through websites, print and media advertising and advocacy. NAR is constantly revamping its TV and magazine ads to have a positive theme on homeownership and

Capital Area REALTOR®

the benefits of using a professional REALTOR®. We expect NAR to roll out a new season of very well received ads and presentations within the next few months.

GCAAR’s leadership just returned from the annual NAR Board of Directors meeting and conference in Orlando, and it was good to see so many GCAAR, MAR & DCAR members there.

The Conference provides the opportunity to take classes on a wide range of topics and to network with colleagues from around the world as well as from other parts of the US. I’m going to continue as an NAR Director for 2013, along with our new President and President-Elect.

In addition, I’ve been elected to a two-year term as a District Vice President of the Maryland Association of REALTORS® (MAR) for Montgomery County. This position gives us a voice in Annapolis, and I’m very pleased to follow Dennis Melby, former GCAAR President, who has held that post for the past four years. I know we all thank him for his service and wish him well. Joining me in Annapolis are Elley Kott and Michael McGreevy who will serve on the Board of Directors of MAR, along with Ken Smondrowski, who will represent the Greater Washington Commercial Association of REALTORS® (GWCAR).

On a personal note, as the 2012 President of GCAAR, I thank you for your support this year. Whether holding a development conference in DC, testifying in Rockville, or marching in the rain to preserve the mortgage interest deduction in Annapolis and on the Mall, it has been an honor and a privilege to serve as your President. I have appreciated your encouragement, calls, and notes throughout the year, and I thank you for giving me the opportunity to serve.

__________ For 2012 Bonnie has served as GCAAR President, NAR Director, DCAR Director, MAR Director, MAR RPAC Trustee, and MRIS Director. She would have done more but she also had to do some business. She can be reached at bonnie@LNF.com.

GCAAR Welcomes New Emeritus Members!

The National Association of REALTORS® Emeritus status is given to those REALTORS® who have 40 years of membership in the national organization. GCAAR is proud to congratulate the following members who have reached Emeritus status:

Leon Andris Antonia Bryk Jennie Chow Janis Cook W. Ronald Evans Stephen Fleischman Michael Fox Mary Rey Girardi

Joan Healey Helen King Kathleen Kluk Sheila Leifer Donald Lipscomb George Matheos Bessie Penczak Linda Rosenkranz

Kenneth Simons Elaine Stewart Lynn Welle Carol Wheeler

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2012 November - December

GCAAR Development Seminar Dives Into SW DC Transformation The SW DC waterfront and Arena Stage provided the perfect background for the latest GCAAR Development Seminar on September 28.

GCAAR President Bonnie Casper welcomed a captive audience who lunched and learned about the changes coming to the SW DC waterfront at the stellar reconstructed Arena Stage. The discussion was moderated by Harriet Tregoning, Director of the Washington, DC Office of Planning, and included Charles King, Principal, CSG Urban Partners; Steve Moore, of the SW DC Business Investment District (BID); David Smith, VP, Forest City Washington; Alan Lederman, Development Partner, Urban Atlantic, LLC; and Matthew Steenhoek, Associate Development Director, PN Hoffman & Associates.

Sky House, Waterfront Station, and the St. Matthew’s renovation, were just a few of the projects that were featured. The speakers discussed what’s in the plan and how much residential and commercial development will be built and where.

L-R: GCAAR President Bonnie Casper, Harriet Tregoning, Alan Lederman, David Smith, Charles King, Matt Steenhoek

R: GCAAR President Bonnie Casper, Harriet Tregoning, Alan Lederman, David mith, Charles King, Matt Steenhoek

tendees enjoy lunch at the new Arena Stage

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Attendees enjoy lunch at the new Arena Stage

Gwen Henderson Elected as 2013 Women’s Council of REALTORS® President On December 5, GCAAR members Gwen Henderson and Samar Caverly were sworn in as 2013 President and President-Elect for the Greater Capital Area Women’s Council of REALTORS® (GCA WCR) respectively. GCA WCR showcases and promotes the achievement and impact of women in the real estate industry, the business arena, and broader community.

The new officers were installed by Lynette Bridges Catha, 2013 Maryland WCR Governor. Others elected to office were: Luba Vidgop Barg, Secretary; Lamont Green, Treasurer; and Elois Wiggins as Vice President of Membership. After the installation, attendees enjoyed the affiliate table fair which featured an abundance of great door prizes.

Monthly meetings are held at the Norbeck Country Club in Rockville on the 3rd Wednesday of each month from 9:00 a.m. to 11:00 a.m. For information regarding membership and programs, please contact Gwen Henderson at Gwen.Henderson@lnf.com.

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Newly-elected board members: L-R, 2013 President Gwen Henderson, 2013 President-Elect Samar Caverly, Luba Vidgop Barg, Lamont Green and Elois Wiggins being installed by Lynette Bridges Catha.

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Serving the Business Needs of OUR Professionals

2012 November - December

Capital Area REALTOR®

Green Resources from GCAAR’s Green Committee Greening the district’s construction code

On October 26, members of the Green Committee attended a District Building Industry Association (DCBIA) event on “Greening the District’s Construction Code.” In March of this year, the International Code Council published the first ever International Green Construction Code. Private- and publicsector members of the Green Technical Advisory Group (TAG) of the District’s Construction Codes Coordinating Board (CCCB) have been working since that time to develop reasonable modifications to the model code that reflect local needs and realities. The Codes are set to be finalized by May/June of 2013, with full compliance by Spring of 2014.

Members who attended noted how it was nice to see so many industry professionals show such a strong interest in the District’s Green building initiatives. While the event was mostly focused on commercial space and large residential buildings, as real estate professionals we now can educate people on the fact that buildings built now have various Green features in order to meet DC’s new standards.

Greening the MRIS

The Green Committee has been working diligently to develop recommendations to Green the MRIS. Most recently, they formed an MRIS Work Group which reviewed more than 25 MLSs that have already incorporated Green elements. The Work Group studied best practices across the nation to see how our local MRIS could benefit from having more intuitive resources for REALTORS® interested in showcasing environmentally conscious features of their properties.

The Green Committee is pleased to report that the recommendations have been submitted to MRIS. Key points include: Green features should be highlighted in green; hover fields should be included with descriptions of each green field and identified with a green leaf symbol; and a glossary should be included or linked with fuller definitions of green fields. Next, the Green Committee will work on formulating an updated set of specific and easily accessible Green fields for Matrix and Keystone.

REALTOR® presence at the event was a valuable opportunity to meet and network with architects, engineers, non-profit and government personnel all involved in various aspects of the real estate industry. The Green Committee looks forward to more outreach activities next year at other events of interest to environmentally conscious REALTORS®.

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Save on Your Heating Bills This Winter

Seal Your Home Seal the holes and gaps around the foundation, windows, doors, and attic of your home to stop conditioned air from leaking out and prevent outside air from leaking in. The combined effect of these leaks often equals that of leaving a window open all day. Stopping air leaks makes your home more comfortable and decreases the demand on your heating and cooling system, reducing energy demand and saving you money.

Quick Tip! Rope caulk from a home improvement store seals gaps around window frames during the winter. It’s easy to install and to remove.

Seal Your Fireplace Consider using an inflatable bag to seal your chimney when the fireplace isn’t in use. The bag fits beneath the chimney’s damper and is inflated to fill the space. Be sure to deflate and remove the bag before starting a fire, and let the chimney cool completely before reinstalling the bag.

Install a Programmable Thermostat You wouldn’t leave your TV on when no one is home to watch it, so why keep your heating or cooling system running at an ideal temperature when you’re not home? Install a programmable thermostat to automatically regulate the temperature in your home. In the winter, lower the temperature setting while you’re away or asleep. In the summer, increase the temperature setting while you’re away. These actions can save you 2 percent on energy costs for each degree of change.

Source: Montgomery County Department of Environmental Protection

Capital Area Realtor®

Serving the Business Needs of OUR Professionals

2012 November - December

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T echnology 13 Easy Steps to Optimize your Website for SEO

By Marci James

Social media marketing may be hot, but online search is still king. That makes it imperative for real estate professionals to have a website that finds itself at the top of major search sites like Google and Bing. If you do not show up at the top, you are missing an opportunity to drive qualified traffic to your site and the chance to be discovered by potential new clients.

2. Choose a URL that includes keywords.

Instead of a short URL, try a longer URL that includes keywords. Keywords are the main terms clients will type in to a search engine as they look for the information you have to offer.

That could be your name, your city’s name or the obvious, terms related to real estate. Use this guide of keywords that are great for SEO to instantly make your site more searchable.

So what can you do to make your website search-optimized? If you are tech savvy or have a WordPress site, you will find most of the tips below can easily be accomplished without help. If you are not tech savvy, simply ask your webmaster for help. With this list in hand, you and your webmaster can make your site a search magnet!

3. Every page on your website should have a unique keyword phrase that is included in the title, tag, body, and meta description. I recommend that you choose one keyword phrase for EVERY page of your site.

That keyword phrase should be in the page title, the page text, the page tags, and the meta description for that page. The meta description should include keywords and phrases, but should NOT duplicate the page title. If you do not know how to do this, check with your webmaster.

1. Submit your website to as many major search engine directories as possible.

There are hundreds of search engine directories. Most are free, some charge a fee.

Use only the free ones; they work just as well as the paid ones. This process can get time consuming, but it’s worth the effort. Free Web Submission is a tool that you can use to help you with the process.

4. Write a lot of text content for your site.

Include those chosen keywords and phrases in your writing, but write for your audience, not for SEO. Depending on your area of expertise, you could add a page for every neighborhood

or community you work within. You could then write a page for buyers, a page for sellers, a page for short sales, a page for foreclosures, a page for the first-time homebuyer, or a page for relocation, etc. The more content you have, the more searchable your site will be.

5. Write about HOT topics! Google gives priority to fresh/hot content. So if there is something exciting happening in your community or in the news, try adding the keyword associated with the topic to a page or post on your site. You could write a review of a new bestselling book or movie that is playing at your local theater. Or write about a big event that is occurring in your town. Whatever it is, make sure you stay topical and relevant!

6. Create pages with formatting – headings, bullet points, lists, bolded text.

Google loves formatting because formatting makes a page easier to read. Check out all the formatting in THIS post! And in my opinion, formatting makes a page easier to read as well!

7. Optimize all of your website images for the web (72 dpi). Google gives priority to images that load quickly. If you upload super continued on page 13

YPN Group Talks Social Media and Networks Over Sushi GCAAR’s Your Professional Network (YPN) was busy this fall as they helped members navigate the tricky social media waters in September and networked over sushi in November. On September 20, attendees met in Georgetown to hear a panel on Social Media Pitfalls featuring Joy Siegel, President/Attorney at Law, Settlement Pros; Shannon Williams King, recognized Social Media Expert; and Darrin Friedman, nationally recognized Managing Broker, Real Living | At Home; who told the group what NOT to do on social media. Here are a few timely tips:

•

Don’t post photos of a house you are interested in buying on social media sites. You don’t know the terms that the seller agreed to for marketing the property and you may hurt your negotiating power!

•

Disable the locator feature on your Smartphone if you are putting a house on social media. If the locator is on, people will know exactly where the home is which could be a major safety concern.

Darrin Friedman, Joy Siegel and Shannon Williams-King

On November 1, guest nibbled and chatted over sushi and other Japanese fare at Kushi Izakaya and Sushi.

2012 GCAAR President-Elect Michael McGreevy, DCAR Past President Elizabeth Blakeslee, 2012 DCAR President Ed Downs, 2012 YPN Chair Colin Johnson

YPNers meet up at Kushi On November 1

Attendees enjoy the evening at Kushi Izakaya

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Serving the Business Needs of OUR Professionals

2012 November - December

Capital Area REALTOR®

Montgomery County & DC Market Report

By Fred Flick, Ph.D., Consultant/Housing Economist

Fred Flick

Through the first ten months of the year, the Maryland housing market has come back solidly.

Over this period, property sales totaled 45,150 units and they were up almost 4.1% from the same period in 2011. Similarly, the average price of $292,519 rose almost 5% from the comparable 2011 figure; the median price of $246,782 jumped almost 7.3% from the same time last year. This is truly good news.

In October, home sales experienced a double-digit jump, with prices seeing slightly slower rates of increase. Maryland’s total sales (4,313 homes) leaped 14.4% compared to a year before, and both price measures rose significantly.

Statewide, the average home price came in at $282,014, almost 7% above a year before. And, the median price of $239,802 was up over 8% from October 2011.

Single-family prices are doing at least as well or better than sales. The picture for prices has been restored to a positive annual trend, both for average and median prices. For the first ten months of this year the average price was $528,009, and the median was $427,500. In 2011, the average single-family home sold for $515,161 and the median priced unit cost $405,000. By comparison, through October 2012 prices have risen by about 2.5% and 5.6%, respectively. In 2009, annual prices bottomed out at $480,931 and $385,000, for average and median, respectively. Thus, through October, average and median prices are up 9.8% and 11% from the bottom.

Montgomery County Sales Market Single-Family Market Montgomery County single-family sales have continued to significantly improve into the early fall. October year-to-date contracts (7,230) were up by 6.3% from a year ago; and, new contracts for the month (728) rose 5.5% compared to last October. Paralleling the performance of contracts, single-family settlements for the first ten months (6,501) increased by 5%.

Furthermore, monthly settlements (556) leapt 14.2% from a year before.

October Condominiums and Cooperatives The condo/coop market also improved a lot throughout the summer period. Year-to-date sales contracts and settlements were up substantially compared to the first ten months of 2011. Through October there were 2,123 contracts, a rise of 6.3%. But, new contracts for the month (218) slipped 6% from last October. Year-to-date settlements (1,893) behaved about the same as contracts and rose almost 5%. Moreover, 171 monthly settlements were almost 15% higher than the level of October 2011.

Continuing a trend set early in the year, October year-to-date listings volume was much lower compared to October 2011. Total single-family active listings of 1,821 properties were 28% below the first ten months of 2011. And, October monthly new listings (810 units) were up a meager 1.3% from a year ago. At the October contracts pace, there was a very short 2.5 months supply. As we’ll see below, this has had a positive effect on seller’s prices, even if buyer’s choices are slim.

Similar to the single-family market, October condo/coop inventory dropped like a rock below the 2011 level. Specifically, total actives through October (408) were 42% below last year’s comparative level. Furthermore, October new listings were less than one percent over the rate for a year before. At the October contracts pace, there was less than a 2-months supply of properties.

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The phenomenon of tight inventory has helped support prices -- the average price for 2011 is the bottom of the condo/coop slump that started in 2009. With the end of the summer season, condo/coop prices finally hit a bottom. Through October, the average and median prices were $249,742 and $209,500, respectively. These prices are higher than earlier in the year and they are 4.7% and 10.3% above the 2011 average ($238,441) and median ($190,000). And, the 2011 figures were 24% and 27% below the 2008 highs of $312,720 and $260,000. Finally, the great slide is over.

Washington, dC Sales Market

By Fred Flick, Ph.D., Consultant/Housing Economist Overall, the sales trend in DC has been strong but the District has continued to suffer from a shortage of inventory. This high demand for properties has caused strong rises in prices and multiple offers.

In fact, October’s 51 average days on market is down 30% from the 73 days of October 2011. As can be expected, the average listing price for all sold properties was up almost 5.5% from a year ago at $539,886. Furthermore, the average sales to original listing price was almost 97%. Sellers are largely getting what they want.

On the unit volume dimension, October’s total unit sales totaled 527 – up 25% from a year ago; and, the sold dollar volume was $280,139,089 – up about 34% from last year. However, there is still a lack of inventory -- 1,416 total actives in October are down 36% from a year ago, and the 772 new listings through October were down about 4% from a year ago.

Single-Family Homes While the spring single-family market was up solidly, by fall actual year-to-date settlements of 3,075 homes were down 3% from October 2011. Nevertheless, year-to-date contracts edged up 1.6% (3,445) and October single-family contracts (397) jumped 8.5% from a year before. Settlements (268) also bounced 9% from October 2011.

2012 November - December

Similar to Montgomery County, the District’s single-family inventory has been down all year, with the lowest level in August.

October was the second lowest level at 681 total actives. This is down 38% from the 1,106 units in October 2011. Similarly, new single-family listings for the month (412) slipped 7% from a year before. This trend is likely to continue given the economic uncertainty associated with the local economy and federal budget and tax policy.

As expected, the tight inventory situation is mirrored in the trend of prices. Over this year, single-family average prices have risen almost 9% compared to the average for 2011; median prices are up 16%. Through October, the average single-family home cost $643,954 with the median at $522,000. This trend is phenomenal compared to the national picture. When we compare what has happened since 2009, DC single-family home prices have risen 17% (from $551,236) for the average and 28% for the median (from $408,000) priced home. This incredible appreciation occurred during a period of deep recession in other markets around the country.

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2012 November - December

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Market Reports, continued from page 11 October Condominiums and Cooperatives Year-to-date October contracts were up 21% (2,879) and settlements rose 15% (2,610) from a year ago. Sales for the month were outstanding as well. Contracts jumped 23% over last October totaling 302 units. Moreover, settlements of 259 properties vaulted 45% from October 2011 levels. The highest proportion of sales (47%) was concentrated in the $300,000 to $499,000 price range.

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Economic JOBS AND GROWTH Economic growth has slowed but the numbers are understandable considering the magnitude of the “Great Recession” and severity of financial dysfunction. The Bureau of Economic Analysis’ third quarter “advance” estimate was 2% even. In the second quarter real economic growth came in at a down trending 1.3%; first quarter real GDP increased 2%. It is possible that the third quarter number will be revised downward, but it appears that the economy is generally hovering around a 2% average real growth rate. Note this “real” figure subtracts out inflation of roughly 2%, so the actual ‘nominal’ dollar growth is closer to 4%. Over the past year stronger housing markets have helped stabilize economic growth.

Housing Industry Production The national housing industry is finally out of the housing recession.

The new residential home sales rate for September was 389,000 units (seasonally adjusted and annualized rate, saar). This was 27% above the September 2011 rate and 5.7% above August 2012. New home inventory was at a 4.5 months supply in September, down a bit from August. Prices also surged in September. The average price of $292,400 leapt 14.5% from a year before; and, the $242,400 median jumped 11.7% from last September.

Low inventory has helped immensely with prices. This year, October saw the second lowest level at just 707 actives – down 34% from a year ago. At the October contracts pace, there was only a 2.3 months supply of units. And, new listings of 360 units were about the same as in October 2011.

October had incredibly good news for new home construction. Privatelyowned starts (894,000 units, saar) were up 3.6% from September, and vaulted 42% from October 2011. While single-family home starts (594,000), were down 0.2% from the previous month, they were 35% above a year before. Builders are increasingly optimistic about the business. While total privately owned housing permits (866,000) slipped 2.7% from September 2012, they were about 30% above the rate for October 2011. Single-family permits (562,000) were 2.2% above September, and 27% higher than last October.

The national resale housing market continues to come back. October single-family home sales rose 1.9% (4.22 million, saar) from September and were almost 10% above the pace of October 2011. Furthermore, the single-family median price ($178,700) jumped 11% and the average ($226,700) was up almost 10% from last October. Existing condo/coop sales (570,000 saar) rose 3.6% from September, but leapt 21% from October 2011. And the condo/coop median price came in at $177,500 -- up almost 12% from a year before; the average condo/coop price ($223,000) rose 10.5%.

Through October, condo/coop prices averaged $423,931 and were up just 2% over the average for 2011. Indeed, the average price has risen only 3.4% since the low point in 2009. Not surprisingly, the lower priced units saw more appreciation. Through October, the median price of $380,000 was up almost 5%, and “middle” units have seen their values increase by 6.7% since 2009.

For all existing homes, inventory totaled 2.14 million properties, and it represented a slightly less than ‘normal’ 5.4 months supply. In 2011, end-of-year inventory represented an 8.2 months supply and at the end of 2010 there was a 9.4 months supply. While there still exists a “shadow inventory” of defaulted homes that will eventually come on the market, courts have slowed foreclosure processes and banks are carefully managing the when, where, and how much of foreclosure auctions. This has no doubt helped support prices. Also, with prices and interest rates at recent historic lows, investor demand for single-family rentals has brought the market back.

Economic Policy, Interest Rates, and Inflation The Fed will continue buying bonds and trying to force interest rates lower. This is a good policy for now since inflation is around the 2% mark. Wall Street is already betting the Fed will be leaning harder on interest rates, buying more bonds, and that low capital gains and dividend tax rates are already out the window. Such a policy will continue to be good for housing and the Fed has publicly acknowledged that the housing needs to be stimulated.

The economy is still in a slow growth mode while the President and Congress are trying to work out a deal to hold off about $100 billion in spending cuts in 2013. A significant percentage of those cuts would hit this region hard. Congress is back in session working on an agreement to postpone the ‘fiscal cliff ’ budget cuts. Since we are still hurting from the

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2012 November - December

lack of fiscal stimulus, the last thing we need is a big budget cut, especially locally. What is most likely is that they will postpone the cuts for about a year, and then they will fight over tax rate rises versus base broadening or capping deductions. The end result has to be a bigger tax bill for almost everyone, especially homeowners. The stock market will still be jittery through 2013, although much of that is due to the world economic and political situation. However, the government is not through with financial regulation and that will continue to put pressure on banks and financial institutions.

Consumer Prices and Energy Costs The October Consumer price index increased 0.1 percent from the September value; however, over the previous 12 months, the index rose only 2.2%. This was primarily due to an increase in energy commodities and gasoline costs. However, now gasoline prices are declining (except in areas hard-hit by hurricane Sandy) as the industry shifts to the lower cost fall-winter blends. Moreover, when food and energy costs are taken out of the October index, the annualized “core” inflation was still only 2% -- a number we can live with.

A major issue for the housing industry is how the mortgage interest deduction will be treated. A cap on total deductions will definitely hurt homeowners in high income and high housing cost states. Also, in high tax states a general cap on deductions will limit the deductibility of property taxes. Nationally, only about a third of taxpayers itemize, usually those in the middle- and upper-income groups. Most taxpayers -- about two-thirds of filers -- just take the standard deduction whether they are buying a home or not. However, in Maryland about 49% of taxpayers take itemized deductions. Also, over 40% of filers in Connecticut, New Jersey, and Virginia itemize. In 2010, average itemized deductions exceeding $28,000 were taken in New York, the District of Columbia, Connecticut, New Jersey, Maryland, and Massachusetts.

Examining the key components of the October index over the previous year: food prices edged up 1.7%; housing shelter costs (mostly rents) rose 2.3%; and, apparel prices bumped 3%. Nevertheless, medical care services rose almost 4%, while medical care commodities were up only 3% from October 2011. Energy commodities jumped 8.6% -- gasoline was up 9.1% and fuel oil skipped 5.6% from last October, likely due to some regional supply problems and the impacts of Sandy. But the best news was that energy services (electricity and natural gas) actually decreased 3%, due to an 8.4% fall in natural gas prices. In general, inflation seems to be at worst about 2%, and likely on a “flat” trend.

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The Bottom Line Although it took a while, real estate markets in the area have vastly In California, 36% took itemized deductions and the average total amount improved, but they are still likely to fluctuate with local economic impacts. was $33,901 -- the highest in the country. Also, the mortgage deduction Since the President’s re-election, the White House and Congress have been in California averaged $15,755 – again, the highest in the country. These working on legislation to shift the “fiscal cliff ” budget cuts to sometime states are traditionally Democratic and have high-income populations, next year when they can focus on longer term fiscal and tax reform. This is high home prices, and high state and property tax rates. The politics of the best approach, since all sides will need some time to figure it out. higher tax rates versus base broadening and capping will be very politically interesting to observe, especially from this region.

Nationwide, however, there are still a lot of foreclosures pending and, consequently, more housing inventory to plow through. But, mortgage Mortgage Interest Rates lending seems to be easing up and there are some improved lending proThe mid-November Freddie Mac survey showed that average mortgage grams to refinance mortgage balances that will help support market prices. interest rates are still around historic lows. In those results, the 30-year fixed-rate mortgage averaged 3.34%, while 1-year adjustables (ARMs) Nevertheless, just like the labor market, there still will be ups and downs in averaged 2.55%. Fifteen-year loans came in at 2.65% and 5/1-yr. ARMs housing for the near future. The most recent crisis is with FHA. Current were very affordable at 2.74%. These rates are 10 to 20 basis points below data show the FHA insurance fund was insolvent at the end of September. those at the end of the summer. Since the Fed plans to continue its policy Consequently, FHA will need government cash infusions, just like Fannie of buying mortgage securities and long-term Treasuries well into 2013, and Freddie have been getting. Unfortunately, the financial and real estate longer-term rates could even go lower in the next few months. finance crisis is the gift that just keeps giving. It will not likely be finally resolved until late in the decade.

Technology, continued from page 9

Submission” is anchor text for the link it points to. Anchor Text is given LOTS of priority by search engines, so choose your anchor text carefully, using lots of great keywords and phrases.

by simply adding the Google Analytics Plug-in.

Study the analytics on a regular basis and change your techniques based on what’s working and what’s not working. You should see your site steadily rising in search engine rank.

8. Use outbound links. Outbound links are hyperlinks that you create within your text. There are two types of outbound links: Outbound links that go to your own site and outbound links that go to other sites. I recommend placing two outbound links to other content/pages on your site on every page of your website. Also include at least one link to a website other than yours. Linking to other high-ranking sites is a great way to increase your SEO. The search engines give your site extra SEO juice when you link it to other highranking sites. When you add the link, be sure to add it so that the link opens in a new window.

That way, visitors will not be leaving your site.

10. Incorporate your blog into your website. If you have a blog, it should live on the same URL as your website. That way, your website benefits from the SEO your blog posts create.

13. Consider adding a good quality SEO plugin to your site. If you have a WordPress site, some great plug-ins include All in One SEO, Platinum SEO, and SEO by Yoast.

9. Use Anchor Text. The text that you highlight for an outbound link is called “Anchor Text”. In No.1 above, “Free Web

12. Create a Google Analytics account and place its tracking code on every page of your website. This is very easy to do in WordPress,

high resolution images, you could be hurting your SEO. Also add an ‘alt’ tag with your keywords to every photo on your site.

11. Add a social sharing plug-in to your site. Include the Facebook Like button, Facebook share, Google+ share, and Twitter share buttons on each of your website pages.

You may want to include Linkedin as well.

This will encourage sharing of your content.

Each time a page is shared, it creates a backlink which increases your SEO. Plus it’s really fun to see your site being shared by visitors!

There you have it. If this feels overwhelming, just take it one step at a time. Try submitting your site to the directories. When you’re comfortable, take one page of your site and optimize it with a Keyword Phrase that you add to the title, body, tags, and meta description.

Once you start, you’ll begin to understand the process, and see that it’s really quite simple. Go for it!

Marci James is the Director of Social Media and Marketing for Obeo. Article printed from RISMedia: http://rismedia.com

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2012 November - December

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GCAAR Cares Names 2012 Grant Recipients GCAAR Cares is proud to name the following non-profits as grant recipients for 2012: • Affordable Housing Conference,

Montgomery County • Calvary Women’s Services • Community Council for the Homeless at Friendship Place • The Dwelling Place • Hope and a Home

2012 grant recipient Miriam Gandell of The Dwelling Place presents the Cares Committee with a Thank You certificate

GCAAR Cares 2012: Year In Review t 2011 grant recipien s lp he Stepping Stones client with U-Haul to move to new home

2011 grant recipient Habitat for

Humanity, MC visits GCAAR Cares

MC Rebuilding Together® volunteers

GCAAR Cares member Linda Tomlinson attends 3rd Annual GCAAR Cares Dine Out at Fire Station 1 restaurant GCAAR Cares paints home and restores back yard for the Maryland Home Makeover project

res Silent Auction 3rd Annual GCAAR Ca R® Fest scores big at REALTO

GCAAR Cares moms and sons participate in special Rebuilding Together® project to restore the Nannie Helen Burroughs school in Washington, DC

t 2011 grant recipien l Community Counci for the Homeless at Friendship Place provides shelter for Jeffrey

(l-r) GCAAR Cares Committee member “Q” Armstrong poses with 2013 Fair Housing Poster Contest winner Sarah Miller and GCAAR member Silvia Rodriguez

2011 Fannie Mae Help the Homeless Walkathon beneficiary Hope and a Home visits GCAAR Cares DC Rebuilding Together® volunteers

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2012 November - December

January - February Education & Event Schedule Unless otherwise noted, all classes listed will be held at the GCAAR Conference Center, 8757 Georgia Ave., Suite 600, Silver Spring, MD. Please check our website at www.gcaar.com for more updates and additions. This schedule is subject to change.

January 7, 2013 Maryland Fair Housing 1:30 – 3:30 p.m.

Tom Lynch 1.5 hrs. MD & DC - Elective

January 17, 2013 (con’t) MREC Agency 1:30 – 4:30 p.m.

Tom Lynch 3 hrs. - MD Required, DC Elective

Anti-Trust 3:30 – 5:00 p.m.

Tom Lynch 1.5 hrs. MD & DC - Elective

January 18, 2013 Creating Powerful Pricing Presentations with RPR 9:30 – 11:00 a.m.

Lee Neiman No CE

January 9, 2013 Maryland Legal & Legislative Update 1:30 – 4:30 p.m.

Al Monshower 3 hrs. - MD Required January 10, 2013 DC Legislative Update 9:30 a.m. – 12:30 p.m.

Counselors Title 3 hrs. - DC Required DC Fair Housing 1:30 – 4:30 p.m.

Counselors Title 3 hrs. - DC Required January 11, 2013 MD Code of Ethics 9:30 a.m. – 12:30 p.m.

Jill Michaels 3 hrs. - MD Required, DC Elective New Member Orientation 1:00 – 2:30 p.m.

Jill Michaels January 16, 2013 Understanding the Role of Social Security in Financial Planning 10:00 – 11:30 a.m.

Bob Tucker No CE GCAAR/Rockville Office 9707 Key West Blvd.

January 16, 2013 Working with Investors 3:30 – 4:30 p.m.

Lisa Williams 1.5 hrs. - DC elective GCAAR/Rockville Office 9707 Key West Blvd.

January 17, 2013 MREC Required Supervision 9:30 a.m. – 12:30 p.m.

Tom Lynch 3 hrs. - MD Required, DC Elective

Creating Powerful Pricing Presentations with RPR 2:00 – 3:30 p.m.

Lee Neiman GCAAR/Rockville Office 9707 Key West Blvd.

No CE January 23, 2013 Maryland Code of Ethics 9:30 a.m. – 12:30 p.m.

Prabhjit Singh 3 hrs. - MD Required, DC Elective Financing Issues/Update 1:30 – 4:30 p.m.

Prabhjit Singh 3 hrs. - DC Required, VA Elective January 24, 2013 Short Sales 1:30 – 4:30 p.m.

Lisa Bosse 3 hrs. - MD, DC & VA Elective January 25, 2013 Red Flags in Property Inspections 9:30 a.m. – 12:30 p.m.

Vimal Kapoor 3 hrs. - MD & DC Elective Buyer Beware Foreclosed and Neglected Properties 1:30 – 4:30 p.m.

Vimal Kapoor 3 hrs. - MD, DC & VA Elective Regional Sales Contract Update 10:00 a.m. – 1:00 p.m.

Greg Flynn 3 hrs. - MD, DC & VA Elective MRIS/Rockville 9707 Key West Blvd., 2nd Floor FHA Financing 2:00 – 5:00 p.m.

Russell Rothstein 3 hrs. - MD, DC & VA Elective MRIS/Rockville 9707 Key West Blvd., 2nd Floor

January 28, 2013 GRI 105 Sales & Marketing Methods 9:00 a.m. – 4:00 p.m.

Valasie August January 31, 2013 GRI 101 Building a Real Estate Business 9:00 a.m. – 4:00 p.m.

Thom Brockett February 1, 2013 GRI 102 Prospecting/Listing Techniques 9:00 a.m. – 4:00 p.m.

Thom Brockett February 4, 2013 GRI 103 Fair Housing & Anti-Trust/ Misrepresentation 9:00 a.m. – 4:00 p.m.

Tom Lynch February 7, 2013 DC Fair Housing 9:30 a.m. – 12:30 p.m.

Tom Lynch 3 hrs. - DC Required DC Legislative Rent Control Landlord/Tenant Housing Rights 1:30 – 4:30 p.m.

Tom Lynch 3 hrs. - DC Required February 8, 2013 Maryland Code of Ethics 9:30 a.m. – 12:30 p.m.

Jill Michaels 3 hrs. - MD Required, DC Elective New Member Orientation 1:00 – 200 p.m.

Jill Michaels No CE February 11, 2013 Property Conditions Disclosure 9:30 a.m. – 12:30 p.m.

Thom Brockett MRIS/Rockville 9707 Key West Blvd., 2nd Floor 3 hrs. - MD Required, DC Elective MREC Agency 1:30 – 4:30 p.m.

Thom Brockett MRIS/Rockville 9707 Key West Blvd., 2nd Floor 3 hrs. - MD Required, DC Elective Visit GCAAR for more information.

This schedule is subject to change.

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2012 November - December

Capital Area REALTOR®

P ublic P olicy REAL Advocacy for REALTORS®

On Capitol Hill NAR is working for you! Stay up to date on NAR’s political activity and access all CALLS FOR ACTION through NAR’s REALTOR® Action Center at http://www.realtoractioncenter.com

new legislation mandating lead inspections, highlighted the importance of updating real estate agency law and noted that strict liability for landlords is a slippery slope.

Montgomery County & Bi-County Bills The following Montgomery County and Bi-County (Montgomery and Prince George’s Counties) Bills have had hearings in early December and will continue to move through the legislative agenda of the General Assembly beginning in January.

Calls for Action: Affordable Rural Housing; Mortgage Cancellation; and MID

MC 10-13 Montgomery County – Nuisances in Multidwelling Buildings – Private Right of Action (Pending) Authorizes an individual who resides in Montgomery County who has been harmed by a certain type of nuisance to bring a private right of action to abate the nuisance or for other compensatory or equitable relief against the person found to have created the nuisance and alters the definition of “nuisance” to include, in Montgomery County only, tobacco smoke that drifts from certain residential units in a multidwelling building.

The next crucial issue NAR called upon its members was to take action to support mortgage forgiveness tax relief. Right now this issue remains unfinished on Capitol Hill and could affect almost one quarter of all real estate transactions. NAR has stressed that homeowners shouldn’t be forced to pay tax on money they’ve already lost with cash they never received – and never will receive.

Transactions not completed by year-end could become taxable in 2013. NAR is continuing efforts to ensure an extension is passed beyond the current deadline of December 31, 2012.

MC 14-13 Montgomery County – Property Tax Credit for Qualified Enterprise Zone Property – Burtonsville (Pending) Alters the definition of “qualified enterprise zone property” as it relates to a certain property tax credit granted by the governing body of Montgomery County or of a municipal corporation in Montgomery County to include certain property zoned for certain uses located in the area encompassed by the Burtonsville Crossroads Neighborhood Plan.

NAR launched a number of Calls for Action in the past months ensuring the REALTOR® Party is heard in the halls of Congress.

The first was reminding House and Senate offices about the need to maintain access to safe and affordable mortgages backed by the Rural Housing Service Section 502 Program. Without Congressional Action, nearly 900 communities in 48 states would be dropped from the program based on current law.

Now the REALTOR® Party needs urgent help to protect the stability of the American housing market and the American economy. There are numerous news reports concerning the “Fiscal Cliff ” speculating that a change to the mortgage interest deduction could be part of a “Fiscal Cliff ” deal. REALTORS® need to “remind” Congress about our position on any proposed changes to the mortgage interest deduction (MID) by responding to this latest Call for Action.

Maryland Public Policy Update For additional information or to submit comments, please contact Meredith Weisel, Esq. at meredith@wgrelations.com or Katalin Peter, Esq. at kpeter@gcaar.com.

Maryland General Assembly

The next General Assembly session begins January 9, 2013.

Montgomery County Delegation: Priorities Hearing In mid-November, GCAAR President Bonnie Casper testified in front of the Montgomery County State Delegation on issues GCAAR and MAR will be looking at during the 2013 legislative session.

Transportation and budget were at the top of our list. We emphasized that growth of transportation infrastructure is essential to economic development and quality of life. GCAAR also voiced opposition to any

MC 18-13 Montgomery County – Property Tax Credit for Qualified Enterprise Zone Property – Glenmont (Pending) Alters the definition of “qualified enterprise zone property” as it relates to a certain property tax credit granted by the governing body of Montgomery County or of a municipal corporation in Montgomery County to include certain property zoned for certain uses located in certain parts of the area encompassed by the Glenmont Sector Plan.

MC/PG 104-13 Washington Suburban Sanity Commission – Water Conservation On-Bill Financing Program (Pending) Authorizes the WSSC to establish a Water Conservation On–Bill Financing Program and issue bonds to finance or refinance certain costs of the Program. It exempts certain bonds and associated funds from taxes; requires a customer to repay financial assistance through a surcharge; provides that a person that acquires property subject to a surcharge assumes the obligation to pay it and provides that a certain surcharge constitutes a lien on certain property. It also requires the Program to include certain eligibility requirements, application procedures, a certain financing charge or fee calculation method, standards for determining certain repayment provisions, and loan terms and conditions.

Montgomery County

2012 Montgomery County Housing Policy: DHCA’s Rick Nelson and Stephanie Killian Brief GCAAR Public Policy Committee Rick Nelson, Director of Montgomery County’s Department of Housing and Community Affairs, and his colleague Stephanie Killian updated GCAAR’s Public Policy Committee on key issues related to Housing at their November meeting. The purpose

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of the Housing Policy is to guide the implementation of the County’s housing programs and policies, to provide recommendations for improving them, and to provide direction for the allocation of resources. It is updated every ten years to establish action plans for meeting the Housing Element objectives, recommends improvements to existing housing programs, and presents data and information on the status of housing in the County.

The County Council will be reviewing the 2012 draft Housing Policy put forward by DHCA. GCAAR has also submitted comments to the County Executive, focusing on the following key issues: maintaining the Montgomery Housing Initiative Fund; sustaining Moderately Priced Dwelling Units Program; expanding housing for all stages of life; expansion of tax incentives for homeownership opportunities; and not raising property taxes. We stressed the value of homeownership for all residents and will continue working with DHCA to further our advocacy efforts.

Countywide Transit Corridors Functional Master Plan Planners are working on a bus rapid transit (BRT) network to improve mobility throughout Montgomery County. BRT is similar to light rail, but runs on county roads. The Countywide Transit Corridor Functional Master Plan will recommend rights-of-way for individual transit corridors to accommodate bus lanes, queue jumpers to assist bus operations at intersections, and proposed station locations, as well as additional turn lanes at intersections. The plan will generally provide policy guidance to the Planning Board and County Council on the BRT network.

The Planning Board staff presented preliminary recommendations to the Board in early November and plans on presenting a staff draft to the County Council in March 2013 with public hearings and worksessions in May/June of 2013. You can find information on BRT, along with other Planning Board projects at http://www.montgomeryplanning.org.

2012 Subdivision Staging Policy On November 13, the Montgomery County Council approved revisions to the County’s 2012-16 Subdivision Staging Policy (formerly called “Growth Policy”). The policy sets rules regarding transportation and school adequacy for proposed new developments.

One of the changes is that the new test of area-wide transportation adequacy will measure transit and road adequacy separately. If a developer seeks to proceed with a project in an area where transit or roads are inadequate, it can only move forward by paying a premium equal to 25 percent of the regular transportation impact tax for the project. The premium would increase to 50 percent if both the transit and road capacities for the area are inadequate.

The Council agreed that areas around Metrorail stations would not be considered inadequate for transit. The approved policy aims to more accurately reflect the actual congestion experienced by commuters in the peak direction of travel.

Montgomery County FY 2014 Budget The County is already working on early stages of the FY14 budget.

County Executive Ike Leggett must present his recommended budget to the Council by March 15, 2013. The Council and its committees will analyze the recommendations, make adjustments and adopt the budget by late May. The FY14 budget will be considerably impacted by the Maryland General Assembly’s recently amended Maintenance of Effort law that governs local education funding, as a large portion of the cost of teacher pensions has now been shifted to the County.

2012 November - December

Zoning Rewrite The Planning Board continues their extensive review of the zoning rewrite. The revisions are part of a multi-year effort to rewrite and modernize the Zoning Code, while creating new tools to help achieve goals in community plans. Overall it aims to make the code easier to use.

It is the Planning Board’s intent to be able to provide County Council Staff with a revised draft at the end of 2012 so that a Zoning Text Amendment (ZTA) can be introduced, a public hearing scheduled, and Council committee worksessions can begin early in 2013.

Montgomery County Legislation

For the most up to date information on Montgomery County legislation, visit the County’s website at www.montgomerycountymd.gov.

Bill 31-12, Accessory Apartments—Licensing (Pending) Bill 31-12 is intended to compliment ZTA 12-11, which would allow some accessory apartments to be approved without a special exception.

All accessory apartments would, however, require a license—which Bill 31-12 strengthens. It sets notice requirements, opportunities for residents to object and requires an accessory apartment to be the principal residence of the property owner.

GCAAR submitted testimony in support of Bill 31-12. We believe this Bill strikes a balance of streamlining the regulations for accessory apartments, while maintaining adequate safeguards for homeowners.

Expedited Bill 30-12, Taxation—Payments—Subdivision Staging Policy (Passed) Bill 30-12 would revise the procedure for setting and amending the rates for the transportation mitigation and school facilities payments authorized in the Subdivision Staging Policy. Specifically, it makes clear that the transportation mitigation payment rate must be set by Council resolution, including the resolution adopting the Subdivision Staging Policy.

Bill 25-12, Taxation - Impact Tax – Bikesharing (Passed) Bill 25-12 allows transportation impact tax funds to be used for certain bikesharing stations.

Bill 23-11, Development Districts, Special Taxing Districts— Duplication of Funding (Passed) Bill 23-11 would prohibit any development district, including the White Flint Special Taxing District, from financing any infrastructure improvement that is or may be financed or credited by any other government agency. It results from Councilmember concerns about potential double funding of infrastructure items by development districts or special taxing districts and other government agencies.

Zoning Text Amendment 12-16, One Family Dwelling, Pre-1928 Lots (Pending) An amendment to the Montgomery County Zoning Ordinance to: allow the construction of a one-family dwelling located on any size lot recorded before 1928, allow the reconstruction of any one-family dwelling located on any size lot recorded before 1928, and generally revise the grandfathering provisions for undersized lots GCAAR President Bonnie Casper testified at the public hearing. GCAAR voiced support for certain parts of ZTA 12-16. The current interpretation of the 1928 zoning ordinance would not allow the reconstruction of any house on a lot that was recorded before 1928 unless it meets minimum lot requirements. GCAAR questioned what would happen if a home is demolished due to an unforeseen circumstance and a homeowner is prohibited from rebuilding their original home. ZTA 12-16 would now allow the construction and reconstruction of a dwelling and revise the grandfathering provisions for undersized lots. We noted that the Council needs to consider marketability and financing before passing the ZTA. continued on page 18

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Public Policy Update, continued from page 17 Zoning Text Amendment 12-15, Guest House—Conditions (Passed) An amendment to the Montgomery County Zoning Ordinance to add conditions necessary for a guesthouse.

GCAAR President Bonnie Casper testified at the public hearing. This ZTA would add more specific requirements for guesthouses (i.e., they are not permitted on lots where the owner resides off-site for more than six months a year.) We pointed out practical concerns, such as how this would affect military personal or retirees and grandfathering of current guest houses. Since the ZTA states that guesthouses are for guests of homeowner, we asked if this would prevent the homeowner from living in their own guesthouse.

Zoning Text Amendment 12-12, Density Transfer - C-2 to CBD Zones (Passed) ZTA 12-12 would allow the transfer of development density from C-2 zoned properties adjoining or confronting single-family zoning to Density Transfer Areas in CBD zones. The ZTA would not increase the total amount of development that could be built in and around a Central Business District; it would allow greater density in master plan designated Density Transfer Areas only if the density potential of lots abutting or confronting one-family residentially zoned land is decreased.

The ZTA would allow greater density where density is appropriate and would allow for lower density adjoining a residential community.

Zoning Text Amendment 12-11, Accessory Apartments Amendments (Pending) The ZTA would allow accessory apartments under certain conditions without a special exception. It would still require a special exception approval whenever all those circumstances are not present. The Council treatment of ZTA 12-11 will guide the Planning Board in its deliberations on the Zoning Ordinance Rewrite.

The Council held a public hearing, along with numerous Planning Housing and Economic Development Committee worksession on this ZTA to clarify the specificities related to the accessory apartment approval process. Most recently, the PHED Committee met again with Rick Nelson, Director of DHCA to devise a new and simplified licensing procedure (see above Bill 31-12). The Council will revisit ZTA 12-11 in January.

Zoning Text Amendment 12-10, Established Building Line Clarification (Passed) ZTA12-10 clarifies that any new building on the site of a building excluded from calculating the required setback is still subject to the established building line setback provision.

DC Public Policy Update

For additional information or to submit comments, please contact Ed Krauze, Esq. at ekrauze@gcaar. com or Katalin Peter, Esq. at kpeter@gcaar.com.

Dcar Speaker Series Lunch with Council Chairman Phil Mendelson—Politics, Ethics and Zoning Council Chairman Phil Mendelson joined DCAR’s Speaker Series in October to talk about the importance of ethics in politics and minimizing corrupt practices in government. He welcomed feedback from the audience about possibly requiring Councilmembers to have credit background checks as a requisite to being in office.

Chairman Mendelson also discussed the future of the District’s zoning rules and regulations, as they are currently in the process of a major comprehensive rewrite.

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Real Estate Commissioners Discuss Boards and Commissions Restructuring Proposal Mayor Gray recently charged the Office of Board and Commissions with reviewing the more than 200 District boards, commissions, committees, and task forces as part of his efforts to streamline District government. The Office preliminarily concluded certain boards should be abolished or restructured.

Additionally, a number of Boards (including the Real Estate Commission and Board of Real Estate Appraisers) are being reviewed in order to make recommendations regarding the creation of a single occupational licensing regulation entity and to transfer the hearing appeals functions to the Office of Administrative Hearings. There is currently no action being proposed on this, but things could move quickly.

DCAR invited Alton “Tony” Duncanson (Chairman), Rick Gersten, and Josephine Ricks of the Real Estate Commission to give members an overview of the proposed changes. They also gave an overview of the Commission’s activities.

District Regulatory Issues Proposed Sign Regulations After months of review, DCAR has submitted official comments on the District’s Proposed Signs Regulations. We thank all our residential and commercial members who offered their pertinent feedback.

Below are the main points that we incorporated into our final comments.

• Size Requirements for Signs on Private Property are Too Restrictive o The six square feet (6 sq. ft.) size restriction is smaller than standard real estate signs (anything greater requires a permit) and should be increased. o The permit exception should be increased significantly for signs on large commercial spaces and residential buildings.

• Limit of Number of Signs on Private Property is Too Restrictive o There is a restriction of one (1) sign per property, however, there are many residential and commercial properties that need multiple signs.

• Size and Time Limits for Open House Signs are Too Restrictive o Current business practices for open house signs are generally greater than one square foot (1 sq. ft.). If this permit exception limit in fact applies to such signs, it should be increased. o The requirement that open house signs be removed within one hour of an event does not give enough flexibility for sellers. They should be given a reasonable amount of time, such as twentyfour (24) hours before and after an event to post and remove signs.

• Permitting Process and Fees Associated o Permit costs need to be clarified and there should be a simple electronic process to promote compliance. It would be reasonable to have a permits per agent or brokerage. o The new regulations are far-reaching and there should be a provision that if approval or denial is not granted within a certain period of time, the permit is deemed approved. o It is unfair to fine property owners if a tenant is the violator.

Thank you to everyone that submitted feedback. We will continue to update you as the regulations move to Final Rulemaking.

DC Tax Revision Commission The DC Tax Revision Commission was authorized by the Council as an independent body appointed by the Mayor and Council Chairman. The Commission’s purpose is to prepare comprehensive recommendations to the Council and the Mayor which (1) provide for fairness in apportionment of taxes; (2) broaden the tax base; (3) make the District’s tax policy more competitive with surrounding

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jurisdictions; (4) encourage business growth and job creation; and (5) modernize, simplify, and increase transparency in the District’s tax code.

The Commission started meeting late August and has been focused on the background conditions of the District’s tax framework. Starting in February, they will focus on individual taxes (property taxes May/June 2013.) DCAR plans on submitting input throughout the course of the Commission’s work. Additional information can be found at: http://www.dctaxrevisioncommission.org.

District Legislation For the most up to date information on District legislation, visit www.dccouncil.us. DCAR Government Affairs staff has reviewed approximately 1040 bills and 1040 resolutions during Council Period 19. For additional information or to submit comments, please contact Ed Krauze, Esq. @ ekrauze@gcaar.com.

LEGISLATIVE SUCCESSES B19-824, “Omnibus Alcoholic Beverage Regulation Amendment Act of 2012” B19-824 attempts to address a number of different alcohol, noise and night-life related activities. Most of these issues relate to ABRA (the Alcohol Beverage Regulation Administration), however, it also attempted to require real estate brokers and property managers to notify potential buyers and tenants of their rights under the District’s noise laws; and to amend the District Code to create new soundproofing requirements for mixed use buildings constructed after January 1, 2013.

DCAR is pleased to report that thanks to adamant lobbying efforts with coalition partners and member outreach to Councilmembers and staff, such unnecessary provisions will NOT become DC law. An amendment to remove the mandated noise disclosure and construction soundproofing provisions PASSED-a win for the real estate community.

B19-17, “Returning Citizens Anti-Discrimination Act” (previously known as “Human Rights for Ex-Offender Amendment Act of 2011”) Councilmember Barry’s ex-offender legislation prohibits employment and housing discrimination based upon past arrest or conviction, with certain exemptions unless a conditional offer of acceptance has been extended and there exists a relevant relationship between the conviction and the employment or housing access sought.

After completely rewriting B19-17, Councilmember Barry immediately scheduled a hearing in Committee on Aging and Community Affairs.

DCAR rallied with a coalition of business organizations to defeat the Bill by reaching out to Councilmembers and their staff.

The Bill was only able to move to full Council after Councilmember Barry effectively prevented Chairman Mendelson and Councilmember Wells from voting in opposition to the Bill.

DCAR continued its lobbying efforts and the Council most recently ruled Barry’s Bill out of order due to how he handled it procedurally. We will continue to monitor this legislation and thank all of our members that reached out and voiced our concerns.

B19-825, “Basic Business License Renewal Amendment Act of 2012” (Passed) To amend the Omnibus Regulatory Reform Amendment Act of 1998 to extend the time period in which a basic business license must be renewed from every two years to every four years.

DCAR successfully lobbied to move this Bill forward with an option provision to allow for either two or four year renewal.

Bill 19-581, “Consumer Protection Amendment Act of 2011” (Passed) Prohibits the following: willful use of falsehood, innuendo, or

2012 November - December

ambiguity; representing that a transaction confers rights that it does not; unfair business practices; and authorizes non-profit organizations to bring suit under the District’s consumer protection statute.

A problematic landlord/tenant provision was added to this Bill last minute, which DCAR and business coalition partners successfully had removed.

LEGISLATION PASSED OR MOVING B19-795, “District Department of Transportation DC Streetcar Amendment Act of 2012” (Passed) This bill would establish a governance and financing structure for the District’s streetcar system.

B19-747, “Technology Sector Enhancement Act of 2012” (Passed) Amends the definition of a Qualified High Technology Company and allows an income tax exemption for a Qualified High Technology Company. Currently, investors and other shareholders in tech startups pay an income tax rate of 8.95% on the proceeds of selling that stock.

Mayor Gray proposed carving out a new 3% capital gains tax, with the hope of keeping and encouraging these entrepreneurs in the District.

The Council stripped out this provision and sent it to the new Tax Revision Commission for further review.

B19-819, “Sign Regulation Authorization Amendment Act of 2012” (Rules Pending) To allow the Mayor to amend regulations surrounding the erection, hanging, placing, painting, display, and maintenance of outdoor signs and other forms of exterior advertising, as well as to provide the Mayor with authority to issue, amend, repeal, and enforce rules governing signs on public and private property. It would also provide enforcement mechanisms for these rules.

B19-993, “Local Budget Autonomy Act of 2012” (Passed) To amend the District of Columbia Home Rule Act of provide for local budget autonomy.

B19-928, “Homestead Deduction Equity Act of 2012” (Pending) To defer for one year any delinquent real property tax owed as a result of an erroneous or improper homestead deduction, which the Mayor determines was made in good faith, and to apply retroactively the 50% homestead deduction in computing real property tax owed by homeowners to the first day of the tax year regardless of the date on which the eligible property owner applied. It would allow for the deferral of payment of delinquent taxes resulting from a rescission of the Homestead.

B19-939, “District of Columbia Fire and Casualty Amendment Act of 2012” (Pending) To amend the District of Columbia Fire and Casualty Act to require homeowners insurance companies to clearly state that homeowner’s insurance does not cover all risks and to list the additional optional coverage available to the homeowner; to require the homeowners insurance company to notify applicants that homeowner’s insurance does not cover losses from flood and to explain how flood insurance may be obtained.

B19-938, “District of Columbia Flood Assistance Fund Amendment Act of 2012” (Pending) Requires the Director of the District Department of the Environment to establish and administer a fund to assist District residents with the costs associated with overland flooding and sewer line backup flood damage to homes and personal property. It also creates a Flood Assistance Fund collected by DC Water and remitted to the District Department of the Environment.

DCAR submitted a letter to all members of the Council stressing the important of addressing the overall problems associated with the District’s aging water and sewer infrastructure. continued on page 20

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DC Public Policy Update, continued from page 19 B19-749, “Energy Innovation and Saving Amendment Act of 2012” (Passed) Amends the DC Code to exempt solar energy and cogeneration energy systems from personal property tax, and to promote energy conservation by requiring commercial properties to keep doors and windows, closed if air conditioning systems are in use.

B19-753, “Uniform Real Property Transfer on Death Act of 2012” (Passed) To amend Title 19 of the DC Code to enact the Uniform Real Property Transfer on Death Act, to authorize creation of a transfer on death deed, which, when properly executed and recorded with the Recorder of Deeds, passes title directly to named beneficiaries without probate upon the transferor’s death and to make conforming changes.

B19-856, “DDOT Bicycle Sharing Fund Amendment Act of 2012” (Pending) Authorizes DDOT to plan, develop, operate, Regulate and administer a Bicycle Sharing program, and to establish the Bicycle Sharing Fund.

B19-979, “Clarification of Personal Property Tax Revenue Reporting Emergency Act” (Passed) B19-980, “Clarification of Personal Property Tax Revenue Reporting Temporary Act” (Passed) Amends the DC Code to clarify that personal property tax is to be reported in the fiscal year in which it is collected.

Capital Area REALTOR®

New Legislation B19-1007, “Residential Real Property Tax Relief Act of 2012” (Pending) To amend Title 47 of the DC Code to lower the cap on real property assessment increased from 10% to 5% and to abolish the requirement that residential real property be assessed at a minimum of 40% of the value of the home regardless of the cap.

B10-1030, “Residential Real Property Equity and Transparency Act of 2012” (Pending) To amend Title 47 of the DC code to modify property tax delinquency and sale procedures to provide a more equitable and transparent process; to expand pre-sale notice requirements; to reduce the number of tax sales resulting from homeowner receipt of incomplete date regarding delinquencies or from disputes regarding property classification; to permit homeowners to enter into installment agreements with the Office of Tax and Revenue to avoid tax sales, to expand post-sale notice to homeowners in order to minimize costs associated with redemption; and to provide equitable limitations on tax sale purchaser expense that homeowners must pay in order to redeem their homes.

B19-1037, “Rent Control Voluntary Agreement Procedure Amendment Act of 2012” (Pending) Amends the Rental Housing Act of 1985 to ensure that any affected tenant has opportunity to be heard before the approval or disapproval of a voluntary agreement to raise the rents in a rent-control accommodation and eliminates automatic approval in the event that the voluntary agreement specifies rent increases for all units in the accommodation by a certain percentage.

REALTORS® Discover Their Magic at the 2012 Annual Conference & Expo Members from GCAAR and DCAR joined nearly 21,000 REALTORS® and guests from across the country at the REALTORS® Conference & Expo held in Orlando November 9-12.

The year’s meetings encouraged REALTORS® to “discover your magic.” As the U.S. emerges from the recent national election, REALTORS® reflected on recent real estate successes and prepared to regroup for the road ahead. Attendees participated in forums and shared their insights into the challenges and opportunities of local markets across the country, examined how changing political and economic landscapes are likely to affect the real estate industry, and networked with colleagues from across the U.S. and around the world.

Throughout the week REALTORS® participated in forums, classes, and workshops to gather the resources, information, and skills necessary to help them positively influence their local communities and community leaders to help them effectively serve their buyer, seller and investor clients.

National Association of REALTORS® 2012 President Moe Veissi reflected on an active year of REALTOR® engagement and outlined the road ahead. “This year REALTORS® have shown their commitment to keeping the American dream of home ownership alive and accessible for future generations, whether they participated in the very successful REALTOR ® Rally to Protect the American Dream in May or answered calls for action to extend important mortgage cancellation tax relief benefits,” said Veissi. “On the commercial side, REALTORS® are working with Congress and regulators to accelerate depreciation rules, improve the availability of credit for small businesses, and increase the cap on credit union member business lending – all of which aim to support an ongoing recovery in the commercial real estate market.”

Gary Thomas, a REALTOR ® from Orange County, Calif., was installed as the 2013 NAR President. Acknowledging that the next few years will be pivotal for the future of homeownership and real estate investment in this country, Gary said, “REALTORS® know our country faces some tough choices ahead, but we also understand the vital role that real estate plays in both the long- and short-term health of this nation.”

GCAAR and DCAR members also had the chance to explore the latest industry innovations and stay up to date on how new products are transforming the real estate business, as nearly 400 exhibitors showcased the newest real estate products and services for the industry during the trade expo.

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2012 November - December

Q uiz REALTOR® History 1. Before being called the NATIONAL ASSOCIATION OF REALTORS®, what name did the national Association go by?

a. National Association of Real Estate b. Association of Real Estate c. National Association of Real Estate Boards d. It’s always been known as the NATIONAL ASSOCIATION OF REALTORS®

2. In what year was the NAR Code of Ethics adopted, and what was its primary theme? a. b. c. d.

1908; A New Order 1913; The Golden Rule 1924; Right Makes Might 1952; Do Well By Doing Right

3. What year did NAR surpass 1 million members for the first time? a. 1965 b. 2000 c. 1982 d. 2004

4. How many syllables does the word REALTOR® have? a. One b. Two c . Three d. Four

5. Which past NAR president visited the White House in 1933 and handed President Roosevelt a $95,000 check, the first dividend from the Federal Home Loan Bank System? a. b. c. d.

William W. Hannan Harry S. Kissell illiam H. Gardner Alexander Sacket Taylor

6. In what year was the term REALTOR® approved as a registered trademark by the U.S. Patent and Trademark Office? a. 1908 b. 1950 c. 1970 d. 2000

7. Who was the only NAR president to serve for two years, rather than the typical one-year term?

11. How much money did NAR raise for the victims of the Sept. 11, 2001, terrorist attacks?

8. In a famous NAR speech dubbed “Lions Over the Hill,” what topic was 1993 NAR president Bill Chee warning the Board of Directors that NAR was falling behind its competitors on?

12. What two past U.S. Presidents spoke at NAR’s 2006 Annual Convention?

a. b. c. d.

William May Garland Charles N. Chadbourn Harry S. Kissell Pat V. Combs

a. Fair Housing b. Technology c. Public Policy d. Law and Ethics

9. The national association’s Land Developers and Home Builders Division later split off to form what group?

a. National Association of Urban Development b. National Association of Home Builders c. Urban Land Institute d. REALTORS® Land Institute

10. Who was the first female president of NAR? a. b. c. d.

Ebby Halliday Dorcas Helfant Catherine Whatley Pat V. Combs

a. b. c. d.

$1.5 million $3.4 million $6.2 million $8.8 million

a. b. c. d.

George H.W. Bush and Jimmy Carter Bill Clinton and Jimmy Carter Bill Clinton and George H.W. Bush Gerald R. Ford and Jimmy Carter

a. b. c. d.

Fair Housing Equality in Housing Building Communities The Voice for Real Estate

13. In 1989, NAR adopted what theme as part of its official logo?

14. What powerhouse bipartisan organization was formed in 1969 to support candidates running for public office who supported REALTOR® positions?

a. REALTORS® Legislative Committee b. REALTORS® Political Action Committee c. Washington Committee d. REALTORS® Grassroots Action Committee Answers on page 22.

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Capital Area REALTOR®

Quiz Answers 1. Before being called the NATIONAL ASSOCIATION OF REALTORS®, what name did the national Association go by?

Correct Answer: National Association of Real Estate Boards The NATIONAL ASSOCIATION OF REALTORS® is actually the Association’s third name in its 100-year history. When it was founded on May 12, 1908, the Association was known as the National Association of Real Estate Exchanges. In 1916, it became the National Association of Real Estate Boards. And more than 50 years later, it changed its name to what it’s known as today, the NATIONAL ASSOCIATION OF REALTORS®.

2. In what year was the NAR Code of Ethics adopted, and what was its primary theme?

Correct Answer: 1913; The Golden Rule During the 1913 convention in Winnipeg, Manitoba, a motion was made to adopt NAR’s first Code of Ethics. The code, which outlines the fair business practices and standards that REALTORS® abide by, originally consisted of 23 Articles, categorized as “Duties to Clients” and “Duties to Other Brokers.” In determining its theme, Frank Craven, 1911 chair of the Committee on Ethics, said: “We cannot suggest a better starting point than the Golden Rule, ‘Do unto others as ye would that others should do unto you.’”

3. What year did NAR surpass 1 million members for the first time?

Correct Answer : 2004 NAR first reached the 1-million member mark in April 2004. NAR saw a dramatic increase in members from 1999 to 2004 — about 45 percent higher. The growth was attributed to an increase in home sales, growing recognition of the REALTOR® brand, and the Association’s three-way agreement, which gives state and local associations the right to pass the term REALTOR® and REALTOR-Associate® to its individual members. By early 2007, NAR’s membership grew to more than 1.3 million, where it stands today. The Association is the largest trade association in the United States. To view, NAR’s membership through the years visit REALTOR.org.

4. How many syllables does the word REALTOR® have?

Correct Answer : Two But you’ll often hear it incorrectly pronounced with three syllables (“ree-ul-tur” or “ree-li-tur”).

The phonetic spelling appears wrong in many dictionaries. But the correct — and intended — pronunciation is actually two syllables: Reel’ –tor.

REALTOR® Charles N. Chadbourn, who coined the term in 1915, first specified that it be pronounced with two syllables, with an accent on the first syllable.

5. Which past NAR president visited the White House in 1933 and handed President Roosevelt a $95,000 check, the first dividend from the Federal Home Loan Bank System?

Correct Answer: Harry S. Kissell Harry S. Kissell, president of NAR in 1931, was a strong proponent of creating a central mortgage discount bank and played a role in the creation of the Federal Home Loan Bank system. He was appointed

by President Hoover as the first president of the Cincinnati Home Loan Bank and later served as its director. The Federal Home Loan Bank Act of 1932 helped propel homeownership with the creation of a network of mortgage lenders with uniform lending standards. President Roosevelt, who succeeded Hoover as president in 1933, helped enact more NAR-backed recommendations, including creation of the Federal Housing Administration to provide government insurance on mortgages.

6. In what year was the term REALTOR® approved as a registered trademark by the U.S. Patent and Trademark Office?

Correct Answer: 1950 The term REALTOR® is a registered collective membership mark that is reserved exclusively for members of the NATIONAL ASSOCIATION OF REALTORS®. The collective marks — REALTORS® and REALTOR® — were registered with the U.S. Patent and Trademark Office on Sept. 13, 1949, and Jan. 10, 1950, respectively. Webster’s Dictionary officially acknowledged the term “REALTOR®” as a trademark of NAR in its 1969 edition. The general public, however, often misuses the term by referring to any real estate practitioner generically as a REALTOR®. NAR continues to fight the term’s misuse and has issued guidelines for using REALTOR® correctly.

7. Who was the only NAR president to serve for two years, rather than the typical one-year term?

Correct Answer: William May Garland Garland served as NAR president in 1917 and 1918 during World War I and is the Association’s only two-term president. As a war-time president, he strived to get REALTORS® working together to achieve political objectives and even set up an office in Washington, DC, to get REALTORS® to donate their services to the War and Navy Departments, the Department of Labor’s Bureau of Industrial Housing and Transportation, and the Alien Property Custodian. By the end of the war, President Wilson said he was “gratified by the fine spirit of unselfish cooperation manifested by the members of your Association.”

8. In a famous NAR speech dubbed “Lions Over the Hill,” what topic was 1993 NAR president Bill Chee warning the Board of Directors that NAR was falling behind its competitors on?

Correct Answer: Technology During NAR’s Midyear Meetings in April 1993, Bill Chee of Hawaii, the NAR president at the time, told Board members that he was growing increasingly concerned at how NAR’s competitors — or, as he put it, “hungry lions coming over the hill” — were using technology to deepen their relationships with consumers. He said this posed risks to the MLS system and NAR members’ hold on their listings. He said the Association needed to act quickly and take a bigger role with technology. His speech eventually led to the creation of Realtor.com, which launched in 1997, and serves as NAR’s official Web site for consumers to view listings, search for homes, and find REALTORS®.

9. The national association’s Land Developers and Home Builders Division later split off to form what group?

Correct Answer: National Association of

Home Builders The NAHB, which represents the nationwide building industry, sprung from a division within NAR. The Home Builders and Subdividers Division of NAR was established in 1925 and became the Land Developers and Home Builders Division in 1933, serving as an alliance between real estate practitioners and builders. In 1942, the division — which consisted of about 105 community builders — split from the Association and joined with another home builders group to form the independent National Association of Home Builders.

Another high profile NAR spin-off: the Urban Land Institute, which grew out of NAR’s National Real Estate Foundation and became an independent organization in 1940.

10. Who was the first female president of NAR? Correct Answer: Dorcas Helfant Helfant, from Virginia Beach, Va., became the first female president of NAR in 1992. She was also the first woman to serve as president of her state association. Three other women have since taken the helm — Sharon A. Millett of Auburn, Maine, (1999); Catherine Whatley of Jacksonville, Fla. (2003); and Pat V. Combs of Grand Rapids, Mich. (2007). Ebby Halliday was a national leader of NAR during the 1950s and ’60s and president of the Women’s Council of REALTORS® in 1957. Today, at 97, she continues to head one of the largest independent brokerages in the nation.

11. How much money did NAR raise for the victims of the Sept. 11, 2001, terrorist attacks?

Correct Answer: $8.8 million Within hours after the Sept. 11, 2001, terrorist attacks struck New York, Washington, DC, and Pennsylvania, REALTORS® banded together to raise money for victims by establishing the very first relief fund by a national association. The REALTOR® Housing Relief Fund, which raised $8.8 million, helped pay the rent and mortgage payments of more than 1,300 families of victims. For its efforts, NAR was recognized with a 2002 Associations Advance America Award.

12. What two past U.S. Presidents spoke at NAR’s 2006 Annual Convention?

Correct Answer: Bill Clinton and George H.W. Bush The 2006 REALTORS® Conference & Expo in New Orleans featured the presidential duo of George H.W. Bush and Bill Clinton. The former presidents addressed the crowd at the conference’s general session and applauded REALTORS® for their work in helping to rebuild New Orleans in the aftermath of Hurricane Katrina. REALTORS® helped build 54 homes throughout the Gulf Coast in 2006 with Habitat for Humanity International. In the year after Katrina, the REALTORS® Conference was the largest convention to come to New Orleans, bringing an estimated $35 million into the local economy.

13. In 1989, NAR adopted what theme as part of its official logo?

Correct Answer: The Voice for Real Estate In 1989 the Board of Directors unanimously approved using The Voice for Real Estate® as NAR’s unifying theme.

14. What powerhouse bipartisan organization was formed in 1969 to support candidates running for public office who supported REALTOR® positions?

Correct Answer: REALTORS® Political Action Committee This bipartisan organization was originally known as the Real Estate Political Education Committee and was formed to support candidates who believed in free enterprise and the value of private property rights. In 1974, it changed its name to REALTORS® Political Action Committee (RPAC), an unincorporated nonprofit, bipartisan standing committee of NAR that solicits voluntary contributions from NAR members for candidates running for public office. It’s one of the largest trade association political action committees in the country. With 3,800 PACs in the United States, RPAC ranks No. 1 in contributions to federal candidates.

In the years preceding the creation of RPAC, the association had a Washington Committee that tracked federal legislative and regulatory activities.

B:10.875”

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S:9.625”

for making “pre-approved” mean something.

Subject to property underwriting and appraisal. Borrower must satisfy pre-approval conditions outlined in commitment letter. Loan amount subject to property appraisal.

PNC is a registered service mark of The PNC Financial Services Group, Inc. (“PNC”). PNC Mortgage is a division of PNC Bank, National Association, a subsidiary of PNC. All loans are provided by PNC Bank, National Association.

This information is provided for business and professional uses only and is not to be provided to a consumer or the public. This information is provided to assist real estate professionals and is not an advertisement to extend consumer credit as defined by Section 226.2 of Regulation Z. Programs, interest rates, and fees are subject to change without notice GEN-7957 ©2012 The PNC Financial Services Group, Inc. All rights reserved. Member FDIC

T:14”

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B:15”

S:13.5”

PNC Mortgage

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2012 November - December

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Source: Information included in this report is based on data supplied by MRIS and its member Association(s) of REALTORS, who are not responsible for its accuracy. Does not reflect all activity in the marketplace.

January 1, 2011 – December 31, 2011. Information contained in this report is deemed reliable but not guaranteed, should be independently verified, and does not constitute an opinion of MRIS or Long & Foster Real Estate, Inc. ©2012 All Rights Reserved.

Exclusive affiliate of Christie’s International Real Estate in select areas.

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