Capital Area REALTOR® Sept/Oct 2012 by GCAAR

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

Capital Area Realtor

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

September - October 2012

Inside This Issue Jessica Evans - Rookie of the Year ��page 3 2013 BOD Slate................................page 3

USPS: 017-467

GCAAR is pleased to name Patrick “Pat” Weed as its REALTOR® of the Year for 2012. Pat is currently Broker/ Owner of the Patrick Realty Company, Inc. in Kensington, MD.

GCAAR in the News...........................page 4 2013 GCAAR Annual Dues ��page 5 NAR Director’s Report.......................page 6 International Committee...................page 7 SuperStar Secrets.............................page 7 Jackie Simon Civil Rights Award ��page 8 Technology.......................................page 9 Green Resources............................ page 13 GCA WCR Member Event................ page 13 NAR REALTORS® Conference �� page 13 Rookies Vs. Veteran Agents ��page 14 REALTORS® FCU Merger................page 15 YPN Event.......................................page 15 GCAAR Cares..................................page 16 Homeownership Empowerment ��page 16 Education Schedule........................page 17 Public Policy...................................page 18 RPAC Investors...............................page 21 Board Briefing................................page 21

www.gcaar.com

2012 GCAAR REALTOR® of the Year – Pat Weed

Ask the President..............................page 4

MC Market Report..........................page 10

Volume 18, Number 4

Pat has been involved in numerous committees during his tenure at the Montgomery County Association of REALTORS® and also at GCAAR including: Contract and Clause, Public Policy (where he served for over ten years as Chair and Vice-Chair), Grievance, RPAC, Legislative and Public Affairs, and Contract Form Management. At the state and national levels, Pat was an active member of the Maryland Association of REALTORS® (MAR) Statewide Forms, Professional Standards, and Legislative (where he served as Vice Chair) committees, and was also on the National Association of REALTORS® (NAR) Patrick Weed

Quiz............................................... page 22

Contact Team and a member of NAR’s Women’s Council of REALTORS®. Among his many civic activities, Pat is a member of the American Legion, Moose Club, and Knights of Columbus. He is also a former Montgomery County Election Judge, and was on the board of the Kensington-Wheaton Chamber of Commerce. Pat was recently awarded the REALTOR® Emeritus status by the National Association of REALTORS® for over 40 years of professional real estate experience, and was an early graduate of the MAR Leadership Academy. He has been an attendee at each of the state conventions for the past 25 years. “Pat Weed has been a dedicated and steadfast member of our association and he has been a mentor to many,” said Bonnie Casper, 2012 GCAAR President. Pat recently represented GCAAR at the Maryland Association of REALTORS® annual convention September 9 -12 in Ocean City.

Bethesda Smart Growth Seminar Draws Another Packed House

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

GCAAR President Bonnie Casper welcomed another sellout audience on June 28 as attendees got to see and hear the plans for Bethesda in GCAAR’s second Smart Growth Seminar at the Bethesda-Chevy Chase Regional Services Center. The audience heard from developers, interested organizations, and Montgomery County about the plans, what’s coming, and how it will change the residential and commercial real estate environment in Bethesda. Moderated by Ken Hartman, Director of the BethesdaChevy Chase Services Center, the panel included Jad Donohoe, Vice President of Donohoe Development; Ellen Miller, Founding Principal of Stonebridge Associates; and Greg Rooney, Vice President of Development for continued on page 4

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Front Row L-R: Ellen Miller, Stonebridge Associates; GCAAR President Bonnie Casper; Steve Silverman, Montgomery County Office of Economic Development Back Row: Greg Rooney, The Bernstein Companies; Jad Donohue, Donohue Development; Mark Winston, Montgomery County Executive Transit Task Force; Dave Dabney, Bethesda Urban Partnership

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2012 September - October

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Capital Area Realtor®

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2012 September - October

A ssociation N ews 2012 Board of Directors

Jessica Evans Garners Rookie of the Year Honors GCAAR is pleased to announce Jessica Evans as its 2012 Rookie of the Year. Jessica is an agent with Long & Foster in Silver Spring, MD. Jessica has been a REALTOR® since 2009 and was Long & Foster’s Rookie of the Year in 2010. She has received multiple Top Producer awards, including Long & Foster’s Top 150 Agents for 1st Quarter 2012. Jessica’s sales volume was over $2.3 million in 2011 and already this year she has exceed last year’s sales volume by 45%.

President

Bonnie R. Casper

President-Elect Michael McGreevy

Secretary

Gregory Ford

Jessica is very active both professionally and in the community. She is a member of GCAAR’s new Communications Committee, the GCAAR Cares Community Service Committee, and the Young Professionals’ Network (YPN). Her civic activities include: member of the Silver Spring Urban District Advisory Committee, Silverton Condominium Board of Directors, South Silver Spring Neighborhood Association, and 2011 coordinator of Long & Foster’s annual Toys for Tots drive.

Jessica Evans Treasurer

William H. Highsmith Jr. , JD, GRI

Immediate Past President Adrian Hunnings

Chief Executive Officer Michael Moran

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

Editor

Bobette Banks

Advertising Representative

“Jessica is an excellent example of a well-rounded REALTOR® who understands how her community involvement and association participation impacts her growth and the growth of her business. She genuinely cares about her clients, and is willing to dive into community issues to see how she can be part of collective and positive solution,” says her broker, Michael McGreevy. “She represents where our agents are going in terms of service, growing their business in new ways such as social media, and adjusting to the ever-changing market place.”

2013 Board of Directors Slate Officers President President-Elect Immediate Past President Secretary Treasurer

Michael McGreevy, Long and Foster Real Estate Greg Ford, Keller Williams Capital Properties Bonnie Casper, Long and Foster Real Estate William “Bill” Highsmith, Jr., Keller Williams Capital Properties Tim Knobloch*, Eagle Management, LLC

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. Subscription inquiries may be sent to Capital Area REALTOR® at the above address. Copyright© 2012 by the Greater Capital Area Association of REALTORS®. All rights reserved. POSTMASTER: SEND ADDRESS CHANGES TO CAPITAL AREA REALTOR®, ATTN: GCAAR, 8757 Georgia Avenue, Suite 600, Silver Spring, MD 20910. 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 REALTORS® at 301.590.2000; via fax at 301.590.2248; or via e-mail at bbanks@gcaar.com. 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.

Returning Directors (The following Directors are completing their current two-year term) David Bediz, Coldwell Banker Suzanne Des Marais, Keller Williams Capital Properties Carter Ferrington, Vogel Realty, Inc. Mynor Herrera, Keller Williams Capital Properties Ellen Katz, Weichert, REALTORS® Victoria (Vicky) Lobos-Kirker, Long and Foster Real Estate Margaret (Peg) Mancuso, W.C. & A.N. Miller, A Long and Foster Company New Directors (2-year term; five to be elected) Koki Adasi, Long and Foster Real Estate Jamie Coley, Long and Foster Real Estate Tom Daley, TTR Sotheby’s International Realty Dorie Glass, Long and Foster Real Estate Jacque Grenning, Keller Williams Capital Properties Gwen Henderson, Long and Foster Real Estate Gerard “Gerry” Occhiuzzo, Fairfax Realty Hildy Pollard, Weichert REALTORS®

Voting begins Monday November 19, 2012. Look for details via e-mail and on gcaar.com. *The Treasurer is a Board-appointed position.

Serving the Business Needs of OUR Professionals

2012 September - October

Ask the President Bonnie Casper 2012 GCAAR President Q. I was at an Open House and the seller called and said he was on the internet watching the attendees leave and wondered what they thought. I had no idea I was being monitored. Can we do something about that? -An agent in the District of Columbia

Capital Area REALTOR®

Hall (and Montgomery County, Maryland, and Congress). We sometimes get advance notice, but not always, and often we’re asked for input, though not always. Sometimes something slips through the cracks and I have to tell you so we can try to fix it after the fact, like changes to the vacant property tax. All in all, our public policy representatives do a great job, but paid staffers can’t do it all, in the end politics is everyone’s business. If it were easy to just pay people to get the legislation we want there are plenty of folks out there who would be very successful! Q. Were you really on Chinese TV talking about our local real estate market? -An agent in Arlington

A. Hah, yes I was, it’s pretty daunting to be asked to be on live TV and told it goes to 80 million households! But it was the English A. Geez, I haven’t heard of that before, but I’m not surprised either. channel so there was no translation, and I’m pretty confident in I think we all need to act as if we’re always being monitored. With our local market so I was comfortable holding up my end of the the internet, nanny-cams, pinhole cameras and the like, it’s very debate. It seems that no matter where people are from, they’re easy to be on camera without knowing it. Of course, the right interested in DC area real estate. thing to do is to alert people of any monitoring device, but since people don’t always do the right thing it’s up to us to protect Q. Now that your term as President is almost over what will you ourselves. And, of course, the best way to do this is always to be do next? professional while meeting your client’s expectations. -A manager in Bethesda Q. I’m not happy with the city government always coming up with more legislation affecting real estate, and I think we need to do a better job in blocking most of the legislation. What is GCAAR doing anyway? -An agent in Northwest A. It’s tough, elected officials want to legislate – especially if they believe they went through a bad transaction or were treated unfairly in some way. Additionally, they don’t want to be accused of doing nothing for their constituents and supporters. It’s true there is a huge amount of legislative ideas coming from City

in the News Dan Alpert and Bonnie Casper Discuss the U.S. Housing Market China Central Television, August 22, 2012 Tips for First-Time Renters Washington Post Express, August 17, 2012 Bonnie Casper, 2012 GCAAR President D.C. Area Home Buyers Get Creative in Return of Bidding Wars Washington Post, August 10, 2012 Holly Worthington, 2006 GCAAR President Basic Tips for Buyers Washington Post, August 10, 2012 Holly Worthington, 2006 GCAAR President

A. Well, I’m an agent so I hope to get back to business and help folks buy and sell. And I’ve recently been sworn in as the Maryland REALTORS® Vice President for Montgomery County, and will continue to serve GCAAR as a member of the leadership team, so, there’s still a lot of volunteering on tap. Check out my Directors column in the next issue. Bonnie Casper is the 2012 President of GCAAR. She can be reached at bonnie.casper@longandfoster.com

Rising Rents a Factor in Rent Choice Washington Times, July 26, 2012 GCAAR Maryland Housing Market Shows More Glimmers of Recovery Gazette.net, July 20, 2012 Dennis Melby, 2008 GCAAR President Numbers Show Home Prices Rising WAMU Radio, July 13, 2012 Bonnie Casper, 2012 GCAAR President Low Mortgage Rates Prompt DC Area Home Sales WAMU Radio, July 8, 2012 Bonnie Casper, 2012 GCAAR President Flood of Singles Makes Rentals Hard to Find Washington Examiner, June 23, 2012 Bonnie Casper, 2012 GCAAR President

Bethesda Smart Growth Seminar Draws Another Packed House Continued from page 1

The Bernstein Companies representing the private sector. The public sector panel included: Dave Dabney, Executive Director, Bethesda Urban Partnership; Steve Silverman, Director of the Montgomery County Department of Economic Development; and Mark Winston, Chairman of the Montgomery County Executive Transit Task Force. Future plans include mixed-use development to include residential and commercial expansion with hotels, retail space, expanded parking options and more walkable green spaces.

Capital Area Realtor®

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2013 GCAAR Annual Dues Deadline Friday, November 30, 2012 Your 2013 GCAAR Annual Dues invoice was posted online at gcaar.com on October 1. Unlike MRIS, GCAAR does not keep credit card account information on file; all payment account details must be submitted each billing cycle. GCAAR accepts all major credit cards (American Express, Discover, MasterCard, and Visa), personal/corporate checks, and money orders. We do not accept cash payments for dues. Payment options include: *Paying with a credit/debit card online at www.gcaar.com, where your invoice may be viewed, printed, and paid using our secure online payment system. You will receive an instant e-mail receipt if payment attempt is successful. *Faxing a credit/debit card payment directly to our Accounting Department at 301.296.2188

Step 1: find a GOLD STAR STICKER in this issue of CAR*

*Paying in person at one of our three office locations (Rockville, Silver Spring, or Washington, DC). Please consult our website for hours of operation. (Our Rockville location is open on most Saturdays to provide service to our members.) GCAAR does not take payments over the phone. Payments postmarked on or before November 30, 2012, and received after this date, will not be considered timely. Payment must be received at GCAAR offices or paid online at www.gcaar.com on or before the November 30 due date. The easiest, quickest, and most secure way to pay your dues is online at www.gcaar.com. As of December 1, 2012, all outstanding accounts will incur a $25 late fee. If payment is not received by December 31, 2012, a $150 reinstatement fee will be placed on outstanding accounts. At that time, membership privileges, including SentriLock card services, will be suspended until full payment is received. For billing inquiries, please contact our Accounting Department at 301.590.8781 or at membershiprecords@gcaar.com.

*Mailing payment to our Silver Spring location below: GCAAR, Attn: Annual Dues 8757 Georgia Ave, Suite 600 Silver Spring, MD 20910-3737

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2012 September - October

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2012 September - October

NAR Director’s Report Adrian Hunnings NAR Director The National Association of Realtors® (NAR) will be having its annual Conference and Expo meeting in November in Orlando, Florida. For the first time in 6 years, most Realtors® attending this year’s meeting will be coming from cities where the real estate news is improving. The national elections will be over, and our President and the 2013 Congressional delegations will be determined (unless we’re counting chads again!). Regardless of the outcome in elections, there are a number of issues that will still be looming for either a lame duck session of Congress to tackle or what is more likely “kicking the can further down the road” for the next Congress. Two areas of greatest concern to Realtors® are pending changes in taxation policy and finance policy.

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Taxation An exploding federal debt has forced tax reform into the limelight and it is the most pressing item for a lame duck session of Congress. Many important issues to Realtors® will be decided within this overall debate. The mortgage interest deduction is definitely under attack, and NAR opposes any restrictions to the interest deduction for first and second homes. Likewise NAR supports extension of the mortgage debt cancellation relief that is due to expire December 31, 2012. NAR opposes any changes that would reduce or limit the capital gains exemption ($250,000/$500,000) on the sale of a home. NAR opposes any changes that would reduce or eliminate the property tax deduction. Real Estate Finance Most of the finance issues are more likely to be pushed to the next Congress, but are of great importance to Realtors®. Most everyone, including NAR agrees that we can’t continue Fannie Mae and Freddie Mac under their current structure. But it is critical to our real estate markets that consumers have a reliable source of mortgage funding in all types of markets and under all types of economic conditions. NAR believes that restructured entities should be explicitly backed by the government, have no shareholders, and be subject to tighter regulations on product, revenue generation and usage. NAR supports making current higher loan limits and formula permanent. NAR believes many of the current underwriting guidelines are too restrictive. In order to ensure adequate access to mortgage credit, NAR opposes a narrow definition of Qualified Residential Mortgage (QRM) and supports a Qualified Mortgage (QM) definition that establishes consumer protections, incorporates important ability-to-repay standards, and offers lenders a safe harbor that reduces litigation exposure. The 3.8% Tax Another issue that has been very confusing is the 3.8% net investment income tax created by the health care legislation. There has been much misinformation posted to the Internet and characterizations that this amounts to a transfer tax. The quick answer is that the 3.8% tax is NOT a transfer tax and will never be collected as a transfer tax at settlement on the sale of any type real estate (primary residence or investment property). The tax is a federal income tax on “unearned” income that begins in 2013. If you sell your principal residence, you are still eligible to exclude the first $250,000/$500,000 gain. If your net gain exceeds this limit, then the remaining balance is classified as a capital gain and is included with any other investment income earned (such as capital gains, interest income, dividend income, and net rents) in that year. If your annual income is less than $200,000 (single)/$250,000 (filing jointly), this tax does not apply. If your income is greater than $200,000/$250,000, the 3.8% investment income tax is applied only to the net investment income that takes you over the limit.

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For more in depth information on any of these topics and many other issues tracked by NAR, go to: http://www.realtor.org/political-advocacy

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Serving the Business Needs of OUR Professionals

2012 September - October

International Events Give Members Much Bang for the Buck in 2012 GCAAR’s International Committee wasted no time engaging the members this year with the Tax Implications for International House Hunters class with Linda de Marlor on February 23 and ways to Increase Your International Client Base with Tucker Snyder of HSBC Bank, on April 26. If you missed the first half of this year’s exciting International events, be sure to stay tuned for more exciting events coming your way. For more information about the International Committee, contact Hildy Pollard at HPollard@weichert.com.

February 23 Tax Event L-R, Committee Vice Chair Luba Vidgop Barg, Instructor Linda de Marlor, Committee Chair Hildy Pollard, Committee Member Pushpa Mittal

February 23 attendees

April 26 finance event attendees

SuperStar Secrets – Part 2 Jane Fairweather shared her secrets for success at the SuperStar Secrets Part 2 event sponsored by the Rookie Society on September 12. Here are some of her highlights: •

Have a plan every day!

•

When working with buyers, have each buyer write down their top 10 must haves – separately, then narrow them down to the top three– separately – then compare.

Jane Fairweather • Have each buyer and seller rate their motivation separately so you can judge if they are ready to buy or sell now. • Show no more than six properties a day. After seeing two make them decide which one they like better and eliminate one. Repeat this process after viewing each additional property until there is only one left. That’s the one to write on…they have made the decision for you! • Prospect! Prospect! Prospect! Time is your most valuable asset as a Rookie, so don’t waste it all on social media. Get out there, door knock, cold call, network at different events, and tour so you know your market! • Have scripts for everything - objections, buyers, sellers. These scripts should be in your own words and practice them until you are comfortable and quick with your responses. Have three answers for every objection.

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2012 September - October

Capital Area REALTOR®

Jackie Simon Wins Civil Rights Award On July, 24, GCAAR member and long-time civil rights activist Jackie Simon was recognized by the Montgomery County, MD Council for her tireless advocacy for housing rights for the disabled. Jackie received the Alfred McKenzie Award, given by the Washington Lawyers Committee on Civil Rights. The award is named for a Tuskegee Airman and awarded to individuals whose dedication and courage have produced civil rights victories of particular significance. After announcing Jackie’s receipt of the award, the County Council issued a Proclamation recognizing her lifetime achievements as an advocate for minorities and persons with disabilities. Councilmember Craig Rice recognized Jackie’s lifetime of civil rights activities with a focus on affordable and accessible housing (more than 60 years), saying, “Jackie has opened countless doors for minorities and people with disabilities – she is a game changer.”

“

I hope all of you will join me in that effort to see that people are included in their community instead of isolated in their community. - Jackie Simon

Jackie Simon with Montgomery County Councilmember Craig Rice

”

As the mother of a disabled son, Jackie knows first hand the challenges that disabled people face in housing. Among her many accomplishments, she developed a continuing education program to teach how to serve buyers and sellers with disabilities, created the Barrier Free Living Environments program, and she was an initial inductee into the Montgomery County Human Rights Hall of Fame. “It’s taken 50 years to get where we are, and we still have a long way to go…I hope all of you will join me in1 that effort to see that are1included in their Monarch6"x4"_Layout 9/4/12 12:04 PMpeople Page community instead of isolated in their community,” Jackie told the council.

Jackie with Montgomery County Councilmember Nancy Floreen and her sons Mark Simon, Esq., (standing) and Kirk Simon (seated)

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2012 September - October

T echnology Three Tech Trends to Watch for Your Real Estate Business By Amy Chorew, The Tech Byte

The diverse job that a real estate agent performs has remained basically the same over time. What has changed is how information is delivered and exchanged. The following three tools – iPad, cloud computing and mobile apps – have the potential to transform how we communicate with clients today and in the future, and here is how. iPad The iPad, a tablet computer which is operated by touch, has a promising future in the real estate industry. For all the reasons we bought a laptop and never really used it to its full potential, we will find ourselves using the iPad more often. This portable device is perfect for real estate. Following are a few possibilities. Open Houses: • Instead of having people sign in on a paper roster, create an electronic sign-in for visitors. Be sure to collect their e-mail addresses for future communications. • After the open house, send an e-mail thanking them for attending with pertinent links. What a nice surprise to your potential buyer client. • Have your virtual tour and photos display on the iPad for viewing. • Use this great visual device to show visitors the neighborhood via an interactive map or your blog. Listing Presentations: • I have always advocated the use of visuals during a listing presentation. Create a simple presentation to share your key marketing points. • Don’t forget the power of video. Include a short video with the reasons they should work with you. • Make sure you e-mail all of this to clients before you leave.

We don’t just rely on e-mail. We are now comfortable visiting Web sites to interact, retrieve data and communicate. This makes the move easy. Local applications on your computer will become passé, and computers will become just gateways to the “cloud” where the work is actually done. The browser will connect to all the software that you will need. Google has a free set of cloud computing tools. Try Google Docs to collaborate on Word documents, PowerPoint presentations and Excel spreadsheets. Visit www.google.com/docs to set up an account. DropBox is a great back-up solution. It works in the background, continued on page 12

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Cloud Computing Social media sites, such as Facebook, have created a shift in the way we retrieve communications from our friends and business associates. We go to the Web. To me, this is a real “Move the Cheese” movement — a paradigm shift.

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Buyer Tours/ Showings: • Buyers can never remember one house from another. Put all the listing sheets, complete with pictures, in with pictures, an electronic folder on the iPad for the buyer client. • Use the iPad to take notes for them on the features they liked on each home. • Search for other properties on the Web in the car between showings. • Look for posts about all the great iPad apps that will make your life easier. Make sure to download a mortgage calculator and some sort of app that shows all of the listings in your area.

2012 September - October

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Montgomery County Market Report By Fred Flick, Ph.D., Consultant/Housing Economist This summer, the state of Maryland saw the housing market come back. Over the first eight months, property sales totaled 36,359 units and they were up almost 3% from the same period in 2011. Similarly, the average price of $293,409 rose 4.7% from the comparable 2011 figure. And, the median price of $231,135 jumped 7.3% from the same time last year.

Montgomery County single-family prices have also been trending up. For the first eight months of this year the average price was $531,422, and the median was $430,000. In 2011, the average single-family home sold for $515,161 and the median priced unit cost $405,000. By comparison, through August 2012 prices have risen by about 3.2% and 6.2%, respectively. This is a significant increase, relative to previous years and confirms the bottoming-out of the housing market and the beginning of a period of modest price rises.

Fred Flick

In August, average prices performed better than sales. Maryland’s total sales in August (5,230 homes) jumped almost 10% compared to a year ago, and both price measures rose significantly. Statewide, the average home price came in at $300,805, almost 3% above a year before. Moreover, the median price of $255,498 was up 6% from August 2011. Single-Family Market Montgomery County single-family sales performance also improved over the summer. August year-to-date contracts (6,004) were up by 5% from a year ago. And, new contracts for the month (721) rose 4.8% compared to last August. As expected, single-family settlements for the first eight months (5,321) rose by almost 4% from a year before; moreover, monthly settlements (727) bumped 6.6%. August Condominiums and Cooperatives The condo/coop market also improved significantly over the summer period. Year-to-date sales contracts and settlements were up substantially compared to the first quarter of 2011. Year-to-date there were 1,749 contracts, a rise of almost 5%. And, new contracts for the month (228) jumped 17% from last August. As far as settlements are concerned, yearto-date figures totaled 1,536 – up 3.6%. But, the 209 monthly settlements were 27% higher than the level of August 2011.

While sales have been rising, year-to-date through August, listings volume continued to be lower compared to a year before. Total single-family active listings of 1,895 properties were 27% below the first eight months of 2011. Nevertheless, August monthly new listings (803 units) were up 4.8% from a year ago. At the August contracts pace there was a very short 2.6 months supply. This has had a salutary effect on seller’s prices, even if buyer’s choices are slim.

Similar to the single-family market, August condo/coop inventory was significantly below the 2011 level. Total actives through August (445) were almost 38% below last year’s comparative level. However, as we would expect by summer’s end, August new listings were coming in at a rate that was 12% above last year’s pace. Computing the absorption rate at the August contracts pace, there was about a 2-month supply of properties. Again, we are seeing the phenomenon of tight inventory and how it is supporting prices. However, while slow sales rates and weak prices have caused potential sellers to keep properties off the market, the effect on prices will eventually lead to higher inventories.

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2012 September - October

let along re-employing those who were laid off during the recession and still can’t find work. If we don’t turn the unemployment problem around, we will be in a “growth recession”, where the economy grows but unemployment does not. Housing Industry Production The national housing industry also seems to have finally turned the corner this summer. The new residential home sales rate for July was 372,000 units (seasonally adjusted and annualized rate, saar). This was 25.3% above the July 2011 rate and 3.6% above June 2012. New home inventory was at a 4.6 months supply in July, a much better number than we have seen in a long time. However, the average price of $263,200 was down 3% from a year ago; and, the median at $224,200 was 2.6% lower than in July 2011. Similarly, the median price of $224,200 was about 2.5% below that of July 2011. Although condo/coop prices have been on a downward slide since 2008, the market has finally bottomed-out. Through August, the average and median prices were $249,722 and $205,000, respectively. These prices are higher than earlier in the year and they are 4.7% and 7.9% above the 2011 prices ($238,441 and $190,000). It looks as if we have finally seen a bottom to the condo/coop price market.

Economic JOBS AND GROWTH Economic growth has slowed significantly and this is very troubling to most economists. The Bureau of Economic Analysis’ second quarter estimate for real economic growth came in at a down-trending 1.7%. In the first quarter, real GDP increased 2% (the fourth quarter 2011 growth rate was 3%). This is not an encouraging statistic and it is widely expected that the Fed will authorize another quantitative easing program by mid-September. It will probably involve purchasing more financial assets from banks to increase their liquidity and the availability of loanable funds. Even worse, the rate of new job growth seems to be flattening. The latest report for August indicated that only about 96,000 new private jobs (private nonfarm payroll employment) were created. The national unemployment rate eased down to 8.1% and it has been holding in a range of 8.1% to 8.3% over the past several months. However, with the slow rate of job creation, many people have quit looking, so the unemployment rate just counts those who are employed or actively looking. Some economists feel that a better estimate of joblessness would include discouraged workers and that would yield a number in the 10% to 15% range. Over the first eight months, employment growth has averaged 139,000 jobs per month, but it was 153,000 in 2011. While there are still net positive private jobs being added each month (many jobs are being cut in the state and local government sector), the trend is declining. The economy needs to create about 250,000 new jobs each month to keep up with new folks entering the labor market,

There was also some good news for new home construction. While July total starts (746,000 units, saar) were down 1% from June, they were up almost 22% compared to July 2011. And July single-family home starts (502,000), while down 7% from the previous month, were 17% above a year before. Furthermore, builders seem to be getting more optimistic about the future. Total privately-owned housing permits (812,000) were 07% higher than the June 2012 figure and almost 30% above the rate for July 2011. Single-family permits (513,000) were 5% above June, and 23% higher than last July. Similarly, the national resale housing market looks like it has come back. July single-family home sales rose 2.1% (3.98 million, saar) from June and were 10% above the pace of July 2011. Furthermore, the single-family median price ($188,100) jumped 10% and the average ($237,000) was up 7% from last July. Existing condo/coop sales (490,000 saar) rose 4.3% from June, but jumped 14% from July 2011. The condo/coop median price came in at $180,700 -- up almost 8% from a year before; and, the average condo/coop price ($228,300) rose 6.5%. For all existing homes, inventory totaled 2.4 million properties, and it represented a relatively ‘normal’ 6.4 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. Accordingly, both the sales rate and inventory have adjusted. While builders have cut production, lenders have slowed foreclosure proceedings. Although distressed sales have been about 30% of the market, these properties are being snapped-up by investors to become rentals. Also, while there are a lot of potential foreclosures still waiting in the wings, banks have slowed the rate of proceedings because of legal/ethical problems and to better time market absorption. Accordingly, this is the lowest inventory in eight years and, in some cities, there are roughly one-third fewer listings than a year ago. This is supporting prices, and for sellers it is a big relief. Economic Policy, Interest Rates, and Inflation Unfortunately, the economy is weakening while the political parties are battling for control in 2013. Congress is back in session working on some agreement to postpone the ‘fiscal cliff ’ budget cuts, but we are still hurting from the lack of fiscal stimulus. The only stimulus we have is Fed monetary policy. What is likely is that the Fed will bring back some form of quantitative easing program by midSeptember. At this point inflation is not even a threat, but the trend toward lower job and lower GDP growth is a looming threat. Wall Street is already betting the Fed will be leaning harder on interest rates and buying more bonds. It also explains why the stock market is at highs not seen since 2007. continued on page 12

2012 September - October

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Montgomery County Market Report continued from page 11

Mortgage Interest Rates Freddie Mac’s first August survey shows that average mortgage interest rates have dropped about 20 to 40 basis points from the beginning of the year. In these results, the 30-year fixed-rate averaged 3.55%, while 1-year adjustables (ARMs) averaged 2.61%. Fifteen-year loans came in at 2.86% and 5/1-yr. ARMs were very affordable at 2.78%. At the end of July, the market was working with some of the lowest mortgage rates ever seen, since we have been keeping records. Nevertheless, many buyers are still having trouble qualifying for credit. Excessive debt is keeping many potential buyers and sellers from coming into the market. Consumer Prices and Energy Costs The July Consumer price index did not change from the June value; and, over the previous 12 months, the index showed only 1.4% inflation. This was primarily due to a decline in most energy costs, which offset increases in the indexes for food. Furthermore, there is an expectation that gasoline prices will decline by upwards of 50 cents per gallon in the next week, or so, when the industry shifts to lower cost fall-winter blends. When food and energy costs are taken out of the July index, the annualized “core” inflation was 2.1%, still a number we can live with. Examining the key components of the July index, over the previous year: food prices rose 2.3%; housing shelter costs (mostly rents) edged up 2.1%; and, apparel prices bumped 3%. Furthermore, medical care services rose 4.4%, but medical care commodities were up only 3.4% from July 2011. On the bright side, energy commodities dropped 5.5% -- gasoline was down 5.5% and fuel oil slipped 5.6% from last July. Also, energy services (electricity and natural gas) actually decreased 4.1%, due to a 12.7% fall in natural gas prices. Over the past few months other price indexes, such as the personal consumption deflator, used in estimating real personal consumption expenditures, show consumer price inflation rising at a 1.7% to 2% rate. In general, inflation seems to be at worst about 2%, and possibly on a declining trend. However, along with jobs and GDP, this inflation trend is a concern for the Fed. The Bottom Line Montgomery County’s real estate markets this summer have come back stronger after turning the corner in the spring. Although it took a while, real estate markets in the county have improved, but they are still likely to fluctuate with the state of the economy and local economic policies. Currently, Congress is working on legislation to shift the “fiscal cliff ” budget cuts to next year after the election. This will give us some breathing room to get through this year and then to see what happens next. The summer has seen a turnaround in this area and the nation as a whole. The housing market is slowly coming back. However, there are still a lot of foreclosures that will occur and, consequently, more housing inventory to plow through. But, mortgage lending seems to be easing up and there are some improved lending programs to refinance mortgage balances that will help support market prices. Nevertheless, just like the labor market, there still will be ups and downs in housing for the near future.

Capital Area REALTOR®

Technology, continued from page 11 making mirror-image copies of all of your documents as you change or create them. Some of the applications for cloud computing in the real estate industry include: • A brokerage Web presence that fosters agent individuality, with a social network intranet component, where agents actively engage and share knowledge. • A lead management solution that allows an agent to have remote access, manage her leads and create reports for her brokerage. • Use of SMS text messaging to send updates and leads to agents and to receive information from them. • Document storage, including forms, transaction management and other paperwork. • The ability to fax from the computer, which includes creating PDF files for delivery via e-mail. Mobile Applications By year-end 2010, 1.2 billion people will carry handsets capable of mobile commerce, providing a rich environment for the convergence of mobility and the Web. There are already thousands of applications for these smartphones. Is your Web site mobile-enabled? Try this. Visit your Web site or your company’s Web site with your smartphone. Does your site recognize the browser? Does it know you are visiting from a mobile device and creating a mobile experience? For example, it if I visit www.delta.com with my blackberry, it automatically brings me to a mobile version, so I can check in to flights or check the status of flights. The mobile site is easy to use with screens that I can handle when I am “mobile.” Just as you want for your Web site to show up properly in Internet Explorer, Firefox or another browser, you should want your site to look good in all the mobile platforms as well. Is the Real Estate Search that you provide mobile? If not, look for clients to show up for an appointment with a competitors’ app on their smartphones. Also, consider a private mobile site for your company, where your team can download training sales scripts, forms, Powerpoint presentations, company updates and more. Amy Chorew is a national real estate trainer experienced with helping managers and agents to maximize opportunities with technology. Her knowledge of the industry and the latest technologies available, along with her unique ability to translate it all into easy-to-understand language, makes her a consistently toprated trainer throughout the country. She can be reached at amy@amychorew. com or 860-325-0101, or visit her blog at www.amychorew.com. Her technology coaching series is available at www.thetechbyte.com © Copyright WOMEN’S COUNCIL OF REALTORS®, Reprinted from WCR.org with permission.

Not Receiving GCAAR or DCAR E-mails? Contact GCAAR’s Communications Department to get plugged in again at communications@gcaar.com

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2012 September - October

Green Resources from GCAAR’s Green Committee

E-cycling for REALTORS®

Electronics waste is growing exponentially. Televisions are used on average for less than two years. For computers, it’s three. Recycling, or “E-cycling,” these and other electronic items is critical for preserving landfill space and for ensuring that hazardous materials used to make electronics are properly disposed. Go to www.ecycling.com to find your nearest e-cycling centers by state.

DC Business Energy Rebates Program

The DC Sustainable Energy Utility (DCSEU) Business Energy Rebates program provides DC businesses and institutions with financial rebates for installing energy-efficient equipment. The program is an easy way to reap the rewards for making energy-efficient upgrades to the equipment in your facility. Whether you are purchasing all new equipment for a new business, making upgrades to your current facility, or replacing equipment that’s reached the end of its useful life, the DC SEU wants to help you make an energy-efficient choice to save you money on your utility bills for years to come.

Rebate amounts for each different type of product are automatically calculated in the Business Energy Rebates Program application. Go to www.dcseu.com for information on this and all other DCSEU programs.

NEW FOR FACEBOOK!

NAR’s Green Designation now has a Facebook app to showcase your designation to prospective clients. NAR GREEN agents are encouraged to visit www.GreenResourceCouncil.com to download the app and learn more about what going GREEN can do for your business.

A GREENER MRIS

GCAAR’s Green Committee met with MRIS representative Cassie Clancy in August to learn how we can work together to make the MRIS easier for environmentally-savvy REALTORS®. We are continuing to work with MRIS this fall so the Green fields are not only clearer for REALTORS®, but also more helpful to homebuyers wanting to buy Greener properties.

GCA WCR Members Get Bottom-Line Tips at July Event On July 18, members of the Greater Capital Area of the Women’s Council of REALTORS® received useful tips on “How to Make More Money Using Local Resources,” presented by Tom DeBrine, Manager, Single-Family Home Ownership Program, Housing Opportunities Commission, Rosie McCray-Moody, Manager, Montgomery County Office of Landlord Tenant Affairs, Mike McNamara, Regional Vice President, United One Resources, and Katie Sayago, Days of Service Coordinator, Montgomery County Volunteer Center. In addition to learning how to use these local resources to increase their bottom lines, attendees learned how they could get more involved in the Montgomery County community by working with the Montgomery County Volunteer Center. For more information about upcoming GCA WCR meetings, contact “Q” Armstrong at 301.455.8727 or QRealtor@mris.com.

Presenters give members tips on how to increase their bottom lines at July 18 GCA WCR meeting.

DISCOVER YOUR MAGIC at the 2012 REALTORS® Conference & Expo Every fall, real estate professionals from across the U.S. and around the world come together for the annual REALTORS® Conference & Expo, which will be held November 9-12 in Orlando, Florida. The theme this year is Discover Your Magic. The conference features: •

More than 100 education sessions, featuring nationally-recognized speakers, trainers, and industry experts, who discuss timely topics and critical issues of value to REALTORS®

•

400 industry vendors at the Trade Expo, who present the latest innovative tools just for real estate professionals

•

Unlimited networking and referral-building opportunities, including special events, networking lounges, and the Expo show floor

This is an event you don’t want to miss! Register at www.realtor.org.

2012 September - October

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Rookies vs. Veteran Agents: More Closely Aligned than You Think By Michele Lerner While rookie agents and seasoned agents may seem divided by their age and experience, successful REALTORS® actually have a lot in common regardless of how long they have been licensed. Developing a professional reputation, respecting other REALTORS®as well as yourself and, above all, listening to your clients are key elements to success regardless of whether you network at a country club or a nightclub. Melinda Estridge, owner of The Estridge Group at Long & Foster REALTORS® in Bethesda with almost 25 years of experience, says the highly-educated and professional buyers and sellers in the D.C. area raise the bar for REALTORS®, who need to be extremely welltrained to overcome a lack of experience. Estridge recommends that new REALTORS® begin as a buyer’s agent with a successful team or find a mentor who will provide guidance through complex transactions. “New REALTORS® cannot succeed in this business without the help of other Realtors who are willing to let them shadow them,” says Courtney Abrams, a REALTOR® with Evers & Co. Real Estate in the Dupont Circle office licensed for two years. “It’s critical to have a mentor you trust to help with unexpected issues.” Beverly Nodel, a REALTOR® with Evers & Co. Real Estate in the Chevy Chase, D.C. office with 29 years of real estate experience, says that working in a collegial atmosphere continues to be extremely valuable to her success. She repays the assistance she receives from other agents by helping newer agents and sharing business. Daniel Schuler, a REALTOR® with The Estridge Group at Long & Foster REALTORS® in Bethesda with less than two years of experience, says working with a team has been educational as well as a confidence-booster. “The learning curve in real estate is exponential, so when I’m meeting clients it’s extremely helpful to know I am working with a team of experts,” he says. Positive interactions with other REALTORS® can be as important as experience with clients. “REALTORS® need to be allies, not enemies,” says Estridge. “It’s important to be a team player within the real estate business. Another agent is more important to you and your professional reputation than any client.” Phil Kelley, an associate broker with Re/Max Realty Group in Gaithersburg with 27 years of experience, says he has built his reputation by treating people fairly and always staying professional. Kelley also says listening to buyers and sellers and always acting in their best interests is critical. Nodel says some clients complain that their previous REALTOR® showed them properties they didn’t want to see or couldn’t afford. “It’s important to listen to what buyers want and then explain that you’ll show them properties a little below their price range and a little above it so they can get a better feel for what’s out there,” says Nodel. “It’s very important to listen to your client rather than to your own agenda. It’s not about what you think they should buy.”

Networking For rookie agents, part of the challenge is finding clients to whom

they can listen. Even as social media has expanded REALTORS®’ methods for reaching potential clients, both new and seasoned REALTORS® rely on physical interaction to grow their sphere of influence. “I don’t cook, so I’m always out of the house at restaurants and meeting people,” says Sammy Dweck, a REALTOR® with Coldwell Banker Residential Brokerage in Georgetown licensed for three years. Dweck is involved with a variety of groups such as the Rookie Committee of GCAAR, the GLBT outreach group at the Jewish Community Center, the Jewish Federation, and is an ambassador for the Safe Shores non-profit group. Abrams networks by coaching lacrosse, where she meets parents and other coaches. In addition, she stays in touch with high school and college friends in the area and volunteers with the Longevity Foundation and the Junior League of Washington. “My goal is to say yes to any activity for the Walter Johnson High School alumni group and the Miami University of Ohio’s D.C. alumni group,” says Schuler. Schuler is equally enthusiastic about volunteering for open houses every weekend. “I’ve tried to meet other top producer agents in our office so that if my team doesn’t have an open house one weekend then I would be the first choice for other agents to sit at theirs,” says Schuler.

Advice for Rookies Abrams says she has garnered great experience by shadowing seasoned Realtors® on buyer visits, listing presentations, house tours and while they are writing offers. Nodel says that REALTORS® should develop the ability to anticipate potential issues. “You should be troubleshooting before anything becomes trouble by reading every contract carefully and being on top of every date or deadline,” she says. “People can handle things they expect, so be sure you’re managing your clients’ expectations and not allowing them to be blindsided by anything.” Building a client base takes time. Seasoned REALTORS® recommend that new agents start immediately organizing their contacts along with the rest of their business. “Every REALTOR® should set up a contact management program with complete information,” says Estridge. “You need to keep a profit and loss statement in Outlook and track where your business is coming from.” While gathering experience and organizing business systems are important, all Realtors® need to keep in mind that their professionalism and dedication to their clients are critical to a long career. “The best marketing you can do is to do a really excellent job when you are working with someone,” says Kelley. “Do the best you can for your clients and then it’s just a matter of jogging their memory from time-to-time to bring in referrals.”

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2012 September - October

REALTORS® FCU Merges With Northwest Credit Union On August 1, REALTORS® Federal Credit Union merged with Northwest Federal Credit Union to better serve its members. Members of the REALTORS® Federal Credit Union, now a division of Northwest Federal Credit Union, have greater access to service centers, financial loans, banking services and much more. Northwest Federal Credit Union is a $2.2 billion credit union headquartered in Herndon, Va., with a 65-year history of financial strength and stability. Credit Union members now have access to Northwest Federal’s six Northern Virginia branch locations and 4,600 shared branch service centers nationwide, fee-free business checking and debit cards, mortgage loans, commercial real estate loans, business lines of credit and more. Access to members’ accounts, including account number(s), user name and password, convenient online banking, Member Care Center and website services will remain unchanged. “We’re excited about this merger and the opportunity to provide NAR’s REALTOR® members and their families with a greater variety of personal and business products and resources that will help them achieve their unique financial goals; that could not have been achieved for several more years at our present RFCU growth rate,” said 2002 NAR President and REALTORS® FCU Chairman of the Board, Martin Edwards, Jr., CCIM, from Memphis, Tenn. “While members can still enjoy the benefits of an Internet-based Credit Union, the merger with NWFCU will not only expand virtual access, but also allow in-person financial transactions.” All REALTORS® and their families, as well as NAR’s institutes, societies and councils, are eligible to become Credit Union members. NAR staff and the staffs of state and local REALTOR® associations and boards and their families are also eligible. REALTORS® Federal Credit Union, a Division of Northwest Federal Credit Union, is a member benefit offered by NAR and is a partner in the REALTOR Benefits® Program. NAR’s REALTOR Benefits® Program offers practical solutions for REALTORS® on the products and services they use every day. For details, please visit www.REALTORSFCU.org or call Member Care at 866-295-6038.

Weekly Calendar on GCAAR.com By now you’ve probably noticed the new “This Week at GCAAR” calendar on the home page of gcaar.com. The calendar made its debut this July after the GCAAR Communications Committee made the request for quicker access to what’s happening at GCAAR. Now visitors to the site can see at a glance the week’s events and also have the option of linking to a full view calendar as well. If you haven’t seen it yet, visit gcaar.com to check it out.

Fire Station 1 Cool Win for YPN Happy Hour On July 12, YPN took a break from the heat and cooled off with a sizzling Happy Hour at Fire Station 1 Restaurant in downtown Silver Spring. The networking and happy hour event drew over 50 people, including Dine Out attendees eager to win the iPad drawing for the GCAAR Cares Fundraiser. The crowd enjoyed great food, discounted drinks, and lots of opportunity to network. Many thanks to our event sponsor:

(L-R) Ron Scherr, YPN Chair Colin Johnson, Mark Lipman, Shulman Rogers, and Mark Baron Attendees networking at the bar

(L-R) YPN Staff Liaison Pia Clarke, YPN Vice-Chair Koki Adasi, and Mark Baron of Real Estate Mortgage Network

(L-R) Long & Foster attendees Leslie Friedson, Jeremiah Ganeto, Theresa Nielson, Tyler Siperko

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2012 September - October

Capital Area REALTOR®

iPad Drawing Smash Hit at GCAAR Cares 3rd Annual Dine Out Attendees at the GCAAR Cares 3rd Annual Dine Out at Fire Station 1 Restaurant in downtown Silver Spring on Thursday, July 12 experienced a real treat this year. The first-ever iPad drawing, arranged and coordinated by GCAAR Cares’ Fundraising Subcommittee Chair, Jason Bradley, was a smash hit! This event, coupled with the YPN Happy Hour, drew over 50 people, eager to purchase drawing tickets from 2012 President-Elect Michael McGreevy. The drawing raised over $1,000 in ticket sales, which more than doubled the original selling goal of 100 tickets. Despite

2012 President-Elect Michael McGreevy (center) wheels and deals with members for iPad drawing ticket sales

Bill Rozek, Embrace Home Loans with GCAAR Cares Committee Chair Sharon Rogers

GCAAR REALTORS® in the Community Long and Foster Fundraiser On Wednesday, July 18, Long and Foster’s Woodley Park and Chevy Chase offices raised over $5000 for the Washington Humane Society (WHS) at a silent and live auction attended by more than 150 REALTORS®. Past President and Broker Holly Worthington says agents make homes for pets, when they find a new home for a client. For more information about WHS, go to www.washumane.org

getting their fill on Fire Station 1’s tasty Happy Hour treats, some stayed for dinner to continue supporting the GCAAR Cares fundraising efforts. GCAAR Cares thanks all who dined in, and to those who sold and purchased drawing tickets. Special thanks to our iPad sponsors, Counselors Title, LLC and Embrace Home Loans.

C OUNSELORS TITLE, LLC www.ctitle.net

Long and Foster Fundraiser: On Wednesday, July 18, Long and Foster’s Woodley Park and Chevy Chase offices raised over $5000 for the Washington Humane Society (WHS) at a silent and live auction attended by more than 150 REALTORS®. Past President and Broker Holly Worthington says agents make homes for pets, when they find a new home for a client. For more information about WHS, go to www.washumane.org Caption: (l-‐r) Keith Gilbert with dog Buster, GCAAR Past President Holly Worthington, Carla LaBatt, and John Plank with his rescue dog, Scout

GCAAR Cares Staff Liaison Debbie Bell presents iPad to drawing winner and 2012 Immediate Past Present Adrian Hunnings

GCAAR Cares Committee Co-Chair Lyn Alexander attends Dine Out with mom Muriel Yager

(L-R)) Keith Gilbert with dog Buster, GCAAR Past President Holly Worthington, Carla LaBatt, and John Plank with his rescue dog, Scout

HOMEOWNERSHIP EMPOWERMENT WORKSHOP FOR ASIAN AMERICANS A SUCCESS The Asian-American Homeownership Counseling Inc. (AAHC) hosted a successful workshop, “Homeownership Matters in AAPI Communities,” on Saturday July 14 at John F. Kennedy High School in Silver Spring, Maryland in partnership with the Asian Real Estate Association of America (AREAA) DC Metro Chapter and Voice of Vietnamese Americans (VVA). The workshop was intended to educate the Asian American Pacific Islander (AAPI) community on a wide variety of housing-related issues, including mortgage debt forgiveness, Making Home Affordable programs, fair-housing laws and loan modification scams. The event also featured translators of seven different languages to facilitate better understanding of the content. Montgomery County Executive Ike Leggett highlighted the Asian

minority myth, that is, that all Asian Americans are “well-off ” and do not need assistance in homeownership education, and that they do not experience problems, including misinformation and fraud due to language barriers and discrimination. That point was echoed by HUD Assistant Secretary of Fair Housing and Equal Opportunity, John Trasviña, who stated that one in five AAPI families experience housing discrimination, yet only 1% of HUD’s Fair Housing complaints are from the AAPI community. Ms. Minh Truong, a Vietnamese-American attendee, remarked: “This event was very informative. A lot of this information is not available to the Asian community and I really appreciate the organizers [AAHC] for putting together this event.”

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2012 September - October

November - December 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. November 1 GRI 301 CEUs: 6 elective credit hours for DC Time: 9:00 a.m. – 4:30 p.m. Instructor: Vimal Kapoor & Jill Pogach Michaels, Esq.

November 12 (con’t) MD Legal & Legislative (2009 – 2012) CEUs: 3 required credit hours for MD; DC elective Time: 1:30 p.m. – 4:30 p.m. Instructor: Al Monshower, Esq.

November 2 DC Legislative Update CEUs: 3 required credit hours for DC Time: 9:30 a.m. – 12:30 p.m. Instructor: Tom Lynch

November 14 *ASAE Building, 1575 I St., NW Washington, DC 20005* DC Fair Housing CEUs: 3 required credit hours for DC Time: 9:30 a.m. – 12:30 p.m.

DC Fair Housing CEUs: 3 required credit hours for DC Time: 1:30 p.m. – 4:30 p.m. Instructor: Tom Lynch

DC Legislative Update CEUs: 3 required credit hours for DC Time: 9:30 a.m. – 12:30 p.m.

November 5 GRI 302 CEUs: 6 elective credit hours for DC Time: 9:00 a.m. – 4:30 p.m. Instructor: Linda DeMarlor

November 15 GRI 304 CEUs: 6 elective credit hours for DC Time: 9:00 a.m. – 4:30 p.m. Instructor: Al Monshower, Esq.

November 7 GRI 303 CEUs: 6 elective credit hours for DC Time: 9:00 a.m. – 4:30 p.m. Instructor: Al Monshower, Esq.

November 16 Environmental Issues CEUs: 3 elective credit hours for MD & DC Time: 9:30 a.m. – 12:30 p.m. Instructor: Vimal Kapoor

November 8 Regional Sales Contract CEUs: 3 elective credit hours for DC, MD, & VA Time: 9:30 a.m. – 12:30 p.m. Instructor: Jill Pogach Michaels, Esq.

Going Green CEUs: 3 elective credit hours for MD, DC, & VA Time: 1:30 p.m. – 4:30 p.m. Instructor: Vimal Kapoor

November 9 Reverse Mortgage CEUs: 1.5 elective credit hours for DC & MD Time: 9:00 a.m. – 10:30 a.m. Instructor: Eric Rittmeyer New Member Orientation 11:00 a.m. – 12:30 p.m. Maryland Code of Ethics CEUs: 3 required credit hours for MD; DC elective Time: 1:30 p.m. – 4:30 p.m. Instructor: Jill Pogach Michaels, Esq. November 12 MREC Agency –Residential CEUs: 3 required credit hours for MD; DC elective Time: 9:30 a.m. – 12:30 p.m. Instructor: Al Monshower, Esq.

November 19 GRI 305 CEUs: 6 elective credit hours for DC Time: 9:00 a.m. – 4:30 p.m. Instructor: Valasie August November 29 Regional Sales Contract CEUs: 3 elective credit hours for DC, MD, & VA Time: 1:30 p.m. – 4:30 p.m. Instructor: Adrian Hunnings December 3 GRI 401 CEUs: 6 elective credit hours for DC Time: 9:00 a.m. – 5:00 p.m. Instructor: Rick Brown

December 5 GRI 402 CEUs: 6 elective credit hours for DC Time: 9:00 a.m. – 5:00 p.m. Instructor: Valasie August December 6 MD Legal & Legislative (2009 – 2012) CEUs: 3 required credit hours for MD; DC elective Time: 9:30 a.m. – 12:30 p.m. Instructor: Al Monshower, Esq. MREC Agency - Residential CEUs: 3 required credit hours for MD; DC elective Time: 1:30 p.m. – 4:30 p.m. Instructor: Al Monshower, Esq. December 7 Buyer Beware CEUs: 3 elective credit hours for DC, MD, & VA Time: 9:30 a.m. – 12:30 p.m. Instructor: Vimal Kapoor Red Flags CEUs: 3 elective credit hours for DC & MD Time: 1:30 p.m. – 4:30 p.m. Instructor: Vimal Kapoor December 10 Reverse Mortgage CEUs: 1.5 elective credit hours for DC & MD Time: 9:00 a.m. – 10:30 a.m. Instructor: Eric Rittmeyer New Member Orientation 11:00 a.m. – 12:30 p.m. Maryland Code of Ethics CEUs: 3 required credit hours for MD; DC elective Time: 1:30 p.m. – 4:30 p.m. Instructors: Jill Pogach Michaels, Esq December 12 DC Fair Housing CEUs: 3 required credit hours for DC Time: 1:30 p.m. -4:30 p.m. Instructors: Counselor’s Title December 13 GRI 403 CEUs: 6 elective credit hours for DC Time: 9:00 a.m. – 5:00 p.m. Instructor: Tom Lynch

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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 You can also see all of NAR’s political advocacy going on in DC by visiting http://www.realtor.org/political-advocacy/nar-activity-in-dc

NAR Sends Letter to Federal Reserve on Latest Efforts to Boost Economy NAR recently sent a letter to Federal Reserve (Fed) Chairman Ben Bernanke on the Fed’s latest efforts to boost the economy, generally referred to as quantitative easing three or QE3. QE3 will be targeted at reducing mortgage interest rates via the purchase of agency mortgagebacked securities (MBS). NAR expressed its support of Fed efforts to address housing. However, NAR also offered suggestions on how to make these efforts more effective.

Healthcare Reform

NAR has launched an updated webpage on health care reform, available at http://www.realtor.org/topics/health-care-reform. This is a great resource for questions on how the law impacts Realtors and much more information beyond the 3.8% tax.

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 will begin in January. MAR will begin discussions this Fall of issues to proactively push as well as issues to be aware of that might have an impact on the real estate transaction.

Montgomery County

Zoning Code Rewrite— Planning Board review of their consolidated draft of the zoning rewrite began on September 10th. The draft will be reviewed by topic, with one or two Monday evenings per month and 2 hours every Thursday dedicated to the review process as detailed below. You can go to the Planning Board’s website for the time and specific topics to be covered at each session: http://www.montgomeryplanningboard. org. Planning Board meetings are also video and audio streamed live from the Board’s website. Project staff welcomes comments on the consolidated draft at any time via their comment board.

Legislation

For the most up to date information on Montgomery County legislation, visit the County’s website at www.montgomerycountymd.gov. For Zoning Text Amendments (ZTA), refer to the following legend: http://www.montgomeryplanning.org/development/about/zoning_legend.shtm Bill 25-12, Taxation - Impact Tax – Bikesharing Pending Bill 25-12 would allow transportation impact tax funds to be used for certain bikesharing stations. It would also generally amend the law government the transportation impact tax. Bill 14-12, Economic Development Fund – Amendments Enacted Bill 14-12 would require the Executive to propose and update an economic development strategic plan, subject to approval by the Council. The success or progress of the strategic plan must be measurable and include measures to address: (1) job creation; (2) private sector compensation and benefits; (3) target industries; (4) target geographic areas; (5) workforce education and training; (6) growth in tax base; (7) economic opportunity for residents; (8) encouragement of entrepreneurs and small business; (9) land use; and (l0) other actions necessary to promote economic development in the County. The Bill would also amend the Economic Development Fund (EDF) law by establishing criteria for offers of assistance from the EDF, modify the time and content of the notice the Executive must give to the Council before making a tentative offer of more than $100,000, and require Council approval of a tentative offer of more than $500,000. Zoning Text Amendment 12-14, Bikeshare Facilities – Incentives Pending An amendment to the Montgomery County Zoning Ordinance to define bikeshare facility, allow a building permit for a bikeshare facility under certain circumstances without a requirement for conformance to an approved site plan and generally amend the provision concerning permits exempt from conforming to an approved site plan. Zoning Text Amendment 12-13, Rural Cluster (RC) Zone Impervious Surface Limits Pending An amendment to the Montgomery County Zoning Ordinance to amend the RC zone to establish impervious surface limits where specifically recommended in the area master or sector plan. Zoning Text Amendment 12-12, Density Transfer - C-2 to CBD Zones Pending ZTA12-12 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

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2012 September - October

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.

DCAR is now preparing official comments on the regulations. We would like your insights or concerns to draft our testimony.

Zoning Text Amendment 12-11, Accessory Apartments - Amendments Pending ZTA 12-11 as introduced would allow accessory apartments to be permitted without a special exception under certain circumstances. Among other requirements for an accessory apartment in ZTA 12-11, an accessory apartment would be prohibited if the proposed location was located within 500 feet of a pre-existing accessory apartment on the same street. ZTA 12-11 would limit the number of people in an accessory apartment to three people and would require at least one off-street parking space for the apartment.

• temporary signs on public space (Chapters 2 and 6) o No sign shall be displayed without a permit except signs less than one square foot.

The Planning Board recommends guarding against a County-wide proliferation of accessory apartments; it recommends a return to current special exception requirements if the total number of accessory apartments exceeds 2,000. Larger accessory apartments (over 800 square feet of floor area) and apartments in cluster developments would only be permitted through the special exception process. Zoning Text Amendment 12-10, Established Building Line Clarification Pending The current established building line provision lists buildings that are excluded from the setback calculation. ZTA12-10 would clarify 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. Zoning Text Amendment 12-6, Commercial/Residential Zones – Transit Proximity Definition Enacted An amendment to the Montgomery County Zoning Ordinance to amend the definition of transit proximity for CR, CRN, and CRT zones and generally amend the parking requirements and amenity points associated with transit proximity. For additional information please contact Meredith Weisel, Esq. at meredith@wgrelations.com or Katalin Peter, Esq. at kpeter@gcaar.com.

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.

NEW DC Proposed Sign Regulations—Working with District Officials to SAVE you Money The District Government released NEW proposed sign regulations on August 17th (full text available at http://www.dcregs.dc.gov) in order to update the types of signs allowed and prohibited in the District, as well as consolidate the current sign regulations into a single title, Title 13 of DCMR (District Code of Municipal Regulations). DCAR staff contacted DCRA immediately to clarify some of our initial questions. They assured us the new regulations are meant to simplify what is currently on the books and not to harm REALTORS®’ business interests, however, readily admitted understanding the need for proper clarification. DCRA’s Legislative Affairs Specialist, Helder Gil and his colleague, Alice Kelly, from the Department of Transportation (who also has enforcement jurisdiction), then joined us at our September Public Policy meeting to discuss the regulations.

The following areas are potentially problematic for the real estate:

• private property (Chapter 7) o Temporary sales or leasing signs indicating the availability of the new property may be displayed subject to a permit for one hundred eighty days and contain the date of the sign’s initial display. Temporary directional signs indicating the holding of an event or a real estate open house at a particular property may be displayed without a permit; provided that these signs are first posted on the day of the event and are removed within one hour after the event concludes. o The area of a real estate sign shall not exceed twenty square feet if located within a residential district, or sixty square feet if located outside a residential district. o A real estate sign exceeding six square feet shall require a permit. o In a residential district, one sign for the sale, rent, or lease may be placed on private property or attached to the exterior of the building provided that if the sign exceeds six square feet, it requires a permit and does not exceed twenty square feet. o In a non-residential district, one sign for the sale, rent or lease may be placed on private property or attached to the exterior of the building provided, that if the sign exceeds six square feet, it shall require a permit and shall not exceed sixty square feet. • non-residential signage (Chapter 6 and 7) o No banner shall be displayed on public space without a permit. Banners attached to private property that extend over pubic space must be approved by all relevant permitting officials. Banners attached to a building shall require a permit. o In a non-residential district, a building more than four stories tall may display signs for the sale, rent, or lease provided that if a sign exceeds six square feet, it shall require a permit and the total square footage of all real estate signs shall not exceed eight hundred square feet. • schedule of fines (Chapter 13) o Fines range from $100 up to $2000. An incidence of displaying a permitted sign without the permit number ad date of issuance could cost the violator $500. Locating a real estate sign on premises other than those being advertised would cost the violator $100 and displaying a sign on private property in excess of the size limitations specified for each sign would cost $2000. There may be other sections of relevance (e.g., signage under the Historic Review Preservation Board (Chapter 4). For questions, comments, or a detailed list of each chapter, please contact Katalin Peter, Esq. at kpeter@gcaar.com.

Creation of the DC Health Care Exchange A newly-installed governing Board for DC Healthcare Exchange (created in accordance with the Affordable Healthcare Act) is currently working with the mayor’s Health Reform Implementation Committee (HRIC) that to address the District’s health care market. continued on page 20

2012 September - October

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Capital Area REALTOR®

DC Public Policy Update

Enacted: Rules Pending B19-818, “Sign Regulation Authorization Temporary Amendment continued from page 19 Act of 2012” Enacted: Rules Pending The governing board needs to have DC’s exchange operational in 2013 B19-819, “Sign Regulation Authorization Amendment Act of 2012” and open for business by 2014. Pending To allow the Mayor to amend regulations surrounding the erection, The Board recently voted to require all DC-based businesses with fewer hanging, placing, painting, display, and maintenance of outdoor than 50 employees seeking insurance to purchase coverage through the signs and other forms of exterior advertising. It also provides the city’s insurance exchange. Mayor with the authority to issue, amend, repeal, and enforce rules governing signs on public and private property. It would also provide This decision stems from the District’s small population and relatively enforcement mechanisms for these rules” (See previously discussed low number of uninsured. District regulators are concerned about “Proposed Sign Regulations.”) having enough people participating in the exchange to manage risk and keep the exchange viable. If the District-run exchange is not B19-217, “Residential Parking Protection Act of 2011” self-sustaining, its governance would be handed over to the federal Enacted government - a situation city officials adamantly want to avoid. To ensure that full-time students who reside within the boundaries Lead Paint Proposed Rulemaking and Disclosure Forms On August 31, the District Department of the Environment (DDOE) issued new proposed lead regulations for review and comment. They can be viewed on DDOE’s website, at www.ddoe.gov (follow the links to “Lead-Safe and Healthy Homes” then “All About Lead”). These proposed rules implement the Lead Hazard Prevention and Elimination Act of 2008 and the Lead Hazard Prevention and Elimination Act of 2010. DDOE had previously issued regulations in July of 2011, which it is now refining in this August 31, 2012 version. The rules focus on the lead-safe work practice mandates that need to be followed when any worker is involved in eliminating lead-based paint hazards or in disturbing any paint on any pre-1978 residential property or child-occupied facility. Major changes to such practices include: • Scope of Abatement Permit Requirement • Renovation, Repair and Painting Rule Requirements • New enforcement-related provisions • Clarification of what rights and responsibilities attach to property owners and to tenants, with respect to access to units for the purpose of conducting lead-based paint activities DCAR also continues to work closely with the District’s Department of the Environment (DDOE) and GCAAR Contract and Clause attorneys on suggestions to improve the lead paint form. Most recently, DDOE’s officials reached out to us for our input as they continue to try and improve the Lead Paint Form. Nicknames and DC Real Estate Licenses It has come to our attention that there are issues surrounding the use of nickname versus complete formal names on DC Real Estate Licenses. The DC Real Estate Commission issues DC Real Estate Licenses by an individual’s exact formal name. However, as many of you are aware many licensees market and hold themselves out by their nickname. This has caused some issues with the Real Estate Commission. We will be working with the Real Estate Commission to try to address these issues. District Legislation DCAR Governments Staff has reviewed more than 900 bills and 900 resolutions that have been passed during this Council Period 19. For the most up to date information on District legislation, visit www.dccouncil.us. B19-817, “Sign Regulation Authorization Emergency Amendment Act of 2012”

of the District of Columbia shall not be issued or use a reciprocity parking sticker for out-of-state vehicles. This bill was introduced in large part by the surrounding residential communities of AU and Georgetown. B19-568, “The Pedestrian Protection Amendment Act of 2011 Enacted To require vehicles to stop before passing through a crosswalk when a vehicle in the next lane is stopped. B19-514, “The Neighborhood Spillover Parking Prevention Act of 2011” Pending To give the Mayor authority to grant a property owner’s request to make a property ineligible for residential parking permits when a property does not have any residents at the time of the a request. B19-749, “Energy Innovation and Saving Amendment Act of 2012” Pending To clarify that electrical vehicle charging stations are not utilities, to exempt solar energy and cogeneration energy systems from personal property tax and promote energy conservation by requiring commercial properties to keep doors and windows closed if air condition systems are in use. B19-824, “Omnibus Alcoholic Beverage Regulation Amendment Act of 2012” Pending The Omnibus Alcohol Bill 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 attempts to bring in other matters related to real estate: “to amend Title 42 of the District of Columbia Official Code 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 Title 6 of the District of Columbia Official Code to create new soundproofing requirements for mixed use buildings constructed after January 1, 2013.” B19-887, “Homeowner Protection Amendment Act of 2012” Pending To amend the DCRA Civil Infractions Act of 1985 to provide full recovery for a homeowner harmed by the substandard work performed by a previous owner. This could be the cause of great concern because it would allow survival of certain claims by buyers after delivery of deed.

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Board Briefing The GCAAR Board of Directors met on June 8, 2012 in our Silver Spring Office and on July 20 in our Rockville office. The Board welcomed Janice Kirkner, candidate for office of Secretary of the Maryland Association of REALTORS® (MAR) in 2013 to the June meeting. Janice addressed the Board and discussed various issues that will confront the real estate industry in the coming year.

Thank You 2012 RPAC Investors! Golden ‘R’

Thomas Carruthers III Bonnie Casper GCAAR Carole Maclure Dale Ross

Crystal ‘R’

Fred Kendrick Jill Pogach Michaels Michael Moran

Sterling ‘R’ Koki Adasi James Coley, Jr. Suzanne Des Marais Edward Downs Marc Fleisher Brandon Green Harold Huggins Adrian Hunnings Ellen Katz Tim Knobloch Ed Krauze Dana Landry Alana Lasover Bo Menkiti

Shelly Murray Frank Pietranton, Jr. Scott Reiter Randy Rothstein Veronica Seva-Gonzalez Joy Siegel Brenda Small Frank Snodgrass Mo Snowden Christopher Suranna Patrick Tangney Patrick Weed Edward Wood

Capital Club Wendy Banner David Bediz Elizabeth L. Blakeslee John Bragale Jan Brito Nathan Carnes Lori Connor Christopher Darby Joe Detrick Jane Fairweather Gregory Ford Jeffrey Ganz Ricki Gerger Carl Gewirz Ashton Gonella Sally Hamidi Mynor Herrera Diana Keeling Elley Kott Judith Levin Kymber Lovett-Menkiti Donald Maclure

Katie Maclure Yolanda Mamone Peg Mancuso Dale Mattison Kevin McDuffie Michael McGreevy Dennis Melby Thomas Muldoon Vittorio Muzzatti John Nalls Ruth Papuchis Amy Ritsko-Warren Bonnie Roberts-Burke Raymond Ruppert, Jr. Susan Sanford Jason Sherman Prabhjit Singh Colleen Smyth Cogan Glen Sutcliffe Rachel Valentino Kirsten Williams

The Board was pleased to endorse her candidacy for the office of Secretary of MAR for 2013. The Board also named 2012 President Bonnie Casper, to a two-year term as District 2 Vice President of MAR. President Bonnie will replace 2008 President Dennis Melby who has served as District Vice President for the last four years. The Board thanked Dennis for his many years of service to the real estate industry and to REALTOR® members across the region. The Board was also proud to endorse GCAAR member and Director Elley Kott for the position of At-Large Director of MAR. Members of the Board attended the National Association of REALTORS® (NAR) Midyear meetings and joined 13,000 fellow REALTORS® at the REALTOR® Rally in Washington DC on May 17.

REALTOR® Party GCAAR members have invested over $144,000 in the REALTOR® Party in 2012! Please join thousands of your fellow REALTORS® and support the REALTOR® Party by making your investment today! Invest online at www.gcaar.com.

FORMS The Contract and Clause Committee updated, and the Board approved, the release of revisions to a number of forms including the HOA, Condominium, and Co-op Resale Disclosure Forms. The Property Management Committee is working on a Tenant Agency form.

SPEAKER SERIES The Public Policy Committee will continue the 2012 Speaker Series this fall. Montgomery County Executive Isiah Leggett will speak to the members in October.

DEVELOPMENT ROUNDTABLES The 2012 Development Roundtable series continued with a presentation about coming development in Bethesda. Over 100 GCAAR members attended the event. The Roundtable series continued in the fall with a presentation on the Southwest sector of the District of Columbia on September 27.

Rockville Office Now Open on Saturdays

We are pleased to announce that as of September 22, 2012, our Rockville office is now open on most Saturdays (with the exception of holidays) from 10:00 am to 3:00 pm to provide service to our members. If you’re out and about and need to pick up a sign for your open house or get a lockbox battery, you don’t have to wait until Monday morning to do it! The office is located at 9707 Key West Avenue, or you can call (240) 631.1913.

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2012 September - October

Capital Area REALTOR®

Q uiz The Ins and Outs of Short Sales Are your buyers or sellers considering a short sale? These transactions can vary greatly, and they almost always involve some complications. Take this quiz to find out how much you know about these transactions. 1. What is a short sale? a. When a property sells for less than its current market value.

b. When a listing sells for below the amount the seller owes on the mortgage. c. When a listing is sold in a short amount of time. d. All of the above.

2. Which of the following circumstances are appropriate for a short sale? a. When a seller needs to relocate soon due to a career change. b. When a seller has to move quickly into a larger or smaller home due to family issues. c. When a seller loses his or her job. d. All of the above.

3. Which of the following is NOT an effective strategy for owners who are having trouble paying their mortgage but don’t want to be forced into a short sale? a. Refinancing a mortgage loan at a lower interest rate. b. Working out a different mortgage payment plan to help get caught up. c. Putting mortgage payments on credit cards until one’s financial situation improves. d. Requesting a forbearance period.

4. What is the first step sellers should take in the short-sales process after reaching out to their lenders?

a. Network with friends and family to find an interested buyer. b. Get an appraisal of the house. c. Hire a qualified team of short sales specialists. d. Start liquidating assets.

5. Which of the following documents is NOT typically required by lenders prior to approval of a short sale? a. A hardship letter detailing a seller’s finances and explaining why the short sale is needed. b. A copy of the purchase contract and listing agreement. c. Proof of income and assets. d. The seller’s work history over the past two years.

6 . How long does it usually take a lender to review a short sale package?

a. Between one and two weeks. b. About a month. c. Between two and four months. d. About six months.

7 . When is a short sale offer accepted?

a. When the seller accepts the offer. b. When the lender is informed of the offer. c. When the lender approves of the offer verbally or in writing. d. When a contract is formed between buyer and seller.

8 . Which of the following is a potential downside of short sales?

a. The lender may demand a cut in the real estate agent’s commission. b. The short sale can negatively impact the seller’s credit score. c. The seller may have to sign a note promising to pay back remaining mortgage debt. d. All of the above. Quiz Answers

1. Correct Answer: When a listing sells for below the amount the seller owes on the mortgage. If the seller owes the lender more than the property can be sold for and does not have other funds to make up the difference at closing, that transaction is considered a short sale. 2. Correct Answer: All of the above. Up until recently, lenders defined financial hardship very narrowly, involving extenuating circumstances such as job loss or major medical bills. However, as foreclosures have spiked in recent months, lenders have become much more flexible in what they consider hardship, and they’re more willing to work with sellers to keep them from walking away from their homes. 3. Correct Answer: Putting mortgage payments on credit cards until one’s financial situation improves. Refinancing a loan, getting a different payment plan, or requesting a forbearance period are all sound pre-short sales approaches, but going deeper into debt at a higher interest rate is not. 4. Correct Answer: Hire a qualified team of short sales specialists. The first step sellers should take in a short sale is to hire a qualified real estate professional and a real estate attorney who specialize in short sales. They should interview at least three candidates for each and look for prior experience in these types of transactions. 5. Correct Answer: The seller’s work history over the past two years. In addition to a hardship letter, a copy of the purchase contract and listing agreement, and proof of income and assets, lenders typically require copies of the seller’s federal income tax returns from the past two years. 6 . Correct Answer: Between two and four months. If a seller only has one mortgage, the review typically takes around two months. If a seller has a first and second mortgage with the same lender, the review can take about three months. If a seller has two or more mortgages with different lenders, it can take four months or even longer. For more information, go here. 7 . Correct Answer: When a contract is formed between buyer and seller. To be considered “accepted,” a formal contract for a short sale must be developed that is approved by the buyer, the seller, and the lender. Before the actual transaction takes place, agents are required to disclose the accepted offer to cooperating brokers, and other offers can still be made on the listing. Learn more about this here. 8 . Correct Answer: All of the above. Lenders have sometimes required that agents take a commission cut as a condition of a short-sale arrangement. Also, forgiven mortgage debt can lower sellers’ credit scores. Finally, sellers might have to sign a promissory note agreeing to pay back the amount of the mortgage loan not covered by the short sale.

B:10.875”

Capital Area Realtor®

Serving the Business Needs of OUR Professionals T:10”

2012 September - October

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”

An in-depth pre-approval process. A more predictable outcome. The PNC pre-approval is underwritten by a PNC mortgage professional. We walk your client through the entire application process. We perform a full credit review and, if approved, the result is a true commitment to lend. From the start. See what makes us different at pncmortgage.com/agentalliance

B:15”

S:13.5”

PNC Mortgage

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2012 September - October

Capital Area REALTOR®

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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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