Illinois REALTOR® January 2018 by Illinois REALTORS®

THE VOICE FOR REAL ESTATE IN ILLINOIS

JANUARY 2018

HAPPY BIRTHDAY ILLINOIS! REALTORS® plan year of celebration • Pullout map: See where members are making a difference • Bicentennial Plaza taking shape

• Q&A: Task force leaders guide events

Smarter lead generation for 2018 Market Watch: 2018 Forecast

www.IllinoisRealtors.org

THE OFFICIAL PUBLICATION OF ILLINOIS REALTORS®

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CONTENTS

JANUARY 2018

HAPPY BIRTHDAY ILLINOIS !

REALTORS® plan year of celebration PAGE 12

Cover photo: Terry Farmer Photography – www.terryfarmer.com

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Departments

ILLINOIS REALTORS®

Advocacy • Education • Ethics • Legal • Outreach

5 President’s Message: Moving forward by building inclusion 6 What’s Online

Features

8 Quick Takes: Home remodeling projects that bring joy, Illinois REALTORS® help in disasters’ aftermath, 2017 Illinois tax credit for disaster victims

12 Bicentennial Plaza to showcase Springfield’s history, Lincoln ties

10 Legal Update: For whom may licensees work?

14 Local projects part of REALTORS® support for Illinois Bicentennial

24 At the Capitol: PACE Act: A valuable tool for commercial owners

16 State's 200th birthday puts focus on REALTORS® commitment to 'give back'

27 RVOICE: Fighting rental regulations, sprinkler requirements and more 28 Commercial Corner: Get the 411 on a commercial real estate career

19 Cracking the Code: 4 Ways to Generate Good Online Leads

30 Member Outreach: What are you waiting for? 32 Market Watch: 2018 Forecast

22 10 Takeaways from the 2017 REALTORS® Conference & Expo

33 Ethics Hearings 34 REALTOR® Community

ILLINOIS REALTOR® January 2018

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PRESIDENT’S MESSAGE Matt Difanis | ABR, CIPS, GRI | 2018 President

MOVING FORWARD BY BUILDING INCLUSION In 2017, Illinois REALTORS® asked members to take a close look at the association’s priorities as part of a strategic planning process. The nearly yearlong effort used polling and engaged the members of the Strategic Thinkers Working Group and the Strategic Planning Committee in a discussion of what Illinois REALTORS® should focus on in the years ahead. What resulted was a clear top directive: Build the association’s relevance to the real estate industry by attracting a diverse membership and leadership. This challenge to build inclusion really resonated with me as the association began the work to implement the Strategic Plan. At the Inaugural Banquet held in Naperville in October, I made the case that building a diverse organization wasn’t just the right thing to do, it was the only way to remain relevant in the decades ahead. As I noted in my inaugural remarks: “If we are looking for a road map to irrelevancy and organizational extinction, the path would be clear and easy: Fail to recruit and engage minority REALTORS® into the business and into our organization’s governance.” Yes, this is something I am passionate about, and I am so

fortunate to have as partners in this effort representatives of associations including the Dearborn REALTIST® Board, the Asian Real Estate Association of America, the Women’s Council of REALTORS® and the National Association of Hispanic Real Estate Professionals. These organizations — and others — make up the vibrant tapestry that is our shared REALTOR® family. They also have leaders and members who can make a difference in the Illinois REALTORS®. Any discussion of inclusion must translate fully into action, or it is just meaningless talk. The challenge this year — and for all the years following — is to make the Illinois REALTORS® an organization that faithfully reflects the state’s real estate industry as a whole. After all, we all fight the same battles daily, whether it is to protect Fair Housing policies or hold back government overreach. At my inaugural banquet my daughter, Isabelle, shared the Maya Angelou poem titled “Human Family,” which sums this up perfectly, concluding with the refrain: “We are more alike, my friends, than we are unalike.” Thank you to all who are helping shape the vision of an association built for the future. Here’s to a great 2018.

2017 NAR President-elect Elizabeth Mendenhall swears in 2018 Illinois REALTORS® officers (left to right) President Matt Difanis, President-elect Dan Wagner and Treasurer Ed Neaves during the Inaugural Gala in October. Photo credit: Michael Hudson Photography

At Matt Difanis’s inaugural banquet his daughter, Isabelle, shared the Maya Angelou poem titled “Human Family,” which concludes with the refrain: “We are more alike, my friends, than we are unalike.” Photo credit: Michael Hudson Photography

ILLINOIS REALTOR® January 2018

ILLINOIS REALTORS® THE VOICE FOR REAL ESTATE IN ILLINOIS

WHAT'S ONLINE

2018 OFFICERS President Matt Difanis, ABR, CIPS, GRI matt@mattdifanis.com President-Elect Dan Wagner wagner@inlandgroup.com Treasurer Ed Neaves eneaves@thesnydercompanies.com Immediate Past President Doug Carpenter, ABR, AHWD, GRI, SFR doug21@comcast.net Chief Executive Officer Gary Clayton, CAE, RCE Executive Vice President Luke Bell, RCE Editor Jon Broadbooks Senior Editor Stephanie Sievers Content Marketing Specialist Bill Kozar Graphic Designer David Hine

TAKE A FEW MINUTES AND LEARN MORE ABOUT HOT LEGAL TOPICS Get the latest news on legal topics with Illinois REALTORS® Legal Minutes videos featuring the association’s General Counsel and Vice President of Legal Services Betsy Urbance. Here are a few recent videos you’ll want to watch about trending topics from the Legal Hotline.

• R adon Requirements Disclosure • Disclosure Requirements in Residential Sales • Multiple Offer Situations

bit.ly/IR_Legal_Videos

For advertising information contact Advertising & Sponsorship, 217-529-2600, info@IllinoisRealtors.org The ILLINOIS REALTOR® (ISSN 0744-221) is published four times a year during the months of January, April, July, and October by the Illinois REALTORS®, Post Office Box 19451, Springfield, Illinois 62794-9451. Periodical postage paid at Springfield, Illinois and at additional mailing offices. Postmaster : Send address changes to: The ILLINOIS REALTOR®, Post Office Box 19451, Springfield, Illinois 62794-9451, 217-529-2600. Opinions expressed in any signed ar ticles of the ILLINOIS REALTOR ® are those of the author and do not necessarily represent the opinions of the Illinois R EALTORS ®. Adver tising of product or services does not imply endorsement. Advertising rates are available at www.IllinoisRealtors.org or on request. Annual dues of every REALTOR®, REALTORASSOCIATE®, and Affiliate member includes $3 for a oneyear subscription to the ILLINOIS REALTOR®.

Like us on Facebook. Join us on LinkedIn. Follow @ILREALTOR and @ILREALTORmag on Twitter. Follow @IllinoisRealtors on Instagram. Subscribe to YouTube.com/c/illinoisrealtorsvideo

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COMING SOON! NEW ILLINOIS REALTOR ® WEBSITE In early 2018, Illinois REALTORS® will launch a redesigned website featuring all of the member information, resources and membership tools you need, but in a new, easier to use format. Watch www.IllinoisRealtors. org for more information as we get closer to launch.

2018 CALENDAR Update your calendar with upcoming Illinois REALTORS® events. Visit our events page at www. IllinoisRealtors.org/ Events. Here are some of the events occurring in the next few months: • Professional Standards Workshops, Jan. 9 in Springfield and Jan. 10 in Oakbrook • Public Policy Meetings, Jan. 15-18 in East Peoria • REALTORS® of the Year Banquet, April 9 in Springfield • Capitol Conference, April 10 in Springfield

LOCAL ASSOCIATION LEADERSHIP Looking for contact information for local association leadership? Illinois REALTORS® has a list of the local associations, the association executives and their 2018 leadership teams. Illinois REALTORS® members can access the information at www. IllinoisRealtors.org.

ILLINOIS REALTORÂ® January 2018

QUICK TAKES RATING THE JOY OF YOUR HOME REMODELING PROJECT Renovating a kitchen or installing hardwood flooring can add value to your home at resale time, but just as important is the emotional happiness the projects bring to homeowners. In the 2017 Remodeling Impact Report, the National Association of REALTORS® (NAR) looked at not just the financial ADD NEW BATHROOM

gains to various improvements, but also gave them a “joy” score to analyze a homeowner’s happiness with the project. Here’s a list of the top interior improvements that REALTORS® ranked as adding the most value to a home that also earned a 10 joy score:

NEW MASTER/ COST ESTIMATE $125,000 OWNER’S % SUITE

ROI 52

COST ESTIMATE $59,000

ROI 50

CLOSET COST ESTIMATE $3,750 RENOVATION %

COMPLETE KITCHEN RENOVATION

ROI 53

COST ESTIMATE $65,000

ROI 62%

Find the full report and the analysis of exterior projects at

bit.ly/Remodeling_Impact

The average net worth of a homeowner is 45 times that of a renter, according to NAR. Homeownership can be a powerful investment and wealth-building tool.

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HARDWOOD FLOORING REFINISHING

COST ESTIMATE $3,000

ROI 100%

ILLINOIS REALTORS® GIVES TO OTHERS IN TIMES OF EMERGENCY Illinois REALTORS® are committed to helping those in need, both in Illinois and beyond. In 2017, Illinois REALTORS® donated $240,000 to help victims of natural disasters. In November, Illinois REALTORS® leadership approved a $10,000 donation to help those affected by Hurricane Maria in the U.S. Virgin Islands. Earlier in the year, the association donated

another $125,000 to assist with recovery from hurricanes Irma and Harvey. The association has a long history of pitching in to help colleagues and residents in disaster areas. Its members donated heavily in the wake of Hurricane Katrina and after the 9/11 terrorist attacks. Illinois REALTORS® have donated nearly $1 million in the past decade. Closer to home, Illinois

REALTORS® distributed nearly $66,000 for flood victims and $17,000 for tornado victims in 2017 through its disaster relief arm, Illinois REALTORS® Relief Foundation.

SIX HONORED WITH PRESIDENTIAL MEDALLIONS

Congratulations to six Illinois REALTORS® who were honored for their service to the association and industry with presidential medallions from 2017 Illinois REALTORS® President Doug Carpenter.

Vicky Turner Crawford Realty, Dixon

Sonia Anaya

America Real Estate, Chicago

Alex Ruggieri

SVN-Ramshaw Real Estate, Champaign

Chris Read CR Strategies, Woodridge

NATURAL DISASTER INCOME TAX CREDIT WILL HELP 2017 FLOOD VICTIMS IN 18 COUNTIES The new Flood Victim Tax Credit provides a one-time, tax credit of up to $750 to property owners in 18 Illinois counties declared state disaster areas after flooding in July. Qualifying property owners can apply the credit to their 2017 Illinois income taxes. Counties include: Cook, Lake, Kane, McHenry, Alexander, Clinton, Jackson, Marshall, Union,Woodford, Carroll, Henry, Jo Daviess, Lee, Ogle, Rock Island, Stephenson and Whiteside. Qualified properties include a taxpayer’s principal residence or land owned by a small business, but not a rental or leasing business.The allowable income tax credit will be the lesser of $750 or the deduction allowed under the Internal Revenue Code for each taxpayer who owns qualified property in a county declared a state disaster area. Learn more about the tax credit at bit.ly/Disaster_TaxCredit

Deborah Prodehl Coldwell Banker The Real Estate Group, Homer Glen

Lynn Madison

Lynn Madison Seminars, Schaumburg (Madison was honored with two medallions)

CRS ORGANIZATION REBRANDS WITH NEW NAME In November, the Council of Residential Specialists changed its name to the Residential Real Estate Council (RRC) to better reflect its growth and mission. With the name change, the organization also hopes to reduce confusion with its Certified Residential Specialist (CRS) designation, which will remain the same. bit.ly/CRS_Rebrands

FREDDIE MAC: ECONOMY, LOW INTEREST RATES BOOSTED HOUSING IN 2017 Exhibit 13 Annual single-fmaily moretgage orginations ($trillions) 2.1T

2.1T 1.9T 1.8T Refl ($ bn)

1507

1137

1.4T

1.8T

1.8T 999

1.7T

407

612

430

1126

1188

1290

1363

2016

2017F

2018F

2019F

788

527

Purchase ($ bn)

615 2012

788

824

963

2013

2014

2015

Low inventory and rising prices may have challenged the U.S. housing market in 2017, but economic improvement, low inflation, job growth and low mortgage rates all contributed to making it a strong year for housing overall, according to a year-end recap report from Freddie Mac. What’s ahead for 2018 and 2019? Freddie Mac economists expect interest rates to climb slightly higher. Housing construction and supply should pick up and that will moderate home price growth. The mortgage market will continue to shift from an emphasis on refinancing to purchasing activity, according to Freddie Mac. Read the full report at bit.ly/FreddieMac_Recap2017 Source: Freddie Mac November 2017 Economic and Housing Research Outlook

ILLINOIS REALTOR® January 2018

LEGAL UPDATE Elizabeth A. (Betsy) Urbance General Counsel and Vice President of Legal Services

FOR WHOM MAY LICENSEES WORK? Have you ever found yourself in a situation where you should be asking yourself “Am I working for more than one sponsoring broker?” It’s an important question because this is a fundamental part of the Illinois Real Estate License Act. It states:

Section 10-20(a) of the Illinois Real Estate License Act of 2000 (RELA): A licensee may perform activities as a licensee only for his or her sponsoring broker. A licensee must have only one sponsoring broker at any one time. What does this provision really mean? This provision simply states that a licensee must work for one, and only one, sponsoring brokerage company. In addition, there are rules provisions that state the licensee can only be sponsored by and work for one sponsoring broker whether the licensee is engaged in licensed activities or unlicensed activities (See subparagraph (f)) (bit.ly/ RELA_Rules). As simple as this sounds, here are some real-world examples to illustrate the common misunderstandings with this concept. Scenario #1 – Licensee sponsored by one brokerage company sitting at an open house for another brokerage company’s listing This is perfectly legit, correct? No. By itself, this is not allowed. The general rule is that Company A’s licensee would be acting on behalf of Company B, the listing company, by hosting Company B’s open house. As a result, without taking more steps,

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this would run afoul of RELA, Section 10-20(a). To do this correctly, Listing Company B and Company A would need to consult their attorneys, insurers and any other trusted advisers so that the two real estate companies can enter a written agreement at the sponsoring company level. This agreement creates a sub-contract type of relationship, thus allowing Company A’s licensee to remain under his own company’s sponsorship. Company B has effectively contracted with Company A to host the open house. The agreement between A and B should consider each company’s rights, duties and responsibilities as well as division of compensation. Company A would need to be paid the agreed compensation directly, in turn paying its sponsored licensee per the terms of the licensee’s independent contractor or employment agreement with his own sponsoring

company (Company A). Companies A and B will need to determine whether such a contractual relationship makes good business sense for both companies before engaging. Scenario #2 – Co-listings where Company A and Company B simply put both company names in the blank on an exclusive right to sell form This is perfectly legit, correct? No, not without taking additional steps. More steps are required to properly co-list a property for a seller client. The same concepts discussed in Scenario #1 above apply here. To enter a proper co-listing arrangement, the two listing companies need to consult with their attorneys, insurers and any other advisers to draft a document defining rights, duties, responsibilities, compensation, etc. for each company before placing both company names

on the exclusive right to sell brokerage agreement with the seller client. Further, the listing agents need to continue to work for and be paid by their respective sponsoring brokerage companies. Scenario #3– Licensed personal assistant (LPA) works for one sponsoring brokerage company as a “broker” and another sponsoring brokerage company as a clerical assistant This is perfectly legit, correct? No, this is not correct. Under RELA, the LPA is a licensee who is required to have one and only one sponsoring brokerage company. This “baby” can’t be divided, so the LPA must work for only one sponsoring brokerage company, where the LPA might perform both licensed and unlicensed activities. On the other hand, the LPA might do licensed activities for one sponsoring brokerage company, and find secondary employment with an unlicensed entity. For example, the LPA might serve as a clerical assistant in a dentist’s office, in addition to his work for the real estate brokerage company. This scenario becomes a bit more complicated where the secondary employer is a builder. IF the builder is not a licensed real estate broker, theoretically the LPA could do unlicensed clerical work for the builder. This would not include activities such as showing the builder’s properties for sale or working with consumers on sales or rental transactions of the builder’s properties. However, the LPA could do this licensed work through the LPA’s sponsoring real estate company if the builder hires the LPA’s company. Conversely, if the builder is a licensed real estate brokerage company, the LPA must choose for which company the LPA will work. Scenario #4 – Teams Simply stated, RELA applies to any licensed member of a team in the same manner as it applies to any licensee sponsored by a real estate brokerage company.

What is a team? A team is really nothing, in that it is not (or should not be) a separate legal entity. The team should be a “functional unit,” group or combination of people (could be some licensed and some unlicensed) who elect to work together within a real estate brokerage company. If the team incorporates, or forms some other entity, then it needs to be its own sponsoring company and sponsor the licensees within the team; thus, separating itself from the original sponsoring entity. The Section 10-20(a) “one sponsor rule” applies in this situation. Any licensed team member needs to be sponsored by the same real estate brokerage company as her “teammates,” and all licensees must have written independent contractor or employment contracts with the sponsoring company. (Classification as an independent contractor or employee requires more elaboration. Additional resources can be found here [bit.ly/IR_Teams (log on required)] and here [bit.ly/NAR_ Teams]). Some teams appear to be joining forces with licensees in other states or jurisdictions. On the face of things, this would seem to run afoul of RELA in several ways. One is that the Illinois

licensed team member must only work for his Illinois licensed sponsoring brokerage company. Likewise, a licensed team member from another state would need to be licensed and sponsored by the Illinois brokerage company to work for and advertise Illinois based real estate brokerage business. In addition, advertising a team name must be true and not misleading in any way. While there might be ways for the brokerage companies to enter some sort of business relationship, simply agreeing to be “team members” will not be enough under RELA. Remember also, that just because a licensee belongs to a team within a local franchise, this does not mean the licensee is also part of a team from the same corporate brand or franchise in another location. There are many other real-world examples of situations causing confusion surrounding the RELA requirement to work for only one sponsoring company. Hopefully, these examples shed some light on this concept and can help answer questions that arise. For more on this and other legal topics, go to www.IllinoisRealtors.org/ Legal or call the Illinois REALTORS® Legal Hotline.

HAVE A LEGAL QUESTION? The Illinois REALTORS® Legal Hotline is the Designated REALTOR®/ managing broker’s go-to source for legal information.

Phone: (800) 952-0578 • Email: burbance@IllinoisRealtors.org • Hours: 9 a.m. - 4 p.m. Monday – Friday

ILLINOIS REALTOR® January 2018

Bicentennial Plaza to showcase Springfield’s history, Lincoln ties By Jon Broadbooks, Vice President, Communications

ork has begun on an ambitious plan to transform a parking lot into a community centerpiece which will showcase Springfield’s history and ties to Abraham Lincoln. Bicentennial Plaza – A REALTOR® Community Partnership is a $2 million investment in the city’s downtown which will realize a long-held vision of a pedestrian walkway linking the Abraham Lincoln Home National Historic Site with the Illinois Executive Mansion and state Capitol. The plaza is being built on land owned by Illinois Above: A rendering of one of the towers which will present historical displays. Below: When completed, Bicentennial Plaza will be a community centerpiece.

REALTORS® and is scheduled to be dedicated in time to celebrate the 200th anniversary of the adoption of the Illinois Constitution in August, 2018. “Illinois REALTORS® wanted to do something significant to celebrate the state that has provided so much to our members and those who rely on them,” said Illinois REALTORS® President Matt Difanis. “Since our headquarters is located in the heart of Springfield’s historic district, our members felt it was important to play a supporting role in the bicentennial celebration.” Bicentennial Plaza is being built in part with $1

million provided by the city of Springfield. In addition to donating use of its land, Illinois REALTORS® and other private partners are providing the balance of the funds necessary to complete the project. When finished, Bicentennial Plaza will provide a public-use space located on the north side of the Illinois REALTORS® headquarters between Fifth and Sixth streets in Springfield. Planning for the project has been ongoing for more than two years, but the first publicly visible signs of work were in August when portions of the parking lot were removed. In October and November, an old bank branch building was torn down to make way for the project.

Image credit: Massie Massie & Associates Inc.

Illinois REALTORS© Headquarters

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This overview shows the footprint of the plaza which will help link historic sites in Springfield. Image credit: Massie Massie & Associates Inc.

LINCOLN’S VISION REFLECTED IN DESIGN Bicentennial Plaza is dedicated to President Abraham Lincoln’s vision for America as a country with opportunity and equality for all. The plaza will have more than a dozen interpretive panels showcasing people, places and events which tie into Lincoln’s vision. Illinois REALTORS® is working with historians from the National Park Service and the state Department of Natural Resources to craft the panels’ content. Featured historical figures with Springfield ties include abolitionist Frederick Douglass, who spoke in Springfield a number of times; Anderson Holman, a Springfield developer who built homes on the city’s east side; and Eva Monroe, who established a charity that provided aid to African-American widows and orphans. The plaza will include a display devoted to telling the story of the Springfield Race Riot of 1908 which resulted in the deaths of two black men at the hands of a white mob

PORTION OF JACKSON STREET CORRIDOR

Illinois REALTORS© Headquarters

and which caused extensive property damage. The riot was a catalyst for the creation of the NAACP. The plaza will recognize the 50th anniversary of the federal Fair Housing Act with a marker commemorating this important law. A ‘SIGNATURE PROJECT’ EMERGES Transforming the so-called Jackson Street corridor in Springfield has long been a goal of city planners. The area around Bicentennial Plaza has sites linked with Abraham Lincoln, who historians say would have often used Jackson Street while he lived in Springfield to visit friends and

conduct business. The several-block area along Jackson Street has been a recent focus of development.

“ Illinois REALTORS®

work with heart in every community, so it’s only natural that we want to play a role in celebrating the state’s rich history.”

A decaying three-story YWCA building was torn down in early 2017 to clear the way for development. And, for the first time in decades, extensive renovations are being done to the Executive Mansion which is located

across the street from Illinois REALTORS®. Bicentennial Plaza fits right in with work along the Jackson Street corridor. The Illinois Bicentennial Commission identified Bicentennial Plaza as a “Signature Project” of the yearlong celebration. Chicago REALTOR® Jim Kinney is on the commission, and has been a longtime advocate for preserving the state’s heritage. “Illinois REALTORS® work with heart in every community, so it’s only natural that we want to play a role in celebrating the state’s rich history,” said Jim Kinney, who is also a past president of Illinois REALTORS®.

Bicentennial Plaza will feature interpretive panels. Crews have poured the footings for the displays.

ILLINOIS REALTOR® January 2018

Local projects part of REALTORS® support for Illinois Bicentennial By Bill Kozar, Content Marketing Specialist

Upcoming bicentennial events to note April 9

Dedication of the historic marker commemorating the 50th Anniversary of the Fair Housing Act on April 11, 1968 at Bicentennial Plaza in Springfield.

Summer

Official dedication and grand opening of the fully renovated Illinois Executive Mansion, 410 E. Jackson St., Springfield, which will have a visitor center and be ADAaccessible.

Aug. 26

Official dedication of the Bicentennial Plaza – a REALTOR® Community Partnership at the Illinois REALTORS® Headquarters in Springfield. Also, celebrations across the state commemorating the signing of Illinois constitution on Aug. 26, 1818 in Kaskaskia.

Dec. 3

Illinois Bicentennial Birthday Party at the United Center in Chicago. On Dec. 3, 1818 Illinois became the 21st state in the union.

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Illinois REALTORS® has found a number of ways to celebrate Illinois’ Bicentennial, from reshaping a portion of downtown Springfield’s historic district, to preserving state landmarks to sponsoring an essay contest for high school students. The 22-member Illinois REALTORS® Bicentennial Task Force is guided by Chair Vicky Turner of Dixon and Vice Chair Sheryl Grider Whitehurst of Peoria. Since the task force’s formation, its members have helped local associations identify projects to support during the bicentennial. “Our members take great pride in their communities and appreciate the history behind their development,” Turner says. “They’re eager to show support for their neighbors and to promote future success. The state’s 200th birthday is a perfect opportunity for REALTORS® to get involved.” The association’s effort to mark the state’s 200th birthday touches virtually every part of Illinois. Here are a few of the bicentennial projects REALTORS® will be involved with throughout 2018. LOCAL ASSOCIATIONS SUPPORT LOCAL PROJECTS Across the state, 29 local REALTOR® associations are promoting or fundraising for local historic homes, properties, and museums. These projects are officially endorsed by the State Bicentennial. For example, the Oak Park Area Association of REALTORS® is fundraising to help restore the Frederick C. Robie House, constructed in

REALTOR® Laurie Moore, president of the Greater Gateway Association of REALTORS® (center) presents a $1,000 check to the board of directors of the Haskell House Children’s Museum in Alton.

1910. The Quincy Association of REALTORS® is providing a free admission day at the Quincy Museum during the summer of 2018. The Greater Gateway Association of REALTORS® is helping to restore the century-old Haskell House in Alton into a children’s museum. Find out more about each project by looking at the map in this magazine or visiting www.IllinoisRealtors.org/ Bicentennial. NEW SPRINGFIELD PLAZA WILL HELP CONNECT HISTORIC SITES Illinois REALTORS® donated the use of its property north of its downtown Springfield headquarters for the development of Bicentennial Plaza — a REALTOR® Community Partnership. The public space will feature interpretive panels recognizing significant moments in Springfield and Illinois history, and will help link the Lincoln Home Historic Site and the restored Illinois Executive Mansion. The plaza is expected to

be completed in August, and play a central role in the state’s bicentennial celebration. STATEWIDE ESSAY CONTEST INVOLVES HIGH SCHOOL STUDENTS High school students have until Feb. 15 to submit entries for the “Home is where the heart is” essay contest. A total of 23 scholarships will be awarded to contestants to help them pay for schoolrelated expenses. The top award is $1,000; 11 entrants will receive $750 and 11 more will receive $250.

"Home Is Where the Heart Is" Essay Contest Deadline Feb. 15, 2018

www.IllinoisRealtors.org/ Bicentennial

Members of the Illinois REALTORS® Bicentennial Task Force ILLINOIS BICENTENNIAL COMMISSION PLANS STATEWIDE EVENTS Chicago-area REALTOR® and past Illinois REALTORS® President Jim Kinney is a member of the Illinois Bicentennial Commission and was an early catalyst for celebrating the bicentennial. Kinney is one of more than 50 luminaries on the commission representing local and state government, business, media, labor, entertainment and professional sports. The association is working closely with the commission to generate awareness for bicentennial events all year long.

Vicky Turner, Jim Kinney and Sheryl Grider Whitehurst stand in front of the Old State Capitol in Springfield. Photo credit: Ann Londrigan, staff liaison to the Bicentennial Task Force and contributor to this story

1. Ron Abrams, Chicago 2. Sonia Anaya, Chicago 3. Jeffrey Barkstall, Champaign 4. Steven Bois, Rockford 5. Tonya Corder, Homewood 6. Kristie DeBrun, Pawnee 7. Ronald Ewing, Elgin 8. Deb Frazier, Shiloh 9. Sheryl Grider Whitehurst, Peoria 10. Jim Haisler, Crystal Lake 11. Dallas Hancock, Peoria 12. Joe Kenny, Darien 13. Christine King, Rock Falls 14. Lynn Madison, Schaumburg 15. Laura Martin, Peoria 16. Sandy Michel Stempinski, Vandalia 17. Sue Miller, McHenry 18. Zeke Morris, Chicago 19. Todd Musso, Springfield 20. Karen Robertson, Shorewood 21. Ginger Sreenan, Rockford 22. Tricia Tialdo, Belleville 23. Vicky Turner, Dixon

ILLINOIS REALTOR® January 2018

Stateʻs 200th birthday puts focus on REALTORS® commitment to ʻgive backʼ By Bill Kozar, Content Marketing Specialist

REALTOR® Jim Kinney has been a member of the Illinois Bicentennial Commission since December 2016 but his thoughts have been on the state’s 200th birthday since his term as Illinois REALTORS® 2015 president. Kinney’s interest in the state’s history and the way it could be integrated to demonstrate the community-mindedness of REALTORS® across the state led to the formation of the association’s 22-member Illinois Bicentennial Task Force. “I knew by appointing Vicky Turner and Sheryl Grider Whitehurst as chair and vice chair they would have enough time to put REALTORS® on the map in Illinois as leaders in our communities,” Kinney, vice president of luxury home sales for Baird & Warner in Chicago, says. “I am so proud of them. Together with our staff members, volunteers and local associations have really stepped up to the challenge.” With bicentennial projects taking shape throughout the state, REALTORS® and residents are remembering the historical figures that have shaped the Illinois we know today. Turner, a broker with Crawford Realty in Dixon and Kinney explain their involvement in the yearlong celebration.

Jim Kinney

Member of the Illinois Bicentennial Commission

Vicky Turner

Chair, Illinois REALTORS® Bicentennial Task Force

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Q. How did you get involved?

Kinney – I was pushing to get involved with the state’s bicentennial during former Gov. Pat Quinn’s administration because I knew it would take a lot of pre-planning to be successful. But it didn’t happen until Gov. Bruce Rauner took office. The state didn’t have any money, so the bicentennial projects had to be funded by private sources.

Q. What are your responsibilities?

Kinney – As one of the Bicentennial Commissioners appointed by the governor, I help craft the events that celebrate our state’s birthday. Along with being an early player and sharing a laundry list of suggestions, I acted as a liaison with the Illinois REALTORS® on the creation of the Bicentennial Plaza, and I participated in various fundraising events.

Q. Can you explain your goals for the task force? Turner – We want the public to recognize the service work REALTORS® contribute to their own communities. REALTORS® see and appreciate the strengths of their communities, and they take pride in helping to improve areas that require extra attention. You would be hardpressed to find an Illinois community that isn’t touched in some positive way by a REALTOR®.

Q. Will the theme ‘REALTORS® working with heart’ live on after the bicentennial?

Turner – Absolutely. First, it truly does describe our organization. Second, it’s a perfect way to describe our personal investment in our communities. Third, I think it could become a message shared nationwide via the National Association of REALTORS®. Every state and every association could embrace this message. Fourth, we all “give back” in our own way to our communities, the places where we work, live, play and believe in. We aren’t always good at promoting that message, so continuing to use the theme is a perfect way to share our dedication.

Q. What is your local association’s legacy project?

Turner – I’m proud to say our HomeTown Association of REALTORS® is taking on two projects. One is helping to update the

infrastructure of the Egyptian Theatre in DeKalb. A gem of a bygone era, the theatre’s history can be traced back to the 1922 discovery of King Tutankhamun’s tomb, which set off an interest in everything Egyptian. The theatre hosts many different entertainment opportunities through the year and the project will help sustain this golden beauty for years to come. Our second project is helping to repair windows on President Ronald Reagan’s boyhood home in Dixon. This home welcomes tens of thousands of visitors each year, young, old, national and international. Though Reagan lived many places, including the White House, he always referred to Dixon “as a place to come home to.”

Q. How do you see these projects from a tourism angle?

Turner – Our projects perfectly partner with tourism by entertaining and educating the public. Illinois has had four presidents – Grant, Lincoln, Reagan and Obama – who were either born in Illinois or lived a significant part of their life here. Also, Bloomington has the David Davis Mansion and Springfield has Edwards Place, both have historical ties to Abraham Lincoln. With 29 local associations participating in 36 projects, we have truly planted our bicentennial heart flags throughout Illinois.

Q. Has it been an advantage for REALTORS® to work on different aspects of the bicentennial?

Turner – Yes! Jim’s early vision put Illinois REALTORS® way ahead of the game. It didn’t take long for our local associations to identify great historical projects in their communities that would tie in to a history theme. We can thank CEO Gary Clayton for shaping the Bicentennial Plaza project, and the lasting value it will provide to surrounding historic sites, like the Lincoln Home and the Illinois Executive Mansion. Again, it comes back to ‘REALTORS® working together with heart.’ Kinney – The task force has done a great job in getting the word out to local associations and stoking the pride and enthusiasm of our members. I’m looking forward to hearing the success stories from our community projects and seeing the names of colleagues on the Bicentennial Plaza’s bricks. And of course, I can’t wait to see the state’s 200th Birthday Party next December in Chicago.

ILLINOIS REALTORÂ® January 2018

18 www.IllinoisRealtors.org

CRACKING THE CODE:

4 Ways to Generate Good Online Leads in 2018 By Bridget McCrea

Getting online leads takes some work. Here’s how Illinois agents and brokers are making sure every contact counts in the digital world. Converting online “visitors” into legitimate buyers and sellers has become a nearly full-time job for today’s agents. “Online lead generation is definitely a numbers game,” says Brian Kwilosz, broker/owner at EXIT Real Estate Partners in Downers Grove. “Or more specifically, it’s a giant funnel that you really have to sift through to get to the legitimate, interested consumers.” The increased exposure and number of “hits,” brings the responsibility of following up on those leads with the goal of at some point making them pay off. According to Leslie Ebersole, a broker with BRIX Group at Baird & Warner in St. Charles, that follow-up activity should be one aspect of a larger leadgeneration effort. “A lot of agents make the mistake of assuming online lead generation is a standalone activity,” Ebersole says. “We all want to get calls off of Zillow to list a home, or emails generated by potential buyers through Realtor.com, but the reality is that the ‘true’ lead may be further out, and it may take time — months or years even — to cultivate and turn into an actual transaction.” The good news is that many Illinois REALTORS® are bucking the low-conversion rate trend by using existing lead-generation platforms in interesting ways and recording sales that originated online, but that can’t always be traced back to a single interaction or platform.

ILLINOIS REALTOR® January 2018

Justin Letheby

Broker/Trainer Berkshire Hathaway Starck Real Estate, St. Charles

Brian Kwilosz

Broker/Owner EXIT Real Estate Partners, Downers Grove

Linda Linder

Broker-Associate Strano & Associates, Belleville

Ryan Cannon

Broker RE/MAX Traders Unlimited, Peoria

Heather Gustafson Broker @properties, Chicago

Leslie Ebersole

Broker BRIX Group at Baird & Warner, St. Charles

20 www.IllinoisRealtors.org

BUILD A DATABASE AND GIVE THEM STUFF

“Facebook itself is great, but unless you have a platform for collecting leads, you’re not going to get the most out of the platform,” says Justin Letheby, broker/ trainer at Berkshire Hathaway Starck Real Estate in St. Charles. And once the mechanisms are in place to collect the leads — be it a corporate website, a landing page, or some other platform — Letheby says agents can make them more powerful by simply giving something away. “Sign up today for a weekly update on real estate activity in your area,” or “Email me for a list of the top 10 home staging tips,” are both good ways to get site visitors to register.

“ Always give away

something of value without an ask,”

“Always give away something of value without an ask,” says Letheby, who has had particularly good success with a “day in the life” online video that breaks down a specific aspect of the real estate market or sales process into easy-to-view clips. “Generating leads online is about communicating and getting in front of people as much as you can,” says Letheby. He tells agents to pay particularly close attention to conversion of their online leads into actual closed transactions. “I’ve fallen short in this area in the past, having dropped the ball on a potential transaction because I was caught up in other things,” says Letheby. “I’ve since put the right systems in place to manage the leads, and wound up growing my database of online leads from 400 to 1,600 within less than 12 months.”

HIT 'BOOST' ON FACEBOOK

Facebook is a hotbed for everything real estate-related, and this makes it a great lead-generation tool for agents. “Facebook is a good platform because you can get in and generate leads relatively cheaply,” says Kwilosz, whose last campaign cost about 80 cents per lead. To maximize that investment, Kwilosz hits the Facebook “boost this post” button for the listings. This allows him to select recipients to push the post — which is initially published on his Facebook business page — out to a larger audience. To get the most out of the boost, he sets up “personas” or different target ad sets according to where the property is, what the price point is, and who it will appeal to. “With Facebook, there’s a lot of very detailed drill-down data on everyone,” he says, “so you can pinpoint pretty much exactly who you’re looking for.” Kwilosz says those efforts pay off and they also help to feed his referral pipeline. One buyer he connected with on Facebook purchased an $800,000 home, referred Kwilosz to his mother who, in turn, sold her home and is now shopping for a townhouse. “I also sold her brother’s house,” he adds, “so I got three referral deals out of a single online lead.” Linda Linder, a broker-associate with Strano & Associates in Belleville, also uses the boost feature on Facebook. Whether she’s posting a new listing, a recent sale or a price reduction on a current listing, Linder boosts the post based on select criteria (an individual’s location, interests, etc.) and then tracks the results. “It’s amazing how many responses I get,” says Linder, “and I’m excited to see how many people viewed it and reacted to it — and all at a reasonable cost of about $5-$10 to reach about 10,000 Facebook users.”

7 Online Lead Generation Action Tips the platform’s built-in tools to 1 Use get more out of your listings. On

Facebook, for example, the boost and auto-responder functions can help you reach more people with little extra effort.

confuse information requests 2 Don’t with online leads. “Every agent has

KEEP YOUR FINGER ON THE RESPONSE TRIGGER

Ryan Cannon sold more than 37 properties in 2017, and says at least 20 of those transactions are “somehow related” to Facebook. How does this REALTOR® with RE/MAX Traders Unlimited in Peoria do it? One of his secret weapons is the auto-reply feature on Facebook, which allows him to instantly reply to any message even if he’s too busy to write a personal note at the time.

“ You have to be ready to respond at all times.”

“Whether someone is using Facebook, Instagram, Twitter or any other online lead generation tool, the trick is to have your phone in hand like a gun in a holster,” says Cannon. “You have to be ready to respond at all times, even if you can’t or if you don’t really want to.” Using the auto-responder, Cannon uses messages like, “Thanks for messaging me. I’ll try my best to get back with you within the next 30-45 minutes.” Using this method, Cannon can keep his “typically responds within X amount of time” rating on Facebook as low as possible. “Consumers want to know how quickly you’ll reply,” he says, “and that’s a pretty good gauge for them to use.” When capturing leads, Cannon says he’s had good luck with not requiring visitors to register in order to access content on his site. “I try to be less controlling in this super-competitive world that we live in, knowing that in the social media world, the less pressure the better,” he said. “The idea is to be as approachable and genuine as possible, as opposed to making it seem like you are the only option.”

LEVERAGE LESS-USED SOCIAL SITES, SUCH AS LINKEDIN

Very few of the REALTORS® interviewed for this article were using LinkedIn as a lead-generation tool, but it’s working well for Heather Gustafson, a broker with @properties in Chicago. Focused primarily on new construction sales and marketing for developers, Gustafson posts frequent articles on her LinkedIn page. For example, Gustafson has shared articles previously published by local media about @properties projects on LinkedIn. Not only do those posts attract a high number of views, but they also prompt network connections to ask questions and request brochures. “We’ve seen a pretty big spike in conversations on LinkedIn as a result,” says Gustafson. “It’s something our potential client base really gravitates toward.” From the agent’s perspective, Gustafson says LinkedIn also provides a level of sophistication and professionalism that isn’t always as evident on more mainstream social media sites. In return for these efforts, Gustafson has raised brand awareness for her team and the properties they represent. “I put something out there about our River North project and suddenly everyone knew that we were working on it because they learned about it on social media,” Gustafson says. About the writer: Bridget McCrea is a business, real estate and technology writer in Clearwater, Fla. She can be reached at bridgetmc@earthlink.net. LEGAL NOTE: Whenever you are trying to generate leads, whether in print or using social media platforms, you need to be transparent about how you will use the information. (See Illinois Real Estate License Act, Section 10-35)

converted a lead from a basic offer to do a home valuation, but every agent on the planet is doing that right now and most of those aren’t leads,” says Leslie Ebersole.

what you started. If you start 3 Finish a Twitter profile, finish it. If you start

using Instagram, follow through with it. “Polish everything on a regular basis and make sure you’re being complete, thorough and consistent,” says Ryan Cannon.

your timeline regularly. 4 Review “Delete stuff that you really don’t want on there permanently and create a professional presence that allows people to really ‘dig into’ who you are,” Cannon suggests.

up with your offline lead5 Keep generation efforts. “If you’re working

a certain ZIP code, neighborhood, or subdivision, then you should probably also be doing mailings in those areas with an emphasis on your just-listed, under-contract, and just-sold listings,” Ebersole suggests. “This will go a long way in reinforcing your online lead generation efforts.”

a follow-up process. 6 Develop Knowing that the next agent is just a

mouse click or two away, be sure to use a combination of personal notes and auto-responders to let prospects know that you’re a “real” person who is handling their request.

“If you’re lucky enough 7 Beto gettheonexpert. the phone with someone who’s asking about a house in a subdivision or particular price point, you need to have that information down pat,” says Ebersole. “Quietly dazzle them with information.” ILLINOIS REALTOR® January 2018

10 Takeaway Tips

from the REALTORS® Conference & Expo By Stephanie Sievers, Senior Editor

Are you looking for a few quick and actionable tips that you can incorporate into your business plan in 2018? How about 10? In November, the REALTORS® Conference & Expo returned to Chicago and the four-day, actionpacked event included more than 100 different education sessions on housing market trends, business strategies, time management, teams, technology and more. Abraham Lincoln impersonator Fritz Klein poses with Illinois REALTOR® David Levin at the Conference Expo.

STAY VISIBLE - Contact people until they tell you not to. Be

consistent with getting in front of people. No more than 30 days should go by without hearing from you and it should be a mix of sources: direct mail, print media, telephone, face to face, social media, websites and video. “Proven and Profitable Seller Systems: Landing Listings” – Chandra Hall

KNOW YOUR MISSION - Companies have mission statements.

Write a mission statement for yourself so you know what your “why” is. Think about the values that tie back to your mission and know your business priorities. Periodically go back and check to see if you are going in the right direction so you don’t go the wrong way for too long. Put this review process on your calendar. “Bulletproof Your Business: Top 10 Tips to Succeed” - Deb Greene

FOLLOW THE MONEY – Create a budget to track where

you spend money and why. Only spend money on what produces business. Know your budget and make decisions based on those numbers. Don’t fall for smooth sales pitches. Review your credit cards and bank statement every morning to look for fraud, to track and analyze your spending and to see if you are making enough revenue. Have your credit cards expire every 12 months (expiring the month you do your business plan) so that it prompts you to decide if you still want to use the vendor and, ask for a price reduction. Another quick tip: consider getting an extension to allow you to file your taxes in October even if you have your return ready in April. As independent contractors, REALTORS® can have complicated tax returns and by waiting, your return is likely to be handled by more experienced IRS agents. “Achieve Top Producer Status” – Alex Milshteyn

WHAT KIND OF TEAM COULD WORK FOR YOU? –

Teams are a growth vehicle in real estate and there are a number of different team concepts. With the “support team” models, the team leader is still the primary labor force and team members offer varying degrees of support. With the “team associates” model, associates start to develop specialties such as buyer’s agents. In the “team specialists” model, the team leader shifts into more of a management role. “Team Dynamics: Best Practices for an Evolving Team ” – Pam Ermen

DON’T BE AFRAID OF FSBOS - Three of the best sources

of immediate business can be expired listings, open houses and unrepresented sellers. Don’t be afraid to work with unrepresented sellers, just anticipate their mentality and know how to deal with it. “For sale by owners” need to know that you add professional value to the process and can do something they can’t do themselves. Be confident enough to contact the FSBO and ask to represent them. “Capturing Opportunities in the Expired and FSBO markets” – Jackie Leavenworth

USE YOUR TIME WISELY – Don’t treat everything you have

Learn more with Playback NAR

You buy streaming access to these and all of the recorded sessions through the National Association of REALTORS®’ Playback NAR at www.playbacknar.com. 22 www.IllinoisRealtors.org

to do equally. Turn your to-do list into a success list by prioritizing what SHOULD be done instead of what COULD be done. Stop trying to multi-task. It isn’t productive and can actually make you less effective because every time you switch between tasks, it distracts you and slows you down. Work on something without interruptions and use time blocking to foster productivity. Here are five time-blocking steps REALTORS® can use: 1) review yearly, quarterly and monthly goals and written plans; 2) review the

CONFERENCE & EXPO HIGHLIGHTS previous week for lessons learned; 3) time block your weekly schedule; 4) time block lead generation and lead follow ups; 5) everything else you need to do. Reach your goals by spending 30 to 60 minutes each week “working on your biz not in your business.” “Time Block Your Way to Success with Less Stress” – Brad Warren

Chairs of the NAR Meeting and Conference Committee Rebecca Thomson and Colin Mullane.Thomson is the 2018 president of the Chicago Association of REALTORS®.

BREAK INTO THE LUXURY MARKET – Luxury

clients value information and expect their REALTORS® to exceed expectations. One of the most important things you can do when getting started is to become an expert on the local luxury market. Educate and immerse yourself by mapping out the market. Go to the assessor’s office and pull housing information for the last two years to learn about purchases in that area. Learn everything about the market that you can who are the luxury buyers, what did they pay, where were they from, what are their occupations? Set up a Google alert for that area of town to learn more about market area. “Selling Luxury Homes” – Gee Dunsten and Jack Cotton

Illinois REALTORS® Christine Chase and Mabél Guzmán moments before the NAR choir performed.

BE A CONTENT CREATOR – Distinguish yourself

from other REALTORS® in the market by harnessing data and creating your own content. Younger generations — and tomorrow’s buyers — know how to find information. They want REALTORS® who are thought leaders who create content and put the data into context. Consumers want to know that you know your market. Build content that talks about the data and become the expert by sharing. Once you do create content, you have to be personally engaged with consumers and build relationships. “Big Data! The Next Big Thing in Content Marketing – Illinois REALTOR® Carrie J. Little

PROVIDE STELLAR CUSTOMER SERVICE – If

you are just like every other REALTOR®, you become a commodity and consumers will shop by price. Stand out with remarkable customer service that sets you apart and shows your unique value proposition. One way to do that with buyers is to set up a follow-up phone call schedule in the days following the closing. Don’t just rely on letters and cards; talk to them. Call them the day after closing to check in; call on Day 14 to see how the family is settling in with the move; call again a few weeks later to see if there is anything else you can do. Put a note in your calendar to call them on the oneyear anniversary of their closing. You build connections by periodically staying in touch. “Fill Your Stadium with Raving Fans” – Kim Knapp

Sarah Ware, Mike Drews and Nykea Pippion-McGriff at the NAR Board of Directors meeting.

2017 Vice President of Region 7 Pat Dalessandro. Region 7 includes Illinois, Indiana and Ohio.

Illinois REALTORS® President Matt Difanis welcomed international colleagues to Chicago on behalf of the association's Global Business Council.

LEAD GENERATION TOOLS DON’T HAVE TO BE EXPENSIVE - You need a consistent source of new real

estate prospects so you can be selective and turn some away. Calculate the return on investment of every marketing and lead generation tool you use. Here are two quick and cost-effective lead generator ideas: · Network with trades people and contractors. They might know of properties that will soon be going on the market. · Build networking relationships with divorce and estate attorneys, both have clients with properties that will need to be sold. “20 Lead Generators Under $20 That Really Work” – Michael Soon Lee

2017 Illinois REALTOR® of the Year Sue Miller joined other state REALTORS® on the stage during a recognition ceremony.

ILLINOIS REALTOR® January 2018

AT THE CAPITOL PACE ACT: VALUABLE TOOL FOR COMMERCIAL OWNERS By Mark Pikus, senior vice president of Inland Green Capital, LLC Energy efficiency is on the minds of many commercial real estate owners as it provides a way to lower energy costs, increase property values, reduce operating expenses and enhance the comfort of their tenants. However, there are two main obstacles that can prevent owners from making energy improvements to their properties: a lack of capital and the inability to find financing sources. To overcome these barriers, in certain states commercial property owners have been utilizing Property Assessed Clean Energy (PACE) financing, which provides funding for energy efficiency, water conservation and renewable energy projects. WHAT IS PACE FINANCING? PACE is a voluntary energy conservation program that provides up to 100 percent financing for approved energyefficiency projects. While PACE is a national initiative, programs can be established locally and tailored to meet specific regional needs. State legislation must be passed in order to authorize municipalities to create local PACE programs. Today, more than 30 states have commercial PACE enabling legislation with Commercial PACE programs active in 18 states. Illinois was the most recent state to pass PACE legislation on Aug. 11, 2017. PACE provides low-cost, long-term financing for energy efficiency projects such as, installing solar panels, HVAC improvements, roof repairs, updating insulation and installing LED lighting. This financing is available for a variety of commercial real estate properties including retail, multifamily, industrial, office, hospitality, affordable housing and senior housing. HOW DOES PACE WORK? Financing is arranged through a local program administrator or a municipality who reviews applications to confirm they meet the guidelines and then coordinates the issuance of bonds that are sold to provide capital for such projects. The property owners repay the long-term improvement financing through an assessment included on real estate tax bills. The PACE financing is secured by an assessment lien on the property which remains until the financing is repaid. If the commercial real estate property is sold before the PACE assessment is fully paid, the lien stays with the property and remains the responsibility of the new owner to be repaid through an assessment listed on the real estate tax bill as the savings from the energy-efficiency project continues to benefit the new owner.

24 www.IllinoisRealtors.org

THE VALUE OF PACE From a property owner’s perspective, there are many benefits of utilizing PACE financing. PACE offers up to 100 percent financing for projects; therefore, the owner does not have to worry about upfront capital and can reallocate funds that were previously reserved for energy projects. The energy savings from PACE projects can also increase a property’s value and cash flow. In addition, it provides access to energy-efficient technology that may not have been otherwise available to the property owner. Municipalities can also see benefits from PACE in terms of economic development, job creation, increased property values and the fact that programs can be set up so there are zero net costs to the issuer or government body. COMMERCIAL PACE NOW AVAILABLE IN ILLINOIS Legislation for PACE financing in Illinois began in 2009 with the passage of a basic PACE bill which didn’t give municipalities or property owners enough guidance as to how to set up a program. In 2017, the Illinois General Assembly passed Senate Bill 1700 - House Bill 2831, and in August, Gov. Bruce Rauner signed it into law. Illinois’ PACE law is only in effect for commercial properties, not residential properties. Recently PACE Nation reported, the office and retail sectors maintain their place as the top two users of commercial PACE financing, but in 2016, the industrial, nonprofit and agricultural sectors showed the most growth. The majority of PACE projects, (81 percent) are focused on improving energy efficiency and renewable energy.* The introduction of PACE in Illinois should spur more energyefficient projects within the commercial real estate market, improve property values and create jobs in the clean and renewable energy industries. Since 2009, PACE has nationally provided $493 million in financing for energy upgrades to 1,097 commercial buildings that created 7,395 jobs.* Mark Pikus is senior vice president of Inland Green Capital, LLC, an environmental finance and investment company that provides capital for PACE project initiatives nationwide, as well as developer Bonds and other energy saving improvement financing programs. Inland Green Capital has been an active investor in PACE programs since 2012. * PACE Nation Market Data, http://pacenation.us/pace-market-data/

Public Acts Taking Effect Jan. 1, 2018

2018 House and Senate session schedules available at www.ilga.gov

PA 100-22 Authorizes the creation of a State Tax Lien Registry for state tax liens (no longer with the county recorder).

Jan. 31 State of the State Address Feb. 14 Budget Address Feb. 16 Bill Introduction Deadline Mar. 20 Primary Election Day Apr. 10 Illinois REALTORS® Capitol Conference Apr. 13 House and Senate Committee Hearing Deadline Apr. 27 Final Passage – First Chamber May 11 Senate Committee Hearing for House Bills Deadline May 18 House Committee Hearing for Senate Bills Deadline May 25 Final Passage – Second Chamber May 31 Scheduled Adjournment

PA 100-286 Requires IDFPR to consider mitigating factors before denying or revoking a state license if the applicant or licensee has been convicted of a crime. IDFPR’s investigation division will review the suitability of applicants before any license may be issued. PA 100-107 ALL counties will have the authority to dissolve or consolidate governmental functions to encourage efficiency.

PA 100-416 Makes changes to Contract for Deed (CFD) transactions; including contract provisions, a requirement to record the contract and changes to when a seller would have to foreclose on the buyer if he/ she defaults. NOTE: CFD sellers of three or fewer CFD transactions are exempt from the new provisions. PA 100-188 Streamlines the regulation of real estate education providers, modernizes the delivery of courses, focused course material and addresses issues regarding leasing agents.

SPONSORED CONTENT

MILESTONES

By Rebecca Jensen President and CEO of Midwest Real Estate Data (MRED) How amazing to be part of the yearlong celebration of Illinois’ 200th birthday! Illinois REALTORS® is playing a huge role in acknowledging this significant milestone. MRED is playing a part too, supporting the efforts of Illinois REALTORS® to create the magnificent Bicentennial Plaza. Please take a look at the great coverage of the Bicentennial throughout this issue, and keep an eye out for future communications regarding MRED’s support and participation. Illinois REALTORS® is doing a magnificent job celebrating the Bicentennial and the contributions organized real estate has made since the formation of our state. I thought I would take this opportunity to talk about a couple of our own milestones as we begin the new year. I’m thrilled to report that the national initiative Broker Public Portal is really taking hold. This grassroots

effort has taken off thanks in great part to having a terrific app, Homesnap, as the way MRED listing content is delivered by our customers to their clients. MRED serves well over 40,000 people, so to hear that over 40 percent of our associations’ members have registered for Homesnap is incredible. I know other associations and their MLSs around the state have also adopted Homesnap and embraced the Broker Public Portal as our industry’s way to provide listing content to the consumer. I am very committed to this initiative and serve on its Board of Directors along with MRED Board member Paul Wells of RE/MAX of Barrington. I’m also very proud to report the excellent progress the MLS Grid is making. The goal of the MLS Grid is to have a single, standardized data point of access and management for MLSs and brokers. Whereas Upstream is focusing on a single source of data going INTO MLSs (and other places), the MLS Grid is focusing on a single source of data coming OUT of MLSs.

Its purpose is to improve the MLS industry, for the benefit of brokers. Based on RESO standards, the MLS Grid will eliminate redundancies currently in the marketplace. As of my writing this, there are eight MLSs, including MRED, that are founding members of the MLS Grid, from around the country. I am also deeply involved in this and working hard to make others around the country aware of this opportunity. For MLSs and brokers interested in more information, you can also check out www.MLSGrid.com. Here’s to hoping you hit some milestones of your own this year! As always, MRED stands ready to provide award-winning customer service to anyone who contacts us. Please feel free to get in touch with our Help Desk at 630-955-2755 or help.desk@ MREDLLC.com with any questions. See you soon! ®

Midwest Real Estate Data

REinventing MLS

ILLINOIS REALTOR® January 2018

26 www.IllinoisRealtors.org

Mike Scobey | Director of Local Advocacy and Global Programs

ILLINOIS REALTORS® DEFEAT RENTAL REGULATIONS IN TWO TOWNS, SAME NIGHT

Howard Handler

Conor Brown

On the same Oct. 3, 2017 night, officials in two municipalities, 60 miles apart, were considering adverse rental property regulations, and your Illinois REALTORS® governmental affairs staffers Howard Handler and Conor Brown were simultaneously advocating against them. u In Lincolnwood, a north suburban town bordering Chicago, the village president was backing a proposal to mandate “crime-free” training for landlords, a rental registration or licensing effort and point-of-sale inspection on all rental properties. u In Woodstock, McHenry County’s seat, officials were considering similar regulations, except with rental inspections to occur on an ongoing, systematic basis. The atmosphere at both towns’ meetings could not have more different. Lincolnwood’s proposal was over before it even began. After a brief presentation from the police chief in which he stated that there is little evidence that “crime free” policies reduce crime, the village board briefly considered the ordinance. Some voiced opposition and then the village president declared the issue concluded. The proposal was not advanced.

Meanwhile, the Woodstock meeting was much more boisterous. So many landlords, REALTORS® and other stakeholders showed up to the city council meeting that the city was forced to relocate it to the local high school. After the measure received significant criticism at the meeting, the city council agreed to indefinitely table the matter at around midnight. In Woodstock, rental regulations have been part of an ongoing debate for nearly a decade. REALTORS® educated both the public and city council members that onerous rental regulations will deter real estate investment. Additionally, these costs and burdens will fall on tenants, many of whom came to speak out against the proposal. ORLAND PARK CONSIDERS SPRINKLER REQUIREMENT Early in 2017, the village of Orland Park began a thorough re-write of its building code provisions related to new residential construction. The village staff recommended Tom Joseph that village board simply adopt the International Residential Code. That “model” code unfortunately includes a requirement that all new residential construction must include a fire sprinkler system. REALTORS® pointed out that this an expensive requirement; the potential cost to a new, 2,000 square foot home would be approximately $10,000. REALTORS® also pointed out that new home materials and construction makes these units the safest of all residential units. Advocacy on this issue is ongoing,

but we are confident the requirement on sprinklers will be removed. WHAT’S THE RIGHT ZONING APPROACH FOR BLOOMINGTON? When the city of Bloomington announced it would undertake the long-overdue task of a zoning ordinance update, the BloomingtonNormal Association of REALTORS® Kristie Engerman quickly became engaged in the process. Since the zoning ordinance is the primary regulatory tool for implementing the majority of priorities found in the city’s recently-approved comprehensive plan, its impact will be felt for decades. With that in mind, the BloomingtonNormal Association of REALTORS® organized a meeting for its membership with Bloomington’s city planners. Bloomington’s existing ordinance, adopted in 1979, was out of date. It did not take into consideration current development trends and land uses, and contained numerous conflicting or unclear provisions. As written, 80 percent of lots within the R-1 Zoning District were technically non-compliant based on lot size as defined in the current ordinance. So far, the approach to the re-write has welcomed the realistic expectations of the development community, embraced adaptive reuse of property for housing and proposed three new zoning districts for the city’s downtown core and transitional areas. REALTORS® will continue to be actively engaged in the process to support the city’s attempt to “make it easier to develop better.”

ILLINOIS REALTOR® January 2018

COMMERCIAL CORNER IS A CAREER IN COMMERCIAL REAL ESTATE SOMETHING YOU HAVE CONTEMPLATED? By Alex Ruggieri Working in commercial real estate is exciting and the rewards can be significant. Still, there are many questions to ask when making the transition from residential real estate to the commercial arena. How do I get started in commercial? Where can I find the courses and education I need? Which commercial niche markets best suit my personality and interests? A new, three-hour course, “The 411 on Commercial Real Estate: What You Need to Know,” offered by Illinois REALTORS® will help answer these questions. The course is the first of its kind offered by Illinois REALTORS®, and aims to address the interests of members who are considering a career move into commercial brokerage. The course cannot and does not try to replace the curriculum offered by the many institutes and affiliate organizations of the National Association of REALTORS® (NAR). Groups such as the Certified Commercial Investment Member (CCIM), Society of Industrial and Office REALTORS® (SIOR), the REALTORS® Land Institute (RLI), the Institute of Real Estate Management (IREM), the Counselors of Real Estate (CRE) and others all offer in-depth education on a variety of commercial topics.

that it will “ Ibebelieve a tremendous help

to anyone who has wondered if commercial might be a path for them and it will certainly help you decide on whether to take the leap.”

They remain go-to organizations for individuals seeking to learn more about a particular area of commercial real estate practice, find a mentor or pursue 28 www.IllinoisRealtors.org

Thinking about a career in commercial real estate? Watch the new video featuring REALTORS® Alex Ruggieri and Norm Willoughby, who will walk you through the basics of commercial real estate and how it differs from residential transactions. Find the video and a video guide at www.IllinoisRealtors.org/Commercial.

opportunities for continuing education. Rather, the new Illinois REALTORS® course seeks to get the practitioners to ask themselves questions regarding their own interests and then points to things they might consider in making the transition to commercial. While one can transition gradually, a move into commercial real estate cannot be done in half measures. One needs to make a commitment to get the education needed to practice in a chosen niche. Once you know what area you want to explore, consider reaching out to possible mentors who are practicing in that area of business and can offer advice. Mentors who are willing to share their perspectives and experiences are worth their weight in gold. Once you decide to make the transition, contact the institute which matches your interests and enroll in classes. The coursework provides a pathway to earning the commercial designation of your choice. Interested in farmland? Connect with the Farm Land Institute. If industrial is your choice, consider the courses offered by SIOR. The key to success in commercial real estate is to learn the most you can in the trade area of your choice.

You really do need to go all in and commit if you expect to succeed. By now you might be asking yourself; Is there a way to succeed in commercial without all of this work? Surprisingly the answer is, ‘yes!’ You can earn significant commissions and fees in commercial simply by referring the commercial clients or your leads to a qualified colleague. If you truly have a relationship with the client and can refer them, most of the work will be handled by a qualified professional who is delighted to pay you a referral at closing. I am excited about the new introductory commercial course and hope you find value in its content. I believe that it will be a tremendous help to anyone who has wondered if commercial might be a path for them and it will certainly help them decide whether to take the leap. About the writer: REALTOR® Alex Ruggieri, CCIM, CIPS, CRE, SEC, is a senior investment advisor with SVN-Ramshaw Real Estate in Champaign. He is a member of the Illinois REALTORS® Global Business Council and the Commercial/Industrial/ Investment Committee. He is a member of NAR’s Commercial Committee. He can be reached at alex.ruggieri@svn.com.

DUTIES OWED IN COMMERCIAL REAL ESTATE By Norm Willoughby A career in commercial real estate can be very rewarding, but it definitely requires a skill set that must be learned through proper training and experience. All real estate transactions are inherently becoming more complex, and commercial practice absolutely exemplifies that fact. There are several different types of commercial property and even more characteristics within each type. Adding to the complexity is the variety of brokerage service types that can be offered to consumers within those types. In light of that, a licensee should find a niche within real estate and become an expert. In fact, licensees can endanger their licenses and their membership as REALTORS® by practicing in areas where they do not have the proper training or expertise. Under Article 15 in the Real Estate License Act of 2000, a licensee when representing a client owes a duty to:

“Exercise reasonable skill and care in the performance of brokerage services.” Also, in the administrative rule at the section concerning unprofessional conduct, a licensee may be found in violation for: “Any conduct constituting a breach of duty to the client causing harm to the client in the future. In establishing harm, the Department need not prove actual economic damage to the client.” ARTICLE 11 OF THE CODE OF ETHICS IS SPECIFIC AND VERY CLEAR: “The services which REALTORS® provide to their clients and customers shall conform to the standards of practice and competence which are reasonably expected in the specific real estate disciplines in which they engage; specifically, residential real estate brokerage, real property management, commercial and industrial real estate brokerage, land brokerage, real estate appraisal, real estate counseling, real estate syndication, real estate auction,

and international real estate.

REALTORS ® shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or service, or unless the facts are fully disclosed to the client. [Emphasis added] Any persons engaged to provide such assistance shall be so identified to the client and their contribution to the assignment should be set forth.” This course provides information to licensees concerning the intricacies of commercial brokerage and encourages licensees to become experts. About the writer: Norm Willoughby is the CEO of the Central Illinois Board of REALTORS® and a licensed real estate instructor. He can be reached at normcibr@gmail.com. ILLINOIS REALTOR® January 2018

What are you waiting for?

By Gideon Blustein, Member Outreach Manager and Local Governmental Affairs Director I heard the phrase, “what are you waiting for,” at the National Association of REALTORS® Conference and Expo this past November in Chicago. A Local Governmental Affairs Director (GAD) from another state explained how using “What are you waiting for?” as the subject line on an emailed Call for Action yielded a 3 percent jump in participation from REALTOR® members. She branded the method as “positive shaming.” I really like the concept of “positive shaming.” Asking myself “what am I waiting for” on those days when I just do not feel like making cold calls or crafting an email or writing the article, is an efficient way to jump start my motivation. Perhaps it even works when it comes to my REALTOR® Outreach mantra of Vote, Act, Invest.

VOTE

What are you waiting for? A large majority of REALTORS® are registered and vote in all elections. Are you the REALTOR® that thinks your vote does not matter? It will start to matter when you have a transaction tanked by an excessive transfer tax or must pay $50 and get a license to put out a yard sign.

ACT

Designated REALTOR® Kimberley Thompsen and REALTOR® Carol Mellander of Century 21 1st Class Homes in Schaumburg encourage members of their office to "Vote, Act, Invest" in this office visit by Illinois REALTORS® Outreach Manager Gideon Blustein.

Text REALTORS to the number 30644.

What are you waiting for? It only takes about 10 to 15 seconds to respond to Calls for Action, yet we typically get about 20 percent participation. Should we only let 20 percent of our members fight 100 percent of our battles?

INVEST

What are you waiting for? Thirty-nine percent of your Illinois REALTORS® colleagues in 2017 made at least a $20 investment in the REALTORS® Political Action Committee (RPAC). And at least 549 of your colleagues have invested more than $1,000 as Major Investors because they know that investing in RPAC protects their business and clients. In closing, have you had an Outreach visit from the Illinois REALTORS® at your office or company meeting? If not, what are you waiting for? Get us booked for your next meeting by emailing me at gblustein@IllinoisRealtors.org. 30 www.IllinoisRealtors.org

Kristie Engerman of the Illinois REALTORS® Outreach Team visits Designated REALTOR® Robin Simpson and members of the Coldwell Banker The Real Estate Group office in Peoria to cover member benefits and a big push on advocacy and Calls for Action.

ILLINOIS REALTORÂ® January 2018

MARKET WATCH 2018 ILLINOIS HOUSING MARKET FORECAST The good, the bad and the unknown Illinois home prices posted strong gains in 2017 and home sales, which experienced more irregular growth, showed positive year-over-year growth overall. As the state’s housing market heads into 2018, expect continued steady growth, according to the 2018 Housing Forecast from the Regional Economics Applications Laboratory (REAL) at the University of Illinois. Find the full forecast at bit.ly/Forecast2018 but here are a few of the highlights:

THE GOOD

Median home prices maintained their upward trajectory in 2017 and marked the fifth consecutive year of positive annual growth each month. This trend is expected to continue in 2018. Price gains are expected, but within a narrower range, according to the forecast. Home sales are also expected to experience overall positive gains and regular (excluding distressed properties) home sales in the Chicago area will be a major factor in that growth.

THE BAD

Any number of factors could impact the housing market in 2018, but one overarching question is potential federal tax reform (which at press time was still being debated). If the proposed tax changes are approved to limit mortgage interest and state and local tax deductions, it will have negative repercussions on homeownership. And if preliminary attempts to pass tax reform fail, there could be uncertainty over whether lawmakers will make future attempts to pass tax reform in 2018. All of that could affect confidence in the market in the new year.

Source: University of Illinois REAL, Illinois REALTORS®

32 www.IllinoisRealtors.org

Illinois monthly home sales Chicago PMSA home sales Illinois median price Chicago PMSA price

growth is expected to range from

-0.1% to +16.4% growth is expected to range from

-2.5% to +14.7% gains are expected to range from

0.7% to +4.4 %

“”

If sales growth is more muted in the Chicago PMSA than it might otherwise be, it is due in part to the continuing decline of foreclosed sales as a share of the market, according to the forecast. Another factor to watch will be job growth. Illinois added jobs in 2017, but the state’s job growth has continued to lag behind national employment gains.

THE UNKNOWN

2018 OUTLOOK AT A GLANCE

gains are expected to range from

+1.8% to +5.6%

Illinois’ employment recovery has slowed perceptibly over the last 12 months. There is no doubt that the lingering effect of the state budget impasse, the declining inventory together with the anemic employment growth rate all contributed to dampening the housing market. Uncertainty about the impact of mortgage interest and state and local tax deductibility may reduce the attraction of house purchases among first-time buyers in 2018.

Geoffrey J.D. Hewings Director of the Regional Economics Applications Laboratory of the University of Illinois.

Source: University of Illinois REAL, Illinois REALTORS®

ETHICS HEARINGS The Illinois REALTORSÂŽ Board of Directors approved publishing the results of ethics hearings throughout the state. These are the conclusions of ethics hearings and are not part of the Ethics Citation Program. TIME PERIOD: 4/1/17 to 9/30/17

Articles found by a Hearing Panel to have been violated and ratified by the Board of Directors

Previous violation(s) in last three (3) years?

Discipline and fines imposed

Complaint #1

Article 1

One continuing education course

Complaint #2

Articles 1, 2, 9 and 12

$1,000 fine, Letter of Reprimand and one continuing education course

Complaint #3

Articles 1 and 2

Letter of Reprimand, $2,000 fine and two continuing education courses

Complaint #4

Articles 1 and 2

Letter of Warning, $1,000 fine, two continuing education courses

Complaint #5

Articles 1 and 3

$1,000 fine and one continuing education course

Complaint #6

Articles 1 and 2

Letter or Reprimand, $2,000 fine and two continuing education courses

Complaint #7

Articles 1, 9 and 13

$2,000 fine and two continuing education courses

Complaint #8

Articles 1 and 11

$1,000 fine and one continuing education course

Complaint #9

Articles 1, 12 and 16

Letter of Reprimand and one continuing education course

Complaint #10

Articles 1 and 9

Letter of Warning

Complaint #11

Article 2

Letter of Warning, $500 fine, one continuing education course

Complaint #12

Article 3

Letter of Warning

Complaint #13

Article 3

Letter of Warning

Complaint #14

Article 3

Letter of Reprimand and one continuing education course

Complaint #15

Article 3

Letter of Warning

Complaint #16

Article 3

Letter of Warning

Complaint #17

Articles 3, 12 and 16

$6,000 fine, Letter of Reprimand, two continuing education courses

Complaint #18

Article 4

$100 fine and Letter of Warning

Complaint #19

Articles 4, 9 and 13

Letter of Reprimand, $1,000 fine and two continuing education courses

Complaint #20

Article 9

One continuing education course

Complaint #21

Article 9

Letter of Warning, $250 fine and one continuing education course

Complaint #22

Article 9

Letter of Warning

Complaint #23

Article 12

$250 fine and one continuing education course

Complaint #24

Article 12

Letter of Warning

Complaint #25

Article 12

Letter of Warning

Complaint #26

Article 12

Letter of Warning

Complaint #27

Article 12

Letter of Reprimand, $1,500 fine and one continuing education course

Complaint #28

Article 15

Letter of Reprimand and $500 fine

Complaint #29

Article 16

Letter of Reprimand and one continuing education course

Complaint #30

Article 16

$1,000 fine and one continuing education course

Complaint #31

Article 16

Letter of Warning

Complaint #32

Article 16

Letter of Warning, $500 fine and one continuing education course

Complaint #33

Article 16

Letter of Warning, $500 fine and one continuing education course

ILLINOIS REALTORÂŽ January 2018

REALTOR® COMMUNITY FOLLOW US:

ILLINOIS REALTORS® IN THE NATIONAL SPOTLIGHT FOR INDUSTRY LEADERSHIP Illinois REALTORS® were recognized for their leadership during the REALTORS® Conference & Expo in Chicago in November.

Chicago Association of REALTORS® CEO Ginger Downs received the award during the NAR Board of Directors meeting. Illinois REALTORS® Alex Ruggieri and Dan Wagner

WAGNER, RUGGIERI HONORED WITH NATIONAL COMMERCIAL AWARDS Illinois REALTORS® President-elect Dan Wagner and REALTOR® Alex Ruggieri were honored with NAR's National Commercial Award. Wagner, of Wheaton, is senior vice president of government relations for Oak Brook-based Inland Real Estate Group of Companies and Ruggieri, of Champaign, is senior investment advisor with SVN-Ramshaw Real Estate.

Illinois REALTOR® Chris Read (center) was joined by previous recipients of the award, Illinois REALTORS® Catherine Terpstra and Michael Rickert.

READ HONORED WITH SRES OUTSTANDING SERVICE AWARD Chris Read, owner of CR REALTOR® and CEO of CR Strategies in Woodridge, was honored with the 2017 Seniors Real Estate Specialist (SRES) Outstanding Service Award.

DOWNS HONORED WITH WILLIAM R. MAGEL AWARD Chicago Association of REALTORS® CEO Ginger Downs was recognized as the recipient of the 2017 William R. Magel Award for excellence in association leadership at the NAR Board of Directors meeting in November. Downs, who will retire in 2018, has led REALTOR® associations in Chicago and the Seattle area.

NINE ILLINOIS REALTORS® WILL SERVE IN NAR LEADERSHIP ROLES IN 2018

Genie Birch

Multicultural Real Estate Leadership Advisory Group CHAIR

John C. Kmiecik

Business Issues Policy Committee CHAIR

Zeke Morris

Large State Forum CHAIR

Karen Robertson

Medium Board Forum CHAIR

Tommy Choi

Young Professionals Network Advisory Board VICE CHAIR

Maurice Hampton

Global Business Councils Forum VICE CHAIR

Kyle Killebrew

Emerging Business & Technology Forum VICE CHAIR

Sarah L. Ware

Housing Opportunity Committee VICE CHAIR

Deena Zimmerman

Real Property Operations Committee VICE CHAIR

GLOBAL ACCOMPLISHMENTS Silvano serving as NAR Global Real Estate Committee Liaison Vicky Silvano, CIPS, CRS, a broker with Century 21 SGR in Chicago, is serving on NAR President Elizabeth Mendenhall's expanded leadership team as the 2018 Global Real Estate Committee Liaison. In her role as liaison, Silvano will facilitate activities and communications between NAR's global committees and the leadership team. 34 www.IllinoisRealtors.org

GLOBAL BUSINESS COUNCIL EARNS TOP HONORS The Illinois REALTORS®’ Global Business Council was recognized with the Platinum Global Achievement Program Award for its work on behalf of the industry. The association was recognized for its Consulate General Liaison Program and commitment to providing global outreach opportunities for members.

Suvarnamani honored with Global Achievement Award Nancy Suvarnamani, founder of Century 21 SGR in Chicago, was honored for her work in global real estate with NAR’s Global Achievement Award. She is Illinois REALTORS®’ Consulate General Liaison for Thailand and is a 2018 member of the Illinois Global Business Council.

ILLINOIS REALTORÂ® January 2018