MD REALTOR Magazine - April 2014 by Jermaine Hawkins

VOLUME XLVIII Number 3 / APRIL 2014 / MAY 2014

Maryland REALTORS Promote Fair Housing 速

Page 17

mdrealtor.org / marylandhomeownership.com

Fair Housing FAQs

MAR Awards Call For Entries

The Maryland Association of REALTORS速 The Voice For Real Estate速 In Maryland

COLDWELL BANKER RESIDENTIAL BROKERAGE

108

BRAND STRENGTH We’ve made quite a name for ourselves. After more than a century of leadership, innovation and success, 9 out of 10 consumers know the Coldwell Banker ® brand*. Our globally recognized name and logo will give you a built-in level of consumer trust that a competitor would have to work long and hard to earn. Let our trusted brand name open doors for you.

CareersCB.com

*Brooks Rose Supplemental Awareness Study, 2013. Nothing in this document is intended to create an employment relationship. Any affiliation by you with Coldwell Banker is intended to be that of an independent contractor sales associate. ©2014 Coldwell Banker Real Estate LLC. Coldwell Banker is a registered service mark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Operated by a subsidiary of NRT LLC. 8072BALT_3/14

President’s Perspective

Russ Boyce

Spring is Coming!

hope this greeting finds you juggling clients and completely engaged in your business. We are still on target for the busiest spring real estate market in years. This market has proven to be the best “time management” course I have ever taken. We certainly learned how to survive over the recent years and now it’s time to thrive! As REALTORS®, we know firsthand that our industry, our profession and the property owners we represent continue to face efforts to assess more taxes, or remove critical incentives, as governments at all levels look to real estate to raise revenue. On page 6, MAR REALTORS® Political Action Committee (RPAC) Trustee Chair and 2007 President Ilene Kessler and I explain why we established a special fund to finance our fights on all these fronts, and how together with RPAC, we have the resources to help us protect private property rights and the interests of our members. It is critical to your business that you understand the impact any legislative changes could have on your clients and your future.

www.mdrealtor.org

As I write, MAR is representing your interests before the Maryland General Assembly. The 2014 Legislative Session is scheduled to adjourn on Monday, April 7 (Sine Die). You can keep abreast of events on the bills we follow by viewing a brief weekly video posted on mdrealtor.org. We will post up-to-date summary of Session highlights regarding MAR’s priority legislation and the status of other various bills reviewed by MAR’s Legislative Committee and the Maryland General Assembly shortly after the session adjourns. This April we celebrate the 46th anniversary of the Fair Housing Act, historic legislation ensuring fair and equal housing opportunities for all. As REALTORS®, we are on the front lines promoting Fair Housing for our clients. Don’t miss our revised Fair Housing Resource Guide on page 17. It is one of our most popular features, designed to be pulled out to be used as a ready-reference. And be sure to read Fair Housing FAQs on page 8, a great reference when working with clients and customers. We also feature our Fair Housing Poster Contest in this issue. This annual event displays artwork from elementary school students across the state. The winning posters will appear in the 2015 MAR Fair Housing calendar. See page 22 for the full story.

The Maryland Department of Housing & Community Development highlights enhancements to its Maryland Mortgage Program on page 10. Don’t miss this important information that can help buyers looking for financing assistance. MAR is accepting volunteers for the 2014/2015 Committee year. Help us make your Association even better. We need your time and talents for the important committee work that guides the programs and services we provide to our members. See page 14 to find out more. Think about some of the issues in our industry you are passionate about. Then match your thoughts to a committee. Everybody wins! And don’t miss our Legal Department’s advice about joint advertising and RESPA in our “From the Hotline” feature on page 34. Please check out our website mdrealtor.org frequently. We have up to date information to help you on every relevant real estate issue affecting you and your clients. Thank you for all you do to protect the integrity of our industry. I remain a call or email away if you have any questions or concerns. russboyce212@gmail.com.

MARYLAND REALTOR® APRIL 2014 / MAY 2014

TA B L E O F CO N T E N TS Features LRFF & RPAC: What’s the Difference? 6 FAIR HOUSING FAQs 8 Poised to Take a Giant Step Forward: Maryland Mortgage Plan Unveils New Marketing Campaign

MAR Volunteers—We Want You! 14

LRFF & RPAC: What’s the Difference?

Becoming a Center of Influence

MARYLAND REALTORS® PROMOTE FAIR HOUSING

CALL FOR ENTRIES MAR Awards

2015 Annual Fair Housing Poster Contest

Departments

FAIR HOUSING FAQs

Poised to Take a Becoming a Center Giant Step Forward of Influence

MARYLAND REALTOR® APRIL 2014 / MAY 2014

REGULATION NEWS Property Management Legislation Pending

RESIDENTIAL SALES Let There Be Spring

MRIS 31 Are You Ready to “Spring” into Action? Increase Your Productivity with New MRIS Tools COMMERCIAL CONNECTION Environmental Clauses: Often Overlooked

FROM THE HOTLINE RESPA and Advertising

Maryland Real Estate Commission News Pat Hannon: A Trusted Colleague Retires

www.mdrealtor.org

D.R. HORTON, AMERICA’S #1 HOMEBUILDER 11 YEARS IN A ROW*, INVITES YOU TO VISIT ANY OF OUR COMMUNITIES THROUGHOUT MARYLAND AND VIRGINIA FOR BETTER HOMES AT BETTER PRICES.

SIGN UP FOR OUR ** VIP PROGRAM *As ranked by Builder Magazine. Prices, included features, delivery dates and availability are subject to change without notice or obligation. Photographs are representational only. Terms and conditions subject to credit approval, market changes and availability. **Realtor VIP Program entitles Realtor to an extra 1% commission on successfully settled sales in D.R. Horton’s Maryland and Virginia Communities that occur subsequent to the first sale after April 1, 2014 and before September 30, 2014. First sale must also occur between April 1, 2014 and September 30, 2014. Bonus subject to change without notice or obligation. Extra percentage is in addition to the standard 3% Buyer’s Agent Commission for a max of 4%. Cannot be combined with any other Agent bonus or incentive. Not valid on prior contracts. Additional terms, conditions and restrictions apply. See Sales Consultant for details. MHBR #535

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2014 Maryland Association of REALTORS® Leadership Team Maryland Association of REALTORS® 200 Harry S Truman Parkway | Suite 200 Annapolis, MD 21401-7348 800.638.6425 | www.mdrealtor.org

Executive Leadership Team

J Russell “Russ” Boyce

Janice R Kirkner

President RE/MAX 100 10665 Stanhaven Place White Plains, MD 20695-3062 301.843.5100 russboyce212@gmail.com

President Elect Long & Foster Real Estate, Inc. 1208 Nottingham Drive Westminister, MD 21157-8334 410.795.9600 janice.kirkner@longandfoster.com

Editor

Melissa Lutz | melissa.lutz@mdrealtor.org

Advisory Committee Jenn Klarman | Chair

Advertising

Arlene Braithwaite | 410.772.0820

Publication Design

HBP, Inc., 952 Frederick Street, Hagerstown, MD 21741 800.638.3508 | www.hbp.com

Carole A Maclure

Bonnie Casper

Treasurer RE/MAX Advantage Realty 17304 Evangeline Lane Olney, MD 20832-2928 240.295.6000 maclure7@aol.com

Secretary Long & Foster Real Estate, Inc. 4650 East-West Highway Bethesda, MD 20814-3419 301.907.7600 bonnie@lnf.com

Carlton J Boujai Jr

Mary C Antoun

Immediate Past President EXIT Realty Prosperity Group 5300 Westview Drive Suite 105 Frederick, MD 21703-8339 301.698.8700 carltonboujai@mris.com

Chief Executive Officer Maryland Association of REALTORS® 200 Harry S Truman Parkway Suite 200 Annapolis, MD 21401-7348 800.638.6425 mary.antoun@mdrealtor.org

MARYLAND REALTOR® APRIL 2014 / MAY 2014

Mission Statement The Maryland Association of REALTORS® exists to support all segments of its membership and their specialties. The Maryland Association of REALTORS®, through collective efforts with local boards/associations and the National Association of REALTORS®: ■ Develops and delivers programs, services and related products that maintain and elevate the high standards of the real estate business and the professional conduct of its practitioners; ■ Assists members in ethically and professionally serving the public; ■ Promotes and preserves the right to own, transfer and use real property; and ■ Protects the right of members to conduct business within a framework of fair and reasonable laws and government regulations. In principle and in practice, the Maryland Association of REALTORS® values and seeks diversity and inclusive participation within the field of real estate and recognizes each member as a unique individual. Maryland REALTOR® (USPS 0016-017) is published bimonthly by the Maryland Association of REALTORS®, Suite 200, 200 Harry S Truman Parkway, Annapolis, MD 21401-7348. Periodical postage paid at Annapolis and additional mailing offices. Postmaster send address changes to: Maryland REALTOR®, Suite 200, 200 Harry S Truman Parkway, Annapolis, MD 21401-7348. Member subscriptions of $3.81 are paid with annual dues. This publication is designed to provide accurate and authoritative information regarding the subject matter covered. It is offered with the understanding that the publisher is not engaged in rendering professional advice. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Articles that appear in Maryland REALTOR® are an informational service to members. Their contents are the opinions of the authors alone and do not necessarily represent those of the Maryland Association of REALTORS®. Permission to reprint articles appearing in Maryland REALTOR® magazine must be requested in writing. Also include purpose for request. While this magazine makes a reasonable effort to establish the integrity of its advertisers, it does not endorse advertised products or services unless specifically stated. ©2013 Maryland Association of REALTORS®, Inc.

www.mdrealtor.org

LRFF & RPAC:

What’s the Difference?

Russ Boyce, 2014 MAR President Ilene Kessler, 2014 RPAC Trustees Chair and 2007 MAR President These and similar attempts to burden real estate, property owners and real estate professionals with more costs are popping up in state and local legislatures all across the country.

ut we don’t have to look that far. Every one of these headlines refers to an actual event that happened right here in Maryland, in just the last few years. And in each one, Maryland REALTORS® were able to defeat the proposal or significantly diminish its negative effects. How? We succeeded because we had two powerful weapons: the voice of our 21,000 Maryland REALTORS®, and the resources to wage multi-level campaigns to persuade officials that such actions will hurt both real estate and the economy. As the current and former Maryland Association of REALTORSs® (MAR) Presidents, we are proud that our colleagues across the state respond to our Calls for Action at one of the highest rates in the country, and contact their local or state officials to let them know the effects of such proposals.

MARYLAND REALTOR® APRIL 2014 / MAY 2014

But as local, state and federal governments search for more revenue, it has become increasingly difficult for REALTORS® alone to carry the message. We must have more extensive resources, including outreaches to homeowners and the public, through advertising, polling, media campaigns, public outreach and other tools, to make our case successfully. In Maryland especially, these efforts are expensive. That’s why in 2007 we established a special fund, the Legal and Regulatory Relief Fund (LRRF), to be used exclusively to underwrite these efforts. Although we were one of the first state REALTOR® associations to establish such a fund, today almost every state has done so, because efforts to increase the tax burdens on our industry are nationwide. And even with the help of the National Association of REALTORS®, which supplements funding in many such cases, these campaigns can cost hundreds of thousands or even millions of dollars. www.mdrealtor.org

The funding that we dedicate to finance these efforts is essentially an insurance premium that helps keep the business environment supportive of the real estate industry, which is a key contributor to Maryland’s economic health. Some REALTORS® have asked Ilene, who chairs Maryland REALTORS® Political Action Committee (RPAC), if our LRRF is a substitute for voluntary contributions to our PAC. We understand the confusion. The two are separate yet complimentary efforts. LRRF funds lobbying and issues campaigns that we undertake when proposed legislative or regulatory actions harmful to our industry arise locally or in Annapolis. We can use those funds to defray the costs of any and all associated activities, but no LRRF monies may be used to contribute to any candidates for elective office.

Limited Offer for 6% Commission

RPAC funds, raised from voluntary REALTOR® investments, are subject to strict federal and state laws. They may be used only to make direct contributions to candidates or to fund campaigns on their behalf. We need both. LRRF underwrites our fights against proposals harmful to our members’ and our clients’ interests. RPAC helps us elect officials who understand the importance of our issues. Maryland is not the only state facing repeated assaults on the real estate industry, as the trend is evident in virtually every state as well as in Congress. To date, we have been one of the most successful. That’s largely because our members understand the importance of paying that insurance premium, and of supporting officials who recognize that an economy cannot prosper if its real estate industry does not thrive. For questions or more information about RPAC, contact Ilene at ilenekessler@comcast.net. Our RPAC Trustees have recently designed an outstanding comprehensive training class on how RPAC works to protect you and your clients. If you would like more information on the class, or to bring the class to your association, let Ilene know. For questions or more information about LRRF, please contact Russ at russboyce212@gmail.com. www.mdrealtor.org

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The Ritz-Carlton Residences, Inner Harbor, Baltimore are not owned, developed or sold by The Ritz-Carlton Hotel Company, L.L.C. An affiliate of RXR Realty LLC uses The Ritz-Carlton marks under license from The Ritz-Carlton Hotel Company L.L.C. This is neither an offer to sell nor a solicitation to buy to residents in states where registration requirements have not been fulfilled. MHBR No. 4096. An RXR Realty development.

MARYLAND REALTOR® APRIL 2014 / MAY 2014

FAIR HOUSING

s Q FA

April is Fair Housing Month for REALTORS®. Here are useful facts when working with diverse clients and customers. What is a disability under the Fair Housing Act? The definition under the Act includes diseases such as orthopedic, visual, speech and hearing impairments, cerebral palsy, autism, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, HIV, mental retardation, emotional illness, drug addiction and alcoholism. Property managers and/or staff may not inquire into the existence, nature and extent of disabilities when application is made for housing.

What if the disability poses a direct threat of harm or undue financial burden? Juvenile offenders and sex offenders are not persons with disabilities protected under the Fair Housing Act. The Act does not protect persons who are currently engaging in the illegal use of controlled substances. It also does not protect an individual with a disability whose tenancy would constitute a “direct threat” to the health or safety of other individuals, or result in substantial physical damage to the property of others, unless the threat can be eliminated or significantly reduced by reasonable accommodation The Fair Housing Act does not allow for exclusion of individuals based upon fear, speculation or stereotype about a particular disability or disabilities in general. A determination must be based on reliable objective evidence: (1) the nature, duration, and severity of the risk of injury; (2) the probability that injury will actually occur; and (3) whether there is any reasonable accommodations that will eliminate the direct threat.

MARYLAND REALTOR® APRIL 2014 / MAY 2014

www.mdrealtor.org

What are reasonable accommodations? It is unlawful for any person to refuse to make reasonable accommodations in rules, practices, or services, when such accommodations may be necessary to afford persons with a disability the equal opportunity to use and enjoy a dwelling. “Reasonable accommodations” includes reasonable structural modifications and adjustments to business rules, polices, practices and services. There must be an identifiable relationship between the requested accommodation and the individual’s disability. Applies to property owners, housing managers, homeowners and condominium associations, lenders, real estate agents and brokerage services.

Are there any instances when a provider may deny a request for a reasonable accommodation? Yes. A request for a reasonable accommodation may be denied if it would impose an undue financial and administrative burden on the housing provider, or would fundamentally alter the nature of the provider’s operations. For example, if is there an alternate accommodation that would effectively meet the request within the financial resources available.

May a housing provider charge an extra fee or require an additional deposit from applicants or residents with disabilities as a condition of granting a reasonable accommodation? Housing providers may not require persons with disabilities to pay extra fees or deposits as a condition of receiving a reasonable accommodation. www.mdrealtor.org

What can a landlord require for applicants who say they need to have an emotional support animal? The applicant may be asked to provide documentation so that the landlord or HOA can properly review the accommodation request. The landlord/HOA may ask a person to certify, in writing, (1) that the tenant or a member of his or her family is a person with a disability; (2) the need of the animal to assist the person with that specific disability; and (3) that the animal actually assists the person with a disability. Landlords must use a “flexible standard, based on the needs of the particular tenant.”

What does the recent rule on discriminatory effects mean for brokers listing and selling property? The greatest effect will be on lenders and zoning commissions, but brokers involved in property management should keep this rule in mind and conduct periodic assessments of any unintended impact of practices or policies. For example, a certain income level is required to obtain housing at a property development. The policy is intended to be a “facially neutral” applicant screening criteria. The property manager should verify that this policy does not disproportionately affect the availability of that housing for a particular demographic group protected under the Fair Housing Act. Source: The Joint Statement of the Department of Housing and Urban Development and the Department of Justice, Washington, D.C, May 17, 2004.

MARYLAND REALTOR® APRIL 2014 / MAY 2014

Poised to Take a Giant Step Forward: Maryland Mortgage Plan Unveils New Marketing Campaign From the Maryland Department of Housing and Community Development (DHCD)

When the state unveiled new branding for the Maryland Mortgage Program, officials vowed to change the way they communicate with the public.

ongue-twisting acronyms will be out, they promised. Clarity and simplicity will be in.

For a 40-something year old program that sometimes seems to be one of the best-kept secrets in Maryland, the focus on clarity and simplicity may be the most significant rebranding of all.

“The challenge always has been, how do we build upon the positive aspects of working with a state program? We offer a safe, reliable mortgage product; while combating the negative perceptions—we are overly bureaucratic and difficult to work with,” says William Ariano, deputy director of the Maryland Department of Housing and Community Development (DHCD).

MARYLAND REALTOR® APRIL 2014 / MAY 2014

Those who work with the program already sing its praises. John Tomasello, of Universal American Mortgage Corp., says his company had been doing business in the state for years but had not carried Maryland Mortgage Program loans until his daughter was ready to buy her first home.

www.mdrealtor.org

“When I looked into it, I saw it really is an outstanding program,” Tomasello says. “When we started, we did about 10 to 15 loans. This year, we expect to do 80 to 100. I can tell you we love working with the state. The application process is simplicity itself. The staff is knowledgeable. There literally is nothing better.” With Maryland’s housing market showing steady growth and families beginning to feel more secure about their economic future, the Maryland Mortgage Program is poised to take a giant step forward. In February, DHCD Secretary Raymond A. Skinner unveiled a new look, a redesigned website and even a new way of talking about the state’s flagship homeownership program during the annual Maryland Mortgage Program Top Lenders Award breakfast. “The Maryland Mortgage Program is a partnership between the public and private sector that works,” he says. “It works by harnessing the power of the housing market for the benefit of qualified homebuyers— many looking to buy their very first home – who then contribute to the economic vitality of our communities, our businesses and our state.” DHCD works through its network of lenders to offer 30-year fixed mortgages at competitive rates and significant downpayment assistance. As the state-chartered housing finance agency of Maryland, DHCD raises resources through the sale of mortgagebacked securities to help make homeownership more affordable to Maryland families. More than 11,400 families have achieved their dream www.mdrealtor.org

of homeownership through the program under the O’Malley-Brown administration, with mortgages and downpayment assistance totaling more than $2.1 billion. More than 1,500 families obtained Maryland Mortgage Program loans and downpayment assistance in fiscal year 2013. Secretary Skinner says he wants to double that volume by 2015. To facilitate this, the agency has redesigned its website to make it more accessible to the public and to use the responsive design elements of the state’s Maryland.gov website. The new Maryland Mortgage Program logo features a stylistic swoosh based on the state flag. The slogan, “Invest in Home. Invest in You,” reflects the program’s focus on the needs and aspirations of the borrower, says DHCD Marketing Manager Tim Pinel. “We believe there are standout features of the Maryland Mortgage Program: significant downpayment assistance, 30-year fixed mortgages and homebuyer education,” Pinel says. Downpayment Assistance: Qualified buyers can receive a zero percent deferred loan that is not due in full until borrowers pay-off, refinance or sell their homes. Downpayment assistance is $5,000, but that amount can grow considerably when combined with other incentive programs such as the Partner Match programs DHCD has with participating employers, builders and developers and local jurisdictions. For a young couple with good income and credit but no savings, the program’s downpayment assistance feature can make all the difference.

Thirty-year Fixed Rate Mortgage: The national financial crisis and the collapse of the housing market has cooled consumers’ ardor for adjustable rate, interest-only and other exotic mortgage packages. The good, solid 30-year fixed-rate mortgage offers borrowers a fixed payment over the life of the loan, giving them predictability and reliability and allowing them to build equity over the life of the loan. The Maryland Mortgage Program offers conventional, VA, RHS and FHA- insured loans. Although rates change daily according to the marketplace, they are competitive with other mortgage packages. Homebuyer Education: The foreclosure crisis led some to question the importance of homeownership as a central component of the American Dream. Were efforts to open opportunities for low and moderate income families ill-conceived, they wonder? Did we push too many families into homeownership before they were ready? The homebuyer education component of the Maryland Mortgage Program benefits buyer, seller, lender and REALTOR. An educated buyer is focused, informed and more likely to get through the application process. In addition to the new campaign, the Maryland Mortgage Program is making a special effort to build upon its partnerships with lenders and REALTORS in a number of ways. Ariano says DHCD is now a member of the Maryland Mortgage Bankers Association and most of the real estate organizations in the state. The agency has recognized its highperforming Maryland Mortgage Program lender partners through the annual Top Lender Awards for MARYLAND REALTOR® APRIL 2014 / MAY 2014

REALTORS® Federal Credit Union A Division of Northwest Federal Credit Union

Maryland Mortgage Program’s Lender Network Outstanding Performance First Place Winner First Home Mortgage Corp. Second Place Winner Carrollton Mortgage Services Third Place Winner Wells Fargo Home Mortgage

Commercial Real Estate Loans

Rising Star AwardWinner PrimeLending

Purchase | Refinance | Improvements

Winners from the Governors Housing Conference in September 2013

➤ Competitive Interest Rates ➤ 5 – 7 – 10 year terms ➤ 25 year amortization ➤ No Prepayment Penalties ➤ SBA 7(a) and 504 Lender Act now while rates are at an all-time low! Call Tony 703.925.5105 (Tprice@REALTORSFCU.org), or Victoria 703.251.2190 (Vgillespie@REALTORSFCU.org) for more details.

Victoria Gillespie, VP, REALTORS ® Federal Credit Union Division

Tony Price, VP, SBA & Commercial Lending

Stop by and visit our booth at the NATIONAL ASSOCIATION OF REALTORS® REALTOR® Party Convention & Trade Expo in Washington, DC May 14 - 15, 2014

Member Care: 866.295.6038 www.REALTORSFCU.org The Credit Union is a proud partner in NAR’s REALTOR Benefits® Program.

(These were the highest producers in FY 13—based purely on number of loans. This information was captured from MRIS. Going forward, DHCD is capturing the information as part of the loan reservation system, so the data will break out franchises as well.)

Top Companies RE/MAX Long & Foster Keller Williams

Top Individual REALTORS® Sean Wilson, Bryan Mobley Real Estate Naji Rashid, First Advantage Real Estate Services Orlando Fernandez, Realty Executives— Premier Group

a number of years. This year’s recipients included first place winner First Home Mortgage Corp. Last year, DHCD launched similar recognition for real estate agents, naming RE/MAX REALTORS the agency of the year at the Governor’s Housing Conference in September. The Maryland Mortgage Program website also features expanded—and clearer—tools for lenders and realtors. “Maryland remains committed to the belief that remains an American Dream worth pursuing,” Secretary Skinner says. “Despite the fragility of the national housing market, homeownership over the long term builds equity and wealth and helps families create a legacy that they can pass on to their children.” For Secretary Skinner, when the Maryland Mortgage Program takes a giant step forward, homeowners do too. To learn more about the Maryland Mortgage Program visit the new website at http://mmp.maryland.gov./

MARYLAND REALTOR® APRIL 2014 / MAY 2014

www.mdrealtor.org

THE PENTHOUSES

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MAR Volunteers— We Want You! Building on the Strength of our Members Committee Year: 2014–2015 Our 2014–2015 Committee sign-ups online start STARTING APRIL 1 We have over 20 committees that need your support and talents, whether you’ve been in the business 30 years or 30 days, MAR needs YOU! VISIT MAR’S WEBSITE OR COPY THIS LINK INTO YOUR BROWSER TO LEARN MORE HOW YOU CAN GIVE BACK TO YOUR PROFESSION

http://www.mdrealtor.org/cvf SIGN UP—Please be sure to give us 2, but no more than 3 committees that you are interested in serving on, every attempt will be made to accommodate your request for at least one committee assignment (some committees may have specific member qualifications). COMPLETE AND SUBMIT—It’s that easy! You will be emailed an “Instant Confirmation” when your form is successfully submitted. DEADLINE—Monday, May 5, 2014 Reminder—All Current Committee Members Must Complete a Form Committee selections are prioritized by qualifications and date received. You will receive a letter confirming your committee appointment by August 22, 2014.

MARYLAND REALTOR® APRIL 2014 / MAY 2014

www.mdrealtor.org

Service Contractors

Mortgage Broker

Home Buyers

REALTOR® (COI)

Estate Attorney

CPA

Other Specialty REALTORS®

Community Interest

Becoming a Center of Influence Identify Your Current COIs Centers of influence (COIs) are both professionals and nonprofessionals whom others often seek out for advice, guidance and direction. REALTORS® are often advised that becoming a COI for a broad network of people should be part of their business plan. That takes demonstrated trustworthiness and expertise, but the effort is worth it. REALTOR® COIs are highly respected and influential, and trusted by buyers, sellers, investors, brokers, other REALTORS® and even entire communities.

www.mdrealtor.org

Customize Your Referral Network Most REALTORS® know the importance of identifying and networking within their “sphere of influence.” But it can be helpful to think beyond your own specialty in expanding that network. For example, creating ties with REALTOR® COIs who specialize in a niche areas different from your own can be part of extending your own sphere to areas where you may not have direct relationships. Look for: • types of property they specialize in, different from yours: luxury estates, farms, commercial, historic, etc.;

• types of clients they service: seniors, veterans, single moms, boaters, horse owners, and international investors. It is possible to have a Specialty Niche COI for each of these markets, or to be one yourself. Providing referrals or just swapping current market solutions with such Specialty Niche REALTOR® COIs is part of building your network. Creating resources that you can choose from for your clients’ needs will set you up for success to reap the long-term benefits and rewards. Your network of COIs will remember your generous acts and return the referral.

MARYLAND REALTOR® APRIL 2014 / MAY 2014

Cultivate Core COIs

Set Yourself Apart

Your objective should be to create relationships and situations that are win/wins for you and your COIs. Host networking events; schedule lunches; send thank you and greeting cards; and construct and distribute useful personalized home buying tools. Tap into the potential of all of your favorite contractors, mortgage brokers, CPAs, estate attorneys and fellow REALTORS®. Identify the top 50 COIs that you want as your core and send them a lunch or coffee invitation every month. Eventually the contact will be made and as a fellow COI the relationship will be mutually beneficial. Remember that introductions and/or referrals from a COI are a golden opportunity.

Ensuring that you don’t blend in with the pack can mean the difference between getting the referral and hearing about who did. As a REALTOR®, you are privy to intimate details about your clients’ needs and wants. Be there at the right time and make sure your reputation sends the message that you are dependable and trustworthy, and that you will be an enthusiastic, knowledgeable ally in their real estate activities. Building and maintaining your intricate referral network is a constant process. If you give first without expecting anything in return, you will reap long-term benefits and rewards. Your network

MARYLAND REALTOR® APRIL 2014 / MAY 2014

of COIs will remember you and will return the referral. Setting yourself apart from those that devote less effort to their clients and fall short of your extraordinary standards is essential to your continued success. Your goal should be to be the REALTOR® that everyone wants to have as an ally. Join us in the next issue as we focus our attention on Developing and Sustaining Your COI Network.

By Victoria Gillespie, M.B.A, Licensed MD REALTOR®, National Director & VP, Business Development, REALTORS® Federal Credit Union, and Jewel Codosea, M.A., Business Development Administrator, REALTORS® Federal Credit Union.

www.mdrealtor.org

i s n u g o A H c r i t a F

When Does a REALTOR® Use the Equal Opportunity Logo?

The Fair Housing Act itself does not require the use of Equal Opportunity logo or slogan, “Equal Housing Opportunity,” in any ad. However, using the logo regularly is good evidence of the company’s commitment to fair housing compliance. The equal housing opportunity logo is a picture of a small house with the words “equal housing opportunity” directly beneath it. The small house picture cannot be used without the words “equal housing opportunity” beneath it, but the words can be used without the small house picture.

According to HUD guidelines, all advertising of residential real estate for sale or rent should contain an equal housing opportunity logotype, statement, or slogan as a means of educating the home-seeking public that the property is available to all persons, regardless of race, color, religion, sex, handicap, familial status, or national origin. The choice of logotype, statement, or slogan will depend on the type of media used and, in space advertising, on the size of the advertisement.

Get the Equal Opportunity Logo: http://portal.hud.gov/hudportal/HUD?src=/library/bookshelf11/hudgraphics/fheologo

Add the Equal Housing Opportunity Statement to Your Business Plan: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin. Guidelines for Using the Equal Opportunity Logo (in all ads of four column inches or larger):

www.fairhousing.com/index.cfm?method=page.display&pagename=regs_fhr_109apx

Fair Housing Regulations Require the Display of the hud Fair Housing Poster at the Brokerage Office and at Dwellings Under Construction

Get the HUD Fair Housing Poster–Form HUD-928.1 (2/2003): www.hud.gov/offices/fheo/promotingfh/928-1.pdf Previous versions obsolete—information is current as of April 2014.

Protected Classes and Their Definitions* ( A pp l i c a b l e t o M a r y l and j u r isdi c t ions , F E BR U A RY 2 0 1 3 )

National

Local/Counties

Color: Pertaining to a person’s skin color

I n c l udes a l l fede r a l and s t a t e p r o t e c t ions l is t ed a b o v e P L U S :

Familial Status: Families in which one or more children under 18 lives with: a parent; a person who has legal custody of the child or children; or the designee of the parent or legal custodian, with the parent or custodian’s written permission. Familial status protection also applies to pregnant women and anyone securing legal custody of a child under 18. National Origin: Refers to country of birth. Physical or Mental Disability: In reference to you or someone close to you who: has a physical or mental disability (including hearing, mobility and visual impairments, chronic alcoholism, chronic mental illness, AIDS, AIDS-related Complex and mental retardation) that substantially limits one or more major life activities; has a record of such a disability; or is regarded as having such a disability. Race: Categories of physical characteristics and/or genetic groupings of human populations. Religion: Participation with one of the world’s structured religions; one’s spiritual beliefs; inference of religion by place of worship. Sex (i.e., gender): Male or female.

Maryland I n c l udes a l l fede r a l p r o t e c t ions l is t ed a b o v e P L U S : Marital Status: The state of being single, married, separated, divorced, or widowed. Sexual Orientation: The identification of an individual as to male or female homosexuality, heterosexuality, or bisexuality.

* For detailed legal references by County, go to: http://www.mdrealtor.org/Toolkits/ FairHousingResourceGuide/tabid/329/Default. aspx and download a copy of MAR’s Fair Housing Resource Guide.

Age: Generally referring to adults 18 yrs & over. Ancestry: Line of decent. Creed: A person’s beliefs; also, a summary of principals or opinions to which someone professes or adheres. Ethnic Origin: Cultural upbringing, including ceremonies and traditions. Family Responsibility: Refers to decisions based on an assumption of a person’s care giving responsibilities, either childcare or care of another family member. Gender Identity: An individual’s having or being perceived as having a gender-related self-identity, self-image, appearance, expression, or behavior whether or not those gender-related characteristics differ from those associated with the individual’s assigned sex at birth. Lawful Income: See below, ‘Source of Income’. Occupation: The principal lawful activity of one’s life, generally including students, welfare recipients and retired persons. Personal Appearance: The outward appearance of any person, irrespective of sex, with regard to hair style, facial hair, physical characteristics or manner of dress. Such term shall not relate to the requirement of cleanliness, uniforms or prescribed attire when uniformly applied for admittance to a public accommodation or to a class of employees for a customary or reasonable business. Political Opinion: The opinion of persons relating to government, the conduct of government, political parties, candidates for election or elected office-holders. Presence of Children: Households that include the temporary custody or permanent occupancy of persons under the age of 18 years. Source of Income: Any lawful source of money that is paid to or for the benefit of a renter or buyer of housing and includes grants, government assistance, alimony, child support, pensions, annuities, legal gifts, or investment earnings.

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Maryland REALTORS® Promote Fair Housing *Use of a Guide Dog

i s n u g o A H c r i t a F

How Do You Recognize

Housing Discrimination? Under the Fair Housing Act, It is Against the Law to: ● Refuse to rent to you or sell you housing ● Tell you housing is unavailable when in fact it is available ● Show you apartments or homes only in certain neighborhoods ● Set different terms, conditions, or privileges for sale or rental of a dwelling ● Provide different housing services or facilities ● Advertise housing to preferred groups of people only ● Refuse to provide you with information regarding mortgage loans, deny you a mortgage loan, or impose different terms or conditions on a mortgage loan ● Deny you property insurance ● Conduct property appraisals in a discriminatory manner ● Refuse to make reasonable accommodations for persons with a disability if the accommodation may be necessary to afford such person a reasonable and equal opportunity to use and enjoy a dwelling. ● Fail to design and construct housing in an accessible manner ● Harass, coerce, intimidate, or interfere with anyone exercising or assisting someone else with his/her fair housing rights Top Ten Fair Housing Mistakes—Don’t miss this fun ‘infographic’! http://learn.gracehill.com/rs/gracehill/images/Top_10_Fair_Housing_Mistakes_Int.pdf

Here’s more detail about Fair Housing mistakes: http://www.gracehill.com/creative/fhmistakes.pdf

Pod casts on Fair Housing for your sales meetings: www.gracehill.com/onair Episodes 4 and 6

Try this quiz: http://www.propertymanagementinsider.com/how-much-do-you-know-about-fair-housinginfographic.html

Fair Housing Poetry “Slam”—Poems of Justice and Equity (release date April 14, 2014) http://www.nationalfairhousing.org/

If You Believe Your Rights Have Been Violated...

View the complete guide to “Are You a Victim of Housing Discrimination?” http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_12150.pdf

Previous versions obsolete—information is current as of April 2014.

MAR s d r a w A

Call for Entries

MAR takes great pride in awarding industry honors to outstanding REALTORS®. The awards are presented during the Annual Conference in Ocean City, September 8–10. Recognition is a positive reward for a job well done. It is vital that we honor those individuals who have given outstanding service to the real estate industry and the Local Associations. ★★★★ To qualify, complete applications, or to learn more about each award, please visit: www.mdrealtor.org. All forms may be completed and submitted online to MAR. The MAR Community Service Award—honors individual REALTOR® members who give unselfishly of their time to assist the communities in which they live. Individuals can submit an application directly to MAR and there is no limit to the number of entries submitted by local Associations or firms for this award. All nominees submitted to local Associations must be submitted to MAR. DEADLINE: JUNE 27, 2014 The Community Action and REALTOR® Excellence (CARE) Award—is given to Local Associations in recognition of their community service and charitable actions. The award is designed to raise the profile of REALTORS® and the REALTOR® organization by focusing on Associations that have demonstrated an extraordinary record through direct local Association community service involvement. The activities complied by the Association may include endeavors by REALTORS® who are part of a group, team, office, or an individual of that local Association. Submissions are made by MAR local Associations. MAR will conduct a survey among its members for their charitable endeavors and forward the aggregate data of those members to their local Associations for possible use in the submissions. www.mdrealtor.org

The recipients will receive the following cash contribution to the charity of their choice: Large Association—$8,000; Small Association—$8,000; The “Special Project” award, which may be considered as the Honorable Mention—$2,000. DEADLINE: JUNE 27, 2014 The REALTOR® of the Year (ROTY) Award—One ROTY application is required to be submitted by each local Association to be entered in the MAR competition. The winner of the state award will travel to National Association of REALTORS® (NAR) Annual Convention for consideration in the national award. This award is submitted directly to your local association for consideration. DEADLINE: CONTACT YOUR LOCAL ASSOCIATION. If you have comments or questions, please contact Jermaine Hawkins, MAR Communications Department at 800.638.6425 ext. 3573; jermaine.hawkins@mdrealtor.org.

MARYLAND REALTOR® APRIL 2014 / MAY 2014

2015 Annual

Fair Housing Poster Contest “The Key to Fair Housing is Cultural Diversity”

ach year, members of the Maryland Association of REALTORS® (MAR) Equal Opportunity/ Cultural Diversity Committee partner with local schools and organizations to encourage and promote understanding of equal opportunity in housing through a Poster Contest. The theme for this year’s poster drawings is “The Key to Fair Housing is Cultural Diversity.” Winners, whose artwork appears on a calendar that MAR distributes statewide, are chosen from entries submitted by MAR’s local associations. Thirteen winners were chosen, including one to appear on the calendar cover. Students from all over the state in grades K-8 are eligible to participate. They are asked to illustrate the theme and what it means to them. Winners are awarded certificates and a gift card co-sponsored by BB&T Bank. Winners, their family members, faculty, REALTORS® and dignitaries

Mariclare Anderson Seton Home Study School Pen-Mar Regional Association • 6th Grade

MARYLAND REALTOR® APRIL 2014 / MAY 2014

will be invited to attend a recognition ceremony at the Maryland Statehouse. Governor Martin O’Malley has been invited to present the students with their certificates. This April marks the 46th anniversary of the enactment of the federal Fair Housing Law, Title VII of the Civil Rights Act of 1968, prohibiting discrimination on the basis of race, color, creed, national origin, sex, familial status, and handicap and encourages fair housing opportunities for all. The calendar poster contest is a visible way for Maryland REALTORS® to express their professional commitment to Fair Housing. It has become popular with schools and communities as well as the real estate profession as a highly effective way to raise public awareness of the laws prohibiting housing discrimination, and REALTOR® support for the law, which celebrates our commitment to making housing available to all. More than 10,000 free calendars are distributed statewide and nationally to promote the principles of Fair Housing.

Grace Baeurle Worcester Preparatory School Coastal Association • 4th Grade

Ruth Bridgers Highland Park Elementary School Prince George’s County Association • 3rd Grade

www.mdrealtor.org

Joshua Cherry Talbot County 4-H Club Mid-Shore Board • 6th Grade

Lily Mae Norris Middletown Middle School Frederick County Association • 7th Grade

Elizabeth Rochabrand Gaithersburg Middle School Greater Capital Area Association • 8th Grade

Gabriella Kuper Mountain Christian School Harford County Association • 7th Grade

Alynn Ellis North East Elementary School Cecil County Board • 4th Grade

Erika Quenano St. Mary’s School Southern Maryland Association • 4th Grade

Isabella Sherwood Germantown Elementary School Anne Arundel Association • Kindergarten

Joshua Richter Broad Ford Elementary Garrett County Board • 4th Grade

Samantha Smith West Middle School Carroll County Association • 6th Grade

Calendar Contributions Join your colleagues by giving a contribution to help defray the 2015 calendar production costs. Your name and company will appear on the “contributor” recognition page of the calendar. Over 10,000 calendars will be distributed with all contributors receiving calendars. William Zimmerman Harper’s Choice Middle School Howard County Association • 7th Grade

www.mdrealtor.org

To download the Contribution Form: http://www.mdrealtor.org/LinkClick. aspx?fileticket=IxgecEb0iWQ%3d&tabid=341&portalid=0

MARYLAND REALTOR® APRIL 2014 / MAY 2014

Regulation News

MARK FEINROTH

Property Management Legislation Pending

egislation introduced by Delegates Nancy Stocksdale (R-Carroll) and Pam Beidle (D-Anne Arundel) would require the registration of residential property managers, who would be required to carry fidelity insurance protecting property owners from losses due to fraud or dishonesty. The Real Estate Commission would administer the law. The bill, HB 1471, was filed late in the General Assembly and at this writing is not guaranteed a committee hearing. A registration mechanism proposal was a topic of discussion at MREC meetings earlier this year, as a first step on the path to licensing residential property managers. No one really knows how many residential property managers there are and there is no record of consumer complaints against property managers who are not real estate licensees. The proposed legislation would allow the Commission to determine the approximate number of property managers who are not real estate licensees, and offer an improvement in consumer protection due to the insurance requirement ($100,000 for a manager of fewer than five properties, and $300,000 for management of five or more properties). The insurance requirement is an important component of the legislation, because the Real Estate Commission’s recent claims experience involving licensed real estate agents acting as property managers included allegations of theft or diversion of funds held by the licensee on behalf of a property owner client. Residential property management services is defined in the bill as acting with the authority of the rental property owner in business, legal, financial or other transactions involving residents of a rental property. The actions covered as residential property management include the

MARYLAND REALTOR® APRIL 2014 / MAY 2014

negotiation of contracts or coordination of services for a rental property owner, collection and or disbursement of money or other property. Under the bill, applicants for a rental property manager registration would be required to ensure that each employee of the applicant must be of character and reputation, at least 18 years old and a high school graduate or hold an equivalent certification. The legislation also authorizes the Real Estate Commission to adopt regulations to ensure that employees of any registrant are “professionally competent and of good character and reputation.” HB 1471 faces an uncertain path. The proposal was introduced after the House of Delegates “Bill Introduction Date” and was therefore referred first to the Rules Committee. Should the Rules Committee release the bill, the House Economic Matters Committee will most likely have jurisdiction. The Real Estate Commission could seek Departmental authority to support the legislation if a hearing is scheduled. The MAR Legislative committee recommended support with several clarifying amendments to ensure that licensed real estate agents and brokers are not required to also register as property managers.

Please feel free to contact me if you have questions or concerns either about the legislation or about other Real Estate Commission issues. I can be reached by email at mfeinroth@mdrealtor.org.

Mark Feinroth, Esquire, MAR Director of Regulatory Affairs.

www.mdrealtor.org

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Residential Sales

A N I R B A N B A SU

Let There Be Spring

he local housing industry continued to enjoy rising momentum through mid-2013. Motived by the combination of a recovering economy, stabilizing prices, easing credit conditions and ultralow interest rates, households flocked back into the housing market. But mortgage rates surged higher during the summer when the Federal Reserve began discussing the possibility of tapering its bond purchasing programs. While still low by historic standards, the 15-year and 30-year fixed mortgage rates were no longer at record lows by the fall. Some families may have embraced a wait-and-see attitude at that point, hoping to see interest rates come back down. They really haven’t, but at least they’ve remained stable. Federal Reserve policy decisions are not the only reasons for somewhat higher mortgage rates. A federal government shutdown in October produced a chilling effect on the market. The shutdown had a direct financial impact on many households, particularly those who work directly for the federal government or indirectly as contractors of the federal government. Surging numbers of distressed properties bouncing onto the market also had an impact on housing market dynamics. As if that wasn’t enough, a seemingly endless winter descended upon Maryland, suppressing momentum even further. Maryland’s circumstances are hardly unique. Nationally, total existing home sales in January declined 5.1 percent to their lowest level in a year and a half. Sales declined to a seasonally adjusted annual rate of 4.62 million units, down from 4.87 million units one-year prior. Of course, limited supplies of available

MARYLAND REALTOR® APRIL 2014 / MAY 2014

inventory affect sales volumes both locally and in many other markets. The limited supply helps explain the ongoing increase in home prices, something that is critical to housing market dynamics going forward. The national median existing home price for all housing types was $188,900 in January, up 10.7 percent from January 2013. Rising prices are a principal reason for optimism regarding the spring selling season. The investment motivation, which many took for granted until a few years ago, has returned to the housing market. Homeownership is again a manner by which to generate wealth. Rising home prices signal to household decision-makers that not owning a home, or owning one that is not sufficiently ambitious, is associated with significant opportunity cost. In other words, opportunities to build wealth are being forfeited. Rising home prices represent a source of inspiration to engage the marketplace for both firsttime and move-up homebuyers. While the outlook is positive, recent data in Maryland has not been particularly upbeat. Unit sales were up only 1.1 percent on a year-over-year basis in January and were down 0.2 percent in February. According to data supplied by MRIS and the Coastal Association of REALTORS®, 16 of Maryland’s 24 jurisdictions experienced unit sales increases on a year-over-year basis in January, but in February, this number slid to 13. In January, unit sales were down by more than 18 percent in Harford County and by nearly 16 percent in Prince George’s County. That said, there was some good news, with a significant number of Eastern Shore jurisdictions recording solid unit sales increases, www.mdrealtor.org

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Support – Weichert® University is available, on demand, offering hundreds of courses to fit your schedule. These are supplemented with webinars, live training, and skill sessions, to keep you out front. If you are committed to making this your best year yet in real estate, tap into Weichert. Our offices continue to look for outstanding sales associates who have the drive to be the best. Call your local Weichert office today or 800-301-3000. We’d be glad to explain all Weichert can do to move you forward.

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The Way Forward Information about Weichert franchises is available on www.weichertfranchise.com or by calling 800-533-9007. *Experian Hitwise Most Popular “Websites in Business and Finance – Real Estate” ranked by view share, 8/13. ©2014 Weichert, Realtors®. Weichert® is a federally registered trademark owned by Weichert Co. All other trademarks are the property of their respective owners. REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is a Member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics. Each WEICHERT® franchised office is independently owned and operated. This advertisement is not an offering. An offering can only be made through a Uniform Franchise Offering Circular and in states where authorized. In New York State, an offering can only be made by a prospectus filed first with the Department of Law of the State of New York. Such filing does not constitute approval by the Department of Law. If you are presently under contract with a real estate franchise, please disregard this solicitation. OUR ADVERTISEMENT HAS NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA DEPARTMENT OF CORPORATIONS. ANY COMPLAINTS CONCERNING THE CONTENT OF THIS ADVERTISEMENT MAY BE DIRECTED TO THE CALIFORNIA DEPARTMENT OF CORPORATIONS at www.corp.ca.gov.

January 2014 vs. 2013 Units

Average Price

County

2014

2013

% Change

2014

2013

% Change

Allegany

4.2%

$83,256

$96,399

-13.6%

Anne Arundel

312

339

-8.0%

$351,365

$315,991

11.2%

Baltimore City

410

371

10.5%

$132,331

$131,137

0.9%

Baltimore County

417

421

-1.0%

$232,655

$227,311

2.4%

Calvert

5.7%

$288,782

$271,771

6.3%

Caroline

81.3%

$145,241

$141,238

2.8%

Carroll

-8.0%

$284,657

$284,001

0.2%

Cecil

10.9%

$263,188

$206,906

27.2%

Charles

101

8.6%

$250,485

$214,905

16.6%

Dorchester

5.3%

$176,247

$157,816

11.7%

Frederick

159

165

-3.6%

$260,630

$264,552

-1.5%

Garrett

44.4%

$381,981

$264,761

44.3%

Harford

121

148

-18.2%

$232,753

$237,875

-2.2%

Howard

167

171

-2.3%

$379,507

$379,165

0.1%

Kent

44.4%

$202,346

$136,511

48.2%

Montgomery

578

521

10.9%

$474,158

$451,677

5.0%

Prince George’s

482

573

-15.9%

$210,672

$183,837

14.6%

Queen Anne’s

36.0%

$372,156

$294,655

26.3%

Somerset

20.0%

$155,583

$153,830

1.1%

St. Mary’s

3.0%

$273,260

$257,069

6.3%

Talbot

47.8%

$512,666

$430,096

19.2%

Washington

39.4%

$158,165

$142,154

11.3%

Wicomico

40.8%

$145,329

$154,947

-6.2%

Worcester

-8.8%

$253,736

$250,209

1.4%

TOTAL 3,443

3,407

1.1%

$281,147

$262,740

7.0%

Figures reflect resales and new properties. Residential resales are reported by MRIS® and local boards MLS systems.

MARYLAND REALTOR® APRIL 2014 / MAY 2014

Sales prices in Maryland rose in January and February on a year-over-year basis.

including Wicomico County (43%) and Caroline County (20%). Unit sales in Garrett County were up 44 percent in January on a year-over-year basis, possibly suggesting that the market for second homes or investment properties is experiencing accelerated activity. However, sales volume declined in Garrett County in February, with the same pattern observed in Worcester County, which are Maryland’s most important second homes markets. Consistent with national dynamics, both average and median sales prices in Maryland rose in January and February on a year-over-year basis. In January, average statewide sales price rose 7.0 percent while median price rose 5.5 percent, with 20 jurisdictions recording higher average sales price and 16 reporting higher median prices. Prices exhibited more momentum in February, with average sales price up 7.2 percent on a year ago basis and median price up 7.7 percent. Fifteen jurisdictions generated both higher average and median sales prices, including Kent County where average price surged 92 percent and median price rose 86 percent. In Cecil County, both average and median price rose 25 percent. Price dynamics were also positive in most

www.mdrealtor.org

large jurisdictions, including in Baltimore City where average price rose 15 percent on a year-over-year basis in February, in Montgomery County (13%), Prince George’s County (16%), Baltimore County (5%) and Howard County (3%).

February 2014 vs. 2013 Units

Average Price

County

2014

2013

% Change

20143

2013

Allegany

11.5%

$84,168

$106,569

-21.0%

Looking Ahead

Anne Arundel

372

324

14.8%

$341,397

$340,861

0.2%

For the most part, the prescription is in place for a solid spring selling season. Mortgage rates are low and stable, prices have been rising, job creation is reasonably solid and temperatures will rise. The first-time homebuyer market stands to be particularly active because today’s apartment dwellers are more likely to consider homeownership as a viable option than in prior years when sales prices were falling. Rising apartment rents serve as another inducement to consider a home purchase.

Baltimore City

371

358

3.6%

$154,097

$134,007

15.0%

Baltimore County

421

422

-0.2%

$231,777

$220,935

4.9%

Calvert

34.0%

$279,168

$306,672

-9.0%

Caroline

20.0%

$122,733

$146,917

-16.5%

Carroll

1.2%

$279,387

$279,613

-0.1%

Cecil

2.2%

$269,855

$169,166

59.5%

Charles

112

-24.1%

$252,354

$227,793

10.8%

Dorchester

-9.1%

$174,363

$153,036

13.9%

Frederick

168

166

1.2%

$287,548

$270,622

6.3%

Garrett

-25.0%

$314,198

$245,389

28.0%

Harford

124

117

6.0%

$240,656

$256,670

-6.2%

Howard

164

146

12.3%

$386,952

$376,976

2.6%

Kent

-41.7%

$339,900

$177,042

92.0%

Montgomery

542

558

-2.9%

$475,159

$421,393

12.8%

Prince George’s

474

542

-12.5%

$217,140

$188,017

15.5%

Queen Anne’s

-26.3%

$361,686

$378,843

-4.5%

Somerset

-46.2%

$95,945

$122,727

-21.8%

St. Mary’s

-21.8%

$248,937

$268,965

-7.4%

Talbot

12.5%

$382,977

$358,461

6.8%

Washington

21.3%

$169,650

$169,644

0.0%

Wicomico

42.9%

$128,701

$132,891

-3.2%

Worcester

-1.1%

$233,817

$265,256

-11.9%

TOTAL 3,363

3,371

-0.2%

$283,998

$264,979

7.2%

The move-up market is a bit more difficult to predict. While these buyers also benefits from low stable mortgage rates, rising prices and job growth, other factors are at work. First, as almost everyone knows, many neighborhoods are characterized by a dearth of inventory. Second, the winter was not only a source of discomfort, but also of major expense. Households have been induced to spend large sums of money on natural gas, propane, heating oil and electricity. This experience may cause some decision-makers to at least postpone the purchase of a larger, more expensive home. Finally, there is the phenomenon that one might refer to as “refinancing stickiness.” This is really an example of the tail wagging the dog. There are likely many households that would like a new address, but who are sitting on refinanced, ultra-low interest rate mortgages. Some decision-makers may choose to remain with their current mortgage and home rather than move to a more desirable residence that would be associated with a somewhat higher mortgage rate.

% Change

Figures reflect resales and new properties. Residential resales are reported by MRIS® and local boards MLS systems.

Anirban Basu, Chairman & CEO, Sage Policy Group, Inc. www.mdrealtor.org

MARYLAND REALTOR® APRIL 2014 / MAY 2014

Ask us...

How our clients receive an average of $4,074 in savings* on their home purchase when they use a Prudential PenFed Realty agent and Prudential PenFed Realty’s affiliates. It didn’t come from the commission. Career@PenFedRealty.com

Ranked Highest Overall Satisfaction † For First-Time and Repeat Home Buyers and First-Time Home Sellers among National Full Service Real Estate Firms. Regional Vice Presidents: Terri Bracciale, terri.bracciale@penfedrealty.com | Donna Buchman, donna.buchman@penfedrealty.com *Savings are based on the discounts received by PenFed Realty’s clients for using PenFed Realty’s mortgage and title affiliates as compared to purchasing the settlement services from PenFed Realty’s mortgage and title affiliates without retaining the services of PenFed Realty. † Prudential Real Estate received the highest numerical score among full-service real estate firms for first-time and repeat home buyers and first-time home sellers in the proprietary J.D. Power 2013 Home Buyer/Seller Study. SM Study based on 4,371 total evaluations measuring 5 firms and measures opinions of individuals who have sold a home in the last 12 months. Proprietary study results are based on experiences and perceptions of consumers surveyed April-June 2013. Your experiences may vary. Visit jdpower.com. © 2014 BRER Affiliates, LLC. An independently owned and operated broker member of BRER Affiliates, LLC. Prudential,the Prudential logo and the Rock symbol are registered service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. Used under license with no other affiliation with Prudential. Equal Housing Opportunity. Prudential PenFed Realty is an independently owned and operated member of BRER Affiliates, LLC. PenFed Membership is not required to conduct business with Prudential PenFed Realty. We are proud to be an equal employment opportunity employer: m/f/v/d.

Are You Ready to “Spring” into Action? Increase Your Productivity with New MRIS Tools Spring is finally here, and the housing market is heating up! MRIS has introduced several new tools and product enhancements that help you save time, make more money and increase your productivity. We’ve compiled a list of some of the newest MRIS products that are included in your MRIS subscription.

MRIS Marketing Center (Powered by Imprev)

MRIShomes™ Mobile App

Marketing yourself and your listings has never been easier! With the MRIS Marketing Center you can create stunning marketing materials quickly using your own high quality photos or listing photos imported directly from Keystone. As part of your MRIS subscription, you have access to 20 attractive designs and four drip email campaigns. Visit MRIS. com/MarketingCenter to learn more about this timesaving product.

The MRIShomes™ Mobile App now has the ability to update your listings right from a mobile device! You are able to make the most common listing changes such as price, status, expiration date and public remarks for your listings right from the app itself. Many other customer suggestions have been implemented as well, so if you haven’t seen or used the app in a while, now is a great time to get reacquainted. Visit MRIS.com/Mobile or text the word MRIS to 87778 to get the app.

ShowingTime for the MLS ShowingTime for the MLS allows real estate professionals to share and access showing information from Keystone, Matrix, and the MRIShomes™ mobile app in real time. This makes it easier to get showings by giving other agents 24/7 access to request showings online. Use of ShowingTime is optional, meaning that listing agents can choose to turn on ShowingTime for their listings. Even if a listing agent turns on ShowingTime for his or her listings, the showing instruction fields will remain on Matrix displays and reports. Visit MRIS.com/ShowingTime to learn how to simplify your showings.

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Learn More to Earn More One of the best ways to stay current with MRIS news, product sneak peeks and exclusive promotions and events is to interact with us on our social media channels. Visit us at MRISblog.com, like MRIS on Facebook, and follow @MRIS_REal_News on Twitter to keep in touch with MRIS. You can also sign up for free training on all the MRIS products at MRIS.com/ Training or watch videos at mrisTV.com.

MARYLAND REALTOR® APRIL 2014 / MAY 2014

Commercial Connection

D e n i s e D o u gla s

Environmental Clauses: Often Overlooked

n terms of environmental concerns, it is just common sense that some businesses should not be located next to other businesses. Similarly, logic dictates that business owners should exercise caution if purchasing or leasing a location where toxic chemicals had been previously used. But how many business owners would think that environmental hazards of a neighboring nail salon, for example, might sink their business? In commercial leases or purchases, environmental clauses should not be overlooked. The terms of those clauses could end up being as crucial as any other material term. I was recently informed by the owner of a local tailor shop that she was getting vapors from the nail salon next to her. She said that the vapors were so bad that she felt sick and had to keep the door open for ventilation. The property management company eventually had an HVAC company assess her heating and air conditioning system, but because of the age of the building and the fact that drywall had been installed over the duct work, the HVAC company could not determine whether each unit in the building had a separate duct system. To date, the tailor’s issue continues. One can easily see how this could not only affect her health and the health of her employees but could also have an effect on her business. An article written by the firm Fizer, Beck, Webster, Bentley & Scroggins, “Key Lease Terms To Consider

How many business owners would think that environmental hazards of a neighboring nail salon, for example, might sink their business? 32

MARYLAND REALTOR® APRIL 2014 / MAY 2014

When Representing The Tenant In A Commercial Lease Transaction,” notes that with respect to environmental clauses, “most lease forms deal only with tenant compliance, but ignore the landlord’s obligations.” The authors recommend that, “[f ]rom the tenant’s perspective, you should try to avoid environmental indemnities that may require the tenant to be responsible for pre-existing conditions or problems caused by other or former tenants. ” In “A Tenant’s Perspective on Commercial Leases: The Lease,” author Roger E. Holland says, ”[t]he tenant could even be held liable for such damage caused by third parties. For these reasons, environmental clauses need to be closely reviewed. A tenant should ensure that it can only be responsible for contamination caused during the term of its tenancy and fixturing period through its own negligence or wilful acts (or those of its invitees, employees, contractors or agents).” He adds that “[i]f there is a concern about pre-existing contamination on the premises, tenants can, in some instances, insist on a right to obtain an environmental audit or report.” The lesson here is that business owners need to pay attention to environmental clauses when negotiating purchase and lease agreements to protect their business and minimize their risk of unwanted liabilities. It could be end up being a crucial element in determining their success or failure.

Denise Douglas, BML Properties Realty LLC in association with Commercial Real Estate Advocates, Inc. A CCIM Candidate and Member of MAR Commercial Committee www.mdrealtor.org

From the Hotline

Charl e s A K a s ky , E s q u ir e

RESPA and Advertising Q.

I am considering a joint advertising arrangement with a title company, in which we would enter into a marketing services agreement. I’ve been told that there are potential problems with RESPA with these kind of arrangements, but I’ve seen other agents do this. Can you provide some guidance?

Violations of the Real Estate Settlement Procedures Act (RESPA) can carry serious consequences, so if you have questions or concerns about marketing service agreements (MSAs), we encourage you to seek additional resources and obtain legal advice. RESPA does not prevent joint advertising between two settlement service providers, such as a mortgage banker or title company and a real estate licensee advertising their services on the same brochure or newspaper ad. However, each advertising party must pay for his share on a proportionate basis.

If a real estate broker shares equal ad space with a title company, each party must pay 50 percent of the ad cost. Paying more than the pro-rata share can be considered by the Department of Housing and Urban Development (HUD) as “accepting a thing of value” for the referral of business, a violation of RESPA’s Section 8 anti-kickback provision. RESPA does provide an exception to Section 8 relating to payments for marketing and advertising. The rules exempts: …[N]ormal promotional and educational activities that are not conditioned on the referral of business and that do not involve the defraying of expenses that otherwise would be incurred by persons in a position to refer settlement services or business incident thereto. Under this exemption, for example, a title company may provide a real estate agent with note pads and pens with the title company’s name, as long as these are normal promotional items. However, it is a RESPA violation if the title company provides a real estate agent with note

MARYLAND REALTOR® APRIL 2014 / MAY 2014

pads and pens with the real estate agent’s name on the products for marketing realty services to clients. This is because the promotional items with the agent’s name on them can be considered a thing of value for the referral of business, as it offsets the agent’s marketing expenses. HUD has pointed out a few other red flags to avoid. It cites direct consumer solicitation, a transactional fee paid on a per-deal basis, direct receipt and transmission of consumer information, and exclusivity between the parties. MSAs employ two basic types of fee arrangements: A fixed-fee and a transactional, or per-deal, fee. The fixed fee involves fewer compliance risks. You should be very careful, or even avoid, transactional fee situations. When using marketing services agreements, be sure the agreement clearly spells out what the parties are going to do and is structured on a fixed-fee basis related to the value provided. Also ensure that the relationship is disclosed to the consumer. Marketing agreements can cover such things as: • promoting loan or title products through publications • placing the lender or title agent’s banner on the your website • displaying the lender or title agent’s sign in the real estate office and at open houses • handing out brochures • providing a list of individuals who have visited open houses or signed listing agreements or sales contracts • permitting limited use of the brokerage’s logo to identify the company as the preferred vendor • permitting the lender or title agent to make presentations to the real estate sales staff • providing office space and facilities Don’t try to structure a marketing agreement on your own. Proceed only with the guidance of an attorney familiar with RESPA. Charles A Kasky, Esquire, Senior Vice President, Maryland Association of REALTORS®. www.mdrealtor.org

Maryland Real Estate Commission News

K ath e ri n e F. C o n n e lly

Pat Hannon: A Trusted Colleague Retires

t is with mixed emotions that I announce the retirement of one of the Real Estate Commission’s finest and longest serving employees. After 33 years of service to the real estate industry, Patricia Hannon, better known to her colleagues and Maryland education directors as Pat, has decided to take some time for herself to pursue other interests.

Pat reviewed and approved all out of state licensees who applied to sit for the Maryland real estate license examination. Although we didn’t keep count, I am confident that she handled thousands of these requests. Similarly, we called on Pat to take the lead in implementing the license Reciprocity Agreement that we have with Pennsylvania.

Pat was the Real Estate Commission’s Assistant Director when I was hired as the Executive Director in April of 2006. She was invaluable to me as I adapted to public employment and learned my new job. She was fluent in Title 17, the Real Estate Brokers Act, and the related COMAR regulations. She also had a thorough knowledge of the Department of Labor, Licensing and Regulation, the umbrella agency where the Real Estate Commission is housed. Pat made my transition from private industry to public service as smooth as possible. After the Commission became special funded in 2007, we expanded our staff and Pat focused her energies on the position of Education Administrator. In that capacity, she devoted the majority of her time to ensuring that real estate schools complied with Maryland laws and regulations. Pat made sure that the schools provided approved continuing education classes with appropriate content and effective instructors. Under Pat’s leadership, education in the real estate industry moved to a higher level.

MARYLAND REALTOR® APRIL 2014 / MAY 2014

In addition to the education and out of state license duties, Pat also was the Commission’s Secretary. She scheduled all Commission meetings, took the minutes and assisted me in making sure that Commission’s meeting agenda was complete. Pat also posted the approved meeting minutes to the Commission’s website and updated the Maryland Register.

Patricia Hannon

To say that Pat will be missed is an understatement. All of us at the Commission would love to continue working with her. On the other hand, we are excited that Pat will have the opportunity to explore all her interests. She is active in a number of charitable organizations and donates much of her time to help those less fortunate. Pat, THANK YOU. It has been a real pleasure working with you. We will miss you. Best wishes from all of us at the Real Estate Commission.

Katherine Connelly is the Executive Director of the Maryland Real Estate Commission. If you have other questions regarding the digital CE record system or any other matter concerning your Maryland real estate license at contact her at kconnelly@dllr.state.md.us or visit http://www.dllr.state.md.us/ license/mrec. www.mdrealtor.org

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