VOLUME XLVIII Number 5 / AUGUST 2014 / SEPTEMBER 2014
2014 Annual CONFERENCE & Expo September 8–10 Ocean City, Maryland
mdrealtor.org / marylandhomeownership.com
6 JaniceKirkner
2015 President, Maryland Association of REALTORS®
13
2014 Commercial Symposium
14
Meet the Staff
The Maryland Association of REALTORS® The Voice For Real Estate® In Maryland
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President’s Perspective
Russ Boyce
A Busy Summer Greetings MAR REALTOR® family!
T
his month we feature articles with practical applications for your business:
• The new Maryland Home Credit program that allows buyers to take a federal income tax deduction for the entire life of a mortgage loan; • Tips from Realtors Federal Credit Union (RFCU) on creative ways to stay in contact with your Core Center of Influence; and • Consulting economist Anirban Basu’s analysis of our changing market place and home inventories for the rest of the summer. We will be coming together in Ocean City in September for our Annual Conference & EXPO. See page 9 for the course lineup and how to register. I want to recognize our Sponsors, whose support this year is outstanding. Come see the results: extraordinary speaker lineup, our most exciting Expo ever and a great registration giveaway.
www.mdrealtor.org
Please take time to meet our staff (page 14). You can connect faces with names or voices that you may only know from an email or phone call. They keep our Association office running smoothly, and none of us could do our jobs without them. I am always amazed at how hard the staff at MAR work on YOUR behalf in every aspect of the real estate business. This issue introduces our incoming President, Janice Kirkner. Janice is an outstanding leader and has become a good friend to me and the entire membership. She brings 35 years of experience and dedication to this wonderful profession of ours and I’ve been fortunate to have her serve on my leadership team this past year. Janice will be installed with the other Officers during the Annual Conference in Ocean City. You can get your ticket for the Installation when you register for the Conference.
This is my final President’s Perspective. Thank you for your support and actions taken over this past year to help us make MAR even better. We have accomplished many great things for our industry together this year. When I was installed, I spoke of the 212 metaphor of going the extra degree and the importance of improving our lives. You have shown your willingness to do that, with your response for our Calls for Action, one of the highest in the country, your support of RPAC, and your commitment to professionalism. I hope you’ve found it helpful in your business and personal lives as well. If you have any 212 stories of how the One Degree made a difference in your life, please share them with me via email, russboyce212@gmail.com call or text at 301-938-8805. I wish each of you a good health, prosperity and an outstanding 4th quarter! With sincere gratitude & respect, Russ Boyce President, Maryland Association of REALTORS®
MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
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TABLE O F C O NTENT S
Features
janice Kirkner 2015 President Maryland Association of Realtors
6
2014 Annual CONFERENCE & EXPO
9
2014 Commercial Symposium
13
Meet the Staff
14
9
2014 Annual CONFERENCE & EXPO
Webinar 24
Specific Strategies for Enhancing COI Relationships
26
Tell Your Clients: A Mortgage With a Federal Tax Credit
30
Departments
President’s Perspective
Residential Sales This Summer Looks a Lot Like Last Summer in Maryland
1
34
MRIS Your Ideas in Action 38
13
2014 Commercial Symposium
2
26
Specific Strategies for Enhancing COI Relationships
MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
30
Tell Your Clients: A Mortgage With a Federal Tax Credit
from the hotline Won’t You be My Agent? 40
Commercial Connection Leasing Space to the Federal Government Just Got a Lot Easier 42
Maryland Real Estate Commission News
43
REGULATION NEWS Short Sale Auctions and Contractor Licensing Regulation
44
www.mdrealtor.org
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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
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
J Russell “Russ” Boyce | President Janice R Kirkner | President Elect Carole A Maclure | Treasurer Bonnie Casper | Secretary Carlton J Boujai Jr | Immediate Past President Mary C Antoun | Chief Executive Officer
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
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MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 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
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janice
Kirkner
2015 President Maryland Association of Realtors® 6
MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
www.mdrealtor.org
Thirty-five years ago, an amiable REALTOR® found Janice Kirkner a wonderful home and her future career. Kirkner, a Maryland native, was planning to re-enter the workforce when her youngest daughter went to school. She remembered the pleasant experience she and her husband, Bob, had had buying their Carroll County home. She called the agent who had been their guide and found a career.
O
riginally, Kirkner planned to work part-time, but she soon found that the rewards of finding someone that perfect home were irresistible. She also loved that real estate allowed her to run her own business, but still be available for her family. Early in her career, Kirkner became involved with the Carroll County Association of REALTORS®. Volunteering had always been part of her life—first with her daughter’s Girl Scout troop and later with Carroll Hospice and numerous other community service activities. Giving back to the industry she loves was an easy decision. Janice Kirkner started by volunteering on a committee, then becoming a board member and eventually president. It was while
www.mdrealtor.org
she was president-elect of the Carroll County Association that she started volunteering at the state level. Her service at MAR includes extensive committee membership as well as chairing several committees, most recently Strategic Planning.
It’s hard to believe she has any free time, but when she does, she enjoys weekends at the beach with Bob, her daughters and their families. The Kirkner’s have four grandchildren and she enjoys the occasional game of golf with the oldest.
Kirkner is still active with the Carroll County Association, as well as the National Association of REALTORS®, where she has served on several committees and will be a member of the Board of Directors next year. In addition to her extensive community service, she is a member of the Frederick Chapter of the Women’s Council of REALTORS®, holds the Certified Residential Specialist (CRS) and Graduate of REALTORS® Institute (GRI) designations, and is a graduate of the Greater Baltimore Board of REALTORS® Leadership Academy. Last year, Kirkner was selected MAR’s 2013 REALTOR® of the Year.
As president of the Maryland Association of REALTORS®, Janice Kirkner doesn’t plan to reinvent any wheels. “I just want to keep them all turning,” she says. Kirkner acknowledges the leadership of her predecessors and plans to continue some of their initiatives, particularly in the areas of professionalism and communication.
MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
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“We should always treat our fellow REALTORS® well,” she says regarding professionalism. “And play by the same rules.” Her biggest communication initiative is finding the best way to get the association’s message to its members. With an ever more diverse industry, she is evaluating the best way (or ways) to reach the largest audience. Kirkner wants to find the answer and get more members actively involved. As Maryland’s representative on the participation committee for the REALTOR® Political Action Committee (RPAC), advocacy is also important to Kirkner.
“Housing is the backbone of the economy and we’re still fragile. We need people to speak to legislators. We’re not Republican or Democrat, we’re the REALTOR® party.” Kirkner would like to see more members contributing to RPAC and responding to Calls for Action. In fact, generating more participation in calls for action is Kirkner’ s main initiative. As president, she is most looking forward to working with new members and encouraging them to get involved. And by new, Kirkner doesn’t just mean those new to real estate. She wants more agents to see the value
in the association— both in what they receive and what they themselves can give.
“We’re here for you and can help,” she says. “The door, the phone line, the text and the social media page are always available.”
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MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
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And reminiscent of the encouraging agent who originally led her to real estate, Kirkner volunteers herself and the association as guides.
Pearl Insurance offers E&O coverage that includes:
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130058
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X X X X X X X ALTORS®
OF RE N IO T IA C O S ND AS
MARYLA
014 2 , 0 1 – 8 r e b Septem
O P X E &
A Special THANK YOU to all of our Sponsors
X X X X X Main Conference Sponsors
Refreshment Breaks
MRIS Pen Fed Credit Union
Coastal Association of REALTORS®
Platinum Sponsors
Howard County Association of REALTORS®
Century 21 Real Estate
Overall Conference Sponsors
Bay Area Association of REALTORS® Greater Capital Area Association of REALTORS® Cecil County Board of REALTORS® Embrace Home Loans Garrett County Board of REALTORS® Harford County Association of REALTORS® Janice Kirkner, 2014 MAR President—Elect Maryland Department of Housing & Community Development (DHCD) Maryland Hispanic Real Estate Industry Association (MHREIA) Mid-Shore Board Pen-Mar Association of REALTORS® Prince George's County Association of REALTORS® RE/MAX Central Atlantic
Wednesday’s Beverage Break Installation Banquet
Long & Foster Real Estate—Gold Sponsor Carroll County Association of REALTORS®—Gold Sponsor Lakeside Title—Gold Sponsor Al Ingraham, 2006 MAR President Billie Landbeck, 1978 MAR President Carlton Boujai, 2013 MAR President Carole Maclure, 2014 MAR Treasurer Dale Ross, 1989 MAR President Harold Huggins, 1999 MAR President Ilene Kessler, 2007 MAR President Jack Steffey, 1956 MAR President Jim Matthews, 1998 MAR President Michael Yerman, 1991 MAR President
Golf Sponsors
Coldwell Banker Residential Brokerage
Direct Mortgage Loans—Main Golf Sponsor Sharon McKenna, In Memory of Christopher McKenna— Golf Hole in One
NAR Directors Breakfast
Tees
REALTOR Business Center
Anne Arundel County Association of REALTORS® Frederick County Association of REALTORS®
www.mdrealtor.org
Martha Lessner, REALTOR® Cathy Werner, 2011 MAR President Prudential PenFed Realty Caliber Home Loans
MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
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X X X X X X X X X G N I U N I CONT TION CREDIT EDUCEAS FOR MD, DC, & DE CLASS
You can take any of the Continuing Education (CE) courses that have been approved for CE in MD, DC, or DE at the Annual Conference. Please have your real estate license handy when you register.
Join us for even more value at the MAR Annual Conference and EXPO. REGISTER NOW at MDREALTOR.org
Sunday, September 7, 2014
8:30 Am–5:00 PM Roland E Powell Convention Center, Ocean City Military Relocation (Mrp Certification Course) Maura Neill (3 Hours Md Professional Enhancement, Category F Ce Course #725-1604) Coastal Association of Realtors® Partner At Home With Diversity (6 Hours Md Professional Enhancement, Category F, Md Course #724-1604)
Monday, September 8, 2014 8:30–10 Am
8:30–11:30 Am 8:30–11:30 Am
9:00 Am–12:00 PM
9:00 Am–12:00 PM
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Fair Housing Today (1.5 Hours Md Fair Housing Category C Course #726-1604) Ethics (3 Hours Md Ethics Category D, Md Course #727-1604) Build Your Linkedin Presence: Creating Success For Realtors® Critical Technology Solutions For Today’s Real Estate Professional Mrec—Commercial Agency (3 Hours Md Agency-Commercial; Category H, Md Course # 728-1604; Dc Elective Ce Pending)
MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
Successfully Navigating Short Sales (3 Hours Md Professional Enhancement Ce; Category F, Course #729-1604; Dc Elective Ce Pending; De Module 7 Ce Pending) 10:30–11:30 Am Take Your Business on The Road With Mris 10:30 Am–12:00 PM Customer Before Company— Revolutionizing Your Real Estate Business The Nordstrom Way (1.5 Hours Md Professional Enhancement, Category F Ce Course #730-1604) 2:00–3:30 PM Residential & Commercial Real Estate Outlook (1.5 Hours Md Professional Enhancement, Category F Ce Course #731-1604) 2:00–5:00 PM Mrec Agency—Residential (3 Hours Md Agency Residential Ce, Category H, Course #672-1604) 2:00–5:00 PM Global Commercial Business Opportunities (3 Hours Md Professional Enhancement, Category F Ce Course #732-1604) 2:00–5:00 PM Real Estate Commission Regulations And Rulings (3 Hours Md Legal & Legislative, Category A Course #734-1604) 2:00–5:00 PM Become A Listing Legend 9:00 Am–12:00 PM
www.mdrealtor.org
X X X X X X X X X 2:00–5:00 PM
2:00–5:00 PM 3:30–4:30 PM
I Don’t Give A Twit: Social Media Risk Management (3 Hours Md Professional Enhancement, Category F Ce MD Course #733-1604) Maximizing Linkedin For Your Business Growth Navigating The Neighborhood of Mris Core
Tuesday, September 9
Risk Reduction (1.5 Hours Md Professional Enhancement, Category F, Md Course #742-1604) 9:00 Am–12:00 PM Legal & Legislative Update (3 Hours Md Legal & Legislative, Category A, Md Course #748-1604) 9:00 Am–12:00 PM When Imitation Isn’t Flattering: Intellectual Property Law For Real Estate Professionals (3 Hours Md Professional Enhancement, Category F Ce Course #735-1604; Dc Elective Ce Pending; De Module 7 Ce Pending) 9:00 Am–12:00 PM Global Business—How To Grow Your Business (1.5 Hours Md Professional Enhancement, Category F Ce Course #745-1604) 9:00 Am–12:00 PM Realtor® On the Go: How to Take Your Business Mobile 10:30–11:30 Am Take Your Business on the Road With Mris 10:30 Am–12:00 PM Disclosures (1.5 Hours Md Professional Enhancement, Category E, Md Course #743-1604) 10:30 Am–12:00 PM Streamlining Your Social Media Platform: Be More Places With Fewer Steps 1:30–3:00PM Personal Leadership For Lead Generation: The Story of 0 Deals To 100 1:30–3:00 PM Real Property Conveyance Issues (1.5 Hours Md Professional Enhancement, Category F, Md Course #736-1604) 1:30–3:00PM Mrec Update (1.5 Hours Md Professional Enhancement, Category F, Md Course #737-1604) 8:30–10:00 Am
www.mdrealtor.org
1:30–3:00 PM
1:30–4:30 PM
1:30–4:30 PM
3:00–4:00 PM
3:30–5:00 PM 3:30–5:00 PM 3:45–4:00 PM
Fair Housing (1.5 Hours Md Fair Housing Category C, Md Course #738-1604) Hyperlocalism—How To Dominate in the Digital Age Regulatory Issues & Technology— An Introduction to Social Media (3 Hours Md Professional Enhancement, Category F Ce Course #747-1604; De Elective Ce Pending; De Module 7 Ce Pending) Navigating The Neighborhood of Mris Core (Repeat) Reverse Mortgages (1.5 Hours Md Professional Enhancement, Category F Ce Course #739-1604) Mar Contract Forum—New & Updated Forms Speed Networking
Wednesday, September 10 8:30–11:30 Am
8:30–11:30 Am 8:30–11:30 Am
8:30–11:30 Am 8:30–11:30 Am 9:00–11:00 Am 9:00–11:00 Am 9:30–11:30 Am 9:30–11:30 Am
10:00–11:00 Am
Professional Standards, Ethics, Predatory Lending & Flipping (3 Hours Md Ethics, Category D Ce Pending) Mrec Supervision (3 Hours Md Supervision, Category I, Course #689-1604) Understanding Settlement Procedures & The Hud 1 (3 Hours Md Professional Enhancement, Category F Ce Course #746-1604; Dc Elective Ce Pending; De Module 7 Ce Pending) How The New Tax Law Affect the Real Estate Professional Real Estate Pr: See Me, Know Me, Love Me Poke, Tweet, Check-In & Hang Out Getting Listings in a Sellers Market Mar Contract Forum—New & Updated Forms (Repeat) Leveraging the Realtor® Federal Credit Union Take Your Business On The Road With Mris (Repeat)
MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
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We’re always scouting for agents who can look boldness in the eye and bend it to their will. Agents who should affiliate with a brand that has the most visited real estate franchise website, with the highest number of unique visitors in the industry, according to a recent comScore survey. So, to the agent who doesn’t stop at putting sprinkles on top, let’s meet.
C21.COM/CAREERS Data per comScore data January 2013 - December 2013
©2014 CENTURY 21 Real Estate LLC. All Rights Reserved. CENTURY 21® is a trademark owned by CENTURY 21 Real Estate LLC. CENTURY 21 Real Estate LLC fully supports the principles of the Fair Housing Act and the Equal Opportunities Act. Each office is independently owned and operated.
2014 Commercial
Symposium Over 100 commercial practitioners attended MAR’s annual Commercial Symposium on May 9 at the BWI Hilton. MAR’s Commercial Alliance Committee sponsored the event, which offered two 1.5 hour courses for continuing education requirements and breakfast.
M
AR’s consulting economist, Anirban Basu of the Sage Policy Group moderated a panel of experts in the first session, “From Concept to Reality-Moving Your Commercial Real Estate Project Forward.” Panelists Tom Pilon, St. John Properties; Abe Rosenthal, 28 Walker Associates; Marco Greenberg, Beatty Development; and Marc Dubick, Duball LLC offered insights about key issues, including obtaining tax credits, arranging for financing, and minimizing public opposition to a project.
Bill Castelli, MAR’s Vice President of Government Affairs, taught the second session, a Commercial Legislative update. He discussed recent legislation involving a variety of issues affecting commercial real property, including: • Federal Tax Policy • Stormwater Management— Watershed Protection Program (the “Rain Tax”) • Ground Rents • Film Tax Credits • Flood Insurance Bill • Non-Resident Real Estate Withholding
www.mdrealtor.org
• Bay Restoration Fee on Real Property • Taxation of Indemnity Deeds of Trusts • Lead Paint Renovation Rule If you were unable to make this annual event, be sure to be on the lookout for next Spring’s Symposium. For more information regarding legislation affecting commercial real estate, contact Bill Castelli. For information on MAR’s Commercial Alliance Committee, contact Jason Brand. Both can be reached at MAR at (800) 638-6425.
MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
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the
Meet
Staff
toun
Mary An
Chief Executive Officer Mary Antoun has been MARs top staffer since 1993. In addition to overseeing the Association’s operations, she works closely with volunteer leadership to develop and implement policies and initiatives to promote the real estate industry and private property rights. An attorney and economist, Mary believes the Association’s primary responsibilities are representing member interests before the legislature and advocating REALTOR® professionalism with members and the public. Prior to joining MAR, Mary was Vice-President of Real Estate Finance for the National Association of REALTORS® in its Washington Office. Previously she was Vice President
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L to R: A Rebec rlene Robe rtson, ca Bak Angela er
Leeper ,
and
of Barrentine Lott, an asset/liability consulting firm, and served in the General Counsel’s office at HUD and as Assistant Director of Research for Freddie Mac. Director Arlene Robertson has been with MAR since 1986, responsible for the administrative functions of the Association. Arlene keeps the organization operating smoothly, from building operations to the Association’s management functions. Prior to joining MAR, Arlene was with the Maryland General Assembly as Committee Secretary/Office Manager of the Senate Economic Affairs Committee, and with the Maryland Bankers Association.
MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
Arlene and Executive Assistant Angela Leeper staff the “governance” committees—Executive, Bylaws, Nominating, and Strategic Planning. They also support the Board of Directors and General Membership meetings as well as the Presidents’ Council, made up of local association Presidents who meet to exchange information, develop ideas and share experiences. Their department organizes the MAR Former Presidents meetings, the MAR Reception at the National Association (NAR) Annual Convention, and other events during the year. They also oversee the prestigious Life Achievement Award. Arlene and Angela assist members at registration during the MAR Annual Conference. Receptionist Rebecca Baker greets and talks to more members as the first point of contact at the Association offices than any other staffer. She answers hundreds of questions every week from members and the public, referring them to the appropriate staff person or other resource. Rebecca assists with meeting logistics, mailings, and other tasks requested by other departments. www.mdrealtor.org
Government Affairs Vice President Bill Castelli, MAR’s Chief Lobbyist, heads a team that includes Director of Regulatory Affairs Mark Feinroth, Director of Government Affairs Susan Mitchell, and Assistant Sheryl Bergman. Bill, an attorney and former aide to Rep. Steny Hoyer, develops and directs the Association’s legislative strategy in representing Maryland REALTORS® in the statehouse, and coordinates state efforts with NAR in representing REALTOR® interests before Maryland’s Congressional delegation. Bill also supervises MAR’s contract lobbyists and various subject matter experts that we occasionally retain to assist in representing REALTOR® interests. Mark, also an attorney and lobbyist, represents MAR’s interests on regulatory matters that come before various agencies with responsibilities that affect the real estate profession and private property rights. Prior to joining MAR, Mark was Assistant Secretary with the Maryland Department of Labor, Licensing and Regulation, supervising the operation of all licensing commissions, including the Real Estate Commission. Both Bill and Mark teach CE classes for local associations. In addition to her lobbying responsibilities, Susan also directs MAR’s grassroots advocacy efforts, including Calls For Action, and manages our database to customize mobilization efforts
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L to R: Bill Castelli,
Mark Feinroth, Su
san Mitchell, an
on key issues. She also works with local associations to assist in providing MAR and NAR expertise on local issues such as land use and zoning. Susan manages MAR’s Local Government Affairs Director (GAD) Program, supervising the local GADs that MAR provides to all local boards/association who do not employ local lobbyists. The program is designed to strengthen REALTOR® voices in those local jurisdictions. Prior to joining MAR, Susan was the Government Affairs Manager/ Washington Representative for Bristol-Myers Squibb pharmaceutical company in their Washington DC office, responsible for both the federal and state grassroots lobbying program & PAC, and served as their Washington representative to the industry trade association.
d Sheryl Bergman
All three lobbyists represent MAR on various industry and other coalition groups. Sheryl provides administrative support for the entire department, including helping to organize Legislative Day and other political events as well as coordinating and e-publishing Political Buzz (the RPAC e-Newsletter). Sheryl also serves as the MAR staff photographer. The team also includes contract lobbyists and attorneys Joel Rozner and Frank Boston. Government Affairs committees include Public Policy, Legislative, Issues Mobilization, and Legal Action.
MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
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and provides instructors for continuing education classes on risk reduction, agency law, real estate contracts, Code of Ethics, fair housing, legislative and legal updates and broker supervision. To assist in compliance with the NAR Professional Standards program, the department provides annual training to local Grievance and Professional Standards Committees.
n Brand nd Jaso a , in t r a n Reed y, Don M Shanno ck Kask u d h n C a : , R le ga w, L to Massen Back Ro Colette : R o t L ow, Front R
Legal Department MAR’s Legal Department, headed by Senior Vice President Chuck Kasky, includes Staff Attorneys Colette Massengale and Jason Brand, along with Don Martin, Director of Board and Member Services, and Shannon Reed, Professional Standards Administrator and Legal Affairs Assistant. Chuck staffs the RPAC Trustees, Bylaws, and Real Property Operations Committees. Prior to joining the Maryland Association of REALTORS®, Chuck was engaged in the private practice of law, served as Legislative Counsel to several Committees of the Maryland General Assembly, and was Deputy Chief Administrative Officer for Howard County, Maryland. Colette staffs the Forms committee. Prior to joining MAR, she worked at several law firms in the Metropolitan
16
area and was a law clerk for Washington DC Superior Court Judge Rhonda Reid Winston. Jason staffs the Commercial Alliance Committee. He also serves as local Government Affairs Director under MAR’s local GAD program. Chuck, Colette, Jason, and Shannon staff the MAR Legal Hotline, the service REALTORS® routinely identify as one of the most valuable MAR membership benefits. Members call or submit questions via an online form, available on the Legal Services tab of the MAR website. Department attorneys also provide in-house legal and compliance assistance to the other Departments within MAR. Don staffs Grievance and Professional Standards Committees. Shannon provides support for all of the Committees. As a service to member boards, associations and firms, the Legal Department visits offices
MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
The attorneys draft and review proposed legislation and comments on proposed regulations, and provide advice to members about their impact. Legal Affairs also has responsibility for member services. Don is MAR’s principal outreach to firms and local associations, spending most of his time traveling around the state speaking at sales meetings and teaching continuing education classes. Don is the primary resource on Professional Standards issues and oversees local association compliance with NAR requirements regarding governance and services. Shannon Reed also administers the Professional Standards program and outreach services for dispute resolution. She administers the Professional Standards Services program for many local boards/ associations, offering MAR resources to provide seamless assistance to their members and the public regarding ethics cases and arbitrations. She manages the Dispute Resolution area of the MAR website, which addresses dispute resolution issues and alternatives.
www.mdrealtor.org
L to R: Lisa Kinsm
an, and Lisa Ha
ynes
Education Director Lisa Kinsman has been an MAR staff member since 1981. She supervises the activities and staffing for the REALTOR® Institute (GRI), Leadership Academy and Mediation Oversight committees and programs. The department coordinates the education programs for the Annual Conference, provides administrative services for professional standards training; and, oversees the recording of all continuing education credits earned for all CE programs provided by MAR and contracted providers. Education Assistant Lisa Haynes provides all Department administrative support, and is the “point person” responsible for CE monitoring, CE recording at the Maryland Real Estate Commission, handling replacement certificate requests for any MAR program; and any other general education question members may have.
18
MAR maintains an extensive educational database whereby attendee records (member and non-member) are updated for every CE or non-CE program MAR offers. This system verifies attendance and confirms classes taken to track designation courses, mandatory state licensing renewal courses and any association training required sessions.
Lutz Melissa wkins Sitting: aine Ha m r e J : g Standin
Communications & Public Affairs The Communications and Public Affairs Department is the public voice of MAR, charged with overseeing our communication with members and the public. Department Director Melissa Lutz (pronounced Loots) oversees all the Departments activities, including publications, all communications with members and the public, and media relations. Melissa spearheads the MAR public and media relations efforts, which include promoting Maryland REALTORS® and the real estate profession. Melissa
MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
has primary responsibility for the Annual Conference held in Ocean City each September, managing its large tradeshow and overseeing all onsite logistics. She also assists other departments with event planning. Jermaine Hawkins is the Communications Manager, supporting all department activities for its committees and events. He is also the first point of contact for the Fair Housing Poster Contest and Recognition Ceremony, held every
www.mdrealtor.org
April, and oversees the coordination of the MAR industry awards given at the Annual Conference. The Department staffs the Annual Conference, Communications/PR, Community Action and REALTOR® Excellence (CARE), and REALTOR® of the Year committees, manage and coordinate with the Equal Opportunity/Cultural Diversity Committee on all aspects of the Fair Housing Poster Contest. It publishes the bi-monthly Maryland REALTOR® magazine and HotSheet, and develops brochures and pamphlets, as well as the popular Fair Housing Calendar, and the Thursday Webinar series including topics of interest to all members. The 2015 Webinar schedule can be found on page 24. Communications manages affinity partnerships to provide member benefits and non-dues revenue. The Department oversees much of the content and enhancements to the MAR website mdrealtor.org and manages the MAR presence in the social media arena, including Facebook, Twitter and YouTube Video production.
www.mdrealtor.org
Housing Programs/ Partnership For Housing The Housing Programs Department, headed by Director Fern Dannis, researches and identifies available programs at state and local government housing agencies as well as communitybased, nonprofit housing organizations. The Department oversees data collection to identify financial assistance programs for homebuyers, which are featured on the MAR consumer websites mdhomeprograms.com and marylandhomeownership.com. The site has localized information for both REALTORS® and consumers. The Department also manages the curriculum and processing for REALTORS® to obtain the MAR Workforce Housing Certification (WHC). Fern is MAR’s liaison with NAR on its housing related public policy programs, with Freddie Mac’s CreditSmart® program and with statewide and national housing coalitions. She and Housing Programs Assistant Angela Leeper staff the Housing Affordability Committee and Equal Opportunity/ Cultural Diversity committees. As part of these responsibilities, Fern develops and supervises efforts to encourage Maryland REALTORS® to learn about credit literacy, housing
Fern Dannis
finance programs and involvement with creative housing programs, fair housing activities and related policy initiatives in their communities. Fern has worked in the housing field for over 30 years, with experience in property management, multifamily housing development, affordable housing policy, loan packaging/underwriting, nonprofit administration, as well as being a former real estate licensee. Fern also serves as the Executive Director of the Partnership for Housing Foundation (PHF), including the Maryland Home Makeover™ program.
MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
19
Back Row, L to
R: Kim Dansker , and Michael Front Row, L to Cunningham R: Leonard Wils on, Patti Schm itt, and Cindy Sellers
Finance and Technology Patti Schmitt, MAR Controller/ Director of Finance & Technology, has primary responsibility for developing and tracking MARs annual budget, managing MAR and affiliate organizations financial operations and working with its auditors and financial advisors. She provides economic and financial information to the CEO, Board of Directors and officers, Finance Committee and staff. Patti also oversees the operations and staff of the Technology Department. Prior to joining MAR, Patti was Assistant Controller for HRi, ASO & PEO Outsourcing, serving more than 150 employers with over 1,700 employees across 17 states. Patti also successfully started and operated a contracting business for fourteen years before selling her interest to her partner.
20
As Assistant Controller, Kim Dansker administers MAR’s accounts payable and assists with daily financial transactions. Kim also maintains financial records for RPAC. Kim joined MAR in 2001, first in the Legislative Department and then moving to the Finance Department in 2005. Leonard Wilson, Accounting Specialist, joined the MAR’s Finance Department in June. He administers MAR’s accounts receivable and assists with daily financial transactions. Leonard also maintains financial records for several affiliated organizations. Prior to joining MAR, Leonard worked with both nonprofit organizations and accounting service providers.
MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
3
Technology Administrator/ Coordinator Michael Cunningham worked with MAR for almost ten years as a consultant before joining the staff in 2005. Michael provides IT support and management, custom software development and programming, and website design and management for the Association, staff, and affiliate organizations.
Membership Manager Cindy Sellers, a staff member since 1995, maintains databases for MAR and some affiliated organizations, and assists in helping staff with computer hardware and software systems. Cindy is also responsible for maintaining office supplies and other office equipment.
www.mdrealtor.org
3 1 2 3
SERIES 100
3
GREAT THINGS come in Earn the GRI:
GRI 2014 Schedule
S
Southern Maryland Association 301-870-2323 September 4, 6, 12, 20 & 24 Greater Baltimore Board 410-337-7200 October 1, 8, 15, 22 & 29
SERIES 200 MAR – Annapolis 800-638-6425 September 30, October 7, 14, 21, 28
SERIES 300 MAR – Annapolis 800-638-6425 November 3, 10, 12, 17 & 19
SERIES 400 Greater Baltimore Board 410-337-7200 August 28, September 4, 11, 18 & 25
Increase Income Potential
REALTORS® with designations are high earn more income than those without designations. The GRI is a way to set you apart from the competition.
Please visit MAR’s website, mdrealtor.org for the most current course schedules.
Broker’s License Requirement
The full GRI classroom series (100, 200, 300, and 400) fulfills the educational requirements needed to take the Maryland broker’s exam (MAR coursework is specific for Maryland).
The Name Says it All
As a GRI (Graduate, REALTOR® Institute), you have accomplished a high level of achievement which indicates to your clients and colleagues an increased skill level, industry knowledge and dedication to your profession.
GUARANTEED TO HOLD! Classes will not be cancelled due to low enrollment!
C O L D W E L L
B A N K E R
R E S I D E N T I A L
B R O K E R A G E
We’ve made quite a name for ourselves.
After more than a century of leadership, innovation and success, the Coldwell Banker® name is known by 9 out of 10 consumers*. 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. Coldwell Banker Residential Brokerage’s School of Real Estate offers a wide variety of educational resources, from pre-licensing to certified continued education classes to advanced skill development. Visit cbrbschool.com for a full schedule. Let the trusted Coldwell Banker name open doors for you.
CareersCB.com
Nothing in this document is intended to create an employment relationship. Any affiliation by you with the company 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. 8520MA-7/14
FREE Webinar Thursday Series USABLE STRATEGIES that will increase your confidence and immediately help you. Join us for our FREE Webinar Series designed for REALTORS® in every stage of the profession. We will send a sequence of reminders to register. If you’re not receiving them and don’t want to miss these valuable FREE Webinars, let us know at info@mdrealtor.org.
Secrets to Business Planning
Disclosures
Bernice Ross
Chuck Kasky & Colette Massengale
Are you ready to fire up your earning potential for 2015? This fast paced session will dispel six of the common time management myths that hold most agents back, provide you with a super simple one page business plan.
As the listing agent, you have information about a property and have to decide whether to disclose it, knowing that your client may not like it. Want to know the truth about the Lead Paint Disclosure? This class will leave you with answers to the hard questions.
Social Media
Taxes
Amy Cherow
Chris Bird
Use the latest technology tools to manage real estate transactions, track agency disclosure and compliance with applicable laws, protect consumer information, reduce legal risk and provide buyers and sellers with extensive information to help them make sound decisions.
Lots of new information about asset protection and how to better maximize your retirement plans will be presented.
Hot Legal Issues
Tech Tools
Chuck Kasky & Colette Massengale
Beth Ziesenisis
Do you know what you do not know? We do! The questions most frequently asked of the MAR Legal Hotline are guaranteed to spark lively and informative discussions. Specific topics include Contract Pitfalls, Landlord/ Tenant Law, and License Law. Do not miss your chance to try to burn the MAR Attorneys on their own Hotline Hot Seat.
Ever feel like other REALTORS® know about computer shortcuts and apps and you’ve missed the memo? Author of blog, “Your Nerdy Best Friend”, Beth Ziesenis will take the mystery out of online tools and smart searching to increase productivity and make working with others easier.
October 16, 2014, 10 a.m.
December 11, 2014, 10 a.m.
February 26, 2015, 10 a.m.
RPR Advanced – 10 Powerful Ways to Use RPR Valerie Rivers April 9, 2015, 10 a.m.
Are you ready to increase your business? With all the information and tools RPR® has available, there are many ways to impress clients. RPR includes hundreds of datasets all at your fingertips. In this 1-hour webinar, we highlight the 10 most powerful ways to use RPR to immediately see results. After just 60 minutes with us, you will be impressing clients with the information they want and the property value understanding they need. Realtors Property Resource (RPR) is a REALTOR® member benefit and is included in the cost of your annual dues.
24
November 13, 2014, 10 a.m.
January 8, 2015, 10 a.m.
March 12, 2015, 10 a.m.
Are you Consumer Centric? Gee Dunsten
May 7, 2015, 10 a.m. Join us as Nationally renowned speaker, Gee Dunsten gives tips on being consumer centric. After this webinar you will be able to explain the importance of being strategic, apply methods to reduce consumer confusion about what they see on the news, and develop systems & skills to become a community reporter through the use of video, direct mail and social media.
We will send a sequence of reminders to register. If you are not receiving them and don’t want to miss these MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014 www.mdrealtor.org valuable FREE webinars, let us know at info@mdrealtor.org.
Successful. Passionate. Driven.
Why Choose Us? seeking top players, Challenge finders, dream makers & fUtUre thinkers. Call Us to get started today! 703.877.2714 or 410.547.5700
Revolutionary Compensation Plan
We offer a variety of ways to supplement your commission income via our IncomeBuilder速, TeamBuilder速 and Agent Advantage速 programs.
Agent Services Programs
We provide the tools to make you successful. Our innovative Agent Services Division works tirelessly to bring you products and services to enhance your business.
Agent Lead Programs
Our award winning Business Development Division provides thousands of buyer and seller leads to Prudential PenFed Realty agents each year.
息 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.
Specific Strategies for Enhancing COI Relationships The most effective way to nurture your Core Center of Influence (COI) relationships are creative and thoughtful. There is nothing wrong with acknowledging birthdays; it’s just not particularly innovative. But there are many less traditional holidays and events that allow you to reach out with an edge of originality and top of mind status. An additional positive is that these occasions are timeless. They can also be tailored to specific COIs—you won’t acknowledge every one for every COI. Here are some suggestions to get you thinking.
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MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
www.mdrealtor.org
Breakfast Always a good place to start. Breakfast is the least expensive meal of the day and many view it as an ideal time to reinforce business relationships. Inviting your COI to breakfast allows you to be the first thing on their mind as they enjoy the first meal of their day
New Year
Always on the Go? Use Our
Mobile Banking ® with Mobile Deposit
Begin at the beginning. January 1 is a great opportunity to begin the year with a great first impression. A little confetti in a card will get your COIs’ attention and set you apart. Hosting a New Year party for your Core COIs is also an effective option. It also gives you the opportunity to extend your COI network.
Download our app today. For Apple®
For Android™
St. Valentine’s Day Share the love. Everyone loves a little attention. Taking people back to their childhood with a little valentine is likely to make them smile and appreciate your gesture.
Use the Credit Union’s FREE Mobile Banking app* to: • • • • • •
Presidents’ Day A different take on a national holiday such as Presidents’ Day can be a fun and creative way to acknowledge the COIs in your network who are the founders of an organization or are currently presidents of associations.
During the Maryland State Convention, September 8–10, 2014, visit the Credit Union booth to meet our Business Development team:
St. Patrick’s Day St. Patrick’s Day is a great opportunity to tell your COIs that you feel lucky to know them. Organize a St. Patrick’s themed event or just invite a COI for coffee or a Guinness.
Spring Acknowledge a COI with a small box of this popular marshmallow based treat and a note: “Thanks for being one of my Peeps.”
Earth Day Celebrate your COI contractors who have gone green. They did it to stand out and make the Earth a better place to live. A small potted plant is a great Earth Day sentiment. It has the potential to live for years and each time someone comments on the beauty of the plant, your COI will be reminded of your thoughtfulness.
Make deposits with Mobile Deposit® Check balances View transactions Transfer funds Pay bills and review payments Locate ATMs and branches
• Victoria Gillespie • Greg Ferentinos • Jewel Codosea
Visit our booth
at the Maryland State Convention Sept. 8–10
Ask them how to access your accounts on-thego when you download and use our app. When you join during the Maryland State Convention, mention this ad and we will make the initial $5 deposit in your new account.** Attend Victoria’s session on Wednesday, September 10, 9:30–11:00 am, and join the Credit Union.
www.REALTORSFCU.org *Message and date rates may apply. Message frequency depends on account settings. **Membership eligibility and qualifications required to join. Accounts closed and reopened are not eligible; must be member’s first account with the Credit Union. Bonus will be credited to new member’s primary savings account in good standing 30 days after member’s account is opened. Mobile Deposit is a registered trademark of Mitek Services, Inc. Qualification criteria apply for Mobile Deposit. Mobile Deposit is available for iPhone 4, iPhone 5, iPad 3 and most Android devices enabled with a camera. iPhone and iPad are registered trademarks of Apple Inc. Android is a trademark of Google Inc. App Store is a service mark of Apple Inc.
Federally insured by NCUA
www.mdrealtor.org
MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014 7/2/14
146800.RFMobileDeposit.AD.6.14.indd 1
27
2:54 PM
Mother’s Day Take time to let your COIs who are mothers know that you understand how hectic their lives may be with a simple gesture—a cup of their favorite pick me up, a box of candy, or other small treat.
Father’s Day Much like mom, dads are sometimes unsung heroes. This is equal opportunity: go for a small treat or a note that acknowledges your respect for this important role in their lives.
Independence Day The freedom to choose who we do business with and the ability to acknowledge all of the hard work and potential sacrifices they have made to get to the place they are today. You know which of your COIs have traveled this path. A lighthearted way to let them know you see their drive is to send a sparkler with a note saying something like “You more than sparkle; you shine. Thinking of you and all you do for those around you.”
First day of Autumn As the leaves change colors invite your COIs to enjoy some warm apple cider. Small actions and thoughtful invitations help your COIs keep you as a forethought rather than an afterthought as you move into the cooler months of the year.
Columbus Day Explore the possibilities, because they are limitless. See what great ideas your COI’s have that you might be able to help actualize. Is your COI contractor looking for a new building or does he need to renovate? Even if you are simply connecting them to someone who can help them fund their dream, you are still part of the process.
Halloween
just family. Broaden the scope of this tradition and paying tribute to your COI family is a sure way to let them know just how thankful you truly are.
Hanukkah You do not have to celebrate a specific holiday yourself to be able to celebrate your COIs who do. You can be as creative as you want by sending eight small sentiments or even just eight notes of thoughtful appreciation. The end result is the same. You took the time and make the effort that will make the difference in the end.
Christmas Make merry and spread joy. Christmas cards are always easy ways to show a COI you are thinking of them during the December holiday season. You can also invite your COIs to a holiday gathering. Cookies and eggnog have the ability to brighten most people’s day. Each contact opportunity is focused on showing appreciation, giving thanks for their many strengths and showing your COI’s that you see them as an integral partner. The methods you use to nurture your Core COI relationships will never be identical to anyone else’s. That originality and attention to detail is what will set you apart and make you the first choice when any of your COI contacts makes a referral. REALTORS® Federal Credit Union is your partner in the journey to develop your business through financial education, network building tools and so much more. Visit realtorsfcu.org to explore all of the products and services designed specifically for REALTORS®. Join us in the next issue as we focus our attention on the Value and Benefits of the Credit Union.
Jewel Codosea, M.A., Business Development Administrator, REALTORS® Federal Credit Union, a Division of Northwest Federal Credit Union and Victoria Gillespie, M.B.A, Maryland REALTOR®, National Director & VP, Business Development, REALTORS® Federal Credit Union, a Division of Northwest Federal Credit Union
Do something as simple as a “Treat and Treat”—no tricks involved. Visit your COIs with some of their favorite Halloween treats.
Thanksgiving There is no better opportunity to let your COI’s know how thankful you are to have them as part of your network. Giving thanks on Thanksgiving is often associated with
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MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
www.mdrealtor.org
Tell Your Clients:
A Mortgage With a Federal Tax Credit
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MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
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T
he Maryland Department of Housing and Community Development (DHCD) announced its Maryland HomeCredit program on June 1. The program is for homebuyers to couple with the competitive rates and significant down payment assistance available through the Maryland Mortgage Program. And what is good for homebuyers can be a good deal for real estate professionals. Here’s how the program works: Eligible homebuyers who purchase a home before Dec. 15, 2015 can use the Maryland HomeCredit to claim 25 percent of the annual mortgage interest they pay as a federal tax credit, up to $2,000 for every year the mortgage is outstanding and they live in the home. For example, a home owner paying $8,000 a year in interest may take a dollar for dollar reduction from federal taxes owed up to $2,000, and still use the remaining $6,000 as a normal federal tax deduction. This puts money back in the buyer’s pocket for the life of the loan. (The tax credit is not applicable to Maryland income tax liability.) The homebuyer must apply for the Maryland HomeCredit prior to closing on the mortgage. There are fees associated with the program, and refinances are not eligible. It is available to all Maryland homebuyers who meet the state’s eligibility requirements. And because it is a tax credit rather than a tax deduction, lenders may regard the amount of the Maryland HomeCredit as additional income, increasing a client’s buying power. The tax credit can be particularly attractive for first-time homebuyers when paired with the Maryland Mortgage Program, the state’s flagship mortgage purchase program for more than 30 years.
www.mdrealtor.org
MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
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Maryland Mortgage Program homebuyers can receive up to $5,000 in basic down payment assistance. Additional assistance is available through our Partner Match Programs. Through these programs, DHCD agrees to match any down payment assistance up to $2,500 offered by participating employers, builders and developers, and community organizations. Partner Match funds can be combined with the basic down payment assistance. The down payment assistance available through the Maryland Mortgage Program can: • effectively increase the amount a buyer brings to settlement; • lower the monthly payment; or • provide cash to help furnish the new home. Together, the down payment assistance and the tax credit may be the tipping point, allowing an otherwise worthy client to get into the home of their dreams. To get a list of participating Maryland HomeCredit and Maryland Mortgage Program lenders or to learn more about the advantages these programs offer real estate professionals and their clients, visit the Maryland Mortgage Program website: http://mmp. maryland.gov.
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MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
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let’swork You & Long & Foster = success in real estate.
There’s a lot of power in this one little character. It can do much more than join two things. It can create magic. More than 45 years ago it created Long & Foster and started us on the path to becoming the nation’s largest independent real estate company. Now we’d like to put the power of & to work for you — by giving you the right combination of support
& independence you need to succeed. While some companies offer you this or that, we give you this & that —
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You & Long & Foster = success in real estate. Join the company that puts their agents first.
Visit LongandFoster.com/Careers Or call 866.967.5563 EOE
Residential Sales
A N I R B A N B A S U
This Summer Looks a Lot Like Last Summer in Maryland Home Prices and Sales Volumes Similar to May/June 2013 Levels As predicted, the housing market is bouncing back after being hammered during the winter. According to the National Association of REALTORS®, all four regions of the U.S. experienced sales gains in May relative to April of this year.
T
otal national existing home sales rose 4.9 percent
Maryland’s housing market has been roughly flat along
in May to a seasonally adjusted annual rate of 4.89
many dimensions, including in terms of sales volume.
million units, up from 4.66 million units in April.
According to data supplied by MRIS and the Coastal
Unit sales remained 5 percent below the May 2013 level
Association of REALTORS®, home sales statewide fell 0.3
of 5.15 million units, however. The intervening increase
percent in May on a year-over-year basis, though 14 of
in mortgage rates serves as a partial explanation for the
Maryland’s 24 jurisdictions experienced sales increases
year-over-year decline. Still, the May 2014 sales increase
over that period. Counties with large sales increases in
represented the sharpest monthly gain since August
May included Dorchester (100.0%); St. Mary’s (41.9%);
2011 (5.5%). Price dynamics have been respectable,
Caroline (40.0%); Garrett (38.5%); Cecil (33.8%); Charles
with the national median existing home price for all
(18.1%); Frederick (11.4%); and Allegany (8.7%).
housing types up 5.1 percent on a year-over-year basis to
In June, sales were 2.6 percent higher than during the
$213,400 in May.
same month last year. Many rural counties reported sharp sales increases, including Talbot (41.7%); Somerset (35.7%); Dorchester (33.3%); Caroline (29.2%); Washington (25.2%); Charles (24.2%); Kent (23.8%); Carroll (22.0%); St. Mary’s (18.2%) and Calvert (11.2%).
Nine Maryland communities registered increases in average sales price in May… 34
MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
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While economic recovery in rural portions of Maryland
May 2014 vs. 2013
continues to be merely gradual, many of these markets appear to be benefitting from the stock market boom that has empowered many retirees to relocate and create
Units
Average Price
County
2014
2013
% Change
2014
2013
Allegany
50
46
8.7%
$99,156
$97,934
1.2%
Anne Arundel
678
647
4.8%
$374,813
$378,611
-1.0%
Baltimore City
587
597
-1.7%
$170,336
$178,602
-4.6%
Baltimore County
729
762
-4.3%
$258,589
$271,476
-4.7%
Calvert
99
96
3.1%
$313,087
$321,462
-2.6%
Caroline
35
25
40.0%
$181,287
$133,966
35.3%
Carroll
157
155
1.3%
$292,600
$301,021
-2.8%
Cecil
91
68
33.8%
$223,014
$210,822
5.8%
Charles
170
144
18.1%
$255,367
$250,343
2.0%
Dorchester
26
13
100.0%
$221,671
$132,038
67.9%
Nine Maryland communities registered increases in
Frederick
312
280
11.4%
$308,562
$310,059
-0.5%
average sales price in May, with the largest gains in
Garrett
36
26
38.5%
$325,338
$329,881
-1.4%
Harford
257
249
3.2%
$268,986
$267,747
0.5%
Howard
359
356
0.8%
$429,599
$432,702
-0.7%
Kent
18
24
-25.0%
$212,189
$234,817
-9.6%
Montgomery 1,103
1,157
-4.7%
$524,647
$527,960
-0.6%
Prince George’s
674
747
-9.8%
$235,376
$217,385
8.3%
Queen Anne’s
47
64
-26.6%
$392,006
$376,690
4.1%
Somerset
10
10
0.0%
$83,200
$120,590
-31.0%
St. Mary’s
122
86
41.9%
$301,523
$288,973
4.3%
Talbot
46
64
-28.1%
$387,287
$526,545
-26.4%
Washington
148
151
-2.0%
$169,418
$171,424
-1.2%
Wicomico
75
71
5.6%
$132,513
$170,292
-22.2%
Worcester
181
191
-5.2%
$267,874
$273,083
-1.9%
TOTAL 6,010
6,029
-0.3%
$321,160
$325,908
-1.5%
a second home market. Price dynamics have not been as positive in Maryland as they have been in much of the balance of the nation, in part because Maryland continues to be have among the highest foreclosure rates in the country, according to RealtyTrac data. On a year-over-year basis, average home sales price declined 1.5 percent in Maryland in May, with median price rising just 0.4 percent, which represents a decline in real/inflation-adjusted terms. Only nine Maryland jurisdictions reported increases in median sales prices in May in excess of 2 percent relative to the year prior, and only two communities (Caroline; 32.8% and Queen Anne’s; 11.1%) generated a double-digit increase.
Dorchester (67.9%) and Caroline (35.3%) counties. Several Eastern Shore jurisdictions recorded large average price decreases, however, including Somerset (-31.0%), Talbot (-26.4%) and Wicomico (-22.2%) counties. Price dynamics were similar in June. Statewide, average price rose only 0.1 percent while median price fell 0.2 percent on a year-over-year basis. Twelve jurisdictions reported higher average prices while fourteen reported greater median prices. Washington County experienced the largest average sales price rise with an increase of 13.1 percent. Median price there was up 9.1 percent. Prince George’s County reported double digit increases of 12.0 percent and 12.2 percent for average and median prices.
% Change
Figures reflect resales and new properties. Residential resales are reported by MRIS® and local associations MLS systems.
www.mdrealtor.org
MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
35
June 2014 vs. 2013 Units
Average Price % Change
Looking Ahead
County
2014
2013
% Change
2014
2013
Allegany
34
54
-37.0%
$109,857
$109,555
0.3%
Anne Arundel
754
691
9.1%
$382,725
$376,856
1.6%
speed of Maryland’s recovery, including below average
Baltimore City
683
642
6.4%
$188,275
$183,492
2.6%
job growth. The pace of job growth in Maryland has
Baltimore County
831
843
-1.4%
$289,134
$266,429
8.5%
been roughly one half of what is has been nationally,
Calvert
109
98
11.2%
$337,123
$319,984
5.4%
Caroline
31
24
29.2%
$136,869
$165,931
-17.5%
Carroll
227
186
22.0%
$314,710
$324,812
-3.1%
Maryland’s service sector economy has languished
Cecil
78
91
-14.3%
$218,931
$219,111
-0.1%
during a 12-month period characterized by sequestration
Charles
185
149
24.2%
$257,987
$245,327
5.2%
Dorchester
32
24
33.3%
$156,324
$152,258
2.7%
of the state’s economic momentum.
Frederick
314
343
-8.5%
$321,882
$305,984
5.2%
By June, the active inventory of unsold homes in
Garrett
26
33
-21.2%
$247,683
$313,415
-21.0%
Harford
267
259
3.1%
$274,379
$277,685
-1.2%
Howard
392
447
-12.3%
$434,098
$439,909
-1.3%
Kent
26
21
23.8%
$276,475
$327,762
-15.6%
Montgomery
1260
1250
0.8%
$521,323
$541,667
-3.8%
June 2014 to 7,425, up from 7,204 during the same
Prince George’s
730
701
4.1%
$244,306
$218,196
12.0%
month in 2013. Mortgage rates have been falling recently
Queen Anne’s
61
69
-11.6%
$356,384
$347,654
2.5%
Somerset
19
14
35.7%
$101,366
$178,793
-43.3%
St. Mary’s
104
88
18.2%
$281,948
$298,104
-5.4%
manageable and to support conditions consistent with
Talbot
51
36
41.7%
$404,046
$387,268
4.3%
home appreciation.
Washington
139
111
25.2%
$201,801
$178,477
13.1%
Wicomico
63
82
-23.2%
$159,605
$160,936
-0.8%
Worcester
175
165
6.1%
$227,776
$271,358
-16.1%
TOTAL 6,591
6,421
2.6%
$332,014
$331,701
0.1%
The housing market’s progress has become gradual. Many aspects of economic life have constrained the
with many of jobs added locally falling within low-wage service categories. While the national economy has been powered by gains in energy and industrial production,
and punctuated by the recent federal government shutdown. An attenuated winter followed, sapping much
Maryland was 30,672, up nearly 20 percent from a year ago. Months of inventory statewide rose from 4.0 months to 4.7 months during that same period, with 8 Maryland jurisdictions having more than 10 months of supply. Still, the outlook remains benign. Pending sales rose in
and job growth has picked up nationally and has stabilized in Maryland. The summer should end on a strong note, therefore, helping to keep inventory levels
Anirban Basu, Chairman & CEO, Sage Policy Group, Inc.
Figures reflect resales and new properties. Residential resales are reported by MRIS® and local associations MLS systems.
36
MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
www.mdrealtor.org
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TECHNOLOGY A N A LY T I C S INNOVATION
Your Ideas in Action:
New MRIS products & enhancements suggested by you! At MRIS, we are always eager to hear what our customers have to say. If you’ve been a customer of ours for a while, you may have taken one of our quarterly customer surveys. These surveys not only ask how satisfied you are with MRIS as your MLS, but they also allow you to provide feedback on products–what’s working, what’s not and what new products and enhancements you really need. Here are the top three new products and enhancements
MRIS Close It! will replace WebSettlement Xpress, which
we recently launched that address the most common
will be retired at the end of September.
requests we’ve received. Note that each item listed is a core product included with your MRIS subscription. There is no additional cost to use any of these products.
1
3
Keystone Enhancements—2014 continues to be a big year for Keystone users. So far we’ve had two releases of enhancements and updates with more
Homesnap Pro—With the launch of Homesnap
planned this year. Thanks to your suggestions, Keystone
Pro in May, we’ve provided MRIS customers
users can now set up email alerts for important listing
a mobile solution with the look, feel and
dates, schedule the submission of your listings, auto-
functionality you’d expect from an industry-leading real
populate schools information, see how many documents
estate mobile app.
are attached to a listing and much more.
MRIS is excited to be partnered with Homesnap,
More information and resources about these enhancements
becoming the first MLS in the country to offer our
are available at MRIS.com/KeystoneHelp.
customers access to this invaluable tool so you can serve
Going to the 2014 MAR Conference in Ocean City? We’ll
your clients anytime, anywhere. Get to know Homesnap Pro today at MRIS.com/HomesnapPro or download the app at Homesnap.com/Get/MRIS.
2
see you there! Make a point to stop by the MRIS Town Center booth, located on “Main Street” to learn more about all of these products. You can also sign up for the
MRIS Close It!—Our new closing cost calculator
“MRIS 301: What’s New and What’s Coming” class on
product, MRIS Close It!, quickly and easily
MRIS.com/Training.
assembles the pieces of the home buying puzzle
Thanks again for the suggestions, keep them
to accurately answer two commonly asked questions: “How much cash do I need to close?” and “How much can
coming!
I expect to net from the sale of my home?” MRIS Close It! also instantly produces an accurate and editable HUD-1 Settlement Statement that you can email, save and share with clients. MRIS customers can learn more about MRIS Close It! by visiting MRIS.com/ CloseIt.
38
MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
www.mdrealtor.org
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From the Hotline
C harles A K asky , E squire
Won’t You be My Agent?
Q.
I have been contacted by prospective buyer clients. When I asked, they said they had entered into an Exclusive Buyer Broker Agreement with another company, but have been unable to contact their agent since they signed it. They told me they have not seen any properties or been able to contact the lender this agent recommended since their first meeting 3 months ago. They want to terminate Buyer Broker Agreement with other company and sign an agreement with my company. What should I do?
A.
We often get this question or some iteration of it, and the first piece of advice we offer is, “Be careful.” As you know, both Maryland law and the REALTOR® Code of Ethics (the “Code”) prohibit you from interfering with brokerage agreements consumers have with other companies. Specifically, Article 16 of the Code proscribes “any practice or…action inconsistent with exclusive representation or exclusive brokerage relationship agreements that REALTORS® have with clients.”
Active solicitation of another company’s clients is a clear violation of this ethical standard. In your case, however, the consumer contacted you. This changes the calculus. According to Standard of Practice 16-6 of the Code, if you do not initiate the contact and the client of another REALTOR® contacts you, you may discuss the terms upon which they might enter into a future agreement with your company. Alternatively, you may enter into an agreement that becomes effective upon the expiration of any existing exclusive representation agreement. Several callers to the Legal Hotline have reported that the prospective clients provided the agreement they signed with the other broker and asked for help deciphering it and seeking advice on how to terminate it. We hope it goes without saying that this is a trap! The last thing you should do is get involved in a discussion of this nature, even though it’s a good prospect and you are just trying to be helpful. In this situation, there is only one good response—that it is not appropriate for you to be involved in a legal matter between that person and another real estate company. You should advise the prospective client to seek competent legal advice. Once the prospect represents to you that the existing brokerage agreement has been terminated, you may proceed to establish new representation.
Once the prospect represents to you that the existing brokerage agreement has been terminated, you may proceed to establish new representation.
40
MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
www.mdrealtor.org
Even this seemingly simple step has potential complications. Some callers have wondered whether they should seek some kind of proof that the former agreement has been cancelled. We caution against this. You are entitled to believe what you are told. This is analogous to another common, but related situation. Standard of Practice 16-9 states that REALTORS®, prior to entering into a representation agreement, have an obligation to make reasonable efforts to determine whether the prospect is subject to a current, valid exclusive agreement to provide the same service. This is the familiar question, “Are you working with another agent?” (Please note here that “working with” is not specific enough because in the mind of the average consumer, this would cover the relationship a buyer may have with another agent that is not in writing—the so-called “presumed” buyer’s agent. This is outside the scope of the Code’s directive.) As long as you ask the right question, you may reasonable rely on the answer, even though we all acknowledge that consumers don’t always give us entirely truthful answers. All that’s required is that you take reasonable efforts. In summary: when a prospective client contacts you, first inquire whether the person has signed an exclusive representation agreement with another company. (This is cumbersome, but you have to be specific.) If the answer is no, you can discuss your proposed representation. If the answer is yes, start with the premise that, according to Standard of Practice 16-13 of the Code, all dealings must be carried on with that person’s representative or broker. If the other firm’s client initiates the contact, you may discuss the terms upon which that person might enter into a future agreement with your company, or enter into an agreement that becomes effective upon the expiration of any existing exclusive representation agreement. There are other potential complications to this general scenario, and we are always available to discuss specific questions. For more information on how to reach us, go to mdrealtor.org and click on “Legal Hotline” under “Top Destinations” on the right side of the page. Charles A Kasky, Esquire, Senior Vice President, Maryland Association of REALTORS®.
www.mdrealtor.org
Home. Your Ultimate Destination.
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MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
41
Commercial Connection
Leasing Space to the Federal Government Just Got a Lot Easier
G
SA (General Services Administration) is making it easier than ever before for REALTORS®, brokers, lessors, property managers, building owners and developers to electronically offer building space for lease to the federal government. The goal is to drive savings to taxpayers by improving federal leasing efficiency in the real estate market. GSA’s Automated Advanced Acquisition Program (AAAP), which originally launched in 1991 in the Washington, D.C. area, is now available in Los Angeles, Seattle, Boston, Philadelphia, Denver, and Dallas.
Here’s How It Works Registered commercial real estate participants can submit and update offers to lease space to the federal government within specified time frames, in response to a GSA Request for Lease Proposal. The submission process is web-based, which as you can guess leads to • a more efficient lease process • cheaper acquisition of real property lease assets • improved agency satisfaction AAAP is one of several procurement platforms GSA currently uses to lease office space in Washington, D.C., Atlanta, Chicago, New York, and Kansas City.
How is AAAP Good for Business? AAAP consolidates and streamlines the leasing process, improving customer satisfaction and increasing the ease of doing business with the federal government. By incorporating cutting-edge Geographic Information System technology, AAAP reduces the offer submission and evaluation time from weeks to seconds. The program also helps businesses interact efficiently and effectively with the federal government, and provides one-
42
MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
stop online access to information. In expanding electronic government, the AAAP has advanced the goals of GSA by establishing itself as the first e-commerce leasing application in the federal government.
Get the Facts • AAAP allows registered participants the opportunity to offer their space for lease through its web-based application https://aaap.gsa.gov. • The AAAP handles general office space requirements ranging from 500 square up to $2.85 million net annual rent. • Offers can be submitted through the AAAP website during the open period from the 1st through the 7th of every month. • Offers are ranked according to present value to the government, taking into account base rent, operating costs, interest on tenant improvements, construction markups, and free rent. • Awards are made through the AAAP to the lowest-priced building that can accommodate the government’s needs in terms of square footage, technical requirements, length of lease term, and delineated area. • Through the AAAP, GSA is creating an active inventory of offers for varying sizes and lease terms in a standardized format. With an automated version of this system, an even more current inventory of offers can be maintained. • AAAP is one of many e-commerce initiatives that help support the government’s efforts to operate more efficiently and effectively, and save taxpayer dollars. Reprinted with permission of GSA. www.mdrealtor.org
Maryland Real Estate Commission News
k at h e r i n e c o n n e l ly
Commission Begins Annual Broker Meetings
T
he last of the Commission’s 2014 broker meetings took place on June 24. The meetings were held at fifteen locations throughout Maryland and allowed the Commission to exchange information with brokers about current issues faced by the real estate industry. The idea for annual meetings between the Commission and brokers came from the Delaware Real Estate Commission which adopted the practice several years ago. Our Maryland Commissioners believe it is important to communicate directly with the people who are in charge of training and managing those who provide real estate brokerage services. Commissioners urged brokers to take responsibility for the conduct of the agents with whom they are affiliated. Brokers were reminded that an agent may be terminated at any time and that adopting procedures on topics like handling earnest money deposits and transaction file reviews will allow brokers to objectively evaluate agents. In addition to asking brokers to be more assertive in managing agents, the Commissioners focused on three substantive issues that are generating both complaints and disciplinary action. Of greatest concern is the conduct of teams and groups operating within brokerages. The Commissioners stressed that advertising by team or group members must be in strict compliance with the law, which requires that such advertising include a team name that does not suggest it is an independent brokerage; the name of at least one licensee who is a member of the team; and the telephone number of the broker or branch office manager. Brokers are required to exercise supervision over teams and groups affiliated with the brokerage; the Commission intends to enforce this requirement.
www.mdrealtor.org
The brokers were also reminded that five members of the Commission are real estate licensees themselves and they see in the market an increasing prevalence of pocket and quiet listings. A seller is perfectly free to choose not to advertise a home or property for sale on the multiple listing service. However, agents and their supervising brokers should take care that sellers understand they may not receive the highest possible sales price on their property if they elect not to advertise fully. Lastly, Commissioners stressed the importance of understanding the Maryland real estate agency law. Brokers may not be a listing agent or buyer’s agent and also the dual agent in the same transaction. A broker must have at least two affiliated agents to serve as a legal dual agent. We at the Commission hope that brokers found these meetings helpful. Please feel free to contact me at kathie.connelly@maryland.gov with any question or comment you have regarding 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.
MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
43
Regulation News
MARK FEINROTH
Short Sale Auctions and Contractor Licensing Regulation The July meeting of the Maryland Real Estate Commission dealt with two important issues. Commissioners heard a presentation on lenders who require an online auction prior to giving short sale approvals. Jedd Bellman, Assistant Commissioner of Financial Regulation for Enforcement, and Assistant Attorney General Brian Weeks advised that they have made an extensive formal request for information from mortgage lenders who have engaged in short sale online auctions. They are concerned that lenders do not seem to have published short sale approval policies that give advance notice to both consumers and real estate agents concerning on line auctions. The result can be unexpected delay for a seller attempting to avoid foreclosure. On the other side of the transaction, a buyer who has made a good faith offer may learn later that the lender requires short sale properties to be offered for sale on an auction website. A buyer must therefore participate in the online auction to purchase the property. Mr. Bellman and Mr. Weeks asked for assistance in gathering information about short sale auction transactions that have harmed consumers or real estate agents. If you have been involved in such a transaction, please send me an email at mark.feinroth@mdrealtor.org. Commissioners also considered whether to finalize a proposed regulation to require real estate licensees to confirm that a service provider is properly licensed prior to making a referral. During the comment period on the proposal, MAR asked the Commission to narrow the scope of the requirement so that it applies only to service provider referrals related to real estate transactions or ownership.
44
MARYLAND REALTOR® AUGUST 2014 / SEPTEMBER 2014
The Commission agreed to make the modification requested by MAR and voted to adopt the new regulation as a final rule. The requirement will obligate real estate agents who “offer the name of a service provider” such as mortgage lender, home improvement contractor or real estate appraiser “in the provision of real estate brokerage services” to verify the service provider is properly licensed and to give the person receiving the reference both the date on which the license was verified and a website to confirm that the provider remain licensed. The rule will be effective ten days after the final language is published in the Maryland Register. We expect it to take that process will take approximately two months. We will announce the effective date as soon as it is known. The full language of the new regulation along with MAR’s comment letter can be found on the MAR website at http://www.mdrealtor.org/Legislative/ GovernmentAffairsNews/ctl/ArticleView/mid/637/ articleId/827.aspx.
As always, please contact me at mark.feinroth@ mdrealtor.com if you have any questions or comments regarding the Real Estate Commission or licensing issues.
Mark Feinroth, Esquire, MAR Director of Regulatory Affairs.
www.mdrealtor.org
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