KYREALTORFall12

Kentucky

REALTOR 速

Fall 2012

A publication of the Kentucky Association of REALTORS 速

The Direct Connection Between Values and Success

Four Agreements of Online Communication and Social Media Think Again: The Effects of Legislative Changes on REALTORS速 and Borrowers 2012 KAR Convention & Expo September 25-27 Find out more on page 13

www.kar.com

Contents

Volume 5, Number 2, FALL 2012

IN THIS ISSUE Staying Safe when Showing Properties 8 Think Again! The Effects of Legislative Changes on REALTORS® and Borrowers 9 A publication of the Kentucky Association of REALTORS® President Ann McDonald Lexington-Bluegrass Association President-Elect John T. May Jr., SRA Greater Louisville Association Treasurer Norman Jones, GRI Eastern Kentucky Association Treasurer-Elect Larry R. Gillette, GRI Hopkinsville Christian & Todd County Association Executive Vice President Susan W. Helm, RCE shelm@kar.com Communications/Education Director Hunt Cooper hcooper@kar.com Address letters and inquiries to: Kentucky REALTOR® 161 Prosperous Place, Suite 100 Lexington, KY 40509 TF 800.264.2185 T 859.263.7377 F 859.263.7565 www.kar.com email: hcooper@kar.com KAR members should always send address changes to their local board/association first. Subscription rates: $10 per year (included in dues) for members, $25 per year for nonmembers.

Kentucky REALTOR® (USPS 024-933) is published quarterly (Fall, Winter, Spring, Summer) by the Kentucky Association of REALTORS®, 161 Prosperous Place, Lexington, KY 40509.

Periodicals postage paid at Lexington, KY. POSTMASTER: Send address changes to Kentucky REALTOR®, 161 Prosperous Place, Suite 100, Lexington, KY 40509.

All articles represent the opinions of the authors and do not necessarily represent the opinions of Kentucky REALTOR® or KAR and should not be construed as a recommendation for any course of action regarding financial, legal or accounting matters by KAR or Kentucky REALTOR® and its authors.

Reproduction prohibited without permission.

Copyright © 2012. Kentucky Association of REALTORS®, Inc. All rights reserved.

The Direct Connection Between 10 Values and Success

13 KAR Convention & Expo Four Agreements of Online Communication and Social Media 20

29 Where Are We Now?

REGULAR FEATURES

President’s Message 5

Tools You Can Use 6 Legislative Update

14

Disaster Relief

18

Education

19

Local Association News

22

By the Numbers

24

Housing Stats

25

Community Profile

26

From the Helm

28

A Day in the Life of...

30

FALL 2012 KENTUCKY REALTOR® 3

KAR News McDonald named to Kentucky Housing Corporation Board of Directors Govenor Beshear has appointed Ann D. McDonald, current KAR president, to the Kentucky Housing Corporation Board of Directors to serve for the remainder of an unexpired term ending Oct. 30, 2013. McDonald, of Winchester, is a real estate broker and will represent licensed real estate practitioners.

The appointment replaces another KAR member and past president, Carolyn S. Edwards, who resigned.

List of Affinity Partners

Contact GEICO for a free quote on auto insurance to see how much you could be saving. Mention your KAR affiliation, you could qualify for an exclusive member savings opportunity on auto, homeowners, renters, motorcycle insurance and more!

REALTOR® Federal Credit Union If you are looking for a new way to bank, consider joining the REALTOR® Federal Credit Union, a virtual credit union created specifically for REALTORS®. The REALTOR® FCU, which just recently became a division of the Northwest FCU, is a benefits partner of NAR, wholly-owned by its members and recognizes the special financial services needs of REALTORS®. Joining the REALTOR® FCU takes just 10 minutes through a simple online application. Once approved, you’ll receive an account number and a couple emails in your inbox with instructions to sign‐up for free online banking. To get started, find out the benefits or learn more, visit www.realtorsfcu.org.

KAR members can save up to 30% on UPS shipping. Members currently enrolled in the UPS Savings Program must re-enroll to take advantage of this new exclusive offer.

Get feedback on your listings, improve communication with your sellers, and set yourself apart from your competition with HomeFeedback®. Special rates available for KAR members for this great client tool.

REALTOR.org seeing more improvements Since the re-launch of REALTOR.org, there has been a great deal of constructive feedback. NAR is now working on many enhancements and fixes to make the site more user friendly by the end of September. These include a better home page (users will still be able to customize the page with specific content if they wish), easier navigation and improved usability and presentation.

KAR Blog Visit www.karblog.org to read the latest real estate headlines from local and national sources. Then, enter your email to receive daily updates automatically (please make sure you click on the confirmation email that is sent to you after entering your email) or you can subscribe directly to the RSS feed.

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Through this special auto insurance program, you will save up to $500 with special rates on your auto policy even if you already have Nationwide as your carrier. In addition to auto insurance, Nationwide can also provide you with other products such as home/ renters, boat and RV insurance as well as identity theft protection.

To view all affiliate partner offers, visit www.kar.com > Members > Affinity Partners.

President’s Message

Lots of meaningful things have happened so far and we still have a ways to go

Ann McDonald 2012 KAR President

During the first part of my stint as KAR president, Kentucky was hit with terrible storms that caused an astronomical amount of damage to people’s property and lives. In the aftermath of these storms, KAR, with help from the National Association of REALTORS®, jumped into action and provided disaster relief assistance to families all across the Commonwealth. Although the amount of relief funds provided to each individual was less than what it would cost to rebuild, the thankfulness and appreciation returned to me was enough that I knew we had made a difference, as little as that may have been. My trips to personally deliver the checks to Louisa and West Liberty was humbling to say the least (see page 18). I know it meant the world to me and I hope it made a difference in the lives of those who were affected.

Another extremely meaningful part of my tenure came in May when I, along with many other Kentucky REALTORS®, attended the REALTOR® Rally in Washington, DC. The event, which gathered approximately 15,000 members from every state in the country, help raised awareness for homeownership with the goal to ensure that people who want to own a home or invest in real estate, and can responsibly afford to do so, will continue to have the opportunity to do just that. Supportive members of Congress came out and applauded the efforts of REALTORS® and it was awe inspiring to see that many people in one place, fighting for the same purpose. It still makes me smile thinking about that experience.

Back home in Kentucky, during this past legislative session, I am proud to say that of the two bills introduced

by KAR, both passed. KAR was also instrumental and supportive of a handful of other legislation that went on to be signed by the Governor. As I was called to testify at several hearings during the session, I couldn’t help but think, each time, how important it is for our collective voices to be heard and what a great responsibility it is for each of us to be involved in the politics that can have such a strong influence on how our business operates. It is also very important for us to realize that much of the legislation is not just directly tied into us and our profession but also into how our clients approach real estate and the buying and selling of properties.

On that same note, I have traveled extensively over the past few months to visit many of your boards throughout the state. At last count, I believe I have made it to around 15, eight in western Kentucky alone. What I hear from members is the most crucial part of real estate right now revolves around the stability of the economy. I just recently made a many mile journey to the eastern part of the state and on my drive, started to think about the reports of jobs lost in the coal industry, what that means to the people of that region and, because I am a broker, ultimately, what ill effects that may have on real estate. For KAR to remain strong, the importance placed on RPAC is greater now than ever. Investing in your business is not only needed, but necessary. By contributing to RPAC, even at the most basic level, you are helping support legislators that understand that real estate is directly influenced by the ability of our people to find decent jobs and keep them even during hard economic times. I urge you to consider giving your fair share today so that we may continue the fight.

I also want to let everyone know that we have several important projects on the horizon – one being a REALTOR® license plate for Kentucky and another being a data share for all members to know what properties are available anywhere in the state. As we move diligently forward on these, be on the lookout for more information.

In closing, let me just say (and I’ll say it time and time again), thanks for allowing me to serve,

Ann D. McDonald 2012 KAR President

FALL 2012 KENTUCKY REALTOR® 5

Tools You Can Use Marketing Minute

Cozi cozi.com

Each quarter, Fannie Mae releases a National Housing Survey where they survey the American public on a variety of questions relevant to the current housing market. The latest data may help shed some light on how your clients may feel about buying and selling and ways you can help guide them in their pursuit of the American Dream – homeownership.

Below is a list of insights from the survey:

The most interesting stat shows that 84% of the general population believes that owning a home makes more sense than renting. In fact, the survey revealed that 64% of renters have aspirations to someday own their own home and 70% of renters think that owning is superior to renting.

The four main reasons a person buys a home (believe it or not, all four have nothing to do with finances):

1. It means having a good place to raise children and provide them with a good education

2. You have a physical structure where you and your family feel safe

3. It allows you to have more space for your family 4. It gives you control of what you do with your living space (renovations and updates) However, when it comes to money, respondents did have strong thoughts on housing with

63% of the general

population saying that homeownership is a ‘safe’ investment and

53% saying that homeownership has more potential

as an investment than any other traditional asset class.

In the most current monthly survey, consumers shared their attitudes about housing with to buy and

73% saying it is a good time

16% saying it is a good time to sell (the highest

level since the survey’s inception). On housing prices,

35% said prices will go up in the next year, 50% saying they will stay the same and 11 saying they will go down.

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Real estate agents are busy, that’s a fact. So simplify your life with the app specially designed for busy families. Cozi is a free online organizer and mobile app that helps families manage crazy schedules, track shopping lists and to do lists, organize household chores, stay in communication and share memories - all in one place. The app is accessible from any computer, mobile phone or tablet. All you need to get started is a free account and because Cozi is shared, you only need one account for the whole family (everyone in the family signs in to Cozi with their own email address and the shared password). Voted #1 Productivity App for Moms by Babble and named #1 iPhone App for Moms by Circle of Moms editors!

Leap Motion leapmotion.com The future is truly here. It’s been talked about for years but now it is available for consumers. The Leap is a small iPod sized USB peripheral that creates a 3D interaction space of 8 cubic feet to precisely interact (movements down to a 1/100th of a millimeter) with and control software on your laptop or desktop computer. It’s more accurate than a mouse, as reliable as a keyboard and more sensitive than a touchscreen. For the first time, you can control a computer in three dimensions with your natural hand and finger movements. It does this by sensing your individual hand and finger movements independently, as well as items like a pen or pencil. In fact, it’s 200x more sensitive than existing touch-free products and technologies.

And, for some, the best part is that nice LED touchscreen display remains clean and untouched, as it should be.

To setup, just plug the Leap into a USB port, load the Leap Motion software and do a quick wave to calibrate. That’s it. As a bonus, you can even network more than one Leap device, to create even larger interaction areas.

MVP Program from NAR mvp.realtor.org The National Association of REALTORS® created the MV P (Member Value Plus) Program to encourage members to take actions that will benefit NAR and its members, as well as to reward members for being an active participant in the Association. Active involvement is the best way to maximize your membership, as well as the best way to make the Association and all members more successful. And, members who take the most active role are rewarded with resources that can continue to strengthen their business. How it works: Every two weeks a new MVP offer will be posted. All that’s needed to participate is to complete the specified action within the two-week timeframe. After the action is completed, you’ll receive instructions and a code via e-mail to redeem your reward. That’s it. It doesn’t get simpler than that. Rewards range from free e-products to discounts on NAR event registrations, and many other valuable products and services.

Using email effectively and efficiently There are all sorts of etiquette tips available on how to use email to the best of its ability. In real estate, the importance of using it correctly can mean the difference of gaining a client and/or closing a deal. You can research and read all you want on the subject but here are just a few tried and true tips: • Write a meaningful subject line • Identify yourself clearly (especially if you aren’t well connected) • Keep the message focused, simple and get to the point without fluff • Proofread and spell out difficult acronyms • Don’t assume anything you say is private • Respond promptly and professionally • Don’t type in bold fonts, all caps or use colors unless necessary • Be kind - don’t flame and show respect and restraint • Only use “reply all” when absolutely necessary

Lytro lytro.com Do you know of a camera that would have to focus itself before taking a snapshot? And how that could lose vital seconds, making a mockery of the term “point and shoot?” Up until now, that would describe every digital camera currently on the market. But no longer with the new Lytro camera, which demonstrates a breakthrough in digital technology. The basic premise of Lytro’s technology is pretty simple: The camera captures all the information it possibly can about the field of light in front of it. You then get a digital photo that is adjustable in an almost infinite number of ways after taking the picture. You can focus anywhere in the picture, change the light levels – and presuming you’re using a device with a 3-D ready screen – even create a picture you can tilt and shift in three dimensions. The files produced are not any larger than other digital photos available currently. If nothing else, this camera shows what is possible with technology today but is there much use for this in real estate? That’s for you to decide.

Video: short, edit, share viddy.com Real estate videos can be used for many things outside of actual listings and can be a huge differentiator among agents and brokerages. Neighborhood content, including city parks, local stores, tourist destinations, and other high profile spots, can set you apart from the competition. A free iPhone app called Viddy can help make that happen. It’s simple to use – just shoot, edit and share short videos (limit of 15 seconds each although several can be edited together) right from your phone. The user experience is pretty slick and there are filters you can use as well as the ability to add music.

You can also send videos directly from the Viddy app to Facebook, Twitter, YouTube and Tumblr. The Viddy-Tumblr combo removes almost any technology barrier that may have been keeping you from delving into the world of neighborhood video blogging.

Bonus: For those who want to kick it up a notch in the photo and video areas with a smartphone, there are a number of lens attachments to make your device captures more professional. Lens attachments come in a variety of styles and types such as wide angle, telephoto and fisheye, and range from around $50 and up.

Bits and Bytes Mobile and all related technologies are big players in our everyday lives and are becoming increasingly prevalent with the advent of newer and better products. It’s present in our personal lives so much that many of us sleep with our phones, maybe even our tablets (strange, huh?). And in business, forget about it. We can’t even think about what would happen if that became nonfunctioning. But what does the rest of the country, or even world, think about mobile technology? What do the facts tell us about adoption rates and the current state of affairs? Here are some stats and additional information (from all types of sources) about what is going on: • More than

3/4 of the U.S. population is online

• There will be nearly one mobile device per capita by 2015 • Of the world’s 6 billion mobile phones, are smartphones (about 21%)

1.2 billion

• Market share of smart phones (August 2012, according to IDC): Android (68%), iPhone (17%), Blackberry (5%), Other including Microsoft/Symbian (10%) •

By 2014

, mobile internet should take over desktop internet usage

• 62% of online adults worldwide now use social media with 56% of these users admitting to using channels to spy on their partners

2.7 hours per day

• On average, Americans spend socializing on their mobile device • •

64% of mobile phone time is spent on apps Over 1 billion Android apps and 1.4 billion Apple apps are downloaded monthly

• Mobile phones are being used for these top 5 things: games (61%), weather (55%), maps/search (50%), social networking (49%) and music (42%) •

86% of mobile internet users are using their devices while watching TV

• Sending text messages (74%) is the highest use of mobile content •

By 2016,

smart phones and similar devices will outnumber humans

• Top visited real estate websites: Realtor.com, Zillow, Trulia and Yahoo! Real Estate (Sources: Neilsen, comScore, Cisco)

FALL 2012 KENTUCKY REALTOR® 7

Safety Update

Staying Safe when Showing Properties Violence against real estate professionals has been making news in recent months and seems to be on the increase. Here are a few tips when showing property that may help with your personal safety and make you feel more comfortable out in the field.

Show properties before dark. If you are going to be working after hours, advise your associate or first-line supervisor of your schedule. If you must show a property after dark, turn on all lights as you go through, and don’t lower any shades or draw curtains or blinds.

It is better to not display valuables while at a property. Lock your purse in the car trunk before you arrive. Carry only nonvaluable business items (except for your cell phone), and do not wear expensive jewelry or watches, or appear to be carrying large sums of money.

On your listings, get acquainted with a few of the immediate neighbors. You will feel better knowing they know your vehicle, and they will feel better about the stranger (you) who frequently visits their neighborhood.

Park at the curb in front of the property rather than in the driveway. It is much easier to escape in your vehicle if you don’t have to back out of a driveway. Besides, parked in a driveway, another vehicle could purposefully or accidentally block you.

In showing a property, always leave the front door unlocked for a quick exit while you and the client are inside. As you enter each room, stand near the door.

If you have a Smartphone, download one of many available safety apps (like Moby, Guardly or RealAlert) and learn to use it. Set up the features it offers to benefit you in any given situation.

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Financing

Think Again! The Effects of Legislative Changes on REALTORS® and Borrowers

by Jeffery R. Ratanapool and Jeffrey W. Kibbey

Whether you noticed or not, every transaction you handled in 2011 was touched in some way by the federal Dodd-Frank Act and a new federal agency called the Consumer Financial Protection Bureau (CFPB). Although our industry still faces challenges, one thing is certain: the effects of Dodd-Frank and the CFPB will only increase in 2013. REALTORS® and others in the real estate profession should be prepared for the extraordinary breadth of Act and the CFPB in order to help their clients navigate the ever-deepening waters of federal regulation.

The Act was drafted in 2008 and passed in 2010 to create greater transparency in all financial markets, and makes significant changes to the mortgage origination process. 2013 will bring another new Good Faith Estimate, a new Truth in Lending Disclosure and perhaps even a new HUD-1 Settlement Statement.

Enhanced disclosure requirements will require different and longer waiting periods prior to closings including an enforced three-day “cooling period” between final disclosure and closing. New federal underwriting standards will not only require lenders to dig even deeper into a borrower’s financial and personal affairs, but will also make it even more difficult for borrowers to qualify if they have had a foreclosure, deed in lieu, short sale or default in the three years prior to their application. To prepare for a smooth transaction, REALTORS® will need to know more about their clients up-front than ever before.

The Act also combines the powers of many federal agencies into the CFPB, which has the responsibility for regulating nearly every financial services business – from the “big banks” to small payday lenders. The CFPB has moved quickly and aggressively to regulate the industry in an unprecedented fashion – the effects of which will be felt by borrowers at every turn, from the availability of the loan programs to pricing, qualification, compensation and disclosure.

begun incorporating portions of this settlement into state and federal law, which will increase the ability of short sale buyers to complete the transactions without the difficulties and delays that have been encountered in the past. These changes include a “single point of contact” for all short sales, enforced timelines for transactions and transparency in the short sale process.

So, what does this mean to you and your clients?

While the implementation of the act began over a year ago, the process is ongoing. Longer process times, higher costs in some cases and a litany of rules await your transaction. Borrowers are required to produce more documentation than ever before to obtain their home loan. In addition to the documentation, the requirements for qualification are set at higher standards. Although the spirit of the law has admirable intentions, its practical application has led to more turndowns, missed closing dates and failed transactions.

In other areas, the Office of the Comptroller of the Currency (OCC) has reached a settlement with the nation’s largest servicers that will amend the way that short sales, foreclosures and REO properties are administered. The CFPB and other agencies have

To explore these and other topics, a live seminar will be presented at the Kentucky Association of REALTORS® Convention & Expo on Thursday, September 27. Your attendance will give you the tools necessary to prepare your business and your customers for the new requirements in mortgage lending. This is one seminar that you cannot afford to miss – register now at www.kar.com > Events > Annual Convention & Expo.

FALL 2012 KENTUCKY REALTOR® 9

Feature Article

The Direct Connection Your values are your true brand. I believe this without reservation. There is real power in clearly identifying and articulating your core mission and values, and making them a prominent behavior driver, both in your business and in your personal life. Two stories caught my eye this past week and they each take a different approach to placing emphasis on the importance of values and culture.

Between Values and Success

By Jeff Turner, Keynote Speaker at the 2012 KAR Convention & Expo “People gravitate toward honesty.”

I might say it differently, but I agree generally. I think more specifically, people who value honesty, gravitate toward honesty.

Thankfully, there are more people who value honesty than dishonesty. It’s how we’re wired. Too few companies, however, fully tap into this truth.

“The mission of our business, then and now, is encouraging consumers to consider their purchases carefully,” DoDo Case CEO, Craig Dalton wrote in Risky Ideas Turn Into Smart Businesses When Your Values Are Clear. “Our message had to ring clear: We preserve the art of bookbinding, create jobs in San Francisco, and make a product that people feel emotionally connected to. We are able to breathe freely, and act with total transparency simply because we have nothing to hide. As it turns out, people gravitate toward honesty, even (and maybe especially) if you are doing things ‘wrong’ on paper.”

“It’s not intangible or fluffy.”

Values are what stand behind corporate culture, and according to Shawn Parr, culture eats strategy for lunch. “Culture, like brand, is misunderstood and often discounted as a touchy-feely component of business that belongs to HR,” Shawn writes. “It’s not intangible or fluffy, it’s not a vibe or the office décor. It’s one of the most important drivers that has to be set or adjusted to push long-term, sustainable success. ” I couldn’t agree more.

Values are only intangible when companies relegate them to a poster in their lobby. Values are only fluffy when they fail to be given teeth to act as the filters for how decisions get made, for how

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a business moves itself forward. When stated values take a back seat to profits, when short-term gains and expediency unseat the values that connect a business to both its customers and its employees, they’re meaningless, if not harmful.

Better to never state your values than to proclaim values you never intend to live. When there is a clear disconnect between stated values and real values, the values our behavior communicates, companies create a dissonance that can become a cancer, internally and externally. But clearly stated values that are given real life inside an organization, top to bottom… that’s powerful stuff.

Now, how does this all translate into real estate and how brokerages manage, train and lead agents? Well, here is a follow up article that ties this all together in a way that demonstrates the disconnect and how it could be solved with a change in mindset.

Vision, Values, and the Real Estate Industry The Question from Michael McClure: “Here’s a topic I’ve enjoyed discussing many times with many people: is the “employee” brokerage model viable in real estate, and – on a related point – is there any correlation between the predominance of the independent contractor model and the overall level of professionalism in real estate?”

My Response: People love to blame “the model” and the independent contractor status of the individual real estate agent on the inability of real estate brokers to lead. Furthermore, they blame this model for keeping a truly consumer-centric brand from being established. I think it’s crap.

Where there is no vision, the people perish.

The real culprit, at every level, is an almost complete lack of vision, no clear, actionable values, and a misguided understanding of what brand really is. Our values are our true brand. Real estate agents aren’t following brokers because no one is giving them a good reason to follow. And if they did follow today, where would they be lead?

I’ve been pondering writing this post for a few weeks and a discussion on a recent Harvard Business Review chat gave me the motivation I needed to actually do it. It is a conversation I’ve been having in depth for many years. The chat was dominated by a discussion of leadership, specifically as it related to vision and values. The need for a strong, unifying vision was not debated. The only real debate was whether this should come from a single voice – a strong, visionary leader – or whether it required a community/organizational effort to create. I don’t believe everyone can be a visionary, but I believe everyone wants to be associated with a strong vision.

FALL 2012 KENTUCKY REALTOR® 11

Feature Article cont.

The responsibility of leaders.

This deserves repeating: Leaders, real leaders, “recruit, develop and recognize people whose values and experience reflect the organization’s purposeful culture.” The problem with most real estate brokerages is that they have no clear vision and have not articulated a set of core values. They have no chance of creating a “purposeful culture.” And that purposeful culture is where “brand” is really born.

A definition of brand: A commonly held set of beliefs about WHAT you deliver and HOW you deliver it. This was shared with me years ago by my mentor, Bill Leider. I think it’s critical to understand that the HOW of the delivery is what is completely in control of the broker who has set a clear vision and established a set of values that THE BROKER can live without fail on a daily basis. Actionable shared values are not just pretty words on a poster. Values are the dark matter of human relationships and the key to building an ecosystem that manifests those values. This is also NOT model dependent. It simply demands that the articulated values play a key role in how a business is run.

Observable behavior. Like great parents, great leaders lead by example. The ecosystem is squarely in their control. The fact that agents are independent contractors is not the reason why brokers can’t lead. It’s the real estate broker’s view of their agents and their view of their role in their own organizations that keep them from leading effectively.

If this is to change, a decision has to be made at the broker level to CHANGE how THEY view agents, how they interact with agents, and what responsibility they have to their success. That begins with a shift in their thinking, their own psychology. This behavioral change on the broker side will trigger new psychological responses from the “independent contractor” side. I think it’s possible to alter the psychology, even without a change in the fundamental nature of the relationship. And the result would be a complete change in how value is delivered.

Translation for real estate? Real estate brokers need to create thick layers of value, guided by a shared core mission (vision), driven by a clearly articulated set of values and aligned squarely with

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the products/services desired by their clients. This is completely within their control, despite “the predominance of the independent contractor model.”

Why is there is a lack of professionalism in real estate? Because leaders are not leading, they’re wandering. Period.

Of course, your opinion may differ. I’d love to hear it.

Jeff Turner, the keynote speaker at the 2012 KAR Convention, has over twenty years experience as both a successful entrepreneur and a senior executive in a large corporation.

As company founder and CEO, he led J.J. Grace, Inc. to the Inc. Magazine list of the 500 fastest growing companies in America and the following year won Cisco’s Growing With Technology Award recognizing innovative companies networked for growth.

Find out more about Jeff and the Convention by visiting www.kar.com > Events > Convention & Expo.

FALL 2012 KENTUCKY REALTOR速 13

Legislative Update

National Legislation Possible Changes in Rural Housing Loan Program Availability Once again, residents of more than 900 communities are about to find it more difficult to obtain mortgage loans. On September 30th, the Rural Housing Service will implement the 2010 census data which shows population increases that would make many current areas ineligible for rural housing programs. Yet given tight credit markets, it is unlikely the residents of these communities have seen increases in access to traditional conventional mortgages.

Congress has grandfathered communities under this program routinely since 1980. NAR is working with members of the House and Senate to find a solution again this year. Congressmen Jeff Fortenberry (R-NE) and Ruben Hinojosa (D-TX) are asking their colleagues to sign a letter to House Leadership asking them to maintain the availability of this program in these communities as part of any legislation moving before September 30, 2012.

Ann McDonald, KAR President, Kathy Sears, Federal Political Coordinator for Kentucky Representative Hal Rogers, Susie Helm, KAR Executive Vice President and Anetha Sanford, KAR

Top Ten Things You Need to Know About the 3.8% Medicare Tax 1) When you add up all of your income from every possible source, and that total is less than $200,000 ($250,000 on a joint tax return), you will NOT be subject to this tax.

2) The 3.8% tax will NEVER be collected as a transfer tax on real estate of any type, so you’ll NEVER pay this tax at the time that you purchase a home or other investment property.

3) You’ll NEVER pay this tax at settlement when you sell your home or investment property. Any capital gain you realize at settlement is just one component of that year’s gross income.

4) If you sell your principal residence, you will still receive the full benefit of the $250,000 (single tax return)/$500,000 (married filing joint tax return) exclusion on the sale of that home. If your capital gain is greater than these amounts, then you will include any gain above these amounts as income on your Form 1040 tax return. Even then, if your total income (including this taxable portion of gain on your residence) is less than the $200,000/$250,000 amounts, you will NOT pay this tax. If your total income is more than these amounts, a formula will protect some portion of your investment.

5) The tax applies to other types of investment income, not just real estate. If your income is more than the $200,000/$250,000 amount, then the tax formula will be applied to capital gains, interest income, dividend income and net rents (i.e., rents after expenses).

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6) The tax goes into effect in 2013. If you have investment income in 2013, you won’t pay the 3.8% tax until you file your 2013 Form 1040 tax return in 2014. The 3.8% tax for any later year will be paid in the following calendar year when the tax returns are filed.

7) In any particular year, if you have NO income from capital gains, rents, interest or dividends, you’ll NEVER pay this tax, even if you have millions of dollars of other types of income.

8) The formula that determines the amount of 3.8% tax due will ALWAYS protect $200,000 ($250,000 on a joint return) of your income from any burden of the 3.8% tax. For example, if you are single and have a total of $201,000 income, the 3.8% tax would NEVER be imposed on more than $1000.

9) It’s true that investment income from rents on an investment property could be subject to the 3.8% tax. BUT: The only rental income that would be included in your gross income and therefore possibly subject to the tax is net rental income: gross rents minus expenses like depreciation, interest, property tax, maintenance and utilities.

10) The tax was enacted along with the health care legislation in 2010. It was added to the package just hours before the final vote and without review. NAR strongly opposed the tax at the time, and remains hopeful that it will not go into effect. The tax will no doubt be debated during the upcoming tax reform debates in 2013.

Government Affairs Director recently met with U.S. Congressman and House Appropriations Chair Hal Rogers in his Somerset office to further explain the impact of these changes to Kentucky communities. They also emphasized the importance of the Rural Housing program to Congressman Rogers. Not only was he was receptive to the comments but provided helpful information to the group. Please be sure to mention this issue to your member of Congress if this provision impacts you.

also service it should there be a problem. According to legal experts, RESPA was not envisioned to cover warranties which are not required to close a real estate and mortgage transaction. H.R. 2446 restates Congress’ intent that warranties are not covered by RESPA and also requires disclosure of any relationship between the real estate professional and the warranty company, a common practice already. NAR and its industry partners will continue to work on the legislation with the Senate.

U.S. House Passes RESPA Home Warranty Clarification Act of 2011

Congress Extends Flood Insurance for 5 Years

On Wednesday, Aug. 1, 2012, the U.S. House of Representatives passed “The RESPA Home Warranty Clarification Act of 2011” (H.R. 2446) by voice vote. The bipartisan legislation, sponsored

by Representatives Judy Biggert (R-IL) and William “Lacy” Clay (D-MO), is designed to counter an erroneous Department of Housing and Urban Development interpretive rule that reversed decades of common understanding of RESPA. Real estate professional and home warranty companies routinely partner to provide home warranties to consumers. For nearly two decades, the industry was led to believe there were no problems with this under RESPA. In 2008, HUD issued an informal letter that called into question the practice and led to several class action lawsuits. HUD compounded the problem by issuing an interpretive rule in 2010 that made the situation worse.

The effect of the HUD action was more lawsuits and the removal of the real estate professional from the warranty sales process. This is detrimental to consumers because the real estate professional is in the best position to explain the warranty and

In June, the Senate and House passed the Flood Insurance Reform Act as a part of H.R. 4348, the Surface Transportation Conference Report. This is the culmination of a successful multiyear REALTOR® campaign and a final push at NAR’s Midyear Legislative Meetings & Trade Expo held in May. It would not have been possible without the leadership of Reps. Biggert, Waters, Bachus and Frank, as well as Sens. Johnson, Shelby, Tester and Vitter.

Since 2008, Congress had been extending the National Flood Insurance Program a few months at a time. Twice this led to shutdowns, including one that stalled more than 40,000 home sales in June 2010 alone. Passage of this 5-year reauthorization will bring certainty to real estate transactions in more than 21,000 communities nationwide where flood insurance is required for a mortgage. The bill ensures the program will continue long-term for more than 5.6 million business- and homeowners who rely on it and means taxpayers will spend less on federal assistance for flood disasters over the long run. NAR will continue to monitor the legislation as it is implemented.

FALL 2012 KENTUCKY REALTOR® 15

Legislative Update cont.

Target: RPAC & VIP Reception featuring “Papa John” John Schnatter

State Issues

This event will be held during the KAR Convention & Expo.

Get your dart today for $50 or buy more than one. Someone will walk away with over $2,500 in cash and prizes at the end of the night. Deadline to purchase dart is the night of the event on September 26th.

The Candidate Training Academy was developed to give REALTORS® who are contemplating being a candidate an introduction to and expectation of how to run for political office. It is intended to give candidates a valuable head start in their political journey, as well as information on how to run a successful campaign.

A VIP Reception will be held for RPAC contributors who have given $100 or more to RPAC. This great event will feature “Papa John” John Schnatter, who is the founder, Chairman, and CEO of Papa John’s.

2012 Kentucky Elections The Kentucky General Elections will take place on Tuesday, November 6, 2012 with polls open from 6am until 6pm local time. This election will feature many local races across the state, all 100 Kentucky House seats, as well as Kentucky Senate seats in odd-numbered districts.

Register to vote by visiting www.elect.ky.gov. The last day to register to vote for the General Election is October 9, 2012.

Kentucky Property Tax Rate The Kentucky Department of Revenue has set the 2012 real property tax rate at 12.2 cents per $100 of assessed value, the same as it has been since 2008. State law requires the department to set the tax rate no later than July 1 of each year. The rate is based on the revenue generated from the increase in taxable real property assessments from 2011 to 2012. After the inclusion of new property added to the tax roll, if the increase in revenue is more than 4 percent, then the prior year rate must be reduced. But the estimated increase in revenue from 2011 to 2012 came in at only 1.03 percent, so no reduction in the rate is necessary.

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2013 REALTOR® Candidate Training Academy

Candidates, at all levels, look fondly on their candidate training experiences and often, later in their careers, come back to the same entities for additional training. Building loyalties and friendships

at all levels of government can be a valuable membership benefit of its own. It means better protection of real estate issues, individual property rights, brokerages, and the real estate profession for years to come. In addition to building relationships, opportunities exist to educate and inform local elected and appointed officials on issues that affect REALTOR® members, homeowners, and real property.

This training will be held on February 11, 2013 in Frankfort at the Capital Plaza from 9am-4pm EST. For more information and to register visit www.kar.com > Government Affairs > Candidate Training Academy.

Governor’s Blue Ribbon Commission on Tax Reform The Governor’s Blue Ribbon Commission, led by Lt. Governor Jerry Abramson, has met in each Congressional District across Kentucky for public comment. The Commission wanted to hear ideas and suggestions members of the public wanted to share. The Kentucky Association of REALTORS® attended each meeting and had members speaking on behalf of consumers and the real estate industry. The Commission will now work to develop recommendations to make the state’s tax code more responsive to the ups and downs of the economy, as well as to make taxes more equitable for Kentuckians.

FALL 2012 KENTUCKY REALTOR® 17

Disaster Relief

Kentucky REALTORS® Provide Disaster Relief The Kentucky Association of REALTORS® (KAR) partnered with the National Association of REALTORS® Relief Foundation (RRF) to bring housing assistance to those affected by the March storms that tore through the Commonwealth. Recently, members and staff of KAR made stops to various parts of the state to deliver relief checks to several families impacted by the storms.

“REALTORS® throughout Kentucky are committed to helping the communities they serve and assisting those impacted by the recent storms,” said Ann McDonald, president of KAR. “We realize many

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Kentuckians have lost everything and that many are still without a place to call home. Kentucky REALTORS® wanted to take action to help and to take the worry away from their housing situation.”

To view these and other photos from KAR, visit kyrealtors.smugmug.com.

Education REALTORS® required to complete ethics training by December 31 REALTORS® are required to complete ethics training for the current cycle running January 1, 2009 through December 31, 2012. Failure to complete the required ethics training will be considered a violation of a membership duty and could result in membership suspension or termination.

REALTOR® members can verify ethics completion by checking with their primary local association and should notify the primary local association when their requirement is completed. There are several options offered by KREEF to satisfy the requirement including: Know the Code: Real Estate Ethics Online course (counts as 3 hours law & 3 hours elective CE) Is It Ethical To… Classroom course at Convention (counts as 3 hours elective CE) Ethics & Real Estate Classroom course in Madisonville (counts as 3 hours elective CE) Ethics & Real Estate Classroom course in Owensboro (counts as 3 hours elective CE)

Online NAR designation/certification courses now count for KY CE www.kreefonline.org is the portal to the online courses under NAR’s official family of designations and certifications including ABR®, AHWD, BPOR, e-PRO®, CIPS, GREEN, RSPS, SFR and SRES®.

REALTOR® University offers over 400 hours of online real estate and professional continuing education to help members build skills and earn designations and certifications. These courses not only count toward the designation and certification listed, but also as a GRI elective. Six of these courses, found under the “Kentucky Continuing Education” tab, also count for CE credit in Kentucky so earn your credits while starting down the path to a certification or designation.

Online CE: easy and convenient www.kreef.org > Online Education Courses are available to you 24/7 – all you need is a computer and internet access. It’s that simple. These courses can be taken at your pace. Finish the entire course in one sitting or you can pick up where you left off.

Know the Code: Real Estate Ethics 6 hours (3 hours law credit & 3 hours elective credit) Foreclosures, Short Sales, REOs & Auctions 6 hours (3 hours law credit & 3 hours elective credit) Environmental Issues in Real Estate 6 hours (3 hours law credit & 3 hours elective credit) Real Estate Finance Today 3 hours (3 hours elective credit) Fair Housing 3 hours (3 hours law credit)

Live web cam classes – CE and Core www.kreef.org > Live Web Cam Classes Take your CE or Core in a very innovative way – online with live instructor interaction but without the final exam to pass. These courses are offered at times convenient for your schedule and assistance is offered to help alleviate any concerns prior to beginning class. All you need is a web cam with audio so the instructor can monitor your presence during the class. Don’t let the format scare you. It’s really simple and, once you finish class, you can Skype all your friends to let them know how tech savvy you are.

Scholarships available for $10,000 graduate program A scholarship is available to KAR members for $10,000 to attend REALTOR® University’s Master of Real Estate program, a unique, exclusively online curriculum that caters specifically to the needs of real estate professionals. The deadline for submitting applications is Friday, September 14. To learn more or download an application, visit www.kreef.org > Scholarships.

FALL 2012 KENTUCKY REALTOR® 19

Tech Tips

Four Agreements of Online Communication and Social Media

by Doug Devitre, Presenter at the 2012 KAR Convention & Expo

I’m really trying to understand the way my mind works and maybe you are too.

Don’t you wonder sometimes why…

Some people don’t call you back Some people ignore your messages Some people stop working with you The problem now is there are so many ways of communicating online, through mobile devices or by social media, that we just don’t have time to get back to others.

What happens?

We take it personally We make assumptions We create false stories in our mind that keep us from truly understanding why others don’t get back to you when you want and they repeat over and over until they become our reality.

Recently I was recommended a book - The Four Agreements: A Practical Guide to Personal Freedom (A Toltec Wisdom Book) - and it is really helping me think deeper about how I work with others.

There are some issues that hold us back from getting what we want in life and if we have a clear understanding of what happens in our mind, we can really start to do some amazing things.

The four agreements include: Being impeccable with our word Don’t take it personally Don’t make assumptions Always do your very best These might sound a bit cliché, but when you dig down deep to the way you think about these ideas, they will transform how you live your life.

Let’s take into context the four agreements, how they relate to communicating online and how you can apply them in your online communication with others.

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Agreement #1: Be impeccable with your word (with your profiles, statements and dialogue online) The best way to keep your promises to yourself and others is to not make any promises at all (only joking). But, if we weren’t seen as competent or trusted, no business would ever take place. It is simple to say you are going to do something and when you don’t, your reputation will be damaged until the situation is made right. We make these agreements with ourselves and to others. When you say you are going to write a blog post once a week and don’t, it develops a habit that continues to other activities in your life. When you advertise a feature of a product and don’t follow through, others will lose trust. If you inflate your importance or make unrealistic claims that are not true, then you are not being impeccable with your word.

Agreement #2: Don’t take it personally (with comments or dialogue) What you post online is who you are as an individual as others perceive it to be even though that idea may be far from the truth.

What you say or write isn’t always what another understands. It’s very easy to interpret a message in a completely different context.

If you post a message or comment on someone else’s wall, blog or profile and they don’t respond, would you resent them for it? If someone disagrees with you in an online discussion board, would you take it personally? If someone writes a post you disagree with, do you take that personally?

You can choose to engage in the dialogue or move on. If you take the comments personal by fighting back and attacking the person online then chances are a potential relationship could be burned.

If you don’t respond then how will the other person know you disagree? I’ve found it best to discuss a misunderstanding in private because others appreciate the personal attention to be heard and to settle the issue without trying to duke it out online for others to see.

Agreement #3: Don’t make assumptions (with others’ activity) If you are my friend on Facebook or follow me on Twitter, you have seen me post some pretty random things that are meant to be funny, however, some can take my humor out of context. I’ve been called unprofessional, rude and even a REALTOR® hater when that couldn’t be farther from reality (at least in my opinion).

We are judges by habit. Everything we see or read we form an opinion based on our past experiences. I was in a seminar recently that said when we meet someone for the first time about 70% of our assumptions are not true. I would guess the same could be said from online communication.

Why?

Life Lesson Learned

In a world of 140 characters or less or 30 minutes to write a blog post, we may not have the time to write out every scenario possible which leaves others asking: Was he/she talking about me? What did he/she mean by that? Should I get involved with this discussion?

I discovered the book “The Four Agreements” when it was recommended by a relationship expert to improve the relationship with me and my significant other. I downloaded the audio book and listened to it 5 times. I’m now aware of the habits that kept me from really growing relationships with those who I’ve just met or may have known for years. After reading this book, I understand that I need to revisit many relationships and be clear on why we stopped working together.

If you make assumptions, then you are selling yourself and other person short of a complete understanding.

To avoid making assumptions, ask others…

How do you mean?

What else is missing from this?

Do you have any facts/statistics to support your statements?

When have you broken one of these agreements?

How has it hurt one of your relationships?

When you discovered the reality, how were you able to make the change?

Agreement #4: Always do your very best Every day we fail at technology when we try something new. We didn’t write the correct message, press the right button at the right time and we know we could always do better.

If you end each task, each conversation and each day knowing you did the very best you can, there is no room for self doubt about your ability to perform. Maybe the job wasn’t done right. Failure is only feedback.

Look at each task with technology or communicating online as an opportunity to make mistakes and learn from each one to do better next time. If you beat yourself up over the fact that it isn’t perfect, then you will never grow the skill sets needed in order to compete in today’s challenging market.

Doug Devitre, presenter at the 2012 KAR Convention, delivers low budget, high impact technology solutions for real estate professionals and associations to maximize return on investment for both money and time. Learn to build an online brand using cutting edge web 2.0 methods and communicate your message specific to the type of consumer that you serve. Find out more about Jeff and the Convention by visiting www.kar.com > Events > Convention & Expo.

FALL 2012 KENTUCKY REALTOR® 21

Local Association News Madisonville-Hopkins County Board In response to some difficult events during the last school year, the MHCBOR decided to do something to deter incidents of bullying in the schools. Partnering with the Family Advocacy Center, the Board plans, at the three area middle schools, to address “bullying,” how it might be prevented and how to respond during October which is No Bullying Month. As a way to fund the program, the MHCBOR sponsored a Poker Run and raised $300 to help offset the costs. Twenty-two bikes signed up and traveled from Madisonville to Sturgis to Sebree to Calhoun and back to Madisonville. Lots of prizes donated by area merchants and businesses were handed out and the event received a great response from the bikers who were hoping this would turn into an annual event.

Cumberland Valley Board The Cumberland Valley Board hosted its annual charity fund raiser night at Levi Jackson Park. Over 100 folks were in attendance at the country themed event with activities surrounding the evening included roping the steer and face painting as well as a competition for the best country themed table. The CVBR raised $1,215 for several charities including the London and Corbin Community Backpack Clubs, Laurel-London Optimist Club, ComeUnity Cooperative Care, Emergency Christian Ministries, Christian Shelter for the Homeless and the Cumberland Valley Children’s Advocacy Center. At an earlier event in June, the Board also raised over $6,300 for Relay for Life.

Old Kentucky Home Board The Old Kentucky Home Board has negotiated space in the Kentucky Standard, the local newspaper for Bardstown, to report on local housing issues and to inform the public about the “real estate” happenings and general advice about buying and selling homes. The Board has received a very positive response from the public from the column about how helpful the articles are and for making the real estate process a little easier for them to understand. This column has helped our REALTOR® organization to have a bigger presence in the marketplace!

Mayfield Graves County Board The Mayfield Graves County Board has taken strides to create a unique image by promoting Mayfield and Graves County as the Heart of the Jackson Purchase. The association has opened a new office in the Fountain Square Shopping Center and is hosting bimonthly meetings at local restaurants in an effort to showcase what is available in the community and with community leaders as guest speakers. The Board has also implemented a new web page www.mayfieldgravesrealestate.com with a community marketing video and added a Facebook page to their outreach. To support the community, the Board has worked with local middle schools in Reality Zone activities, supported the local Relay for Life and at the past Christmas parade a local brokerage took home first place in the business category.

To top it off, the Mayfield City Council recently recognized another local brokerage as a business contributing to community growth.

Northern KY Association The Northern KY Association’s most recent project was with the Housing Opportunities of Northern Kentucky (H.O.N.K.). Northern KY provided H.O.N.K. with money and labor for home rehabs on two separate properties in two different counties. This particular project consisted of landscaping where Northern KY raised $1,000 and provided all the labor.

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By working with H.O.N.K., the Northern KY Association is making home ownership possible for those on limited incomes.

Pioneer Trace Board The Pioneer Trace Board, through the generosity of the brokers in the area, donated $1,000 to the Mason County Red Cross to benefit victims of the March storms that devastated much of Kentucky.

The monies benefited residents in the Peach Grove area of Pendleton County. This area was hit hard by the storm but received very little publicity about the amount of devastation. Also, the Pioneer Trace Board recently launched a new website for their members. The site, the first for the board, also features valuable information for consumers. Photo: Rebecca Cartmell, Executive Director of the Mason County Red Cross, received a check from REALTOR® members Jackie Thomas and Charlene Duncan.

Kentucky-Barkley Lakes Board The Kentucky-Barkley Lakes Board is celebrating 50 years of service to its REALTORS® and the local community. The KBL board was created in 1962 with Pal G. Howard serving as the first president. The board’s current president, Brenda Sirls, has set a milestone, serving in that position five times - 1990, 1995, 2004, 2005 and now in 2012. Over the past 50 years there have also been countless other REALTORS® who have volunteered their time, and served as officers and directors with great appreciation from all.

Greater Louisville Association The Greater Louisville Association recently hosted a new fundraising event, the GLARPAC Bourbon and Wine Tasting.

REALTORS® that attended enjoyed six tastings from four different wines and bourbons. While the event was enjoyed by everyone, it also raised over $12,000 for the GLAR Political Action Committee.

Hopkinsville Christian & Todd County Association HC&T County Association held their first REALTOR® - Military Appreciation Picnic (R-MAP). They invited all military families that had purchased homes in the area to come spend a Sunday afternoon together with members. There were bouncers for the kids (and some adults), food and fun. The Association provided goody bags with maps of the area, the latest Community Guide & Chamber Directory, information about the secrets of Hopkinsville and the out of the ordinary places to go. Members and businesses in the local community got involved by providing door prizes. Gay Wilson, AE, stated, “It was awesome to see the members of our Association all working together to serve and show their appreciation to the Ft. Campbell military families living in our area.”

Benton named KY’s Best Place to Raise Kids for 2012 BusinessWeek and Bloomberg Rankings evaluated 4,169 places with a crime index less than 10 percent above the national average, populations between 1,000 and 50,000 people, and median family income within 20 percent of the state median, using data from real estate data company Onboard Informatics. Each place was assigned a score based on information about education, economy, crime, amenities, air quality and ethnic diversity. School performance, expenditures, and income were given the most weight. Benton was chosen as the top place in the state.

Kentucky towns named to “Best Small Towns in America” List The “Best of the Road” contest, put on by USA Today and Rand McNally, announced category winners for the best small towns in America. The winners were determined through a nationwide contest of 650 nominated towns, where judges were sent cross-country to visit each of the 30 finalists in five different categories, including Most Beautiful, Friendliest, Most Fun, Most Patriotic and the town that has the Best Food. Kentucky trumped the list in two categories – with Bardstown named Most Beautiful and Murray named the Friendliest.

Most Beautiful: Bardstown - What made it stand out: “Bourbon is Bardstown’s history and tradition and the countryside is beautiful, but we probably got fewer scenic shots in Bardstown than anywhere else,” admit the judges about their visit to central Kentucky’s Bluegrass Country. Instead, they say, “the people turned us around. We realized maybe we’re not just here to see mountains and rivers, maybe there’s something else. Our hearts are still in this place.”

Friendliest Murray - What made it stand out: Since it’s located less than a half hour from Kentucky Lake and the Land Between the Lakes National Recreation Area, the town is a hub for such outdoor activities as hiking, camping, swimming, and fishing. But it also “feels like home in Murray more than anywhere else,” judges say. Its residents “had a way of bringing you in, and we made friends. This is the only town where we went into people’s homes.”

Berea and Louisville named top art destinations AmericanStyle magazine’s annual readers’ poll recommends Berea and Louisville as top arts destinations for collectors and travelers who love galleries, museums and arts festivals. This ranking and designation is highly coveted by tourism and arts promoters.

Each year, readers tell AmericanStyle their favorite cities for viewing and buying fine craft and art. In the 2012 AmericanStyle poll, Berea has been ranked No. 21 among small cities and Louisville was ranked No. 23 among big cities. These were the only Kentucky cities to receive recognition in the 2012 poll.

Augusta, Kentucky named a stunning riverfront town In a recent article by Budget Travel, Augusta, KY was named as one of the top ten most stunning riverfront towns. Here is what was written: Why Go: Augusta’s riverfront setting is so idyllic that a movie adaptation of Mark Twain’s Huckleberry Finn was filmed here. Its ferry service—one of the last remaining on the Ohio River—has been operating since 1798.

What to Do: Trace singer Rosemary Clooney’s life story (including tidbits on nephew George) at her childhood riverfront home. The Augusta Art Guild holds its annual Art in the Garden festival in June, with visual art, jazz performances, and food vendors set along the riverbank.

Several Kentucky cities are playful Playful City USA is a national recognition program through KaBOOM! that honors cities and towns that make play a priority and use innovative programs to get children active, playing, and healthy. These communities make a commitment to play and physical activity by developing unique local action plans to increase the access to play in their community. Some of the most

innovative concepts and cost-effective programs are being developed in Playful City USA communities.

Now in its 6th year and through an application process, Playful City USA designees map local playspaces, complete a needs assessment, and develop an action plan that identifies a minimum of three policies, programs, or initiatives aimed at increasing access to play at school, in neighborhoods, and through community engagement. Kentucky cities that made the list in 2012 are Beattyville, Campbellsville, Mount Sterling, Murray, Pikeville and Williamstown.

Kentucky named to best state for business lists in 2012 Kentucky is the 25th best state in which to do business among the United States, according to a survey of CEOs by Chief Executive magazine. The state earned three stars out of five for its taxation and regulations; four stars out of five for its work force quality; and four out of five stars for its living environment. Last year it was ranked 17th, a drop of eight places for 2012, but down only two places from 2010.

A report released from CNBC of top states for business has Kentucky listed at 36th overall, however, it does place Kentucky at the top in the category of “cost of doing business” and fourth for “cost of living.”

Smart Money picks its retirement spots in Kentucky SmartMoney magazine identified four cities in Kentucky that stand out as inexpensive, but culturally vibrant, places to retire. The cities are Bowling Green (for entrepreneurs), Murray (for fisherman), Lexington (for horse lovers) and Paducah (for folk art lovers). Here is what was said for the state as a whole: For starters, the Bluegrass State has a cost of living more than 14% below the national average, the median home here costs just $113,800, according to Sperling’s Best Places. Sales and income taxes are slightly below average and the state doesn’t tax the first $41,000 of retirement income, pensions or annuities. Nor does it tax Social Security.

What’s more, you don’t have to sip mint juleps or bet on the ponies to find yourself at home in Kentucky. True, the state produces 95% of the bourbon consumed in the U.S. and three out of four Kentucky Derby winners are bred here. But the Bluegrass State, named for the abundance of fields covered with the thick, unique colored grass, is full of natural beauty and outdoor attractions like hiking, biking, boating and fishing.

Retirees also enjoy the friendly vibe and one-of-a-kind culture, residents say. Thanks to the state’s location, Kentuckians are known for their mix of southern hospitality and Midwestern warmth. Home to bluegrass music, the state has a unique musical heritage that appeals to folk and country music fans.

Lexington is most e-literate According to data from the Atlantic, Lexington, Kentucky is the most e-literate city in America. To identify the most electronically literate places in America, the group analyzed the Priceonomics database of eight million electronics for sale by city and examined how prevalent the Amazon Kindle was by city to rank how popular e-reading was across the nation (we also examined Nook sales, which didn’t change the results). To their surprise, the most populous and culturally-reputed cities in America did not rank among the most digitally literate.

Local boards/associations are encouraged to submit information for this section. Pictures must be at least 300dpi. Send all association news to hcooper@kar.com.

FALL 2012 KENTUCKY REALTOR® 23

By The Numbers

$3,611

The average closing cost in 2012 for a home in Kentucky versus $3,627 in 2011, according to Bankrate.com.

This ranking pushes Kentucky up to 32nd overall from 45th last year. Kentucky is still below the national average of $3,754.

95

%

Among those who refinanced in the second quarter of 2012, more than 95 percent opted for a fixed-rate mortgage, according to the Freddie Mac Quarterly Product Transition report.

700,000

The number of households that saw their negative equity move into the positive territory in the first quarter of 2012. According to the CoreLogic report, 11.4 million - or 23.7% of mortgage borrowers were underwater on their homes at the end of March. That’s down from the 12.1 million, or 25.2%, of borrowers who were underwater three months earlier. With the rebounding of home prices being reported, the number of homes underwater is sure to look more promising now and into the future.

123456 The password you should never use (among others) and ranks as the second most frequently used behind – you guessed it – password. With all the hacking going on in the cyber world, pick something much stronger to guess. Use Google to search for ways to create a hack-proof password.

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According to a recent poll by TD Bank, the percent of 18 to 34 year-olds who intend on buying a home.

That makes sense since a similar percentage of current homeowners - four out of five - purchased their first home when they belonged to that age group.

1.1

A report by the National Association of Hispanic Real Estate Professionals called “The State of Hispanic Home Ownership 2011” showed the purchasing power of Latinos grew to this amount in 2011 and is projected to reach $1.6 trillion by 2016. The Hispanic population in the U.S. more than tripled between 1980 and 2010.

trillion

8.2 percent

Kentucky’s seasonally adjusted preliminary unemployment rate in June 2012 for the second straight month, according to the Office of Employment and Training (OET), an agency of the Kentucky Education and Workforce Development Cabinet. The preliminary June 2012 jobless rate was 1.4 percentage points below the 9.6 percent rate recorded for the state in June 2011.

84

%

50percent

Between 2000 and 2010, the foreign-born population increased by more than 50 percent in nine states, including Kentucky.

5.3 billion

According to a report from the Gartner Group, the number of mobile device users at the end of 2011 or about four out of every five people.

12.2 cents The Kentucky Department of Revenue has set the 2012 real property tax rate at 12.2 cents per $100 of assessed value, the same as it has been since 2008.

3.8

%

The percent of the new Medicare Tax that takes effect on January 1. It is not a real estate tax on all home sales nor is it a sales tax or transfer tax. It is imposed ONLY on those with more than $200,000 of Adjusted Gross Income (AGI) ($250,000 on a joint return). To learn more about the tax, please read more on page 14.

Housing Stats

Finally, the bottom is in the rear view With mortgage rates at record lows and reports the economy is slowly improving, housing seems to have hit bottom nationwide with most areas starting the process of bouncing back. Even the mainstream media is on board with the turnaround. Reuters, the Wall Street Journal and CNN are just a few that have described the current market as “heating up.”

There is also a lot of focus on the rent versus buy argument as well with many outlets throwing around comparisons. The message is the same – most areas, 75 percent of the 200 largest metros according to several sources citing results from a Zillow survey, saying that buying outweighs renting. In fact, the data shows that in these areas, the “breakeven point,” where owning makes more financial sense than renting, is three years or less.

In Kentucky, the statistics back up what is being said across the country. For the first half of 2012, homes sales in the state are up 13.29 percent compared to the same period in 2011. Every month through 2012 so far has shown a significant increase over the prior year with May improving over 21 percent. The first quarter home sales showed over a 12 percent increase comparatively while the second quarter improved over 14 percent. In fact, during the second quarter of the year, the six largest local associations in Kentucky showed double digit growth in home sales compared to the same period in 2011.

Even with the strong uptick in sales, Kentucky home prices have not been negatively affected. Through the first six months of the year, prices have remained strong improving a quarter of a percent. Prices in the first quarter improved just over two percent with the second quarter coming in at just under half of a percent increase versus 2011.

The latest news concerning unemployment in Kentucky is positive as rates fell in 108 counties for June 2012 compared to June 2011. The June rate of 8.2 percent is down from 9.6 percent the previous year. An economist with the Office of Employment and Training in Kentucky described the current trend as a “growth path,” good news for the Commonwealth.

McDonald continued, “I like what I am seeing and hearing about the real estate industry from our members. The data in Kentucky is proving, so far, that it is a positive year for housing and we hope this continues throughout the rest of the year.”

1st Half 2012 vs 1st Half 2011 BOARD/ASSOCIATION

SOLD SOLD SOLD MEDIAN MEDIAN MEDIAN 2012 2011 % PRICE 2012 PRICE 2011 %

REGION ONE Henderson-Audubon Board

179

138 29.71%

$93,750

$99,625

-5.90%

Hopkinsville-Christian Board

143

157 -8.92% $110,375

$94,725

16.52%

Kentucky-Barkley Lakes Board

149

121 23.14% $100,900

$90,350

11.68%

Madisonville-Hopkins Board

194

209 -7.18%

$89,975

$74,875

20.17%

Mayfield-Graves Board

155

169 -8.28%

$67,075

$73,125

-8.27%

Murray Calloway County Board

125

99 26.26% $122,375

$125,000

-2.10%

Greater Owensboro Board

590

512 15.23% $105,000

$103,050

1.89%

Paducah Board

296

258 14.73% $119,375

$134,725

-11.39%

Pennyrile Board

120

151 -20.53% $92,750

$108,750

-14.71%

REGION TWO Central Kentucky Association

269

271 -0.74%

$89,250

$92,300

-3.30%

Heart of Kentucky Association

804

765 5.10%

$124,750

$120,000

3.96%

Old Kentucky Home Board

232

217 6.91%

$106,700

$100,725

5.93%

“It’s great to see the improvements in the housing market taking hold both locally and nationally,” said Ann McDonald, president of the Kentucky Association of REALTORS®. “Housing affordability is such a strong component of the current housing market and, in Kentucky, with median home prices around $105,000, it’s already much lower than much of the country. Kick in the record low interest rates and you have a win-win situation. I truly have never seen a better time to buy.”

REALTOR® Association of SKY

789

657 20.09% $123,250

$114,975

7.20%

One segment of housing that may see increased activity, as reported by Reuters, is short sales. Within the report, Realtytrac, a firm that monitors real estate foreclosures and short sales, is predicting that 2012 may be a peak year for short sales for a number of factors. Lenders are realizing they are better off accepting partial payment on a mortgage than taking a home in foreclosure with some creating expedited short sales procedures in which they will pre-approve a home for a distress sale and even pay the seller to get the deal done. Another reason is that a valuable tax break, if not renewed, will not be available to sellers after the first of the year. Fortunately, Kentucky’s situation has improved since the first of the year. In July, the state had one in every 2,826 housing units facing foreclosure compared to one in every 624 in January.

Lexington Bluegrass Association

Russellville-Logan Board

77

54 42.59%

$83,660

$83,875

-0.26%

Shelbyville Board

238

215 10.70% $136,375

$132,000

3.31%

South Central Kentucky Association

153

121 26.45%

$88,625

0.28%

$88,875

REGION THREE Greater Louisville Association

5,886 5,207 13.04% $136,500

$130,725

4.42%

REGION FOUR 3,697 3,163 16.88% $134,100

$134,875

-0.57%

REGION FIVE Northern Kentucky Association

2,311 1,929 19.80% $125,250

$131,000

-4.39%

REGION SIX Ashland Area Board

324

299 8.36%

$112,000

$85,000

31.76%

Cave Run Association

88

82

7.32%

$76,825

$94,750

-18.92%

Cumberland Valley Board

226

207 9.18%

$78,250

$97,450

-19.70%

Eastern Kentucky Association

127

131 -3.05% $111,000

$120,863

-8.16%

Madison County Board

461

424 8.73%

$124,000

$117,375

5.64%

Pioneer Trace Board

96

100 -4.00%

$67,450

$68,250

-1.17%

Somerset-Lake Cumberland Board

277

234 18.38%

$91,250

$97,000

-5.93%

18,053 15,935 13.29% $105,750 $105,500

0.24%

Totals

FALL 2012 KENTUCKY REALTOR® 25

Community Profile

10 Things That Make Us Proud to Be Kentuckians

By Amanda Hervey and Rachel Brewer

What is it about this great Commonwealth that makes our hearts swell so? It was difficult, but we’ve narrowed it down to 10 great places, industries and traditions that we can’t brag enough about to our friends and neighbors unlucky enough to live outside of our borders.

Cumberland Gap Located where the boundaries of Kentucky, Tennessee and Virginia meet, the Cumberland Gap was the first doorway to the West. The naturally formed gap was frequently used by herds of animals, Native Americans and pioneer hunters, but it wasn’t until 1775 when Daniel Boone led an expedition to widen the path that the Cumberland Gap claimed an important place in American history. Made wide enough to accommodate wagons, the gap played an integral role in western expansion with as many as 300,000 early migrants passing through on their way into Kentucky and across the country. Today, 1.2 million people still visit the magnificent site annually.

Basketball If you’ve ever worn a University of Kentucky t-shirt on vacation, you’ll know what we’re talking about. It’s that unspoken moment you have with the guy in the University of Louisville shirt when your eyes meet and you silently acknowledge that despite your differences, there’s no place like home. For generations, basketball has made the hearts of Kentuckians swell with pride, and it doesn’t matter if they are True Blue or cheering on the local high school team. Others may not understand, but if you’re a basketball fan, you know it has everything to do with tradition and a vision for the future, and that is the same recipe for success that has driven this great Commonwealth to become great.

Keeneland Go on, admit it. You love being the one to take your out-of-town friends to Keeneland for their first racing experience. We don’t blame you, either.

From the first heartpounding moment those gates open and you hear that Thoroughbred thunder booming across the track to the sweet smell of bourbon bread pudding being carried by an autumn breeze, you don’t have to win a race to go home feeling lucky. If you haven’t done so before, make a point to catch one of the morning workout sessions this season and you just may find something else about Keeneland that will make you gush with pride.

Kentucky Wineries Long before California became known as wine country, Kentucky was home to the first commercial vineyard in the United States and produced more than half the nation’s grape and wine output. As Kentucky farmers work to reclaim that industry, we feel the need to

26 www.kar.com

raise a glass to their efforts. From creating award-winning varietals that have caught the attention and affections of industry critics to transforming their farms into peaceful retreats and tasting centers that rival those in larger markets, Kentucky’s wine industry has given us a lot to savor.

Berea In a world that is increasingly consumed with consumption and mass production, it’s nice to know a place like Berea still exists and even better to know it’s close to home. Named one of the nation’s Top 25 Art Destinations by AmericanStyle magazine, Berea has grown to be far more than a local treasure. Providing guests with an opportunity to shake the hands of the people making their goods may be trendy these days, but to the folks in Berea, it’s just good old Kentucky hospitality.

The Old State Capitol When he was just 25 years old, an architect named Gideon Shryock designed the Old State Capitol. He envisioned a building that would bring together Kentucky’s rich frontier past with the values and traditions of Greek democracy. The result was a building modeled in the Greek-Revival style that has long been considered a masterpiece capturing the spirit of the Commonwealth. The building was replaced by the New Capitol in the early 20th century, but we continue to prize the Old Capitol as a reminder of our story as Kentuckians.

Kentucky Derby The Kentucky Derby is a highly celebrated occasion on the first Saturday in May. Who doesn’t cry during the playing of “My Old Kentucky Home?” Kentuckians are proud to introduce new friends to Derby Pie, mint juleps, and the greatest two minutes in sports. But with 150,000 visitors each year, the Kentucky Derby has always been a famous and popular event drawing observers from across the state, nation and around the world to Churchill Downs. The glamour and excitement attract the rich and famous.

Past guests in the prestigious Millionaire’s Row have included Queen Elizabeth II, present and former presidents and many other celebrities, such as NFL Hall of Famer Jerry Rice and actor Jack Nicholson to name just a few.

Moonbow at Cumberland Falls “Why are there so many songs about rainbows?” and so few about Moonbows? It must be because these extremely rare lunar rainbows can only be viewed at a handful of places around the world. In fact, the only spot in the Western Hemisphere to see one is at Cumberland Falls in Whitley County. Moonbows are created when the light of a full moon refracts through the mist from the falls. Imagine all the beauty and grace of a rainbow combined with the mystery and romance of moonlight. Visit Cumberland Falls and be one of the lucky few to see this natural wonder in person.

Kentucky Horse Park The first World Equestrian Games were held in Stockholm, Sweden 20 years ago. Since then, they have been held in the Netherlands, Italy, Spain and Germany. In 2010, the games were held outside of Europe for the first time, and the honor went to the horse capital of the United States: Kentucky! The games, which were sponsored by Alltech, were held at the Kentucky Horse Park, and organizers anticipated the sale of several hundred thousand tickets, with visitors and participants representing more than 60 different countries. That’s a lot of people walking around on Kentucky’s famous bluegrass and enjoying our Southern hospitality. Who knows how to throw one heck of a party? Kentucky!

Bourbon Early whiskey shipped from the Bourbon County region of Kentucky was referred to as Bourbon Whiskey and was eventually shortened simply to Bourbon. Bourbon is classified as a distilled spirit made from corn mash and aged for 2 to 24 years in new, white oak barrels. The limestone-rich but iron-free water of Kentucky plays an essential role in giving bourbon its unique and wonderful flavor. Bourbon is truly an example of local distillers using local products to create a world-class liquor. Kentucky produces 95 percent of the world’s bourbon, and every year millions of gallons are enjoyed around the world.

Reprinted with permission of

Special subscription rates are available for Kentucky REALTORS®.

Kentucky Monthly is an easy and thoughtful client gift. Call or email Lindsey at 888-329-0053 or lindsey@kentuckymonthly.com

What Makes You Proud to be a Kentuckian?

We asked readers like you what makes them boast about their old Kentucky home. Here are just a few of the people, places and things they found to be brag-worthy.

Kentucky’s parks make me proud.

We are blessed with so many beautiful places.

Patricia Lindsay Hinson Frankfort

I love how green the state is. I moved from my home state of Tennessee specifically because the Nashville area has become so overgrown and citified.

It feels like there is still the promise of nature and quiet just outside of the

city limits.

Marijka Walker Mount Sterling

I’m proud of Red River Gorge and Natural Bridge. People come from all over the world to visit those places and there are so many Kentuckians who have never heard of it or have never been.

June Abner Powell County

All of the family owned country stores out there on the backroads of Kentucky that still greet every customer as they walk through the door.

Amy Roe Williamstown

FALL 2012 KENTUCKY REALTOR® 27

From the Helm

Kentucky Does Matter The world just concluded the summer Olympics in London. There were many great performances by America’s athletes (104 total medals – 46 gold – and tops for the Games) and those from all over the world. America was unified behind the efforts of all our athletes, win or lose.

Now we begin the election season in Kentucky and across the country. The President and many federal, state and local officials are up for election (the difference between elections and the Olympics is there is only a first place finisher with elections).

The campaign rhetoric is sure to get hot on many fronts from television and radio ads to speeches and debates. Issues affecting home ownership, such as the mortgage interest deduction, finance reform and tax on services, will be of particular interest to real estate professionals in this election.

From a historical perspective, Kentucky has had three men run for President. The Great Compromiser, Henry Clay, ran for President 4 times without success. Unfortunately, Clay’s ability to forge compromises for the good of the country in that tumultuous period of the first half of the 19th century worked against him. Even that long ago, it set a precedent for the future, as today’s compromisers are losing a lot of elections because of their willingness to reach across the aisle to find consensus.

John C. Breckinridge ran for president in the tumultuous election of 1860 as a pro-slavery Democrat. The slavery issue split the Democrats that year into Northern and Southern branches. That split allowed native Kentuckian, Abraham Lincoln, to win the presidency without his name appearing on ballots in the south. The election set forth events that started the Civil War and its outcome helped forge the country we are today.

In many states, hundreds of thousands of dollars are being spent with the intent of convincing voters to vote for a particular candidate. In Kentucky, we won’t see a lot of those dollars for the presidential race as candidates, to a large extent, have determined that Kentucky doesn’t matter. But Kentucky DOES matter. Some voters believe at the point of Kentucky reporting its outcomes (we are one of the first to do so), the presidential race is a foregone conclusion. Kentucky’s election results, not just in the presidential race, but in congressional & state races as well, could be the bellwether predictor of things to come. Polls close in Kentucky at 6 pm - national news time for most major cities east of the Mississippi river – and the announcement of Kentucky election results could impact the rest of the nation.

and through our government affairs efforts, we advocate for homeownership – local, state and national.

On election night, let’s show the country that Kentucky DOES matter. Then, let’s show our public officials that REALTORS® not only vote but that our voices deserve to be heard.

This election is bound to have importance for all of us. We will have different candidates to whom we show support. But on the issues important to us as real estate professionals, we should all be united. Just as we were in those two weeks watching the events unfold, and records being broken, in London.

Susan W. Helm is the Executive Vice President of the Kentucky Association of REALTORS®

Statement of Ownership, Management and Circulation The Kentucky REALTOR® (USPS 024-933) is published two times a year (Spring and Fall) for $10.00 per year by the Kentucky Association of REALTORS®, the subscription fee is $25 per year for non-members. The offices of publication and the headquarters and general business offices of the publisher, Susan W. Helm, are located at 161 Prosperous Place, Suite 100, Lexington, KY 40509.

The sole owner of the publication is the Kentucky Association of REALTORS® at the address listed above. There are no known bondholders, mortgage or other security holders.

Average # copies ea. issue during last 12 months

Actual # copies single issue nearest filing

Total # copies (net press run) 9,840 Paid/requested subscriptions 9,432 TOTAL PAID CIRCULATION 9,432 Free Distribution by mail 200 TOTAL DISTRIBUTION 9,632 Copies not distributed 208

9,880 9,318 9,318 250 9,568 312

Kentucky congressional races could also influence the states west of the Mississippi River. The margin of victory, results in incumbent races, political shifts in both the federal and state house and senate races all could show the nation what happens this important election night in Kentucky.

I certify that the information stated is true and complete:

As REALTORS®, the importance of involvement in the political process is crucial. Through our political action committee (RPAC)

__________________, editor

28 www.kar.com

TOTAL

9,840 9,880

Legal Update

Where Are We Now? Q & A with Finley Maxson, Senior Counsel, NAR Legal Affairs

Finley Maxson spoke to Kentucky REALTORS® during the Annual Convention last year in Lexington. KAR thought it was time to check back in with Mr. Maxson and get an update on the issues discussed last September, and any other issues that may be popping up around the county.

Q. At this time last year, you spoke with KAR’s Legal Affairs/

Risk Reduction Committee members about Mortgage Acts and Practices (MAP) Rule and its impact on real estate professionals who provide information to consumers about mortgage products. What can you tell us now about this issue?

A.

I don’t have much to report about the MAP Rule. As NAR stated when the Rule came out, this is a Rule where the FTC clearly considered real estate professionals and so obtaining changes to the Rule for real estate professionals was unlikely.

I have spoken with a few large brokers about their efforts to educate their licensees about the Rule, and many said that because of the record keeping requirements, they were limiting the salespeople’s transmission of mortgage information to consumers. I have not heard of the Federal Trade Commission (FTC), Consumer Financial Protection Bureau (CFPB) or a state attorney general initiating a prosecution of a real estate professional pursuant to this Rule.

Q. You also told us about the Mortgage Assistance Relief Services

(MARS) Rule. At that time, the FTC had just made the decision not to enforce provisions this rule against real estate professionals who help their clients obtain short sales. Is there anything REALTORS® need to be aware now of regarding the MARS rule?

A. As part of its effort to recodify the various rules that were

transferred to the agency, the CFPB solicited comments at the end of last year about possible changes to the various rules it was inheriting. The CFPB now has the rulemaking authority for a number of rules affecting the real estate industry, including the MARS Rule. NAR submitted comments during this period seeking to have the FTC’s enforcement stay against real estate professionals codified by the CFPB into the Rule as an exemption for real estate professionals. Currently, the CFPB is continuing to follow the FTC’s enforcement stay and NAR has not heard anything further from the CFPB about its comment letter. NAR is continuing to pursue an exemption for real estate professionals from this Rule.

Q. The National Association of REALTORS® Legal Scan released in

2011 identified the most important issues as a new property condition disclosure issue, short sales, REOs and bank-owned properties via foreclosure. What can you share with REALTORS about legal liability issues on the topic you consider most important for REALTORS® to learn about right now?

A. With the improvements in the property market recently,

hopefully we will begin seeing these issues fade into the background. As with all disclosure issues, the best practice is to be as upfront as possible about any issues related to the property requiring disclosure. The difficulty with REO properties is that the seller may never have even seen the property. In those cases, real estate professionals do need to exercise caution. But being upfront with the buyer and informing the buyer of this fact, having the seller complete the disclosure form and disclosing any other known defects on the property requiring disclosure should go a long way towards protecting the real estate professional from any claims.

Q. Have you seen any new emerging legal and risk issues that you have not seen prior to 2012?

A. The “emerging” issue that has come up the most over the

past year is licensees acting as property managers of vacant properties, which tracks with the emerging legal issues found during the 2011 Legal Scan referenced above. In many cases, the real estate professional begins managing the property after the vacant property has not sold and the owner has requested that the real estate professional undertake the property management for the property. While in some states separate licensure is required for property managers, this is not true everywhere.* The concern is that many real estate professionals do not know the basics of property management, and so a myriad of risk management can be triggered if the real estate professional is not careful.

We have recorded a podcast with a Pennsylvania lawyer discussing some of the things that real estate professionals need to be aware of when engaging in property management.

To listen to the podcast, visit www.realtor.org/podcasts > Legal Affairs Podcast.

*Real estate brokerage, as defined in KRS 324.010(1), includes “property management,” which is defined in KRS 324.010(9).

The Kentucky Real Estate Commission (KREC) issues only two (2) types of licenses - a sales associate’s license and a broker’s license. It does not issue a separate license for property management. For more information from KREC on property management, visit krec.ky.gov > About KREC > Newsletter Archive > Summer 2012 Issue, page 11.

FALL 2012 KENTUCKY REALTOR® 29

A Day in the Life of...

A Day in the Life of… an RPAC contributor Guy Montgomery, Louisville NAR President’s Circle, Golden R and 2012 NAR Hall of Fame Inductee Charlie Murphy, Lexington NAR President’s Circle, Golden R and NAR Hall of Fame Member

How many years have you been a REALTOR®?

Guy Montgomery: 39 years Charlie Murphy: 51 years When did you make your first RPAC contribution?

GM: I made my first $100 contribution when I was elected to the GLAR Board of Directors about 15 years ago. The year I chaired RPAC for our Board I became a major contributor. I contribute every year and encourage all REALTORS® to do the same.

CM: In 1969 I contributed $99 because I was asked to give.

In your opinion, why is RPAC so important for the real estate industry?

GM: The PAC affords us the opportunity to have our voice heard regarding legislation at all levels affecting how we do business. We don’t always get what we want, but our voice is heard.

CM: RPAC supports REALTOR® Party candidates to ensure the our message is heard at city hall, at the state capital and in Washington, DC when elected officials are deciding policy that impacts the real estate business.

What would you say to someone who hasn’t invested in RPAC on why they should?

GM: Local, state and federal legislation impacts our industry every day in a multitude of ways. Possibly even more important is how legislation impacts the public and we have a duty to protect the consumer during any real estate transaction. I look at being a REALTOR® as having three components: professionalism, education and political involvement.

CM: RPAC is your business insurance that helps protect and defend your industry.

Guy

Charlie

What has been the most important outcome of RPAC funds given to a candidate?

GM: We have been able to help educate the public about how candidates view our industry and our issues. Elected officials are willing to listen to our position on proposed legislation.

CM: The most important outcome is for the door of the legislator to always be open to REALTORS®.

What personal satisfaction do you feel knowing you are investing for the benefit of your industry?

GM: My PAC dollars, combined with others PAC dollars, gives our industry a “seat at the table” when legislation is proposed that impacts us or the consumer.

CM: I am very proud of my sustained 43 year commitment to RPAC. My contributions have helped put in place policies for the benefit of my personal brokerage and for the benefit of my peers.

And just as importantly, my investment has helped to keep harmful legislation from becoming law.

Outside of your career, what is your favorite pastime?

GM: My wife and I like to travel and spending time with our grandchildren.

CM: Currently, driving Ms. Becky (that’s my wife), going to gymnastics and watching FOX. What is the best advice you have ever received?

GM: I have two pieces of advice regarding the real estate profession.

1) When preparing to take my real estate exam, the course instructor told all of us to be involved and give back to our industry and 2) My dad, who was also a REALTOR® for 40+ years, told me to keep my car clean and my shoes shined.

CM: Treat people the way you would like to be treated. Live by the Golden Rule.

30 www.kar.com

THANK YOU 2011 Major Investors You continue to advance the REALTOR® Party

GOLDEN R

Todd Hyatt

H Tony Clark

Nina Kirkland

H Guy Montgomery

Constance Lawson

H Charlie Murphy

William Leslie

H Betty Schutte

Brenda Loyal

H John Weikel

Rue McFarland

STERLING R

Ann McDonald

Dennis Anderson C. Lamont Breland Steve Cline Jayne Cox Barbara Curtis John Davis Louise Edelen Carolyn Edwards Helen Fardo

Louise Miller Elizabeth Monarch Joann K. Risner Mary Anne Simmons Joseph Simms H Carl Tackett Harrell Tague Linda Wiley Melissa Winchell

Susan Helm

NATIONAL ASSOCIATION of REALTORS®

H Indicates NAR President’s Circle member.Hall of Fame members are in orange. RPAC Major Investors as of 10/26/2011 FALL 2012 KENTUCKY REALTOR® 31