KYREALTORSpring08 by Kentucky REALTORS

Kentucky

REALTOR ®

SPRING 2008

A publication of the Kentucky Association of REALTORS®

ENGAGE THE WEB: Social Networking Protect Your “Rep” On the Internet BECAUSE YOUR BUSINESS DEPENDS ON IT

Do You Present A True Picture? Castles In the Air: Condo Law Photos from Frankfort

Contents

Volume 1, Number 3, Spring 2008

IN THIS ISSUE A publication of the Kentucky Association of REALTORS®

President Robert A. Damron Eastern Kentucky Association of REALTORS®

Engage the Web

Housing Forecast

Protect Your Rep

President-Elect Jeffrey L. Smith Northern Kentucky Association of REALTORS® Treasurer John W. Smither, GRI Lexington-Bluegrass Association of REALTORS®

REGULAR FEATURES

Treasurer-Elect Santosh S. Bhatt, ABR, CRS Greater Louisville Association of REALTORS®

President’s Message

Executive Vice President Susan W. Helm, RCE susiehelm@kar.com

Tools You Can Use

Marketing/Communications Director Hunt Cooper hcooper@kar.com

Legal Update

Address letters and inquiries to: Kentucky REALTOR® 161 Prosperous Place 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® is published quarterly (Fall, Winter, Spring, Summer) by the Kentucky Association of REALTORS®, 161 Prosperous Place, Lexington, KY 40509. Application to mail at periodicals postage rates is pending at Lexington, Kentucky. POSTMASTER: Send address changes to Kentucky REALTOR®, 161 Prosperous Place, 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.

Legislative Update

KREC Information

Local Association News

Housing Stats

Community Profile

From the Helm

Code of Ethics

A Day in the Life of...

SPRING 2008 KENTUCKY REALTOR® 3

KAR News

Tackett Named to NAR’s Leadership Academy

Join KAR on Facebook

KAR’s Immediate Past President Carl Tackett is currently serving on the 2008 Leadership Academy for NAR. The program is designed to take local and state leaders to the next level by improving leadership skills and maximize leadership potential. The Leadership Academy is a nine-month, five-state training and development program that is structured around NAR’s national meetings, designed to groom future NAR leaders. Registration for the 2009 program is open, so if you would like to pursue leadership opportunities at the national level, check realtor.org for details.

Weikel Becomes RPAC Hall of Famer John J.Weikel II, a member of GLAR, became an RPAC Hall of Fame member in 2007 after meeting the qualifications. Weikel joins two other Hall of Fame members from Kentucky – William P. Snyder, GLAR, and Charlie L. Murphy, LBAR. To qualify, members must make RPAC contributions of $1,000 or more annually which result in an aggregate lifetime total of at least $25,000.

Want an easy (and fun) way to stay connected with other REALTORS® from across the state? Now you can with Facebook. The Kentucky Association of REALTORS® has formed a group on the social networking site to allow members the opportunity to network online and share information with the click of the mouse. In addition, KAR will use the site to notify members of upcoming events, classes and breaking news. The KAR group will remain “for members only” so you know you are in good company. If you are not currently on Facebook, getting started is easy. Just log on to www.facebook.com and set up a profile. It’s free and once you become a Facebook member, you can request to be added to the KAR group. Under the KAR logo on the right, click the link that says “Request to Join Group.” That’s all there is to it. To locate the KAR group, use the search feature or go directly to the group by typing http://www.facebook.com/group.php?gid=9244727021.

Join now and be one of the first members to the group!

REALTORS® in the Capital

Jim Schack and other NKAR members await testimony on the occupational tax issue.

John Chandler (left) and Tony Clark (right) prepare for the Board of Directors meeting.

Members take a break from networking and watching the UK game.

For more pictures from the Legislative and Business Meeting, go to http://kyrealtors.smugmug.com. 4 www.kar.com

President’s Message

Legislation, legislation and more legislation… It has been a hectic three months. With the legislature in session and the always present vigil of the legislation introduced, it has also been a long three months. KAR is always tracking legislation that would have an impact on our members, and always finding a few that would have a negative impact on our business. We have worked on, and had sponsored, a bill in the legislature that would affect commercial properties. This bill would define commercial real estate and lay out the procedures for out of state brokers/licensees who come into the state to transact business. I gave testimony before the License and Occupational Committee in the House on this issue, and not entirely due to my testimony, the bill passed the house 93-0, and has now passed the Senate. We will be working with the legislature over the summer and fall to form a single point of registering online for occupational and business license tax. Again I appeared before the Senate State and Local Government Committee and told the committee how important this issue is to the small business owners in Kentucky. We proposed a very general solution and we were received very well. This has been a thorn in our side for a long time, and we believe we have made enough noise to make state politicians listen. We will keep you informed of this very important issue, and other issues that are on our radar.

Robert Damron, 2008 KAR President

felt we would only be in the way during construction if we stayed. The renovation will include new windows, carpet, paint and installation of new walls to better accommodate visitors. The building will be better than new and should be something that will make every KAR member proud. Staff should be at the temporary location for about three months. In some ways, the last three months have felt stretched beyond their actual days, and in other ways, they have gone so quickly I wonder how time passes so quickly. Dealing on a daily basis with issues in the legislature and with the building, time seems to be a never ending challenge, but has seemed to have flown by in getting wonderful things accomplished for KAR. In any event, I can say it has been a busy three months, with travel to local associations, KAR and Frankfort. If I hadn’t been paying attention, I would have thought this was my only job, and without the support of our staff, it would not be a job that could be done.

We have some excellent volunteers that have made this year a lot easier.

We have some excellent volunteers that have made this year a lot easier. Our Quick Response Legislative Team has been available for discussion of issues on a moments notice. I commend them for giving of their time and ideas.

I would like to remind everyone that YOU are the important ingredient on these issues. If we ask you to call, PLEASE CALL your legislator and let them know about the issue at hand.

I look forward to seeing everyone at Lake Barkley in June, and wish everyone a prosperous spring.

On another note, we are currently in the process of TEMPORARILY moving our KAR headquarters to a new location. We are going to complete extensive remodeling and renovation at the current building and

Robert Damron 2008 KAR President SPRING 2008 KENTUCKY REALTOR® 5

Tools You Can Use

Marketing Minute

A report compiled by VisiStat, a provider of real-time Web site visitor statistics, shows the online habits of the real estate consumer when it comes to searching property listings and other industry information. The report reinforced the notion that consumers are using websites more frequently in their home searches. In fact, over 80% of today’s consumers use the internet to search for a home. In addition, the number of websites that cater to real estate is growing exponentially and the sites displaying home listings are increasing rapidly. Highlights from the report include: • Overall traffic growth for 2007 (over 2006) was 36.8% • Return visitors made up 47% of all website visits • 60.2% of web traffic to real estate sites came through a direct source • Google handled 71.4% of the search engine traffic • The average visitor clicked through 14 site pages during each visit • Monday and Tuesday were the most trafficked days of the week, with the highest activity in the 9 p.m. hour • March received the most visitor traffic of any month of the year

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Information by Zip Code Looking for a free and easy way to get demographic information about any area in the U.S.? Zip Skinny provides data on population, number of housing units, educational achievement, median household income, dominant occupations, marital status and more. You can even compare up to 20 zip codes. Visit ZipSkinny.com to get the latest side by side look into how the zip codes differ with neighboring locations in your area. Once you’ve gotten the skinny on your zip code, you can even put it on your own website. To do so, just click the Available Now link above the video at the bottom of the page and you’ll be whisked away to the "Create Your ZIPskinny Widget Here" page. You’ll see a bunch of sample charts and a video that shows you how to do it. Google Tracking for Everything Did you know that Google tracks all sorts of things you might not have known about! Simply add any of the numbers below to the search bar and let Google do the work… 1. Any tracking number from UPS, FEDEX or the US Post Office will direct you to your tracking info! 2. The VIN number from any automobile will bring up a list of entries including Car Fax reports! 3. An Area Code will bring up the city and state of origin! 4. A product UPC code will deliver all sorts of info on the product! And the password is... Having trouble coming up with the perfect password? Whether purchasing something online or signing up for some kind of newsletter, etc., a password is usually required. So what is the best strategy to use when creating a password? According to security experts, there are six rules that you should follow when making up a password. 1. They should be random. 2. They should be unique. 3. They should be, at the very least, eight characters long.

4. They should be a combination of upper and lowercase letters and there should be at least one number or symbol included somewhere. 5. They should be changed regularly and frequently. 6. They should be typed out manually each and every time it’s asked for instead of using the "Remember Password" feature By following these steps, you will have a secure password, which will help protect you from identity thieves and computer hackers looking to steal your personal privacy. Find Someone www.spock.com There has been quite a lot of buzz lately around a vertical search engine for people called Spock. You can search for people by name, e-mail address, tag, location, age and gender. For example, if you are looking for information on a particular person, you can type in his/her name and/or specify the other search parameters, such as location and gender. If you search for descriptive words or phrases instead of a person’s name, the results will still be lists of people associated with the query. This unique website can help find people that you have lost touch with or would like to find more information about. Sign-up for Spock (it’s free) and you will be given more options to manage your own profile and add information about how you are found on the internet. Free Templates officeupdate.microsoft.com/templategallery The next time you're looking for a template to use, try this website offered directly through Microsoft. If you use Microsoft Office Suite programs such as Publisher, Word and Excel, these templates are available without any cost and without the risk of spyware and viruses. Downloads are available with a simple click of the mouse. You will find templates for a multitude of topics, including stationary, cards, resumés, presentations, invoices, budgets, flyers and forms, just to name a few. There are even real estate specific templates under several of the categories.

Bits and Bytes

ZeeMaps is a website designed to help brokers, agents and other real estate professionals visually display the locations of properties for rent or sale on user generated maps. These maps are accessible anytime, anywhere as long as you have a web connection and can be printed and shared with clients. You can even publish to a website by embedding a few lines of HTML in your web page. A PDF file can be generated to allow easy printing of any map. ZeeMaps supports three kinds of maps; the most useful for real estate being the housing map tool which provides housing specific criteria such as price, MLS number, bedrooms and bathrooms as well as a photo and YouTube video link. Show a client a variety of listings by simply adding entries to a map and sending the map URL to your client. A password can be included so they can make their own changes to the map. For searching maps, a special search box has been tailored to the real estate industry so your clients can use maps to search for properties using real estate specific criteria such as number of bedrooms, price range, lot size, etc. Registration on ZeeMaps (to create your own maps) can be tricky. To register, click “sign-in,” enter your email and a password and then click on the "Not Registered?" link beside “Email.”That should have you up and running on a site that’s free to use.

SPRING 2008 KENTUCKY REALTOR® 7

Legal Update

Castles In The Air A Guide to Kentucky Condominium Laws

Doug Martin is Legal Counsel for the Kentucky Association of REALTORS® and is a member of Murphy & Martin, PLC in Lexington, KY.

Understanding condominiums is always difficult for clients. It just doesn’t make sense that one would put down hard earned cash and live in something that for all practical purposes is just air. (That’s right ... condominiums are air.) Condominiums can range from units in high-rise apartment-style buildings to townhouses, patio homes and multi-use projects. This article will walk you through the basics of how a condominium project is organized, and how all of the pieces fit together.

This idea of air space applies even to condominium projects on the ground. In town houses and patio homes developed as condominiums, the units are only made up of the spaces between the walls, ceiling and floors, and everything else (like the foundation, roof, floors, exterior walls, sidewalks and land), are common elements owned by all of the unit owners in common. The next basic elements of a condominium project are the “general common elements” and the “limited common elements”:

Basic Elements of a Condominium Project The first basic element of a condominium project is the “unit.” According to KRS 381.810(1):

“General common elements” — those features that all unit owners have access to and can use, such as a street, sidewalk, parking lot, lobby, elevator, tennis court, pool and clubhouse.

"Unit" means an enclosed space as measured from interior unfinished surfaces consisting of one or more rooms occupying all or part of a floor in a building of one or more floors or stories regardless of whether it be designed for residence, for office, for the operation of any industry or business, for any other type of independent use or any combination of the above uses, provided it has a direct exit to a thoroughfare or to a given common space leading to a thoroughfare; To better understand condominiums, think of why they were first developed – the conversion of high-rise apartments to individual ownership. Unlike a traditional home (where you own the land underneath your house), in a condominium you own the air space within your unit. This is because in a high-rise apartment, there is no land beneath you to own. In a high-rise apartment, what you own can only be measured by the distance between your floors, ceilings and exterior walls.

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“Limited common elements” — those features accessible or useable by only a limited group of unit owners, such as a private balcony, patio, driveway, garage, attic, storage room, assigned parking space, or HVAC or other utilities that service a limited number of units. All condominium projects are made up of three features — units, general common elements, and limited common elements. While attorneys and developers invent creative ways to allocate units and common elements, all condominium projects are still made up of just these three elements — units, general common elements and limited common elements. Percentage Interests in Common Elements It is the ownership of the common elements by the unit owners that distinguishes condominium projects from cooperatives and planned unit developments. In a

All condominium projects are made up of three features – units, general common elements, and limited common elements. condominium, the common elements are owned in common by the unit owners. In a cooperative, both the common elements and the units themselves are owned by the cooperative. In a planned unit development, the common elements are owned by the homeowners association, while the houses on lots are owned by the individual owners. When you take title to a condominium unit, you acquire not only the unit, but also an undivided ownership interest in the common elements. Thus, even if an exterior balcony is allocated for the exclusive use of a unit, that balcony is in fact owned in common by all of the unit owners. Your percentage of ownership of the common elements is determined by the percentage of the floor area of your individual unit in relation to the combined floor areas of all of the units in the project. If you own 1% of the unit space in the condominium project, you also own 1% of the common elements. A unit owner’s percentage interest is important because this number also determines their share of the condominium expenses. Unlike a planned unit development where everyone pays the same annual assessment, in a condominium project, the annual assessments against the unit owners are based on their percentage ownership interests in the common elements, and this varies from unit to unit. Condominium Formation & Operation To create a condominium project (known in Kentucky as a horizontal property regime), a developer must record a “master deed” (also called a “declaration of condominium”) that declares the developer’s intention to submit their property to the condominium form of ownership. This “master deed” allows units in the building (or buildings) to be individually owned, conveyed and mortgaged, just like a real piece of land. Along with the floor plans, the “master deed” also establishes the percentage ownership interests allocated to the various units, and describes the common elements and whether they are available for use by all unit owners or reserved for use by owners of specific units. Most condominium projects also establish a nonprofit condominium association, or “council of

co-owners,” to collect assessments and manage the repairs and maintenance of the common areas. The condominium association serves the same basic function as a homeowners association, except that the condominium association does not own any of the common elements. The unit owners are all members of the condominium association, and typically only unit owners may serve on the association’s board of directors. The condominium association is governed by its articles of incorporation and bylaws, which establish the basic ground rules as to how members, officers and directors make decisions, hold meetings, and become elected. In a mixed-use development, the developer may also record restrictive covenants to establish easement rights and to regulate how the condominium project interacts with adjacent properties. For example, one would typically find restrictive covenants recorded in a health-care type development, where a medical office building containing condominiums may sit next to a hospital or a convenience pharmacy store. While the author hopes that this article will be useful to REALTORS®, the previous discussion should not be viewed as legal advice. If you are seeking legal advice, please consult with a qualified attorney, who can guide you through this constantly changing area of law.

SPRING 2008 KENTUCKY REALTOR® 9

Feature Story

Engage the Web: Social Networking Reach out to your consumer

By Matthew Ferrara

uccessful sales professionals know their careers depend upon good networking. Connecting to consumers and other industry players remains the purpose of REALTOR® Associations, chambers of commerce, condo associations and country clubs. Networking is the source of new leads and referrals. Yet in a faster, busier world, where there’s less time to go to the club or make it to a meeting, social networking opportunities have evolved to take place more conveniently, with greater access for everyone. Social networking has moved online, all the time, on the web. Social networking online isn’t new. For nearly two decades, internet users have joined “discussion lists” and “chat groups” to make friends, exchange ideas and generate business. Traditionally, these forms of networking were based around a daily email with entries from participants “talking” about different “subjects.” Over time, the email digest moved to discussion web sites where threaded entries were posted on message boards. Users could browse the latest entries then post their thoughts to the author or

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publicly so the entire group could read their comments. Conversations were generated much like a kind of letter correspondence group, although faster and with greater numbers of participants. Today’s social networking opportunities are more sophisticated but their purpose remains the same. Get a group of people with shared interests interacting – but this time, use tools that let everybody access the discussion whenever and whenever it’s convenient. No more scheduled meetings or missed ideas. Instead, realtime tools such as blogs, instant messaging and video conferencing have made it possible to network anytime, with larger and larger groups of people. Cool sites such as YouTube, MySpace, and Blogger, have transformed the very concept of websites – from online “merchandise showcases” to interactivity opportunities between the host and its visitors. Just about anybody today can create and facilitate online networking, with virtually no programming knowledge or even cost! In the real estate industry, the core social networking tool today is the blog. Essentially, a blog is a daily newspaper (or diary) of postings on a website

It’s not just teens and students who are using social networking sites. According to a 2006 study by comScore, an Internet marketing research company, 68 percent of the 55 million MySpace users are 25 or older, and the age group of 35-54 now makes up more than 40 percent of the site. Out of Facebook’s 15 million users, 50 percent are 25 or older. by an author. Unlike a website where “news” is posted from time to time, blogs are updated nearly every day, or multiple times within the day. They also encourage readers to add their comments to the postings. Modern consumers are used to taking opportunities to interact with authors on topics that concern them. Most news sites have featured a “talk back” tool alongside their news stories for years. It’s only natural for real estate websites to evolve this level of interactivity between consumers and real estate professionals. Social networking through a blog can be as easy as creating a public page on Blogger, then adding daily short postings on current real estate events, local market conditions or particular property opportunities. As the agent or broker grows and promotes the site daily, the public will return to the blog frequently (the more postings, the more returning visitors), especially if it offers them ways to directly interact with the REALTOR® other than picking up the phone or emailing. The result is the creation of a real-time mechanism for engaging the public rather than simply presenting to them. In addition to interacting with the public, social networking tools can also be used between agents and brokers to generate referrals, learn new ideas and build their sphere of influence. For example, agents can create a free blog on websites such as RealTown (www.realtown.com), which hosts more than 60,000 active participants from around the globe. These agents interact on each others’ blogs, sharing news and ideas from their marketplaces and experience. They also engage in daily email digests which facilitate discussions on hot topics such as technology, sales, marketing and agency. By creating a variety of online meeting mechanisms, RealTown has made it possible for agents learn from the entire real estate community, not just their local participants. Leveraging such networking tools, an agent can make friends and possibly generate business with virtually no cost other than their time and participation.

Blogs and email digests have become popular social networking tools because they let anybody participate by simply “word processing” their thoughts into a web page. They also include tools for uploading a photo, video or audio recording (podcast) with the text, so interactivity goes beyond the written word. Gaining importance in this area, though, are faster forms of interactive tools such as instant messaging and video conferencing. While most real estate professionals continue to dismiss instant messaging and online chat as something “their kids do,” the irony is, that’s the point! It’s clear that the pathway into the first time home buyer marketplace online is through instant messaging. Generations X and Y use instant messaging almost daily; most certainly to communicate with friends and increasingly with customers at work. In their experience, the social networking never stops. Phone calls and voice mail have been replaced by cellular text messages directly to one’s cell phone: no need to “check” when messages are automatically (and instantly) displayed. In essence, these generations have created an always present and available culture of networking. They form, build and maintain relationships – personal and professional – in real time, all the time. And while most agents are still “challenged” with getting their email in real time (with a Blackberry), these future real estate consumers are communicating with each other in an almost endless live cycle. The key to social networking is that it’s interactive. This means that it requires daily (or real-time) participation between people in order to be successful. For many agents, this is a whole new challenge to

SPRING 2008 KENTUCKY REALTOR® 11

Feature Story

leveraging the internet. Gone are the days where being successful online meant simply uploading new listings and sending out an e-newsletter once a month. The competition to engage – and keep – consumer’s attention has moved beyond the correspondence model and evolved into the networking model. Real estate online is no longer the “catalog” model – where consumer browse web sites for listings or agents that might catch their interest. Smart consumers want much more than “new and updated” inventory. They want access to people. In fact, social networking means the entire reversal of the old model of real estate website

marketing. Real estate agents must start reaching out to customers through social networking rather than waiting for consumers to reach out to them! It’s already happening – from MySpace to Toyota’s Scion – websites. There’s no better time for real estate agents to go start networking online.

Matthew Ferrara is CEO of Matthew Ferrara & Company,a real estate solutions company that delivers professional development,training,consulting and technology support to real estate organizations worldwide. Find him online at www.retechhotline.com

Social Networking 101 For those of you that haven’t kept up with the trend, a social networking site is an online community of people who share interests and activities, or who are interested in exploring the interests and activities of others. It usually entails setting up a personal profile thereby allowing users to interact in a variety of ways such as chat, messaging, email, video, file sharing, blogging, discussion groups and so on. Depending on the site, you can browse the profiles of others, post messages on your page and join specialized groups. Real estate professionals tend to utilize social networking sites for referrals and to interact and learn from colleagues across the country. These sites can also be used as a new outlet to post property listings. Some of the more well known sites being used by the real estate crowd are: ActiveRain: Focused exclusively on real estate and the largest and most active site geared towards REALTORS® who want to network with other real estate related individuals. The site helps agents create business relationships both within the industry and with the consumer. A point system ranking increases when an agent completes or uses certain features such as blogs or profile information. There are around 240 real estate agents listed for Kentucky. WannaNetwork: Another site geared solely around real estate. WannaNetwork states that the site allows you to have fun while networking with other real

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estate professionals across the country. Consumers can search for listings posted by members. The site lists 64 members from Kentucky. Facebook: Viewed by many as the more mature and private version of MySpace. Users have more control over who views their page - you may only view another member’s page if that person agrees to add you as a “friend.” And, you have to be a member of Facebook just to access the site. The marketplace section allows members to post items for sale including housing. The site boasts over 60 million active users and averages over 250,000 new users daily. See page 4 for KAR group details. LinkedIn: A business-oriented networking site used by professionals which allows registered users to maintain a list of people they know and trust in the business world. The people on the list are called “Connections” and “Recommendations” can be made on the services provided by your list. You can search for a person by name and view a portion of their page without being a member but you must join in order to see their full profile. MySpace: The largest and, arguably, the most well known networking site claiming over 100 million users. Your page, although most of it can be set to private, is visible to anyone who can find you and there are no restrictions to adding “friends.”

Business Development Housing Forecast – National and Local By Lawrence Yun, NAR Chief Economist

hough the national headlines have been pounding out the news of a housing market meltdown, implosion, and collapse, all markets are not equal. In NAR’s latest metro price survey, roughly half of the country experienced a price increase. Upstate New York is one example. While folks in the area have been kicking through the snow, home prices in the final quarter of 2007 rose 9% in Buffalo, 8% in Rochester, and a whopping 15% in Binghamton. The Texas market has been also doing its two-step dance with Corpus Christi, Austin, and San Antonio experiencing price gains of 6%, 6%, 8%, respectively. Not to be outdone, Amarillo home prices soared 11% higher. And yes, there were some areas that weren't dancing. Price declines are occurring no doubt, and quite notably in some coastal states and in markets with a high prevalence of subprime loans. Prices fell 13% in Cape Coral, 14% in Detroit, and 19% in Sacramento. What the data clearly illuminate is that there are significant variations across markets. As real estate practitioners know very well, there are further measurable differences across neighborhoods within a metro market. No doubt, there are some people under great financial stress. Subprime products that should never have entered the marketplace have wreaked havoc on many communities around the country. Homeowners unable to meet payments are losing their homes and falling home values have cut the equity of those homeowners who make their mortgage payments on time. Investors taking a walk may not feel the same financial squeeze but they are getting hit on credit scores - that is, many investors using low documentation loans bought multiple properties and are now simply walking away from those properties in declining markets. The calculus was simple - heads I win and tails I don’t lose. Prices rise, get the profit. Prices decline, then walk away and let the lenders take the loss. But as I said, all markets are not equal. Many markets have solid fundamentals of very affordable home prices, solid job and wage gains, and limited new home construction to keep inventory in check. Let’s examine

Kentucky. A total of 11,300 jobs were added to the state in 2007, on top of 20,400 job gains in 2006. Despite the accumulated jobs, existing home sales fell in the state from 96,900 in 2006 to 91,800 in 2007. The home sales decline was not as severe as many other parts of the country, but it was a decline nonetheless. Meanwhile home prices in Louisville and Lexington were essentially unchanged in 2007. Prices declined 1.7% in the Cincinnati metro region, which covers few Kentucky counties. So we have job gains, affordable home prices and historically low mortgage rates - yet buyers are holding back. The current market cycle is unique because of significant local market variations. It is also unique because of the buyer psychology factors - in spite of pent-up demand and improving affordability conditions. Our forecast is, therefore, more uncertain. I believe the first half will remain somewhat soft but home sales in the second half of 2008 will be notably higher. As for the economy, it will be close but we will skirt recession. Job gains of around one million can be expected for all of 2008, though that would be down from the two million annual average gains over the past two years. Fiscal and monetary stimulus will help revive the economy in the second half. That means Kentucky can also anticipate continuing job gains - though perhaps not as strong as before. Finally, let me paraphrase Warren Buffet’s investment philosophy: when everyone is greedy, be scared and when everyone is scared, be brave. Now, I am not an investment counselor and I do not encourage people to buy simply based on this logic. Rather, if people have the financial capacity and are looking for a home for the long haul, the fear factor should be put aside. Current situations in many local markets present a golden opportunity in attaining the American Dream with historically low interest rates.

SPRING 2008 KENTUCKY REALTOR® 13

Legislative and Business Meeting

entucky REALTORS速 moved into Frankfort with force during the Legislative & Business Meeting in February. Over 200 members, along with bus loads from Northern Kentucky, turned out to visit the Capitol to show support for several issues that have a profound impact on REALTORS速. Before the Hill Visits took place, members were briefed on the topics and given talking points during an informative Governmental Affairs service area meeting. After the meeting, RPAC Awards were given to the winners in several categories. During the heavily attended legislative reception at the Capital Plaza Hotel, many Senators and Representatives were in attendance to mix and mingle with constituents from their regions and districts. The Cornhole Tournament, an RPAC fundraising event, was a huge success. Twenty-two teams competed in a no-holds-barred competition that pitted the best and brightest young stars against one another. In the end, Paul Fox and Janie Wilson pulled out a hard fought victory over Fred Dent and Lynn Caudill. To view action items from the meeting, visit http://www.kar.com/media/realestatereport/March08.pdf.

LBAR members Jayne Cox and Carolyn Edwards with Representative Lonnie Napier

Representative Sal Santoro and KAR President-Elect Jeff Smith

Members of the Somerset-Lake Cumberland Board with Representative Ken Upchurch (second from left)

KAR President Robert Damron, Speaker of the House Representative Jody Richards and Representative John Tilley

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Legislative and Business Meeting RPAC Awards Most Contributions Raised (overall) Greater Louisville Association of REALTORS® ($63,429)

2008 KAR Cornhole Champs Paul Fox and Janie Wilson (on right), RunnersUp Lynn Caudill and Fred Dent (on left)

KAR President Damron Provides Testimony During Frankfort Meeting

Highest Member Participation Murray Calloway County Board of REALTORS® (84%)

Pacesetter (first to achieve goal) South Central KY Association of REALTORS®

Largest Percentage Over Goal Small Board Division HopkinsvilleChristian County Board of REALTORS® (203%)

During a regularly scheduled meeting of the Senate State and Local Government Committee, KAR President Robert Damron testified on the occupational tax issue. Damron’s testimony received favorable comments from several Senators. “This legislation would give local governments a means for efficient and timely collection of taxes and fees,” Damron explained.“This helps small businesses by streamlining the filing process while providing a modern avenue for the cities to collect and the businesses to pay what is rightfully owed.” The testimony was in support of a change in the state's tax code and a new way for cities to collect occupational license taxes, legislation KAR is pushing to have enacted.

Largest Percentage Over Goal Medium Board Division Paducah Board of REALTORS® (209%)

Largest Percentage Over Goal Large Board Division Lexington-Bluegrass Association of REALTORS® (108%)

SPRING 2008 KENTUCKY REALTOR® 15

RPAC 2007 RPAC Contributors - $99 and up

n 2007, the following REALTORS速 contributed to the REALTOR速 Political Action Committee (RPAC) at the major designated levels. By contributing to RPAC, you are able to support REALTOR速-friendly legislators who believe in our industry and protecting private property rights, preserving the American dream of home ownership, fighting for tax reforms and reducing burdensome regulations on our business. For more information on the value of RPAC and how it works for you, contact James Sharp at jsharp@kar.com or 800.264.2185.

Big Blue R ($1,500 and up) Tony Clark Ann D. McDonald Jerry McMahan Guy Montgomery Betty A. Schutte* Mary Anne Simmons John W. Smither William P. Snyder Gwynn Stewart Harrell N. Tague Jr. John J. Weikel II*

*sustaining Golden R Sterling R ($1,000 - $1,499) Dennis R. Anderson Nelson Collins John S. Davis Carolyn S. Edwards Donna Gordon-Willoughby Leslie Heath Susan Helm James H. Huff Todd Hyatt Donald M. Kepple Rue O. McFarland John Miranda Charlie L. Murphy Delbert K. Perry Joseph E. Simms Carl M. Tackett Kenneth W. Warden Danny R. Willis Thoroughbred R ($500 - $999) John E. Aubrey Santosh Bhatt Jayne Cox Robert A. Damron Ray DeSloover Brad DeVries Michael Farrar Daniel R. Harpe Jane Hayes Kim Hayes-Ricca Bobbie Johnson Gerri Jones Jacqueline W. Klein Jonah Mitchell Karen S. Mundy Charles Nichols Janet L. Perkins Russell V. Quick Don Sebastian James Sharp

Tom Thieneman Jr. Nelson B. Weaver Linda J. Wiley Pearl R ($250 - $499) C. Gary Adkinson J. Charles Ballard Matthew B. Ballard Rick O. Baumgardner Michael H. Becker Alfred R. Blevins Jenny Bradley Cindy Brouillette Jason Brunstetter Pam Catlett Linda Gibson Cecil Steve K. Cline Bridgett Collier Harriet A. Conely Judy A. Craft Coba C. Craig Linzie T. Craig Barbara A. Curtis Joe Cusick Kent Dailey II Diana Davis Donald E. Davis Sr. Lydia Drexler Stephen R. Early Donna Ensminger Marcie W. Estepp Kevin R. Farris John Fischbach Debra L. Fitzgerald Karen S. Fox Debra M. Fox Larry A. Freels C. Gale Fulton Rodney P. Fussinger Mary Ann Garback Sue Gill Larry Gillette Brenda G. Gooslin John A. Groft Jr. Bob F. Hahn Janet J. Hockersmith John A. Hodge Jack Hoffman Ronald E. Hughes W. Wade Hurt Nancy R. Lage William Leslie Mark E. Lewis Elias Mashni Dot M. Miller

Hall of Fame members have contributed to RPAC a cumulative amount exceeding $25,000.

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Mark E. Mitchell Christine L. Morgan Janice C. Mueller Rosemary L. Nobles Jane Allen A. Offutt Paul J. Ogden Jr. Lisa L. Presley-McGrew Stephen F. Priest Danielle Prost Andrew Pruitt Becky Reinhold Kenneth Reutlinger Jr. Donnie Roberts Janet S. Robinson Jim J. Schack Jan Scholtz Jeff Sherry Linda C. Sparrow Stephanie Steffen Deborah Stephens Lisa Stephenson Karen K. Stevenson Diana Stubblefield Don C. Sullivan II Dan Thompson Ashley M. Trautner Debbie Travis Richard Y. Vreeland Colleen E. Walker Obey T. Wallen Mike M. Wheatley Joan Z. Whitman Janie Wilson Commonwealth Club ($99 - $250) Dianna Ackerman Carl E. Adams Norma Adams Alan L. Adelberg Connie K. Albrecht Robert M. Alford Gina R. Allen Heather L. Allen Neleda Allen Nancy Allison Dana W. Anderson Sharon A. Angermeier Ron W. Arnold Jennifer Ater Laura M. Austin Deborah I. Back Greg Back Todd Back Sarah A. Bailey

Conne Baker Mike Ballard Allison D. Bartholomew Ruth Baumrucker Buzz E. Beard Bonnie A. Becht Lin E. Bell Ruth M. Bennett Karen Bhatt David C. Bischof David M. Bishop Jo Bishop Nancy R. Black Shirley A. Blackburn Robert L. Blackford Ellen S. Bland Kathi Blankenship Robert M. Blunk Marsha L. Booth Pat H. Borg Rod Bowling Julie Bradford Judy Bradley Joe K. Bradshaw Ted L. Bray C. Lamont Breland III Jim Broadwater Connie H. Brooks Geoffrey Brosky Patricia C. Brosky Freddie Brown Norman Brown Rickie G. Brown Veronica W. Brown Woody Brown Pitsy M. Buren Thomas R. Burke Marlene Burkhart Carolyn A. Burrus Cherie P. Butler Wm. E. Buzan Jr. Cindy A. Cahill Susan Clay Callaway Cindi Calvert Nick Cambron Debbie Cannon Ginny Carnes Gary Carpenter Doris E. Carver Serena D. Cassidy Steve Cassin Shelley Cates Lynn T. Caudill Karen K. Cecil B Keith Chapman

Boyd Clark Suzy Clark Jerry A. Clendenin Lee S. Clore Ray D. Cobb Bill Sr. Coffman Michael M. Colgan Charles A. Collier James C. Collier James W. Cook Nancy Cook Lavonne M. Cottrell Whit Courtenay Chris Coury Margie Cox Sharon T. Craft Pamela L. Crockarell Marilyn Cundiff Michael L. Daugherty James F. Davila David Davis Iva M. Davis Janet R. Davis Joan R. Davis P. Diane Davis Rose L. Davis Sandie Davis-Klemenz Shirley A. DeBoor Ann Elizabeth Delahanty Geneva Dennis Alfred T. Dent J. Eric Deskins Jr. Mark S. Dexter Betty J. Dils J. Ray Diuguid Cindy L. Dobias Thomas A. Donnelly Walter E. Douglas Pamela Dowland Myrna Downing Moe Drumheller Donna M. Dumstorf Anetha Dunn Wayne East Joy R. Eberenz Glenn C. Edelen Louise Edelen Mike Edelen Patricia M. Edison Susan Eicher Ann Elliott Ward Elliott Steven A. Elmore Susan R. England Fischer Perry G. England

Verice S. England Linda S. English Sue Ernst Joyce M. Erskine-Jordan Jim Estes Mike Eubanks Lanny M. Evans Wyatt W. Ezell John H. Falvey Helen Fardo Edna M. Federle Carol Fening Stacey R. Fergerson Dale Ferguson Susan M. Fischesser Tracy Fisher Barbara B. Flannery Chip B. Foley Charles M. Ford Robert D. Ford Heidi Fore George Foree Donna V. Foster Sherrye Fowler Karen W. Fox Paul X. Fox Leo W. Frank Thurston Freeman William M. Friel Charles S. Fuller Mark A. Fulton Pat Galloway James R. Gambill Jeffrey M. Gapen Mike Garant Douglas A. Garner Bella Gaudette Linda K. Gay Arthur Geissler Elizabeth T. Gibson Aaron T. Givhan Maria P. Gnas Peggy Goebel Rosemary Goldsmith Tonita P. Goodwin Allison Grace Betty M. Grammer Richard Grammer Jerry E. Grasch Glenn E. Green Jr. John T. Griffin Jr. Sandy Grogan Jennifer E. Groneck Kevin Grove Benjamin W. Guerrant Sandy Gulick Sherrye Guthrie Cindy Hack Joe Guy Hagan Pat Hagan Ann L. Hager Mary Jane Halbleib Elizabeth Halfhill Jim Halfhill Betty L. Hall Mike Hall Harvey Hames

Deni Hamilton Woody Hamilton Elaine M. Hangis David L. Hardy William F. Harned Kimberly Harper Dorothy E. Harris Ellen L. Harris Jennifer Harris Ruby Harvey Mark Hass Joseph Hayden Laura H. Hayden Pat A. Hayden Larry G. Hayes Stephen Heartsill Tom Hebert Dorothy Heitzman Karen Helm Marilyn B. Helvey Mica Hider Arthur Higdon Walda Highfield Steve D. Hiland Kathryn M. Hill Linda M. Hill Donna Hoffman Melody J. Holder Tim Holland Meredeth Holliger Mary Ann Hollon Cheryl Hood Alma L. Hopkins Johnnie M. Horner Lynda G. Houck Jerldean Y. Howard Robert T. Howard John Howell David W. Huber Susan A. Huff Tag Huffman John F. Huggins Ronald L. Humes Jr. Stan L. Humphrey Lorene Hunter Bobby A. Hunton Jerry Janes Loretta C. Jobs Thomas P. Johns Alan W. Johnson Judith Johnson Kelly Johnson Lee Jolly Donna C. Jones Greg Jones Kenneth H. Jones Jr. Paul D. Jordan Bill C. Justice Lura K. Justice Rhonda O. Karageorge Charles Kavanaugh Earnest Kellogg Cindy R. Kelly Donna Kelly Susan Kemper Bob J. Kennedy Haya Kessler

Kathy C. Kimbel Jesse H. Kinman Nina A. Kirkland Krystal Kirkman Marsha A. Kirven Frederick S. Koller Kathy Kopperud William R. Kopperud Anita Kosco James J. Lally Charles H. Lambdin Judy Lambert Connie Lancaster Mary Lourdes Langley Beverly Lawrence Constance C. Lawson Brenda J. Lee Yolonda J. Libby Frank D. Littrell Maxine Littrell Becky Locknane Laurie Logan Charles I. Lotze Joseph E. Lowry Linda Luoma Pearl M. Luttrell Deborah C. Lykes Julie Mac Innes Tony Manley Meg H. Manning Robert H. Marrett Gertrude Martin R. Douglas Martin Kathy T. Martini Robert D. Massey Barbara A. Massman Jennifer Mateyoke Stephanie Mattingly Bryan May John T. May Jr. Jim D. Mayberry Floyd Mc Carty Kathy F. Mc Gann Karen McCartin-Foster Chad M. McCoy Kellie McCoy Sue McKinney Sue Ann McKissick Hardin McLane Marilyn T. McLane Sandra F. McMillan-White Randi S. Means Bob Medley Jesus Menendez Sandra J. Metts Wayne Meyer Mimi Middleton-Osborn Cathy Miller Dennis Miller Louise M. Miller John Milliner Lynda Minzenberger Barbara B. Miranda Jennifer L. Misener Kelly B. Mitchell Gordon L. Moert Elizabeth Monarch

Donna F. Moore Linda M. Moore Steve Moore Vicki C. Moore Steve Moorhead Teresa Morgan Dawn Morton Becky Murphy Douglas Myers Barbara J. Naiser Stan S. Napier Joyce A. Nay Tara Negard Mary Nelson William J. Nevitt Joyce W. Nicholson Patricia Nuccitelli Deborah M. Nunley Rebecca L. Orth Caron E. Osborn David Osburg Evelyn C. G. Page Karen G. Pannell Lenora Paradis Ashley S. Parker Mike Parker Dave L. Parks Jr. Judie Parks Pat A. Parks Gloria Patterson Delma Peercy Kathryn S. Pendleton Rip I. Phillips John A. Pirtle III Julie W. Pogue Carol Pope David K. Powell Katy Prather Jennifer Presto Omar R. Prewitt Pat M. Pride Lawrence S. Profumo Evelyn J. Pusateri J. Richard Queen Judith Quigley Charlene F. Rabold David E. Rabold Betty Radford Terri L. Raney Bruce T. Rankin Norma G. Rapier Barbara Rathbun Keith Rector Ray Rector Tom Rector Vivian Reda Sherry Regenbogen Luly Reinhardt Nelson H. Rennekamp Sharon S. Richardson Betty T. Ricks Kristen Riddick Michael T. Ridge Joann K. Risner Teresa Ritson Gillum Gay N. Rittenberry Bonnie L. Roberts

Rick Robey Stephen A. Robinson Kennie Romans Steve Rose Dorris Ross Maxine Royse Kristian Ruble Grace P. Rucker William E. Rudd Jr. Michelle Ryan Debbie F. Salyers William R. Sanderfer Bonnie Sarver Milissa Schack David L. Schank Catherine J. Schramm Gary Schroeder Mary Jo Schuerman Kathy P. Sears Alan R. Segerlund Trish Segrest Jim Sewell Cindy D. Shannon Curtis M. Sharff Maggie Sheets Rosanna Shelton Beverly A. Sherrard Billy Sherrow Melissa Shilleh Hodge Donald G. Sims Mike Skelton Toni M. Skiles LaTisha M. Sloan Billy V. Smith Charles Smith Jeff W. Smith Jeffrey L. Smith Louise Smith Patsy J. Smith Sharon A. Smith Tiffany L. Smith Barbara K. Sondgerath Sherry Spanyer Joyce S. St. Clair Dee St. Lawrence Howard Stacey Leslie B. Sternberg Linda Still Melissa A. Stinnett Sam Stockard James A. Stofko Karen D. Story John A. Stough Robert F. Strain Jr. Rich Streicher Sr. Cindy Stuart Sandra Stuart David L. Sturges Jr. David L. Sturges Sr. Dwight F. Swann Marion C. Tabb Philip C. Tabb Vonda Tabb Sue Teegarden Glenn E. Thomas Jacqueline J. Thomas Jessica L. Thomas

Phyllis Thomas Wayne G. Thomas Richard H. Thompson Russell Thompson III Peggy F. Thurza Shelly C. Tilley James K. Tinsley A. Larry L. Trautner Rebecca J. Trout Lisa Tyler Sharon W. Tyler Tina VanSant Betsey Vaughan Kathryn E.S. Vaughn Carlos Vega John T. Vince Jr. Mary Vincent Sherry A. Vincent Lois Wagner Linda Waldroop-Lewis Etta Walker Jane Walker Helen E. Walter Rick Walters Tamara Warner Christopher Warren Robert Wasylina Cindy Z. Waterman Suzy N. Watkins Cheryl Watson Janice M. Waugh Vicki Weesner Dean E. Wegley Frank F. Weisberg Ronald J. Weisberg Jimmy Welch Carolyn N. Wheeler Jana S. White Noel S. White Stan White Lillian Wild Andy Wilkins Shawn P. Willard Keith L. Williams George M. Williamson Betsy L. Wilson Bobby D. Wilson Ray Wilson V. Keith Wilson Harold H. Wimsett Melissa G. Winchell Sue Winters Shirley Wiseman Beverly A. Withers Amber N. Wood Earleene W. Woods Cindy L. Wright Jo Wright John E. Wright Sr. Tina L. Wright Ron L. Yankey Alma R. Yeary Francie Zangari Amy Zimmerman

SPRING 2008 KENTUCKY REALTOR速 17

KREC Information Antitrust Compliance Understanding is the Key

Lee Harris is General Counsel for the Kentucky Real Estate Commission

The basic purpose of federal and state antitrust laws is to prevent competitors from conspiring to fix prices or to boycott other businesses in their industry. Antitrust laws affect the real estate industry every day. Each principal broker has the right to establish the fees that will be charged for his or her company’s services only. Brokers may never legally discuss their fees or commissions or agent-broker splits with other brokers and may not legally conspire with other brokers to establish a “standard” or “set” fee to charge consumers. In addition, brokers and agents are prohibited from agreeing to boycott other real estate agencies in the marketplace. As members of the association of REALTORS®, you should have a heightened sense of compliance with antitrust laws. This association is a trade organization, which could not even exist but for an exemption in the antitrust laws. In general, competitors cannot meet to discuss industry issues. As part of your membership in the association of REALTORS®, you may attend meetings, classes and the like. Make sure to be very careful at these meetings and classes that you do not ever engage in conversations with your competitors about price-fixing or boycotting. In fact, you should avoid any and all discussions about what you charge, what other agencies charge, how other agencies do business, etc. If any of your competitors ever brings up one of these topics or begins discussing such issues, you must immediately cease that conversation and renounce what that person has said. If you are an agent, tell your principal broker. If you are a principal broker, tell your association representative. NAR has developed an antitrust law policy. Ask your association representative for a copy of this policy – and abide by it!

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As members of the association of REALTORS®, you should have a heightened sense of compliance with antitrust laws. In addition, many local associations have drafted form listing and purchase contracts. These contracts must have blanks in any space where a fee may be charged or a timeframe may be set out. There is not set fee and no set listing period. Another area where antitrust laws come into play is when you are attempting to create an agent-client relationship. When you go to a listing presentation, you should only speak to potential clients about what your firm offers and what your firm charges. Do not get into a discussion about other firms, their reputations, their fees, etc. Denigrating other firms and how they do business would be an antitrust violation. Moreover, if a client asks you what the “standard” fee is, the answer is that there is no standard fee. In addition, competitors cannot collude with each other to agree that they will not advertise in the local paper or the local homes-selling magazine. Likewise, competitors cannot band together to agree not to show certain other companies’ listings. If there are areas of this law that you do not understand, seek out a continuing education class, consult the Commission’s legal staff, ask your personal attorney about it, or read up on the issue on the Internet. The best thing to do is to be aware and avoid any problems because the penalties for an antitrust violation are steep and severe.

Education Creating Your Permanent E-mail Address Don’t Fall Out of Touch With Your Clients By Saul Klein

our e-mail address is your identity on the Internet. You want an e-mail address that does not change just because you change from one ISP (Internet Service Provider) to another or from one real estate company to another. Your ISP move may simply be a move from dial-up service to broadband (cable and DSL). Changing your ISP will force you to change your email address, unless you have your own domain and have used it in conjunction with an e-mail account to create a permanent e-mail address. When you change ISPs, you will receive a new email address (often user name at your new ISP.com) and a password. If you discontinue your previous ISP account, e-mail sent to your old ISP e-mail address (your old ISP user name) will probably not be forwarded to your new ISP and will bounce back to the sender as undelivered or just be an unreceived, and thus an unresponded to, e-mail. This may give the appearance that you are no longer in business - a negative and potentially costly impression. In addition, you must now reinvest in all your marketing materials…business cards, signs, stationery…anything with the "old" e-mail address must now be destroyed and repurchased with the new e-mail address. It doesn't make any sense to "train" customers and clients (your Sphere of Influence) to send e-mail to an address that may not exist in the future. Since every piece of e-mail is a marketing piece, it makes sense to have your e-mail address in as many pieces of e-mail as possible. You want to train your clients to send e-mail to you at one e-mail address. Once you have a permanent e-mail address, you can change the return address in your e-mail software reflecting that e-mail address. It may sound like a little thing, but it is the little things that make a difference when working to differentiate yourself from the competition. With a permanent e-mail address, all your branding efforts and dollars spent to create an e-mail presence will, over the years, create a cumulative result. Having a permanent e-mail address will prove much more cost effective than diffusing your marketing dollars over the years on e-mail addresses that no longer exist because you changed ISPs.

What’s the cost of lost business? When you change internet service providers, your old e-mail address is no longer functional. You will not receive any e-mail sent to the old e-mail address. Not receiving all of your email could be costly to you. For example, if the day after you change from one ISP to another, a past client sends you an e-mail requesting that you call them about listing their $3,000,000 home and you do not receive that e-mail, you cannot respond to e-mail you do not receive and you will probably lose that business. In addition to the cost of lost business, every time you change e-mail addresses you will need to reprint your business cards and marketing materials. A minor cost when compared to the cost of lost business, but a loss nonetheless.

Saul Klein is president of InternetCrusade,the home and host of e-PRO,NAR's online Technology Certification Program.

Coming soon in 2008! Starting in mid-2008, KAR will begin providing the e-PRO program for CE credit. Currently, members can take the e-PRO program in Kentucky for designation only. e-PRO is the only NAR approved Internet Certification Program. The program will teach REALTORS® about Internet business principles required to remain in the center of the real estate transaction. For more information on the course or to register for the program, visit www.internetcrusade.com.

SPRING 2008 KENTUCKY REALTOR® 19

Technology

Protecting Your “Rep” On the Internet Because your business depends on it

his article will examine the role that “reputation” should play within the brokerage firm’s overall Internet strategy. The basic dynamic that amplifies “reputation” on the Internet arises out of growing consumer expectations that: 1) They should have, under the evolving rules of transparency, access to information offered by other consumers and experts regarding agent and brokerage performance 2) They should have the ability to offer comments about their own real estate experience for the benefit of other consumers The fruition of these two expectations will result in every agent and brokerage firm having a “rep” somewhere on the Internet. For those who appreciate a longer-term perspective, the reputation function has traditionally been managed through more local community based channels and through the REALTOR® ethics and professional standards function. However, today’s consumer is no longer willing to accept general impressions of community reputation. Since the REALTOR® ethics enforcement program offers no compromise to transparency (being all but

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By Jeremy Conaway

secret) it is seen as a credible determinant of neither reputation nor expertise. The American consumer’s infatuation with ratings and rankings, and the current systems total lack of either, has created an increasingly powerful vacuum. Into this vacuum have come a number of Internetbased entities that are soliciting and building databases of consumer evaluations that meet the consumer’s demand to review the comments of others and to offer comments of their own. Among these new Internet “reputation” aggregators, homethinking.com, yelp.com, brokerrating.com and propsmart.com offer the best insight into how the process works. In addition to these for-profit entities there is a wide range of blogs and podcasts that also offer up information about specific firms and agents. As a starting point for this discussion it is important to note that the ranking and rating phenomena is by no means limited to the real estate industry. In today’s Internet empowered world, businesses large and small in every industry find themselves confounded by disenchanted clients, customers, employees, suppliers and even competitors who seek to use the Internet as an essentially “free” venue to air grievances online. With little more than a Web connection and a keyboard, these would-be “Muckrakers” can do everything from irritate, via a scathing review, to causing serious business problems, by using message boards to reveal company secrets or spread rumors of unethical behavior. Some go so far as to initiate a complaint site or register a Web address in their target’s name. “There is all type of damage by miscreants on the Web to a business,” said Marc S. Friedman, chairman of the intellectual property practice at Sills, Cummis, Epstein & Gross in Manhattan in a recent New York Times article. “The number of methods depends only on the creativity of the wrongdoer.” Legal remedies vary by case and by state. Lawyers,

Internet specialists and others with experience in this realm counsel that the best course may be to ignore irritating posts because trying to squelch a malcontent can have unintended consequences. “Your reaction often, if you’re a small business, is to get angry and to fire off a letter,” said Barry Werbin, an intellectual property lawyer at Herrick, Feinstein in New York. “Some big companies do it. More often than not, the person who posts the gripe site can’t wait to get that letter and post it. ”Sometimes, Mr. Werbin added, “it can worsen the damage because it just fuels the fire.” Real estate professionals must recognize that anybody can write just about anything through these venues. This may be a classic case where the best defense is a strong offense. Each firm should: • Develop specific Internet reputation policies and procedures

This whole area of the Internet transparency is really just emerging. On both the protection and assault sides new theories, new tactics, new remedies and new horrors are being developed on a continuous basis. Someone from your firm, or representing your firm, must be vigilant and knowledgeable about this vital area. Most brokerages are acutely aware of the importance of a good reputation in their immediate community. This same level of care and attention must now be transitioned onto the Internet. Pro-activity is an absolute must. Don’t get caught with the wrong “Rep” on the Internet.

• Initiate an Internet monitoring procedure so that the firm can become aware of all references, either positive or negative • Take advantage of intellectual law remedies such as trademarks and copyright protection to limit the ability of dissenters to use markets and protected properties in their assaults • Capture testimonials whenever possible and place them on websites, blogs and other Internet spaces, install hot links between these positive reviews and the firm’s website, and create specific opportunities to enhance a positive image on the Internet • Do everything possible (and legal), when negative materials appear, to have them removed and/or ameliorated, without making the situation worse. Do not take these matters lightly. A negative Internet comment, review or rating can have far reaching ramifications for both the firm and its agents.

TECH HOTLINE at 866-95-FixPC is a REALTOR® friendly on-demand technology support service offered by Matthew Ferrara & Co. The “FIXED or FREE” guarantee makes calling risk-free. A wide range of technology incidents are covered starting at $24.95. Services include coverage of e-mail, internet issues, how-to questions, MS Office and much more. Even most real estate forms issues like Zip Forms, Win Forms and Instanet Forms can be handled.

SPRING 2008 KENTUCKY REALTOR® 21

Local Association News

Around the State... 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.

The house transforms from a holiday parade float to a campsite at a Relay for Life event.

Pioneer Trace Board of REALTORS® The Pioneer Board participates in several parades and events throughout the course of the year. In order to save time but continue to have a strong presence and relay the theme of housing, the board constructed a framed house “float” to use in these types of outings. Built in 2004, mainly by 2x4s, and hauled on a 14-foot trailer, the house features a miniature picket fence which hides the frame of the trailer and includes room for members to sit comfortably. According to Lloyd Schiltz, past secretary of the board, they have elements that can be altered to match the event. Props like an extra chimney and a trellis decorate the house according to the theme of the event and the arrangements for the flower boxes are easily changeable for different seasons. The sign, which maintains a consistent message, says "Turning Houses into Homes." Some uses have been Christmas, the 4th of July and other local festival parades as well as turning it into a Jamaican fishing pier for a Relay for Life event. Hopkinsville-Christian County Board of REALTORS® The H-CC Board is working with the Chamber on the new Community Vision Plan. The initiative, still in its beginning stages, established a task force to inform people living in surrounding areas, but working in Hopkinsville, on how they can save

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money and valuable time by both living and working in Hopkinsville. One of the specific goals of this plan is called Population and Prosperity. This goal’s outcome is to see increased numbers in the county’s population which would mean increased number of homes sold to newcomers. To get started, the task force created the "Live, Work & Save in Hopkinsville - Make Your Mark" brochure to help emphasize the benefits of living in Hopkinsville. The brochure includes a time and cost comparison between several of the surrounding counties as well as the list - "8 Remarkable Facts About Hopkinsville." Serving on the task force is Association Executive Gay Wilson and Past Board President Becky Johnson. In 2007, the H-CC held a very successful Housing Summit where over 100 community leaders came together to brainstorm ways to meet the housing needs of the people of Hopkinsville now and into the future. This Summit was the foundation to the overall plan. Greater Louisville Association of REALTORS® The Greater Louisville Association of REALTORS® held its annual Charity Bowl-AThon on February 19th. This year’s event was a huge success! GLAR exceeded their bowler goal with over 100 bowlers and raised money to send critically ill children of the Dream Factory to Walt Disney World. The Dream Factory of Louisville is a non-profit, volunteer based group that grants “dreams” to children ages 3 to 18 with critical or chronic illnesses. Funds raised from this charity event went directly to making a Dreamers wish come true! The Bowl-A-Thon is coordinated by GLAR’s Community Relations Task Force. To raise funds for this event, each bowler contributes a minimum $25 donation and is also asked to collect additional donations to bring to the event. Bowlers also bought chances to win one of many door prizes, which were generously donated by GLAR Affiliate

Members. GLAR sends a special thank you to event chairs Mike Brown with On the Move REALTORS® and Karen Story with Semonin REALTORS®, for all their hard work putting the event together. Cave Run Association of REALTORS® The newest board to arrive on the local level, the Cave Run Association of REALTORS® (CRAR) was chartered at the November 2007 meeting of NAR. CRAR serves the eastern Kentucky counties of Bath, Elliott, Menifee and Rowan with ten member offices and 44 active licensees. Gail Lewis Johnson is President with Bridgett Howard, Vice President, and Gayle Clevenger as the Secretary/Treasurer. In addition to the officers, Board of Directors members are Josh Brown, Lisa Rogers and Jim Caudill. It is the mission of CRAR to provide its members with the full spectrum of REALTOR® membership benefits provided by both NAR and KAR. One of the most important and exciting benefits to date has been the creation of an association-based Multiple Listing Service created in cooperation with the Lexington-Bluegrass Association of REALTORS® (LBAR) and Rapattoni Multiple Listing Systems. Gail Lewis Johnson stated, “All CRAR members are looking forward to inclusion of their listings onto realtor.com and to full participation in both the state and national REALTOR® organizations.” Lexington-Bluegrass Association of REALTORS® LBAR’s Board of Directors and leadership team recently met with the CEO of Alltech, Dr. Pearse Lyons, to discuss the impact of the 2010 Alltech FEI World Equestrian Games in Lexington. The meeting was to explore how LBAR could be involved with the games as they represent an unparalleled opportunity for REALTORS® to showcase Central Kentucky’s real estate and high quality of life. LBAR selected Ann McDonald as the 2007 REALTOR® of the Year and Jeff Rietze as the 2007 Good Neighbor award recipient at the association’s annual dinner in January. McDonald has been a

member of LBAR for 21 years and served as the 2005 president. She has also been a member on the board of directors and filled other prominent roles within the association. Rietze has been a member of LBAR for 31 years, and in 1992 helped found the REALTOR®-Community Housing Foundation (RCHF), of which he became the first president.

Bluegrass Region Takes Off Lexington’s Bluegrass Region will be featured in Sky Magazine, an award-winning in-flight magazine for Delta Air Lines. During the month of June, the section featuring Lexington will be read by over 3.4 million passengers traveling to 461 destinations in 96 countries. The selection came about because the Bluegrass Region has a lot going on these days – from the 2010 Alltech FEI World Equestrian Games to the redevelopment of downtown and the numerous horse farms in the area. The feature will show why this region of Kentucky is one of the nation’s greatest places to live, work and visit.

2008 LeadershipKAR

Members of the 2008 LeadershipKAR class at the state capitol. From left to right: Janet Perkins (LKAR class of 2002), Nelson Weaver (LKAR class of 2003 and 2008 LeadershipKAR Chair), Jessica Thomas, Elizabeth Monarch, Lonnie Gann, Representative Susan Westrom, Earlene Woods, Libbi Taylor, Ruth Ann Bowen, Charlene Rabold, Brenda Loyal, Jim DeMaio, Lisa Presley-McGrew, Wendy Meadows, Emily Hacker, Gale Fulton (LKAR class of 2002 and 2008 LeadershipKAR Immediate Past Chair). Jim Estes and Johnny Hodge are not pictured but are part of the 2008 LKAR class.

SPRING 2008 KENTUCKY REALTOR® 23

By The Numbers

According to the National Association of REALTORS®, the number of times consumers are more likely to buy a home found online versus in a newspaper, and 24 times more likely to buy a home found online versus in a home book or magazine.

26%

The percent increase real estate companies spent nationally on online advertising in 2007 as compared to 2006, even as total real estate ad spending declined 3 percent, according to Borrell Associates.

88%

Percent of the public who rely on websites as their primary source for the latest real estate news and information, with newspapers coming in a distant second at 12%, according to a poll conducted by Edward Segal, CEO of the Marin Association of REALTORS®.

80%

According to the National Association of REALTORS®, the percentage of a REALTOR’S® future sales that will come from referrals or repeat business generated from past clients.

Percent increase in NAR membership over the last five years (to 1,357,732 members through 2006). The past 10 years has seen growth at 89%.

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55%

4 million

The number of people employed in the U.S. real estate industry. 2.3 million of which were born before 1962. That means nearly 58 percent of the real estate work force will be of retirement age by 2010, says a report by Deloitte.

60%

According to a study by Horowitz Associates, the percentage of Internet users who watch/download online video at least once a week. That's up 25 percent from 2006. Good news if you are using video to market your listings.

The number of consumer electronic devices in a typical American household, according to Bernice Ross, CEO of RealEstateCoach.com.

Percent of household electricity use, according to a recent study published by the California Energy Commission, is from appliances in low-power mode (which is to say, not performing any of their primary functions). This includes DVD players, desktop computers, cable boxes and cell phone chargers. If you are not using certain equipment, turn it off, or better yet, unplug it from the wall.

% 13

Housing Stats

Kentucky Housing Market Holds Steady in 2007 State fares better than the national statistics

ccording to NAR, 2007 was the fifth highest on record for total existing home sales in the U.S. reaching a total of 5,652,000. This is still a 12.8 percent decrease in sales versus 2006. As for national home prices in 2007, the median price of a home was down 1.4 percent over 2006 ($218,000 vs. $221,900). “The state of housing in Kentucky continues to beat the national averages,” said Robert Damron, president of the Kentucky Association of REALTORS®. “Although some parts of the Commonwealth have seen a decrease in the number of homes sold, we continue to see steady increases in appreciation for most areas.” The median price of a home in Kentucky rose almost 2 percent in 2007 compared to the same period in 2006 according to state housing statistics. Sales are down about 5 percent statewide, less than half the decline as reported nationally. “Kentucky has held up quite well,” stated Damron. “Buyers become hesitant to jump into the market when the media says the bottom hasn’t hit yet. In this state, we haven’t seen overall prices dip so waiting will probably cost buyers more in the long run.” In the fourth quarter of 2007, the housing market saw help from the federal government through interest rate cuts that could have helped home buyers but that can only last so long before rates begin to climb. The good news, however, is the Economic Stimulus Package that was passed in the beginning of 2008. This piece of legislation will increase the loan limits for FHA and the GSEs (Fannie and Freddie) and give individual taxpayers various levels of rebates depending on their filing status and dependents. Damron explained the effect this may have on housing. “The package passed by Congress should stimulate spending and put some home buyers in a more comfortable position to make the move to homeownership.” Overall, Kentucky housing remains a stable investment. REALTORS® should look at best practices in marketing, sales, negotiation and other important areas and continue to implement into their business throughout the year. Focus on what works and go out and make things happen.

Board/A ssociation

# S old 2007

# S old 2006

Henderson-Audubon BOR

386

422

Hopkinsville-Christian BOR

555

Kentucky-Barkley Lakes BOR

354

# S old %

Median Price 2007

Median Price 2006

Median Price %

96063

94625

550

101475

92000

10%

352

83188

92000

10%

Region On e

Madisonville-Hopkins BOR

452

504

-10%

91565

81450

12%

Mayfield-Graves BOR

313

337

-7%

66475

67625

-2%

244

293

-17%

116750

105750

10%

1278

1274

97609

102100

-4%

Murray Calloway County BOR Owensboro BOR Paducah BOR

889

895

-1%

124000

118550

Pennyrile BOR

438

337

30%

98950

101250

-2%

Central Kentucky AOR

625

721

-13%

111625

107875

Heart of Kentucky AOR

1855

2112

-12%

129925

129053

Old Kentucky Home BOR

555

629

-12%

111665

102475

REALTOR® Assn of SKY

2088

2377

-12%

121150

117225

Russellville-Logan BOR

187

218

-14%

87575

89900

-3%

Shelbyville BOR

531

589

-10%

151982

150058

South Central Kentucky AOR

327

369

-11%

107250

98000

14862

15185

-2%

137500

139000

-1%

9848

10755

-8%

146090

145500

5929

6811

-13%

137345

136230

933

945

-1%

92550

93563

-1%

R egion Two

R eg i o n T hr ee Greater Louisville AOR

R e g i o n Fo u r Lexington Bluegrass AOR

R e g i o n F i ve Northern Kentucky AOR

R e g i on S ix Ashland Area BOR Cumberland Valley BOR

N/A

Cynthiana-Harrison County BOR

N/A

Dix River BOR

N/A

Eastern Kentucky AOR

516

490

Frankfort BOR

N/A

2574

2061

25%

Pioneer Trace BOR

259

350

-26%

Somerset-Lake Cumberland BOR

704

782

-10%

46702

49358

-5%

110500

Madison County BOR

Totals

N/A

N/A 100348 N/A

N/A

106384

-6%

N/A

138757

-2%

94750

95310

-1%

118750

116500

109874

135750

Based on information from local REALTOR® associations/MLSs for the periods of 2006 and 2007.

SPRING 2008 KENTUCKY REALTOR® 25

Community Profile

A Spotlight on... Hodgenville Birthplace to one of the country’s most renowned leaders

ocated along the North Fork of the Nolin River, Hodgenville is a quiet, rural community that boasts a significant historical past and lies at the center of an area rich in tourist attractions. The history of Hodgenville, the county seat of Larue County, began on the site of Robert Hodgen's mill. Built in 1789, the mill, and the Hodgen name, led to the establishment of the town in 1818 when the family donated 27 acres of land. Prior to the establishment of the actual town of Hodgenville, however, was the single most defining year for this area of the state. In 1809, the area that would later become Hodgenville was the birthplace of one of the country’s most renowned leaders and the 16th president of United States, Abraham Lincoln. On a 348 acre farm called Sinking Spring, Lincoln spent his first few years before the family moved 10 miles northeast to Knob Creek Farm. Even today, with the bicentennial events underway, Hodgenville celebrates this history with several monuments and national historic sites. These include the Abraham Lincoln Birthplace National Historic Site, which consists of the Abraham Lincoln Boyhood Home, one of the more than 380 parks in the National Park system, and the Lincoln Museum, located in Hodgenville’s historic district. Downtown, a life-size, bronze statue of Lincoln has been the focal point of the town square for the past 100 years. Rhonda Weidman, program manager for the Hodgenville Main Street Program, moved to the rural community from St. Louis, Missouri less than a year ago. She and her husband, however, are originally from a small town in Arkansas and said moving to Hodgenville was almost like going home. “There is something unique in small towns like Hodgenville that you just can’t find anywhere else. The people here take an interest in you personally, and the contrasting landscapes of open farmland and rolling hills give you a sense of peace that you cannot find in bumper to bumper traffic.”

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As for the rest of downtown Hodgenville, it is interesting to know that many of the early 20th century buildings are listed on the National Register of Historic Places. Visitors can shop stores selling everything from local arts and crafts to Lincoln memorabilia, collectibles and gift items. There are also antique stores, craft stores and even an old-fashioned drug store still in operation. Hodgenville has been designated a Certified One City through the Kentucky Renaissance on Main program, and as a Preserve America Community by First Lady Laura Bush. It also embraces an active Main Street/Renaissance Association to help drive the expansion of downtown programs by preserving and revitalizing the historic infrastructure. Fred Hamilton, president of the Old Kentucky Home Board of REALTORS® and associate broker with Demaree & Hubbard Real Estate stressed the importance of dealing with heritage rich real estate, such is the case with many of the buildings and homes in the downtown area. “There is value associated with this type of real estate,” Hamilton said. “Selling real estate in a smaller community associated with this level of history takes a unique approach and should be highlighted in all promotions. The pride itself cannot be overlooked.” Just one block away from the historic downtown area is Creekfront Park, a city owned facility with an abundance of walking trails. The LaRue County Park provides swimming and tennis facilities, along with baseball and soccer fields and a community center. The area is also home to several streams, ponds and lakes which provide excellent outdoor sport getaways such as fishing (bass and crappie are popular), boating and hunting for large and small game. Hodgenville is also the main hub for the annual Lincoln Days Festival, held the second weekend in

Photo courtesy of Mike Weidman

October, which brings thousands of visitors to the community for the parade, pioneer games including rail splitting, arts and crafts, clogging, antique tractor and car shows and other activities. A highlight of the weekend each year is the Lincoln Look-Alike contest, which attracts numerous Lincoln presenters, and Mary Todd impersonators, from across the country. Another great entertainment venue is the Lincoln Jamboree. Established in 1954, the three-hour, family oriented show, billed as “Hodgenville’s own Grand Ol’ Opry,” has become one of the nation’s best-known venues for country music hosting acts such as Patty Loveless, Jerry Lee Lewis and the Oak Ridge Boys. The LaRue County Fair, one of oldest continually operating fairs in the state, takes place annually in the summer and features agricultural exhibits, beauty pageants, horse shows, tractor pulls, carnival rides and even a demolition derby. “In order to expand our community, we must continue to promote growth and development,” stated Hamilton. “We must also remain keenly aware and work to preserve our real estate with a historical background.” With the addition of the LaRue County Industrial Foundation, Hodgenville sees the benefits of the 100acre Industrial Park located to the north of the city limits on the Lincoln Parkway. Hodgenville is also in

the process of constructing its first civic center that will accommodate the Chamber of Commerce, the Larue County Genealogy Society and several conference rooms to serve the town’s 3,000 citizens. The housing market in Hodgenville stands out for its affordability and diverse selection. The average home price in the city was just over $102,000 in 2007 and close to 300 homes were listed on the market at some point during the year. Rita Williams, executive director of the Larue County Chamber of Commerce, said she has been receiving inquiries “from folks who are planning to retire and looking to settle in Larue County.” Hodgenville is centrally located and served by an excellent highway system, mainly Interstate 65 and US 31, giving the area easy and direct access to larger cities such as Louisville (45 minutes north), Lexington (80 miles east) and Nashville (130 miles south). “The experience has been wonderful,” said Weidman. “In less than six months, I was welcomed, accepted and adopted as a native child of Kentucky. I am sure that anyone looking to relocate here will find no less a warm and friendly welcome.” If Lincoln were alive today, he would say no truer words could have been spoken about the little town of Hodgenville.

SPRING 2008 KENTUCKY REALTOR® 27

From the Helm

Time Flies When You’re Having Fun KAR Executive Vice President Susie Helm with her new friend - an avatar from the online virtual world SecondLife, a type of social networking site that has emerged during the Web 2.0 era of the internet

DISCLOSURE: Some of you may be able to relate to this column, and some of you (mostly those under 40) just won’t get it. I admit it … I am a Baby Boomer. Like many of you, I had to learn the computer as an adult. I had even started working before I used a computer. Here is a little history: • My first “real job” was working for a weekly newspaper … used a typesetting machine, cut (with very long scissors) and pasted pages on a board. If I didn’t like it, or it didn’t fit, I had to keep cutting and pasting. • Started working for REALTORS® in 1984 … used a Wang computer (don’t laugh). • Got my first home computer in 1995 • First laptop in 1997 • First subscribed to AOL in 1997, and used a clock to make sure I didn’t use up my per hour allotment for the month (no kidding!). I had to unplug my home phone to access the internet and if anyone called me, they got a busy signal. When was the last time you heard a busy signal? We’ve come a long way, Baby … it wasn’t always easy or cheap. And what I’ve learned is I am way out of my league with some of today’s technology! So what am I doing on Second Life (good luck finding me, I keep getting lost!). And, there I am in Facebook (I can talk with my nieces and nephews and look at their pictures … the way they “socialize” now in college is very different, yet the same in many ways). I am LinkedIn with other people in business. I go to YouTube on a regular basis. I text daily. I am even starting to read blogs (but haven’t started my own … yet).

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I use a Treo and get my e-mail instantly, so I may reply in five seconds or five minutes (five hours isn’t really acceptable these days). At home, I have a DVR and can watch what I want, when I want. When today’s “young’uns” get to be my age, they will be amazed at how they started in such antiquated conditions. It is fascinating to think about what technology will do in the future. Will we all be floating out in space, connecting our thoughts by some yet undiscovered wireless technology? And, then I think about my Mom, who didn’t even have television when she was young. She tries to use the computer and access the internet (she is the only person I know who does a two handed mouse - you would just have to see it!). What she has seen in her lifetime of technological advances must astound her! And, since I’ve already admitted to my age range … how many of you remember the song from 1969 that describes the future “In the Year 2525”? Here is the link http://en.wikipedia.org/ wiki/In_the_Year_2525 to it in Wikipedia, the free dictionary to which everyone contributes. That’s a story for another day. So onward we go into the brave new world of technology. It keeps getting better and better, doing more for us (and to us) every day. And I’ll keep plugging along, charging my batteries every 10 minutes, checking my Treo, logging on, plugging in … and whatever else we will be doing in the future. I just hope I can remember my passwords!

Susan W. Helm, RCE KAR Executive Vice President

Code of Ethics Do You Present A True Picture? Article 12 Addresses the Issue by Julie Johnson Professional Standards Director Kentucky Association of REALTORS®

nforcement of the Code of Ethics is a privilege and responsibility of each Board and Association as established by the Bylaws of the National Association of REALTORS®. Each year, NAR reviews the Code of Ethics and Standards of Practice and makes revisions when appropriate. At their meeting last fall, the NAR Board approved revisions to Article 12 of the Code of Ethics and approved two additional Standards of Practice.

Diane M. Mosley, Manager of Policy Resources for NAR, recently shared with me the rationale behind the revision of Article 12. Article 12 of the Code of Ethics has obligated REALTORS® to "be careful at all times to present a true picture in their advertising and representations to the public.” Mosley stated that while Article 12’s historic "true picture" requirement has protected consumers for many years, “…with exponentially-increasing use of the Internet, e-mail, text messaging and other forms of electronic communication, it was inevitable - and timely - that the Professional Standards Committee would study Article 12 with the objective of determining whether Article 12 is adequately broad in its scope to address all forms of REALTOR® communications.” A question the Committee asked was whether the phrase "advertising and representations to the public" is understood by our members as applying

to all communications through any medium, or whether it was viewed as applying only to members' advertising and marketing activities. It was the conclusion of the Committee that Article 12 might well be too narrowly drawn to be as effective as it should be in guiding REALTORS® in all of their real estate communications. The “new” Article 12 states the following: “REALTORS® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations. REALTORS® shall ensure that their status as real estate professionals is readily apparent in their advertising, marketing, and other representations, and that the recipients of all real estate communications are, or have been, notified that those communications are from a real estate professional. (Amended 1/08).” The new Standard of Practice 12-12 states that REALTORS® shall not: “use URLs or domain names that present less than a true picture, or register URLs or domain names which, if used, would present less than a true picture. (Adopted 1/08).” The new Standard of Practice 12-13 states: “The obligation to present a true picture in advertising, marketing, and representations allows REALTORS® to use and display only professional designations, certifications, and other credentials to which they are legitimately entitled. (Adopted 1/08).” The revision to Article 12 is expected to help protect REALTORS®' clients and customers by ensuring honesty and truthfulness in ALL real estaterelated communications, while retaining the historic "true picture" obligation with respect to advertising, marketing, and other representations.

For a complete copy of the code of ethics, go to http://www.realtor.org/mempolweb.nsf/pages/code.

SPRING 2008 KENTUCKY REALTOR® 29

A Day in the Life of... Two Kentucky REALTOR® Legislators Representative Danny Ford (R) House District 80 – Lincoln, Pulaski & Rockcastle REALTOR®

Representative Susan Westrom (D) House District 79 – Fayette REALTOR®

egislators (and fellow REALTORS®) from both sides of the aisle discuss their lives in politics and real estate and how both have co-existed during each of their tenures in the state’s capital. How long have you been a REALTOR®? Danny Ford: Since early 1975 Susan Westrom: Two years How long have you been in politics? Ford: I was sworn in on January 5, 1982 Westrom: Ten years Since you’ve been in office, what political action has had the most significant impact on real estate? Ford: It is difficult to say any one item has had the most effect on the industry. I think consumer protection legislation has done a great deal toward creating goodwill and professionalism.

How have your experiences as a REALTOR® influenced your career as a politician? Ford: I think both vocations go hand in hand since they are focused on helping and assisting people. In my legislative tenure a few years ago, I had the opportunity to pass some legislation that required insurance companies to pay for cochlear implants in patients who had been determined could be helped to hear. Westrom: I was asked to sponsor HB447 this session regarding inclusionary zoning. I am opposed to a local government having the power to dictate market price for a home and believe it sets a very dangerous precedent. It amazed me the number of people who crucified me for that bill because they felt I was opposed to affordable housing. I received hundreds of negative emails from people in my community who had no idea what the bill did, but were told to let me know how wrong I was.

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In your view, is it important for REALTORS® to be active in the political process? Ford: Every profession should be involved in the political process. People in the industry need to stay involved so they can stay abreast of what changes are taking place or being proposed about our profession. Staying involved gives you a heads up when contacting those involved in the issues. Westrom: Once a bill passes in Frankfort, it is very difficult to change. Bills that impact our industry may pass without anyone realizing the unintended consequences until it is too late. We cannot expect anyone to take care of our profession but us. What is your outlook on Kentucky’s housing market in 2008? Ford: I hope we will see a strong market for 2008. The factors that will have an impact will be interest rates remaining low and the subprime market. Fortunately, Kentucky doesn’t have an abundance of these loans. Westrom: Being an optimist, I will say it will rebound. These shifts run in cycles just like politics, so it is important to ride the tough times out. Have you ever listed a home or assisted another legislator in buying a home? Westrom: I did last year and had such a great time getting to know him and his wonderful family better. Briefly, is there anything else you would like to tell REALTORS® throughout Kentucky? Ford: We have a great organization and those who represent us in Frankfort as our governmental liaisons do an excellent job of having our industry’s voice heard.