Kyrealtorspring14

Kentucky

REALTOR 速

Spring 2014

A publication of the Kentucky Association of REALTORS 速

In this issue:

Building Your Online Reputation The Time is Now Eminent Domain and Condemnation: An Overview

kar.com

Contents

Volume 7, Number 1, SPRING 2014

IN THIS ISSUE

REALTORS® Are Only as Good as 10 Their Online Reputations A publication of the

Now is the Time to Go Paperless 11

Kentucky Association of REALTORS® President Ronald E. Hughes Paducah Board President-Elect Norman Jones Eastern Kentucky Association

In Memoriam: John H. Chandler 13

17 The Time is Now

Treasurer Gale Fulton Lexington Bluegrass Association Treasurer-Elect Mike Becker Northern Kentucky Association Chief Executive Officer Joe McClary jmcclary@kar.com Communications/Education Director Hunt Cooper hcooper@kar.com Address letters and inquiries to: Kentucky REALTOR® 161 Prosperous Place, Suite 100 Lexington, KY 40509 TF 800.264.2185 T 859.263.7377 F 859.263.7565 www.kar.com email: hcooper@kar.com KAR members should always send address changes to their local board/association first. Subscription rates: $10 per year (included in dues) for members, $25 per year for nonmembers.

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

Reproduction prohibited without permission.

Copyright © 2014. Kentucky Association of REALTORS®, Inc. All rights reserved.

Editor’s Note: Dear Editor: In the last Kentucky REALTOR® issue, in the article, “The Art of Prospecting,” Darryl Davis raised several questionable practices that I think should be addressed.

Page 7–The investor ad: his recommendation is a classic bait-and-switch approach, which in our view is misleading and unprofessional.

Page 15–Have a spotter for FSBOs: his recommendation is that we pay everyone we know for FSBO referrals, which is an illegal practice.

Sincerely, A Concerned Reader

REGULAR FEATURES

KAR News 4

President’s Message 5

Tools You Can Use 6

Legal Update 8 Legislative Update

14

Education

19

Local Association News

22

By the Numbers

24

Housing Stats

25

Community Profile

26

A Day in the Life of...

28

CEO Message

30

Editor Response: Thank you for your feedback. It is important that KAR promote the highest ethical and legal standards for real estate practice. The items you identified do not contribute to that goal and we are committed to setting the record straight. We have also updated our editorial review process to ensure suggestions such as this do not make it into our publications.

SPRING 2014 KENTUCKY REALTOR® 3

KAR News Anderson appointed to KREC Dana Wells Anderson, a real estate broker in Louisville and member of the Kentucky Association of REALTORS® (KAR), was appointed by Governor Beshear as a Commissioner with the Kentucky Real Estate Commission (KREC). Her term runs through October 1, 2017. Anderson, who has been in the real estate industry for nearly 30 years, is the director of the New Homes Division for Semonin REALTORS® and is a member Dana Wells Anderson (left) is welcomed to the Commission by Linda Gibson of the Greater Louisville Association of REALTORS®.

Cecil, Chair of KREC. Anderson is also a trainer with her company in the Career Development Department where she teaches a variety of educational courses including new home sales techniques, generational marketing and personality selling. Her role also includes mentoring both new and seasoned agents. Her past includes serving in real estate management positions as well as a certified instructor with KREC. Prior to moving back to Kentucky in 1992, Anderson was a top producing agent in New Jersey.

Award nominating forms

Our Affiliate Partners

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

REALTOR® of the Year Award Deadline: Sunday, June 1, 2014 Distinguished Service Award Deadline: Friday, June 13, 2014 Nat Sanders Educator Award Deadline: Friday, August 15, 2014 REALTOR® Community Service Award Deadline: Friday, August 15, 2014

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

If you want to nominate someone (even yourself) for these awards or want to learn more, visit www.kar.com > Members > Awards.

KAR Elections KAR is seeking nominations for several leadership positions for 2015. The information regarding the openings, terms, voting information and the form are included in the packet found on the KAR website under the Member section. If you need additional information or would like to discuss, please contact Julie Johnson, Legal Affairs Director, at 800.264.2185 or at jjohnson@kar.com.

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Open Positions: President-Elect (1 position, 1 year term) Treasurer-Elect (1 position, 1 year term) At-Large Director (3 positions, 3 year term) Region Director (3 positions, 2 year term) At-Large Delegate (3 positions, 3 year term) NAR Director (1 position, 3 year term)

Follow KAR on Twitter @kyrealtors KAR has posted its Twitter feed on the home page of its website so members and consumers can follow all the things going on with the association.

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

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

President’s Message

Striving to Become a Better REALTOR® August 1993. July 1994. These are two dates that stand out in my life. The first was the date I decided to make a career change and started preparations to sell real estate. The latter was the date I became a REALTOR®.

Between those two dates, I took the required courses of study for licensure and even some extra. During that time of study, I began to think about the broker I wanted to affiliate with once I had successfully completed all course work and testing to become a licensee.

I was fortunate to find one that was so ready to recruit that he gave me the best deal going.

And so began my journey into the profession of real estate and induction into the professional organization for REALTORS®.

As many of you, I have never been anything but a REALTOR® during my journey in real estate.

In my local area, as it is, there are very few non-REALTORS®. Therefore, like me I assume, most licensees have become REALTORS® at the very start of their real estate career. Because of this, many REALTORS® may not be aware of the differences between being a REALTOR® and simply a real estate licensee. And yet, there are very distinct differences.

One of the most touted differences is that REALTORS®, as a group, have set themselves apart by subscribing to a strict Code of Ethics.

A Code that sets out to protect clients, public in general and REALTORS® themselves. This Code, which was adopted by a group of real estate professionals in 1913, was agreed to because this group wanted the real estate industry to be something better–more prestigious, controlled and organized–than what the other so called “charlatans of the day” were doing at that time in real estate. They envisioned a group of people who set high standards for themselves, who provided the best, most ethical service possible for each and every buyer and seller could receive.

As I look at KAR today, I see many of those ideals still in place. Yet, I also see practitioners in the REALTOR® organization who are not aware of the keen difference between themselves and licensees or, to another degree, the difference between KAR and the Kentucky Real Estate Commission. It is apparent to me that we, as an organization, haven’t done a good enough job over the years to make sure our own members understand and embrace the differences.

When I think of KAR, I think professional, which by Webster’s definition is “worthy of the high standards of a profession.” And when I reflect on those high standards, it always brings me back the preamble of the REALTOR® Code of Ethics. Specifically, the 2nd paragraph which states:

Such interests impose obligations beyond those of ordinary commerce.

They impose grave social responsibility and a patriotic duty to which REALTORS® should dedicate themselves and for which they should be diligent in preparing themselves. REALTORS®, therefore, are zealous to maintain and improve the standards of their calling and share with their fellow REALTORS® a common responsibility for its integrity and honor.

Idealistic, maybe. Yet great things are often accomplished by idealists.

Please join me in striving to become a better REALTOR® and to reach higher than we can imagine. And, as always, I look forward to seeing you as I travel across the state.

Make a difference, be the difference.

Ron Hughes, 2014 KAR President

SPRING 2014 KENTUCKY REALTOR® 5

Tools You Can Use Surprise! Professional photos help home sales We all know good photos help sale a home but how much does it help. According to a Redfin survey, professionally photographed homes tend to sell for more money and sell faster than homes listed with point-and-shoot cameras. The study found that homes priced between $200,000 and $1 million sold for an average of $3,400 to $11,200 more than their list prices when professionally photographed than homes with amateur photos. For homes priced between $400,000 and $499,999, the study found that homes professionally photographed sold for $11,200 more. The study evaluated sales success of homes shot professionally with a digital single-lens reflex camera versus homes shot with amateur, point-and-shoot cameras. The study also found that homes in the $400,000 range that were professionally photographed sold 21 days faster than those photographed with point-and-shoot cameras. Since cameras have been getting better and better over the past years, why are the photos most real estate agents take not getting any better? Most agents take photos of rooms without a thought as to what it will look like in print or online. The photos in the MLS can be very poor, and some agents don’t even put in photos at all.

.REALTOR Domain to be available To stay ahead of the rapidly changing Internet and differentiate REALTORS® from nonmembers, NAR is securing the .REALTOR domain for members. Hopefully, you have already heard about this initiative and reserved your account real estate online. If not, the priority registration period has ended but it may not be too late. Once the domain license is granted, NAR will open registrations back up to members and the first 500,000 members who register a domain will have the first year free on one domain. A launch date for the domain has not yet been announced, however, KAR will send notice when this happens and you can always check www.realtor.org/domain for the latest updates. The .REALTOR domain will not only help brand members’ Web sites but also make it easier to show that members adhere to a code of ethics and professionalism and are a trusted source of real estate information, giving REALTORS® a competitive advantage.

Twitter feeds get photo and video previews Twitter has added photo and video previews to users’ timelines, making the photos and videos visible in users’ feeds without having to click a link. Tweets that include photos or six-second videos from Vine, Twitter’s video creation service, will automatically preview those images directly in users’ feeds. If you are not on Twitter, you should be—real estate professionals are heavy users of the service. In a 2012 technology report from the Center for REALTOR® Technology, 28 percent of brokers said they use Twitter for real estate business purposes, and 26 percent of agents said they do the same.

Do you really know Siri?

The rating system Siri uses in searching is Yelp, the online urban guide and business review site. This highlights the importance of establishing an account, utilizing this tool and, most importantly, having clients provide reviews on the site as a way to boost your SEO so you can be found through mobile search.

Below is a list of 10 real estate photography mistakes seen most often (as posted on ActiveRain): 1. Photographs that still have the date stamps on them.

10 social media do’s and don’ts At the NAR Conference in San Francisco, Nobu Hata, director of digital engagement with NAR, shared his top ten tips for social media to a standing room only crowd. Here is the brief overview:

2. Crooked photos of the inside or outside of the home.

1. Embrace concepts, not brands.

3. Blurry or out-of-focus photos.

2. Protect your clients, listings, and reputation.

4. Partial room shots where just the corner of the room is shown.

3. Infuse your daily practice with some “social” element.

5. Photos with people or pets in the shot.

6. Photos with open toilets in them.

7. Interior photos with bad tint.

8. Exterior shots taken into the sun.

9. Interior photos that are dark because there are no lights on or it is too dark outside.

10. Photos with mirrors or windows that show a flash of light and the agent with a camera.

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4. Adhere to MLS and other copyright laws and guidelines.

5. Don’t be a jerk, but don’t feed them either.

6. Use social to learn, but always think local.

7. Be “social” in your marketing; think beyond listings.

8. Use social media to differentiate, inform, project.

9. Allow your clients to be “social” advocates for you.

10. Remember: the social web is now mobile.

Cost vs. Value Report Home improvement projects across the board are giving home owners a greater return on their investment when it comes time to sell. As existing-home sales and home prices make remarkable strides upward nationwide, remodeling projects are also continuing to make a comeback in a big way. This is the second year in a row that all 35 projects in Remodeling magazine’s Cost vs. Value Report saw more home improvement dollars recouped upon resale of a home than the previous year. Do you want to know which projects “open the door” to buyers and where remodeling dollars stretch the furthest? Visit www.costvsvalue.com to find information from the 101 cities included in the survey and download free PDFs that include specific metro-area market data.

5 financial reasons for taking the leap into homeownership: These reasons seem obvious to most folks working directly in real estate but it never hurts to be reminded of some of the top benefits of homeownership: 1. Increased Net Worth: Homeowners are worth 30x’s more than renters.

2. Investment Benefits: You are paying for housing whether you buy or rent. Invest your dollars in something you own rather than paying a landlord.

contracts and other documents not controlled by the lender. This also includes REO sales contracts.

The FHA says it believes the acceptance of e-signatures will help streamline the loan origination process and help reduce document submission time frames for borrowers who are seeking options to avoid foreclosure too. As part of this new policy, the FHA will not yet accept e-signatures on the mortgage note itself. However, the FHA says it plans to accept e-signatures on mortgage notes by the end of the year.

Most Facebook users don’t share Facebook boasts more than 1.2 billion users worldwide, but only a small percentage are using the social network to share details about their lives every day, according to a new Pew Research survey. The survey of 1,800 adults shows that only 10 percent update their status daily, while 4 percent update it more than once a day. About 15 percent of users comment on photos more than once a day. Surprisingly (or not), a quarter of survey respondents say they share nothing at all on Facebook. The survey also found that about 36 percent of users said they disliked it when people share “too much information about themselves.”

Facebook “f ” Logo

CMYK / .eps

Facebook “f ” Logo

CMYK / .eps

Some other findings from the survey: • 44 percent of users click on the “like” button on content posted by their friends.

• The average adult on Facebook has 338 friends.

3. Home Equity: Equity in your home can help pay for college, retirement, and major life events.

• 27% said they disliked “other people seeing posts or comments you didn’t mean for them to see.”

4. Tax Benefits: Homeowners can deduct mortgage interest and property taxes from their income.

• Daily active users were up 22 percent year-over-year.

5. Savvy Financial Habits: Owning a home means more financial responsibility and encourages better saving and spending habits.

How much do you share?

Facebook boasts more than 1.2 billion users worldwide, but only a small percentage are using the social network to share details about their lives every day, according to a new Pew Research survey. The survey of 1,800 adults shows that only 10 percent update their status daily, while 4 percent update it more than once a day. About 15 percent of users comment on photos more than once a day. About 25 percent of survey respondents say they share nothing at all on Facebook. The survey also found that about 36 percent of users said they disliked it when people share “too much information about themselves.” These people are affectionately referred to as “super sharers.” Some other findings from the survey showed that 44 percent of users click on the “like” button on content posted by their friends and the average adult on Facebook has 338 friends.

FHA accepts e-signatures The Federal Housing Administration is now allowing lenders to start accepting electronic signatures on mortgage loan documents. The FHA will accept the e-signatures on third-party documents, such as sales

Bits and Bytes App of the Day MagicPlan: iPhone (Floor Plan Creator: Android) The app allows you to create custom floors plans by moving your phone or iPad around the room taking pictures while it automatically maps out the room in a number of formats (pdf, jpeg, dxf and html). You can use the floor plans in a number of ways: clients can make house plans for use before a heavy remodel to help plan for materials, to make quick floor plans to include in online listings and to use in other marketing material. The price is free for personal use and to make plans on your device or $2.99 to download a “white labeled” plan.

Subscription plans are also available.

SPRING 2013 KENTUCKY REALTOR® 7

Legal Update

Eminent Domain and Condemnation: An Overview

By Jason C. Vaughn

The pending Bluegrass Pipeline project involves the transport of natural gas liquids from West Virginia, Pennsylvania, and Ohio to the U.S. Gulf Coast. The proposed pipeline would cut through 13 counties in Kentucky: Bracken, Pendleton, Harrison, Grant, Owen, Scott, Franklin, Woodford, Anderson, Nelson, Larue, Hardin, and Breckenridge.

The project requires that a permanent easement for the pipeline be obtained from property owners along the pipeline route, which easement will be obtained by eminent domain procedures. In light of these recent events, this article provides a general overview on eminent domain and condemnation procedures, which may affect properties that you come across in your practice.

What are eminent domain and condemnation?

“Eminent domain” is “the right of the Commonwealth to take for public use and shall include the right of private persons, corporations or business entities to do so under authority of law.” Eminent Domain Act KRS 416.540, et seq. Eminent domain is the actual power of the Commonwealth to take private property for public use.

“Condemnation” means “to take private property for a public use under the right of eminent domain.” Condemnation is the actual process of taking the private property for public use, pursuant to the Commonwealth’s eminent domain powers.

What is public use?

Eminent domain may “be exercised only to effectuate a public use of the condemned property.” “Public use” is defined by statute, and means the following: (a) Ownership of the property by the Commonwealth, a political subdivision of the Commonwealth, or other governmental entity; (b) The possession, occupation, or enjoyment of the property as a matter of right by the Commonwealth, a political subdivision of the Commonwealth, or other governmental entity; (c) The acquisition and transfer of property for the purpose of eliminating blighted areas, slum areas, or substandard and insanitary areas in accordance with KRS Chapter 99; (d) The use of the property for the creation or operation of public utilities or common carriers; or (e) Other use of the property expressly authorized by statute.

How much property can the Commonwealth take?

The condemnor, the party exercising its eminent domain power, may only take such title to the property as necessary for that particular public project. If, for example, if a condemnor only requires an easement, it cannot take fee title to the property. The taking must bear

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a reasonable relationship to the public interest or welfare. Condemnors do, however, have broad discretion in the amount and location of land that is to be taken, and such discretion is not reviewable by the courts unless there has been gross abuse, bad faith or manifest fraud. Further, condemnors may take property in contemplation of reasonable future needs.

What is just compensation?

The Kentucky Constitution mandates that property owners are entitled to just compensation for the taking of their property by the exercise of eminent domain. Except in the case of temporary easements, just compensation is the difference between the property’s fair market value immediately before the taking and immediately after the taking. “Fair market value” means “the price which it will bring when it is offered for sale by one who desires to sell but is not compelled to do so, and

is bought by one who desires to purchase but is not compelled to have it.” Further, in Kentucky, business damages, such as lost profits, as not compensable in condemnation proceedings.

There are three methods for determining the market value of the property: (i) market data or comparable sales approach (being the most commonly used approach), (ii) income approach, and (iii) cost approach. Whichever approach is used, the determination of fair market value should include a determination of the highest and best use of the property. There are also other rules regarding the determination of market value and compensability of various items related to the taking in specific situations.

THE CONDEMNATION PROCESS What are the first steps in initiating condemnation?

One of the first steps in the condemnation process is that the condemnor must adopt a resolution that determines that the property is required for public use. This requirement gives advance notice to the property owners, and allows them to protest or otherwise take action.

Next, prior to initiating the condemnation action, the condemnor must first attempt to acquire the property from the owner through good faith negotiations. The condemnor must make a “reasonable effort in good faith to acquire the land by private sale at a reasonable price.” This step is a prerequisite to condemnation, and only has limited exceptions.

Can the condemnor enter the property?

The condemnor is also permitted to enter the property to perform a survey or appraisal, or to conduct environmental studies. This entry may be made prior to the initiation of condemnation proceedings as long as the property owner is provided with ten (10) days prior notice.

The statute further provides a mechanism for the property owner to object to such entry, and allows for any damages the owner sustains while the condemnor is on the property.

How is the condemnation petition initiated?

The petition for condemnation is filed in the circuit court of the county in which all or a greater portion of the property is located. The Act specifies certain information that must be included in the petition.

After the petition is filed, the Court appoints three impartial commissioners to view the property. Within fifteen (15) days after their appointment, the commissioners must file a report with the court, which describes the subject property and awards the compensation of an amount to fairly compensate the owner for the reduction in market value of the property.

After the commissioners’ report is filed, upon application of the condemnor, the court will issue a summons to the condemnee. The condemnee has twenty days after service to file an answer to the petition. The condemnee’s answer is confined solely to the question of the condemnor’s right to condemn, but does not affect the condemnee’s ability to challenge the amount of compensation.

What happens after an answer is filed?

If the condemnee files an answer or other pleading challenging the condemnor’s right to condemn, the court must hear and decide whether a right to condemn exists. If the court determines that a right to condemn does not exist, it will enter a final judgment dismissing the petition and directing the condemnor to pay the costs. If the court determines that a right to condemn exists, it will enter an interlocutory judgment. If no challenge to the right to condemnation is made, the court will also enter an interlocutory judgment.

What is an interlocutory judgment and can it be appealed?

The interlocutory judgment authorizes the condemnor to possess and use the property upon payment of the commissioner’s award to the owner or the court clerk. The owner has the right to withdraw the money unless there are conflicting claimants to the condemned property, but, if the owner is awarded less than he withdraws, he has to repay such money with interest. If the condemnee refuses to vacate the property, the condemnor may apply for a writ of possession, directing the condemnee to vacate the property.

Parties may appeal the interlocutory judgment within thirty (30) days of the date of entry. Further, either party may file an exception within thirty (30) days of the entry of the interlocutory judgment. The only issue raised in an exception is the amount of the commissioners’ award.

The jury will then try the issue of the fair market value of the property.

Moreover, if development has not begun on the property condemned within eight (8) years of the deed or the date the condemnor took possession, the condemnor must offer the property back to the condemnee at the price originally paid.

Who has to pay for the condemnation costs?

Court costs of the condemnation action are borne by the condemnor.

The costs of any appraisal, however, are the responsibility of the condemnee, the person whose property is being condemned. The appraisal costs are not court costs, and are not recoverable.

Conclusion REALTORS® should make sure to be aware of, and to discuss, any provisions or possibilities of eminent domain and condemnation in their real estate transactions. This especially applies with commercial property, and especially in the above-mentioned counties likely affected by the Bluegrass Pipeline project.

This discussion should not be viewed as legal advice. Please consult your attorney.

Jason Vaughn is a lawyer with Vaughn & Smith, PLLC in Louisville and serves as legal counsel to KAR. The attorneys at Vaughn & Smith, PLLC constantly monitor the real estate industry as a whole, as well as any and all changes in the law that may affect it. They have intimate knowledge of commercial and residential real estate transactions and can utilize this base knowledge when representing their client’s interests.

SPRING 2013 2014 KENTUCKY REALTOR® 9

Feature Article

REALTORS® Are Only As Good As Their Online Reputations

By Craig Grant

In any service oriented industry, one’s reputation and image are vital, but in real estate where every transaction is one of the biggest decisions in a person’s life, it is paramount.

In the old days it was easier to build, maintain and monitor one’s reputation because it typically existed within your circle of influence and local market.

• Set up Google Alerts – enter any keyword or phrase and receive an e-mail newsletter of links to web pages or articles anytime those words are mentioned online

Those were the good old days. Now the Internet has allowed us to expand our reach to a global audience and all of our communications have gone digital (e-mail, voicemail, text message, social media, forums, etc.). This means they are permanent, and especially with the rise of social media, easily distributable. So, if you make one little mistake or have one irrational client who wants to defame you, it can hurt all of the good will you have built up over the years and potentially ruin your business.

• Monitor the mentions and direct messages on social media sites (or use aggregation tools like HootSuite.com to consolidate this effort)

Now there are so many social media and customer review sites, chat rooms, forums, etc. on which your customers and prospective customers could be talking about you. So how do you focus on your “job” as a REALTOR® and yet somehow keep up with all of this? Lucky for you, here are some great tips & tools available to help you manage your online reputation: • Always think before you hit Send or Submit as you can’t take it back. Also, always try to use proper online & offline etiquette & avoid negative situations (disagreements, petty or trivial activities, etc.) that can be used against you.

• Google YOURSELF, and see what shows up and know what you are up against; you know your prospective clients will.

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• Create a defined presence for yourself online. Everything you have online (your website, blog, social media profiles, etc. should be similarly named (NameChk.com) and linked to each other (AddThis.com). This gives the consumer (as well as the search engines like Google) a clear picture of who you are online. If you want to take it a step further for Google, create an account at Klout.com that will also track your online activity. If you are going to choose one social media site to create a profile on, make it LinkedIn as it is typically the first thing that shows up when someone searches for your name.

• Check how you are faring on customer review sites like Yelp, Zillow, RatedAgent.com and HomeAdvisor.com. When it comes to Yelp, you may also want to check out the list of affiliate vendors (plumbers, electricians, etc.) you typically recommend to your clients to make sure they make you look good because if a client has a negative experience with one of your referrals it can negatively reflect on you.

• While it impossible to rule out being implicated in a listing related scam (most commonly on Craigslist), you can monitor your listings’ online activity by creating a listing activity report at ShackShout.com or Google Alerts (detailed above)

• Consider enlisting a product like Reputation.com or Brand.com to help you in all aspects of reputation management (similar to credit monitoring services) including assistance in removing unwanted information (slanderous posts, bad reviews, legal records, etc.) off the internet If you are a company owner or broker, you might want to seriously consider creating a Company Usage Policy. This is a contract (that you can easily create at http://socialmedia.policytool.net) that defines a set of guidelines/rules of what your employees are allowed to do and allows you to legally monitor their online activity. This has become a necessity in the real estate industry due to the fact that the internet has made it so easy to slip up. For example, if an agent commits a fair housing violation, the broker and company would not only have to deal with the negative repercussions with their client base, but the broker is also held legally liable for their agents’ actions. So, if you are looking for a tool that will effortlessly allow you to track your team’s online activity, check out ExactTarget.com.

Now is the Time to Go Paperless

Hopefully these tips and tools will help keep you safer and your reputation intact so that the next time your future clients Google you, they will hire you because they find nothing but good things!

Seize your window of opportunity with real-time showing alerts

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Habits and routines are hard to break, but there is one routine you have most likely been doing for years that is worth letting go.

And that of course is paper. That’s right, you’ve got to free yourself from printing everything out, filling up those file cabinets with every document, transcribing every communication and so on.

For as much comfort you think it is providing you, the reality is other than being costly (printer, paper, ink, etc.) and hurtful to the environment, continuing to use paper really holds back your productivity and can be a major time waste.

Just think of all the time you have wasted rummaging through a stack of paperwork, plowing through folder after folder or reading through page after page of documents trying to find something.

So while you have convinced yourself that the way you have been operating is optimal, it really isn’t. By going paperless, all of your files, communications, etc. would be digitized which means they are indexed and searchable. If you want to pull a client’s account or search for anything, you can do so in seconds.

And the reality is, if you know the right tools to use, going paperless is not as scary as you think it will be and once you do it, you will see it is even more liberating that you could ever imagine. So make this the year you finally cut the cord, lay those old habits to pasture and go paperless.

tools you need to look into to truly go paperless: 9/13/2013

11:10:21 AM

• Google Apps for Business (www.google.com/apps/business) – a full suite of web based software including vanity e-mail (yourname@ yourwebsite.com), calendar, contacts, docs (office), drive (file storage/ sharing similar to Dropbox), hangouts (phone & communication similar to Skype), Keep (similar to Evernote) & much more.

• Evernote – an amazing cloud based system for personal organization of files, folders, notes and much more that integrates with hundreds of other popular online tools and apps.

• VOIP or PBX & E-Faxing – an often overlooked piece, but by making your phone systems internet based, it consolidates all of your voicemails and faxes to your e-mail, thus making your mobile office a reality.

• Cloud Based Customer Relationship Management (CRM) Solution – To truly manage your business, you need to be able to stay on top of, access, update and service your client base from anywhere.

• Forms & Document Management – the ability to digitally edit and create forms related to your transactions and have everyone involved digitally sign and have those documents stored online in the cloud is essential to going paperless.

• Mobile Devices & Apps – there are many amazing apps that can help you in all aspects of your life and business and aid in the effort of going paperless.

Craig Grant of The Real Estate Technology Institute and EasyRealtySites.com is a national speaker on all aspects of technology, marketing and risk management as well as a top consultant for REALTORS® looking to run their business more productively and cost efficiently using technology. Craig will be a featured speaker at the 2014 KAR Convention & Expo in Bowling Green, KY on September 23-25. He will be expanding on many of the tools discussed in this article. For more information, he can be reached at 352-400-4857 or by email at Craig@RETI.ws.

SPRING 2013 KENTUCKY REALTOR® 11

Professional Standards

Brokers: Ignorance is Never a Good Defense As a broker, you understand that you have a duty to manage the sales associates under your supervision. A recent ruling in Tennessee (bit.ly/ tnbroker) underscores the importance of this responsibility. In this case, the managing broker was held accountable for the misrepresentations and negligence of an affiliate broker even though the managing broker was not personally involved in the transaction.

As a broker and a REALTOR®, you have duties and obligations to the public which exceed the capacity or power of the law to mandate. Those obligations are identified in the REALTOR® Code of Ethics. An ethics complaint may be filed by anyone who believes a REALTOR® has violated the REALTOR® Code of Ethics. The complainant may be a licensee, a fellow REALTOR®, a client or a customer. The customer may have been someone who received information, services, or benefits from you, but had no contractual relationship with you or your firm.

While the broker with whom a Realtor® is affiliated is not automatically joined in any ethics complaint against a REALTOR® under their supervision, the broker can be added later by the complainant, by the Grievance Committee or by the Hearing Panel, based on the facts provided by the complainant. If this happens, the broker becomes the co-respondent to the ethics complaint and is subject to discipline if found in violation of the REALTOR® Code of Ethics.

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There are Case Interpretations (search “case interpretations” at realtor. org) developed by the National Association of REALTORS® to help REALTORS® understand the ethical obligations created by the Code.

These case interpretations can also help guide grievance committee members, hearing panel members and appeal panel members as they evaluate ethics complaints and decisions made by hearing panel members.

Three Case Interpretations specifically address the broker’s duty to manage their affiliated sales associates. As you review Case #2-2: Responsibility for Sales Associate’s Error, Case #2-9: REALTOR®’S Responsibility for REALTOR®-Associate’s Statement and Case #4-3: Disclosure of Family Interest, you will find that the broker is not always found in violation of the Code of Ethics if the sales associate is found in violation. The findings of the hearing panel are based on the facts and merits of the case against each co-complainant. Likewise, discipline for the broker may vary from discipline imposed on the sales associate who may have been found in violation.

Bottom line: managing brokers cannot avoid their statutory duties under the law, or under the REALTOR® Code of Ethics, by purposefully remaining ignorant of the substance and details of a sales associates’ actions.

In Memoriam

John H. Chandler, KAR Past President 1934–2014

John H. Chandler, who considered his REALTOR® family his second family, passed away on March 1, 2014. During his 40 year career in real estate, he became heavily involved with the Cumberland Valley Board of REALTORS® (CVBR) and the Kentucky Association of REALTORS® (KAR) and developed many lifelong relationships with his fellow REALTORS®.

“John was one of a kind! He was witty and humorous, but serious when needed. He was a friend, both honest and sincere, that could always be counted on. He was the photographer for many of the Past Presidents and was always taking pictures, whether you wanted him to or not. And you could count on it, shortly after the function, you would receive a card and a copy of the pictures you were in. Those pictures provided lots of memories for many people. John has left a void that will can’t be replaced.” – Becky Murphy, 1996 KAR Past President Chandler was elected to every office in the KAR during his career, including serving as KAR president in 2003. In 1998, he was recognized as REALTOR® of the Year for KAR and in 2012 was awarded the highest honor for the Association, the Distinguished Service Award, which is given to someone who has provided outstanding contributions and service to the real estate industry and his local community. He also served on KAR’s Board of Directors, Delegate Body and Executive Committee. In addition, he gave his time to professional standards, strategic planning, finance and investment and served as a Trustee with the Kentucky Real Estate Education Foundation. Chandler also served as a Director for the National Association of REALTORS®. Locally, he was named REALTOR® of the Year three times receiving the award in 1989, 1996 and 2002. He also served two terms as president for the Appraisal Institute, Bluegrass Chapter (AI) and was named the Chapter’s Appraiser of the Year.

Chandler was born in Mershons, KY on August 11, 1934 to Raymond and Nancy Proffitt Chandler. He attended Hazel Green High School in London and graduated from Hamilton High School in Ohio.

He later served his country in the US Army, and began a career in manufacturing after being honorably discharged. In 1969, Chandler took the bold step of moving his family to Corbin, KY to establish his real estate firm.

“John was a very thoughtful man and a good friend. I always enjoyed the pictures he took and remembering each moment when I received them shortly after.” – Evelyn Pusateri, 1992 KAR Past President Throughout his life, he put his family first, especially his two children.

He believed in the value of education and hard work and instilled those values in his children. He was a strong believer in the Christian faith and was a dedicated servant to his community. He will be remembered as a selfless father, a great friend and a true contributor to his profession and community.

“John was my friend as well as my colleague. He and I worked closely for many years for the real estate industry in our state.

He was compassionate, humble and had a very charitable, loving heart. I will truly miss him.” – Linda Moore, 2000 KAR Past President One of his favorite quotes was from Walt Disney and read “All of our dreams can come true – if we have the courage to pursue them.”

“He told me during one of my visits to him in the hospital that he is not afraid of dying. He had lived a full life and had two wonderful children who were very successful and made him proud.” – Barbara Flannery, Fellow REALTOR® and close friend

“I always enjoyed listening to John telling stories about his business and life in general. He was a person who would, as the saying goes, give you the shirt of his back. John was a true friend to me and many others and will be greatly missed. I know his photo history of the Association will be preserved for years to come.” – John Davis, 1999 KAR Past President

FALL 2012 KENTUCKY REALTOR® 13

Legislative Update

Why do REALTORS® need to be politically involved?

Public policy decisions affect our ability to make a living.

Government affairs has never been more important to the real estate industry. Almost every day, government officials make decisions that affect the ability to buy, sell or use private property. REALTORS® must be strongly involved in the decisions that affect their livelihood.

• Taxes: sales tax on services, transfer tax, property tax, business taxes, impact fees • Business: license law, disclosures, home inspections, closing costs, business license, property management, sign codes • Housing: availability, affordability, property rights, schools, parks, zoning • Jobs/Economy: economic development, infrastructure (roads, water, sewer, mass transit), permitting process, building codes, zoning, comprehensive planning, land use Public Policy is set by elected officials. REALTORS® have the opportunity to elect the right government officials making decisions on public policy issues affecting real estate and REALTORS®. We can elect candidates who support policies that improve property rights and support the real estate business. We can develop critical relationships with policy-makers who will advance our legislative priorities.

Electing REALTOR® Champions positions REALTORS® for positive public policy. Simply put, it is easier to affect public policy if the elected officials support REALTOR® issues. By electing REALTOR® Champions, we can be assured that the REALTOR® perspective will be considered. Too often, we have found ourselves spending most of our time opposing bad ideas. Electing REALTOR® Champions to office will help the REALTOR® organization develop a proactive public policy program that will implement good ideas – good for housing, neighborhoods, the environment, the economy and ultimately, the real estate business.

The National Association of REALTORS®, KAR and your local association of REALTORS® together as a team have stopped proposals that would make it harder for you to conduct business.

REALTORS® Applaud Speedy Senate Action on Bipartisan Flood Insurance Affordability Bill In March, the United States Senate voted 72-22 to approve the Homeowner Flood Insurance Affordability Act (H.R. 3370). The Senate acted quickly to pass the bill as amended by the House to avoid the need for a conference committee to reconcile any differences. The new bill further reins in and holds the Federal Emergency Management Agency (FEMA) accountable for the Biggert-Waters implementation issues.

As passed, the bill repeals FEMA’s authority to increase premium rates at time of sale or new flood map, and refunds the excessive premium to those who bought a property before FEMA warned them of the rate increase. The bill limits premium increases to 18% annually on newer properties and 25% for some older ones. Additionally, the bill adds a

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small assessment on policies until everyone is paying full cost for flood insurance. President Obama is expected to sign the bill into law when it arrives at the White House. NAR had urged a swift vote in the Senate.

To see more, visit bit.ly/floodissue.

The following is a statement by National Association of REALTORS® President Steve Brown: “REALTORS® applaud the Senate for passing the Homeowner Flood Insurance Affordability Act, H.R. 3370, to curb flood insurance rate hikes for homes and commercial properties.

“As the leading advocate for home and property owners, NAR applauds this bill for the relief and protection it will bring to businesses and families nationwide, who are experiencing financial hardship because of the extreme and sudden premium increases. We believe this legislation will bring relief to property owners by ensuring a slow and steady phase in of risk-based increases.

NAR urges President Obama to quickly sign the legislation into law.”

The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

Mortgage Debt Forgiveness: It’s All About Fairness NAR supports an exclusion from taxation of the “phantom income” generated when all or a portion of a mortgage loan is forgiven and NAR supports an extension on mortgage debt cancellation relief.

This issue is all about fairness and it is unfair to ask homeowners who are underwater on their mortgage and who make the prudent decision to do a short sale instead of foreclosing on their home to pay tax on the forgiven amount of the loan. This is wrong and encourages homeowners to foreclose which depresses property values, hurts the consumer credit scores and slows the housing market.

During the housing market crash Congress passed a law that exempted the forgiven amount of debt from being taxed. The law was extended but ended in 2013. NAR worked with Congress to introduce legislation that would extend the mortgage debt relief cancellation for an additional two years.

Federal Tax Reform In late February, House Ways and Means Committee Chairman Dave Camp (R-MI) released his long-awaited discussion draft for comprehensive reform of the tax code. The draft includes dozens of provisions that would affect real estate, and they are overwhelmingly negative. This plan was released as a discussion draft only, rather than as an introduced bill. However, its provisions are important because Members of Congress could endorse them and possibly include them in a future tax reform bill that is more viable. Concerns include: 1. Proposals Affecting Homeowners – increase the standard deduction, repealing the deduction for state and local taxes, limitations on deductibility of mortgage interest, exclusion of gain from sale of principal residence.

2. Proposals Affecting Commercial Real Estate and Investment Property – 1031 like kind exchanges, depreciation, depreciation recapture and carried interest.

3. Proposals Affecting REALTORS® - determination of worker classification/independent contractor status.

To view the preliminary summary and brief analysis, visit bit.ly/ nartaxreform.

Rural Communities Protected Through 2020 More than 900 communities that were at risk for losing access to federal rural housing programs are now protected through 2020. For the last three years, NAR has worked with Congress extend the eligibility of communities under a 40-year old definition of rural. The United States Department of Agriculture (USDA) had been required to revise the list of communities eligible for rural housing loans based on the 2010 census data—and apply them to the 1974 definition. But recently the President signed H.R. 2642, the Agricultural Act of 2014 (aka the Farm Bill), that will protect these communities through the release of the 2020 census.

2013 RPAC Awards and Honors Highest Membership Participation Henderson-Audubon Board 92% Participation Most Contributions Raised (Overall) Lexington-Bluegrass Association $40,000 Pacesetter Award (first to achieve goal) Hopkinsville Christian & Todd County Board December 2012 Largest Percentage Over Goal (Small Board Division) Hopkinsville Christian & Todd County Board 297% of Goal

Linda White, HendersonAudubon Board President receives award from Jayne Cox, RPAC Chair.

Largest Percentage Over Goal (Medium Board Division) Greater Owensboro REALTOR® Association 193% of Goal Largest Percentage Over Goal (Large Board Division) Lexington-Bluegrass Association 147% of Goal

RPAC As a leading force in our nation’s public policy debates the REALTOR® Party supports Republicans, Democrats and Independents who support issues that matter to you.

The REALTORS® Political Action Committee (RPAC) is the only political action committee in the country dedicated to furthering the real estate industry. For almost 45 years, RPAC has worked to ensure that the real estate industry speaks with a unified voice, and continues to provide you with an influential political presence in our nation’s capital, state legislatures and city halls.

As important as it is to be involved in your local community, it’s equally important that we, as REALTORS®, are involved at the state and federal levels of government. By participating in RPAC, your voice is heard collectively with hundreds of thousands of your colleagues’ across the country. RPAC provides you a seat at the table. If you don’t get involved, you may face the prospect of bad legislation or a new set of crippling regulations.

Get involved by joining hundreds of your colleagues nationwide, who agree RPAC is the best investment you can make to influence your profession’s growth, the stability of the real estate industry and the stability of our communities.

2013 Major Investors Golden R’s Al Blevins* Betty Schutte* Guy Montgomery* Charlie Murphy* Tony Clark* John Weikel*

Sterling R’s Ann McDonald* Carl Tackett* Constance Lawson Harrell Tague Brenda Loyal Michael Becker

Carolyn Edwards Bill Leslie Jayne Cox Michael T. Inman Barbara Flannery Becky Murphy Barbara Curtis

R. “Rip” Phillips Linda Wiley Melissa Winchell Dennis Anderson Bridgett Collier Brad DeVries Lois Ann Disponett

Ronald Hughes Todd Hyatt Rue Mc Farland Jerry Mc Mahan Joseph McClary Joseph Simms

*denotes Presidents Circle. Bold denotes Hall of Fame

SPRING 2014 KENTUCKY REALTOR® 15

Legislative Update cont.

Real Estate Education Reform In September of 2013, the KAR Board of Directors decided to support a series of recommendations published by the Kentucky Real Estate Commission to improve real estate education in the State of Kentucky. KAR’s support included coordinating lobbying efforts and working directly with the Real Estate Commission to pass the most significant education reform in recent memory.

Those four recommendations are: 1. Increase annual continuing education requirements for all licensees from 6 hours to 12 hours (6 elective, 6 law) per year.

2. Require all Commission approved instructors to take 6 hours of training per year – 3 hours in a Kentucky legal updates and 3 hours in instructor training.

3. Require all new licensee to take a post-licensing program to comprise of 12 hours within six months of licensure that will consist of four (4) three (3) hour courses.

4. Require all brokers and/or licensees in supervisory positions to take a mandatory course, such as the broker core every 2 years.

Two of the four recommendations (items 1 and 3) would require a statute change to impose. The remaining items could be implemented by regulation.

In a united show of support, a number of local associations in Kentucky representing a majority of REALTORS® considered the reforms and voted, in most cases unanimously, to back the recommendations. This strong show of support from the KAR Board of Directors and a majority of leaders in the industry in Kentucky provided a clear direction on where to focus the association’s resources. Despite substantial backing for reform, the proposal did not garner support from some licensees who had concerns with a several issues that we will address here.

The Need for Meaningful Regulation In the course of advocating for real estate education reform, we learned that some licensees have an issue with the general regulation of real estate brokerage. It is the perspective of some that the real estate industry would be better off without governmental regulation and thus do not want the government to impose more mandatory real estate education. To be fair, on many occasions REALTORS® should be skeptical of government involvement. However, there is an appropriate balance between what is left to free markets and the imposition of regulatory systems that govern them. Policy makers can look to countries such as India or any number of others, to see the effects of no real estate brokerage regulation (http://goo.gl/QthNzj).

Essentially, most countries not in the third world have a real estate regulatory authority and identify the need for some regulation. Those countries that do not are often plagued with corruption. At home in the United States, real estate license law goes back for most jurisdictions to the early 20th century. Kentucky’s license law dates back to 1924.

Throughout the past century, jurisdiction after jurisdiction has come to the realization that regulation of real property brokerage was necessary to maintain a level playing field for brokers and protect the public from

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unscrupulous land deals. Every state in the United States has a real estate licensing authority and all states require continuing education for real estate licensees. New Jersey was the last to begin requiring continuing education of its licensees and now requires 12 hours annually.

Essentially, there is a place for regulation and setting minimum education standards for practicing real estate brokerage. The public deserves competent and professional practitioners and free markets alone will not maintain them.

Classroom and Online Education An opponent of real estate education reform recently said that the primary reason for opposing it was “so people don’t have to go and spend another day in class.” In the 21st century, no real estate licensee has to go to class to complete their continuing education. Distance learning courses are approved for credit 24/7. Some students may be dissatisfied with the quality of online courses. One of the primary reasons quality lacks in many online courses is the courses are not designed for Kentucky licensees. They are designed by education providers who want to market their courses in as many states as possible and remove state specific content. In addition, some providers intentionally simplify course content so it won’t take a student too long to complete or be considered too difficult. After all, education is one of the only things people are willing to pay for and not receive.

Developing online courses specifically for Kentucky licensees is an expensive and risky business because the entire real estate education market consists of only 72,000 hours of education (12,000 licensees X 6 hours). The Kentucky Real Estate Education Foundation has had to be very selective about the courses it offers because it is very easy to build a great online course and not recoup the investment. Essentially, to develop quality online courses requires investment and an ample market that will allow the developer to breakeven or make a reasonable return.

The undisputable fact, in most cases, is that the number one factor in determining the quality of education in the state is the money course providers can make offering the course. While this doesn’t sound noble, it is a reality, and one a licensee shouldn’t begrudge. After all, what quality instructor will take the time to author and deliver a course for free?

The Truth About the Benefit of Reform to Real Estate Educators Perhaps one of the more frequently heard arguments against real estate education reform is that it only benefits real estate educators. However, consider these facts. The average cost per hour of real estate education has barely risen in more than a decade. The cost of real estate education

nationally averages about $12.00 per clock hour of instruction.

Compared to other industries, the price of real estate education for licensees is low. The entire real estate continuing education market in Kentucky today is a $864,000 annual business (12,000 students times 6 hours each at $12.00 per clock hour of instruction). According to the Kentucky Real Estate Commission, there are 44 schools approved to offer continuing education in the state. If every approved provider receives an equal number of students that equals $19,636 gross revenue per approved provider. As you can see, this is the reason there are not many full time real estate instructors in Kentucky. Very few teach exclusively. If CE hours are doubled from 6 to 12, net revenue for a real estate provider would also double to $39,272 before subtracting expenses for doing business. In addition, often each provider has multiple instructors so that number can be decreased further.

In the discussion leading up to the recommendations made by the Kentucky Real Estate Commission, increasing revenue for real estate educators was never cited as an objective. In addition, while real estate educators may benefit in having more courses to teach, the benefits are spread out across a large number of public, private and non-profit entities. Also, it is not as if real estate educators will get paid more. They will only get paid more if they do more quality work. The primary goal of education reform is to protect the public interest by promoting higher standards for those who facilitate transactions that are most often the largest investments people make.

Educational Standards and Jurisdictional Reciprocity An opponent of real estate reform said that it didn’t matter what other states require of real estate licensees and the fact that 48 other states require more is no reason to increase Kentucky’s continuing education hours. In a shrinking global market place, isolation and not considering what other states are doing is not strategically wise. When other jurisdictions consider license reciprocity agreements with Kentucky, continuing education requirements are a consideration. In fact, the lack of uniformity in requirements across jurisdictional boundaries is one of the many reasons why it can be cumbersome to get a real estate license in more than one state. To not consider that Kentucky is ranked last in the nation with Arkansas, to some extent, opponents of education reform are denying the collective wisdom of 48 other states that have independently found that on average 12 hours annually should be the lowest point on the professional bar.

Jess and Carolyn Kinman Award The Kinman award is named in honor of Jess, a former KAR past president and REALTOR® of the Year who passed away in 2007, and his wife Carolyn, who worked for many years at the Legislative

Continuing Education Annual Requirements for Kentucky Professionals Real Estate Agents (active) Certified Public Accountant

Certified Public Accountant

Home Inspector​ Real Estate Appraiser Insurance Agent Mortgage Broker Architect Attorney Landscape Architect Professional Engineer and Land Surveyor Auctioneer Professional Geologist Chiropractor Licensed Practical Nurse Physician Pharmacist Physical Therapist Physical Therapist Assistant Dentist Dental Hygienist Dietician/Nutritionist Occupational Therapist Optometrist (therapeutic) Optometrist (non-therapeutic) Embalmer/Funeral Director Veterinarian Psychologist Occupational Therapist Alcohol and Drug Counselor Professional Counselor

6 Hours 80 Hours (worked over 3,000 hours) or 60 Hours (worked under 3,000 hours) 14 Hours 14 Hours 12 Hours 12 Hours 12 Hours 12 Hours 15 Hours 8 Hours 6 Hours 24 Hours (two yrs.)

12 Hours 14 Hours 60 Hours 15 Hours 30 Hours (two yrs.)

20 Hours (two yrs.)

30 Hours (two yrs.)

30 Hours (two yrs.)

15 Hours 12 Hours 15 Hours 8 Hours 12 Hours (two yrs.)

30 Hours (two yrs.)

39 Hours (three yrs.)

12 Hours 60 Hours (three yrs.)

10 Hours

Top: Senator Katie Stine (second from left) with REALTOR® members at the KAR Board Meeting. Bottom: Senator Bob Leeper (fourth from left) meets with REALTOR® members in his office.

Research Commission and General Assembly. The award is presented to an outstanding Kentuckian whose involvement in the legislative and political arenas have left an indelible mark on all those who have known or worked with him or her. In 2014, the award was given to Senator Katie Stine, Southgate, and Senator Bob Leeper, Paducah.

SPRING 2014 KENTUCKY REALTOR® 17

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W A R R A N T Y

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FA_KARAD_2_14

Education Pre-licensing now available online The entire 96 hour pre-licensing course is now available online. All the materials needed to get started in real estate are provided. The license law portion of the course was written by Virginia Lawson and provides a comprehensive look into the Kentucky statutes and regulations applicable to all licensees. To learn more, visit kreef.org > Pre-licensing.

CORE course online kreef.org > CORE Course Online Licensees need to complete this course, which also provides six (6) hours of law continuing education credit, once every four (4) years. Don’t wait until the last minute and don’t get tied up in the classroom – have the flexibility to fit education into your schedule.

Online NAR designation/certification courses now count for KY CE kreefonline.org is the portal to the online courses under NAR’s official family of designations and certifications including ABR®, AHWD, BPOR, e-PRO®, CIPS, GREEN, RSPS, SFR and SRES®. REALTOR® University offers over 400 hours of online real estate and professional continuing education to help members build skills and earn designations and certifications. These courses not only count toward a designation and certification, but also as a GRI elective. Six of these courses, found under the “Kentucky Continuing Education” tab, also count for CE credit in Kentucky so earn your credits while starting down the path to a certification or designation.

Online CE: easy and convenient kreef.org > Online Education Courses are available to you 24/7 – all you need is a computer and internet access. It’s that simple. These courses can be taken at your pace.

Finish the entire course in one sitting or you can enter and exit as your schedule allows. The two newest courses being offered are: Property Management & Managing Risk

Congratulations to the 2013 GRI designees:

Stephanie Mehler, CVBR Beth Bell Brown, LBAR Tara K Hayes, LBAR Emily Scott, Paducah Joyce Tussey, Ashland Alesia​Gail Parker, Murray Angie Adair, GLAR Barbara L Kennett, GLAR Bruce Smiley, Hopkinsville Jamie Rogers, RASKY Ella Mae Dexter, Central KY Louis Baldwin, LBAR Missy Ormerod, GLAR JR Schloemer, GLAR Amy Jacobs, LBAR Traci Willis, LBAR Charles Hinckley, Heart of KY Linda Dickerson, LBAR Patrice M ​ cGee Combs, GLAR Aja Sherman, GLAR Diana C Brooker, LBAR Don Miles, GLAR Ervena Howard, Ashland Polly Fields, LBAR Douglas Watson, GLAR

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Scholarships available for education KREEF has three types of scholarships available – GRI, college/post-secondary education and REALTOR® University’s Master of Real Estate program. The deadline for submitting applications is Friday, June 13. To learn more about each of the scholarships, eligibility requirements or to download an application, visit kreef.org > Scholarships.

Approved for CRS elective credit, GRI elective credit and submitted for CE credit. Sponsored by KREEF and the KY CRS Chapter

SPRING 2013 KENTUCKY REALTOR® 19

Professional Development

The Time is Now

By Krish Dhanam

“In everyone’s life, at some time, our inner fire goes out. It is then burst into flame by an encounter with another human being. We should all be thankful for those people who rekindle the inner spirit.” –Albert Schweitzer The twentieth century was observed to be the bloodiest century in history and caused more harm to man than the previous nineteen centuries combined. More prosperity came upon humanity in this century and more inventions changed the face of society at the same time. We fought wars that caused a divide in families and we integrated causing brotherhood across people groups. Politics, religion, philosophy, exploration, research and amusement all came together at the click of a button and all of these things were the result of time.

We saw crazy despots with ideology that caused us to cringe and we saw martyrdom in the likes of Mahatma Gandhi that made us believe.

From Hollywood to Bollywood, fantasy and fiction were separated by only a thin line and the veil between illusion and reality became blurred. All this took time. The Beatles sang about time and the poets lamented about it. Business demanded speed, service responded with accuracy, results were measured using decimals and marriage and divorce were sometimes recorded in the same weekend. Time makes a great companion but usually defeats the casual and annihilates the noncommitted. The time to make a difference is now.

One of the greatest motivational geniuses of our time was the late Zig Ziglar. Arguably the most effective with a word that could paint a dream of time, this man once said “You can have everything in life you want if you will just help enough other people get what they want.” As a young immigrant who came to experience opportunity and embrace

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prosperity, those words gave me permission to believe that it was indeed my time. Looking back at that moment over two decades ago, I decided to chronicle the three things I learned from him that should educate, equip, and empower people for all time.

Take time to look up in awe

“I remember the time an older man asked me when I was young, ‘Do you know what you are doing now?’ I thought it was some kind of trick question.

“Tell me,” I said.

“You are building your memories,” he replied, “so make them good ones.”

– Ravi Zacharias When we have an up-look, which is a little more poignant than an outlook, tridimensional beings designed for mental, physical, and spiritual success will begin to understand their true worth. Most people live out capability as nothing more than a cap on their ability.

The wonders of design and the amazement of purpose coalesce in this world in the heart and soul of every human being. Zig Ziglar always encouraged me to remember that I was designed for accomplishment, engineered for success and endowed with the seeds of greatness. It

was that input that allowed me to constantly have an up-look on life.

Your time is now if you believe that you are here to create memories.

Someday someone will ask you about 2014, and unless you decide now that you are going to have a significant answer, this will be just another year. The questions to ask are: a) How will you make this year different? b) What will your actions be to show that you believe in your profession? c) Will you allow your passions to catch up with your productivity so that you move from a wandering generality to a meaningful specific?

Take time to look down in appreciation

“Cultivate the habit of being grateful for every good thing that comes to you, and to give thanks continuously. And because all things have contributed to your advancement, you should include all things in your gratitude.”

–Ralph Waldo Emerson Emerson also said that if you were going to pull someone up, you must first be on higher ground. The foundations of gratitude begin with gratitude for the foundation. If you are a service provider in a specific locale, you must first be grateful for your territory before you can mark it with actions of success and significance. We have arrived at a perilous place in the world where we see people with a culture of entitlement and a lack of appreciation for what was given to them. One preacher said that the end of any nation is when one half of the people choose not to work because someone will take care of them and the other half decide not to work because someone else will receive the spoils of their conquests. The time is indeed now to look at the chaos around and draw that definitive line in the sand and become grateful as a people.

Hans Selye, the stress specialist, said gratitude is the healthiest of all human emotions. We have to take stock of the foundations upon which we will build the monuments of our achievements and become grateful for them. The questions to ask in this phase are those of an investigative journalist writing a story. This is your story and the time to write it is now.

college to make his own footprints in this world, I reiterated the advice of my father to him. The way to look back in acknowledgement is to realize that friends are chosen but families are usually a blessing. One of the most natural things that come to us as a species is the ability to love.

But the human heart that is designed for adoration sometimes does not allow itself to be loved.

If your search this year is for significance and your desire is to radically change your performance, then embrace this principle of looking back at those that are in your inner circle. It is vital to remember that the inner circle is rooting for you. a) Create affirmations with your inner circle b) Take time now to spend with those that matter c) Give praise to the inner circle d) Acknowledge them in public A Chinese proverb said that a journey of a thousand miles begins with a single step. As you look at all the miles you have to cover in the weeks, months and years ahead, just remember that you have to start before you can finish. John Maxwell said you can pay now and play later or play now and pay later—you decide when.

The decision is yours and the time is now!

a) Who are you? b) Where do you come from? c) Whom do you credit for who you are? d) What makes you laugh? e) What makes you grieve? f) What gives you hope?

Take time to look back in acknowledgement When I left for the United States in 1986 with nothing more than $9.00 in my pocket and a bag full of imagination to finance my dreams, I remember the words of my father. He said, “Son, for every step you take forward, I will take one right behind you. God forbid you ever fall, I will be right there to catch you. Don’t be afraid to succeed.” I have often reflected over time the value of those words. When my son left for

As one of only two executive coaches personally trained by Zig Ziglar, Krish Dhanam has successfully delivered his message of hope, humor and balance in over fifty countries and throughout the continental United States. His client list is the who’s who of global enterprise including The United States Army, Christian Dior, Cadbury Schweppes, EDS, Texas Instruments, Pepsico, Enterprise Rent-ACar and Energizer Batteries. Today he is the co-founder of a training company, author of two books and contributing author to the book Top Performance written by Zig Ziglar. Krish Dhanam will be the keynote speaker at the 2014 KAR Convention & Expo in Bowling Green, KY on September 23-25. For more information, visit his website at krishdhanam.com

SPRING 2013 KENTUCKY REALTOR® 21

Local Association News 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.

Hopkinsville REALTORS® showcase homeownership in local community In western Kentucky, the small but resourceful Hopkinsville-Christian and Todd County Association of REALTORS® understands that the American Dream of homeownership may be a win-win for employers and employees, but sometimes dreams need a helping hand. Last year, the 68-member association drew 30 participants from nearby small boards to an Employer Assisted Housing (EAH) class. This year, they used a $5,000 Housing Opportunity Grant to form a team and act on what they learned. Their program, “Hopkinsville HOPE,” short for “Home Ownership for Performing Employees,” now has a web site and they are conducting workshops for local employers. Read more at fb.me/ZYNiU5n3.

Somerset-Lake Cumberland Board At the Annual Christmas Banquet, Joe Holcomb, a REALTOR® with Key Associates Waterfront Realty, won the event’s big door prize - a 42 inch flat screen TV. Because his brokerage for the last several years has generously given to the children at Rockcastle Hospital, Holcomb donated his prize back to the Board. This, in turn, provided over $350 dollars in clothing and toys for the children undergoing treatment at the hospital, many of which are ventilator dependent.

Also at the Banquet, the Board installed its board and officers and handed out its awards – REALTOR® of the Year and Distinguished Service. Linda Skaarup was given ROTY and Danny Ford was given the DS award.

Greater Owensboro REALTOR® Association The Greater Owensboro Realtor® Association (GORA) conducts various community service projects each year including an annual Benefit Gala designed to provide financial support to five local area homeless shelters, and to build community awareness about the unmet need and profound struggles of homeless children, women and men in our community. The “Aid the Homeless” project reaches out to several hundred Owensboro community members to collect money for the financial benefit of these shelters.

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The first two annual Aid the Homeless Benefits raised $80,672 for the homeless. The events are managed and operated with volunteer help, plus donated funds, equipment, and facilities from GORA. Community member businesses, organizations and individuals also donate their services and funds so that (except for the cost of the Gala itself) virtually 100% of the proceeds are donated to the shelters. The third annual Benefit Gala will be held June 6 at the new Convention Center.

Greater Louisville Association The GLAR Community Relations Committee hosted a Charity Bowl-athon on March 4 to raise money for 3 local charities: the Boys and Girls Haven, Americana and No-Kill Louisville. Over 200 REALTORS® and Affiliates participated in the event and $3,700 was raised.

On April 12th, the GLAR Affiliate Council hosted their yearly VIP Thunder Event for over 1,500 REALTOR® members and their families.

The event is supported entirely by Affiliate members who sponsor the event and free tickets are obtained by members contacting a sponsoring affiliate company.

Murray Calloway County Board The Murray Calloway County Board of REALTORS® Community Service Committee was very active in 2013 serving the community and raising money for worthwhile causes. Over $258 was donated to the local Habitat for Humanity from change collected at each General Membership Meeting.

In addition, another $575 was raised from the annual BINGO event that includes both REALTOR® and Affiliate Members.

Not only did Habitat for Humanity benefit, the Board also made donations to the Special Olympics, Need Line, CASA, Kids Against Hunger, American Red Cross and Wounded Warriors. Several volunteers from the Board gave their time to make repairs to the home of an elderly person in our area.

Habitat for Humanity: Pictured are Community Service Co-Chairs Judy Denton (left) and Alesia Parker (right) presenting a check for $258.61 to Habitat for Humanity Treasurer Carolyn Todd.

Kentucky is a low debt state According to data from Experian-Oliver Wyman Market Intelligence Reports and Experian’s IntelliView tool, Kentuckians carry a low average credit card balance per consumer in the U.S. with an average balance of $3,424, as of the second quarter of 2013. This ranking puts Kentucky in the 10th spot overall for the country.

Louisville is the top U.S. travel destination for 2013 Lonely Planet’s Top 10 U.S. Destinations for 2013 features locales with innovative cuisine and drink, hopping art scenes and spectacular nature are available. They include emerging destinations, locations that have something special for 2013 and longtime favorites with something new to offer visitors.

Louisville, Kentucky, was named the top U.S. destination for 2013, following travel publisher Lonely Planet’s discussions among its group of U.S. editors and authors. While they tend to debate entries into each year’s Top 10 list, everyone agreed on Louisville, said Reid.

While many horse lovers descend upon this Southern town the first Saturday in May to witness the Kentucky Derby, also known as the “greatest two minutes in sports,” there’s more to Louisville than one horse race.

to home buying – total homes for sale, days on market, median income, crime rate, school quality and unemployment rate – the Bluegrass capital of the world was the only Kentucky city in the top 50. Here are the details: It may lay claim to being the horse capital of the world, but in our findings Lexington is the house capital of Kentucky. The Bluegrass State’s second-largest city was propelled halfway up our ranking in part by its school quality (it scored a seven out of 10) and number of available homes per person (there’s one for every 132 residents).

However, with an unemployment rate of only 6.6 percent, it’s actually 68th in our findings in that regard, meaning that prospective buyers will see more competition from other employed shoppers. Lexington was also middle-of-the-road for crime, with 49 per year per 1,000 residents.

With its hip bourbon scene (including microdistilleries), fine dining and emerging East Market District, also known as NuLu, Louisville may just be the new Portland, Oregon. Reid said. Consider exploring the city via the Urban Bourbon Trail for a powerful introduction to Kentucky’s famous spirit.

Kentucky cities make “Best Cities” list The 2013 Milken Institute Best-Performing Cities Index ranks U.S. metropolitan areas by how well they are creating and sustaining jobs and economic growth. The components include job, wage and salary, and technology growth. In most years, these give a good indication of the underlying structural performance of regional economics.

In Kentucky, three cities ranked in the top 100 on the small cities list.

They were Owensboro (44th place), Elizabethtown (55th place) and Bowling Green (87th place). On the large cities list, a MSA comprised of KY along with two cities made the top 100. They are Clarksville MSA, which encompasses Hopkinsville (40th place), Lexington (44th place) and Louisville (58th place).

Kentucky is named one of the “10 best states for retirement” According to Bankrate, Kentucky ranks as the fourth best state for retirement. Using a slew of key factors, including access to medical care, cost of living, local crime rates, state and local taxes and climate, here is what was said about Kentucky: One of the strongest benefits that Kentucky offers retirees is an extremely low cost of living. The Council for Community and Economic Research, or CCER, which collects data on the relative costs of groceries, housing, utilities, transportation and health care in communities across the U.S., found that retirees in Kentucky are paying less than many of their counterparts across the country. Bankrate, which analyzed CCER’s data, found that Kentucky boasts the fifth-lowest cost of living in the nation.

Kentucky ranks high for business climate Site Selection magazine has recognized Kentucky’s business climate among the top 10 in the nation in its 2013 Top State Business Climate ranking. Jumping a few spots from last year’s ranking, the Commonwealth is ranked 9th overall in this year’s annual survey, which includes input from corporate site selectors and a mix of other leading indicators.

The ranking is based on criteria for qualified projects so far in 2013 and on a per capita basis; and state tax burdens on new and mature firms as compiled by the Tax Foundation and KPMG Location Matters analysis. Kentucky scored particularly well in project activity categories, including first place for number of qualified projects on a per capita basis in 2012; second place for number of qualified projects on a per capita basis for the first eight months of 2013; and an overall 10th place finish for project activity in 2012, taking population out of consideration.

The Bluegrass State also has warmer-than-average temperatures and a crime rate that’s slightly lower than average.

Lexington named 5th best city for home buyers In a study by brokerage Movoto Real Estate (they have a patented Big Deal List), Lexington was ranked 5th in their rankings of the best cities in the country to buy a house, based on where the optimal home buying climate exists in the market. Considering all the most important factors

Like the New KAR Facebook Page Keep up with all things KAR at the new Facebook page. This page is open to everyone and easy to “like” – it’s the newest social media hub to communicate real estate related topics. facebook.com/kentuckyrealtors

SPRING 2013 KENTUCKY REALTOR® 23

By the Numbers

12 and 10 The typical home buyer searched for 12 weeks and viewed 10 homes, according to NAR’s 2013 Profile of Home Buyers and Sellers.

10–15%

According to PeopleClaim.com, it is estimated this percent of all social media reviews will be fake in 2014.

100 Fifty Percent

84.9

The homeownership rate of real estate agents is 84.9 percent, 14.8 percentage points higher than the average rate for people in all occupations combined, according to Trulia.

The percent of all U.S. renters today who pay more than 30 percent of their incomes on rent. That’s up from 18 percent a decade ago, according to the Harvard center. For those in the lowest income brackets, the jump is even worse.

According to NAR’s 2013 Profile of Home Buyers and Sellers, the percent of buyers who purchased a home through a real estate agent or broker. That’s up from 69% in 2001. Approximately 90% of recent buyers were at least somewhat satisfied with the home buying process and 88% would use their agent again.

88

46

%

A study by the American Journal of Preventive Health finds that children who live in walkable neighborhoods, or “smart growth neighborhoods,” get this percent more moderate or vigorous physical activity than children who live in suburban areas that are designed for driving.

$200,000

The average net worth of a homeowner, compared to only $4,000 for a renter, according to an article in REALTOR® magazine by Lawrence Yun, NAR Chief Economist.

1/5 $27,600 The difference in income for REALTORS® with at least one designation ($61,100) and REALTORS® without a designation ($33,500) according to the 2013 NAR Member Profile.

84 PERCENT

In a 2013 telephone survey of 1,500 consumers, the percent of respondents who said NAR’s advertising makes them feel more positive about home ownership and more confident about buying or selling a home, up from 67 percent in 2010, the last time the question was asked.

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Lawrence Yun, NAR Chief Economist, says home sales can be expected to drop by 350,000 to 450,000 units for each 100 basis-point rise in mortgage rates.

More than one-fifth of adults—or 21 percent—say they’ve had an e-mail or social media account hijacked, according to a new survey by the Pew Research Center. What’s more, 11 percent say they’ve had important information stolen, such as a social security number, bank account number, or credit card.

9%

According to a recent study by the California Association of REALTORS®, only 9 percent of agents met or exceeded buyer response time expectations. An astounding 91 percent of agents only “kind of ” met - or fell way below - meeting response time expectations. Additional findings reported that the top three reasons buyers were unsatisfied with their agents were: slow response time (51 percent), ineffective/inefficient communication (23 percent) and undesirable communication methods (15 percent).

Housing Stats

Kentucky ends the year with a hot real estate market over 15 percent reaching a total of 44,532 compared to 38,666 in 2012.

The Kentucky Association of REALTORS® (KAR) reported in January that for 30 consecutive months, Kentucky has seen total home sales increase each month compared to the same month the previous year, with 21 of those months showing double digit gains.

In 2013, the number of homes sold was up

Home prices in the state remained stable over the past year with only slight fluctuations from month to month. For all of 2013, the median home price in Kentucky was $109,100, which is just under a percent increase from

Year End 2013 vs Year End 2012 Housing Statistics BOARD/ASSOCIATION

# SOLD 2013

# SOLD 2012

SOLD MEDIAN % PRICE 2013

MEDIAN PRICE 2012

MEDIAN PRICE %

96500

8% -10%

REGION ONE Henderson-Audubon Board

362

332

9%

104000

Hopkinsville-Christian Board Kentucky-Barkley Lakes Board

397

321

24%

104675

116250

324

298

9%

98500

101500

-3%

Madisonville-Hopkins Board

395

407

-3%

88975

99850

-11%

Mayfield-Graves Board

330

332

-1%

77475

68750

13%

Murray Calloway County Board

331

277

19%

122850

122575

0%

Greater Owensboro Board

1302

1260

3%

106350

104475

2%

Paducah Board

646

624

4%

128975

126250

2%

Pennyrile Board

254

253

0%

104825

90500

16%

REGION TWO Central Kentucky Association

725

617

18%

94446

90000

5%

Heart of Kentucky Association

1829

1679

9%

125250

125500

-0%

Old Kentucky Home Board

10%

556

501

11%

117250

106325

REALTOR® Assoc. of Southern Ky 1693

1625

4%

134875

130250

4%

Russellville-Logan Board

207

158

31%

79750

86725

-8%

Shelbyville Board

603

513

18%

140500

140125

0%

South Central Kentucky Assoc.

269

293

-8%

100250

89000

13%

139250

2%

140375

1%

125875

5%

REGION THREE Greater Louisville Association

14808

12729

16%

142350

REGION FOUR Lexington Bluegrass Association 9605

8092

19%

142125

REGION FIVE Northern Kentucky Association

5644

4775

18%

132450

REGION SIX Ashland Area Board

752

694

8%

99850

95875

4%

Cave Run Association

186

178

4%

95125

77500

23%

Cumberland Valley Board

564

488

16%

113750

103250

10%

Eastern Kentucky Association

406

368

10%

101553

101875

-0%

Madison County Board

1228

999

23%

124225

130475

-5%

Pioneer Trace Board

218

177

23%

72975

69575

5%

Somerset-Lake Cumberland Board 898

676

33%

85272

90750

-6%

38666

15%

109100

108750

0.32%

Grand Total

44532

2012 when the median was $108,750.

2014 seems to have gotten off to a decent start despite the harsh weather experienced throughout much of the state. Reported figures through February are showing slight increases in homes sold and that homes are selling faster than the same period a year prior.

“Kentucky has posted strong housing numbers for a considerable stretch now,” stated KAR President Ron Hughes. “This follows the national trend where housing has undergone a slow, sustainable recovery for the past two years. Record low mortgage rates, up until recently, served as a catalyst for home sales, giving buyers more house for their money.”

On the national stage, total home sales for 2013 were the highest since 2006 and home prices increased 11.5 percent year over year to $197,100, which was the highest gain tracing back to 2005.

Across the country, several factors play into the current real estate environment – limited inventory is creating a rise in home prices.

This helps lift previously underwater home owners into positive equity, a situation that lends itself to decreased foreclosures and short sales and supports the economy through greater consumer confidence and spending.

On the flip side, with stricter mortgage rules in place, certain qualified buyers may end up hampered from obtaining the necessary credit to move forward with a home purchase. This can, in turn, make it difficult for some home owners to sell their current homes.

“Low mortgage availability for consumers with good, steady jobs and strong credit histories may affect housing in the short term. It’s left to be seen how the regulatory reforms will affect us throughout the state,” said Hughes. “Kentucky has always maintained an affordable housing market compared to the country as a whole as we seem to be isolated from the extreme highs and lows. I remain optimistic that we will continue up the path to a sustained, healthy market inside the Commonwealth for 2014.”

SPRING 2013 KENTUCKY REALTOR® 25

Community Profile

A Spotlight on London and Laurel County, Kentucky Laurel County, situated in southeastern part of the state and surrounded by the Daniel Boone Forest, became the eightieth county to be organized in Kentucky. By an act of the general assembly in December 1825, parts of Rockcastle, Clay Knox and Whitley counties were joined to form the county so named for the dense laurel thickets prevalent in the area.

To help organize the county and commence operations, nine men were appointed as the first justices-of-the-peace. The men first assembled at the home of one of the men appointed, Jarvis Jackson, where a vote was held to provide for the new area’s seat of government. The 25 acres of land, gifted by Mr. Jackson and his brother John, was used to start a town a year later. Because of the land donation, the suggested name of London was chosen in honor of the brothers’ English heritage. Part of the land, as stipulated by Jacksons’, was laid out in a public square and town lots. They also agreed to build at their expense, and deed to the county, a courthouse and a jail, provided the proceeds from the sale of the town lots should revert to them. This proposition of the Jackson brothers was accepted, and plans and specifications for a brick and stone courthouse and a white and red oak jail were drawn up. London’s post office was later established in 1831 and its city rights granted in 1836.

Another big part of the area’s history was the Battle of Wildcat Mountain, one of the early engagements of the American Civil War and considered one of the War’s first Union victories. The battle was a pivotal yet little known battle that kept Confederate armies from advancing on Big Hill, a major stronghold during the war. Brigadier General Felix Zollicoffer’s Confederate soldiers moved in to eastern Kentucky from Tennessee, occupied Cumberland Gap and took position at the Cumberland Ford to counter the Union activity in the area. Alarmed by the Confederate incursion, Union troops secured the ford on the Rockcastle River, established a camp at the heavily forested Wildcat Mountain and obstructed the Wilderness Road passing through the area. The two sides clashed in a brisk battle and the Union forces defended against repeated Confederate attacks. In the end, the Confederates withdrew and continued their retreat back to Cumberland Ford.

Although the battle that influenced the area was low-key, another historical event, one that eventually took the world by storm, occurred much later at a filling station in Laurel County. Harland Sanders, better known as “Colonel,” first served his famous fried chicken to travelers and locals alike.

The recipe “with 11 herbs and spices” eventually took off and turned Colonel Sanders into a prominent figure in American cultural history and one of the most recognized on the globe.

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Kentucky Fried Chicken, now known only as KFC, expanded quickly in its early years making the company the largest fast food operation in the U.S. by 1963 and became one of the first fast food chains to expand internationally. When Sanders sold the company to a group of investors (led by former Governor John Y. Brown, Jr.) in 1964, the price was $2 million. Today, the franchise, as part of Yum! Brands, has annual sales of around $15 billion with more than 8,000 stores in 120 countries around the world.

As a tribute to the heritage of Colonel Sanders and his popular chicken recipe, London plays host to the World Chicken Festival, held annually on the last weekend in September. As one of the largest festivals in the state, it’s only fitting that it is also home to the world’s largest skillet, which measures 10 feet, 6 inches in diameter, 8 inches deep and weighs 700 pounds. The skillet, with its 8 foot handle and 300 gallons of cooking oil, cooks over 7,000 pieces of chicken by the end of the weekend. The Chicken Festival hosts other entertainment options such as the Chick-O-Lympics, hot wing eating competitions, egg drops and belching contests.

The area has also become known as one of the outdoor meccas of Kentucky.

Situated on the eastern boundary of the Daniel Boone National Forest, the only national forest located entirely within Kentucky, London caters to enthusiasts who want to get out and explore nature.

Known as the Cycling Capital of Kentucky, Laurel County offers a tremendous amount of scenic routes including some of the top fall foliage site-seeing routes in the state. In fact, London hosts The Redbud Ride, an annual ride in April that boasts over 1,000 riders from all over the country.

A big draw to the area is a new 1,100 acre off-road park, which caters to a relatively new obsession for many people and has expanded rapidly

photo courtesy HotwireProductions.net

Interesting fact: London, Kentucky, is the secondlargest city named London in the United States and the fourth-largest in the world.

World’s Largest Skillet The skillet is operated by World Chicken Festival volunteers and has served more than 120,000 fried chicken dinners since its inauguration in 1992.

Size: 10 feet, 6 inches in diameter; 8 inches deep; 8 foot handle; and weighs 700 pounds total.

throughout the Appalachian region. There is also a moto-cross park featuring motorcycle, ATV, bicycle and cross country mountain bike racing.

With over 2,100,000 acres, the Daniel Boone Forest allows visitors the opportunity to try a variety of outdoor options. Laurel River Lake and Wood Creek Lake offer great fishing and watersports while Rockcastle River and Cumberland River offer visitors canoeing, kayaking and whitewater rafting. In addition, Cumberland Falls, known as the Niagara of the South, is located just to the south of London in the Cumberland Falls State Resort Park. The 68 foot waterfall features a phenomenon known as a moonbow, a lunar rainbow visible under a full moon on clear nights and one of only a few known to exist in the world.

Construction: 11 gauge, hot rolled stainless steel; divided into four cooking sections; mounted on a steel frame.

Capacity: Can cook 600 quarters of chicken at one time.

Supplies: Cooking 7000 pieces requires about 375 pounds of flour, 75 pounds of salt, 30 pounds of pepper, 30 pounds of paprika, and the World Chicken Festival’s special ingredients.

Fuel: About 60 gallons of Natural gas (more than an average family would use in a year) are required to cook 7000 pieces of chicken at temperatures between 325 and 350 degrees.

Downtown London has also taken steps to revitalize its image. A $500,000 grant was awarded to help develop a streetscape while the city hosts a number of events to encourage residents and visitors to venture into town. Thursday Night Live, held in the summer months on the Courthouse Square, is a concert series that gives listeners a different genre of live music each week. Performed by local and regional artists, music ranges from bluegrass and rock to jazz, gospel and country.

Cruisin’ on Main brings loud motors and polished chrome to the London streets on the third Saturday of every month during warmer weather. This car show features muscle cars, street rods, tractors and motorcycles.

Tucked among gently rolling hills, London is a town where tradition and progress seamlessly blend and remains a place where people invariably wave to one another while driving down country roads. It is at the crossroads to the famed southeastern part of the state and home to about 8,000 people. With Interstate 75 close by, its access allows for easy travel to many metropolitan areas but for the people who live there, London remains a haven within itself.

SPRING 2013 KENTUCKY REALTOR® 27

A Day in the Life of...

A Day in the Life of… a REALTOR® Featured on HGTV’s House Hunters Mike Gandolfo, Principal Broker of RE Solutions, LLC Louisville, KY How many years have you been in real estate?

It will be 8 years on July 1st.

You were recently selected to appear on HGTV’s House Hunters. Why did you apply to be on the show and what was it like to be selected?

I heard that they were looking for people in our area so I nominated 2 of my clients. I thought it would be fun to see how the show worked and it could be a great marketing piece in the future. I work 100% by referral so I thought it would give my clients a little something extra to talk about when they refer me. The clients who were selected had to go through an extensive interview process. With every step, it got more and more likely that we were going to be selected and it got very exciting.

Going “behind the scenes,” how does the show operate and does it paint a true picture of the home buying process?

Obviously we did not just look at 3 homes and then pick one. I actually worked for a couple of months with this specific couple. I think the show does a great job portraying an accurate microcosm of what the home buying process is like. It captured their genuine opinions and struggles with making a decision and the types of homes that we considered. The one thing that was not accurate was they wanted me to lead my clients through the homes when I usually want my clients to naturally flow through a home their own way. None of it was scripted and it is as true of a depiction of the home buying process that you can fit into a 30-minute show.

What are a few secrets of the show that viewers may not realize when they are watching?

It takes an entire day to shoot one of the homes. When we arrived at each location, we had to first cover up all logos and take down all artwork to avoid copyright infringement. Then they film every room 4 times. The first time we go through the home completely and they get the natural shoot of our viewing. Then we go back to each room and shoot it from my perspective and each of my clients’ perspectives.

We have to remember exactly where we stood and what we said in each room.

Would you agree to do it again?

Absolutely! It was great and we met great people. The show’s director was the sister of Danny Bonaduce.

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Prior to real estate, you were surrounded by sports as both an athletic director and coach. Are there any similarities between sports and real estate?

I got in to real estate so that I could have the flexibility to continue to coach basketball. My dad, Joe Gandolfo, was already in real estate. My perception was that the real estate market was slower during basketball season and my dad could cover for me during any conflicts. What I didn’t anticipate was how similar the reward I got from real estate would be to coaching. From the very beginning, I approached my real estate business the same way I approached coaching. You have a group of people, you equip them with the fundamentals, you lead them to apply winning strategies and then you do everything possible to help them achieve their goals. Getting referrals and closing deals is a very similar rush that I got from seeing my team play well. Also, recruiting players to play college basketball really helps with negotiating and lead generation.

You won a national championship as an assistant coach for the women’s basketball team at Spalding University. Which was more exciting – winning that game or selling your first home?

There is a big difference between the two. Winning a national championship is the culmination of years of hard work and many hours.

I was involved in basketball for a long time to have that opportunity.

I would compare selling my first home to winning my first basketball game. It was a good feeling but I need good things to continue in the future.

You are now involved with a major high school basketball all-star game. How do you manage a work-life balance between all your commitments?

I am a full-time father and husband first. Then I am a full-time REALTOR® next. Recruiting for the Kentucky Derby Festival Basketball Classic, which is the oldest and third largest high school

game in the country, takes a lot of time, but not nearly as much as coaching. I am lucky to have a great business partner like my dad to allow me to travel around the country while he covers my business. It is a pretty big deal to run an all-star game that produces NBA caliber talent while attracting over 10,000 attendees. Last year, 8 of the players were selected in the NBA draft.

relaxing day, good cigars and sampling the best Kentucky bourbons!

What is the best advice you have ever received?

From all your extracurricular activities outside of real estate, do you see any indirect benefits to your business?

The biggest benefit is that those other activities recharge me. Also, I am able to include my clients in those activities which makes me more genuine to them and deepens the relationship. For example, I have had a client’s son be the ball-boy for my all-star game and I have had another client join me on my radio show. It makes it fun.

Bob Burg and John David Man in their book “The Go-Giver” talk about the 5 Laws of Stratospheric Success: 1) The Law of Value – Your true worth is determined by how much more you give in value than you take in value. 2) The Law of Compensation – Your income is determined by how many people you serve and how well you serve them. 3) The Law of Influence – Your influence is determined by how abundantly you place other people’s interest first. 4) The Law of Authenticity – The most valuable gift you have to offer is yourself.

5) The Law of Receptivity – The key to effective giving is to stay open to receiving. I love those laws and I constantly try to apply them to my business.

How did you transition from your old career into real estate and what was the most difficult part of that?

Actually, it was pretty easy. I knew that the first year could be a struggle so I saved up 6 months of reserves to live off. Luckily, I was introduced very early in my career to Brian Buffini’s referral systems and that gave me the foundation to everything that I have achieved in real estate.

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Your business is mainly referral based. What are some of the things you do for clients to generate those referrals?

It allowed us to open our own company in 2011 where we have our group of people and whoever they refer us to and we serve all of their real estate needs. The best part is that people I like refer me to people they like, so I work with people who invigorate me instead of drain me.

What is the craziest experience you have encountered while showing a property?

I have shown up for an appointment and the owners either forgot or had the times mixed up. When we showed up, they were enjoying each other’s (uh-hum) company.

Sports is a big part of my life but I also enjoy a

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Outside of your career, what is your favorite pastime?

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Over 200,000 North American Subscribers

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Instead of utilizing my resources (time, energy and money) to do traditional lead generation activities, I pour those resources into deepening my relationships with my clients and serve their needs before, during and after their transactions. I have a set “Win the Day” strategy that I put into place that keeps me in touch with my people. I try to be a “Go-Giver” and a “Goal-Getter.”

Authentisign™

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800-668-8768 • www.InstanetSolutions.com • Email: sales@instanetsolutions.com for more info *Source: 2013 Clareity Consulting Survey of 260 MLS’s representing 825,684 subscribers completing the survey.

SPRING 2013 KENTUCKY REALTOR® 29

CEO Message

KAR is Moving Forward

By Joe McClary, CEO, Kentucky Association of REALTORS®

Spring is coming. The winter has been long and cold, but the warmer weather will bring welcome renewal. Along with nature’s renewal, KAR is renewing its service to members through several initiatives.

New Technology To Serve Members

Addressing Political Challenges Through Action

First, KAR will launch its new website that will provide not only a new look, but secure access to online information that members have never had before. Financial statements, committee agendas, tax returns, board meeting minutes and other “member’s only” information will all be posted to ensure members have confidence in the transparency and modernized approach to your association. Members deserve to know how their money is being spent and posting this information for members will be an important step in the right direction. The website will also feature a cutting edge responsive design that will be user friendly on all your devices including mobile. Implementing a responsive web design is critical for websites in the 21st century due to the growth of mobile device traffic.

Third, it appears as if we have together averted the threat of taxon-services this legislative session. However, those or similar issues threatening housing markets and REALTORS® will not go away anytime soon.

Setting Higher Goals For Statewide Advocacy Second, KAR has the opportunity to improve our state-wide advocacy efforts. In 2013, our response rate on National Call for Action (CFA) initiatives was 16.5% percent, an overall increase of 18% from 2012. While these percentages may seem modest, the average state REALTOR® association only garnered a 12.8% response rate. While Kentucky ranks 15th in the country for CFA responses, states like Vermont and Maryland crossed the 20% participation threshold and so can Kentucky. Don’t forget that you can download the REALTOR® Action Center app (search NAR Action Center in the app store) or visit the REALTORActionCenter.com website to continue tracking Kentucky’s progress.

Another aspect of advocacy involves fully utilizing grants allocated to Kentucky by NAR. In 2013, NAR dispersed more than $41,000 to Kentucky state and local associations which exceeded our budgeted allocation. In 2012, NAR dispersed even more. With 2014 as an election year, the KAR leadership and staff is hard at work to ensure every dollar due to Kentucky returns home.

The need has never been greater for individuals who understand real estate issues to be at the policy making table in Frankfort. After all, if you aren’t at the political “table” you and/or your cause is often on the “menu.” By virtue of the requirements and skills needed to be a real estate professional, REALTOR® political candidates have an excellent background on which to run for political office. REALTORS® are involved in their communities, passionate about homeownership, caring about others and can affect policy that is good for everyone. Are you a REALTOR® considering a run for political office? If so, contact KAR for more information on how we can assist you.

Supporting REALTOR® candidates is only possible through the generous investments made by members like you to the Kentucky REALTOR® Political Action Committee. Last year 37% of Kentucky REALTORS® invested in RPAC. Invest as little as $15 now to do your fair share to protect your profession (NAR’s minimum investment to count toward participation). Also, special thanks to our 32 RPAC Major Investors who stepped up in 2013 to invest $1,000 or more. If you want to give online, KAR has made it easier through the member’s only section of the website.

Higher Education Standards Education reform was one of KAR’s legislative priorities in the 2013 legislative session. KAR’s Board of Directors, along with numerous local boards and associations representing a majority of the REALTORS® in Kentucky, spoke out for higher educational requirements. Together, KAR made progress in 2013 by highlighting the need to raise continuing education requirements for real estate licensees in Kentucky.

As you would expect, more work remains.

Raising continuing education requirements for real estate licensees requires a statute change. For a real estate continuing education bill to pass the House, the Senate and be signed by the Governor, Kentucky REALTORS® will have to speak with one voice. In addition, not only must legislators be convinced requiring more continuing education is important, there must be ample support to overcome almost certain opposition from those who do not believe additional education is necessary. Oftentimes, well intentioned opponents of requiring additional education argue several points in which KAR has provided a response. Please read the article on page 16 for more information on why education reform is important for Kentucky.

Enjoy your springtime, and I’ll look forward to seeing you at a REALTOR® event soon.

30 kar.com

SPRING 2014 KENTUCKY REALTOR速 31