Kyrealtorwinter07 by Kentucky REALTORS

Kentucky

REALTOR 速

WINTER 2007

A publication of the Kentucky Association of REALTORS速

Are You Playing The Game? Step on the political field THE POLITICAL TRIFECTA: National, state and local GREAT TEAMS ACCOMPLISH MORE WHEN THEY PLAY TOGETHER

REO Landmines Antitrust Update Best Place to Live in Rural America

Contents

Volume 1, Number 2, Winter 2007

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

President Carl Tackett, CRS, GRI Lexington-Bluegrass Association of REALTORS®

The Political Trifecta

REO Landmines

Global Village Trip

President-Elect Robert Damron Eastern Kentucky Association of REALTORS® Treasurer Chad McCoy, ABR, GRI REALTOR® Association of Southern Kentucky

REGULAR FEATURES

Treasurer-Elect John Smither, GRI Lexington-Bluegrass Association of REALTORS®

President’s Message

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

Tools You Can Use

Marketing/Communications Director Hunt Cooper hcooper@kar.com

Legal Update

Address letters and inquiries to: Kentucky REALTOR® 161 Prosperous Place Lexington, KY 40509 TF 800.264.2185 T 859.263.7377 F 859.263.7565 www.kar.com email: hcooper@kar.com KAR members should always send address changes to their local board/association first. S u b s cri p ti o n rat e s : $10 per year (included in dues) for members, $25 per year for nonmembers.

Kentucky REALTOR® is published quarterly (Fall, Winter, Spring, Summer) by the Kentucky Association of REALTORS®, 161 Prosperous Place, Lexington, KY 40509. Application to mail at periodicals postage rates is pending at Lexington, Kentucky. P O S TM A S T E R : Send address changes to Kentucky REALTOR®, 161 Prosperous Place, Lexington, KY 40509. All articles represent the opinions of the authors and do not necessarily represent the opinions of Kentucky REALTOR® or KAR and should not be construed as a recommendation for any course of action regarding financial, legal or accounting matters by KAR or Kentucky REALTOR® and its authors.

Legislative Update

KREC Information

Local Association News

Housing Stats

Community Profile

From the Helm

Code of Ethics

A Day in the Life of...

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KAR News

2008 KAR Election Results

Extra, Extra!!!

P r e s i d e nt Robert Damron (Pikeville) P r e s i d e nt - E lec t Jeff Smith (Fort Mitchell) I m m ed i ate Pas t Pr e s i d e nt Carl Tackett (Georgetown) Tr e a s u rer John Smither (Lexington) Tr e a s u re r- E lec t Santosh Bhatt (Louisville) R egion 1 D i rec to r Larry Gillette (Hopkinsville) R egion 2 D i rec to r Linzie Craig (Shelbyville) R egion 3 D i rec to r Patricia Edison (Louisville) R egion 4 D i rec to r Ann McDonald (Lexington) R egion 5 D i rec to r Jennifer Harris (Florence) R egion 6 D i rec to r Norman Jones (Pikeville) At- La rge D i rec t or Charles Ballard (Louisville) At- La rge D i rec t or Ashley Trautner (Frankfort) At- La rge D i rec t or Nelson Weaver (Somerset)

members with an in-depth look at real estate related issues

The Kentucky Association of REALTORS® provides through the Real Estate Report, a monthly e-newsletter, and the new Kentucky REALTOR® magazine, a quarterly publication you are reading now, and the KAR website. The Real Estate Report is sent to all KAR members by email and posted on the web as a pdf. If you are a member of KAR, this information is delivered to the email address on file in the National REALTOR® Database System (NRDS). If you do not receive the newsletter by email, please check your current email address with your local board/association (changes can also be made with your local board/association). You may also need to make sure the "From" email address for the newsletter is not being blocked by your provider.

The six remaining At-Large Directors for the state include Jim Broadwater (Lexington), Paul Fox (Cold Spring), Gale Fulton (Lexington), Ron Hughes (Paducah), Rosemary Nobles (Louisville) and Linda Sparrow (Danville). L.D. Egbert (Lexington), Sandy Newell (Madisonville) and Rebecca Trout (Florence) were elected to serve as At-Large Delegates on the leadership team in 2008. Charlie Murphy (Lexington) was elected to serve as a Director to the National Association of REALTORS®.

Kentucky REALTOR® magazine is the official publication of the Kentucky Association of REALTORS®. If you are a member of KAR, the magazine is automatically delivered to the preferred address on file in the National REALTOR® Database System (NRDS). If you do not receive the magazine, please check your address with your local board/association. If you would like to receive the magazine at a different address than where it is currently received, changes can be made with your local board/association. If you would like to opt-out of receiving the magazine, please send notification to hcooper@kar.com. The KAR website, located at www.kar.com, has recently updated its “News & Research” section to provide easier access to current press releases, real estate news resources, the online photo gallery and KAR communications. Check it

Honors & Recognition

out today!

Get In The Network REALTOR® Magazine's Young Professionals Network (YPN) is a growing group of young, career-minded real estate professionals who are interested in the latest tools, resources, and networking opportunities to enhance career growth. As a member, you'll receive invitations to exclusive events at Robert Damron of Pikeville was named the 2008 President of the Kentucky Association of REALTORS®.

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Carolyn Edwards was named 2007 REALTOR® of the Year.

Joe Guy Hagan was the recipient of the 2007 Distinguished Service Award.

REALTOR® conferences, news on how to get involved in leadership roles at NAR and updates on new tools and resources that will help you grow your career. Membership is free to REALTORS® ages 35 and younger.

R e a d m o r e a t w w w . r e a l t o r . o r g.

President’s Message

Welcome KAR Members

s 2007 nears its close, this would be the time to reflect on happenings over the past year. The market has been tough if not hard to explain. Interest rates have remained historically low yet the market has continued to be soft. Inventory continues to rise creating a prime opportunity to take advantage of both the low rates as well as getting a great deal on real property. The media continues its nonstop grinding at home sales and has gone so far as to say do not buy or sell. This is crazy. As REALTORS®, we are challenged with the task of rebutting the negative media with positive conversation when talking with customers and clients. At times, this is very hard to do when constantly asked why the market is where it is. Remember, all real estate is LOCAL and correct pricing is KEY.

Simply put, remain positive, be creative and use your talent and knowledge to keep your business moving and growing. Our industry has ridden an all time high over the last several years in both sales volume and inventory. Most inventory would have sold even if inflated. Financing availability was incredible and we were able to successfully put many people into homes they normally would not have been able to purchase otherwise.

Carl Tackett, 2007 KAR President

Simply put, remain positive, be creative and use your talent and knowledge to keep your business moving and growing. Research, analyze and take advantage of the market in front of you. It may be the best time in your career to think about becoming an investor. With the year closing fast, I would like to say it has been an honor to have served as your president. I would like to thank all the committee chairs for your hard work in 2007. Being a volunteer is often unrewarding but your willingness to serve only shows your dedication to our industry. Thanks again to all that served this past year and best wishes to each of you.

Carl Tackett, CRS, GRI 2007 KAR President

As the market adjusts, pricing lowers and inflated inventory moves, we must prepare ourselves for a market that will continue to be softer than many of us are accustomed. With a governor’s race behind us and a presidential election coming up quickly in 2008, market conditions most likely will remain soft. The good thing about our industry is that REALTORS® are resilient we adjust to the situation at hand. WINTER 2007 KENTUCKY REALTOR® 5

Tools You Can Use

Marketing Minute

Before you search for real estate information anywhere else, take advantage of the research the National Association of REALTORS® has already done for you. NAR has put together a depository of information you can use in your business – for listing presentations, talking with the media, sales meetings, blog posts or other forms of communications. This information, called Field Guides, serves as a one-stop resource package on dozens of subjects of interest to REALTORS®. On each page, you'll find links to articles, books, websites, statistics and other material on each subject. Subjects range from new REALTOR® tips to opening a real estate brokerage and identity theft to Web 2.0 resources. To access the field guides, go to realtor.org and type “Field Guides” into the search bar or you can visit the page directly at http://www.realtor.org/ vlibrary.nsf/pages/RefShelf (go ahead and bookmark the site). Once you arrive on the Field Guide homepage, you can search in a number of ways: by keyword, by category or scroll down the page to find the one that fits your need. There is even a link to the Top 20 Field Guides - based on the previous month's usage statistics - so you can see what other REALTORS® are reading about. Note: Some of the articles included in the Field Guides are accessible by REALTOR® members only through a password protected area and are indicated as such. To access the password, you will need to click the “Proquest Password” link and log-in. Once you enter the password (entered only once for each session), you will have access to the information.

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Widgets Here, There and Everywhere Remember when a widget use to be a hypothetical product churned out by a hypothetical company in an all-too-real math exam? Now you can download small utilities called widgets to your computer’s desktop to get constant access to the weather, stock quotes, your calendar, newsfeeds (RSS) and hundreds of other useful items. You can customize where and when the widgets appear on your screen. To use widgets, you must install a widget “engine” on your computer. Yahoo offers a widget engine for Windows while Macintosh computers using at least OS 10.4 include a widget engine. Make iGoogle Your Homepage iGoogle is Google's attempt at producing a customizable homepage where you can add widgets (similar to little programs or Web sites) to a page, change the way it looks and make it exactly how you want it to be. Basically, it is a page where you can check on certain content, such as your e-mails, appointments, the latest news and so on. There are a massive number of widgets available for you to add to iGoogle, along with several different page types. For example, you could have a page dedicated to the news and weather, a page just for your e-mails and a page with your calendar on it. iGoogle uses your Google account to deliver your custom pages. So, for example, it can see your calendar, your latest Google documents, your e-mails, etc. to display it all on one page. To start, you will need to go to www.google.com/ig. This will take you to the default iGoogle page. In order to use iGoogle, you will need to have a Google account already set up. Once you have a Google account, click on the Sign In link in the top right hand corner and you’re all set. You can learn to customize your page to always have important information right at your fingertips. Outlook Shortcut Did you know that you can drag and drop an email attachment into any folder on your computer? Simply open the folder to which you would like to save your document, drag the attachment from the Preview pane in Outlook and drop the attachment right into your folder. This is definitely a time-saver! This tip also works for some other email programs. Try it and see.

I’m Sorry, This Line Has Been Disconnected www.youmail.com Make receiving phone calls exciting again with this new web application. Youmail has been described as amazingly useful and incredibly fun. Think of the possibilities you could have with a different voice mail greeting for each different caller to your cell phone. A very professional one for your buyers and sellers. A crazy one for your best friend. How about "I’m sorry, this line has been disconnected" for telemarketers that won’t leave you alone. This interesting service replaces your cellular voice mail with a significantly better voice mail system that includes a set of cool new features like personalized greetings for each caller, online and phone based voicemail access and complete control over who can leave you a voice mail. The service also allows you to keep messages indefinitely and send voicemail directly to your email. Signing up for the service takes only a few minutes and, if nothing else, the site is worth visiting just to listen to a few of the voice mail messages people have created. And guess what – this service doesn’t cost a dime.

Quick Tip by Anetha Dunn Professional Development Director, KAR

I attended a PDA Smartphone course at the 2007 KAR Annual Convention & Expo taught by Dick Betts and he introduced me to a wonderful product called PDA Net which will turn your Treo into a modem. This is how it works… If you have a Treo, either 600, 650, 680, 700 or 755 with unlimited data, a Windows Mobile Smartphone or PocketPC phone, this will work for you. There is a one time fee of $34 to buy PDA Net. Using your hotsync cable, you can turn your Palm into a modem for your laptop or home computer. Download the software and within 2 minutes you will be surfing the web at almost 200 Kbps. It’s free surfing wherever you have cell phone service if you have unlimited data with your carrier. In some cases, it can save you up to $50 a month on internet access. So check it out at www.junefabrics.com. For more Palm tips, visit www.dickbetts.com.

Bits and Bytes Two great mapping tools allow your website visitors to easily view the location of housing in a particular area. Both applications, Google Maps and Microsoft Virtual Earth, are incredibly useful when you personalize the individual features included in the applications. Google Maps One particular feature, called My Maps, allows you to not only post the location of homes but insert property photos and update homes that sell. Simply go to http://maps.google.com/, click on My Maps and create a new map. Title it, describe it and then map out the homes. Add a photo for each home and be as expressive as you want in the description. Save it in ‘Satellite Mode’ to allow your site visitor to view the actual satellite images of potential neighborhoods. When you’re finished, add a link to your website or email for visitors to view. This feature can be used as a marketing tool in listing presentations and when assisting buyers sort through the vast number of homes they are interested in viewing. Microsoft Virtual Earth Although not as feature rich as Google, the imaging and zooming settings with Microsoft are enhanced to a greater level than Google. The bird’s eye view feature can get as close as 15 yards to a property allowing visitors see everything in 3D. Potential buyers can see homes with more detail and view neighborhoods with greater clarity. Check out Microsoft Earth at http://maps.live.com. The scratch pad feature included allows users to save searches and add notes about specific properties, however, the functionality is not as user friendly as Google. As a REALTOR®, give these a try and figure out how to effectively use these tools to stay a step ahead of the game. And, best of all, they come with no cost to you.

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Legal Update

Antitrust Update From NAR Annual Convention This legal update for the Kentucky REALTOR® reviews a number of Federal antitrust cases discussed at the NAR Annual Convention in November, which may be of interest to Kentucky REALTORS®.

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

U.S. v. National Association of REALTORS® The Federal antitrust lawsuit against NAR remains ongoing. In September 2005, the U.S. Department of Justice (DOJ) filed a civil antitrust lawsuit over NAR’s ‘opt out’ policies for virtual office websites (VOWs) and internet listing displays (ILDs). According to the DOJ, these are password-protected websites using Internet intensive business models to allow brokers to reduce overhead, transfer search functions to clients, and reduce time spent showing homes. Under the NAR ‘opt out’ policies, brokers could keep their clients’ listings off of VOWs generally, or off of a targeted competing broker’s VOW, and VOW operators were prohibited from referring their customers to others for a fee. As a result, the DOJ lawsuit alleged that the VOW and ILD ‘opt out’ policies are fundamentally anti-competitive and harmful to consumers, because they are designed to impede the competitive advantage of brokers who conduct their business through VOWs. The DOJ lawsuit further alleged that the NAR ‘opt out’ policies have an anticompetitive effect in the market for residential real estate services, by suppressing technological innovation, reducing competition on price and quality, raising barriers to entry, and restricting efficient cooperation among brokers. In late 2005, NAR filed a motion to dismiss the DOJ’s lawsuit. In addition to arguments that the Federal court lacked jurisdiction to hear the DOJ’s lawsuit and that the DOJ failed to properly allege damages, NAR argued that its VOW and ILD policies do not constitute illegal restraint of trade. According to NAR, opting in or opting out of the policies are by definition “optional,” and only allow members to exercise their own independent judgment whether or not to allow their listings to be displayed on the

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websites of other MLS participants. In short, NAR argued that ‘there can be no restraint of trade without restraint.’ In November 2006, the U.S. District Court, Northern District of Illinois, denied NAR’s motion to dismiss the DOJ’s lawsuit, finding that (i) the DOJ’s complaint contained sufficient allegations that NAR has violated the Sherman Antitrust Act, and (ii) the Court has sufficient jurisdiction to hear the DOJ’s antitrust claims against NAR. As the case presently stands, both the U.S. and NAR have exchanged reports of experts analyzing the VOW and ILD policies, and the DOJ has served approximately 150 subpoenas and taken approximately 100 depositions. Trial is expected in June 2008. Buyer’s Corner Realty v. Northern Kentucky Association of REALTORS® In late 2006, in a win for the Northern Kentucky Association of REALTORS® (NKAR), the U.S. Supreme Court declined to hear the Sixth Circuit's dismissal of a lawsuit alleging that NKAR and its MLS had violated the Sherman Antitrust Act. The original lawsuit had alleged that NKAR engaged in illegal tying and ‘group boycott’ in violation of Federal antitrust laws by only permitting NAR-affiliated brokers to have access to NKAR’s MLS. The U.S. Supreme Court’s refusal to review Buyer’s Corner Realty leaves intact the December 2005 decision of the U.S. District Court in Covington dismissing the lawsuit. In the 2005 lower Court decision, the U.S. District Court had ruled that the plaintiff failed to show injury caused by some anticompetitive harm or effect flowing from NKAR’s membership rule. In essence, because the NKAR membership rule did not prevent the plaintiff from

Enforced by the U.S. Department of Justice, Federal antitrust laws are designed to maintain free and open competition among businesses. Competition benefits consumers by lowering prices, and promoting new and better products and services. The three main Federal antitrust laws are the Sherman Antitrust Act, The Clayton Act, and the Federal Trade Commission Act. Through these laws, the U.S. Department of Justice may pursue a wide range of civil and criminal penalties for behavior that improperly restrains competition among businesses: - Cartel violations, such as price fixing, bid rigging and allocation (dividing up) of customers. - Anti-competitive practices by businesses that dominate a market, or abusive practices designed to lead to market domination. - Mergers and combinations that threaten competition and lead to higher prices.

joining other non-NAR affiliated associations, competition was not harmed and the plaintiff was not injured. With regard to the group boycott claims, the Court found that the plaintiff failed to establish that NKAR’s membership rule had any anticompetitive effect in the ‘market’ for real estate association services, and thus did not violate the Sherman Antitrust Act. Reifert v. REALTORS® Association of South Central Wisconsin The U.S. Supreme court also declined to hear a case from Wisconsin nearly identical to the Buyer’s Corner Realty decision – Reifert v. REALTORS® Association of South Central Wisconsin. In that decision, the lower Court had found that forcing a broker to purchase a product he or she otherwise would not have purchased – association membership – is not enough to establish ‘foreclosure of competition’ that violates the Sherman Antitrust Act. Thus, the plaintiff, a licensed real estate agent, failed to show any anticompetitive effect from the ‘unlawful tying’ of access to the MLS serving South Central Wisconsin to membership in local REALTOR® associations, for which the Court found no competitors. The lower Court also reviewed various niche associations cited by the agent as competitors, including those serving distinct ethnic communities, and found they lacked ‘cross-price elasticity’ with national and local REALTOR® associations, had dissimilar purposes, and thus did not compete with local REALTOR® groups or other REALTOR® associations.

Hyland v. Homeservices of America, Inc. In June 2007, a Federal court in Louisville refused to dismiss a class action antitrust lawsuit brought against a number of brokerage firms with ties to Kentucky. Hyland v. Homeservices of America, Inc. was filed as a class action lawsuit alleging violations of the Sherman Antitrust Act for illegal price fixing of real estate brokerage commissions and associated fees. In their lawsuit, the plaintiffs allege that the defendants engaged in illegal price fixing by conspiring to charge a 6% commission across the board, without any willingness to negotiate with customers, alleging that the costs of providing services had decreased while prices of real property in Kentucky had increased. In its decision, while dismissing several defendants and claims on technical grounds, the Court denied the defendants’ primary motion to dismiss the lawsuit. The court ruled the plaintiffs should be permitted to pursue their allegations under the Sherman Antitrust Act that the defendants had conspired to illegally fix prices within the Louisville real estate market. While the case remains in its early stages, Hyland v. Homeservices of America, Inc. is already significant due to the U.S. District Court’s finding that the plaintiffs’ complaint contained sufficient allegations to allow the class action antitrust lawsuit to proceed. Hyland will be an important case to watch as the plaintiffs attempt to prove their allegations of illegal price fixing in real estate brokerage commissions in the Louisville market.

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Feature Story

The Political Trifecta: National, State and Local Great teams accomplish more when they play together

ports teams are ubiquitous in America; from little league, to collegiate, and professional level, being a part of a team is a fun and rewarding experience. The reasons for joining a team are as varied as the individuals who form them, but perhaps it is human nature to come together and pool resources to achieve a common goal as part of a team. Throughout the history of sports in America, a few great teams have achieved such success that they are now part of the rich tapestry of our collective culture. The Chicago Bears of 1985; the Green Bay Packers in ’62; the Big Red Machine of ’75; the’61 Yankees; the Celtics, Lakers, and Bulls throughout the 80’s and 90’s…and the list could go on. While these teams had their share of superstars, they still reached the pinnacle of success in their fields through a dedicated team effort. And when it comes to legislative and political initiatives, over the years the National Association of REALTORS® has established a winning track record of success for members at all levels of government – local, state and federal. And just like the great sports teams in American history, NAR’s success is dependant on active and engaged members who are eager and willing to put in the hard work and extra effort for the cause. As a REALTOR®, you are part of a team that is organized to help real estate professionals and the communities in which they work and live. NAR works on the national level to affect positive policy changes for REALTORS® just as the Kentucky Association of REALTORS® and your local association work on the state and local levels to promote and protect the interests of REALTORS® and their communities throughout Kentucky. Regardless of the level of political involvement, REALTORS® benefit when we work together as a team. On the national front, NAR has worked with

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issues of critical importance and has scored several victories for all REALTORS® to ensure your business is protected. Banks in Real Estate: Maintaining the separation of banking and commerce has long been a top priority for NAR. Working with members in all fifty states, NAR has been successful in securing one year prohibitions on banks in real estate. However, in light of the subprime “meltdown,” the argument for enacting legislation permanently separating banking and commerce is even more pronounced and critical. The lending industry, and by extension the financial services sector, clearly misgauged the default risk of some mortgages while trying to cash in on the housing boom of the first half of this decade. Do Not Fax Rules: In 2005, Congress and regulators fired back and forth trying to decide on the scope of the Do-NotFax rules. NAR sought to protect members from unfair and costly changes to their marketing practices. NAR-backed legislation, now officially law, clarifies that REALTORS® without written agreements will not incur fines if they send faxes to clients with whom they’ve had longstanding “established business relationships.” Bankruptcy Protections: NAR successfully championed four real estate provisions in bankruptcy reform legislation enacted by Congress. These provisions protect property owners and valuable real estate assets when owners or tenants file for bankruptcy. The NAR-supported provisions will 1) provide new protections for shopping center owners; 2) close the loophole which allows rental tenants to abuse the Code to avoid eviction; 3) require homeowner and condo

association fees to be repaid; and 4) provide protection for certain property owners, regardless of the market value of their properties. Health Insurance: NAR was instrumental in the drafting of a U.S. Senate bill, S. 1955, to establish small business health plans. Although S. 1955 was not enacted into law, it is a significant advance on the issue because it was the first small business health plan bill ever to be debated by the United States Senate. NAR is still working for legislation that would make affordable health insurance available to self employed REALTORS® and their employees. Forgiveness of Mortgage Debt: Currently, NAR is working on eliminating the tax penalty on short sales. The law right now requires property owners to pay tax on the portion of their mortgage debt forgiven through foreclosure, short sale of the home or restructured loans at the same rate as income. Additionally, NAR is working on other important issues such as ensuring more low income families have access to affordable housing and supporting the permanent availability of terrorism insurance coverage for commercial and multifamily properties. As an active REALTOR®, you should stay in touch and connected with these and many other important NAR initiatives. In Kentucky, KAR has pursued various legislative initiatives designed to improve business for our membership as well as support the communities in which we work and live. Methamphetamine Laboratories: KAR supported HB 94 during the 2006 & 2007 legislative sessions and saw its passage and signature by the Governor this year. This bill provides protections for REALTORS® and their clients by requiring written notification from public safety officials to the local health department when they

encounter properties contaminated by meth. A REALTOR® in Kentucky was hospitalized for a several week period and was ill for several months because she entered a meth property unknowingly. KREC Legislation: KAR staff monitored two bills; one was more administrative and imposed fees and fine and tightened up some escrow language and the other bill created a post-licensing education requirement, requiring newly licensed agents to obtain 15 hours of education in 24 months. These bills did not pass, but KAR continues to monitor this issue. Airport Noise Sensitive Areas: KAR has worked with many other real estate and business related groups to stop a particular version of airport noise legislation from passing. Specifically this legislation required a potential seller who had a noise compatibility permit issued to disclose that prior to entering a contract. Although no legislation was enacted, KAR wants to continue working with all parties to ensure an effective commonsense solution is reached. Private Property Rights: Kentucky REALTORS® have supported legislation at the state level, particularly related to eminent domain that would preserve and protect the rights of property owners. KAR successfully lobbied for HB 508 during the 2006 session, which limited the use of eminent domain in Kentucky. Your association is working for you at the local level as well. Several local associations have successfully defended themselves against policies, rules and restrictions that would have negatively affected the way their members could conduct business. Some have issues still in progress while others fought hard and lost. As a group, however, REALTORS® have demonstrated a unified voice to have their issues heard. – continued next page – WINTER 2007 KENTUCKY REALTOR® 11

Feature Story Greater Louisville Association REALTORS®: Louisville has a network of REALTORS® individually connected with local policymakers from the Metro Council level on up to state legislators. Two of the local successes GLAR highlights pertain to stopping building moratoriums and fighting cumbersome sign ordinances. Specifically, GLAR mobilized their REALTORS® to stop an ordinance that would have enacted a county-wide new building moratorium. Also, REALTORS® voiced their opposition to a proposed new sign ordinance which would have greatly restricted where real estate signs could be placed. This ordinance would have also placed any fines for violations completely on the Broker per instance. REALTORS® were able to have this ordinance placed on hold pending additional review. Owensboro Board of REALTORS®: This past year, the Owensboro board tried unsuccessfully to fight against a recalculation of the occupational tax within the city and an increase of the county occupational tax. The Board did not have a concerted lobbying effort, but did attend a few council meetings where REALTORS® voiced their concerns and opposition to the ordinances. REALTOR® Association of Southern Kentucky: For several years now, the Bowling Green area has had a sign ordinance in effect but little or no enforcement of the ordinance occurred. Recently, the planning and zoning commission began an aggressive enforcement of the ordinance with negative effects on REALTOR® signs within rightof-ways in yards. The Southern Kentucky association organized a task force of members to address the issue and invited officials from the planning and zoning commission to meet with REALTORS®. Thus far, several meetings have occurred and REALTORS® made their opinions on the sign ordinance enforcement clearly known to the planning commission. Currently, this issue is still active with the REALTOR® Association of Southern Kentucky exploring ways to best resolve this important local issue. Northern Kentucky Association of REALTORS®: Just before construction was to start on Northern

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Kentucky’s new headquarters building, an issue arose that jeopardized the entire project. According to the Federal Aviation Administration, the height of the new building fell into the FAA’s “presumed hazard” category, and thus the Kentucky Airport Zoning Commission issued a ruling halting all construction and any associated pre-site work. Within 48 hours of the ruling, REALTORS® and staff from Northern Kentucky had organized meetings with officials from U.S. Senators and Representatives offices as well as state, county and local legislators. Working closely with the Kentucky Airport Zoning Commission and the Kent County Airport Board, Northern Kentucky resolved the issue by having the Airport Board agree to raise the height of their runway. This slight change in elevation meant that the new Northern Kentucky Association of REALTORS® building would not fall into the presumed hazard category. Working together at the local, state and federal level, REALTORS® from Northern Kentucky were a force for positive change. In team sports, overall success is often measured by total wins and loses. Most athletes know how to be good sports and graciously accept a loss with honor and dignity. Perhaps they know there will be another game to play, another chance to prevail and that they should redouble their efforts in anticipation of another contest in the future. Political involvement is slightly different; obviously winning an important legislative issue is a considered a victory. But in politics, demonstrating a strong, grassroots interest and support on an issue can have long-lasting and significant effects that are just as valuable as scoring a legislative victory. Moreover, on the state level, KAR has cultivated a reputation of being an honest, straight-shooting, easy-to-work-with organization that seeks reasonable solutions to problems. Thus, keep in mind a famous quote from one of the greatest baseball players in history, Babe Ruth, who wrote: “The way a team plays as a whole determines its success. You may have the greatest bunch of individual stars in the world, but if they don't play together, the club won’t be worth a dime.” Your REALTOR® team – NAR, KAR and your local association – knows how to effectively play the game to your advantage. All we need is your interest and participation to cheer us along.

Business Development

REO Landmines Don’t let one blow up your future

et’s start with the basics: REO (real estate owned) refers to real estate which is owned by entities such as lenders, servicers or corporations. There are several ways property becomes REO but most often it is through default of the borrower who is either foreclosed upon or voluntarily relinquishes the property through deed-in-lieu. Corporations also become entitled if they acquired the home as part of an employee relocation package buyout. Whatever mechanism resulted in the acquisition, a piece of real estate is now owned by an entity that needs to sell it. A special division, called the REO or disposition division, is usually charged with the task of turning REO properties into liquid assets. As the foreclosure problem worsens, the percentage of homes on the local market for sale which are, in fact, REO’s has increased. Strategies for dealing with the holders of these properties are somewhat different than purchasing from a private citizen. Those differences can be looked as potential landmines if you are not familiar with the process.

Landmine # 1: Most REO properties are sold using a standardized contract which will be used throughout the nation (for instance, HUD, Fannie Mae, VA). The language and terms in these contracts will supersede anything you write in your local purchase agreement; therefore, it is critical that you understand all the language in their standard contract. Landmine # 2: Most REO properties are sold “as is.” While entities must allow for an independent inspection if one is allowed by state law, there is no requirement that any repairs be made as a result of the inspection. Landmine # 3: Buyers are frequently charged a per day fee for delays in closing caused by their side of the transaction. Whether caused by the borrower, their lender or the REALTOR® does not matter. It is not uncommon for the delay fee to be $100.00 per day. Landmine # 4: Transfer of title will usually be granted with a special warranty deed or a Sheriff’s deed. Both provide a marketable title; not a clear title. It is common for liens to remain attached.

Strategies for dealing with the holders of these properties are somewhat different than purchasing from a private citizen. Landmine # 5: When submitting an offer on an REO property, you buy the whole “kit and caboodle.” What’s in the “caboodle?” Mildred Wilkins is the founder and president of Home Ownership Matters, LLC. She is the Trainer for FIS the (Foreclosure Intervention Specialist) certification program. Visit her website at www.HomeOwnershipMatters.com or call toll-free 866.507.5105.

WINTER 2007 KENTUCKY REALTOR® 13

Legislative Update

Are You Playing The Game? Step on the political field and make a difference in your business

James Sharp Governmental Affairs Director Kentucky Association of REALTORS®

friend of mine is fond of saying “Politics is a contact sport; if you aren’t contacting your elected officials, then you aren’t playing the game.”

So, are you in the game? Or are you on the sidelines, watching others make key plays and get the glory? Well, this is your chance to get in the game – consider this your official call-up from the minors; you’ve just been selected #1 in the draft; you are the clutch, go-to superstar set to take the field and make the plays to win big over your opponents. Your team needs you, the fans want you and the coaches are confident you’ll be an instant impact player. You are the franchise player around which a new dynasty will be built. What will you do? Will you rise up to the challenge and shine, or will you choke and fade into obscurity? For the Kentucky REALTORS® Team, kickoff for the Big Game is on January 8, 2008 when the Kentucky General Assembly convenes for a sixty day legislative session. And although the dream (and salary) of being a professional athlete in the NFL or going on tour with the PGA eludes most of us, the coaching staff at the Kentucky Association of REALTORS® (KAR) is offering you a first-string, starting position on Team KAR. But no competitive, finely-honed athlete would simply start playing an important game without solid preparation and warm up. In today’s competitive world, the difference between winning and losing is often decided before athletes take the field. Without the proper mental attitude, necessary equipment, dedicated

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practice time and most importantly, knowledge of rules and regulations, you could be in for a rough time out there. Star athletes and coaches know that proper mental and physical preparation begins during the offseason and continues year round. Put me in Coach, I’m ready to play… Fortunately for you, the coaching staff at KAR has already begun preparations for the Big Game. And no, we aren’t going to make you drop and give us twenty or make you run wind sprints. Like all good coaches, we are dedicated to cultivating the innate talents of our team and are committed to doing what it takes to make our players the best possible. Team KAR has developed a strong and varied playbook of knowledge and is eager to take the field. Our game plan is to go on offense early and increase REALTOR® visibility to politicians by quickly responding to state Calls for Action, writing and calling legislators to express our views and exercising our right to vote. Our stalwart defense is ready for any trick plays or surprises with our robust network of committed REALTORS® informed on the issues and ready to respond. Training camp… In Kentucky, we have a citizen legislature which meets for sixty days in even years (like in 2008) and for thirty days in the odd numbered years. The rest of the time, legislators have jobs in their respective communities. A typical sixty-day session of the Kentucky General Assembly will yield anywhere from 1,500 to 2,000 new bill introductions. That equals 25 to 33 new bills each day that every Representative and Senator must to read, comprehend and decide to support or oppose. In addition to this onslaught of bills, 2008 is a Kentucky State Budget Year and legislators will consider funding issues and priorities for the entire Commonwealth. With 2,000 or more bills introduced, there’s a good chance that at least a handful of them will directly affect the way you, as a Kentucky REALTOR®, do business. Keep in mind that nearly every one of those bills will have an interest group, trade association or

Legislative Update

lobbyist working hard to have it passed or voted down and thus, time and information are extremely valuable to legislators. As a player for Team KAR, it is critical that you understand how to use both time and information to your advantage, much the same way a coach would call an offense play to capitalize on the weakness of an opposing teams’ defense. In football, coaches review hours and hours of taped history of opposing teams looking for trends and tendencies. Thankfully, your coaching staff at Team KAR has been keeping up with the pre-filed bills and likely legislative issues, and is confident that we can call the plays to make the most impact and let you be a star on the team. Stay focused and be on the lookout for Calls for Action. Check our website often and contact our Government Affairs staff for the latest information and updates. When it is your moment for glory, you’ll be ready. Pre-game warm ups… Now that you’ve decided to get in the game, it’s time to put your talents, skills and abilities to use for your team. REALTORS® are natural lobbyists – outgoing, engaging personalities, eager to educate and accommodate clients, armed with statistics and tools and a strong ethical responsibility. Moreover, you have an audience of Kentucky Senators and Representatives who really want to hear what you as constituents have to say…and you vote. From a state legislative perspective, the overall goal of KAR is to ensure that legislation does not create difficulties, burdens or impediments for you and your real estate business. And since the Kentucky legislators are the ones that propose, vote and repeal laws in our state, we need to go straight to the source – the legislators themselves – to effectively achieve this goal. The process by which the KAR’s Government Affairs works is straightforward and open. Both the KAR lobbyist and the Government Affairs Director work together in Frankfort, networking with fellow lobbyists, monitoring pre-filed bills and researching potential legislative issues. This information is compiled and then carefully reviewed by a group of your fellow REALTORS® from across Kentucky, called the Legislative Leadership Team. It is the Legislative Team committee who reviews proposed bills and recommends official KAR positions on state issues.

NEW FOR 2008: ONLINE LEGISLATIVE RESOURCE TOOLKIT Want to take your political game to the next level? Visit the KAR website for all the click and print resource materials you need to help you get involved, take action to make a positive difference in your business and stay up to date with Kentucky real estate legislation: • Detailed contact information for KY Senators and Representatives • A step-by-step guide on how to schedule visits with legislators • Customizable sample letters, emails and phone scripts • The “Top 10” best ways to get your point across • A detailed 2008 General Assembly schedule • And many more great materials! Be sure to visit www.kar.com today and get in the game!!!

Once the KAR Legislative Team identifies the issues and agrees on legislation, our lobbyist and Government Affairs Director work with key Representatives and Senators in Frankfort to articulate the position of KAR. The Legislative Team stands ready during the session to consider late-breaking proposals and amendments. Obviously, the REALTORS® will not be the only group in Frankfort looking to get their point across to policymakers. And with the frenetic pace of a typical session, coupled with the sheer volume of bills and interested groups, it becomes quite a challenge to ensure the Kentucky REALTOR® voice is not lost in the din of a typical session. When it comes to ensuring that REALTOR® voices are heard above all, it is absolutely critical that members like you work with us to raise our visibility and clout to the policymakers in Frankfort. Game time… As a former staff person for an elected official, I can attest that the people and issues that had the ear and attention of the legislator were the citizen lobbyists who took time to explain the effects of potential – continued next page –

WINTER 2007 KENTUCKY REALTOR® 15

Legislative Update

legislation on their daily lives. It’s not too difficult to ignore people who are not constituents and therefore cannot vote for or against you, but it is impossible to ignore your voting constituents. As your lobbyist in Frankfort, I can explain the issue to a Senator or Representative until I’m blue in the face, but in order to effectively drive the issue home, we need you to make contact with legislators and explain why the bill is important to REALTORS®. Call, write, email and/or meet with your state Senator and Representative. The Government Affairs Staff at KAR will gladly help you, and the legislators will love to hear from you even if you are calling in opposition to something. Most legislators have email access, and all have mailboxes. Additionally, there is a convenient toll-free number to call and leave a message for the elected official who represents you. And, during the session, KAR will issue Calls for Action on important state topics. These Calls for Action will have detailed instructions urging you to contact a specific legislator and voice your opinion. Keep an eye out for these Calls and participate in them; they are designed to maximize the Kentucky REALTOR® political presence and help connect legislators with their voting constituents. Personal contact between individual REALTORS® and legislators will build lasting relationships that will increase the overall effectiveness of your local and state Association, making us better suited to influence legislation in Kentucky. Home field advantage… Another way we help call attention to REALTOR® issues in Frankfort is through use of the REALTOR® Political Action Committee (RPAC) funds. As you know, running a successful campaign takes money, and politicians are grateful for the voluntary donations they receive. RPAC is the financial underscore to the point that KAR Government Affairs staff will make on your behalf with Kentucky legislators. It is extremely important for you to understand that RPAC is truly a non-partisan entity. When taking any potential contribution to a state candidate into consideration, RPAC closely examines the voting

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record in terms of pro or anti Kentucky REALTOR® votes and pro or anti REALTOR® legislation sponsored. The consideration of political party affiliation has little to do with contributions, other than the fact that sometimes a legislator in the majority might be better suited to move a REALTOR® issue than someone in the minority. But, even that particular dynamic has more to do with General Assembly legislative procedures and protocols than political party. In 2006, of the total RPAC contributions to candidates in Kentucky, 53% went to Democrats and 47% went to Republicans. For comparison purposes, the percentage of Democrat versus Republican legislators in the General Assembly is 61% to 39% respectively. Time, Talents and Treasure Imagine getting a new job that you’ve always wanted, but your performance and continued employment with the company will be tied to an evaluation every two years. Suppose that during this two year period, no one gave you specific instructions or clarified your role with the company, but yet you were held accountable for job performance expectations that you didn’t know existed. Effectively, you had to do your job without every really knowing how to do it. Your Senators and Representatives have a similar situation regarding your input. You vote on them, they work for you, so why not maintain contact and let them know what you think of their performance. Your legislators and the real estate business in Kentucky need your Time, Talents and Treasure. If you have the Time, contact the state Representative and Senator who directly represents you, your family and your business in the General Assembly. You do not need a specific bill to call about; just contact your legislator and let them know that you are a Kentucky REALTOR® who is active, engaged and ready to support elected officials who support REALTORS®. If you have the Talents, volunteer for a campaign or other fundraising event at your local association. 2008 is an election year for every one of the 100

RPAC

With 2,000 or more bills introduced, there’s a good chance that at least a handful of them will directly affect the way you as a Kentucky REALTOR® do business. Representatives. Many will have contested races. Call their campaign headquarters and volunteer to answer phones, put up signs or distribute literature on their behalf. Be sure to let the legislator know you are a REALTOR® active in politics. Lastly, if you have the Treasure, you can contribute to RPAC. When you make a voluntary contribution, you are helping send a powerful message that you are serious enough about politics to put your money where your mouth is and are committed to advancing REALTOR® efforts. The legendary football coach, Vince Lombardi, once said, “The achievements of an organization are the results of the combined effort of each individual.” The good news is: the Kentucky Association of REALTORS® has well over 11,000 individual members, which translates to about 85 REALTORS® for every Senator and Representative in the KY General Assembly. That 85:1 ratio would certainly give KAR tremendous clout in Frankfort, but realistically, we don’t have anywhere near that level of participation…yet. If we all worked together, donated our Time, Talents and Treasure, we would simply dominate the Game. So, are you in the Game?

s of October 31, the following REALTORS® have contributed to the REALTOR® Political Action Committee (RPAC) at the major designated levels. By contributing to RPAC, you are able to support REALTOR®friendly legislators who believe in our industry and protecting private property rights, preserving the American dream of home ownership, fighting for tax reforms and reducing burdensome regulations on our business. For more information on the value of RPAC and how it works for you, contact James Sharp at jsharp@kar.com or 800.264.2185.

Big Blue R ($1,500 and up) Tony Clark Donna M. Gordon-Willoughby Ann D. McDonald Jerry McMahan Mary Anne A. Simmons John W. Smither William P. Snyder Gwynn Stewart Harrell N. Tague Jr.

Gerri Jones Jacqueline W. Klein Jonah Mitchell Karen S. Mundy Charles Nichols Janet L. Perkins Russell V. Quick Don Sebastian Joseph E. Simms Linda J. Wiley

Sterling R ($1,000 - $1,499) Dennis R. Anderson Nelson Collins John S. Davis Carolyn S. Edwards Leslie D. Heath Susan Helm James H. Huff Todd Hyatt Donald M. Kepple Rue O. McFarland John Miranda Guy Montgomery Charlie L. Murphy Delbert K. Perry Betty A. Schutte* Carl M. Tackett Kenneth W. Warden John J. Weikel II* Danny R. Willis

Pearl R ($250 - $499) C. Gary Adkinson Matthew B. Ballard J. Charles Ballard Michael H. Becker Alfred R. Blevins Jenny Bradley Cindy Brouillette Jason Brunstetter Pam Catlett Linda Gibson B. Cecil Steve K. Cline Bridgett Collier Harriet A. Conely Coba C. Craig Linzie T. Craig Barbara A. Curtis Joe Cusick Kent Dailey II Diana Davis Stephen R. Early Donna Ensminger Marcie W. Estepp Kevin R. Farris Debra L. Fitzgerald Debra M. Fox Larry A. Freels C. Gale Fulton Rodney P. Fussinger Mary Ann Garback Sue Gill Larry R. Gillette

*sustaining Golden R Thoroughbred R ($500 - $999) John E. Aubrey Santosh Bhatt Jayne Cox Judy A. Craft Robert A. Damron Ray DeSloover Brad DeVries Michael Farrar Daniel R. Harpe Jane Hayes Kim Hayes-Ricca Bobbie Johnson

Brenda G. Gooslin John A. Groft Jr. Bob F. Hahn John A. Hodge Jack Hoffman Ronald E. Hughes W. Wade Hurt William Leslie Mark E. Lewis Elias Mashni Dot M. Miller Mark E. Mitchell Christine L. Morgan Janice C. Mueller Rosemary L. Nobles Jane Allen A. Offutt Paul J. Ogden Jr. Lisa L. Presley-McGrew Danielle Prost Andrew Pruitt Becky Reinhold Donnie Roberts Janet S. Robinson Jim J. Schack James Sharp Jeff Sherry Linda C. Sparrow Stephanie Steffen Lisa Stephenson Karen K. Stevenson Diana Stubblefield Don C. Sullivan II Tom Thieneman Jr. Dan Thompson Ashley M. Trautner Colleen E. Walker Obey T. Wallen Nelson B. Weaver Mike M. Wheatley Joan Z. Whitman Janie Wilson

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

WINTER 2007 KENTUCKY REALTOR® 17

KREC Information

Time is of the Essence Dealing with contract delays

Lee Harris is General Counsel for the Kentucky Real Estate Commission

he phrase “time is of the essence” holds very significant legal consequences for real estate purchase contracts. Essentially, if “time is of the essence” as to a particular paragraph or an entire contract, then the dates set out in that contract are set in stone. If the closing is to occur by December 31, 2007, for example, and “time is of the essence” for that closing date, then the closing must occur by that date or the contract is expired. One the other hand, if closing is to occur by December 31, 2007, and time is not “of the essence” for that closing date, then the courts have said that both parties have a reasonable amount of time in which to close after the established closing date has passed. In some areas, it is common practice for time to be “of the essence” for the entire purchase contract. In other areas, pre-printed contracts will contain the phrase for certain paragraphs, such as closings and inspections. My advice is to use the phrase “time is of the essence” sparingly – but wisely. It is important to discuss the issue with your client. Then, if something goes wrong during the transaction or there are unforeseen delays, your client will have been a part of the decision to use or not to use this legal phrase. If the client is not consulted and something is delayed, the client may look to you to explain why the deal is not proceeding according to plan. If your client decides not to make time “of the essence,” then explain to that client that the dates in the contract are not hard-and-fast. It is easy to do this upfront, but it is difficult to tell a seller two days after the set closing date that the contract is still valid. This is especially true if they have back-up offers they would like to accept. If time is not “of the essence” and the established closing date passes, the contract is not

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It is always inadvisable to instruct a seller that a contract is void, as contracts are bilateral and generally cannot be declared void by one party. expired and it is not null and void. I often receive calls from agents who have instructed their clients that they may proceed on with their back-up contracts once the closing date has passed. This is not so. If the seller wants to move on from the original contract, the seller will need a release from the first buyer. By the same token, other terms in the contract may not be set in stone. For example, if a buyer promises to bring a pre-approval letter within X number of days and they do not, the contract is not null and void. The buyer still has a reasonable amount of time to fulfill that portion of the contract. At that point, the agent should not advise the seller that the contract is void and that he or she can move on to the next buyer! It is always inadvisable to instruct a seller that a contract is void, as contracts are bilateral and generally cannot be declared void by one party. It takes two to enter the contract and it usually takes two to declare the contract void. Now, the ultimate question: what constitutes a “reasonable amount of time?” The answer to this question depends upon the circumstances of each case. While the parties and the licensees may be anxious to close and may feel that weeks, or even months, is not a reasonable amount of time to wait, keep in mind that the sale of real estate is a long-term proposition.

Education

Make Education Pay Take your business from good to great

ir Claus Moser once said, “Education costs money but then so does ignorance.” Do you limit your education to the six hours required by the Kentucky Real Estate Commission or do you aim to take an abundant amount of professional development courses each year? The real estate industry is vigorous, energetic and always changing. Progressive training and experience pays, not only in enhancing services for home buyers and sellers, but also in enhancing your bottom line. To add value as a REALTOR®, one should learn to serve the specific needs of clients by adjusting to the latest trends, technology and demographics. The market is changing and so is the façade of home buyers and sellers.

Based on the updated data from the 2007 NAR Member Profile and 2006 incomes, REALTORS® with at least one designation earn $37,000 more than REALTORS® with no designations. Can you communicate effectively with homebuyers and sellers who are Seniors, Generation Xers or from another country? If your answer is no, there are designations and certifications that can help. If your answer is yes, there are designations and certifications that will take you from good to great. According to the 2007 NAR Member Profile, onethird of REALTORS® have one or more designations with the Graduate REALTOR® Institute (GRI) being the most commonly held designation and e-Pro being the most commonly held certification. Statistics show that a REALTOR® holding the CRS Designation earns a median income of $110,000 annually and a REALTOR® holding the GRI Designation typically earns 40% more than a REALTOR® not holding a designation. There are many designation and certification courses offered across the state of Kentucky. Designations and certifications would include the following:

• Graduate REALTOR® Institute (GRI) • Certified Residential Specialist (CRS) • Accredited Buyer Representative (ABR) • e-Pro Certification • At Home with Diversity Certification

Anetha Dunn Professional Development Director Kentucky Association of REALTORS®

The designations and certifications listed above are just the beginning – there are more than 21 official NAR designations and certifications. Take the time to see what designations and certifications have to offer you. If you have identified an area of importance or significance, there is a designation or certification that can expand your business. Knowing is learning and when you learn more, you earn more! Challenge yourself to begin or finish a designation or certification in 2008 and reap the financial benefits. As a REALTOR®, are you prepared to be the best in your industry?

For more information on NAR designations and certifications, visit http://www.realtor.org/education/index.html

Members of the 2007 LeadershipKAR class at their graduation ceremony. Members include Karen Bhatt, Ashley Columbus, Patricia Edison, Steve Elmore, Debra Fox, Erika Gudenkauf, Wanda Huffer, Bill Leslie, Steve Lewis, Gwen Mathews, Rip Phillips, Dave Smith, Kathy Thompson, Shelly Tilley and Rebecca Trout. Also pictured with the class are Gale Fulton, 2007 LKAR Chair, and Leslie Heath, 2007 LKAR Vice-Chair.

WINTER 2007 KENTUCKY REALTOR® 19

Global Village Trip

By Hunt Cooper Communications/Marketing Director Kentucky Association of REALTORS®

Rebuilding the Gulf Coast Kentucky REALTORS® Travel to Mobile, Alabama

few days after the 85th Annual KAR Convention & Expo, our team of dedicated and determined volunteers loaded three cargo vans and headed to Mobile, Alabama. This team embarked on a life-changing mission to help restore the livelihoods to families who lost it all when Hurricanes Katrina and Rita slammed the Gulf Coast. It all began on the morning of Sunday, September 30 from the KAR parking lot when 15 individuals – REALTORS® from 5 local associations and one KAR staff member – set out on a half day drive to the Alabama coast. I should point out that it really all began many months before as we laid out the initial plans of completing paperwork, fundraising and assembling the team through meetings and phone calls. As we arrived in Mobile late Sunday night, the anticipation of what we were about to take on began to surface. Discussions floated among the members as we all had thoughts about what the next five days had in store for us. Then Monday morning came and we arrived on the work site. A somewhat average looking neighborhood called Magnolia Crest, a 38-lot subdivision southwest of Mobile. We met the local Habitat For Humanity crew, all of whom greeted us with big smiles and “let’s get ready to work” attitudes. After a brief overview from the volunteer coordinator, a safety talk from the site manager and a prayer, our team got down to business. Our 15 person team was broken down into smaller groups to handle the activities that were planned for us during the week. A group of four was given a project of finishing work including trim, molding, painting, interior paint, etc. at four

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modular houses in the middle of the neighborhood. Another three began siding work and interior touch ups on two houses across the street and helped finish storage shed details. A group of seven, including me, began working on the first six houses at the entrance to the neighborhood, completing interior projects such as trim, window sills, installing doors and painting. For the remainder of the week, we stayed focused on these tasks and by Friday, our last day on the job site, we could see the results of our hard work. Several future homeowners – some from the Magnolia Crest neighborhood as well as those who were planning on moving into Habitat homes in other communities – helped our teams throughout the week. Overall, the work our teams performed put many of the homes on the edge of completion and homeowners should be moving into several of the homes as this is being read. After facing the extreme heat all day, our team resorted to relaxing evenings. On Tuesday night, we were welcomed by the Alabama Association of REALTORS® to a dinner at Wintzell’s Oyster House in downtown Mobile, a local landmark famous for its oysters and award winning gumbo. The food was fantastic and the generosity of the state association was even better. On Thursday, the Mobile Association of REALTORS® hosted us at their offices for a true Southern BBQ which was, again, very much appreciated and the food was delicious.

One afternoon, after an unexpected downpour, our team took a few hours to find out what attractions Mobile has to offer. Setting out in two vans, we drove across Mobile Bay and visited Battleship Memorial Park, where we spent a few hours exploring the grounds and soaking up knowledge about how damaging the Hurricanes were to this park and, ultimately, the region as a whole. Making the decision to leave work and family behind to help strangers, many of whom we will never see, will always be a difficult choice to make. For our Global Village team, after the job was done and we headed home, the choice we made to help others achieve the dream of homeownership became clear and we can all say it was well worth the blood, sweat and tears we gave during our brief stay in Mobile, the wettest city in America.

KAR Global Village Team: Annette Aldridge - Louisville Becky Baird - Fort Mitchell Jim Broadwater - Lexington Rick Brown - Owensboro Paula Colvin - Louisville Hunt Cooper - Lexington Silas Deane - Owensboro Carolyn Edwards - Lexington Robert Edwards - Somerset Cindy Emrich - Louisville Ashley Estes - Lexington Glynn Gregory - Lexington Rosemary Nobles - Louisville

For more pictures from the Global Village trip, visit kyrealtors.smugmug.com.

Jeff Smith - Fort Mitchell Casey Weesner - Lexington

KAR is asking our family of REALTORS速 to support future projects through a financial contribution to the Kentucky REALTOR速 Relief Fund. Donations can be made by mailing a check to KAR (Attention: REALTOR速 Relief Fund) or by credit card by calling KAR directly at 800-264-2185. If you would like to be added to the list of potential volunteers for future projects, please email hcooper@kar.com.

WINTER 2007 KENTUCKY REALTOR速 21

Local Association News

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

REALTORS® finished the work on the exterior of Ms. Lillie’s house. The interior received a significant portion of the work.

Northern Kentucky Association of REALTORS® Each year the Northern Kentucky Association of REALTORS® decides to take on one large community service project in addition to the other numerous events they do through out the year. For 2007, the communications and public relations committee decided to take on the Not So Extreme Home Makeover. The committee sent out requests for nominations from the general membership and they sent in anonymous letters for people in need. After much deliberation, NKAR chose Ms. Lillie’s home for the project. Being on a fixed income and alone, her home had had begun to fall into disrepair. The committee worked long and hard sending letters, making phone calls and calling in favors to get nearly $15K worth of donations in goods and services. Everything from carpet to food for the workers was donated for the two day event. The local papers and TV stations covered the main event and Ms. Lillie was overwhelmed with pride and thankfulness as her phone began to ring when people saw her home on the nightly news. Lexington Bluegrass Association of REALTORS® The Lexington Bluegrass Association of REALTORS® (LBAR) and the Kentucky World Trade Center (KWTC) collaborated on a trade mission to China in October. Participants in the trade mission visited new

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residential and commercial real estate developments and met with real estate developers, Chinese officials and US consulates in Shanghai, Dalian and Beijing. These experiences were Trade mission participants at Tiananmen invaluable in gaining a Square. Photo by Kay West. better understanding of the culture, laws and practices that would govern real estate opportunities at home and abroad. Organized and led by Ying Juan Rogers, of the KWTC, trade mission participants included Dennis and Cheryl Anderson, Pat Bailey, Kim Barber, Christel Blackburn, John Elling, Larry Freels, Paul Galvin, Rodney and Sharon Handshoe, Elaine Hangis, Steve Hupman, Kevin Long, Janice Mueller, Mary Sue Walker and Kay Wright. The KWTC mission is closely aligned with that of the LBAR International Task Force (ITF). The ITF was implemented to assist LBAR members develop a deeper understanding of foreign cultures and business practices in order to enhance their real estate businesses and the economic development of the region. REALTOR® Association of Southern Kentucky The REALTORS® Community Service committee of the REALTOR® Association of A view of the living room after the Southern Kentucky makeover. recently conducted an Extreme Living Room Makeover to help redesign a room for one lucky family in the area. The committee advertised the event through the local radio station, 100.7 SAM, as well as on their association website sokyrealtors.com. Contestants

entered the contest by writing a 96 word essay and presenting a picture of the living room they wanted to be made over. Volunteers met each day at the winning house in the early morning and would work as many as 12 hours a day. The room was transformed in four days with a reception and showing for the family when it was complete. During the four-day time period, the family received new furniture, carpet and accessories to go along with newly constructed fireplace. The built-ins received a total overhaul and REALTORS® primed the walls, caulked the ceiling and painted. To view the complete video from this project, visit www.youtube.com/watch?v=BzVhfG8bvc8.

Pictured L to R: Lora Noble, Novella Richardson, Helen Fardo, 2007 President Bobby Johns and Pam Wade distribute Halloween goodies in downtown Richmond.

Madison County Board of REALTORS® For the past three years, the city of Richmond has hosted a Halloween Fest. This year’s theme was Halloween Hoedown. The main streets in Richmond are blocked off and flooded with food and craft vendors, an array of contests and a host of other activities for children. This year, Madison County Board of REALTORS® joined the fest for the first time and setup on “Treat Street.” REALTORS® gave out 940 mini Frisbees to children, inkless ID kits and 2008 Fair Housing calendars to parents. The kids loved the Frisbees and the parents said they were glad to get some helpful treats. On another note, Marilyn Staton, a member of the Madison County Board of REALTORS®, won the 2007 Spirit of Unity Award from the Kentucky Housing Corporation. This award honors real estate professionals for outstanding service to their community and their commitment in helping provide affordable home ownership opportunities to Kentuckians.

Habitat for Humanity draws a crowd of volunteers for its 75th house in Owensboro.

Owensboro Association of REALTORS® For the second time in less than three years, the Owensboro Board of REALTORS® has helped build a Habitat for Humanity home. The REALTORS® partnered with the Home Builders Association of Owensboro on the area’s 75th Habitat home. The REALTORS® were in charge of fundraising while the Home Builders Association provided construction crews and affiliate members donated much of the materials. The two groups completed the 1,189 square foot home in less than 45 days, putting it right on schedule. The REALTORS® and the Home Builders Association used this effort to work together on a project that would not only benefit the community but also strengthen their relationship.

Deepest Sympathies To G a r y S ch ro e d e r who passed away on October 9, 2007. He was president of the Somerset Lake Cumberland Board of REALTORS® and served on the Finance & Audit committee at KAR. To Av on Ev ans H e a r t who passed away on October 25, 2007. She was a member of the Heart of Kentucky Association of REALTORS® and served on the Professional Standards committee at KAR. To B ro ok s We l l s who passed away on October 27, 2007. He was a member of the Ashland Area Board of REALTORS® and was considered a pioneer in the real estate industry in Kentucky. To Jesse Kinman who passed away on November 25, 2007. He was a member of the Lexington Bluegrass Association of REALTORS® and was president of KAR in 1994 and awarded REALTOR® of the YEAR for KAR in 1997. To Sheila Jo Roberts who passed away on December 5, 2007. She was a member of the Paducah Board of REALTORS®.

WINTER 2007 KENTUCKY REALTOR® 23

41years By The Numbers

The age of the typical home buyer, according to the 2006 National Association of REALTORS® Profile of Home Buyers and Sellers. Among first-time buyers, the median age is 32.

100 square feet

From 2004 to 2007, the size of the typical home purchased increased by about 100 square feet, according to NAR’s 2007 Profile of Buyers’ Home Feature Preferences. At the same time, the median age of homes purchased decreased from 15 to 12 years.

78%

According to NAR, the percent of Baby Boomers who own their home compared with the national average of about 70 percent. Twenty-five percent own more than one property.

65%

Percent of REALTORS who have their own real estate agent/business website, according to the 2007 survey by the National Association of REALTORS®’ Center for REALTOR® Technology. Twenty-four percent of these REALTORS® had a website in 2000 or before. ®

2.0

As in Web 2.0. This is the term given to describe a second generation of the World Wide Web that is focused on the ability for people to collaborate and share information online. Web 2.0 relies heavily on active participation and social interaction by users. It includes terms such as wikis, mash-ups, social networking, blogs, RSS feeds, among others, that

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84%

drive the web to be more dynamic. Some Web 2.0 applications that are mentioned along side real estate are ActiveRain, SecondLife, YouTube and Trulia. Percent of homebuyers who used the internet to search for properties in 2006, up from 2 percent in 1995, according to the 2007 National Association of REALTORS® Profile of Home Buyers and Sellers.

75%

Percent of Americans surveyed believe that either being smarter about development or improving public transportation are both better long-term solutions for reducing traffic congestion than building new roads, according to a survey sponsored by the National Association of REALTORS® and Smart Growth America.

83%

According to a national representative sampling by Opinion Research Corporation, the percent of all homeowners who said their home was worth more than what they paid for it. Nearly half stated their home was worth "a lot more." Percentage of homeowners in 2005 who were minorities. This number is expected to grow to 30% by 2010 and 32% by 2015. According to predictions by HUD and Fannie Mae, minorities could account for up to 60% of all first time home purchases during the next five to 10 years.

28%

Housing Stats

Kentucky Home Prices Move Forward Volume of Sales Sees Decline

he median price of a home in Kentucky rose almost 6% in September 2007 compared to the same period in 2006 and increased 5% from August 2007 according to state housing statistics. This is good news for the state as national media reports continue to slam the housing market saying home prices are dropping. Seventeen of the 23 associations reporting posted gains in median home prices with eight of these showing double-digit increases. The number of Kentucky homes sold, however, continues to see a downward trend according to statistics for September 2007. Statewide sales of new and existing homes dipped 17% during the month compared to the same period in 2006. According to the data, 3,517 homes were sold in September 2007 versus 4,144 homes in September 2006. “With inventories up across the state and slower sales, buyers have more homes now than ever to choose from,” said KAR President Carl Tackett. “The federal government has pushed to keep mortgage rates extremely low, which allows buyers a phenomenal market to enter and the chance to find exactly what they are looking for.” According to the latest national data, the housing market is seeing some upswings which may signal a turnaround in the coming months. Mortgage applications are improving, new home sales across the country have seen a slight increase and forecasters are predicting home stabilization on a national level sooner than once thought. As Kentucky moves forward, it should benefit from this change. “Our state as a whole is still seeing a housing market that is traditionally what it is accustomed to,” explained Tackett. “We have slight variations from time to time but the housing market has consistently managed price appreciations over the long term. Housing continues to be a very stable investment in Kentucky. When the national picture shapes up, we should see that carry over here and sales should pick up.”

B o a rd / A s s o c i a t i o n

# So ld 9 /07

# So ld 9 /06

Henderson-Audubon BOR

Hopkinsville-Christian BOR

Kentucky-Barkley Lakes BOR

# Sold %

M e d i a n P r i ce 9 /07

M e d i a n P r i ce 9/ 06

Med i an P r i ce %

-11.76%

116950

94250

19.41%

-9.30%

115000

95000

17.39%

-36.67%

121200

85750

29.25%

Region On e

Madisonville-Hopkins BOR

0.00%

93400

67000

28.27%

Mayfield-Graves BOR

-10.71%

70000

55000

21.43%

Murray Calloway County BOR

8.33%

144300

100950

30.04%

107

100

6.54%

117500

111205

5.32%

Paducah BOR

-22.67%

130000

113500

12.69%

Pennyrile BOR

26.67%

98000

95000

3.06%

Central Kentucky AOR

-1.75%

102000

102500

-0.49%

Heart of Kentucky AOR

125

174

-39.20%

130900

134950

-3.09%

Old Kentucky Home BOR

-84.85%

113330

110000

2.94%

REALTOR® Assn of SKY

156

219

-40.38%

116750

117000

-0.21%

Russellville-Logan BOR

9.09%

81000

68500

15.43%

Shelbyville BOR

6.38%

148000

148475

-0.32%

South Central Kentucky AOR

-13.79%

104275

97000

6.98%

1115

1279

-14.71%

141500

135000

4.59%

659

808

-22.61%

146579

144422

1.47%

479

548

-14.41%

142500

134500

5.61%

102

-59.38%

98000

96425

1.61%

Owensboro BOR

R e g io n Tw o

R e g io n T h r e e Greater Louisville AOR

Regi on F our Lexington Bluegrass AOR

Region F ive Northern Kentucky AOR

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

N/A

Cynthiana-Harrison County BOR

N/A

Dix River BOR

N/A

-23.08%

Frankfort BOR

N/A

Madison County BOR

177

186

-5.08%

136250

133938

1.70%

Pioneer Trace BOR

-39.39%

100000

119900

-19.90%

Somerset-Lake Cumberland BOR

-33.96

102000

115000

-12.75%

Eastern Kentucky AOR

N/A 143481 N/A

N/A

69882

51.30%

N/A

Based on information from local REALTOR® associations/MLSs for the periods of September 1-30, 2006 and 2007.

WINTER 2007 KENTUCKY REALTOR® 25

Community Profile

A Spotlight on... Barren County Top Honors Awarded By National Publication

arren County, Kentucky was recently named the “Best Place to Live in Rural America for 2007” by Progressive Farmer magazine. The county, rich with a diverse history, is best known for its beautiful, rolling farmlands and its proximity to some of the most recognized cave systems in the world. Barren County is located between Louisville and Nashville, Tennessee along I-65 and bordered by a section of the proposed I-66 corridor making this region very accessible to locals and tourists alike. But that is where the outside world ends. Once you are within the borders, you become engulfed in a true rural community where many find themselves returning after a single visit to settle in to a new way of life. “We are seeing an influx of new residents coming to our area,” said Karen Fox, president of the South Central Kentucky Association of REALTORS® (SCKAR). “People tend to stop in for a visit and then come back to live.” During the autumn months, Barren County becomes a picturesque landscape dotted with ponds, small country churches and farming complete with rows of corn, soybeans, burley tobacco and an abundance of cattle. If you are traveling down one of the back roads that wind through the area, you may be lucky enough to see the occasional deer or wild turkey that roam the hayfields. This is the type of place where you want to stop on a hilltop and just absorb the serenity of the old fashioned views. Barren County’s roots date back to 1799 when immigrants from Scotland settled the area. Today, with this heritage still alive, the area hosts annual Scottish Highland Games, bringing competition, dancing, music and a celebration of tradition to Glasgow, the county seat named in honor of the largest city in Scotland and birthplace to journalist Diane Sawyer.

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“Our region’s history has shaped the way our residents live,” stated SCKAR’s Association Executive Linda Flickinger. “We maintain the small town atmosphere of our past while bringing in the big town feel where it’s needed.” The newly restored Plaza Theater has developed into a premier performing arts center. The 1,064 seat theater caters not only to local productions but has attracted national acts such as Gene Autry and Porter Wagoner as well as Kathy Mattea and Vicki Lawrence. It is also home to a local acting troupe known as the Far Off Broadway Players. To find the area’s largest collection of regional newspapers dating back more than 80 years, visit the South Central Kentucky Cultural Center. It not only includes the Genealogy Research Room, it also features the Museum of the Barrens, which covers the heritage of the area from prehistoric to the present, and an art gallery that showcases regional art and artists. Other highlights throughout the year include Concert on the Square, an outdoor Fourth of July celebration in Glasgow featuring the Louisville Symphony, and the W.A. Weldon Invitational Tennis Tournament, one of the oldest privately endowed tennis events in the South. The area in and around Barren County allows for unlimited amounts of outdoor activities. Barren County Lake State Park features a 10,100-acre lake where the largest hybrid striped bass ever taken in Kentucky (20 lb., 8 oz.) was caught. It also offers plenty of shoreline with lake front homes and a public sand beach. The park itself includes a lodge with 51 lakeview rooms, 22 cottages, an 18-hole golf course, a full-service marina, horseback riding, bike trails, tennis courts and a campground. And if being above ground doesn’t do it for you, try some underground exploring in one of the many cave systems that run through or adjacent to Barren

County. The most popular, of course, is Mammoth Cave National Park, which stretches into the northwest portion of the county. Mammoth Cave National Park is a 52,830 acre park that centers around the Green River and encompasses Mammoth Cave, the largest system in the world with over 367 miles of passageways. Two other areas that scored high on the Progressive Farmer list that helped boost the rankings for Barren County were in education and healthcare. The three school systems serving the area have some of the highest achievement scores in Kentucky. The Barren Academy of Virtual and Expanded Learning is a Kentucky Department of Education accredited online high school and the first of its kind in the state. The local hospital, which has undergone extensive renovations to expand services, was designated as the site for one of Kentucky’s congressionally mandated Family Practice Residency Programs and is now home to the University of Louisville Glasgow/Barren County Family Medicine Residency. With all the outdoor excitement in Barren County and new economic development projects going strong, affordable housing and smart growth remain in the forefront. “Across the board (in housing), we are alive and well,” stated Fox. “Our home sales are stable and continue to be affordable. We are not seeing the downturn that is affecting many areas of the country.” Although Barren County isn’t home to many nationally recognized corporations, it does have several thriving industrial parks – three to be exact and a fourth is underway.

Even as the area is growing its business community, the farming industry still thrives. Barren County has the largest number of beef and dairy cattle in the state making it number one in milk production. It also ranks as number one in burley tobacco production and number two in hay production. Flickinger says bridging the two lifestyles – major industry and farming – together to maintain a cohesive environment is the key to making residents happy. “Barren County is fortunate to be able to do this,” she says. “Bringing planned development to our community while preserving our farmland is extremely important. So far, it seems to be working and we have some of the lowest utility costs and property taxes in the country as a result.” How the counties were selected: Each year, the magazine partners with OnBoard LLC, a real estate research firm, to put together a preliminary list of rural counties that meet certain criteria. According to the magazine’s website, they look at household income, household spending, home and land prices, crime rates, air quality, education, access to health care and other statistics . . . all things that can give them a snapshot of places they think readers would want to call home. For several months out of the year, Progressive Farmer’s team of editors travels to the top counties, taking pictures, interviewing residents and getting the lay of the land. They meet to finish off the list, ranking counties based on what is learned during their travels.

WINTER 2007 KENTUCKY REALTOR® 27

From the Helm The Value of a Cup of Coffee

hat to write for my column, I pondered? Should I write about tips on what to do when the market is slow? Or, the changing of the guard at the Governor’s Mansion (pictured above) and what an administration change could mean for us. Nothing I could write could be as meaningful as paying tribute to a member of our Association who recently passed away. Jesse Kinman was a member of many groups. He was a joiner, a volunteer, a giver and he rose to the top of many of the organizations he served. He was a member and Grand Master of the Masonic Lodge. He worked for the Transportation Cabinet and served as president of the American Right of Way Association. He served as president of the Bluegrass Chapter of the Society of Residential Appraisers. And, perhaps most importantly, he was a “member” of a group of coffee drinkers that frequently meet at McDonald’s in Frankfort. Jesse was a member of his church and served his country as a Marine. And, lucky for us, he was a member of the Frankfort Board of REALTORS® and the Kentucky Association of REALTORS®. He was elected president of the Kentucky Association of REALTORS® in 1994 and was honored as the Kentucky REALTOR® of the Year in 1997. Jesse was a man who was honest, truthful, gentle and right about things in work and life most of the time… but never had to tell you he was right. There are a lot of lessons we can all learn from Jesse’s life. Share knowledge – Jesse shared his knowledge with everyone he came into contact with, if they asked. He would never tout his accomplishments or brag, but he always shared his knowledge gained from years of experience. When I first arrived at the Kentucky Association of REALTORS®, our Legal Counsel (now Court of Appeals Judge) Glenn Acree advised me: “You really need to get to know Jesse Kinman. He knows all about the Kentucky Association of REALTORS® – the politics, policies, history and traditions.”

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Then, Glenn added, “He is one of the great past presidents… and a prince of a fellow.” He truly was. Be a joiner – Jesse joined many organizations and groups. The groups weren’t all related to his career, but I am sure they all contributed to his success. It was apparent that his many groups held importance in Jesse’s life. I got the impression that his group of coffee drinkers at the McDonald’s meant as much to him as his business organizations and presidencies. I wonder if they elected a president of the Frankfort McDonald’s Coffee Drinkers. Know politics – Politics is more than just knowing government; politics is knowing what motivates people. Jesse was active in politics. He knew how to “politic” in the Association and knew Kentucky politicians all over. His wife, Carolyn knew politics too, as she was the key contact for lobbyists in Frankfort for several years. Jesse had a kind and quiet manner, but he could work a crowd in his way. Whether sauntering around the halls of the KAR convention or the halls of state government, Jesse knew people and what makes them tick because he took to time to listen without speaking. He didn’t really grandstand, boast or harangue, but you could tell that Jesse enjoyed the campaigns and strategies as much as anyone. And he was successful in his campaigns because he engaged others. Find the next leader – Upon hearing about the progress of Jesse’s illness, many people mentioned how Jesse taught them something. In his unassuming way, Jesse knew the value of teaching history and traditions to others, while letting them take the reins. He demonstrated the value of all of the organizations he joined by encouraging participation from others. He made himself available to those who came to him for advice or guidance because he knew he could help nurture the next leader. There are many lessons we can learn from Jesse’s life. And one lesson we should remember is that Jesse knew the value of sharing a cup of coffee with someone. He knew that being a member of a group of coffee drinkers at McDonald’s is just as important as being president.

Susan W. Helm, RCE Executive Vice President, KAR

Code of Ethics

Have You Made Your New Year’s Resolution?

ome people consider the end of the year a good time to take stock of their lives, check progress on last year’s goals and set new goals for the coming year. Often times these are referred to as New Year’s resolutions. Most of the time, I end up writing many of my “promises” from the previous year on the new year’s list. Sometimes, I’ll put something on the new list that has already been completed just so I can write it down on January 1st and triumphantly put a line through it: DONE! In addition to resolutions, the New Year might be a good time to think about what ethics means to you. By December 31, 2008, REALTORS® are required to have completed at least two and a half hours of ethics training since January of 2005. Between new member orientation classes, annual continuing education requirements and classes taken towards earning a designation, most REALTORS® meet that minimum. If not, you can take the NAR ethics course online to satisfy the requirement. After the course evaluation is turned in and the Certificate of Completion is presented, how do you apply that classroom knowledge to the “real world?” Recently some REALTORS® from across the state shared with me their personal views of what it means to “be ethical.” So what will be on your list of New Year’s resolutions? Maybe your list will be filled with the old standbys such as exercise more, lose weight, get more organized, spend more time with friends and family, etc. Will “to be more ethical” be an item? As you should already be conducting yourself with the highest of moral behavior, concentrate on making that an even larger part of both your personal and work life. Consider this: if you have not completed your ethics requirement yet, put that on the top of the list for 2008. Your local association, KAR and NAR will be there to provide training opportunities and support. If you have questions, look to a REALTOR® you respect and admire for answers and guidance.

Just think how wonderful it will feel to get out your list and triumphantly put a line Julie Johnson through the ethics Professional Standards Director requirement item: Kentucky Association of REALTORS® DONE! Now you can dust off your tennis shoes and get started on the rest of your list!

Take NAR’s online quadrennial ethics course by visiting http://www.realtor.org/mempolweb.nsf/pages/onlineethicstraining Being 25 years old, I know most would probably say I haven't been around long enough to really know what the term "ethical" means. While that may be true, I believe that being ethical means being presented with a multitude of options and having the moral fiber, foresight, character and courage to do what is right in the presence of fear and adversity. Although being ethical is sometimes difficult in today's world, ultimately it's what will set an individual apart from the crowd. M . A l an H e ns l ey , Eastern Kentucky Association of REALTORS® I believe that the Code of Ethics is what sets REALTORS® apart from other business associations. Without the Code we would only be a trade association with no way to protect the ethical practitioners and enhance the REALTOR® image. The Code can be reduced to its preamble statement of following the “Golden Rule.” G u y M o ntg o me r y , Greater Louisville Association of REALTORS® Being ethical sometimes means putting self-interest aside and just doing what is right. When we are ethical we gain respect from the public and our peers, it feels good and it is good business. To nit a G o o d w i n, Madison County Board of REALTORS®

Ethical to me means being fair and honest in all activities both work related and personal. As REALTORS® we should always strive to adhere to the strict Code of Ethics mandated by the National Association of REALTORS®. We have a responsibility to treat all of our clients and customers with fairness, honesty and respect. Les li e G r ay , Kentucky Barkley Lakes Board of REALTORS®

WINTER 2007 KENTUCKY REALTOR® 29

A Day in the Life of... A “Model” Agent Heidi Fore, REALTOR® Prospect, Kentucky

n this column, Hunt Cooper, Marketing/ Communications Director with the Kentucky Association of REALTORS®, will highlight a day in the life of someone in real estate or a related field. On October 22, he talked with former international fashion model Heidi Fore, a REALTOR® with Keller Williams Realty Louisville who was recently named one of REALTOR® magazine’s “30 Under 30” and a Top 50 REALTOR® on the Rise through RIS Media. Fore is also a monthly columnist for RealtySuccess Magazine. How has your past life as an international fashion model helped in your real estate career? I’m not afraid of a camera! But the best part about being a model was learning about other cultures. My roommates and I shared stories about growing up in our home countries. Seeing the world and living in other cities made me appreciate Kentucky. I love Kentucky. That’s why I specialize in relocations. I want to help more people realize how great Kentucky is and find a home here. What made you decide to go into real estate? In spring of 2002 I called my dad from Milan and he told me he had cancer. I got on a plane the next day and flew to New York City, boxed up my belongings and flew back to Kentucky to help my family. I needed to help my mother with my younger siblings, my father and 88 year old grandfather. Instead of accepting to Whittier Law School in California, I enrolled in real estate school in Kentucky. How do you juggle the demands of family and real estate? It’s difficult. If Grandpa has a doctor’s appointment, I take him then I go show houses. My husband is as career-driven as I am, so we schedule dates with each other and I put it on my calendar as an appointment. I also have a fantastic administrative assistant and a great buyer’s agent to help me with all the showings. What do you like best about working with international clients? I am intrigued by other cultures and languages. I have helped people relocate to Kentucky from Japan, Sweden and England. Some of my clients are from Cuba, Mexico and other Spanish speaking countries. I’m learning Spanish to better assist them – but I get it confused with Italian. I also speak German.

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What has been the best thing to happen to you since being named one of REALTOR® magazine’s “30 Under 30” and a Top 50 REALTOR® on the Rise? Getting interviewed for Kentucky REALTOR® magazine, of course! And, being chosen to speak at the National Association of REALTORS® convention. It’s a huge honor. Out of all the REALTORS® in the country, why do you think you were you selected for these two awards? I have no idea. I could name dozens of other REALTORS® who should have been chosen. I just work really hard and sometimes people notice. It’s a nice feeling to win the respect of my peers through hard work. Concerning technology, what is the one thing you couldn’t live without? My Treo. It’s practically super glued to my hand. It’s my email, camera, calendar, client database, agent phone numbers, yellow pages, GPS, and portable online MLS database. It’s also nice to be able to play Solitaire during a slow open house. What has been the number one thing you have done to increase your business? I created a very specific business plan outlining my goals and progress. Creating that spreadsheet has kept me focused. On my spreadsheet I outline daily tasks that must be done to meet the weekly quota of phone calls, notes, visits, listing appointments and showings. I know if I hit those numbers, I’ll meet my monthly goal of 5 houses a month, and get to my goal of 60 houses this year. Next year I’m going to sell 100 houses. Do you still model? I’ll do charity fashion shows sometimes, to help a good cause. What was your favorite modeling job? My favorite job was definitely the Tiffany’s show. I wore a diamond Tiffany necklace that cost more than the last house I sold. Where do you shop? There’s not much time to shop between my hectic work schedule so basically all I have time to do is Google “black pants suit size 6” and then whatever comes up on the screen, I click on “Buy Now.” Last question, what is the best piece of advice you ever received? “You should be a REALTOR®.” That advice was from Earl Weikel, owner of a real estate school in Kentucky. The best advice I could give someone comes from the movie Pollyanna – “Play the glad game.” Always find something to be glad about.