Salt Lake Realtor – May 2018

Salt Lake

REALTOR ®

Magazine May 2018

How to Keep More of Your Money Under the New Tax Law p. 12

Cybercriminals Target Real Estate Transactions p. 22

Q1 Housing Report

p. 26

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Table of Contents Features

Realtors help build Habitat for Humanity home. p. 20 ®

10 Realtors® and Affiliates Build Habitat Home

12 Six Things You Need to Know About the Tax Cuts and Jobs Act Dave Anderton 18 What Is RPAC? Matthew Clewett 22 Risky Business Sam Silverstein

Columns 7 Here Come the Californians Adam Kirkham – President’s Message

Departments 8 Happenings 8 In the News 26 Housing Watch 28 Realtor® Connections 28 On the Move

On the Cover: Illustration: © byemo / Adobe Stock Photo left: Dave Anderton

This Magazine is Self-Supporting Salt Lake Realtor® Magazine is self-supporting.

The advertisers in this magazine pay for all production and distribution costs. Help support this magazine by advertising. For advertising rates, please contact Mills Publishing at 801.467.9419.

The paper used in Salt Lake Realtor® Magazine comes from trees in managed timberlands.

These trees are planted and grown specifically to make paper and do not come from parks or wilderness areas. In addition, a portion of this magazine is printed from recycled paper.

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The Salt Lake REALTOR® (ISSN 2153 2141) is published monthly by Mills Publishing, located at 772 E. 3300 South, Suite 200 Salt Lake City, Utah 84106. Periodicals Postage Paid at Salt Lake City, UT. POSTMASTER: Send address changes to: The Salt Lake REALTOR,® 772 E. 3300 South, Suite 200 Salt Lake City, Utah 84106-4618.

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President Adam Kirkham Summit Sotheby’s International First Vice President Scott Robbins Coldwell Banker Residential

Scott Colemere Colemere Realty Associates Kimberly Farber IMPOWER Real Estate Brian Gottfredson Coldwell Banker Residential Tony Ketterling Equity Real Estate

Second Vice President Alicia Holdaway Equity Real Estate

Mike Morgan Realtypath

Treasurer Matthew Ulrich Ulrich Realtors®

Mary Olsen Utah Key Real Estate Jodie Osofsky Utah Key Real Estate

Past President Troy Peterson Equity Real Estate

Steve A. Perry Realtypath Sophie Reece Berkshire Hathaway

Directors Cheryl Acker Utah Key Real Estate

Michael Rowe Berkshire Hathaway

Advertising information may be obtained by calling (801) 467-9419 or by visiting www.millspub.com

Publisher Mills Publishing, Inc. www.millspub.com

Office Administrator Cynthia Bell Snow Office Assistant Jessica Snow Administrative Assistant KellieAnn Halvorsen

Salt Lake Board: (801) 542-8840 e-mail: dave@saltlakeboard.com Web Site: www.slrealtors.com The Salt Lake Board of REALTORS® is pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the nation. We encourage and support the affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin.

The Salt Lake REALTOR is the monthly magazine of the Salt Lake Board of REALTORS . Opinions expressed by writers and persons quoted in articles are their own and do not necessarily reflect positions of the Salt Lake Board of REALTORS®. ®

migration tsunami is taking shape with millions of people and thousands of businesses fleeing high-tax states to low-tax states, according to The Wall Street Journal.

Economist Arthur Laffer believes the losers will be most of the Northeast and California. The winners? Arizona, Nevada, Tennessee, Texas and Utah.

The reasons are straightforward.

The Tax Cuts and Jobs Act has capped the deduction people can make on state and local taxes. In addition, states like Utah, Texas and Tennessee have adopted policies that help families build and protect wealth and prosperity.

“We estimate, based on the historical relationship between tax rates and migration patterns, that both California and New York will lose on net about 800,000 residents over the next three years—roughly twice the number that left from 201416,” Laffer and Stephen Moore, senior fellow at the Heritage Foundation, said.

“Our calculations suggest that Connecticut, New Jersey and Minnesota combined will hemorrhage another roughly 500,000 people in the same period.”

President Dan Miller Art Director Jackie Medina

Sales Staff Paula Bell Karen Malan Paul Nicholas

A

Utah, according to the 2018 Prosperity Now Scorecard, earned the No. 7 spot for the most desirable state for homeownership. New York ranked as the worst state for homeownership. What’s more, the American Legislative Exchange Council just released its annual state economic competitiveness index report. Utah ranked No. 1 in the report’s forwardlooking Economic Outlook Rank. In contrast, California placed in the bottom five states at No. 47 for economic competitiveness.

Managing Editor Dave Anderton

Graphic Design Ken Magleby Patrick Witmer

Here Come the Californians

®

This news, combined with Utah’s already surging natural increase, will ensure a robust and competitive real estate market for years to come. One cautionary note to Utah is to brace itself, according to Laffer. “The Yankees (and Californians) are coming, and they are bringing their money with them,” he said.

“As the migration speeds up, it will raise real-estate values in low-tax states and hurt them in high-tax states.”

There’s never been a better time in the history of Utah to be a Realtor®. Let’s move forward together and meet the future with optimism.

Adam Kirkham President

Permission will be granted in most cases, upon written request, to reprint or reproduce articles and photographs in this issue, provided proper credit is given to The Salt Lake REALTOR®, as well as to any writers and photographers whose names appear with the articles and photographs.

While unsolicited original manuscripts and photographs related to the real estate profession are welcome, no payment is made for their use in the publication.

Views and opinions expressed in the editorial and advertising content of the The Salt Lake REALTOR® are not necessarily endorsed by the Salt Lake Board of REALTORS®. However, advertisers do make publication of this magazine possible, so consideration of products and services listed is greatly appreciated.

OFFICIAL PUBLICATION OF THE SALT LAKE BOARD OF REALTORS ® REALTOR® is a registered mark which identifies a professional in real estate who subscribes to a strict Code of Ethics as a member of the NATIONAL ASSOCIATION OF REALTORS®.

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May 2018 | Salt Lake Realtor ® | 7

Happenings

In the News

Top 10 Cities for Millennials

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Seller Disclosures and HOAs

A new Utah law (HB454) requires HOAs to provide CC&Rs, regulations, and the association’s most recent minutes, budget and financial statements within five business days when requested by a unit owner. The documents are to be provided free of charge on an HOA’s website or by email. Physical documents can be provided at 10 cents per page (plus $15 an hour for employee’s time). Michael Johnson, pictured, CEO of FCS Community Management, said federal and state laws always take precedence over HOA governing documents. The law also implements a $500 fine or damages, whichever is greater, for noncompliance.

©Sculpies / iStock

Utah’s Housing Shortage is Persistent

A new report by the University of Utah’s Kem C. Gardner Policy Institute said Utah’s shortfall in housing units has been persistent and will likely continue for at least two more years. “In 2017 the increase in households in Utah was 28,075 while the increase in housing units was 23,000,” the report said. “In order to close the gap the homebuilding industry will need to produce 28,000 units in 2018, an increase of 5,000 units over 2017. An increase of this magnitude is very unlikely.”

8 | Salt Lake Realtor ® | May 2018

T

he data team at realtor.com decided to find out where younger Americans make up the largest percentage of purchasers, by looking at who is getting mortgages and where they’re getting them.

Provo, Utah, ranked No. 4 of the largest share of millennial mortgages.

The median home list price in Provo was $100,000 more than the national median.

“But high prices aren’t locking younger buyers out of the market here, because wages are also good,” the report said.

“The city is home to Brigham Young University, Ancestry.com, and plenty of start-ups where computer coders can earn a fine living. That earned the city a spot on our ranking of top metros for the middle class.”

Provo homes cost a bit less than those in nearby Salt Lake City, at a median nearly $394,000. The larger city, about 45 minutes north, was ranked as one of the toughest housing markets for millennials by realtor.com.

“At the end of the day, it comes down to what they can afford,” said Roger Ma, a real estate agent and owner of Life Laid Out, a New Yorkbased company that helps people reach their financial goals. “They might have started their careers in very expensive metros areas like [Washington] DC or San Francisco. But as they age, they often want to settle down and look for a home in a reasonably priced location.”

Appleton, Wis., ranked No. 1 on the list.

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Realtors® and Affiliates Build Habitat Home

M

embers of the Salt Lake Board of Realtors® volunteered their time in April in the construction of a new Salt Lake Valley Habitat for Humanity home located in the Field of Dreams Eco Community in Kearns.

The mission of Habitat for Humanity is to help working families become home owners. “We are excited to give to the community,” said Art Gayler, chairman of the Salt Lake Board of Realtors’ Charity Committee and a broker with Venture West Real Estate. The homes were designed by the University of Utah’s School of Architecture and have three unique features: Volunteers can build them, each house costs $150,000 or less including land, and they only use a $1.50 per day in total utility costs.

Photos: Dave Anderton

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Six Things You Need to Know About the Tax Cuts and Jobs Act Tax attorney and CPA Mark Kohler recently offered his insights into the Tax Cuts and Jobs Act and how the new law impacts business owners. Here’s what Realtors® need to know.

By Dave Anderton

1. Take advantage of the new 20% deduction

Corporate America got a big win in the new tax law with a 21 percent tax rate, but small business owners got a major deduction on the “pass-through,” according to tax expert Mark Kohler. For Realtors® with an S-Corp, partnership, or sole proprietorship your 2018 income may qualify for some or all of the new 20 percent deduction. The deduction applies to net qualified business income. Qualified business income is the net of qualified items of income, gain, deduction, and loss with respect to any of your qualified trades or businesses. For instance, suppose you made $200,000 and deducted $50,000 in expenses, leaving a net income of $150,000. For this example, that amounts to a $30,000 deduction leaving a net of $120,000. The pass-thru deduction does not apply to short or long-term capital gain earnings,

12 | Salt Lake Realtor ® | May 2018

dividends, points or interest income, or W-2 income. Only qualified business income or rental income is eligible for the deduction. However, if you make more than $315,000 (married filing jointly) or $157,500 (single filer), the deduction begins to phase out. If you make more than $415,000 (married) or $207,000 (single) you can’t take any portion of the 20 percent deduction.

2. Entertainment The bad news for business owners is entertainment write-offs. Beginning this year, entertainment costs are no longer tax deductible.

This includes year-end parties for customers, golf, movies, sporting events, spa treatments, or theater tickets. What’s more, if you give a client a gift that is more than $25 in value you are required to give him/her a 1099. “The entertainment industry is really concerned,” Kohler said.

3. Meals

Business meal write-offs are now questionable.

The new law does not allow meal write-offs with clients. However, Congress’ original intent was to continue the business meal deduction, Kohler said. This summer the IRS is expected to release new regulations on the issue. In the meantime, Kohler suggests to track business luncheons.

The new regulations, if approved, would allow a 50 percent deduction. Business owners can continue to take a 50 percent deduction for meals when traveling outside of a normal commute and while traveling away from home overnight.

Food expenses in the office for employees have been lowered to 50 percent from last year’s 100 percent write-off. Food that is part of a marketing presentation is 100 percent tax deductible.

4. Travel

Business travel continues to be a 100 percent write-off. This includes, airfare, hotel, rental cars, gasoline, trains, subways, valet, taxis etc. Business travel consists of meeting a vendor, a client, attending a corporate meeting, visiting a rental property, or attending a workshop. “When you travel, the day you travel is a write-off and the day to come back is a write-off,” Kohler said. “The ©Gary L. / Adobe Stock

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days you do business are also write-offs.” The IRS classifies a business day as at least four hours of business or a critical meeting. Shopping for real estate is not a write-off, Kohler added, unless you make a legitimate offer on a property.

5. Mileage vs. Depreciation?

Section 179 of the tax code allows small business owners to deduct the full purchase price of qualifying equipment used in a business. For Realtors®, that means their vehicles. While many Realtors® deduct mileage, under the new tax law the purchase of a new or used luxury automobile may give a business owner a larger deduction. The law raises the limit on luxury vehicles to $50,000 and provides a bonus depreciation of $8,000 with depreciation over six years. In addition, the bonus depreciation is unlimited on the purchase of any new or used vehicle with a gross vehicle weight rating of 6,000 pounds or more. For example, the purchase of a $60,000 SUV that weighs more than 6,000 pounds now allows for 100 percent bonus depreciation (no limit) in the first year assuming the vehicle is for 100 percent business use. If the business use is 50 percent or less, the vehicle is not eligible for the 179 expense or firstyear depreciation. “We are now able to write off 100 percent of that $60,000 car plus fuel, repairs, maintenance, insurance and interest,” Kohler said.

6. Health Savings Accounts “The Health Savings Account is one of the most powerful pieces of a well-designed health care strategy,” according to Kohler. “It includes

14 | Salt Lake Realtor ® | May 2018

saving money, saving taxes, building a tax-free ‘bucket’ for health care and most importantly taking control of your own health care strategy.”

Kohler said that HSAs save money because in order to have one, you have to have a ‘high deductible health care plan’. This creates a lower premium with a higher deductible and thus more money in your pocket that can be put in the HSA savings account. There are two important deadlines. First, you have to enroll in a highdeductible health insurance plan (HDHP) before Dec. 1st in the year you want the deduction. So, for example, if you want the write-off in 2018, make sure you have the right type of plan in place by Dec. 1st, 2018. Second, you can make the contribution and take the deduction up until April 15th following the year you want the deduction. For example, you can open the account AND make the contribution before April 15, 2019 and get a write-off for 2018.

Dave Anderton is the communications director of the Salt Lake Board of Realtors®. Mark J. Kohler, M.Pr.A., C.P.A., J.D., is a best-selling author; national speaker; radio show host; writer and video personality for Entrepreneur.com; real estate investor; senior partner in the law firm, Kyler, Kohler, Ostermiller & Sorensen, and the accounting firm of Kohler & Eyre, CPAs. Mark is a personal and small business tax and legal expert, who helps clients build and protect wealth through wealth management strategies, and business and tax remedies often overlooked in this challenging, ever-changing economic climate. Visit his website at markjkohler.com.

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What Is RPAC? A five-part series looking at what RPAC does for you.

By Matthew Clewett

S

ince its inception in 1969, RPAC has helped Realtor®-friendly candidates to get elected who in turn help to promote property rights and free enterprise. However, many Realtors® are unaware of what RPAC is and what it does for them in their business.

Throughout this five-part series diving into RPAC, these questions and many others will be answered shedding light on an organization you may have known nothing about.

To start off, the first question that needs to be addressed is the big one: What is RPAC?

The Realtors® Political Action Committee, or

18 | Salt Lake Realtor ® | May 2018

RPAC for short, is the political advocacy wing of Realtors® nationwide. RPAC works year-round to elect candidates who understand and support the interests of Realtors®, advocate for legislation at local, state, and federal levels, and educate members on important issues affecting real property rights and homeownership. Every day, Realtors® from around the country make voluntary contributions to RPAC because they recognize the importance of campaign fundraising and political advocacy in the political process. These contributions are not part of members’ dues and are instead given freely by individual Realtors®.

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Like it or not, politics and government are a big part of the real estate industry. There are thousands of laws and regulations that deal with real property transactions on the books throughout the state and nation. Each year, there are hundreds of new proposals for laws that effect the real estate profession as well; some of these proposals may be beneficial while many more are harmful.

During the election season, thousands of individuals run for public office with the hopes or making a difference. Many of these candidates run on a single-issue platform such as improving education funding or improving transportation.

Others have multifaceted platforms that cover any and all major issues from immigration reform, to the budget, to real estate transaction regulations.

As a Realtor®, you do not have time to look into every bill in the state legislature or United States Congress that touches on your profession nor do you have the time to personally interview candidates running for office on your ballot in November to see what their stances are regarding real property rights. You have a business to run and time is money.

This is where RPAC comes into play. Our professional RPAC advocates in Utah and around the country look into every current and proposed law and take measures to ensure the good ones stay in place or are passed into effect while the bad ones are removed from the books or killed before they

20 | Salt Lake Realtor ® | May 2018

can take effect. RPAC committees comprised of every day Realtors® also interview candidates on the ballot, asking them specific questions relating to our industry, and determine what candidates to support during the election cycle.

The terrific thing about RPAC is that it is always there for you, even when you do not notice it. The organization is out each and every day talking with our elected leaders about issues that are important to Realtors®. They do these things so that you can spend more time investing in your business while helping ordinary Americans achieve the American Dream of home ownership.

In the next part of our five part series, we will be diving into how RPAC determines who to support in elections and who exactly are the people making these decisions (spoiler alert: they are Realtors® just like you!).

For those of you who have donated to RPAC before, thank you for your continued support. For those of you who are new to investing in RPAC, welcome! You are now joining the hundreds of thousands of Realtors® who are investing in the future of the real estate industry by promoting real property rights and free enterprise.

Matt Clewett works in the government affairs department of the Salt Lake Board of Realtors®. He previously worked for U.S. Congressman Rob Bishop and Utah Senate President Wayne Niederhauser.

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S A L T L A K E R E A L T O R SÂŽ P A C Invest In Your Profession Contributions are not deductible for federal income tax purposes. Contributions to RPAC are voluntary and are used for political purposes. The amounts indicated are merely guidelines and you may contribute more or less than the suggested amount. The National Association of Realtors and its state and local associations will not favor or disadvantage any member because of the amount contributed or decision not to contribute. You may refuse to contribute without reprisal. 70% of each contribution is used by your state PAC to support state and local political candidates; 30% is sent to National RPAC to support federal candidates and is charged against your limits under 52 USC 30 30116; after the state PAC reaches its RPAC goal, it may elect to retain your entire contribution for use in supporting state and local candidates. Only personal, not corporate, credit cards may be used, and the charge applied to the account for this contribution must be paid with personal funds of the cardholder making the contribution.

The cardholder further certifies that he/she is 18 years of age and not a foreign national or federal contractor.

©rimon / Adobe Stock

Risky Business The Washington Post recently reported that in fiscal year 2017, $969 million was “diverted or attempted to be diverted” from real estate purchase transactions and wired to “criminally controlled” accounts.

By Sam Silverstein

T

he devastating news hit Memphis, Tenn., real estate professional Pam Beall hard and fast: Her client’s home sale had fallen apart because of a single, devastating email. A few days before the scheduled closing in late December, the buyer had responded to a genuine-looking request to send the full amount of the purchase price—$203,000— to a scammer posing as a rep for the title company.

Now, the money was gone, wired to a bank account controlled by an invisible thief.

The home was soon relisted by another brokerage, but that was the least of Beall’s concerns. The Crye-Leike agent remains shell-

22 | Salt Lake Realtor ® | May 2018

shocked about how the deal was hijacked by a cybercriminal. “That was the last thing I thought would ever happen,” said Beall. “I went into panic mode, and since that day I’ve been warning every buyer and seller I come into contact with” about the risks that come with moving money online.

Money wiring scams are not new to the real estate industry, but their frequency, aggressiveness, and success have spiked in recent years. The Washington Post reported, based on FBI data, that in fiscal year 2017, $969 million was “diverted or attempted to be diverted” from real estate purchase transactions and wired to

“criminally controlled” accounts.

Typically, a cybercriminal will infiltrate an email account of one party in a transaction as a way of collecting details about the deal, then use that information to send bogus instructions to transfer funds that sound believable. Once the money is wired to the thief’s account, recovering it is often impossible.

The FBI’s Internet Crime Complaint Center refers to these scams as business email compromise, or BEC. In real estate transactions, title companies are the primary target, but BEC scammers have targeted all parties in a transaction, including agents, sellers, buyers, and attorneys. In 2016 alone, the number of wire fraud cases reported by title companies jumped 480 percent, according to the FBI. Beall’s brokerage is taking proactive steps to strike back. Crye-Leike, which has more than 3,200 agents working out of 120 offices in nine states across the Southeast and in Puerto Rico, has established a task force of senior executives that springs into action when a scammer strikes, said Steve Brown, the company’s president of residential sales.

In fact, Crye-Leike has become an industry leader of sorts in the way it handles scams. Among the steps the company takes when a suspected cyberattack occurs is contacting the FBI and allowing its computer experts to examine devices that may have handled information pertaining to the deal, Brown said. In addition, Crye-Leike agreed to have the FBI monitor its server traffic for 90 days last year in a proactive move to thwart scammers.

By acting fast, Crye-Leike has had some success in mitigating the damage caused by scammers, sometimes even getting portions of the stolen funds returned, Brown said. But the primary aim is to figure out what went wrong and taking preventive action for the future. “We don’t anticipate getting money back. If we do, that’s just a bonus,” Brown said.

Armed with information from Crye-Leike and the company’s agents, the government has been able to track down suspected cybercriminals operating in Canada, Ghana, and Nigeria and issue warrants for their arrest and extradition, Brown said. This positive development is an important, but still relatively rare, inroad against the legions of scammers who seem to have an upper hand in this vexing battle.

“We focus on educating people about the problem, because it never ends,” Brown said. “We may be taking a few players out of the equation, but we’re just one source” for the FBI.

And wire scams are just one popular fraud.

Another successful tactic cybercriminals employ is spreading software, known as malware, that

allows them to remotely monitor activities on, or even control, another person’s computer or other device. One way they place malware on devices is by convincing people to click on links or attachments in emails that appear to come from a trusted source.

Some 66 percent of malware installed last year arrived via malicious emails, and 95 percent of so-called phishing attacks—which entice email recipients to turn over sensitive information, such as passwords—led to the installation of malicious software, Verizon said. Malware can also make its way onto a computer through web ads that contain infected code.

Pay Attention Considering the stakes in real estate, it’s critical to raise your guard during transactions and take an active role in informing clients about online risks. It’s equally important to pay attention to how you conduct your own operations and interactions with customers.

“If you are engaged online, you have to realize that the data you have is valuable,” said Eva Velasquez, president and CEO of the Identity Theft Resource Center, a nonprofit organization based in San Diego that educates the public about cybercrime. “The optics of a data breach can have a reputational impact, and even be a businessending event.”

Adds cybersecurity expert Adam Levin, co-founder of credit.com and chairman of CyberScout, a Providence, R.I., firm that provides cybersecurity services to businesses and individuals: “No business is too small to become a target of a hacker.”

Scammers exploit the fact that many people do a poor job of protecting themselves online, Velasquez said. A central issue is that many computer users have weak passwords for their email accounts, which has fueled a surge in online crimes that use fraudulent messages to coerce people into divulging sensitive information or, as Beall’s witnessed, sending funds. If even one party to a transaction doesn’t practice what experts call good “online hygiene,” everybody involved is at risk.

About 80 percent of hacking-related breaches last year took advantage of stolen passwords or passwords that were easy to guess, according to the 2017 Data Breach Investigations Report from Verizon.

The human frailties that allow scammers to succeed mean anyone can fall for cyberscams, said Steven J. Spano, president and chief operating officer of the Center for Internet Security, a nonprofit group focused on cyber defense. The tools used for stealing information are easier than ever for scammers to acquire, and online thieves have learned to develop fraudulent

May 2018 | Salt Lake Realtor ® | 23

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emails virtually indistinguishable from legitimate messages, he said. “If you don’t understand that the threats are out there and they’re real, you’ll get sloppy until it happens to you,” Spano said.

great in real estate professionals,” DeRosa said.

“It may be what makes real estate unique—along with having a lot of valuable information—but it also makes us a vulnerable industry.”

Speed Versus Safety

In one case, the chief financial officer of a large corporation nearly authorized a $750,000 transfer to a scammer after receiving what he thought was a legitimate email from the company’s CEO, Spano said. Only after realizing that his boss never signed emails the way the bogus message ended did he halt the payment.

People are naturally inclined to follow instructions from those they trust—or think they should trust—even when a great deal of money is involved, Spano said. That’s why, in real estate, BEC crimes typically hit title companies or mortgage brokers since buyers would expect to receive instructions from those parties about where to direct funds. The peril is compounded by the fact that buyers may be excited about the prospect of closing on a home and feel that if they delay, they could lose out, he added.

As a conscientious real estate professional, you, too, may prioritize speed and agility. Robust security procedures take time to follow, said Chris DeRosa, managing director of financial information systems at the National Association of Realtors®. Hackers may prey on your desire to respond to requests for help quickly, but resist that urge if something seems off. “We trust and we want to help. They’re good traits, and they’re

Target on Your Back Real estate professionals need to remember that they, too—not just their clients—are in the crosshairs of online criminals, said Mary Ellen Seale, a federal government IT veteran who is CEO of the National Cybersecurity Society, based in Washington. “We talk to small businesses, and they say, ‘I’m too small and have nothing to steal.

It will happen to someone else,’ ” Seale said— but that is simply not the case. To the contrary, cybercriminals prey on independent contractors like real estate professionals who typically do not have access to the countermeasures large organizations can marshal, she said.

Among the dangers that small businesses face are ransomware attacks, which involve malware that makes your data unreadable unless you pay the criminal a fee. These kinds of attacks are growing in popularity among hackers, and have become the fifth most common form of malware, according to Verizon. Three years ago, they were at number 22 on the list.

Website hacks that can bombard your visitors with malicious software and subject them to offensive content are also a problem.

The good news is that fending off these threats isn’t as daunting as it sounds, Seale said. Simply making sure that the devices you use—including

24 | Salt Lake Realtor ® | May 2018

computers, mobile devices, routers, and anything else that is linked online—have the latest patches and secure passwords is a good start. “When you get a notice that said you have an update ready, don’t flick it away,” said Levin.

Backing up your data regularly on separate devices is also critical, as is protecting the back end of your website with strong security measures.

On top of the damage caused by hackers, there are potential liability issues for brokers.

NAR’s legal team warns that, when clients fall prey to fraud through phishing, brokers could be legally liable if they failed to provide appropriate warnings. So make it part of your standard operating procedures to apprise clients to be on the lookout for suspicious emails. Cyber insurance can add a layer of protection against damaging consequences. Brokers should examine existing policies to determine what coverage they have for cybercrime events and then check with their insurance provider about whether additional coverage is warranted.

It’s essential for brokers to make cybersecurity central to the way you run your business. Let agents and colleagues know you welcome their efforts to identify vulnerabilities in your systems.

Have a policy that agents need to inform you, without repercussion, about mistakes handling data. Such policies can go a long way toward fostering a sense of trust among everyone who plays a role in your transactions. “Create a culture [built around] cybersecurity,” Velasquez said.

Brown said Crye-Leike has come to terms with the fact that cybercrime is an ever-present danger in real estate, and that the best way to combat the problem is to preach awareness. The company makes it a practice to teach agents that deflecting cybercrime starts with making sure clients understand they will never receive instructions via email to wire funds or to provide private information that could put their money or identity at risk of being stolen. The company asks agents to inform clients that they should verify by phone—using a trusted number, not one in a suspicious email—any such instructions that appear to come from the title company or any other party to the transaction, Brown added.

Agents should get a written acknowledgment that the client understands these instructions.

“Having a document about fraud should be on every agent’s checklist, on both the buy and sell side,” Brown said. “Every agent thinks [cybercrime] ‘won’t happen to me’—and then it happens. You can never keep yourself 100 percent safe, but you can change the odds.”

Reprinted from Realtor® Magazine Online, March 2018, with permission of the National Association of Realtors®. Copyright 2018. All rights reserved.

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The Top 20 dumbest passwords of 2017:

O

ne of the best defenses against hacking is a unique password, but many aren’t heeding the call. Indeed, “123456” and “password” continue to rank as the most-leaked passwords, according to SplashData, a password management firm. “Starwars,” “monkey,” and “iloveyou” are new to the list this year, which is based on millions of stolen logins made public in the past year.

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

123456 (ranked number one last year) Password (also unchanged in ranking) 12345678 qwerty 12345 123456789 letmein 1234567 football iloveyou admin welcome monkey (new to the list) login abc123 starwars (new to the list) 123123 (new to the list) dragon passw0rd master

May 2018 | Salt Lake Realtor ® | 25

Housing Watch The Median Home Price in Salt Lake County Climbs to $340,000

S

alt Lake County home prices continued to surge in the first three months of 2018, according to the Salt Lake Board of Realtors®. The median single-family home price in the first quarter climbed to $340,000, up 13.3 percent compared to the median price of $300,000 in last year’s first quarter.

Salt Lake County’s median home price is the highest ever recorded and is 11 percent higher than the previous peak in home prices, which occurred in the summer of 2007 when the median singlefamily home price reached $306,624 (inflation adjusted dollars).

“Higher home prices are becoming a hurdle for many first-time home buyers,” said Adam Kirkham, president of the Salt Lake Board of Realtors®. “Demand for homes continues to outpace supply.

The shortfall in housing units is likely to continue for several more years.”

A new report by the University of Utah’s Kem C. Gardner Policy Institute said that since 1991 the increase in housing prices in Utah ranked fourth highest in the nation. Population increases and net in-migration are driving home prices and sales higher. The number of existing single-family homes sold in Salt Lake County in the first quarter increased 4.7 percent year-over-year. Condominium sales during the same period jumped 10.9 percent.

Across the Wasatch Front area the median home price in the first quarter increased to $315,000, up 12.5 percent year-over-year. There were 6,072 singlefamily homes sold in the five-county area, up 8.5 percent from 5,592 homes sold during the same quarter last year. The median days a home was listed on the market was 24 days, down from 27 days a year ago.

26 | Salt Lake Realtor ® | May 2018

COUNTY ZIP CITY 2018 HOUSE % +/- 2018 Q1 MEDIAN % +/- 2018 CONDO % +/-

# SOLD CHANGE SALES PRICE CHANGE # SOLD CHANGE

2018 Q1 % +/- CONDO MEDIAN CHANGE SALES PRICE

2018 Q1 % +/AVERAGE CHANGE CDOM

S.L. CO

84006

COPPERTON

3

200.00%

$255,000.00

21.49%

0

n/a

$0.00

n/a

19

375.00%

S.L. CO

84020

DRAPER

141

35.58%

$486,000.00

3.51%

44

-12.00%

$257,500.00

-10.58%

64

-7.25%

S.L. CO

84044

MAGNA

100

11.11%

$226,500.00

13.68%

6

50.00%

$133,500.00

17.67%

32

3.23%

S.L. CO

84047

MIDVALE

57

9.62%

$275,000.00

15.30%

48

2.13%

$222,500.00

-5.92%

27

8.00%

S.L. CO

84065

RIVERTON

158

10.49%

$390,047.00

6.31%

38

-56.82%

$275,000.00

7.79%

49

-30.00%

S.L. CO

84070

SANDY

66

20.00%

$300,750.00

0.62%

21

-25.00%

$207,973.00

16.19%

45

2.27%

S.L. CO

84081

WEST JORDAN

121

17.48%

$354,900.00

10.22%

22

83.33%

$221,250.00

14.64%

29

-6.45%

S.L. CO

84084

WEST JORDAN

99

6.45%

$284,000.00

12.70%

31

-16.22%

$205,000.00

11.41%

32

-13.51%

S.L. CO

84088

WEST JORDAN

97

16.87%

$310,000.00

11.11%

12

-29.41%

$232,000.00

13.17%

35

2.94%

S.L. CO

84091

SANDY

0

n/a

$0.00

n/a

0

n/a

$0.00

n/a

0

n/a

S.L. CO

84092

SANDY

63

-32.98%

$456,400.00

-7.42%

15

400.00%

$360,400.00

-42.52%

125

11.61%

S.L. CO

84093

SANDY

46

-9.80%

$429,000.00

11.43%

2

n/a

$543,500.00

n/a

51

-22.73%

S.L. CO

84094

SANDY

56

-27.27%

$330,000.00

13.79%

7

0.00%

$246,200.00

-3.41%

36

28.57%

S.L. CO

84095

SOUTH JORDAN

102

4.08%

$465,000.00

16.69%

28

-45.10%

$257,500.00

5.10%

65

3.17%

S.L. CO

84096

HERRIMAN

192

23.08%

$385,500.00

9.31%

199

249.12%

$263,105.00

11.02%

54

-6.90%

S.L. CO

84101

SLC

5

150.00%

$326,000.00

128.77%

35

25.00%

$342,500.00

25.80%

91

-6.19%

S.L. CO

84102

SLC

28

33.33%

$440,550.00

31.31%

19

-24.00%

$220,000.00

-4.35%

49

13.95%

S.L. CO

84103

SLC

46

-4.17%

$555,000.00

20.36%

31

34.78%

$256,000.00

39.43%

59

-25.32%

S.L. CO

84104

SLC

50

28.21%

$219,250.00

16.62%

3

-57.14%

$87,550.00

13.70%

27

-27.03%

S.L. CO

84105

SLC

60

0.00%

$419,692.00

11.92%

1

n/a

$442,500.00

n/a

43

13.16%

S.L. CO

84106

SLC

97

-7.62%

$370,000.00

19.35%

30

-21.05%

$229,500.00

24.56%

39

-20.41%

S.L. CO

84107

MURRAY

60

30.43%

$305,000.00

8.73%

48

4.35%

$191,375.00

12.57%

32

10.34%

S.L. CO

84108

SLC

61

45.24%

$600,000.00

19.52%

13

18.18%

$340,000.00

35.73%

60

1.69%

S.L. CO

84109

SLC

75

7.14%

$431,000.00

3.86%

2

-50.00%

$189,500.00

13.13%

70

0.00%

S.L. CO

84111

SLC

18

12.50%

$288,750.00

2.21%

17

21.43%

$259,000.00

7.02%

43

-51.14%

S.L. CO

84115

S SLC

78

16.42%

$270,500.00

11.78%

18

5.88%

$178,200.00

11.17%

36

2.86%

S.L. CO

84116

SLC

64

1.59%

$249,700.00

13.50%

13

-7.14%

$150,000.00

61.29%

23

-4.17%

S.L. CO

84117

HOLLADAY

36

-16.28%

$486,000.00

10.20%

37

12.12%

$219,000.00

5.06%

67

-2.90%

S.L. CO

84118

TAYLORSVILLE/ KEARNS 141

-18.50%

$242,000.00

12.84%

2

100.00%

$179,950.00

-9.98%

31

-11.43%

S.L. CO

84119

WVC

75

-14.77%

$235,000.00

11.64%

38

-17.39%

$177,782.00

11.88%

32

6.67%

S.L. CO

84120

WVC

115

-0.86%

$253,000.00

12.47%

11

-8.33%

$228,000.00

58.33%

30

-28.57%

S.L. CO

84121

COTTONWOOD

105

1.94%

$421,500.00

9.62%

27

3.85%

$229,000.00

-16.04%

71

4.41%

S.L. CO

84123

TAYLORSVILLE/ KEARNS 53

29.27%

$287,000.00

14.80%

37

5.71%

$150,000.00

-0.66%

24

-35.14%

S.L. CO

84124

HOLLADAY

58

20.83%

$501,500.00

14.68%

10

11.11%

$335,500.00

105.95%

58

-1.69%

S.L. CO

84128

WEST VALLEY

69

-12.66%

$280,000.00

19.20%

13

116.67%

$250,000.00

33.37%

35

12.90%

S.L. CO

84129

TAYLORSVILLE

73

-6.41%

$272,000.00

13.38%

11

83.33%

$192,000.00

12.12%

30

-23.08%

S.L. CO TOTALS

2668

4.71%

$340,000.00

13.33%

889

10.85%

$240,000.00

11.32%

46

-8.00%

DAVIS CO 84010

BOUNTIFUL

77

-4.94%

$359,000.00

23.37%

35

40.00%

$217,550.00

40.35%

60

-13.04%

DAVIS CO 84014

CENTERVILLE

27

50.00%

$359,900.00

26.28%

13

-48.00%

$230,000.00

21.76%

46

27.78%

DAVIS CO 84015

CLEARFIELD

246

12.84%

$239,950.00

6.64%

23

43.75%

$156,000.00

21.64%

36

-10.00%

DAVIS CO 84025

FARMINGTON

56

19.15%

$405,000.00

9.46%

12

-52.00%

$258,450.00

19.10%

53

-19.70%

DAVIS CO 84037

KAYSVILLE

78

1.30%

$369,000.00

10.78%

8

33.33%

$189,500.00

-25.83%

46

-32.35%

DAVIS CO 84040

LAYTON

83

10.67%

$350,000.00

16.67%

12

0.00%

$252,450.00

10.72%

57

-12.31%

DAVIS CO 84041

LAYTON

154

7.69%

$253,250.00

15.17%

8

-27.27%

$206,000.00

10.75%

35

-18.60%

DAVIS CO 84054

N. SALT LAKE

65

75.68%

$325,000.00

16.11%

17

-5.56%

$230,000.00

10.26%

41

36.67%

DAVIS CO 84075

SYRACUSE

98

16.67%

$319,250.00

3.48%

2

0.00%

$244,000.00

27.75%

53

-8.62%

DAVIS CO 84087

WOODS CROSS

38

-2.56%

$305,000.00

14.70%

5

0.00%

$257,000.00

13.02%

23

-17.86%

922

12.58%

$297,000.00

10.22%

135

-6.90%

$218,000.00

10.38%

44

-13.73%

DAVIS CO TOTALS

May 2018 | Salt Lake Realtor ® | 27

REALTOR® Connections

On the Move

Jasson Ackett

Wise Choice Real Estate Hires Don Zimmerman

Wise Choice Real Estate announced that Don Zimmerman has joined Wise Choice Real Estate, in the newly created position, as Vice President of Agent Development and as a member of the company’s executive team reporting to CEO Cathy Maxfield. Zimmerman will have oversight of the strategic direction and national expansion of the new Wise Choice Agent Customer Care Concierge, which has been innovated by Wise Choice over the past two years. Zimmerman joins Wise Choice from Realitypath, where he served as Principal Broker during a period of explosive growth. He has served in several different positions in the Salt Lake Board of Realtors® including the Grievance and Education committees, the WFRMLS Regionalization Team, and Activities Committee Chairman for the Utah County Association of Realtors®.

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West Valley City Ranked as Best City for American Dream In its third annual study, SmartAsset looked at measures of housing and opportunity to uncover the best cities for living the American Dream. For the third year in a row, West Valley City took the top spot. It has an unemployment rate of only 2.9 percent. Only 11 other cities in the study had a lower unemployment rate. West Valley City ranked 22nd in economic mobility, putting it in the top 10 percent for that metric. One area for improvement is its diversity score. In that metric, West Valley City ranks 94th out of the 257 total cities analyzed.

28 | Salt Lake Realtor ® | May 2018

Chandler Evans

Windermere Utah Real Estate is pleased to welcome the following new Realtors®: Jasson Ackett (Layton), Deborah Leigh (Park City), Annelise Xiao (Union Park), Steve Ward (Union Park), Chandler Evans (Union Park), and Chelsea Seifers (Sugar House).

Exit Realty Plus Utah welcomes the following new Realtors®: Angie Baumgartner, Austin Lundskog, Becca Johnson, BJ Kiel, Casey Wilson, Cecilia Podrabsky, Cydney Young, Darci Allen, Diana Ramirez, Gates Klingenhofer, Jason Boyce, Jeffrey Farrell, Keira Snyder, Linda Robinson, Miles Ossana, RaNae Morley, Ryan Alleman, Tina Pic, and Femi Collaku.

Smart Asset reported that Summit County had the lowest closing costs as a percentage of median home value among Utah’s 29 counties. The average closing costs in Summit County were $5,164, or 1 percent, on a median home value of $515,500. Wasatch County came in second place with closing costs at 1.2 percent of a home’s value. Salt Lake County ranked No. 4 at 1.5 percent. Statewide, home buyers paid an average of $3,556 on a median home value of $224,600 or 1.6 percent.

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