OC REALTOR®: September/October 2018 by Orange County REALTORS®

WHAT IS PROPOSITION 13 DOING FOR HOMEOWNERS THESE DAYS

MAKING SENSE OF THE ELEVEN PROPOSITIONS ON THE NOV. 6 BALLOT on page 42

on page 16

OCFA, OCSD ANNOUNCE PLAN FOR HELICOPTER OPERATIONS

NO LONGER A SELLER’S MARKET on page 50

SEPTEMBER | OCTOBER 2018

on page 54

Our rebranding effort includes a new logo that is both inclusive and reflective of our members. Find out more on page 10 on page 11

REALTOR® SAFETY ISSUE Although real estate is not generally thought of as a dangerous occupation, it does have some inherent risks. Because September is REALTOR® Safety Month, in this issue we offer some ideas about how you can stay safe, avoid cyber scams, and make your home less vulnerable to wildfires. on page 32

CONTENTS p. 32 SEPTEMBER | OCTOBER 2018

Election 2018 40 Vote 2018: REALTOR®-Friendly Candidates

Includes the names and photos of one candidate for mayor and thirty-three candidates for city council seats in our eleven cities.

42 Real Estate OC: Making Some

Sense of the Eleven Propositions on the Ballot

Tony Capitelli summarizes the eleven propositions on the November ballot and explains why REALTORS® support Proposition 5 and oppose Proposition 10.

Cover Story: REALTOR® Safety

Features

32 13 Ways to Stay Safe

16 P roperty Taxes: What Is

And take the risk out of what can be a dangerous occupation.

36 How to Stay Cyber Safe in the Digital Age

T en tips from the Orange County Sheriff’s Department.

37 Protect Your Home from Wildland Fires

By reducing the fuel available to feed approaching flames.

38 Gadgetry: Apps Designed for Safety and Community Awareness

Albert Ornelas writes about FOREWARN, which minimizes risks, and PulsePoint, which provides up-to-the-minute alerts.

President’s Message 10 President’s Message: The Value of a Name

T ammy Newland-Shishido unveils our new name, logo, and tag line.

12 State Update: Inman Connect, the Real Estate Summit, and REimagine!

Steve White mentions the September Summit and says October is the time to REimagine!

p. 12

Diane Harkey lists the ways in which this forty-year-old proposition continues to benefit all homeowners.

46 C onversations: Bob Wolff’s

Dilemma—To Be a Priest or To Be a REALTOR®

Aaron Rosen interviews the 2015 REALTOR® of the Year, who describes his forty-four years in real estate and reiterates the importance of having a why.

50 The Orange County Housing Update

Steven Thomas says it is no longer a seller’s market.

State Update

p. 10

Proposition 13 Doing for California Homeowners These Days?

p. 16

p. 42

54 Fire Authority and Sheriff’s

Department Announce Joint Air Operations Plan

Sherri Butterfield describes key provisions of the new agreement between these two agencies regarding helicopter use.

56 Volunteers: Celebrating Some of Our Seldom-Sung Heroes

Four REALTOR® who are making a difference in Orange County—and throughout the world.

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CONTENTS

ORANGE COUNTY

® REALTOR MAGAZINE

p. 54

25552 La Paz Road Laguna Hills, CA 92653

10540 Talbert Avenue, Ste. 225 West Fountain Valley, CA 92708

949.586.6800

714.375.9313

www.ocar.org 2018 OFFICERS Tammy Newland-Shishido President Matt Clements President-Elect Adam Rodell Treasurer Craig Borner Immediate Past President Dave Stefanides Chief Executive Officer

2018 BOARD OF DIRECTORS p. 46

Departments 14 Last Chance to Enroll in Our Most Affordable Dues-Payment Option 18

Mentions

Names in the News

Education Central and Calendar: Upcoming Classes by Track

Affiliates in Action: New REALTOR® Orientations

Josh Atwood Mary Jane Cambria Danielle Corliss Sandra Deering Joyce Endo Dorinda Francois Bob Hartman Tim Hayden Len Herman Jenean Hill

Gary Ludwig Charleen Nagata Newhouse Eileen Oldroyd Lacy Robertson Aaron Rosen Jamie Saltman Lisa Schulz Michele Williams Harrington Scott White Bob Wolff

MAGAZINE STAFF Sabrina Blair

Breanna Reed

Director of Communications sabrina@ocar.org

Accounting Assistant breanna@ocar.org

Sherri Butterfield

Albert Ornelas

Communications Specialist sherri@ocar.org

Multimedia Specialist albert@ocar.org

Online Magazine

Love the Orange County REALTOR®? Did you know that you can read it online, anytime? Read past issues at www.ocar.org/magazine.

Mission Statement

The mission of the Orange County REALTORS® is to promote the REALTOR® Code of Ethics; to provide education, services, and resources to our members; and to advocate the protection of real property rights.

Notice to All Members

p. 50

On the Cover Featured on the cover in color is the new logo adopted recently by the Orange County REALTORS® Board of Directors, which carries as its tag line: Association of Professionals.

instagram.com/theocrealtors snapchat.com/add/ocrealtors

It is the long-established policy of this Association, the California Association of REALTORS®, and the National Association of REALTORS® to adhere to both the letter and spirit of the federal and state antitrust laws. For their own protection, members should be aware of the antitrust laws as they affect their specific business activities. Any illegal activity under the state and federal antitrust laws is not in compliance with Association policy, nor is it in the interests of the Association or its members. Participation in Association activities must occur only in harmony with these very important laws. Federal law prohibits discrimination based on race, color, sex, religion, or national origin in connection with the sale or rental of residential real estate, in advertising the sale or rental of housing, in the financing of housing, and the provision of real estate brokerage services. The Orange County REALTOR® editor reserves the right to review and edit all submissions. Orange County REALTORS® makes no warranties and assumes no responsibility for the accuracy of the information contained herein. The opinions expressed in articles are not necessarily the opinions of the Orange County REALTORS®. Orange County REALTORS® does not necessarily endorse the companies, products, or services advertised in this magazine unless specifically stated. The Orange County REALTOR® (USPS 025-445, ISSN 1945-2179) Volume 10, Issue 5, is published by the Orange County REALTORS®, 25552 La Paz Road, Laguna Hills, CA 92653. Periodicals postage paid at Laguna Beach, CA, and additional mailing offices. POSTMASTER: Send address changes to Orange County REALTORS®, 25552 La Paz Road, Laguna Hills, CA 92653-5127. Annual membership dues include $3.13 for a one-year (6 issues) subscription to the Orange County REALTOR® magazine. The Orange County REALTOR® magazine cannot be responsible for unsolicited materials. Publisher: Orange County REALTORS® Printer: The Monaco Group

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PRESIDENT’S MESSAGE

The Value of a Name— Introducing

Orange County REALTORS® Our new name, logo, and tag line better describe who we are, where we live, and what we do.

By Tammy Newland-Shishido 2018 PRESIDENT, ORANGE COUNTY REALTORS®

s you may already be aware, the Orange County REALTORS® Board of Directors voted to change our official name from Orange County Association of REALTORS® —or OCAR, as we often were called—to Orange County REALTORS®. The Directors made this change primarily to emphasize the REALTOR® brand and all of us as members. The National Association of REALTORS® estimates that the REALTOR® brand is worth $6 billion dollars, and we wanted to leverage it. By moving away from an acronym and using a name that places greater emphasis on the word REALTORS®, we will make the community more aware of who we are, where we live, and what we do. We are Orange County REALTORS®!

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Any major change requires time, dedication, and a vetting process. We started this process last year when we heard from branding experts about updating our image, logo, and name. We talked with many other Associations that have gone through rebranding at both the state and the national level. We had a task force whose members debated both sides of making a change and who gave direction to form another task force of leaders who had experience in rebranding. Then, your Directors worked with our Management Team members and marketing consultants to design a new logo that would be both inclusive and reflective of our

Photo: www.istock.com/artisteer

“We are neither OCAR nor OCR; we are Orange County REALTORS®!”

members. We also changed our tag line from “A Step Ahead” to “Association of Professionals” because that is who and what we are. In our new logo, the orange represents the history of Orange County with its orange groves while paying homage to the sun shape that was part of our previous logo. The blue reflects professionalism and represents both the ocean and the sky. The buildings represent the various forms of real estate, including single-family, multi-family, and commercial. These forms move from small to large to signify our

hope for continuing beneficial growth throughout Orange County. Finally, a single line connects all these elements to illustrate how real estate unifies the community. We believe that this new logo says community and that we as REALTORS® are the ones who build communities. We hope you are as excited as we are about the new logo design and our fresh image. These changes were made to better represent and promote us all. We are neither OCAR nor OCR; we are Orange County REALTORS®! OC REALTOR®

Orange County REALTORS® is celebrating 65 years of serving real estate professionals in Orange County. Orange County REALTORS® is the product of various mergers over the years, starting with the South Orange County Association of REALTORS®, which was chartered by the National Association of REALTORS® on June 10, 1953.

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THE STATE UPDATE

Inman Connect, the Real Estate Summit, and REimagine!

C.A.R. Receives Inman Innovator Award

n July, I attended Inman Connect in San Francisco and was proud to be in the audience when the California Association of REALTORS® (C.A.R.) received the top award as an Inman Innovator in the MLS, Association, or Industry Organization category. The annual Inman Innovator Awards honor the creative companies, organizations, and individuals who are pushing the boundaries of the real estate industry and achieving new feats. Inman took special note of C.A.R.’s commitment to help elevate women in the industry with its WomanUP!® Initiative and events promoted through clever use of social media. It also noted the efforts by C.A.R.’s Center for California Real Estate (CCRE) to educate the real estate industry about 12

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the future of housing with livestreamed panels featuring renowned experts who shared their insights. In addition, C.A.R.’s Leslie Appleton-Young and Sara Sutachan received the Nate Ellis Giving Back Award, an honor given to individuals who have been devoted to giving more than they take from the industry. Congratulations to C.A.R., Leslie, and Sara!

CCRE Presents Its Third Real Estate Summit

I hope that by now you are familiar with the CCRE, an institute of the California Association of REALTORS®

OC REALTOR®

Steve White PRESIDENT, CALIFORNIA ASSOCIATION OF REALTORS®

dedicated to advancing housing industry knowledge and innovation among different audiences through roundtables, panel discussions, and summits. In early September, CCRE will present its third Real Estate Summit, a halfday event that will serve as a catalyst for meaningful solutions to California’s housing affordability crisis. This Summit will feature leaders from real estate, finance, academia, public policy, and government agencies.

Article image credited to Scott Chernis/Inman

During July, C.A.R. received multiple awards at Inman Connect. In September, participants in the CCRE’s third Real Estate Summit will discuss future living, ballot initiatives, and the housing supply. And in October, it’s time to REimagine!

THE STATE UPDATE

This is an exclusive opportunity to see moderators such as publishing giant Brad Inman, UC Berkeley’s Terner Center for Housing Innovation Faculty Director Carol Galante, and California Association of REALTORS® CEO Joel Singer ask the hard questions about issues such as future living, ballot initiatives, and housing supply. The Real Estate Summit, which will be held on September 6 at the Intercontinental Hotel, Century City, in Los Angeles, is a must-see for all REALTORS® concerned about the future of housing. It’s a free member benefit, and your ticket will also secure your spot at a lunch session with a keynote speaker. If you can’t attend in person, tune in to the Summit website for instructions about how to access livestream coverage.

REimagine! Is Just Around the Corner

October will be here before you know it. That means REimagine! is just around the corner. REimagine! is the biggest and newest California real estate event, packed with networking, learning, and fun experiences. You’ll ignite your business with powerful takeaways, form meaningful connections with other real estate pros, and gain access to more than two hundred vendors with products to transform your business. Best of all, it’s free! Take advantage of this free member benefit on Wednesday, October 10, and on Thursday, October 11, and help kick it all off at the Party on Tuesday evening, October 9. Agents needing a comprehensive business plan, teams that want to dominate, brokers who are redefining their brokerage, new agents looking to kick-start their career, and anyone looking for an aha moment should register for the REimagine! Pre-conference on Tuesday, October 9. Your Pre-conference pass includes a day of targeted content, two keynote speakers, relationship building at a networking lunch, the Party, and access to all free REimagine! sessions. Register for the Pre-conference and for REimagine! at reimagine.car.org.

This column is based on and has been excerpted from the regular Monthly Message by C.A.R. President Steve White that was distributed via email on July 20, 2018. It is being reprinted here with permission. OC REALTOR®

SEPTEMBER | OCTOBER 2018

MEMBER BENEFITS

LAST CHANCE to Enroll in Our

Most Affordable Dues-Payment Option This offer is available only to REALTOR® members who are paying their full REALTOR® dues and Multiple Listing Service (MLS) fees at Orange County REALTORS®.

Enroll by September 10, 2018, in our automatic monthly payment plan for your 2019

Orange County REALTORS® dues and MLS fees.

The twelve-month payment cycle for your 2019 dues started on August 10, 2018 and ends on July 10, 2019. The catchup payment for September is $180.10. Then the monthly payment amount will be $92.55 for REALTORS®, which includes a $5.00 nonrefundable convenience fee. Payments made from August to December are pre-payments and are refundable if you cancel your membership before January 10, 2019; however, the $5.00 monthly convenience fee is not refundable.

New enrollees may sign up nO nline by going to My Account via www.ocar.org and clicking on the link from the menu to access the enrollment form nO nline by going to www.ocar.org/monthly-pay to download the enrollment form n I n person at one of our two convenient office locations in either Fountain Valley or Laguna Hills

If you already are enrolled in our monthly payment plan, no action is required unless you need to update or change the credit card on file. Please use the enrollment form to notify us of the change.

The annual REALTOR® dues may change. National Association of REALTORS®, California

Association of REALTORS®, and Orange County REALTORS® dues and MLS fees for 2019 will be determined by November 2018. Once that determination has been made, the monthly payment may be changed slightly (up or down) in January to reflect the new total dues amount to be collected by July 10, 2019. If you have signed up for the monthly payment plan, you will be notified in December regarding the amount of the monthly deduction starting in January 2019.

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PROPERTY TAXES

By Diane Harkey MEMBER, BOARD OF EQUALIZATION, FOURTH DISTRICT

What Is Proposition 13 Doing for California Homeowners These Days? At the age of forty, the People’s Initiative to Limit Property Taxation continues to protect both longtime homeowners and recent home purchasers from erratic fluctuations in property tax assessments.

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taxes. Grandparents and retirees were literally being taxed out of their homes. A local Orange County business leader named Howard Jarvis saw this happening across the state and led a bipartisan fight to pass the sweeping tax reform measure known as Proposition 13. In 1978, two-thirds of California voters passed Proposition 13, which reduced property taxes on all property, including both residences and businesses. As a result of the landslide approval of Proposition 13, sweeping changes were made in how properties are taxed. For tax purposes, most

Photos by www.istock.com/Wavebreakmedia

oth Proposition 13 and those it protects are often misunderstood today. Officially named the People’s Initiative to Limit Property Taxation, this proposition protects all property owners, including those who have lived in their homes for many years and those who have recently become homeowners. I understand firsthand the trauma associated with increasing property taxes and how they can impact home affordability. As a young woman, I worked for a major bank in Huntington Beach, where I managed more than one thousand insurance and property tax impound accounts for home loans we serviced. Each year I would reconcile the tax bills received from the county with the estimated taxes collected as part of the homeowner’s monthly mortgage payment. Inevitably, I would have to call homeowners and tell them that they needed to send in additional funds because the assessor had raised the property taxes on their home. This was never a fun conversation, and many homeowners struggled to make the necessary payments. Of course, this was before the passage of Proposition 13. Before Proposition 13 each county could reset property tax rates annually, and even the best-run counties seemed to do so when prices rose. The average property tax rate in California was 2.67 percent. If homes in a neighborhood sold for higher prices, then other nearby homes could be reassessed based on the increased comparable values. Some properties were reassessed in value more than 50 percent in one year! Fluctuating property tax bills made it nearly impossible for people— especially those living on fixed incomes—to pay their property

“Predictable property tax bills have helped many people on fixed incomes stay in their homes and have made it easier for new homeowners to budget for their property tax bills.”

property tax values were rolled back to their 1976 level, the property tax rate was reduced to 1 percent, and future increases were limited. Proposition 13 converted the market value–based tax system to the acquisition value–based system we now enjoy. Unless a property is sold or an improvement is made, the increase in value is no more than 2 percent per year for inflation. Proposition 13 also mandated twothirds voter approval for any specialpurpose taxes or bonds raised by local governments or districts. Since the 1980s, property tax revenues for local governments have been much less volatile than

personal and business income tax revenues. This was highlighted during the recent recession in 2009, when property tax revenue increased by about 4 percent while income tax revenue dropped by nearly 20 percent. Proposition 13 allows for certain and stable income for local governments. Proposition 13, which recently celebrated its forty-year anniversary, continues to protect all California homeowners. Predictable property tax bills have helped many people on fixed incomes stay in their homes and have made it easier for new homeowners to budget for their property tax bills. This key taxpayer

protection has stood the test of time and must remain in place as California continues to grapple with housing inventory and affordability. Diane Harkey represents more than 9.5 million constituents in Southern California as a taxpayer advocate and a constitutionally elected member of the Board of Equalization. She spent six years in the state Assembly and also served as the mayor of Dana Point. Diane can be reached at Diane.Harkey@boe.ca.gov. Sign up for her newsletter at www.boe.ca.gov/Harkey.

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MENTIONS

Thanks for the Humor, Wit, and Clear Understanding Dear Pam, I want to thank you for a terrific and well-presented New REALTOR® Orientation. It was just the right length of time. I was so relieved to have been briefed on so many facets of Orange County REALTORS®, allowing me to zero in on the most important first. Thanks for the humor, wit, and clear understanding. Meg Jedynak Berkshire Hathaway HomeServices California Properties, Laguna Beach Editor’s Note: This handwritten note was addressed to 2018 Chair of the Orange County REALTORS® Education Committee Pam Pedego, who assisted with the New REALTOR® Orientation on Saturday, June 2, at the Laguna Hills office.

I Am So Happy to Be Part of This Association Hi Sandra. Hope you are having a good week! I just joined Orange County REALTORS® yesterday at Fountain Valley, and I wanted to say what a great job you did training Nancy Stressling, Leo Luera, and Michele Barrett! They were kind, helpful, enthusiastic, and fun! I am so happy to be a part of this Association. Thank you for having such a great support team!

Natalie Duthoy Dream Team Homes, Harcourts Prime Properties Editor’s Note: This email was addressed to Orange County REALTORS® Director of Association Services Sandra Lopez.

Thank You for Taking Such Good Care of Us! Dear Alyssa. I wanted to share my good experience and pleasant surprise about the OfficeDepot/OfficeMax discount card with you. We needed some rushy-rush flyer because we had had a crazy-busy open house and had run out of all flyers, so I sent my husband to the OfficeMax store on Crown Valley to run fifty copies. The store copy center representative not only helped him with the process but also asked him if he had the Orange County REALTORS® card, which prompted me to come in and seek it out. On the next print job, I needed one hundred copies, double-sided and in full color. Ordinarily, the cost would have been about $120; but with the discount card, I paid about $48. So the savings was significant! Thank you for taking such good care of us!

Sherry Bahrami

Realty One Group, Mission Viejo Editor’s Note: This email was addressed to Orange County REALTORS® Membership Representative Alyssa Corsini, whose responsibilities include member benefits and the Orange County REALTORS® Affinity Program. 18

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You Inspire Me! Dirissy. You inspire me! I’m not sure how you stay so positive and keep your energy up, but it rubs off on me whenever you are around. Thank you for supporting my efforts to earn a seat on the Orange City Council. It means so much.

Chip Monaco Regional Government Affairs Manager, Waste Management

Editor’s Note: This handwritten note was addressed to Orange County REALTORS® Director of Strategic Partners Dirissy Doan.

CALL FOR MENTIONS Media postings and emails intended for possible publication in this magazine should be sent either to Director of Communications Sabrina Blair at Sabrina@ocar.org or to Writer and Editor Sherri Butterfield at Sherri@ocar.org. All written material may be edited for content, length, or style and may appear either online or in print. Emails become the property of Orange County REALTORS®. Although some may be answered, none will be returned.

Thank You for All the Work that Goes into the Magazine! Some things we just take for granted. Well, that is how it seems to be with OC REALTOR®. But this magazine has had quite a journey to where it is today. Recently, I was speaking to a good friend about the magazine and mentioned that we so look forward to receiving it. It is full of pertinent information and really gives a great representation of how and what our industry and Orange County REALTORS® are doing for their members. I recall the years when the “magazine” was under consideration for ending the publication. You know, we could get the same information “online.” I know this because I was involved at the Board during that time. In addition, the California Association of REALTORS® (C.A.R.) magazine was under discussion as well. “How is this magazine relevant?” was the question. In this time of “Google it” or “go to the website for it,” it’s easy to see how the conversation about the magazine might go. Ultimately, having all these choices is the right answer! I do them all, and you probably do, too. But I must admit that there is something tangible in having that beautiful, high-quality magazine to flip through when I’m having a cup of coffee. Orange County REALTORS® went to work and totally updated the magazine and made it a publication that I personally look forward to getting in the mail. Imagine that: in the mail! I know a lot of work goes into the magazine and would like to give a shout out to Orange County REALTORS® for the hard work it takes to produce this informative magazine. I can’t leave out C.A.R. on this either because our state Association has listened to its members and also publishes an awesome magazine. So thank you for continuing this valuable member benefit and for all the work that goes into the magazine!

Paula Cosenza Casa Bella Realty Group 2004 President, Orange County REALTORS®

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NAMES IN THE NEWS

Southland Candidates Kick Off Their Campaigns Aliso Viejo. In late June, REALTORS® and other friends gathered to help Garrett Dwyer (in the center, wearing a suit and tie) open his headquarters and begin his campaign for a seat on the Aliso Viejo City Council. Garrett and his wife Suzi have been Aliso Viejo residents since 2004.

Dana Point. Mayor Pro Tem Joe Muller (second from left), is seeking a second term on the Dana Point City Council. Joe also serves as vice chair of the Orange County Fire Authority.

Huntington Beach. On June 21, former

49th Congressional District. Helping Diane

Huntington Beach Mayor Barbara Delgleize (fifth from left) and current Huntington Beach Mayor Mike Posey (sixth from left) announced their candidacy for reelection at a reception in the Red Chair Lounge of the Hyatt Regency Huntington Beach. Barbara founded OCAR Cares when she was president of Orange County REALTORS® in 2005.

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Harkey (on the left) kick off her campaign to represent California’s 49th Congressional District are Shannon Readinger, Don Readinger, and Mary Aileen Matheis. Diane is a constitutionally elected member of the Board of Equalization, where she represents the fourth district. She has spent six years in the state Assembly and has served as mayor of Dana Point.

NAMES IN THE NEWS

Photos by Marion Butterfield

Bill Brough Talks with Constituents at District Lunch

On hand in mid-July, when Assemblyman Bill Brough (third from right) met with constituents for a District Lunch were (from left to right) Dana Point Mayor Pro Tem Joe Muller, Mission Viejo Mayor Pro Tem Greg Raths, Laguna Niguel Mayor Pro Tem John Mark Jennings, Aliso Viejo City Council Member Mike Munzing, Jill Scognamiglio, and restauranteur Enzo Scognamiglio, who owns Brio Tuscany Grill in Dana Point, where the lunch was held.

C.A.R. Wins 2018 Royalty Award

Congratulations to the California Association of REALTORS® (C.A.R.) for having been named by the Orange County Taxpayers Association (OCTax) as its 2018 Royalty Award winner. C.A.R. is being recognized for its longtime support of Proposition 13, the People’s Initiative to Limit Property Taxation, and for more recently having qualified for the November ballot Proposition 5, which will allow seniors fifty-five and older to sell one home and buy another while retaining their Proposition 13 tax protections. The

Also attending were Len Herman, Mary Rampone, Scott White, and Jeffrey Jackson. Assemblyman Brough reported that “the big thing going on in Sacramento is an accumulation of tax income. Sacramento does not need the money and does not do what they say they will do when they get it.” When Brough was asked how Orange County REALTORS® might be of help to him in their communities, he responded, “You guys do a great job of supporting me personally and professionally!”

award will be presented on September 28 at OCTax’s eighth annual Roses, Radishes, and the Royalty Awards Dinner, which C.A.R. President Steve White plans to attend.

Congratulations to Mary Visconte

In June, the Lake Forest Chamber of Commerce selected Mary Visconte, owner of Spectrum Specialties and Awards in Lake Forest and the Orange County REALTORS® 2017 Volunteer of the Year, to serve as its first chief executive officer.

Irvine City Council Member Melissa Fox Receives Award

In early August, Irvine City Council Member Melissa Fox received an award on behalf of the Irvine Community Land Trust for the opening of a new affordable housing project in Irvine. The project is Parc Derian, an eighty-unit, 100 percent permanent affordable housing community. Council Member Fox, who chairs the Land Trust, has made creating more affordable housing a priority. Continued on Page 22

This Names in the News column is intended to be primarily a place where Orange County REALTORS® and Affiliate members can share both personal and professional news—about births (of children or grandchildren), graduations, weddings, anniversaries, accomplishments, awards, and other milestones—with one another. If you have news to share, email it to OC REALTOR ® Writer and Editor Sherri Butterfield at Sherri@ocar.org.

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NAMES IN THE NEWS

Continued from Page 21

Dr. Steven Choi Legislative Meet and Greet

2018 President-Elect Matt Clements and 2018 Global Business Alliance Chair Spencer Hoo represented Orange County REALTORS® as co-hosts of the Asian Real Estate Association of America (AREAA) Orange County’s Luxury and International Event on July 18 at the Pelican Hill Resort in Newport Coast.

Attending the Legislative Meet and Greet with Assemblyman Dr. Steven Choi (third from right) on July 19 at Two Left Forks in Irvine were (from left to right) Anaheim City Council Candidate Trevor O’Neil, C.A.R. Key Contact Lisa Yi, Irvine City Council Candidate Carrie O’Malley, Orange City Council Candidate Chip Monaco, and Pacific West Government Affairs Director Tim Shaw, who is a candidate to represent the Fourth District on the Orange County Board of Supervisors.

Heather Stratman Leaves ACC-OC

Mike Balsamo Joins Rancho Mission Viejo

Kate Klimow Chairs Greater Irvine Chamber Board

Eric Morgan Moves from Register to FivePoint

Photo by Marion Butterfield

Orange County REALTORS® Co-Hosts AREAA Luxury Event

Heather Stratman has resigned as chief executive officer of the Association of California Cities–Orange County (ACC-OC). Beginning September 5, retiring Newport Beach City Manager Dave Kiff will lead ACC-OC as interim chief executive officer for three months. ACCOC was founded in 2011 to enhance the quality of life in Orange County by protecting and expanding local control for its cities.

The Greater Irvine Chamber of Commerce has elected Kate Klimow, who is chief administrative officer and director of external relations at UCI Applied Innovation, to chair its 2018–2019 board. Since 2012, Klimow has served the Chamber in several capacities, including chairing the government affairs and programs committees.

Long-time homebuilding executive Mike Balsamo has become chief government relations manager and spokesman for Rancho Mission Viejo, the South Orange County land development firm that built Mission Viejo, Rancho Santa Margarita, Las Flores, and Ladera Ranch. Balsamo replaced Dan Kelly, who retired after thirty years with Rancho Mission Viejo, having served most recently as senior vice president of government relations and corporation communications.

After spending sixteen years in various positions with the Orange County Register and the Southern California News Group, Eric Morgan has left that newspaper to become vice president of community affairs at FivePoint, “a company,” as he wrote in a Facebook post, “with aspirations to create world-class communities across California and a higher standard of living for families like mine.”

Continued on Page 24

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NAMES IN THE NEWS

Continued from Page 22

Photos by Marion Butterfield

Orange County REALTORS® Attend Morning Briefing with Senator Pat Bates

Photo 1: State Senator Pat Bates represents nearly one million people in California’s 36th Senate District. She was the first mayor of Laguna Niguel, has served in the California State Assembly and on the Orange County Board of Supervisors, and is the second woman to be elected Republican leader of the Senate. During her remarks, she said, “California needs to build 100,000 new homes annually just to keep up. Requiring

‘prevailing wage’ added $84,000 to the price of each residential unit. There is a housing bond on the ballot in November (Proposition 1). Keep an eye on both the cost of this bond and what it will produce.” Photo 2: Greeting state Senator Pat Bates following her Morning Breakfast Briefing on July 27 at Villa Roma are Paula and Rick Cosenza.

Continued on Page 26

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NAMES IN THE NEWS

Continued from Page 24

n mid-July, Assemblyman Matt Harper (center) met with constituents at a Meet and Greet event at the Pelican Hill Resort in Newport Coast. Harper, who represents the 74th Assembly District, was introduced by Orange County REALTORS® Treasurer Adam Rodell (on the right). Also attending the event was

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Jeffrey Jackson, who serves on the Orange County REALTORS® Political Affairs and Elections Committee and chaired that committee in 2016. Assemblyman Harper graduated from Huntington Beach High School, earned a degree in Public Policy and Management from the University of Southern California, was elected to the Huntington Beach City Council in 2010, and served as the fifty-ninth mayor of that city before being elected to the state Assembly in 2014. When Assemblyman Harper was asked if the California Environment Quality Act (CEQA) was limiting the housing supply, he replied, “The demand for California real estate has always been high. I’m a big believer in CEQA (which was signed into law by Governor Ronald Reagan). The original intent of that law was that, if you built a large project, like a freeway or a dam, that impacted natural habitat, you had to mitigate the loss by replacing the habitat.” Asked how Orange County REALTORS® could help him in Sacramento, Harper replied, “No group is better at advocating for private property rights than REALTORS®. Keep on doing that. It is so powerful.”

Continued on Page 28

Photo by Marion Butterfield

Matt Harper Answers Questions at Meet and Greet Event

NAMES IN THE NEWS

Continued from Page 26

Friends Gather in Support of Barbara Delgleize Among guests gathering in mid-July at the Huntington Beach home of Council Member Patrick Brenden (fifth from left) and his wife Anto to enjoy Vietnamese cuisine and support the reelection campaign of City Council Member Barbara Delgleize (fourth from left) were (from left to right) Jeff Morin (with AT&T), Lou Penrose, Ron Pascual, Dirissy Doan, Matt Harper, Cori Williams, Vi Mai, and Jeff Snow (with CR&R).

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SEPTEMBER | OCTOBER 2018

Because September is REALTORÂŽ Safety Month, we have devoted a special section in this issue to personal safety, cyber safety, and home protection. Specifically, we describe, how to keep yourself safe when you show and sell real estate, how to avoid becoming the unwitting victim of a cybercrime or scam, and how to make your home less vulnerable to wildfires. In addition, we review two apps that will increase your community awareness and provide you with up-to-the minute alerts from fire and safety services. 32

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www.istockphoto.com/jojje9999

COVER STORY

WAYS TO STAY SAFE By Sherri Butterfield WRITER AND EDITOR

Although real estate is not generally thought of as a dangerous occupation, it does have its risks. REALTORS® sometimes work alone or late, may be asked to drive to remote locations, and often show vacant homes to strangers. Here are thirteen things you can do to stay safe on the job. Always carry your cell phone where it is readily accessible. Do not leave it in the purse you locked in the trunk of your car or stowed out of sight in a kitchen cabinet.

Ask prospective clients to meet you at your office or a neutral location— like a coffee shop. Request photo identification from prospective clients and have them fill out a new client information sheet.

Be aware of your surroundings.

Vet prospective clients.

Preview property before you show it. Familiarize yourself with the layout of the property, including all entrances and exits, and with the neighborhood.

Before establishing a professional relationship, use online resources to check a prospective client’s background, being mindful of criminal, civil, and character issues.

Be careful how you dress.

Implement a buddy system.

Flashy or expensive jewelry may attract the wrong kind of attention. High heels or restrictive clothing could impede your ability to move quickly in an emergency.

Enlist at least five close friends or colleagues on whom you can rely in case of an emergency. Tell them in advance what property you will be showing and trust that they will have your back. Continued on Page 34

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COVER STORY

Continued from Page 33

When showing a property, let potential buyers take the lead while you follow. If there are features you want to call to their attention, do so from the rear, not the front.

Avoid going into walk-in closets or other closed or confined areas with a prospect. Be familiar with all entrances and exits.

Never advertise a property as vacant or show one alone at night.

Before you take clients to see a property, write down the clients’ license plate number and leave it at the front desk. Explain that doing so is office policy; clients who mean no harm won’t mind. And introduce the clients to a colleague or two. If you meet a client outside the office, text this information to a trusted colleague—and make sure that he or she knows your itinerary.

To do so is to invite trouble.

Don’t host an open house alone; take along a colleague. Suggest to home owners that they take breakables off tabletops and secure valuables. And request that pets be housed elsewhere so that they do not become a hazard, a nuisance, or a distraction.

Always take your own car for showings.

While showing a property, keep your hands free.

When you leave your car, lock it. Consider parking along the street instead of in the driveway, where your exit could be blocked.

Do not carry a clipboard, a household pet, or any other object that might interfere with your ability to use your cell phone, discharge your pepper spray, or otherwise defend yourself effectively.

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www.istockphoto.com/panic_attack

Create a paper trail and witnesses.

COVER STORY

HOW TO STAY

CYBER SAFE IN THE DIGITAL AGE

Ten Tips from the Orange County Sheriff’s Department

When sending sensitive documents, use encryption features.

Use strong passwords to accompany your email address for access to important accounts.

These passwords should have at least twelve characters (i.e., numbers, letters, and another type of character).

Avoid over-sharing personal information on social media.

Examples include AxCrypt, BitLocker, GnuPG, 7-Zip, and VeraCrypt.

Never allow an unknown caller to access your computer remotely.

For example, do not announce in advance that you plan to be away from home for an extended period or give the dates and hours of your expected departure and return.

Hang up on callers who offer to reactivate, clean up, clear up, or speed up your computer if given access to it.

Avoid clicking on links in emails or opening questionable emails.

Instead, go to the actual site or cut and paste the link into your browser.

Avoid using public Wi-Fi whenever possible.

Instead, use your cellular data plan.

Do not pay ransom for stolen data or false indiscretions. Always back up your data.

Use a Cloud service, external drive, or memory stick for this purpose.

Update your devices with the latest software.

Most updates are security related.

If you have not done anything wrong and you have backed up your data, don’t worry about it!

Never click on pop-up prompts to change your passwords. Instead, go to the actual site to enter a new password or to change other private or sensitive customer information.

If you believe that you have been the victim of a cyber-related crime, call the Orange County Sheriff’s Department at either 714-647-700 or 949-770-6011. 36

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COVER STORY

PROTECT YOUR FROM

HOME WILDLAND FIRES

www.istockphoto.com/Jorge Villalba

mong the ten worst wildland fires in U.S. history (as listed in June 2016 by the National Fire Protection Association and measured by property loss), one occurred in Florida, one in Minnesota, and one in New Mexico. The other seven burned their way through brush, trees, and homes in California. Low humidity, higher-than-normal temperatures, unrelenting winds, irregular terrain, and tinder-dry vegetation have made much of the Golden State especially vulnerable to the ravages of wildland fires. This year, fire season got off to a frighteningly destructive start. During July and August, the fastmoving Carr fire near Redding charred more than 229,000 acres, and Idyllwild’s Cranston fire consumed 13,000 acres. Parts of Yosemite National Park remained closed through early August while fire crews battled the 96,000-acre Ferguson fire. And the Mendocino Complex fire burned more than 350,000 acres to surpass the 2017 Thomas fire and become the biggest burn in state history. Closer to home, Orange County residents watched anxiously for two weeks as firefighters battled the Holy fire. This blaze, which began in Holy Jim Canyon on August 6, climbed over the Santa Ana Mountains into the foothills above the Riverside County community of Lake Elsinore, burning across 23,000 acres. A ground crew of more than one thousand firefighters was aided in its battle against this stubborn blaze by a relentless aerial assault in which twelve planes and fourteen helicopters pounded the flames with both retardant and water.

Create a defensible space. Fires need three

things to burn: heat, oxygen, and fuel. Thus, preventing fires—or minimizing their damage—involves controlling at least one of these elements. While you have little control over either air temperature or oxygen, you can clean up your property and modify your landscaping to

By reducing or eliminating the fuel available to an approaching fire, you can increase the chance that your home will survive. By Sherri Butterfield WRITER AND EDITOR

reduce the amount of fuel that is available to feed approaching flames. In January 2005, a new state law extended the defensible space clearance around homes and structures from thirty feet to one hundred feet. Proper clearance to one hundred feet provides for firefighter safety when protecting homes and dramatically increases the chance that a home will survive during a wildland fire. If you have not prepared your property to better withstand fire’s challenge, now is the time to do so.

Remove loose debris. Remove all dead plants, grass, and

weeds. Rake up dry leaves and needles that have fallen from trees. Check your home’s roof, rain gutters, and balconies, and remove any leaves, needles, or other debris that has collected there.

Evaluate your landscaping. Remove plants that have peeling bark, needle-like leaves, are tight branching, or contain oils or resins. As replacements, select varieties that are drought-tolerant and less flammable. When you replant, increase horizontal spacing, especially between shrubs and trees, so that shrubs do not act as a vertical fire ladder. Thin and trim trees. Have dead trees and tree limbs removed. Pay special attention to palm trees and pine trees. Trim palm trees to remove all dead fronds. If pines are brown, cut them down. Keep tree branches ten feet away from your chimney and from other trees.

Harden your home. As you remodel and replace, think in terms

of increasing your home’s resistance to fire. All building materials will burn, but some burn at much higher temperatures than others and so can resist the heat of approaching flames much longer. Give yourself—and your home—the benefit of this resistance. When you reroof your home or recover your patio, use noncombustible materials. When you replace single-paned windows, use dual-paned windows made of tempered glass. And because embers from a large fire have been known to travel as far as five blocks, prevent them from entering your home by boxing in your eaves and making sure that the mesh screening on your vents is in good condition. OC REALTOR®

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TWO APPS DESIGNED TO IMPROVE

PERSONAL SAFETY AND INCREASE COMMUNITY AWARENESS FOREWARN makes available client information to minimize personal risk, and PulsePoint provides up-to-the-minute alerts from fire and safety services or local residents. By Albert Ornelas DIGITAL MEDIA SPECIALIST

s a REALTOR®, you sometimes work alone, show vacant property to clients whom you don’t really know, and venture into neighborhoods with which you are unfamiliar. Now, there’s an app—or two—for that! These apps can provide summary information about prospective clients and make you more aware of neighborhood activity.

REALTORS® are probably most vulnerable when they are walking a would-be buyer through a listed property. Frequently, they do so alone and with very little knowledge about their prospective client, in part because many of today’s buyers research property online and are not initially represented by an agent. FOREWARN was designed especially for use by the real estate industry. It provides direct access to instant information about a client even before the agent and client meet. This app leverages massive data resources and complex analytics to give real estate agents quick access to accurate information. Using only the incoming phone number, FOREWARN can positively identify more than 80 percent of prospective buyers. After installing the app and signing up for a monthly subscription at the FOREWARN website, agents can reverse incoming calls to identify a prospect, verify current property and vehicle ownership, search for a history of criminal activity, determine whether there have been past bankruptcies or whether current bankruptcies or liens exist, and estimate the prospect’s assets. Real estate agents need to know with whom they are doing business. Agents and brokerages allocate thousands of dollars to research hundreds of inquiries each month. With the FOREWARN app, they no longer need to do so because, when coupled with a smartphone, FOREWARN puts a data verification system in the palm of an agent’s hand. The FOREWARN app can be downloaded free at the Apple App Store. It requires iOS 9.0 or later and is compatible with iPhone, iPad, and iPod touch. Agents need a FOREWARN account to search for information and receive results. Subscription costs begin at about $20 for individuals. For additional information about the FOREWARN app, visit www.forewarn.com.

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An App for Personal Safety

An App for Community Awareness

Although REALTORS make it their business to know their communities, they may be unfamiliar with any particular neighborhood. With the increasingly popular PulsePoint app, REALTORS® can be informed about emergency activity in real time in any community they visit and have access to all incidents, whether a police assist, an overdose, or an even a more immediate threat. The PulsePoint app is easy to upload to a smartphone and receives event-driven updates regarding police activity, medical emergencies, fire department events, and requests for citizenassisted cardio-pulmonary resuscitation (CPR) in instances of sudden cardiac arrest. Users can choose to display all incident types or only specific ones. REALTORS® can use this information for themselves or pass it along to their clients. PulsePoint was created by Richard Price, who explains that the idea for this application came to him in 2010, when he was serving as fire chief in the San Ramon Valley. While he was having lunch at a restaurant, he heard sirens and saw one of his own engines pull up in front of the same restaurant. It turned out that someone next door had collapsed and gone into cardiac arrest. Price was CPR-certified and carried a defibrillator in his car; but because he was the department chief, he was not dispatched to the call and did not know about it at the time. This incident left Price wondering if there might be a way to alert civilians who were trained to provide immediate help in the event of a similar nearby emergency. The American Heart Association estimates that 383,000 out-of-hospital cardiac arrests occur each ®

year in the United States. Price’s goal was to increase the likelihood that a victim in cardiac arrest would receive CPR quickly. In 2012, Price’s invention, the PulsePoint CPR/AED notification app, earned for him both the American Heart Association Heart of Gold Award and the Journal of Emergency Medical Services’ EMS10 Innovator of the Year Award. Today, through the use of modern, location-aware mobile devices, PulsePoint is building applications that work with local public safety agencies to improve communications with citizens and off-duty personnel as a way of empowering them to help reduce the estimated one million worldwide deaths annually from sudden cardiac arrest. Price is president of the PulsePoint Foundation, a 501(c)3 nonprofit organization based in the San Francisco Bay Area, whose primary goal is to make it easier for citizens who are trained in CPR to use their life-saving skills to save lives. This foundation accepts donations to expand the availability of this life-saving application. The PulsePoint app is free and is available for both the Apple iOS and Android smartphones. For more information about the PulsePoint app, visit www.pulsepoint.com.

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Although Orange County REALTORS® does not endorse candidates for elected office, its Political Affairs and Elections Committee does identify candidates whose positions on real estate–related issues qualify them as REALTOR® friendly.

GOVERNMENT TAKES A STRONG INTEREST IN REAL ESTATE.

lected officials at the city, state, and national level make decisions about real estate that range from the mundane to the monumental and include open house sign size and placement, land use and zoning, business licensing requirements, point-of-sale mandates, property tax assessments, lending practices, mortgage interest rates, and the mortgage interest deduction. Thus, electing and reelecting candidates who are friendly to REALTORS® is an important means of protecting your business.

IF REAL ESTATE IS YOUR PROFESSION, THEN POLITICS IS YOUR BUSINESS. The Political Affairs and Elections Committee (PAEC) is a standing committee of Orange County REALTORS®. Each member of this committee represents a specific city or supervisorial district. Every two years, PAEC trustees conduct interviews with political candidates. Based on these interviews— and on a questionnaire that each new candidate is asked to fill out—the trustees identify candidates who support the ideals of private property rights, free enterprise, and responsible government.

REGISTER AND VOTE. PAEC trustees encourage all members of Orange County REALTORS® to read the Candidates’ Statements of Qualifications in the Official Voter Information Guide and to consult other similar sources to gain a better understanding of the men and women who are running for office, to familiarize themselves with the REALTOR®-friendly candidates who are featured here, and to vote for the kind of good governance that will encourage a dynamic real estate market capable of bringing continued economic stability to both the state and the nation and of making the dream of home ownership come true for a greater percentage of Americans.

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DANA POINT

ALISO VIEJO

GARRETT DWYER

DAVID HARRINGTON**

JOE MULLER**

RICHARD VICZOREK**

JAMEY FEDERICO

District 1

District 2

District 3

HUNTINGTON BEACH

FOUNTAIN VALLEY

MICHAEL VO**

PATRICK HARPER

GLENN GRANDIS

IRVINE - for Mayor

DON WAGNER**

BARBARA DELGLEIZE**

MIKE POSEY**

LEN HERMAN

ANTHONY KUO

LAUREN JOHNSON-NORRIS

CARRIE O’MALLEY

LAGUNA NIGUEL

DAVID ROBBINS

FRED MINAGAR**

MARK JONES

District 2

SCOTT VOIGHTS**

WENDY BUCKNUM**

SANDY RAINS

ED SACHS**

GREG RATHS**

District 3

RANCHO SANTA MARGARITA

JERRY HOLLOWAY**

ELAINE GENNAWAY**

MISSION VIEJO

LAKE FOREST

NEEKI MOATAZEDI

ERIK PETERSON**

IRVINE - for City Council

LAGUNA HILLS

DON SEDGWICK**

BILLY O’CONNELL**

BRAD MCGIRR**

ANNE FIGUEROA

SAN JUAN CAPISTRANO

TROY BOURNE

DEREK REEVE**

JOHN TAYLOR

District 2

District 3

District 4

*Orange County REALTORS® does not endorse candidates for political office. **INCUMBENT

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REAL ESTATE OC

Now that the California Supreme Court has blocked Proposition 9, the Three Californias Initiative, eleven propositions remain on the November ballot. Among them, Orange County REALTORS® supports Proposition 5 (Property Tax Transfer) and opposes Proposition 10 (Local Rent Control).

Proposition 1 (Housing Bond) is a $4 billion general obligation bond that would fund various housing-related programs and projects, and housing loans for veterans.

By Tony Capitelli DIRECTOR OF GOVERNMENT AFFAIRS

Supporters: Democratic members of the state Assembly and Senate, California Housing Partnership Corporation, Chan Zuckerberg Advocacy, Various Nonprofit Housing Organizations Opponents: Howard Jarvis Taxpayers Association

Municipal Bonds: from the California State Treasurer

Proposition 2 (Millionaire Mental Health Tax Reallocation)

Q. What is a municipal bond? A. A bond is a loan. There are many types of municipal bonds, but they have only one purpose—to borrow money. It involves a promise to pay money, with interest, on a specified date. General Obligation Bonds enjoy the “full faith and credit” of California. California currently has $74.9 billion in outstanding issued general obligation bonds, and $24.6 billion in general obligation bonds authorized but not yet issued.

would allow the state to use funds from Proposition 63 (passed in 2004) for homelessness prevention housing for those in need of mental health services. This 1 percent tax on those making at least $1 million cannot currently be used for housing.

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Supporters: California State Association of Counties, League of California Cities, Sen. Kevin De Leon, Various Nonprofit Housing Organizations Opponents: National Alliance on Mental Illness (NAMI) Contra Costa

REAL ESTATE OC

Proposition 3 (Water Bond) is a $8.877 billion general obligation bond to fund various infrastructure projects related to water. These include storage, environmental protection, and dam repairs. Supporters: Sen. Dianne Feinstein, John Cox, Agricultural Council of California, Irvine Ranch Water District, California Chamber of Commerce Opponents: None on record

Proposition 4 (Children’s Hospital Bond) is a $1.5 billion general obligation bond to fund construction, expansion, renovation, and equipping of qualifying children’s hospitals. Supporters: California Hospital Association, California Teachers Association, Los Angeles Chamber of Commerce, California Democratic Party Opponents: Howard Jarvis Taxpayers Association

Proposition 5 (Property Tax Transfer) is an initiative sponsored by the California Association of REALTORS® (C.A.R.). California is experiencing a housing affordability crisis. Only 21 percent of Orange County residents can afford a median-priced home. One factor contributing to this crisis is the fact that people are remaining in their homes much longer. For example, in Orange County, people are living in their homes an average of twenty-three years. One of the obstacles to moving is that the property tax basis of a new home undoubtedly will be much higher than that of a current home. For property owners fifty-five years of age and over, Proposition 5 is the solution to this problem. It would allow them to transfer their property tax basis to a new home of equal or lesser value. If the new property is of greater value, the transfer would result in a blended basis. The number of such transfers would be unlimited. Although the provisions of this measure apply to homeowners who are fifty-five years old and older, C.A.R. believes that its passage would encourage some older folks to move, thereby freeing up much-needed housing stock for younger generations. Supporters: California Association of REALTORS® (Author), California Chamber of Commerce, Homeownership for Families and Tax Savings for Seniors, Howard Jarvis Taxpayers Association, Association of California Cities Orange County, Orange County Business Council. Opponents: California Teachers Association, YIMBY Action Continued on Page 44

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REAL ESTATE OC

Continued from Page 43

Proposition 6 (Gas Tax Repeal) would repeal the 2017 tax on gas and vehicle registration. The funds from these taxes and fees are specifically designated for repairs and improvements to local roads, state highways, and public transportation. Supporters: Rep. Mimi Walters, Rep. Kevin McCarthy, Rep. Paul Ryan, John Cox, California Republican Party, Howard Jarvis Taxpayers Association, National Federation of Independent Businesses Opponents: California Chamber of Commerce, Gov. Jerry Brown, Orange County Business Council, California Alliance of Jobs, Southern California Partnership for Jobs, League of California Cities, California Association of Counties, California Transit Association, California Hispanic Chamber of Commerce

Proposition 7 (Permanent Daylight Savings Possibility) would allow the California State Legislature to establish a permanent daylight savings time by a two-thirds vote if this change is permitted by the federal government. Various members of the state Legislature support and oppose this measure.

Proposition 8 (Limits of Dialysis Clinics Revenue) would limit the amounts outpatient kidney dialysis clinics may charge for patient care and impose penalties for excessive charges. Requires annual reporting to the state regarding clinic costs, patient charges, and revenue. Prohibits clinics from discriminating against patients based on the source of payment for care. Supporters: Californians for Kidney Patient Protection, SEIU–United Healthcare Workers West, CalPERS Opponents: California Dialysis Council, California Medical Association, National Kidney Foundation, California Chamber of Commerce, numerous regional Chambers of Commerce, American Nurses Association

Proposition 10 (Local Rent Control) would repeal the Costa-Hawkins Act. The Costa Hawkins Act prohibits local jurisdictions from implementing rent control on single-family homes and new development. Repealing this Act would allow local jurisdictions to impose rent control in these instances. California is experiencing a housing affordability crisis. Those concerned with this crisis often

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look toward top-down government solutions like rent control. Unfortunately, history has shown that rent control simply worsens the problem. Rent control discourages investment, meaning much-needed new housing is more difficult to build, and current housing stock is not well maintained. Rent control also reduces the amount of available inventory because tenants are unlikely to leave rent-controlled units. Supporters: Coalition for Affordable Housing, California Democratic Party, AFSCME California PEOPLE, California Nurses Association, California Teachers Association, SEIU California Opponents: California Republican Party; Californians for Responsible Housing; Sponsored by the California Apartment Association, No on Prop 10—A Flawed Initiative That Will Make the Housing Crisis Worse; a Coalition of Housing Advocates, Renters, Large and Small Businesses, Taxpayer Groups, and Veterans; Californians for Affordable Housing, No on Proposition 10, Sponsored by the California Rental Housing Association

Proposition 11 (Ambulance Employee Exemption) makes the labor law that entitles hourly employees to take work (meal and rest) breaks without being on call inapplicable to private-sector emergency ambulance employees. Also removes some employer liability and adds employer requirements. Supporters: California Ambulance Association, American Medical Response, Californians for Emergency Preparedness and Safety Opponents: California Teachers Association

Proposition 12 (Farm Animal Confinement) prohibits certain commercial sales of specified meat and egg products from animals confined in noncomplying manner. Supporters: Prevent Cruelty California, The Humane Society of the United States, National Consumers League, Center for Food Safety, Animal Legal Defense Fund Opponents: Association of California Egg Farmers, National Pork Producers Council, People for the Ethical Treatment of Animals, Humane Farming Association

CONVERSATIONS

Bob Wolff’s Dilemma:

By Aaron Rosen

ARC 23 INSURANCE

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To Be a Priest or to Be a REALTOR® The 2015 REALTOR® of the Year talks about his forty-four years in real estate, suggests that there may not be much difference between being a priest and being a REALTOR®, and reiterates the importance of having a why.

Why did you decide to become a REALTOR®?

When I was in my early twenties, the Airforce gave me an aptitude test which showed that I was perfectly suited either to sell real estate or to become a priest. After I was discharged from the service, I got a job with a title insurance company. For a year, I sold title insurance to real estate agents. I saw what the good real estate agents were making, and I saw what the not-so-good agents were making. I thought to myself, “I can do that.” I got my real estate license. There’s really not a lot of difference between being a priest and being a REALTOR® —except for the money.

How long have you been a REALTOR®? About eleven months into my title insurance job, I worked very, very hard to break into one account. I finally got a title order from this real estate company. Then, my boss told me she was too busy to process it in a timely manner so I quit. I had my real estate license, and I went to work for Moore and Company in Colorado. I was twenty-two years old. This is my forty-fourth year in the real estate business, but that’s how it started.

What is the best advice you ever received?

The best advice I ever received was to have a dream that would drive me to do the things that were necessary to be a success. There is no free lunch, and there are no shortcuts. If you are not successful right away, don’t give up on the dream. And don’t give up on what it is you’re supposed to do.

What is the biggest mistake you made and what did you learn from it?

One of the biggest mistakes I’ve ever made in forty-four years of being a real estate agent was not following my gut. I got involved in a transaction that just felt wrong. I closed the deal. I earned the commission. But it just

didn’t feel right, and it came back later to bite me in the butt. Follow your heart and do what’s right. I took a shortcut, and I should not have done so. It was a great life lesson.

What are your biggest successes?

I have a thirty-seven-year-old son who can still tell me that he loves me, and I can still tell him that I love him. I had prostate cancer when I was fifty years old and survived. Orange County REALTORS® recognized me as its REALTOR® of the Year for 2015. I have had the opportunity to travel all over the world to speak and make presentations. I was privileged to be a Senior Certified Residential Specialist instructor for the National Association of REALTORS®. I’ve had a good life and am in good health. I play tennis three days a week, I laugh hard, I work a lot. Money makes the ride a little easier; however, in the end, it’s not about the money.

Knowing what you know now, what advice would you give yourself as a brand new agent?

Have a mentor and a plan. Know what your why is. Write down your goals and regularly measure yourself against them. Hold yourself accountable. Are you on the right path? Continued on Page 48

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CONVERSATIONS

Continued from Page 47

I’ve been writing down my goals for forty years. I still have my first goals from 1977, and there were only five of them. Today, my goals fill one and one-half pages of a legal tablet. I’ve had goals from learning to fly an airplane to learning to play tennis to learning to dance. I can tell you if I’m going to buy a car this year, how many suits I’m going to purchase, how much money I’m going to put in savings. I have it all written down. It’s like my GPS.

What is the most unusual property you ever sold, and how did you sell it?

In the mid-1970s, When I was in Fort Collins, Colorado, I sold a house for $550,000. At that time, the average sales price in the area was around $70,000 to $75,000. The house belonged to a friend of mine and was gorgeous—ten acres, a pool, and horses. How did I sell it? I think I prayed a lot. A commodities dealer came along. I believe he was eventually indicted by the federal government, but he was in business long enough to be able to buy that house. In California, I’ve had fun selling houses for congressmen, actors, and athletes. I’ve sold a lot of houses for hockey players. I go to a lot of hockey games, but I don’t know anything about hockey. And I don’t ask for tickets, sticks, or pucks. I’ve developed some great relationships with professional athletes, and I don’t know a thing about sports. Not a thing!

Do you ever wish you had taken a different career path?

I’ve often thought about what my career might have been like if I had been a lawyer and a litigator. I think I would’ve been a very persuasive litigator; but to be blunt, I love what I do. I have a very, very good income. I’m sixty-six years old, and I still get up every morning at 4:15. Every day is different. I can’t think of anything I would rather do.

What do you do for fun?

I think a lot of people still believe I work twenty-four hours a day, seven days a

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week because I did for a long time. I own a motorcycle. I go for a motorcycle ride almost every Sunday. I own an airplane. I keep it at the Orange County airport. I try to fly at least once a week. I have a home in the desert. I have a few cars that I enjoy. I play tennis three days a week. Last year, I went to Australia, Iceland, New Zealand, and South Africa. Most of the business I do is within five miles of my office. Ninety-nine percent of my business is repeat customers. I don’t do open houses personally any more. I don’t mail to anybody I don’t know. I do have a little bit of time off, but I don’t tell many people that. The other part of the answer is when I do travel, I take and return phone calls. Ninety-eight percent of the people that I am working with while I’m gone never know that I’m gone. I’ve always made it a practice to return my calls, and it has served me well. I might end up spending $1,000 in phone calls on a trip, but I also might make up to $100,000 in commissions while I’m gone. As you know, real estate can be extremely stressful. If you keep it light, put some humor in the deal, you’re going to have a lot more fun. You’re going to live longer. People want to be with professional men and women who look the part, act the part, think the part, and have some humor in their life. Clients want competence, they want knowledge, they want to be told the truth, they want us to help them; but you can have some fun along the way. Make it fun and never take yourself too seriously! Aaron Rosen serves on the Board of Directors for Orange County REALTORS® and was named 2016 South Affiliate of the Year. He is a member of the Education Committee and of the OCAR Cares Committee and is very involved with both the OCAR Cares Golf Tournament and the Costume Bowl. Aaron is a multiline insurance advisor with Arc 23 Insurance Services. His email address is aaron@arc23insurance.com.

THE ORANGE COUNTY HOUSING UPDATE

No Longer a Seller’s Market

or six and one-half months, the Orange County Housing Market has favored sellers. With tremendous demand and very few homes on the market, buyers could not get a break. But that has changed. By Steven Thomas REPORTSONHOUSING.COM More homes are coming on the market, and demand is dropping. The old-fashioned balance scale has tipped from a hot seller’s market to a balanced market, one that does not favor either sellers or buyers.

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Since 2012, everyone has been talking about not enough homes on the market. This lack of supply has fueled a frenzied real estate market, that is, until 2018. Now, the supply problem has evolved into a demand problem. Although the supply of homes has increased quite a bit this year, it remains below the long-term average of 8,000 homes. The real issue is not that there are way too many homes on the market, as in prior slowdowns; instead, it is that housing demand has dropped precipitously. Demand, a snapshot of the last month of pending sales, has been down all year, especially from mid-April through August (see Figure 1). Surprisingly, that is the meat of the housing market, the Spring and Summer Markets. In taking a closer look at demand at the end of July, the

www.istockphoto.com/KatarzynaBialasiewicz (Background photo)

Because more homes are being offered for sale and demand is dropping, the Orange County housing market is becoming more balanced.

Figure 1. Supply is no longer a problem in the Orange County Housing Market. In late July, the supply was 13 percent higher than it had been at the same time in 2017.

Figure 2. The problem in today’s Orange County Housing Market is demand—or lack of it. At the end of July, housing demand was 18 percent lower than it had been at the same time in 2017.

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numbers are staggering (see Figure 2). Demand was 18 percent higher last year. The last time demand was this low was in 2007, when the housing market completely fell apart. It is interesting to look at these differences in the context of the mortgage interest rate at the time. Today’s national average interest rate is 4.6 percent, the highest rate since 2011 (see Figure 3). The housing run from 2012 through the first four months of 2018 has been fueled not only by an extremely low supply of homes on the market but also by ultra-low interest rates. Mortgage rates have been juicing the run-up in values. The only other time that housing slowed a bit during the run was at the end of 2013 through 2014. At that time, the culprit was higher interest rates. In December 2013, interest rates climbed to 4.5 percent, and they remained elevated through the Spring Market of 2014. Home values have appreciated unabated, and the June median sales price reached a record of $739,000. When record high housing values are combined with interest rates that have climbed to heights not seen since 2011, it is no wonder that buyers are no longer as eager to purchase as they once were. None of this means that the current market favors buyers. It is still a slight seller’s market. The Expected Market Time (the amount of time it would take to place a home on the market today and enter escrow down the road) at the end of July reached 88 days, knocking on the door of a balanced market. A seller’s market is hot when it is below 60 days. It is a slight seller’s market from Continued on Page 52

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THE ORANGE COUNTY HOUSING UPDATE

Continued from Page 51

Figure 3. Today’s high interest rates are taking a toll on demand. At 4.6 percent, the national average interest rate is the highest it has been since 2011. When record high housing values are combined with interest rates that are higher than they have been in seven years, it is no wonder that buyers are not as eager to purchase as they once were. 60 to 90 days. It is a balanced market from 90 to 120 days. Above 120 days, it is a buyer’s market. Many mistakenly think that the market must favor either sellers or buyers. That is not true. A balanced market is one that does not favor either buyer or seller. It is like the metal scale when it is perfectly balanced. The supply is 13 percent higher year-over-year, and demand is down by 16 percent year-over-year. More supply and less demand are balancing the scale. Warning to Buyers: Buyers are not in the driver’s seat, not even close. It is not a buyer’s market. The difference is that there are more choices now. The typical home is no longer flying off the market. Only extraordinary homes that are priced right will sell quickly. Buyers no longer need to trip over themselves to purchase. They are

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finally able to approach the market methodically and at a much more relaxed pace. Warning to Sellers: Accurate pricing is essential to find success. Ignore the recent headlines about a record median sales price. That does not mean that homes are continuing to appreciate today. The June median is a reflection of homes that were placed into escrow in April and May. That was in the past, when the market was much hotter than it is today. Right now, there are a lot more homes on the market, meaning there is a lot more competition. Also, demand has dropped considerably, meaning that there are fewer showings and fewer potential offers. Overpriced, overzealous list prices result in wasted market time and do not generate offers. Pricing at or close to the Fair Market Value is the wisest formula for success. Steven Thomas has a degree in quantitative economics and decision sciences from the University of California, San Diego, and more than twenty years of experience in real estate. His bimonthly Orange County Housing Report is available by subscription and provides housing market analysis that is easy to understand and useful in setting the expectations of both buyers and sellers. His website is www.ReportsOnHousing.com.

PUBLIC SAFETY

Fire Authority and Sheriff’s Department Announce Plan for Joint Air Operations An agreement reached between the two agencies in early August separately assigns primary responsibility for fire missions, ground-based emergency medical calls, search and rescue operations, and rescues involving possible criminal activity. By Sherri Butterfield

WRITER AND EDITOR

In June, the Orange County Grand Jury issued a 32page report that was critical of both agencies. Titled

Among those attending the press conference at which the agreement was announced were (from left to right) Orange County Supervisor Todd Spitzer, Orange County Supervisor Lisa Bartlett, Orange County Sheriff Sandra Hutchens, Orange County Fire Authority Board Chair and Mission Viejo Mayor Ed Sachs, and Orange County Fire Authority Chief Brian Fennessy.

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Competition or Collaboration: Orange County’s Public Agency Helicopters, this report found that, “while responding to search and rescue events, Orange County Sheriff’s Department and Orange County Fire Authority helicopters have flown too close to each other without adequate communication or coordination, which behavior could result in safety issues.” Clearly, when the actions of Orange County’s two premier public safety agencies are perceived as delaying a response or doing something that “could result in safety issues,” something needs to be done. In this instance, that something was to create an Operating

Photos by Marion Butterfield

ecent newspaper headlines have carried the disturbing news of a rivalry between the Orange County Fire Authority (OCFA) and the Orange County Sheriff’s Department (OCSD) over whose helicopter should rescue which victim under what circumstances. In some instances, both OCFA and OCFD helicopters have responded to the same emergency call. In other instances, confusion over which agency should respond may have delayed the rescue and transport of a victim.

Plan for OCSD/OCFA Air Support Unit and Air Operations. This joint air operations plan was unveiled at a press conference on August 15, where the emphasis was once again on communication, collaboration, and cooperation. “If you or a loved one is in need of help and you call 911 for a public safety professional, you don’t care what color uniform that person is wearing when they arrive or what words are painted on the body of the helicopter when you are lifted in it for lifesaving medical care,” explained Sheriff Sandra Hutchens. “You care how quickly we arrive and that we are qualified.” “Today is an important day because it marks the beginning of a renewed partnership,” said Orange County Fire Authority Chief Brian Fennessy. As evidence of this renewed partnership, he cited the fact that helicopters from the Sheriff’s Department were part of a massive aerial assault on the Holy

fire, the blaze that charred more than 23,000 acres in Orange and Riverside Counties, and assisted the Fire Authority by dropping water on those flames. The new Operating Plan states that “the Sheriff is authorized to search for and rescue persons who are lost or are in danger of their lives within or in the immediate vicinity of the County of Orange,” that “the OCFA is primary for fire missions and ground-based emergency medical calls for service that occur on paved highway or paved road suitable for vehicular traffic,” and that “the OCSD is primary for rescues requiring further investigation due to possible criminal activity.” As a part of this new plan, the two agencies will work toward immediately integrating dispatch, standardizing incident communications such as radio frequencies and terminology, and training together. Longer-term goals include possible co-location

of resources, equipment, and personnel and integration of some business systems. Signed by both Sheriff Hutchens and Chief Fennessy in early August, the plan will be updated annually, or “more frequently as needed, to provide operational guidelines to Air Operations and Support Unit personnel, Incident Commanders, and rescue personnel.” Among those applauding the agreement reached between the two agencies was Orange County Supervisor Todd Spitzer, who remarked, “We cannot afford in Orange County to have our guns and our hoses fighting each other.” “It was a long and winding road to this agreement,” said Orange County Supervisor Lisa Bartlett. “I am proud to acknowledge the collaborative process that got us to this place. At the end of the day, what clearly matters is the care and well-being of the patient.”

On display during the press conference were an Orange County Fire Authority engine and helicopters from both the Sheriff’s Department and the Orange County Fire Authority. Here, the OCFA helicopter takes off from the Village Green behind the Norman P. Murray Community Center in Mission Viejo following the conclusion of the press conference.

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VOLUNTEERS

By Sherri Butterfield

he English word volunteer comes from the Latin verb volo, meaning “to be willing, to wish.” Thus, a volunteer is a person who is willing to undertake a task or to provide a service, usually without any thought of compensation or remuneration. Where resources are inadequate, volunteering is one way to close the gap between what is and what can be, thereby, turning today’s wishes into tomorrow’s reality. In places too numerous to count and in ways too many to mention, Orange County REALTORS® Affiliate and REALTOR® members quietly go about volunteering their time and donating products and services to make a meaningful difference throughout Orange County—and the world. The purpose of this magazine feature is to celebrate some of these very important but too-seldom-sung heroes.

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John Crispo REALTOR®, EHM Real Estate, Dove Canyon Volunteer Service: John is secretary of the Pelican Crew, a nonprofit group based in Surfside, California, which empowers youngsters through surfing and beach-related activities. Specifically, they support the Bangladesh Surf Girls and Boys Club, which teaches skills and provides a safe place for impoverished children who might otherwise be working in factories or out on the streets. To be permitted to use the Club’s facilities, which include surfboards and skateboards, the youngsters must attend school, tutoring sessions, and/or water safety workshops. Additional information is available at www.pelicancrew.org. Recipient Organization: Pelican Crew, Surfside In His Own Words: “I was the oldest of three boys and can still hear my mom saying to me, ‘Johnny, you lead by example!’ Whether I am picking up a few pieces of loose trash on my way across the sand to the parking lot or hosting a beach clean-up after a storm, I am reminded of Mahatma Gandhi’s words, ‘Be the change you wish to see in the world.’”

Ed Molina Businessman/Community Leader/REALTOR®, HomeSmart Evergreen Realty Volunteer Service: Several years ago, when Ed was PTSA president at San Clemente High School, he saw a documentary titled Overtaken and became painfully aware that many South Orange County youngsters were losing their lives to drugs. With a group of community leaders, he formed the Coalition Outreach Alliance (COA) to provide programs and activities designed to encourage teens to choose and enjoy a healthy lifestyle. For this group, Ed serves variously as chairman, coach, and mentor. Recipient Organizations: The Coalition Outreach Alliance and the Gang Reduction Intervention Partnership Program (GRIP) In His Own Words: “Many of our youths today need positive nurturing, mentoring, and sharing of life lessons. Someday, they will be our leaders, coaches, and motivators. My message to them is, ‘No matter what path you take, do your best, work hard, and have fun along the way. And do not let anyone tell you that you can’t!’ ”

Teri Miles REALTOR®, HomeSmart Evergreen Realty, Huntington Beach Volunteer Service: Teri serves on the board of directors for the Huntington Beach Police and Community Foundation (HBPCF) and coordinates HBPCF fundraising events in the Huntington Beach area. The funds are used to enhance the Huntington Beach Police Department’s programs that encourage positive interaction between police officers and youngsters, including both Shop with a Cop and Surf with a Cop. Recipient Organization: Huntington Beach Police and Community Foundation In Her Own Words: “I am involved with other nonprofit groups, but being part of the HBPCF is very near and dear to my heart because I worked for the Huntington Beach Police Department many, many years ago. It gives me great pleasure and great satisfaction to be able to help in any way that I can.”

Heidi Stoops REALTOR®, First Team Real Estate Volunteer Service: Heidi is president of the Aliso Viejo Chamber of Commerce and serves as events chairperson for the Aliso Viejo Community Association. In this latter capacity, she is on the committee that plans and volunteers at the Fourth of July fireworks event, the summer concerts and movies, the Winter Holiday event, the Spring Celebration and Easter Egg Hunt, and the Fall Harvest event. Recipient Organizations: The Aliso Viejo Chamber of Commerce and the Aliso Viejo Community Association In Her Own Words: “I love being able to give back, and I always laugh and tell people that I have to because I am from Tennessee, the Volunteer State. I love being a REALTOR® and volunteering because I feel that my actions make a difference in someone’s life.”

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AFFILIATES IN ACTION

Affiliates Assist at New REALTOR® Orientations in July and August Orange County REALTORS® thanks the Affiliates and others who assisted at the New REALTOR® Orientations on July 16 and August 4, and congratulates the new REALTOR® members who joined Orange County REALTORS® on these occasions.

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Laguna Hills

Affiliates who helped Orange County REALTORS® welcome new REALTOR® members on July 16 in Laguna Hills were (from left to right) Jerry Stronger, Preferred Inspection Services; 2018 Affiliate South Vice Chair Peter Giammarinaro, The Termite Guy; Leigh Ann Rowe, Photography by Leigh Ann Rowe; Sandy Dow, Fidelity National Home Warranty; Kristine Holliday, WFG National Title Company; 2018 Affiliate South Chair Ellie Tipton-Ortiz, Laguna Legal; Joe Pierce, Iron Key Escrow; and Dan Stone, The Mortgage Fee Coach.

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Laguna Hills

Affiliates who helped Orange County REALTORS® welcome new REALTOR® members on August 4 in Laguna Hills were (from left to right) Jeff Shortley, Shortley Window Cleaning; Bill Senteno, Principal Escrow; Virji Angelo, Angelo Termite and Construction; 2018 Affiliate South Chair Ellie Tipton-Ortiz, Laguna Legal; Dorsaye Dilani, Guaranteed Property Inspections; Sky Nguyen, Farmers Insurance; and Corvi J. Urling, Planet Home Lending. 58

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