OC REALTOR® - March/April 2024

ACKNOWLEDGE THE PAST EMBRACE THE FUTURE

ON PAGE 8

OC HOUSING UPDATE: GREEN SHOOTS APPEAR ON PAGE 18

REALTOR® REVEALED: DEMONSTRATING YOUR VALUE ON PAGE 24

CREATIVE FINANCING

SIDE HUSTLES FOR EVERY REALTOR® ON PAGE 28

LOOKING FOR HOME SELLERS? ON PAGE 30

Innovate Your Way to New Heights

"Innovate to Elevate" underscores the importance of embracing creative solutions and forward-thinking strategies to advance your success as a real estate professional. Dive into our latest magazine edition, where we spotlight innovative ways to supplement your income, creative financing solutions, and strategies for demonstrating your value as a REALTOR®.

pages 24-34

"Innovate to Elevate" underscores the importance of embracing creative solutions and forward-thinking strategies to advance your success as a real estate professional. Dive into our latest magazine edition, where we spotlight innovative ways to supplement your income, creative financing solutions, and strategies for demonstrating your value as a REALTOR®. Plus, explore additional insights from industry leaders and updates on market trends to keep you ahead in today's real estate landscape. Let’s continuously seek innovative approaches together and achieve new heights of growth in 2024.

PRESIDENT'S MESSAGE

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COVER STORY: INNOVATE TO ELEVATE Acknowledge the Past-Embrace the Future

In his first address as President of Orange County REALTORS®, Jeffrey Jackson acknowledges the industry's challenges in 2024. He emphasizes the importance of adapting to changes, staying informed through OCR, C.A.R., and NAR resources, and articulating one's value proposition. Jeff introduces the Diversity, Equity, and Inclusion (DEI) Committee and encourages members to embrace the future while reflecting on past successes.

FEATURES

14

MEMBERSHIP

Discover the Advantages of Orange County REALTORS® Membership

Dave Stefanides emphasizes OCR’s vibrant community, networking, education, advocacy, and commitment to ethical standards and community engagement.

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LEADERSHIP

Where Are They Now?

Sabrina Blair updates us on Leadership Academy Alumni and where their leadership journey has taken them since graduation.

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THE ORANGE COUNTY HOUSING UPDATE

Green Shoots Appear

Steven Thomas highlights signs of recovery in Southern California's housing market, suggesting a potential increase in available homes for buyers.

36

CRMLS REcenterhub

The California Regional Multiple Listing Service introduces the REcenterhub dashboard, transforming the MLS user experience with innovative features.

REALTOR® Revealed: Demonstrating Your Value

Michelle McCann emphasizes the importance for REALTORS ® to communicate their value, serve as knowledgeable advisors, and offer guidance in navigating real estate decisions.

Creative Financing Solutions

Sabrina Blair presents creative options for helping buyers navigate challenging real estate markets.

Side Hustles for Every REALTOR®

Sydney Smythe offers diverse income-generating ideas tailored to different skill sets, providing REALTORS ® with flexible ways to supplement their income.

Looking for Home Sellers?

Ryan Kleis sheds light on a promising demographic of potential home sellers: older homeowners encountering difficulties in accessing their home equity.

7 Tips to be More Innovative in Your Real Estate Business

Realtor.com provides actionable tips for enhancing innovation in your real estate business, leading to growth and advancement.

10 22

Names in the News

Education Central: Upcoming Classes by Track

EVENTS

2024 New Laws with Gov Hutchinson, Esq.

An overview of several selected bills highlighted at the 2024 New Laws event and their impact on the real estate industry.

ORANGE

2024 OFFICERS

Jeffrey Jackson President

2024 BOARD OF DIRECTORS

MAGAZINE STAFF

The cover design by Print and Marketing Specialist Ivan Salmeron.

Online Magazine

Love OC REALTOR®? Did you know that you can read it online, anytime? Read past issues at www.ocrealtors.org/magazine

Mission Statement

The mission of 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

It is the long-established policy of this Association, 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 in the provision of real estate brokerage services. The OC 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 Orange County REALTORS®. Orange County REALTORS® does not necessarily endorse the companies, products, or services advertised in this magazine unless specifically stated.

OC REALTOR® (USPS 025-445, ISSN 1945-2179) Volume 15, Issue 2, is published by 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 $6.09 for a one-year (6 issues) subscription to OC REALTOR® magazine. OC REALTOR® cannot be responsible for unsolicited materials.

Publisher: Orange County REALTORS®

Printer: The Monaco Group

ACKNOWLEDGE THE PAST

By Jeffrey Jackson

2024 PRESIDENT, ORANGE COUNTY REALTORS®

Hi, my fellow members and friends! This is the first opportunity I have had to address you through the President’s column and let me start by saying it’s a privilege and honor to serve you as the Orange County REALTORS® President for 2024. I look forward to us all having a great year and, as Jim Rohn said, “Time is more valuable than money. You can get more money, but you cannot get more time.” So, let’s get started.

We face a series of dilemmas in the real estate industry that would stagger most businesses – lawsuits, filed and threatened; rules on independent contractors now challenged by the Department of Labor; a changing economy, with no consensus on the future; a lack of inventory which affects our ability to sell homes, but also prevents buyers from moving into the homes they want to buy. There remains a grave concern from many agents about what is going to happen next.

Photo by www.adobestock.com/Mel

Photo by Jerry Mancuso

There is much to celebrate in what we’ve done in the past, and the lessons we have learned from those events, but this is a time to go forward and embrace what changes lie in store for our real estate community.

I don’t have a crystal ball, but I can tell you a few things about what’s going to happen. First, the real estate industry will undergo changes, but for the time being it is business as usual. Follow the late, great UCLA coach John Wooden; “Do not let what you cannot do interfere with what you can do.” Go out and sell homes and find buyers as you have done for years in the past, and keep informed about what’s going on through OCR, C.A.R. and NAR. There’s a variety of ways OCR keeps you informed about what you need to know, and it’s there every day online; go to www.ocrealtors.org for more information.

The past year brought seismic changes to professional real estate, so much so that REALTORS® are now put on the defensive by potential sellers and buyers to prove their worth to them – i.e., to state their “Value Proposition.” Developing your value proposition – deliverance of a statement indicating what your business does, how it benefits you, and why a client or customer should choose you over a competitor, delivered clearly, concisely, and finding a solution to a problem – is central to your business, and will be more important in crystallizing who you are and what you do in your clients’ minds. If you haven’t thought about it and written it down, do so now and live it.

Another major change this year at OCR is the inception of and implementation of our first Diversity, Equity, and Inclusion (DEI) Committee to ensure that OCR fosters an inclusive environment. OCR is committed to valuing all perspectives, whether they are consistent with our longstanding policies or provide a new or contrary viewpoint. We ask that each of you support OCR’s diversity efforts by committing to treating each other with dignity and respect. We will have many DEI programs this year brought to you by implicit bias and treat everyone as you would wish to be treated.

My theme for this year is “Acknowledge the Past –Embrace the Future.” There is much to celebrate in what we’ve done in the past, and the lessons we have learned from those events, but this is a time to go forward and embrace what changes lie in store for our real estate community. I invite you to join me on this journey as we plunge forward into what real estate practice will become in the future. Remember what President Kennedy said –“Change is the law of life and those who look only to the past or present are certain to miss the future.” Let’s not miss our future as we charge ahead, ensuring that our future as real estate professionals is as vivid and vibrant as we hope it may be.

Until the next issue! Jeff

Illustration

Gary Macrides Named 2023 Ambassador of the Year

The Dana Point Chamber of Commerce inducted its 2024 Board of Directors and recognized the 2023 Ambassador, Citizen, Nonprofit, and Business of the Year at its annual awards night on January 24 at the Waldorf Astoria Monarch Beach Resort & Club in Dana Point. Congratulations to OCR Past President Gary Macrides for being honored as 2023 Ambassador of the Year!

Feodora,

Pictured from left to right (back row): Rita Tayenaka, Ed Molina, Thomas Lotts, Lacy Robertson, Gary Macrides, Anna Dickinson, Mary Rampone, Sue Turner, Ron Pascual, Shirley Tenger, Peter Tenger, and Tony Faulkner. Pictured from left to right (front row): Dirissy Doan, Jeannie Luong, and Nelson Coburn

VNARP Southern California Installs 2024 Board of Directors

Orange County REALTORS® members attended the VNARP Southern California’s 2024 Board of Directors Installation on February 1, 2024 at Saigon Grand Center in Fountain Valley.

Congratulations to Bryan Ahn who will take the helm as President of AREAA National in 2026. Bryan is an involved Affiliate member and facilitates our North Marketing Meeting & Preview every Wednesday in Irvine. In 2017, he served as President of the AREAA Orange County Chapter.

Bryan Ahn Elected 2026

AREAA National President

Pictured from left to right: Phuong Diep, VNARP Southern California Vice President and OCR Director Van Gordon, Debra Shrider, OCR Director Mary Rampone, VNARP Southern California Past President Mindy Luong, OCR Director Lisa Dunn, Alondra Valdivia, and Cindy Luckett

Moulton Niguel Awarded $10.3 Million Federal Grant

Moulton Niguel Water District is thrilled to announce a $10.3 million grant from the Federal Emergency Management Agency (FEMA) administered by the California Office of Emergency Services (Cal OES) that will replace nearly two miles of sewer force mains located in Laguna Niguel Regional Park.

MENTIONS

“I just completed my license renewal and wanted to let you know Cassie was amazing! I truly appreciated several reminders both by phone and email with the date I needed to complete and info where I could take courses. She let me know she was available at any time if I needed help. She also took the time to assist me in completing the renewal in the eLicensing portal. All done in such a friendly manner! I couldn't be more impressed.”

Tonianne Southron, Coast to Canyon Real Estate

"Once again, I want to give a shout out to OCR for the fantas6c member benefit, they provide…OC Tech Helpline. If you are not calling on them for all your technical issues, you’re missing out on a great service. I have called them many times and they have always resolved my problem. My latest call was a minor Outlook issue, I wasn’t even sure they could help me. I have been overwhelmed with email spam and important emails were being buried, with their help most of it now is going directly into my junk. Issues big or small they can help, THANK YOU OCR!"

Mary Jane Cambria, Cambria Real Estate

Members can get assistance with their DRE license renewals, questions about continuing education, and more through our complimentary Licensing Helpline. To schedule an appointment, visit www.ocrealtors.org/licensing-helpline.

Need tech support? Take advantage of your FREE member benefit, OC Tech Helpline! Learn more at www.ocrealtors.org/tech-helpline.

Names in the News is intended to be primarily a place where REALTOR® and Affiliate members of Orange County REALTORS® 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, please submit it online at www.ocrealtors.org/names.

Discover the Advantages of Orange County REALTORS® Membership

By Dave Stefanides, CEO

Belonging to Orange County REALTORS® (OCR), an inclusive and member-focused association, means joining a diverse and vibrant community of professionals. Each member brings their unique culture, real estate expertise, experience, and strength to the table. Here, you'll have access to a plethora of opportunitiesfrom attending classes to connecting with fellow members and participating in community events tailored for REALTORS® like you. It's a personalized journey where you can embrace your uniqueness and share experiences in a friendly and supportive environment.

Here are the key elements that contribute to our association's professional reputation:

1. Networking Excellence: A top-notch association is comparable to attending an international REALTOR® conference every month. Engaging with fellow property professionals, affiliate partners, and industry leaders at OCR’s weekly marketing meetings, economic forecasts, committee meetings, or member forums provides a broad spectrum of real estate-related news and information.

2. Educational Enrichment: Quality education and training programs are the backbone of our association. Most are free and the interactive format makes learning enjoyable. Stay updated on trends, regulations, and best practices by earning any number of National Association of REALTORS (NAR)-approved designations and certifications. Or take advantage of NAR’s self-guided webinars like C2EX, a commitment to excellence program, and Fairhaven, a fair housing simulation training, so that you stay a step ahead of your competition.

3. Advocacy Commitment: A valuable association actively advocates for its members to public officials. Whether navigating homeownership intricacies, dealing with fire insurance, or understanding buyer broker agreements, our association, in conjunction with California Association of REALTORS® (C.A.R.) and NAR, can exert considerable influence on decision-makers in order to promote and protect homeownership, property rights, and your ability to represent buyers and sellers in the real estate transaction.

4. Resourceful Tools: Access to valuable resources, market data, and business tools is crucial for REALTORS® to enhance their productivity. Members have access to C.A.R.’s Legal Hotline, the OC Tech Helpline, and OCR’s Licensing Helpline.

5. Ethical Standards: Associations with clear ethics and rules of enforcement contribute to a positive industry image. OCR’s grievance and professional standards system ensures members and clients receive the protections provided by NAR’s Code of Ethics.

6. Community Engagement: Associations involved in community initiatives and charity work play a philanthropic role beyond the real estate world. OCR’s members and volunteers are generous and contribute annually to C.A.R.’s Housing Affordability Fund and our own OCAR Cares Foundation—the only local REALTOR® association-sponsored relief fund for members in need.

As current members of OC REALTORS®, explore what makes us your ideal real estate association partner. Navigate through our website, our social media, and even better, chat up your fellow members at a REALTOR® marketing meeting or mixer. Take a closer look at the benefits and services we offer. It's a bit like finding your favorite ice cream flavor – scoop right for success and swirl left if it's not quite the perfect blend for me.

Our dedication to improving member experiences, nurturing a strong sense of community, and igniting positive change is what distinguishes Orange County REALTORS®. Look forward to exciting experiences that lie ahead.

Photo by Ivan Salmeron

Photo by Jerry Mancuso

Where Are They Now?

By Sabrina Blair

DIRECTOR OF COMMUNICATIONS AND PROGRAMS

As Orange County REALTORS’® Leadership Academy enters its seventh class this year, we would like to check in with a few Alumni to see where their leadership journey has taken them since graduation. The OCR Leadership Academy was launched in 2016 because 2015 President Rita Tayenaka and other Directors saw a need for new blood in leadership roles at the Association level and decided to form an academy to train, grow, and nurture leaders. The Academy is currently facilitated by our 2020 President, Danielle Corliss. To give readers a better idea about what the Academy can do for members, we are featuring graduates in OC REALTOR®. To learn more about the Leadership Academy, visit www.ocrealtors.org/la.

What spurred you to apply for the Leadership Academy?

I was in the first Leadership Academy so I wasn’t sure what to expect, but I knew I wanted to learn more about applying good leadership skills and learning about the real estate industry as a whole. I was amazed at how many different aspects of our industry were covered in Leadership Academy, from learning how the real estate association functions, to awesome team-building exercises, really understanding what Leadership is and how the legislative process works for our industry, and more!

What was the biggest thing you gained from participating in the Academy?

That a leader's role is to bring up new leaders. That was powerful because oftentimes the concept of a leader is at times associated with sole leadership, the person at the top. But what I learned is Leadership is far more encompassing and inclusive, for the betterment of people in general. Leadership is a gift we pass on to others.

What was the biggest thing you gained from participating in the Academy?

I am currently the Team Lead of the Broker Services Department with HomeSmart Evergreen Realty where my team and I work daily with our agents, guiding them to be leaders in their business through education and training and providing them assistance when issues arise. I have also enjoyed a few years on the MLS Committee, and the Grievance Committee, and I am currently a member of the Professional Standards Committee with Orange County REALTORS®. Those are awesome committees (of the many) that help educate and support our fellow REALTORS®.

What advice or words of encouragement would you give to someone considering applying for the Academy?

You should definitely join! Leadership Academy was more eyeopening and empowering than I could have possibly imagined. It was a lot of fun and I met a lot of awesome people!

Q A& Leadership Academy Alumni

What spurred you to apply for the Leadership Academy?

I’m a firm believer that if you do something, you should give yourself to it. Service is an important part of any organization. I wanted to get to know the people and the process that makes up OC REALTORS®.

Have you always been a natural leader or interested in leadership roles?

I like being heard and I want my opinions to count. I don’t think that makes me a natural leader, but it lends itself to my speaking out and that has often landed me in those positions.

What advice or words of encouragement would you give to someone considering applying for the Academy?

I’d encourage them to do so, of course! It taught me some skills and introduced me to the people that make this thing happen. I’m glad to be a part of it.

"You should definitely join! Leadership Academy was more eye-opening and empowering than I could have possibly imagined."

—Lorraine Zuschlag

"I like being heard and I want my opinions to count."

—Alton Hitchcock Jr.

There were more new sellers in January compared to 2023, the first “green shoot” since rates soared higher in 2022.

SBy Steven Thomas REPORTSONHOUSING.COM

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.

outhern California may not have freezing temperatures and snow on the ground like the rest of the country, but it is much cooler. Leaves still fall from the trees, and the golden rolling hills stretch as far as the eyes can see. It is winter. While it may be a time with plenty of sunshine and warmer temperatures when the wind shifts, it is also the rainy season. This year’s El Niño climate pattern has delivered a lot of rain and promises to deliver even more in the coming weeks. In no time, the rolling golden hills will magically turn green. If you look closely, there are already plenty of green shoots.

According to Investopedia.com, "green shoots" is a term used to describe signs of economic recovery or positive data during an economic downturn. They are a welcome symbol that the economy is on the mend and slowly trending upward. In this case, the housing market has been in a funk since mortgage rates rocketed from 3.25% at the start of 2022 to eclipsing 8% last October. Pending sales and closed sales plunged. Last year’s closed sales were one of the lowest totals in decades. Homeowners have opted to stay put in their homes, unwilling to sell and give up their incredible, low fixed-rate mortgages. Since tracking began, the number of sellers coming on the market has plummeted to its lowest level. Each of these data lines reached a low in 2023 and established a bottom. This bottom gave way to the first sign of recovery: green shoots in the number of homes coming on the market, homeowners willing to sell.

Photo by www.adobestock.com/Aozora, Fotoldee, Pajaros Volando, AIstudio1, geargodz and sellingpix

FIGURE-1

You cannot purchase what is not for sale. The limited number of homes coming on the market has exacerbated an already limited number of homes available to buy, which limits the number of pending and closed sales. Higher rates have significantly impacted demand, but so have the lack of sellers. Sales can only increase when more homeowners are willing to participate and sell their homes. In January, more homes were placed on the market than the prior year for the first time since June 2021.

There were 1,982 new for-sale signs in January, up 16% compared to January 2023’s 1,705 or an extra 277 sellers. It is still far below the 3-year average before COVID (2017 to 2019), 3,054 new sellers, when housing was normal. January’s reading was 35% below that average or 1,072 fewer signs. Nonetheless, it is a green shoot. More homeowners are opting to sell despite their lower fixed-rate mortgages. This is just the start, but it establishes a new trend: more available homes coming on the market for buyers to choose from.

"More homeowners are opting to sell despite their lower fixed-rate mortgages."

The trend began to unfold in October when year-over-year differences were only slightly less. Yet, the difference in January is substantial and not a fluke. It is a paradigm shift in homeowners’ thinking. Many are tired of waiting for rates to come down. They have reasons for wanting to move: increased family size, empty nesters, job opportunities elsewhere, moving closer to family, etcetera. Over time, more and more homeowners desired to sell when the timing was right. There was pent-up seller demand that accumulated over the past couple of years. Eventually, something had to give.

Still, until mortgage rates fall further, the number of homes coming on the market will remain muted. Many homeowners continue to “hunker down” in their homes, unwilling to move due to their current underlying, locked-in, low fixed-rate mortgage. Through the third quarter of 2023, according to the Federal Housing Finance Agency’s National Mortgage Database, 85% of all Californians with a mortgage have a mortgage rate at or below 5%. More than two-thirds, 69%, have a rate at or below 4%. And an astonishing 30% are at or below 3%. In 2023, there were 41% fewer sellers than the 3-year average before COVID (2017 to 2019), with 16,920 missing for-sale signs.

The January reading is a green shoot. There are more sellers, which eventually means more pending and closed sales. With mortgage rates anticipated to fall further this year, the lower rates dive, the more homeowners are willing to participate. When rates eventually fall below 6%, the increase will be substantial and more than matched by a considerable rise in demand as affordability improves. This is the year of green shoots in housing when the behemoth housing market wakes from its nearly two-year slumber.

Your Value

By Michelle McCann MARKETING MANAGER

As a REALTOR®, your ability to communicate your value to potential clients is vital to your success in a competitive market. In a world where buyers and sellers have countless options, clients are looking for more than just someone to facilitate a transaction; they want a knowledgeable and trustworthy advisor who can guide them through one of life's most significant decisions – buying or selling a property. Here are some strategies for effectively communicating your value, educating your potential clients, and navigating the rent vs. buy dilemma.

1. Communicate the Extensive Range of Services You Provide: It’s essential to articulate to your clients and potential clients all the behind-the-scenes work you do on their behalf. From market and property research to coordinating showings, negotiating contracts, and preparing counteroffers and amendments, there is a never-ending list of tasks involved in each real estate transaction. Make sure potential clients understand all the things – big and small – that REALTORS® do to help them have smooth and successful transactions. By communicating the depth of your services, you reinforce your value and build trust with your clients and any potential clients.

Resources:

The National Association of REALTORS® offers a comprehensive list that showcases the extensive range of services and expertise REALTORS® bring to the table throughout the transaction process. This document serves as a useful tool in demonstrating the REALTOR® value: www.ocrealtors.org/range-of-services

As a member of OC REALTORS®, you have access to a variety of free marketing collateral to share, customize, and use to promote the value of yourself as a REALTOR®: www.ocrealtors.org/marketing-tools

Photo by www.adobestock.com / ArLawKa

2. Educate Your Sphere of Influence:

In times when the real estate market is uncertain, the importance of educating your sphere of influence - past clients, friends, family, colleagues, neighbors, and acquaintances - instead of simply “selling” to them becomes even more essential. These individuals have the potential to become clients or refer you to potential clients so educating them on market trends, supply and demand, interest rates, financing options, neighborhood dynamics, economic indicators, and housing forecasts can help dispel any myths they may have about the market or alleviate any buying or selling fears. You as a REALTOR® can provide information, insights, and content through various channels such as social media, email, newsletters, personalized conversations, etc. By educating your sphere of influence, you position yourself as an invaluable resource and provide reassurance in an ever-changing market.

Resources:

OC REALTORS® members can utilize our OC Market Snapshots which offers a detailed look at Orange County housing with beautifully designed, local housing market reports drawn from CRMLS; and monthly housing summaries that can be branded and used in listing presentations. Download our variety of shareable market data:www.ocrealtors.org/market-data

In addition to providing market data, REALTORS® can also benefit from opportunities like at our Annual Membership Meeting and Market Forecast on March 25th. This event, featuring ReportsOnHousing.com Economist Steven Thomas, offers insights into the Orange County market forecast. By attending events like these, you gain access to expert analysis, allowing you to stay ahead of market trends and better educate clients and potential clients. Register: www.ocrealtors.org/amm

3. Be Prepared to Address Rent vs. Buy

Questions: When potential clients ask your advice on whether to rent or buy, it is crucial to be well prepared to respond with confidence. Understand the financial implications of both options, know what the tax advantages are of buying, and be able to discuss the long-term investment potential of buying versus renting. You should be able to discuss key factors such as mortgage rates, down payment programs, alternative financing, and other lifestyle considerations. By effectively communicating the advantages of buying versus renting, while also analyzing misconceptions, you become the go-to REALTOR® for potential clients that can offer reassurance and clarity during their decision-making process.

Resources:

OC REALTORS® offers courses covering topics such as the mortgage process, down payment assistance programs, VA and first-time buyer programs, and more. These courses allow REALTORS® to enhance their knowledge and skills to communicate more effectively with leads, potential clients, and clients. Register for any one of our 250+ annually-offered classes and webinars: www.ocrealtors.org/catalog .

Illustration by www.adobestock.com/ inspiring.team, AlexBlogoodf, and Olesia_g

Financing Solutions

BY SABRINA BLAIR DIRECTOR OF COMMUNICATIONS AND PROGRAMS

With real estate, like many things in life, there are ebbs and flows. Sometimes the market is hot and interest rates are low. Other times the market is sluggish and interest rates are climbing. We have compiled some creative options for helping your buyers get into a house when the market is a challenge. To get more custom solutions for your clients, please contact a mortgage professional. You can find OCR Affiliates through our Resource Guide which was included with this issue in your mailbox or online at www.ocrealtors.org/rg.

Down Payment Assistance Programs

The best place to start when looking for creative ways to finance a home purchase is down payment assistance programs. Most of these programs are targeted at first-time buyers but if your buyer hasn’t owned a home in the last 3 years then they might also qualify. Your first stop should be www.downpaymentresource.com which is a search engine tool for all kinds of assistance programs. Orange County Mortgage Assistance Program (MAP) is another program worth looking into. MAP provides mortgage assistance up to $80,000 (not to exceed 20% of the purchase price) for first-time homebuyers in the form of a silent second mortgage loan program. You can learn more about MAP online at www.affordable-housing.org/ orange-county-mortgage-assistance-program.

Bonus Tip: Attend our class “Show Me the Money! A Masterclass on First-Time Buyer Programs” on April 25th from 10:00 am – 11:30 am for details on these programs and more. Register at www.ocrealtors.org/first-buyers.

Assumable Loans

An assumable mortgage is a home loan where the buyer takes over the seller’s existing mortgage instead of applying for a new loan. This could be a great option considering the sellers’ interest rate could be much more appealing than current rates. The bad news is not all loans are eligible. But FHA, USDA, and VA loans are eligible for assumption. The benefits of an assumable loan are obviously a lower interest rate which will save you money in the long run. You also may benefit from less upfront fees since you are not opening a new loan.

Temporary Mortgage Rate Buydowns

In some situations, you may be able to ask the sellers to pay a portion of the buyer's interest payments upfront. This would reduce the mortgage payments for the first few years of ownership. Alternatively, the buyers can reduce the mortgage rate permanently by using discount points. One discount point equals 1% of the loan amount and each point typically reduces the interest rate by around 0.25 percentage points.

Date Your Rate

If all other options fail, it’s suggested that buyers just “date their rate.” This means they accept the interest rate they are able to get now in hopes of refinancing for a better rate down the line. Interest rates will rise and fall so it’s a matter of time before interest rates will come down again, maybe sooner than you think.

Illustrations by www.adobestock.com/Vector Stock Pro, vladwel, faber14, Visual Generation, and buravleva_stock

FOR EVERY REALTOR ®

By: Sydney Smythe

In a pinch for some extra cash? Get ready to diversify your income with these side hustles for REALTORS®. Find your best fit and start today!

For the Designer:

Stager- Do you have an eye for design? Feel like you know the trends before they even happen? Odds are you would succeed as a stager! Whether you go all out and buy your own stock of furniture and décor or keep it on the simple side by staging homes that only need that final touch, staging is the perfect way to make a little extra cash while staying creative. Not to mention, staging companies tend to not get booked too far in advance. This means you can better optimize your workload between listings!

In addition to traditional home staging, consider offering consulting services to homeowners who want to stage their own homes with guidance from a professional.

For the Social Butterfly:

Influencer- First things first, not all influencers are working 24/7 on their brand deals or have millions of followers. Brands work with a wide variety of people with a wide variety of followings. If you see yourself as having a captivating online presence that people are interested in, consider reaching out to a few brands that you feel fit with your account pages. Posting product reviews not only provides an opportunity to earn a little extra cash but also allows you to share your opinions and thoughts about your favorite products with your peers, potentially influencing purchasing decisions!

If you prefer to stay away from brand partnerships, consider posting trade secrets, tips and tricks, or “day in the life” videos as a REALTOR®. With a dedicated audience and active engagement, avenues like sponsored content, ad revenue, affiliate marketing, and more become earning possibilities.

For the Leader:

Coaching- No matter how long you’ve been in a profession, there is always something to learn. Luckily, that also means there is always something to be taught! If you find yourself always helping out the newbie or getting excited when it comes to public speaking, coaching may be for you. Look into creating an online class to teach for a small fee or writing a book about your experiences in your field. Various schools or associations may hire you to speak about your profession and share the insights you have to offer.

But why stop there? Another way to share your knowledge is by starting a blog focused on real estate topics such as market trends, home-buying tips, or local neighborhood guides. Monetize your blog through ads, affiliate marketing, or sponsored content. Whatever the avenue may be, get your knowledge out there!

For the Detail Oriented:

Notary Public- The real estate world is full of paperwork, documents, and signatures. If you secretly enjoy this side of real estate and have an interest in the legal aspects, what better job than to become a part-time Notary? According to the California Secretary of State, to become a Notary in California, you must complete an approved 6-hour course and pass an exam, among other qualifications. Once finalized, you can offer various notary services to your already existing connections in the real estate industry. A notary signing agent is considered to be one of the most lucrative ways to diversify your income. Learn more about qualifications: https://www.sos.ca.gov/ notary/checklist/complete-approved-education/

For the Visionary:

Photographer- If you have a professional camera, photographic insight, and basic photo editing skills, becoming a part-time real estate photographer could be your next break. Being a part-time photographer in real estate can mean many things. You may find yourself taking professional portraits for agents, event photos, or even the ever-important listing photos. Try a little bit of everything to find your niche. You may be surprised where your creativity and vision can take you! Don’t forget to use your already-established real estate connections to help jump-start your client list!

Tap into this Demographic!

By Ryan Kleis REVERSE MORTGAGE EDUCATORS

We’ve been hearing the same drum beat over and over again for the past few years, and you know what, it’s true. Listings in the OC are low. Just look at these numbers – we used to average 6,000 active listings monthly in Orange County back in 2017-2019. But today there were only 2,523 active listings (January 2024). That’s a whopping 58% drop. I remember when you could just put in more hours, make more calls, and show more love to your network and see the instant results in your pipeline. The formula has been there for ages, but the results seem to be less satisfying these days and those listings are so much more elusive.

For the past 16 years I have been working almost exclusively with older homeowners but not as a REALTOR®, as a reverse mortgage loan officer. Yes, I am that guy. I’m the last person a homeowner wants to call for help. It’s like I had the last bottle of water in the hot Mohave desert, but you’d rather take your chances milking water from a dead prickly cactus, I get it. However, with all those years of working with older homeowners I have learned a great deal about why older homeowners need loans, why they sell homes, and why that matters to a REALTOR® in today’s housing market.

It’s a generational thing. Have you ever been speaking to someone 30 years older than you and they told you how much they bought their home for? It’s almost impossible not to roll your eyes from the price you hear and yet it’s true. On a weekly basis I am in the home of someone that purchased a home for $175,000 and now it’s worth over a million dollars. Why couldn’t I just have started buying homes at age 10, I think to myself, what a fool I was! Fortunately for many they did get their piece of the American dream and now it’s their biggest asset! Unfortunately, that asset is illiquid, and it is hard to convert it to spendable cash.

In my industry, our product was designed to help older homeowners turn that equity into cashflow. The commercials are on all the time. Stay in your home, get out cash, and never make a monthly mortgage payment. It seems like a good idea; homeowners have a plethora of equity, and they could use some of it by getting a reverse mortgage. In today’s market with so much home equity you would think I would be funding more loans than ever. However, inflation is squeezing our retired homeowners’ budgets. We have 10,000 people turning 65 every day and many are homeowners right here in Southern California. That means my dance card should be full, and my feet should be tired but it’s not and they’re not, so what gives? The reverse mortgage industry volume is low and down by about 50%. Sound familiar? The reverse mortgage volume is down just like housing inventory is down, refinances are down, and transactions down. What’s the common denominator here? Interest rates. In the reverse mortgage world when interest rates go up our loan amounts go down. For example, a 75-year-old with a $950,000 house in early 2021 could have received a loan amount of $559,000 but in 2024 that scenario would yield a loan amount of $400,000. See a problem here? That is about $160,000 less in cash the homeowner could get on a reverse mortgage due to higher interest rates. Say hello to illiquidity and goodbye to cashflow.

Photo by www.adobestock.com/ LAONG

Now back to my original question. Are you looking for home sellers? Sixty-one percent of home sellers are in this spot. When interest rates started to go up in 2021 more and more older homeowners started to have trouble getting cash out of their homes. It did not matter if it was a conventional loan or a reverse mortgage refinance, equity was getting harder to access. This is when I started having more conversations with older homeowners about selling their homes. Even though I was just their loan officer, I was often the first one to let them know the days of cheap and plentiful money were gone. They were going to need to find another way to get cash out of what is their biggest asset. I think you know where this is going. For many the only other way to get money out of that asset is to sell it.

These conversations led me to wondering just how many older homeowners would be selling their home because it was getting hard to access all that equity. In 2021 I turned to something that many of you probably already know about, the National Association of REALTORS® Profile of Home Buyers and Sellers. They do a wonderful job of tracking who is buying and selling homes, you can get your own copy from their website and members get a heavy discount.

What was most interesting to me from NAR’s report was that 61% of homes sold were by a homeowner 55 years or older. Thirty-eight percent of homes sold were by homeowners 65 years or older. This made sense because many of the older homeowners I spoke with were going to sell their home not because they wanted to but because they needed to. It did not matter if they had a 3% 30-year fixed. They need to sell to be closer to family, because their home is too big, or they were equity rich and cash poor. I know when I am talking to an older homeowner there is a chance they are going to sell even if they don’t realize it yet. So keep this in mind when you are out door knocking your farm. It’s likely that your next listing will likely come from someone 55 or older.

For tips on working with seniors, sign up for one of our upcoming classes at OCR at www.ocrealtors.org/calendar

7 TIPS TO BE MORE INNOVATIVE

in your Real Estate Business

By Realtor.com

Staying innovative in business is key for various reasons. By pushing the envelope and challenging the phrase “but that’s how it’s always been done,” you can elevate with ease. To give innovation a prime spot in your approach to your business, we’re giving you seven ways to start being more innovative. Think of these tips as building blocks: as you get the ball rolling in these areas, your ability to innovate will pick up momentum, and the ideas and inspiration will start flowing.

1.

Be open to change

First and foremost, the most important part of actually achieving innovation is being open to and accepting of change in any form. Innovation, at its core, is change. It’s pushing back against the status quo, aiming higher, or taking the path less (or never before) traveled. If you want to be more innovative, you have to welcome change with open arms. It’s the only way to grow and evolve, which is exactly what innovation is all about.

2.

Challenge your way of thinking

So… how exactly do you welcome change with open arms? By challenging your existing ways of thinking. Rather than overhauling your business all at once, start small and look at your most common processes and tasks. These are the things you know like the back of your hand. Then, look at ways to push each one to the next level. Maybe it’s letting ChatGPT freshen up your top-performing scripts. Or you decide now’s the time to embrace the automation tools in your CRM instead of going the manual route.

Whichever path you take, push back on yourself. Remember, you’re not trying to start from scratch totally. You’re just looking at the next level to level up!

Photo by www.adobestock.com/Sebastian

Pull inspiration from other innovative thinkers

To be innovative, you actually don’t have to put your way of thinking into a real estate box. You can get fresh insights and ideas to make your own, even outside real estate. What could this look like in action?

You should always stay on top of and up to date on real estate trends, including market changes, the latest and greatest tech, and approaches to sales and marketing. But to take it up another notch, keep your eye on technology, sales, and marketing trends happening in other industries. While they may not always be applesto-apples with real estate, they’ll stretch your thought process and help you see new, innovative ways to apply new approaches and technologies to your business.

Attend a workshop

For a more hands-on approach to strengthening your innovation muscle, keep your eyes peeled for in-person and online workshops you can attend. Don’t worry if you don’t see workshops specifically categorized for innovation; instead, focus on finding and attending workshops in areas relevant to your business, like digital marketing, sales tactics, public speaking, and more.

By attending these types of workshops, you can network with other business owners who are also likely seeking to innovate their own lines of work. Even if they’re not in real estate, having their perspective on what they do and on the topics you’re both learning about can spark creative, innovative ideas. You can also chat with other attendees about challenges you’re facing that are inspiring you to innovate your own business.

3.

4.

Illustrations

www.adobestock.com /Valentin, Pavlo Syvak, and woocat

5.

Broaden your professional network

Speaking of networking, widening your professional network is a must if you want to be more innovative in your real estate business. Whether you network with fellow agents, professionals in real estaterelated industries, or experts in fields relevant to your business operations — like sales, marketing, business ownership, and more — having an expanded network is key to building up opportunities to innovate.

Networking encourages collaboration through swapping ideas, experiences, and perspectives on innovation, especially from a professional perspective. It can also be extremely motivating to hear how other pros have been innovative in their own areas, fueling ideas for how you can apply them to your real estate business.

6.

Bring your skills to the office

Now that you’re in a good rhythm of leaning into innovation, it’s crucial you share what you’re learning. As you develop new skills to drive innovation, you’ve got to put them to use. Start implementing your approaches to innovation by tacking them onto SMART goals. Be proactive in your problemsolving and find new ways to be creative. Discuss your eagerness to innovate with colleagues and use your innovation tactics and ideas to lead by example.

This sets off a domino effect: by opening the path to innovation, you can inspire your fellow pros to start challenging their own ways of doing and thinking. When they start pushing their own limits for innovation, it creates a sort of feedback loop to inspire new ideas, strategies, and tactics. In turn, innovation continues to grow.

7.

Have confidence in your ideas

The cherry on top of the innovation sundae? Confidence. Innovation is the process of challenging existing patterns and ideas and transforming them into something entirely new. This can be daunting, but it doesn’t have to be. With a healthy dose of confidence, you can lead by example, set a new status quo, and create new best practices altogether.

If you’re unsure how to build confidence in your ideas for innovation, consider sourcing a trusted mentor or more experienced colleague as your sounding board. Ask them about times they’ve innovated their approaches to business, what they did well, what they wish they knew beforehand, and what advice they have for you. These learned experiences are key to giving you a set of healthy guardrails as you set out to chart a new path.

Innovation is well within reach

You’re ready to go forth, break outside the box, and level up your business like never before. It may seem a little scary, but nothing good ever came from the same old comfort zone.

To read the complete article and to find other useful resources, go to the Realtor.com PRO Resource center at www.realtor.com/marketing/resources

By CRMLS

Just about every path to success shares one key factor. No, it isn’t luck, it isn’t skill, it isn’t even a really good-looking headshot. One of the most important things needed to succeed in real estate — or anything, really — is organization. When you keep your materials in order and easily accessible, you set yourself up to handle the big tasks and challenges. And real estate comes with a lot of pieces to keep together. While CRMLS can't visit your office and collate every file for you, we can at least make your MLS experience tailored to you and your needs.

That's why we developed and launched the REcenterhub dashboard and ecosystem for all our users in 2023.

REcenterhub takes innovation and customization to the next level. The dashboard was made in response to older MLS user interfaces that didn't meet today’s technology standards. With its interactive modules, modern design, and intuitive navigation, your preferred products are never more than a click or two away on the REcenterhub dashboard.

"The dashboard is set to become even more revolutionary with new technology that the real estate world hasn't seen before. "

The next round of REcenterhub innovations will start with one of the elements agents and brokers have most requested: a robust Compliance module. It’s no one’s favorite aspect of professional real estate, but Compliance keeps MLS data honest, and we couldn't work without it. Agents will be able to communicate with a Compliance representative directly through the dashboard, taking out the hassle of pulling records. When you're logged into REcenterhub, your user profile and associated data are already handy, so it speeds along assistance. What's more, there will be preemptive alerts if any input is likely to lead to a violation so you can avoid violations and fines. Brokers and managers will also be able to monitor Compliance issues for their team, helping to ensure no unseen violations nag at the office.

Later this year you can expect an advanced market analytics package. The MLS is data-rich, and we'll be making the most of it, generating near-real-time analysis for powerful insights of listing life cycles. This won't just be about historical analysis, either, as the dashboard will be able to provide predictive analytics, showcasing both the supply and the demand side of the market. That’s a hybrid perspective unseen up until now that will help you make the most informed decisions possible when it comes time to advise your clients.

Photo

Lastly, and perhaps most significantly, the REcenterhub dashboard is set to become the one-stop-platform for your most common real estate needs. That means making listing management easier, and CRMLS users can expect Recenterhub to integrate its own Add/Edit module in late 2024. By replacing outmoded add/edit features, the dashboard can help guide you through best practices with listings, with everything from optimizing photo quality to AI-assisted content generation. Marketing can be tied directly into the listing, which means more work done in less time. With the REcenterhub dashboard, all you need is truly in one place.

"The REcenterhub dashboard was initially well-received at launch, and it’s only getting better," said our CEO, Art Carter. "It's a chance to not only modernize the MLS, but also make something new and exciting. The real estate industry of tomorrow will be more and more reliant upon sophisticated technologies, and REcenterhub is aiming to get ahead of the curve."

Of course, this is just a sample of the innovations and advancements coming to REcenterhub. Every month sees new improvements and enhancements, so you can always expect the platform to be growing into something better. Technological advancement never sleeps, which is a big reason why the REcenterhub team operates on a 30-day bug fix and improvement cycle, rolling out advancements on a steady basis. The MLS user experience is a vital component to keeping the wheels of real estate turning, and REcenterhub is here to streamline it. With all these new dashboard advancements, getting organized will have never felt so good, nor will it have ever been this easy.

Schedule

2024 New Laws with Gov Hutchinson, Esq.

Gov Hutchinson, C.A.R. Vice President and Assistant General Counsel, described some of the new laws impacting REALTORS® in 2024.

By Tiffany Gardner Wood DIRECTOR OF POLICY AND RISK

On January 17, 2024, Jeana Sander, Chair of the Risk Management Committee, hosted Gov Hutchinson, Vice President and Assistant General Counsel of the California Association of REALTORS®, who presented 2024 new laws affecting REALTORS® in the practice of real estate. Below is a condensed overview of the presentation. A more comprehensive list of 2024 new laws can be found on C.A.R.’s website by visiting www.ocrealtors.org/2024-newlaws.

Of the nearly thousand bills signed by Governor Gavin Newsom in 2023, Gov Hutchinson selected several bills to provide further explanation on their impact to the real estate industry in 2024.

If you have questions about a specific situation or follow-up questions about any of these new laws, please contact C.A.R. Member Legal Hotline (213-739-8282), your broker, and/or a qualified real estate attorney.

Photos by Jerry Mancuso

Pictured here are 2024 President-Elect, Ed Molina, C.A.R. Vice President and Assistant General Counsel, Gov Hutchinson, Esq., and 2024 Chair of Risk Management Committee, Jeana Sander

NEW LAWS (partial list)

Residential Exclusive Listing Agreements Act (AB 1345)

Previously, there was no limit to how long a listing could last, which lead to some predatory practices across the country. Homeowners were offered cash upfront to enter into 40-year exclusive right to list agreements, and these homeowners were often unsuspecting, cashstrapped individuals who were not made aware of any requirements on their end – namely, a lien placed on the home with a penalty should the individual cancel the contract or use a different real estate agency. This type of practice has been the basis for lawsuits and investigations by various state and federal agencies.

AB 1345 bans exclusive listings on residential one-tofour properties that are longer than 24 months from the date the listing was signed. It also makes it unlawful for a renewal of such an exclusive listing agreement to last longer than twelve months from the date the renewal was made. The bill limits recording or filing an exclusive listing agreement. The bill prohibits automatic extensions on exclusive listing agreements and requires a renewal to be in writing, dated and signed by all parties to the agreement.

Single-Family Residential Property: Disclosures (AB 968)

Those sellers of single-family one-to-four residential properties, who accept an offer within 18 months from the date that title was transferred must disclose:

1) Repairs and renovations made by a contractor to the property since transfer of title;

2) Name of contractor(s) and contact information; and

3) Permits obtained (or if not obtained, contact information of the third party who can provide the permits).

C.A.R. Standard Forms Committee is reviewing changes that might address any new disclosure requirements in the Seller Property Questionnaire.

This new law is part of the Transfer Disclosure Statement law and is effective for all transactions where the seller accepts an offer on or after July 1, 2024.

Photo by www.adobestock.com/ytemha34

Photo by Jerry Mancuso

Fire Hazard Severity Zones: Disclosures (AB 1280) (C.A.R. Sponsored Law)

The Natural Hazard Disclosure Statement will now specifically identify high and very high fire hazard severity zones, which will make it easier to determine which properties are subject to defensible space and fire hardening disclosures.

Tenancy: Security Deposits (AB 12)

Starting July 1, 2024, a landlord may collect only one month’s rent in addition to the first month’s rent as a security deposit, with exceptions for small landlords, defined as natural persons or LLCs in which all members are natural persons, owning no more than two residential properties that together include no more than four units. Small landlords may collect two months’ rent as security deposit plus the first month’s rent.

Termination of Tenancy: No-Fault Just Cause: Gross Rental Rate Increases (SB 567)

Starting April 1, 2024, SB 567 will raise the bar of requirements for eviction based on owner move-in and substantial remodeling and it will dramatically increase the damages for violation of the Tenant Protection Act. Damages may include actual damages, “reasonable” attorney’s fees and costs, up to three times actual damages for willful violators, punitive damages, and injunctive relief may be sought by the Attorney General.

Bottom line – landlords should seek legal guidance from a qualified real estate attorney for questions about eviction before proceeding.

The full text of these laws can be found at leginfo.legislature.ca.gov. Search by California legislative branch and bill number if you know it or by topic or subject matter if you do not.

Disclaimer: This presentation was provided for information only and was not intended as a substitute for legal advice. Should you require specific advice, consult an attorney. For answers to follow-up questions, contact your broker, attorney, and/or the C.A.R. Legal Hotline (213-739-8282).

Photo

New Federal Independent Contractor Rule

The Federal U.S. Department of Labor had just issued its final rule on the classification of workers as employees or independent contractors, effective March 11, 2024. This new final rule does potentially adversely impact California real estate licensees, but it was mentioned that C.A.R. and NAR are working with state and federal contacts to seek a delay of implementation of the Final Rule to clarify the rule and allow for further understanding on how it aligns with the unique provisions on California’s labor law statutes.

Additionally, it was discovered following this presentation that the Pacific Legal Foundation, representing several freelancers, challenged its legality and requested a stay on the implementation of this rule.

FORM UPDATES

Gov reviewed several new and updated C.A.R. forms. Typically, C.A.R. releases updates to existing forms and new forms in December and June.

Buyer Homeowner’s Insurance Advisory

It is no secret that in California availability of insurance has become increasingly difficult. Thus, C.A.R. created a new form BHIA, which is bundled with the RPA to address problems with insurance availability, contract contingencies, and resources. This form serves as an advisory and explains to the buyer the importance of obtaining property insurance and that many insurance carriers have stopped issuing new property insurance policies and others are limiting the number and location of new policies, affecting the availability and cost of insurance.

Residential Listing Agreement – Seller Reserved

This form was updated to include the statutory limitation (see above for more information on AB 1345) that maximum exclusive listing period cannot exceed 24 months and that recording the listing is prohibited.

For a complete list of changes to the forms, visit www.ocrealtors.org/form-changes for a Quick Summary Guide. The Guide notes whether each form is a new form or a revised form, replacing an existing form.