COMING SOON IS NOW AVAILABLE IN MATRIX
HIDDEN OPPORTUNITIES FOR YOUR DOWNTIME ON PAGE 35
ON PAGE 18
NOW IS NOT THE TIME TO GUT PROP. 13, RAISE TAXES ON PAGE 20
TOOLS TO DIGITIZE YOUR TRANSACTIONS ON PAGE 33
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HOUSING ENJOYS A V-SHAPED RECOVERY ON PAGE 37
PREPARE NOW FOR A SAFE SWIMMING SEASON ON PAGE 42
Become better acquainted with the five new members of the Orange County REALTORS® Board of Directors. Discover what they have to say about real estate and the threats it faces from competing business models, unfavorable economic trends, and unfriendly legislation. ON PAGES 30 –32
TABLE OF CONTENTS What’s Hot, What’s New, and Whatnot In this issue of OC REALTOR®, the focus is on the five new Directors who were elected in May, the V-shaped recovery that the housing market is experiencing, the warm weather that is coming, and the coronavirus pandemic that is not going away. On its pages, you will find up-to-date guidance for the use of face coverings, suggestions for digitizing transactions and making good use of downtime, and instructions about what to do if COVID-19 prevented you from paying the second installment of your property tax on time. And speaking of property tax, a measure to split the tax roll so that homes and businesses would be treated—and taxed—differently has qualified for the November ballot. Although this approach may seem reasonable, its longterm effects could be disastrous not only for businesses but also for consumers and, ultimately, for homeowners!
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State Update 10 We Support the Dignity and Worth of All Individuals C.A.R. President Jeanne Radsick reaffirms REALTOR® support for policies that bring justice, opportunity, and security for all.
Features 16 In Memoriam: Nancy Hunt (1940–2020)
Orange County REALTORS® fondly remembers one of its former Presidents, who served God, family, friends, and real estate well throughout her lifetime and left a legacy of kindness.
18 CRMLS Update: Coming Soon Is Now Available in Matrix
Cover Story 30 What’s Hot
The five new members of the Orange County REALTORS® Board of Director comment on the challenges that real estate is facing.
33 Tools to Digitize Your Transactions Marissa Hughes describes programs and applications that make it possible to screen potential clients, manage disclosures, and sign and submit documents electronically.
35 Hidden Opportunities for Your Downtime Michelle McCann suggests ways to keep your business running now and to prepare for future success by staying in touch—even from a distance.
This option allows listing agents to take up to twenty-one days to prepare properties for showings without accruing Day on Market.
20 Election 2020: Now Is Not the Time to Gut Proposition 13 and Raise Taxes Jon Coupal explains why taxing businesses differently would harm consumers and homeowners, and asserts that “higher taxes are the last thing California needs.”
23 COVID-19: Guidance for the Use of Face Coverings On June 18, the California Department of Public Health released this updated guidance that mandates the use of face coverings by the general public throughout the state.
26 Risk Management: Navigating Your Risks,
President’s Message
Part Three—Removing Disciplinary Action from the Public Record
8 What’s New, What’s Hot—and Some Tax Talk
Tiffany Gardner Wood interviews the DRE’s Veronica Kilpatrick about what sorts of violations the Department posts on its website and how brokers and agents can petition to have this information removed.
Danielle Corliss describes how REALTORS® are conducting business virtually during the COVID-19 pandemic and finding effective ways to stay in touch.
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CONTENTS
ORANGE COUNTY
REALTOR® MAGAZINE
37 The Orange County Housing Update Steven Thomas says housing is experiencing a V-shaped recovery and may prove to be the catalyst for an eventual economic recovery.
40 Property Taxes: Ten Questions for Shari Freidenrich Among other offered tips, Orange County’s Treasurer explains what to do if COVID-19 prevented you from making your second property tax payment on time.
42 Summer Safety: Prepare Now for a Safe Swimming Season Sherri Butterfield encourages readers to check pool safety features, limit unauthorized pool access, teach children to swim, and watch the water!
45 Readers Write: A Home in OCAR In this poem, Affiliate Maureen Crowley describes the ways in which members of Orange County REALTORS® help others find homes and while creating their own “home” together.
Departments
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.ocrealtors.org
2020 OFFICERS Danielle Corliss President Lori Namazi President-Elect Bob Wolff Treasurer Matt Clements Immediate Past President Dave Stefanides Chief Executive Officer
2020 BOARD OF DIRECTORS Olesya Drozdova Joyce Endo Dorinda Francois Michele Harrington Bob Hartman Tim Hayden Len Herman Julie Hile Jeff Jackson
Sherrie LeVan Liz Lewis Chip McAllister Charleen Nagata-Newhouse Joe Pierce Lacy Robertson Adam Rodell Lisa Schulz Jessica Siguenza
Debbie Krumboltz
Scott White
MAGAZINE STAFF Sabrina Blair
Breanna Reed
Sherri Butterfield
Ivan Salmeron
Director of Communications sabrina@ocrealtors.org Communications Specialist sherri@ocrealtors.org
On the Cover Featured on the cover are photographs of the Orange County REALTORS® five new Directors for 2021–2023. They are (from left to right) Lynne Suzanski, Vinil Ramchandran, Eduardo Molina Jr., Matt Cortez, and Pam Pedego. Follow us on social media facebook.com/theocrealtors twitter.com/the_ocrealtors instagram.com/theocrealtors
Online Magazine Love the OC REALTOR®? Did you know that you can read it online, anytime? Read past issues at www.ocrealtors.org/magazine.
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 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 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. The OC REALTOR® (USPS 025-445, ISSN 1945-2179) Volume 11, Issue 4, 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 $3.13 for a one-year (6 issue) subscription to the OC REALTOR® magazine. OC REALTOR® cannot be responsible for unsolicited materials. Publisher: OC REALTORS® Printer: The Monaco Group
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Print & Marketing Specialist ivan@ocrealtors.org
Mission Statement
12 Names in the News 24 Education Central: Upcoming Classes by Track 46 Mentions
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Accounting Administrator breanna@ocrealtors.org
OC REALTOR®
PRESIDENT’S MESSAGE
This issue of OC REALTOR® is primarily about our new Directors, the rapid housing market recovery, conducting the essential business of real estate virtually during the COVID-19 pandemic, and finding ways to stay in touch—even from a distance. By Danielle Corliss 2020 PRESIDENT, ORANGE COUNTY REALTORS®
What’s New
Directors and Graduates
In a May election, Orange County REALTORS® chose five members to fill positions on the 2021–2023 Board of Directors. Elected were Matt Cortez, Eduardo Molina Jr., Pam Pedego, Vinil Ramchandran, and Lynne Suzanski. Congratulations to these new Directors. And congratulations also to Craig Borner, Sherrie LeVan, Lori Namazi, and Evelyn Newey, who were recognized at the Independent Broker Alliance Forum on June 9 as the newest graduates of the Mastery Program sponsored by that Alliance.
The Ability to Remove Some DRE Posts from the Public Record In Part Three of a series of articles based on an interview with Veronica Kilpatrick, District Manager and Southern California Government, Public Interest, and Law Enforcement Liaison for the California Department of Real Estate (DRE), Tiffany Gardner Wood states that the DRE posts online violations of real estate law, some criminal convictions, and family support obligations, and describes how (as of March 2019) brokers and agents can petition to have disciplinary actions removed from the public record. 8
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Coming Soon in Matrix Within one business day of any public marketing of a property, the listing broker must ensure that the listing is in either Active or Coming Soon status. Coming Soon allows listing agents to take up to twenty-one days to stage properties, take interior photos, and prepare properties for showing without accruing Days on Market.
What’s Hot The Weather
The Northern Hemisphere officially welcomed summer on June 20. Although parts of Orange County are experiencing the last vestiges of June gloom, hot weather is on the way. While some vacation spots and resorts have announced plans to reopen in mid-July, the limitations placed on them by social-distancing guidelines probably will mean that much of this year’s summer entertainment will take place in neighborhoods, among families, and around backyard pools. For this reason, Sherri Butterfield says, now is a good time to prepare your home, your pool, and your family members for a safe swimming season.
PRESIDENT’S MESSAGE The weather is not the only thing that’s heating up. Steven Thomas reports that, motivated by record low mortgage rates, buyers are donning masks and gloves, viewing homes, and making offers. Housing is experiencing a V-shaped recovery because demand is soaring. Unlike the Great Recesssion that occurred between 2007 and 2009, when real estate was a delicately balanced house of cards just waiting to topple and the interest rate was 6.36 percent, “this time around,” writes Steven, “housing is built on a strong foundation and may prove to be the catalyst for an eventual economic recovery.” Even though real estate was listed as an “essential industry” in California in late March, requirements for face coverings and social distancing to slow the spread of COVID-19 made it impossible to conduct business as usual. In-person meetings and signings, open houses, and final walk-throughs have had to be reinvented. Orange County REALTORS® has found innovative ways to help its members not only stay in touch with one another but also continue to do business. It has sponsored virtual meetings; made masks, gloves, and other business essentials available for online order and curbside pickup; and offered tools to enable REALTORS® to do the essential business of real estate digitally. In an article titled “Tools to Digitize Your Transactions,” Marissa Hughes explains that Orange County REALTORS® now has programs and applications that enable you to create 3D virtual tours, screen potential clients, manage and submit disclosures, and sign and transmit documents electronically. And in “Hidden Opportunities for Your Downtime,” Michelle McCann suggests ways in which you can not only keep your business running smoothly during these challenging times but also set the stage for future success by keeping in touch—even when you must do so from a distance.
Tax Talk
Property Taxes Orange County Treasurer–Tax Collector Shari Freidenrich answers ten questions about property taxes, including where to look up the amounts of past property tax bills, what to do if you disagree with the assessed amount shown on a tax bill, how to verify that tax payments have been credited correctly, what to do if you were unable to pay your property taxes because of COVID-19, and how to receive information about purchasing delinquent properties at auction.
Proposition 13 In an opinion piece titled “Now Is Not the Time to Gut Proposition 13 and Raise Taxes,” Howard Jarvis Taxpayers Association President Jon Coupal points out that Proposition 13 acts to stabilize the property tax stream, even in years like 2008 and 2009, when there are sharp declines in income taxes and sales taxes, and warns that “loss of Proposition 13 for the business community will be followed quickly by proposals to remove protections for income-producing residential property—apartments—and then owner-occupied single-family homes.”
Closing Thought
In Maureen Crowley’s words, We come together to help people with places. Buying, selling, and fixing up spaces. Yet, as we help others with homes near and far, We’ve created the ultimate home right here in OCAR.
Graphics by Ivan Salmeron
The Housing Market
In an original poem, Affiliate Maureen Crowley observes, But more than the buy and the sell And the helping clients find where to dwell, It’s the care that members share for each other, The same you would for a sister or brother. She goes on to explain how, via Zoom, members of OC REALTORS® are Keeping those connections, showing we care, Even in sweats and ridiculous hair. OC REALTOR®
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THE STATE UPDATE
The California Association of REALTORS® remains committed to vigorously defending policies that bring justice, opportunity, and security for all. By Jeanne Radsick C.A.R. President
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THE STATE UPDATE
“ As a community of professionals working and living through extraordinarily challenging times, we must actively work for real change, and we must make certain that the opportunity to live a free, just, and secure life exists for every individual.” Two years ago, the California Association of REALTORS® (C.A.R.) celebrated the fiftieth anniversary of the signing of the Civil Rights Act of 1968. This signing marked the start of a long— and as-yet unfinished—journey toward granting all individuals equal opportunities with respect to shelter, regardless of race, religion, ethnicity, sexual orientation, or disability. It is a journey we are still treading, a journey that, at times, feels as if it is heading backward. Today, we are in the midst of yet another in a long string of unspeakable tragedies affecting our country: the May 25 death of George Floyd. We are profoundly saddened by this event and by the social unrest currently occurring nationwide, and we repudiate—in the strongest possible terms— the egregious instances of racial injustice that are continuing to occur. These heinous events serve as constant reminders that intolerance and inequality are part of our American experience. And so we are compelled to speak out against events that thrash the values
of inclusion and equality that we espouse, not only for those buying, selling, or renting homes, but for everyone. We cannot remain silent, hoping it will go away. That’s not how it works. As a community of professionals working and living through extraordinarily challenging times, we must actively work for real change, and we must make certain that the opportunity to live a free, just, and secure life exists for every individual. The California Association of REALTORS® remains committed to supporting the dignity and worth of all individuals, and to working vigorously to defend policies that bring justice, opportunity, and security for all.
This column is based on and has been excerpted from the Monthly Message sent by C.A.R. President Jeanne Radsick that was distributed via email on June 1, 2020. It is being reprinted here with permission.
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Photo by Marion Butterfield
NAMES in the NEWS
South Orange County Economic Coalition Fundraiser Features Democratic and Republican Chairpersons On May 28, when the South Orange County Economic Coalition hosted a virtual fundraiser for its Econ PAC 2020, the featured guests were Ada Briceño (lower right), chairwoman of the Democratic Party of Orange County, and Fred Whitaker (lower left), chairman of the Republican Party of Orange County. Asking the questions was President Julie Beeman (upper right), of VCS Environmental, and chairing the program was Dirissy Doan (upper left), government affairs director for Orange County REALTORS®.
What is on the mind of the voters right now? Ada: Feeling safe and moving forward. Fred: We need to open soon and safely. We need to get people back to work.
In view of the economic and other issues associated with the coronavirus pandemic, how will political campaigns need to change? Fred: Political campaigns need to change with the times. We are responding to changing technology and changing circumstances to be able to touch the voters. Ada: We are seeking to build one-on-one relationships. If you are a citizen, you should take every opportunity to vote.
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With the economy now in trouble because of the pandemic, are you concerned about unfunded pensions? Ada: I do not have a response for that question. Fred: We need to get people off unemployment and back to work.
Will the November split-roll initiative further devastate the real estate industry? Fred: Absolutely! Certainty is one of the things that gives the economy strength. Split roll would devastate commercial real estate. I think there will be a strong coalition to oppose it. Ada: We’re for it! We think we need to support our schools and our communities.
What would you say in closing? Ada: We are the future of Orange County. Fred: The Republican view is limited government, limited taxation, and an economy that serves everyone.
NAMES in the NEWS
OC REALTOR® Receives Maggie Awards Recognition in Two Categories The Maggie Awards celebrate publishing excellence and are to magazines what the Oscars and the Grammys are to movies and music. And so it was with great excitement that Orange County REALTORS® learned the September/October 2019 issue of OC REALTOR® had received Awards of Excellence in two categories, Best Non-Paid/Trade and Best Cover/Trade, during the 68th Annual Maggie Awards in late April. Asked about this accomplishment, Orange County REALTORS® Chief Executive Officer Dave Stefanides recalled that the magazine had its beginnings many years ago in a newsletter prepared by a dedicated group of volunteers, who took the pictures and wrote the articles that chronicled the activities of the Association. With the advent of word processing and digital technology, many Associations entrusted responsibility for the layout, printing, and mailing of their newsletters to a publisher in exchange for a share of the advertising revenue collected from their Affiliate advertisers. Then, fifteen years or so ago, many Associations abandoned their print newsletters in favor of electronic versions that could be published for free on the internet, only to see members lose interest and readership plummet. Orange County REALTORS® strongly believed that a good print publication could enhance members’ enjoyment of the membership experience and their perception of value received. “For this reason,” Dave said, “the decision was made to bring the magazine in house, where the Association’s professional staff expanded and improved its content and turned it into what is today a full-color 48-page monograph featuring a wide range of articles.” “For members, especially new members,” Dave continued, “OC REALTOR® is a window into the world of their Association. It is often cited by members as one of their favorite benefits.” Then he added, “You can be the greatest Association in the country, but if members don’t know what you are doing, you might as well do nothing at all.”
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Four Members Graduate from Mastery Program Congratulations to Craig Borner, Sherrie LeVan, Lori Namazi, and Evelyn Newey (not pictured). These four most recent graduates of the Mastery Program sponsored by the Independent Broker Alliance were recognized at the Independent Broker Alliance Forum on June 9. To learn more about the Mastery Program, visit www.ocrealtors.org/mastery.
NAMES in the NEWS
To Meet a Community Need, REALTOR® Helps Organize Food Pantry REALTOR® Sherri Lex of EMH Realty is one of the organizers of the RSM Cares Community Food Pantry. She and Chris O’Connor are working to meet the need for food in the Rancho Santa Margarita community. Chris makes deals with food distributors, and Sherri picks up the donations in her car. The food is given away at the RSM Cares Community Food Pantry on the first and third Wednesday of each month in the parking lot of the Shepherd of the Hills Methodist Church in Rancho Santa Margarita. Before the coronavirus pandemic, the pantry’s biggest day had been serving a walk-up crowd of about 150 people; but on May 6, with the coronavirus shutdown in place, RSM Cares gave out food to 235 cars, some full of people.
LaVal Brewer Named CEO for South County Outreach
Torelli Realty Thanks—and Feeds— Costa Mesa's First Responders On May 19, Torelli Realty joined forces with California Coastal Loans and Wahoo’s Fish Taco to express profound gratitude to first responders on the front lines by providing 250 meals (from Wahoo’s) for the Costa Mesa Police Department and firefighters from six city fire stations. Community involvement is nothing new for Torelli, which has hosted both the annual Christmas Snow Land and the Egg-Citement Easter Celebration for more than thirty-five years. In this photo, the Torelli Realty team is pictured with Wahoo’s Fish Taco owner Wing Lam (second from left).
Names in the News column 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, email it to Orange County REALTORS® Writer and Editor Sherri Butterfield at Sherri@ocrealtors.org.
The Board of Directors of South County Outreach named LaVal Brewer as the new CEO. Brewer replaced Lara Fisher, who retired at the end of June. LaVal, who recently served as Director of Business Development for OneOC, brings to South County Outreach more than three decades of experience in nonprofit management, with more than a decade of experience in executive and development roles.
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IN MEMORIAM
M e m g n i o v r o y L n I of Nancy Hunt
By Sherri Butterfield
(1940–2020)
WRITER AND EDITOR
On Friday, May 8, a brief message posted on Facebook by Scott Hunt read as follows: “My Mamma has joined Pop in Heaven today! Nancy and Bob Hunt are with Jesus and all the friends and family that have gone before them. It is painful, but we celebrate the victory!” With these few words, Scott announced the passing of his mother Nancy Hunt, slightly more than a year after his father, Bob Hunt, had died on March 23, 2019.
could complete his undergraduate studies at Princeton University, which had been interrupted by his stint in the military. And then, they returned to California, where they settled in Lynn Ranch (formerly the Hunt Ranch) in Thousand Oaks.
Nancy and Bob met in 1958 at Santa Barbara’s East Beach when he was a Marine stationed at Camp Pendleton and she was an eighteen-year-old student at Westmont College. Two and one-half months later, they were wed in Santa Barbara and, for nearly sixty years, were partners in marriage, business, and life. In fact, Bob dedicated his book Real Esate the Ethical Way (San Clemente: Bella Vista Publishing Company, 2008) to Nancy, declaring her to be “not only the best person, but also the best REALTOR®” he had ever known. Bob credited Nancy and their mutual Christianity with being the “major shapers” in his life. Nancy attributed her strong Christian faith to an experience she had when she was baptized at the age of nine. “I came up out of the water seeing angels,” she explained. “I knew I was a child of God.”
Photo by Marion Butterfield
Photo by Marion Butterfield
At first, the newlyweds lived at Camp Pendleton while Bob finished his tour of duty in the U.S. Marine Corps. Next, they moved to Princeton, New Jersey, so that Bob
While Bob did graduate work at the University of California, Los Angeles, and taught ethics and philosophy at the University of Redlands, Nancy watched over their young sons, did some geneological research regarding the Hunt family (whose lineage in Santa Barbara dated back to the 1860s), directed a children’s choir, and was instrumental in founding the Historical Society of Thousand Oaks, whose primary project (in 1964) was saving and refurbishing the old Stage Coach Inn located in Newbury Park.
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Photo by Marion Butterfield
IN MEMORIAM
In 1969, the Hunts moved to Redlands, where Bob was chairman of the Philosophy Department at the University of Redlands and Nancy taught music in elementary school, was president of the P.T.A., worked as an administrative secretary at the University, and was an active member of the Redlands Tennis Club. In 1977, the family decided they wanted to live in San Clemente, where they had frequently vacationed. Because there were no philosophy teaching positions available to Bob in the immediate area, he looked for other opportunities. “With no capital and no discernible employable skills,” he once explained in an interview, “becoming a real estate agent was a natural.” So Bob and Nancy Hunt formed a partnership in real estate. They became involved in REALTOR® Associations because they believed that these groups were doing something positive and making a real difference in the industry, and they enjoyed the people they met and the friends they made. Bob was President of the South Orange County Association of REALTORS® in 1988. Nancy served as President of Orange County REALTORS® in 1995 and 1996, and was named Orange County REALTOR® of the Year in 1995.
From 1988 through 2016, Nancy served as a Federal District Coordinator. In this capacity, she worked closely with Pat Bates, Marian Bergeson, Ken Calvert, Darrell Issa, Ron Packard, Mimi Walters, and others on issues that included taxation, fair housing, FHA and VA financing, land use planning, and flood insurance. On May 2, 2018, the California Association of REALTORS® (C.A.R.) honored Nancy with its Key Contact/Federal Political Contact Emeritus Award. In addition to her work in real estate, Nancy was deeply involved in her community. She was one of twenty-five local citizens who helped write the General Plan for the City of San Clemente, and she served on the San Clemente Chamber of Commerce Board of Directors. In 2014, she was honored by the Chamber as its Volunteer of the Year. In 2018, in recognition of the leadership and service both Bob and Nancy Hunt had provided to real estate at the local, state, and national levels for more than twentyfive years, the Orange County REALTORS® Board of Directors voted to rename the Conference Room in its Laguna Hills office The Hunt Room. Nancy was the kind and caring matriarch of a family that included four sons (Trey, Scott, Matt, and George) and ten grandchildren, nine of whom are boys. She was an extraordinary wife, mother, REALTOR®, and friend. She worked tirelessly to leave both people and places better than she found them. The advice former Orange County REALTORS® President Nancy Hunt gave to OC REALTORS® members during the Installation of the 2020 Board of Directors on December 4, 2019, was, “Everybody love each other and treat each other with kindness.” It is the credo Nancy lived by. Hers was a life fully and generously lived, and she is fondly remembered by all who knew her.
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Graphics by Ivan Salmeron
CRMLS UPDATE
COMING SOON IS NOW AVAILABLE IN MATRIX Coming Soon allows listing agents to take up to twenty-one days to stage properties, take interior photos, and prepare properties for showings without accruing Days on Market. Within one business day of any public marketing of a property, the listing broker must ensure that the listing is in either Active or Coming Soon status.
How is Coming Soon similar to Active? • Marketing is allowed in both statuses, so long as Coming Soon listings are clearly marked as Coming Soon. • Both Coming Soon and Active listings are fully displayed to other professional users of Multiple Listing Service (MLS) systems. • The listing agent offers a commission on both Coming Soon and Active listings.
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How is Coming Soon unique? • Coming Soon listings have limited distribution: they will not go out from the MLS to portals like Zillow, Trulia, and Realtor.com, or to IDX broker and agent websites. • Showings are not permitted in Coming Soon. • Because of these limitations, Days on Market do not count in Coming Soon.
CRMLS UPDATE
How do I choose and use the Coming Soon status? • When adding a listing with the Coming Soon status, click on the Status tab and select Coming Soon. • Complete the fields in the Basics, Descriptions, Features, and Land/Terms tabs. Under the Office/MLS tab, you will find the Start Showing Date field. Enter the date (not to exceed twenty-one days from the listing date) and continue entering your listing.
Where can I find the CRMLS Coming Soon form? • You can find the CRMLS Coming Soon form at CRMLS.org > Compliance or by entering https://go.crmls.org/coming-soon-form/.
This article was distributed via email by the California Regional Multiple Listing Service (CRMLS) in late May. It is being reprinted here with permission.
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ELECTION 2020
Californians are feeling the pinch. The Golden State already has the highest income tax rate, highest state sales tax, and highest fuel tax in the nation. In March, California voters rejected a statewide school bond for the first time since the 1990s. And a PPIC poll shows that the state’s residents oppose tax hikes by a two-to-one margin. By Jon Coupal President of the Howard Jarvis Taxpayers Association
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ELECTION 2020
Under California law, proposed initiatives must be presented to the California Legislature in an “informational hearing” open to the public. Legislators do not vote on the proposals because these are initiatives that have already qualified for the ballot. The hearings are mostly for the benefit of policy leaders and the public. Because the infamous “split roll” initiative has now qualified, the Legislature held a hearing in the California Legislature on Thursday [June 4]. I was pleased to be one of the individuals invited to testify and explain our opposition to the measure, which would remove Proposition 13’s protection from most commercial and industrial properties, sharply raising taxes.
Taxpayers are also worried because the proponents of this initiative have openly admitted that raising property taxes on businesses is just the first step in the complete dismantling of Proposition 13. Homeowners are well justified in fearing that the loss of Proposition 13 for the business community will be followed quickly by proposals to remove protections for income-producing residential property—apartments—and then owneroccupied single-family homes. Let me spend a moment to address how this proposal would worsen one of California’s biggest fiscal challenges, volatility of revenue. We are so overly reliant on a handful of wealthy individuals that in boom times, revenues come pouring in, but in recessionary times, the drop is severe.
“Homeowners are well
Howard Jarvis Taxpayers Association is California’s largest taxpayer advocacy organization with more than 200,000 members. We are strongly opposed to this initiative. First, taxpayers are also consumers, and we know that taxes on businesses have an insidious way of trickling down to consumers in the form of higher prices for goods and services. California’s cost of living is already way above the national average, and we do not need to add to that burden for residents who are already struggling to pay the bills.
justified in fearing that the loss of Proposition 13 for the business community will be followed quickly by proposals to remove protections for incomeproducing residential property—apartments— and then owner-occupied single-family homes.”
Even if we resolve the health issues related to the COVID-19 pandemic, higher taxes are the last thing California needs. The state already has the highest income tax rate, highest state sales tax, and highest fuel tax. And when cost of living is taken into account, California has the highest poverty rate in the nation. More important, California is not a low property tax state even with Proposition 13. According to the Tax Foundation, California ranks seventeenth out of fifty states in per capita property tax collections.
Governor Arnold Schwarzenegger created the California Commission for the 21st Century Economy to work on the problem of revenue volatility. They never came up with a solution; but during the Commission’s hearing process, the Legislative Analyst produced a chart that showed high volatility in income taxes, some volatility in sales taxes, and extraordinary stability in the property tax stream.
Indeed, in 2008 and 2009 we had declines in income taxes and sales taxes and in market value of property, but property tax collections actually increased. Why? Because long-held properties, if not sold, continued to see their assessed value rise 2 percent per year, and if sold, they were reassessed to a much higher market value. This initiative will make California’s problem with revenue volatility much, much worse, as properties will be repeatedly reassessed to market value, which sometimes crashes. I’d like to spend a few moments dispelling just two of the many myths about Proposition 13.
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ELECTION 2020
A second myth is that Proposition 13 created some sort of loophole for business properties. But California has always—at least since 1850—taxed all property at the same rate. Proposition 13 did not change that. Also, we often hear the assertion that, during the campaign in 1978, voters were not informed that Proposition 13 protections would be extended to business properties. Not true. The opponents hammered that argument throughout the campaign and, specifically, in the official ballot pamphlet itself. The fact is that in 1978 voters intended to provide businesses with the same stability and predictability in their property taxes that homeowners desired. Finally, we think it’s pretty clear that Californians already believe themselves to be overtaxed. In March, voters rejected a statewide school bond for the first time since the 1990s, and 142 of 237 local taxes and bond proposals, 60 percent, failed in the last election cycle. Further confirmation comes from the just-released Public Policy Institute of California (PPIC) poll, which shows that Californians oppose tax hikes by a two-to-one margin. It’s clear that the residents and businesses of this state are taxed enough already.
This article was published in the Orange County Register on Sunday, June 7, 2020 (see page H5) and distributed via email to members of the Howard Jarvis Taxpayers Association on Monday, June 8, 2020. It is being reprinted here with the expressed written permission of HJTA President Jon Coupal.
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“
Measured in constant dollars, per-pupil spending is approximately 30 percent higher now than it was in the mid-70s, a time when there was broad agreement that schools in California were some of the very best.” Graphics by Ivan Salmeron
First, an often-heard but false argument is that Proposition 13 caused a reduction of per-pupil spending on education. In fact, per-pupil spending in elementary and secondary public schools in California has risen nearly every year and is far higher today than it was during the 1970s. Measured in constant dollars, perpupil spending is approximately 30 percent higher now than it was in the mid-70s, a time when there was broad agreement that schools in California were some of the very best.
COVID-19
GUIDANCE FOR THE USE OF FACE COVERINGS Effective June 18, 2020
The California Department of Public Health released updated guidance that requires Californians to wear a face covering in high-risk settings starting on June 18, 2020. A growing body of scientific research has shown that people with no or few symptoms of COVID-19 can still spread the disease and that the use of face coverings, combined with physical distancing and frequent hand washing, will reduce the spread of COVID-19. The face covering guidance mandates the use of face coverings by the general public statewide when outside the home, with limited exceptions.
• Inside, or in line to enter, any indoor public space; • In any room or enclosed area where other people are present and are unable to socially distance; • While outdoors in public spaces when social distancing is not feasible; • Engaged in work, whether at the workplace or performing work off-site when interacting with any member of the public.
The following individuals are exempt from wearing a face covering: • Children aged two and under; • Persons with a medical, mental health, or developmental disability that prevents wearing a face covering; • Persons who are hearing impaired, or communicating with a person who is hearing impaired, where the ability to see the mouth is essential for communication; • Persons who are seated at a restaurant or other establishment that offers food or beverage service, while they are eating or drinking; • Persons who are engaged in outdoor work or recreation such as swimming, walking, hiking, bicycling, or running, when alone or with household members, and when they are able to maintain a distance of at least six feet from others.
Graphics by Ivan Salmeron
Californians must wear face coverings when they are in the presence of individuals who are not a part of their household. Some examples of these situations include:
More information about the State's COVID-19 guidance can be found on the California Department of Public Health's Guidance web page (cdph.ca.gov/covid19) under the heading Guidance Documents: Coronavirus Disease 2019 (COVID-19). OC REALTOR®
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Navigating Your Risks: A Three-Part Interview with Veronica Kilpatrick from the Department of Real Estate
Graphics by Ivan Salmeron
RISK MANAGEMENT
Part Three: Removing Disciplinary Action from the Public Record
The DRE posts online violations of real estate law, some criminal convictions, and family support obligations. As of March 2019, it is possible for brokers and agents to petition to have certain disciplinary actions removed from the public record. By Tiffany Gardner Wood Risk Manager 26
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During the Orange County REALTORS® RExpo in September 2019, I had an opportunity to interview Veronica Kilpatrick, who was representing the Department of Real Estate (DRE) at that event. Veronica received her Bachelor of Arts from the University of California, Los Angeles, and her Master of Public Administration from the University of Southern California. She has been with the DRE since 2007 and currently serves as the District Manager and Southern California Government, Public Interest, and Law Enforcement Liaison. In this capacity, she is responsible for supporting the Deparment’s mission to safeguard and promote the public interests in real estate matters through licensure, regulation, education, and enforcement in this geographic jursdiction. Veronica answered questions about real estate advertising, Department audits, and discipline removal. This article, the third and final one in a three-part series, deals exclusively with removing disciplinary action from the public record.
What sorts of violations might cause a disciplinary action to be posted on a real estate license? • Violations of Real Estate Law which result in a suspension, restriction, revocation, public reproval, Desist and Refrain Order, or Bar Orders. • Some criminal convictions which result in restriction, revocation, or Bar Orders. • Administrative Actions or Investigations that result in the voluntary surrender of a license. • Licenses suspended under the provisions of Section 17520 of the Family Code (Support Obligations) and/ or the provisions of Section 11350.6 of the Welfare and Institutions Code (Support Obligations).
Once a disciplinary action has been posted, is it possible to have it removed from the public record? Prior to January 1, 2018, the DRE lacked the statutory authority to remove license discipline history from its website. With the enactment of AB 2330 (RidleyThomas), the Legislature granted the DRE effective March 7, 2019, the authority to remove license history information from its website. Pursuant to Regulation 2915 of Title 10 Chapter 6 of the California Code of Regulations and its accompanying regulations, the DRE may remove license history information from its website if (a) the Commissioner finds that the licensee no longer represents a credible risk to California real estate consumers; (b) the licensee’s license history is more than ten years old; (c) the licensee’s license is in good standing; and (d) the licensee tenders the requisite petition fee.
What must a real estate licensee do to have a posted disciplinary action removed? The licensee must have a license in good standing; more than ten years must have passed since the licensee’s disciplinary history was posted on the DRE’s website; and the licensee must tender the requisite petition fee of $1,275 and submit a petition to remove discipline history, including submitting a set of classifiable fingerprints using a Live Scan Service Request form (RE 237). The reference to “good standing” means that the licensee must have a plenary or unrestricted license. If the licensee has a revoked or restricted license and wants to remove his or her disciplinary history from the DRE’s website, he or she will need to petition to reinstate the revoked license or remove the restriction on the restricted license. Licensees seeking to obtain a plenary license and remove discipline history from the DRE’s website may submit both petitions concurrently and need tender only a single petition fee of $1,275 for both petitions.
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RISK MANAGEMENT Who is eligible to request removal? Licensees who are ten years from the effective date of their discipline can apply by submitting the Petition Application, the fee, and their fingerprints. For a complete description of the review criteria and processing requirements, see Business and Professions Code Section 10083.2 and Regulation 2915 along with the relevant rehabilitation criteria described in Regulations 2911 and 2912.
What is the process for requesting and obtaining removal? To assist licensees, the DRE has prepared a Petition Application form (RE 506E) that contains all the required information. Licensees are encouraged to use this form and to submit it to the Department with the fee and a Live Scan Service Request form (RE 237).
What criteria for rehabilitation apply where a petitioner seeks removal of discipline information stemming from a Statement of Issues or where the petitioner’s license discipline stems from an original application for a license? In these instances, the criteria for rehabilitation set forth in Section 2911 of these Regulations will apply. The criteria for rehabilitation set forth in Section 2912 of these Regulations will apply where a petitioner seeks removal of discipline information from the Department’s website stemming from an Accusation, surrender of a license, or other discipline actions ordered by the Commissioner except for a Statement of Issues.
What additional items must a petitioner submit to the Department? (1) A list of petitioner’s criminal convictions since the date of the most recent Department-imposed license discipline for which the petitioner seeks removal from the website, including information that identifies the date of the court action and the court and jurisdiction where the conviction occurred. (A) “Conviction” includes all state, commonwealth, and possession, federal, military, and foreign convictions. “Conviction” includes a verdict of guilty by judge or jury or a plea of guilty, of nolo contendere, or of no contest. A petitioner must disclose all convictions whether the plea or verdict was set aside, the conviction against the petitioner was dismissed or expunged, or the petitioner was pardoned. (B) For the purposes of this petition process, “conviction” does not include convictions for infractions or convictions under Section 11357(b), (c), (d), or (e) of the Health and Safety Code, or under Section 11360(b) of the Health and Safety Code, if more than two years have passed since the date of the conviction.
(2) A list of all petitioner’s professional license discipline since the date that the Department imposed the most recent license discipline action for which the petitioner seeks removal from the website. Disclosed license discipline must include surrender of a license whether or not an investigation was pending, whether in California or elsewhere. Each item on this list must include the date of discipline, the license type, and the jurisdiction in which the discipline was ordered.
(3) A list of all criminal, civil, or license discipline actions currently pending against petitioner, including the jurisdiction in which the action is pending.
(4) A signed attestation by the petitioner that petitioner certifies (or declares) under penalty of perjury under the laws of the State of California that the information provided as part of the petition is true and correct.
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RISK MANAGEMENT
What must the petitioner submit before the Department considers the petition complete? Before the Department considers the petition complete, the petitioner must submit the following items:
(1) A fee in the amount of $1,275.00 with each petition. This petition fee is deemed earned by the Department upon receipt and is not refundable. A petitioner may petition concurrently, when eligible, for reinstatement of a license, or for removal of restrictions from a license, without additional charge. A petitioner may request removal of more than one eligible discipline action from the website with a single petition, without additional charge.
(2) A petitioner, or a broker-officer of a corporate petitioner, who resides in California must submit a completed copy of a Live Scan Service Request, Form RE 237 (Rev. 7/18), hereby incorporated by reference, completed not earlier than thirty days before the date of submission of the petition to the Department.
(3) Evidence of rehabilitation to the Commissioner indicating that the posting of discipline is no longer needed to prevent a credible risk to members of the public. A petitioner may provide with the petition copies of any documentary evidence that supports petitioner’s claims regarding rehabilitation, including, but not limited to, documentation evidencing expungement of criminal convictions and documentation of completed restitution, if applicable.
In evaluating a petition, what does the Commissioner take into consideration other than violations that present a credible risk to the members of the public since the posting of discipline requested for removal? When assessing the credible risk to members of the public utilizing licensed activity by the petitioner, the Commissioner takes into consideration any evidence gathered from an investigation that reflects on petitioner’s propensity to honestly and to fairly engage in activities requiring a real estate license. For purposes of this subsection, a “credible risk” may exist if any of the following circumstances apply:
• Petitioner is currently registered pursuant to the provisions of Section 290 of the Penal Code. • Petitioner is currently on probation or parole. • Petitioner’s license is currently subject to restrictions, and a concurrent petition to remove those restrictions is not granted. • There is any professional license discipline on petitioner’s Department record that is based on an offense that resulted in harm to a client or other consumer in a real estate transaction. • Petitioner does not make himself or herself reasonably available for interview by the Department investigator in the course of the petition investigation. • Petitioner has not reimbursed the Department for payments made from the Consumer Recovery Account associated with a claim filed wherein the petitioner was the judgment debtor.
What happens if the Commissioner grants the petition for removal of discipline? If the Commissioner grants the petition, the Commissioner will order removal of the eligible discipline item or items from the licensee’s entry in the Public License Information feature on the website.
What happens if the Commissioner denies the petition for removal of discipline? If the Commissioner denies the petition for removal of discipline from the Public License Information website feature, the entry on the website remains unchanged and the petitioner may not submit a new petition for its removal for a minimum of one year from the effective date of the denial.
If the licensee submits a petition and the petition is denied, is the petition fee refundable? No, the petition fee is not refundable. This fee is deemed earned by the Department upon receipt and not refundable or transferable and does not guarantee approval of petition. This article is the third in a three-part series based on an interview with Veronica Kilpatrick. Part one, titled “Real Estate Advertising,” appeared in the November/ December 2019 issue of OC REALTOR® on pages 42–45. Part two, titled “Audits,” appeared in the January/ February 2020 issue on pages on pages 36–39.
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COVER STORY
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COVER STORY
Introducing Your New Directors for 2021–2023
The ballots have been cast and counted, and five REALTORS® have been elected to serve as members of the 2021–2023 Orange County REALTORS® Board of Directors. By Sherri Butterfield WRITER AND EDITOR Beginning on Monday, May 11, and concluding on Tuesday, May 26, REALTOR® members of Orange County REALTORS® voted to choose five from among fifteen candidates to fill three-year positions on the 2021–2023 OC REALTORS® Board of Directors. The fifteen candidates (in alphabetical order by last name) were Candice Burroughs, Mary Jane Cambria, Matt Cortez, Olesya Drozdova, Lisa Dunn, Dorinda Francois, Tim Hayden, Bob Hartman, Lata Jobanputra, Jerry Koller, Eduardo Molina Jr., Pam Pedego, Vinil Ramchandran, Lynne Suzanski, and Cindy Uhrik. Their photos, statements, and bullet-point résumés appeared on pages 18–23 in the May/June issue of OC REALTOR®. Elected were Matt Cortez, Eduardo Molina Jr., Pam Pedego, Vinil Ramchandran, and Lynne Suzanski.
Matt Cortez In 2014, while working in property management, Matt Cortez decided to obtain his real estate license. Two years later, he joined Orange County REALTORS®. A 2018 graduate of the OC REALTORS® Leadership Academy, Matt served as a trustee on the OC REALTORS® Political Affairs and Elections Committee in 2018 and 2019, is a key contact for Assembly Woman Cottie Petri-Norris, and currently chairs the OC REALTORS® Local Government Relations North Committee. Matt says that the real estate industry is facing unprecedented challenges, including governmental regulations, the way in which COVID-19 is affecting the economy, and disruptors who are attempting to use technology to displace and replace REALTORS®. Matt wants to make certain that REALTORS® “stay focused and tackle these challenges for the benefit of our clients, our community, and our industry.” He adds, “We need to convey the value that REALTORS® bring to the community, and we need to be actively engaging with our local political leaders so we can educate them regarding smart and effective real estate policy.”
Eduardo Molina, Jr. After college, Ed Molina went to work for Hughes Aircraft Company. Long interested in real estate, he obtained his license in 1992 and, in that same year, joined Orange County REALTORS®. At first, he worked as a part-time agent; however, about twenty years ago, he left corporate America and began selling real estate full time. Of this experience he says, “Real estate has given me great opportunities with my life, my family, and my community.” Ed says that, during his real estate career, he has been blessed to work with extraordinary brokers and business partners, including Bob and Nancy Hunt, Kim Schleicher, and Jeff Tiss, “who were guided by faith, best practices, and the Golden Rule, and who taught me many things about real estate and about life.” One of the reasons Ed sought a position on the Orange County REALTORS® Board of Directors was that he believed “it was time to give back.” As a new Board Member, Ed looks forward to working with the other Directors and with the Executive Team to increase agent participation, which he views as essential. “Through this recent turn of events,” he says, “we have realized that we all must welcome change and be able to adapt.” He wants more REALTORS® to “view real estate as a profession and to be passionate about being able to make the dream of homeownership become a reality.” OC REALTOR®
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COVER STORY
Pam Pedego In 1978, because Pam Pedego could not find a full-time teaching job and needed to support her family, she obtained her real estate license and became a member of Orange County REALTORS®. During her more than forty years with the Association, she has served on multiple committees, including both the Professional Standards Committee and the Education Committee. For more than twenty years, she has been a California Association of REALTORS® (C.A.R.) Director. Pam explained that she sought a position on the Orange County REALTORS® Board of Directors because she “wanted to serve the organization that has served me well for so many years.” She adds, “I am ready to put my knowledge, experience, and expertise to work for Orange County REALTORS® once again.” What asked to name the greatest challenge—or biggest threat—that REALTORS® face today, Pam responded, “Our greatest threats are economic trends, legislation that does not serve private homeownership, and competing busines models.” She believes that education is the key to preparing REALTORS® to cope with these threats of today and to meet the challenges of tomorrow. And she wants to see a stronger focus on the REALTOR® Code of Ethics as a way of improving communication and increasing cooperation.
Vinil Ramchandran Vinil Ramchandran owns a consulting business in which he works with business and real estate owners. He obtained his real estate license in 2015 “to learn more about an industry I was passionate about and to assist some clients with transactions as a side gig”; however, the “side gig” very quickly developed into a full-time venture, and Vinil developed a niche in business brokerage. In 2015, Vinil became a member of Orange County REALTORS® and readily confesses that he “joined the best Association by sheer luck.” Vinil, who has served on the Grievance Committee for three years and spent this past year as a cadet in the Leadership Academy, says that
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he was encouraged to run for a position on the Board by other members of the Association. He confesses that two of his goals in doing so were “to help prepare our Association for a strong future” and “to prepare our members for the new challenges our industry faces.” Asked to be more specific about some of those challenges, Vinil replied, “We face many challenges, ranging from disruptive technology and legislation that is unfriendly to property owners and REALTORS® to COVID-19 and its economic impacts. We need to educate our members to ensure that we provide clients with a very clear value proposition of the REALTOR® brand. We also need to stay active on the political front to support legislation that promotes property ownership and development.”
Lynne Suzanski Lynne Suzanski obtained her real estate license in 1997. She chose this career path because she thought she could do the job and still make time for her family. Her two children were in high school, and she believed that her flexible real estate work schedule would allow her to be involved in their sports activities. And because she was an avid golfer, she also wanted to ensure that she could carve out time now and then to play eighteen holes. As soon as Lynne received her license, she joined Orange County REALTORS®. At the time, she was a legal immigrant from Canada. In 1999, she became a naturalized citizen of the United States of America and says, “That was a very proud moment in my life.” Asked why she sought a position on the Orange County REALTORS® Board of Directors, Lynne said that she believed her position as both a REALTOR® and an Affiliate would give her a unique perspective. “I felt it was time that I got more involved,” she explained. Then she added, “I want to ensure that, as an Association, we continue to keep everyone safe and informed about the changes we all face.”
COVER STORY
By Marissa Hughes
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Graphics by Ivan Salmeron
S
ince social distancing guidelines were first announced in mid-March, REALTORS® have had to find new ways to show property and complete transactions. In-person meetings and signings, open houses, and final walk-throughs are all being reinvented. Luckily, digital technology can help! And products like Asteroom, Glide, DocuSign®, and RentSpree can keep you on top of the digital game.
Asteroom
Glide Forms If disclosures are a cumbersome part of the transaction for you, check out Glide! Glide Forms is an electronic system developed by Glide and zipLogix® to collect the Transfer Disclosure Statement (TDS), the Seller Property Questionnaire (SPQ), the Agent Visual Inspection Disclosure (AVID), and other disclosure forms securely online. Glide Forms replaces today’s dense PDF and paper forms with an easy-to-use, step-by-step online wizard experience. Glide Forms is available to all members of OC REALTORS®. Learn more at www.ocrealtors.org/glide.
DocuSign®
Save time when you DocuSign®! There is no need to print, sign, scan, and email anymore! Instead, use DocuSign® to make the transaction easier for you and for your clients. DocuSign® is a digital signature solution that allows you to send and receive electronically signed California Association of REALTORS® (C.A.R.) Standard Forms through zipForm® Plus. This could be the key to closing the deal and helping your clients find a new home. As a member of the National Association of REALTORS® (NAR), you qualify for discounted pricing on DocuSign® at www.docusign.com/nar.
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RentSpree If you manage property, RentSpree will simplify your life. It is a tenant-screening tool that enables you to obtain a comprehensive application package for each applicant quickly and easily. With RentSpree, you will receive a credit report and score, criminal background check, fifty-state eviction history, completed rental application, and tenant identity verification for each applicant. Supply the applicant’s email address, and he or she will receive an invitation to complete the application. Although the applicant is required to pay a $30 fee, there is no additional cost to you! To create your free account, visit www.ocrealtors.org/rentspree. For Up-to-Date Information Guidelines for social distancing and for reopening Orange County businesses were being discussed, reviewed, and revised while this issue of OC REALTOR® was being prepared for publication. To be certain that you are familiar with and are following the most up-to-date guidelines, visit the website maintained by the Orange County Health Care Agency at www.ochealthinfo.com or call the COVID-19 Hotline at 833-426-6411.
Photos: www.istockphoto.com/ ilkercelik
Social distancing guidelines can make showing houses a little trickier than it was before the pandemic. One answer is to create a 3D virtual tour using Asteroom! Asteroom is a kit that attaches to your smartphone and allows you to create a 3D virtual tour of a home in just minutes. 3D virtual tours comply with social distancing guidelines and are a great way to get more eyes on your listings! If you are a member of OC REALTORS®, you have access to exclusive discounted pricing at www.ocrealtors.org/asteroom.
Photos: www.istockphoto.com/ Inside Creative House
Graphics by Ivan Salmeron
COVER STORY
By Michelle McCann
MARKETING AND PROGRAMS PROJECT MANAGER OC REALTOR®
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Although REALTORS® were deemed essential during the coronavirus pandemic, it certainly hasn’t been business as usual. How can you utilize potential downtime to implement new tactics for creating and maintaining clients? REALTORS® (and Affiliates) can develop strategies not only to help them keep their business running during difficult times but also to set themselves up for success in the future. Here are a few hidden opportunities to help you keep your business moving forward.
Continue to Connect
Being a REALTOR® is often about building and sustaining relationships. In real estate, human interaction is as important as buying and selling. Kick-start the connections you built with your sphere of influence before the pandemic by reaching out. Send an email, write a text message, drop a card in the mail, schedule a video chat or FaceTime call—whatever you are comfortable with. Reach out to your friends, family members, and people in the community to ask how they have been doing and what they have been doing. You might even mention the real estate market if it feels appropriate, but be weary of coming off as too salesy or insincere in your concern for their well-being. If they have or will be considering a transaction soon, your name will likely be top of mind!
Share on Social Media Time spent on social media has increased drastically because of stay-at-home orders and the pandemic. Capitalize on this captive audience. Build relationships and rapport on social media by posting up-to-date information about the virus, the current state of the housing market, community updates, ways to support local businesses, or any other newsworthy information. Make sure that you are commenting on your followers’ posts and sharing their content as well. It is important to continue to engage with your social media community and remain in their minds as a resource.
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Ask for Reviews Because you are connecting more with your sphere of influence and social media followers, now is the perfect time to ask for reviews. You have their attention, and the influence of testimonials can be a powerful hook for future clients. It is probable that your past clients will be sensitive to their fellow community members getting back to work and will be happy to share their personal experiences and give you a little shout-out. You need only to reach out and ask!
Fill in Your CRM Gaps Your customer relationship management (CRM) software is important. It should track your client interactions, categorize leads, and pinpoint new opportunities. Use any downtime to fill in the gaps. Your communications with your clients will be more personalized if you have their birthdays, closing dates, social media handles, children’s and pet’s names, or any other personal information that will help you customize your interactions with them.
Create Email Drip Campaigns Once you have filled in as much information about your clients as you can, start building email drip campaigns. Instead of blasting emails and listings to every single contact, send automated emails that are relevant to a specific kind of lead. What sorts of things do your new clients want to hear from you? How is that different from the kind of emails past clients will respond to? It is possible to build a welcome email series for new clients and a different email series for past buyers or potential sellers. Every CRM has features to help you start your email drip campaign, and the possibilities are endless.
Graphics by Ivan Salmeron
THE ORANGE COUNTY HOUSING UPDATE
Recovery Motivated by record low mortgage rates, buyers are eagerly jumping back into the Orange County housing market.
By Steven Thomas
REPORTSONHOUSING.COM
OVID-19 has impacted the economy across the board. Before this coronavirus struck, the economy was pumping on all cylinders. Consumer confidence, consumption, unemployment, housing, stocks, leading economic indicators—everything was pointing to a phenomenal 2020. When news of the virus broke, every chart was impacted severely. And housing was no exception.
C
soaring. Demand more than doubled from mid-April, its lowest point in the pandemic, to the start of June. How can that be? The sleeping giant has awakened. Even though life as everybody knew it has been turned upside down and California has only begun to reopen, record low interest rates are stimulating demand. Donning masks and gloves, buyers are viewing homes once again and making offers.
Experts have been debating what the economic recovery will look like. Initially, some were calling for a quick rebound, a V-shaped bounce. That is when the economy rises nearly as fast as it fell. Yet, with more time to reflect on all the data, most experts now agree that the overall economy will experience a U-shaped recovery— one that, after hitting bottom, will slowly but surely turn upward. The best analogy is a dimmer switch. As the dial is slowly turned, the economy will continue to accelerate until it is pumping on all cylinders once again.
Before the stay-at-home order was issued in midMarch, housing was a sizzling-hot Seller’s Market with extraordinarily little inventory and unbelievably high demand. It was the hottest start to a Spring Market since 2013, a spring to remember for Orange County housing. Low mortgage rates, averaging 3.75 percent, were stoking the fires of demand. When the virus hit, demand plummeted, and the market slowed.
Housing is proving to be the exception and is currently experiencing a V-shaped recovery because demand is
It has been several months since the coronavirus arrived; and so far, practicing social distancing and wearing masks have succeeded in flattening the curve. Slowly but surely, more of the economy is coming back
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THE ORANGE COUNTY HOUSING UPDATE
Figure 1. Typically, by June, demand has already peaked and does
Figure 2. Surging demand is outpacing the rise in supply, which has
not change much at all; but this year, demand is in recovery mode, and the sharp increase indicates that it is V-shaped.
caused the Expected Market Time to tumble from 118 days to 67 days, a slight Seller’s Market. Last year, the Expected Market Time at the beginning of June was 84 days.
online. As a result, buyers who had been sitting on the fence waiting to purchase are jumping back into the market and are eager to take advantage of record low mortgage rates at 3 percent. From mid-April to the start of June, demand (the past thirty days of pending sales) jumped from 1,172 to 2,239, a 91 percent rise. Demand was last at that level in mid-February, the beginning of the Spring Market. Typically, by June, demand has already peaked, and it does not change much at all. Not this year. Demand is in recovery mode, and the sharp increase indicates that this recovery is V-shaped (see Figure 1). While some thought the housing market would take a major hit because of the coronavirus, that could not have been further from the truth. The lowmortgage-rate environment is a catalyst that has reignited demand. Despite furloughs and unimaginable unemployment, local real estate is revving its massive engine once again. Many are wondering where the
demand is coming from. A lot of people are still gainfully employed and both willing and able to purchase. With rates at a record low, home affordability has dramatically improved from earlier in the year. The market was hot back then, and it is no wonder that it is heating up again. The active inventory climbed by 15 percent from midApril to the start of June, close to the five-year average of 14 percent during the same time of the year. The inventory remains at lows last seen in 2013. Surging demand is outpacing the rise in supply, which has caused the Expected Market Time (the time between hammering in the For Sale sign and opening escrow) to tumble from 118 days to 67 days, a slight Seller’s Market (between 60 and 90 days). That is a market where sellers get to call more of the shots, yet home values are not changing much at all. Last year, the Expected Market Time at the beginning of June was 84 days, much slower than it is this year (see Figure 2). This development in housing has proven that the housing market is extremely resilient and a bright spot in the economy. Buyers can expect housing to continue to improve as demand continues to rebound, stoked by record low 3 percent mortgage rates. This is not
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“This time around,
housing is built on a strong foundation and may prove to be the catalyst for an eventual economic recovery.
”
the Great Recession when real estate was a house of cards ready to collapse. Back then, real estate was a bubble fueled by mass speculation, subprime lending, pick-a-payment plans, a wave of cash-out refinancing, zero down payments, and fraudulent lending practices. Mortgage rates were at 6.35 percent. That was then, this is now. The current housing stock is built on tight lending requirements. Buyers had to prove that they could afford the monthly mortgage payment. There are very few cash-out refinances, large down payments are the norm, and there is plenty of nested equity. This time around, housing is built on a strong foundation and may prove to be the catalyst for an eventual economic recovery. 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.
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PROPERTY TAXES
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Questions
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Orange County’s Treasurer explains what to do if COVID-19 prevented you from making your second property tax payment, how to appeal the amount of a property tax assessment, where to look for Mello-Roos property tax information, and how to receive information about purchasing delinquent properties at auction.
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What should I do if I was not able to pay my property taxes because of COVID-19? If you have not been able to pay the second installment of your property taxes (which was due on February 1 and delinquent after April 10) because of COVID-19, you may qualify to have your penalties cancelled and to pay only the base tax amount. View the details at ttc.ocgov.com.
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What if I disagree with the amount shown on my tax bill?
If you believe your secured or unsecured property tax bill has a higher assessed value than the current market value, either contact the Assessor’s Office for an informal review or complete an appeal by November 30. But be aware that, if property taxes are not paid timely during an appeal and if the appeal is denied, penalties for delinquency are charged and liens may be filed.
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What penalties are charged for delinquent taxes?
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Where can I look up the amounts of past property tax bills?
Graphics by Ivan Salmeron
For Shari Freidenrich
Delinquent taxes incur a delinquent fee of 10 percent and interest charges of 18 percent annually, and liens may be placed on unsecured property for taxes that are delinquent.
You can view or print your past ten years of property tax bills and your past two years of property tax payments online at ocgov.com/octaxbill.
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How can I verify that all the taxes on my secured and unsecured properties have been paid or that the amounts I paid have been credited correctly? Go to ocgov.com/octaxbill. There, you can search for information about secured property by assessor’s parcel number (APN) and address, or search for information about unsecured property by business name or tax collector reference number (TC Ref #).
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How can I receive payment reminders and updates?
To receive emails or texts with property tax information, register your email address and/ or cell phone number. For secured property tax information, register at ocgov.com/octaxreminder. For unsecured property tax information, register at ocgov.com/ocunsecuredreminder.
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What if I need to change the address shown for a business or need to change the ownership listed for unsecured property? If you are moving, update your business address by completing a change of address form to ensure that your property tax bills are mailed to your current address so that you can make timely payments. Be aware that secured property taxes are prorated, but unsecured property taxes are not. Thus, the owner of unsecured property (e.g., business equipment, boats, aircraft, etc.) on January 1 is responsible for 100 percent of the unsecured property tax even if he or she sells that property on January 2.
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I own a business with property tax payments of more than $50,000 annually. What method should I use for paying these taxes? State law requires that payments of more than $50,000 be made electronically. We offer businesses automated clearing house (ACH) payment options if you cannot pay by eCheck (no service fee) on our website. Contact us at treasurer@ttc.ocgov.com for an application. EChecks receive same-day credit, and a detailed receipt by parcel (use our cart function for up to fifty bills per payment type) can be printed or emailed and may be made until midnight on the last timely payment date. Note that payment on our website is not updated for two days, and it may take two to three days to be debited from your bank account.
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Where can I view parcels and learn which ones are subject to Mello-Roos taxes or have Property-Assessed Clean Energy (PACE) loans? You can view all of your secured parcels on a geographic information system (GIS) map with a link to the property tax bill at either mello.ocgov.com, where properties with either Mello-Roos or PACE loans are identified with a special icon, or ocgov.com/octaxmap. This is a valuable resource for both REALTORS® and potential homeowners!
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How can I receive information about purchasing delinquent properties at auction? Register your cell phone number and/or your email address to receive texts or emails with property tax auction information (properties with at least one property tax installment payment delinquent for more than five years) at ocgov.com/octaxauction.
For additional property tax information, check the Frequently Asked Questions (FAQs) posted online at ttc.ocgov.com, send an email to ttcinfo@ttc.ocgov.com, call a customer service representative (between 9:00 and 5:00 daily, except on holidays) at 714-834-3411, or contact Orange County Treasurer Shari Freidenrich directly. To receive Shari’s Dollar$ and Sense eNewsletter, send a text to OCTreasurer at 22828. Shari Freidenrich earned a Bachelor of Arts in Business Administration with an emphasis in accounting from Washington State University summa cum laude. In 1982, she became a Certified Public Accountant (CPA). From 1998 to 2010, she served as treasurer of Huntington Beach. In 2010, Shari was elected Orange County Treasurer–Tax Collector. During a decade in this office, she has implemented practices that have saved taxpayers more than $900 million.
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PREPARE NOW
FOR FOR A A SAFE SAFE
SWIMMING SEASON
“Mother, may I go out to swim?” “Yes, my darling daughter. Hang your clothes on a hickory limb, But don’t go near the water.”
By Sherri Butterfield
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Graphics by Ivan Salmeron
SUMMER SAFETY
SUMMER SAFETY
These words from a familiar nursery rhyme acknowledge our ambivalence about water as something that is both attractive and dangerous. Water is attractive. Because of the mild weather, Southern California has long been a place where people swim year-round—whether in pools, ponds, streams, lakes, and rivers or in the ocean. Water looks beautiful, cools the skin when the sun is hot, and provides a feeling of buoyancy that makes cares and concerns seem to float away. But water is also dangerous. Water can cause suffocation by submersion—that is, drowning. Drowning can occur in as little as 20 seconds and will occur within three minutes, often without a sound. Drowning affects children, teens, and adults. It is the leading cause of accidental injury and death in children under the age of five and the second leading cause of death in children under the age of fourteen. Yet adults fifty years old and older account for more than 50 percent of the drownings each year.
1. An enclosure that isolates the pool or spa from the home; 2. Removable mesh fencing in conjunction with a self-latching, self-closing gate that can accommodate a key-lockable device; 3. An approved safety cover; 4. Exit alarms on the home’s doors that provide direct access to the pool or spa; 5. A self-closing, self-latching device with a release mechanism placed at least 54 inches above the floor on the door of the home that provides direct access to the pool or spa; 6. An alarm placed in the pool or spa that will sound upon detection of accidental or unauthorized entry; or 7. Other means of protection if determined to be equal to or greater than what is afforded by these six safety features.
Fortunately, drowning is preventable. Because of the guidelines associated with the coronavirus pandemic, club, community, and neighborhood pools in Orange County have been closed since mid-March. Although the Board of Supervisors gave the go-ahead for pools in Orange County to reopen in mid-June, social-distancing requirements may sharply limit the numbers of people that can be accommodated in these pools. For this reason, much of this year’s summertime swimming is likely to take place in backyard pools. If you have not already done so, now is the time to prepare your home, your pool, and your family members for a safe swimming season. Prepare your home. California’s Pool Safety Act, which became effective on January 1, 2018, requires that, when a building permit is issued for the construction of a new swimming pool or spa or the remodeling of an existing pool or spa at a private single-family home, that pool or spa be equipped with at least two of the following safety features:
Even if you are not constructing or remodeling, consider installing one or more of these safety features. You can find them in either hardware or pool supply stores, or you can view and shop for them online. If you have already installed safety features, inspect them to be certain that they are in good repair and that latches, locks, and alarms work properly. Prepare your family. Learn to swim and teach your children to swim. The Centers for Disease Control and Prevention says that participation in formal swimming lessons can reduce the likelihood of a childhood drowning death by 88 percent. Also, brush up on rescue and lifesaving techniques—including cardiopulmonary resuscitation (CRP). Prepare your pool area. In addition to placing umbrellas and lounge chairs on the deck, mount a lifesaving ring, a shepherd’s hook, and a CPR sign near your pool. And keep a working phone close by to summon help quickly in an emergency.
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SUMMER SAFETY
Supervise. Supervise your pool when it is in use and your children when they are in water. Do not rely on either swimming lessons or flotation devices to make any child “water safe.” Constant supervision of children around water is critical, and a supervising adult should always remain within arm’s reach of any very young child who is in water. When members of your family swim in a hotel, club, community, or neighborhood pool, remember that lifeguards are not babysitters and keep your eyes on your own child. Regardless of where you swim, when swim time is over, be diligent about ensuring that children come out of the water and that they do not reenter unnoticed or unsupervised. Designate Water Watchers. When you host pool parties, ask responsible adults to take turns supervising the pool or spa area and make the assignment official by giving each one of them a Water Watcher tag to wear while they are on duty. Water Watchers agree to keep their eyes on the pool at all times and not allow themselves to be distracted by their cell phones or by the conversation of other party guests while on duty.
“canDrowning occur in as little as
20 seconds
and will occur within three minutes,often
without a sound.
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Take frequent visual inventories of your children and your guests during poolside gatherings. If a child is missing, look in the pool first. Never swim alone. Adults fifty years old and older account for more than 50 percent of the drownings each year. They drown because they swim alone, and no one is around to help them if they are injured, have a severe muscle cramp, suffer a seizure, or otherwise become incapacitated while in water. Regardless of how well you swim, never swim alone, even in your own pool. Always swim with a companion who is either in the water with you or watching from the deck and can provide help quickly if you need it. Avoid mixing prescription medications, alcohol, and water. In far too many instances, this combination has proven to be fatal.
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READERS WRITE Home is a treasured and special place. For many people, that is the case. A place to feel safe, to let your guard down, Especially when there’s turmoil around. A place to feel proud that you’re able to own Sometimes outright, sometimes with a loan. A place to fix up that shows off your style Where you live for a bit, or maybe a while.
Photos: www.istockphoto.com/ PraewBlackWhile Graphics by Ivan Salmeron
To make all this happen, it takes a team— Agents and affiliates to fulfill the dream. Helping buyers get their perfect home And also sellers ready to roam. But more than just the buy and the sell And helping clients find where to dwell, It’s the care that members share for each other, The same you would for a sister or brother. When we could no longer meet in a physical room, Right away, we fired up Zoom, Keeping the connections, showing we care, Even in sweats and ridiculous hair. Seeing who needs help, who needs a smile For those who are new, and those here a while. Checking in on each other’s state of affairs Also supporting through OCAR Cares. You see, we come together to help people with places Buying, selling, and fixing up spaces. Yet, as we help others with homes near and far, We’ve created the ultimate home right here in OCAR.
— Maureen Crowley
Business Development Director for Tailored Living and Premier Garage
EDITOR’S NOTE: When Orange County REALTORS® President Danielle Corliss heard this poem at the Rancho Santa Margarita Marketing Meeting on Friday, June 12, she suggested that it be made available in OC REALTOR® for a wider audience to enjoy.
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MENTIONS
I always receive good help from your Tech Helpline service and am so thankful that it is one of our REALTOR® benefits. Today [May 22], I had a great call with Andre and just want you to know that he is a great tech advisor. Good man! Thank you for your service. Elizabeth Scott REALTOR® EDITOR’S NOTE: The OC Tech Helpline is offered free of charge as a benefit of membership in Orange County REALTORS®. It enables both REALTOR® and Affiliate members to resolve technical issues quickly over the telephone by calling 877-562-3156. Once you are connected, a United States–based analyst (located in Orlando, Florida) will verify your OC REALTORS® membership and then assist you with computer and other technology problems.
Tech Helpline analysts connect to your computer via remote software to diagnose and repair a problem. There is no limit to the number of calls, and no time limit per call. Multiple topics may be handled in one call. And assistance is available in either English or Spanish. Support is available Monday through Friday from 6:00 A.M. to 5:00 P.M. (PST) and on Saturdays from 6:00 A.M. to 2:00 P.M. (PST). The services of knowledgeable Tech Helpline representatives are not limited to technology crises. These representatives also can provide you with expert advice when you are considering the purchase of a new computer, a smartphone, or specialized software.
CALL FOR CONTENT TO BE INCLUDED ON THE MAGAZINE MENTIONS PAGE Orange County REALTORS® and OC REALTOR® welcome emails and social media postings for possible publication on the Mentions page in this magazine. These written materials should be brief (about 150 words) and cover real estate–related topics. They might offer comments, make suggestions, ask questions, or contain tips or ideas based on personal experience and intended to help REALTORS® in some way. Submitted emails and media postings must include the writer’s name and email address (for verification) though only the name will be published. They also should include any title or affiliation by which the writer wishes to be identified in a single line below his or her name. 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. Emails intended for publication should be sent either to Director of Communications Sabrina Blair at Sabrina@ocrealtors.org or to Writer and Editor Sherri Butterfield at Sherri@ocrealtors.org. 46
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