LOOKING BACK OVER AN EXTRAORDINARY YEAR
COMMERCIAL REAL ESTATE NEEDS HELP STABILIZING
ON PAGE 8 IT’S TIME TO PAY YOUR PROPERTY TAXES
ON PAGE 26
ON PAGE 44 REXPO 2020 BECOMES A VIRTUAL EVENT
NOVEMBER | DECEMBER 2020
ON PAGE 38
2020: A YEAR OF FIRSTS
ON PAGE 32
OPPORTUNITIES IN A CRISIS
ON PAGE 29
An Extraordinary Year The COVID-19 pandemic has made 2020 an extraordinary year. A century ago, Jerome Kern and B.G. DeSylva wrote a song in which they advised audiences to “Look for the silver lining/Whenever a cloud appears in the blue./Remember, somewhere the sun is shining/And so the right thing to do is make it shine for you.” Because we have looked for—and found—the silver lining, we have discovered new ways to do things, become more productive, and realized that we are stronger together.
C ONT EN T S
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Veterans, Thank you for your Service!
Freedom is never free. In this month of Veterans Day, Orange County REALTORS® joins a grateful nation in pausing to honor all who have served and to reflect on the selflessness of those whose courage, devotion, and sacrifice have purchased the freedom we enjoy.
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Cover Story: Finding the Silver Lining 29 Opportunities in a Crisis: Look for the Silver Lining
Michelle McCann describes some of the innovations and adaptations that were developed because of COVID-19 but will serve REALTORS® well in the future.
Sabrina Blair recounts the ways in which Orange County REALTORS® adapted quickly to meet the needs of its members during the pandemic.
President’s Message 8
Steven Thomas says “Luxury Housing Is Surging,” in part because the pandemic has underscored the importance of home.
Congratulations to the eighteen members of this class who fulfilled requirements, left a legacy, and are making their mark both locally and globally!
The Orange County Housing Update
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Danielle Corliss offers sympathy for loss, expresses gratitude for gain, and thanks all whose commitment endured throughout a challenging year.
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Affiliate members who have served in uniform, at home or abroad, either to win a war or to keep the peace.
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Reminder: It’s Time to Pay Your Property Taxes
Looking Back Over an Extraordinary Year
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Featuring photos of REALTOR® and
2020: A Year of Firsts
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Features 16
Orange County REALTORS® Annual Veterans Tribute
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OC Treasurer-Tax Collector Shari Freidenrich describes the ways in which her office has made paying this bill a little easier.
OC REALTOR®
Leadership Academy Class of 2020 Graduates Despite Pandemic
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REXPO 2020 This one-day educational experience for real estate professionals boasted a wide variety of speakers whose topics included time management, personal development, and emerging technology.
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Commercial Real Estate Needs Help Stabilizing NAR Senior Vice President of Government Affairs Shannon McGahn explains why eliminating 1031 like-kind exchanges would have a devastating domino effect on the economy.
CONTENTS
Departments 10
29
Names in the News
24
Education Central: Upcoming Classes by Track
46 Affiliates in Action: New REALTOR® Orientation in September
47
Mentions: What Our Members Are Grateful For During This Thanksgiving Season
On the Cover: Finding the Silver Lining
In 1919, Jerome Kern wrote the music and B.G. DeSylva wrote the lyrics for a song titled “Look for the Silver Lining” for the Broadway musical Zip, Goes a Million. Although the musical was a failure, this song and its message of hope have endured for more than a century. Featured on the cover is a design created by Ivan Salmeron to illustrate the idea of finding that long-sought-after silver lining.
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ORANGE COUNTY
REALTOR®
Love the Orange County REALTOR®? Did you know that you can read it online, anytime? Read past issues at www.ocrealtors.org/magazine.
MAGAZINE
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 Danielle Corliss President Lori Namazi President-Elect Bob Wolff Treasurer Matt Clements Immediate Past President Dave Stefanides Chief Executive Officer
2020 BOARD OF DIRECTORS Liz Lewis Chip McAllister Charleen Nagata-Newhouse Joe Pierce Lacy Robertson Adam Rodell Lisa Schulz Jessica Siguenza Scott White
MAGAZINE STAFF Sabrina Blair
Breanna Reed
Sherri Butterfield
Ivan Salmeron
Director of Communications sabrina@ocrealtors.org Communications Specialist sherri@ocrealtors.org
The mission of the OC 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
2020 OFFICERS
Olesya Drozdova Joyce Endo Dorinda Francois Michele Harrington Bob Hartman Len Herman Julie Hile Jeff Jackson Debbie Krumboltz Sherrie LeVan
Mission Statement
Accounting Administrator breanna@ocrealtors.org Print & Marketing Specialist ivan@ocrealtors.org
It is the long-established policy of this Association, the California Association of REALTORS®, and the National Association of REALTORS® to adhere to both the letter and spirit of the federal and state antitrust laws. For their own protection, members should be aware of the antitrust laws as they affect their specific business activities. Any illegal activity under the state and federal antitrust laws is not in compliance with Association policy, nor is it in the interests of the Association or its members. Participation in Association activities must occur only in harmony with these very important laws. Federal law prohibits discrimination based on race, color, sex, religion, or national origin in connection with the sale or rental of residential real estate, in advertising the sale or rental of housing, in the financing of housing, and the provision of real estate brokerage services. The Orange County REALTOR® editor reserves the right to review and edit all submissions. Orange County REALTORS® makes no warranties and assumes no responsibility for the accuracy of the information contained herein. The opinions expressed in articles are not necessarily the opinions of the Orange County REALTORS®. Orange County REALTORS® does not necessarily endorse the companies, products, or services advertised in this magazine unless specifically stated. The OC REALTOR® (USPS 025-445, ISSN 1945-2179) Volume 11, Issue 6, is published by the Orange County REALTORS®, 25552 La Paz Road, Laguna Hills, CA 92653. Periodicals postage paid at Laguna Beach, CA, and additional mailing offices. POSTMASTER: Send address changes to Orange County REALTORS®, 25552 La Paz Road, Laguna Hills, CA 92653-5127. Annual membership dues include $3.13 for a one-year (6 issues) subscription to the OC REALTOR® magazine. OC REALTOR® cannot be responsible for unsolicited materials. Publisher: Orange County REALTORS® Printer: The Monaco Group
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OC REALTOR®
PRESIDENT’S MESSAGE
No one could have predicted all the things that have happened in 2020; but amid the uncertainty and despite the loss, we have much to be grateful for.
By Danielle Corliss
of coronavirus was identified as the cause of this disease.
2020 PRESIDENT, ORANGE COUNTY REALTORS® The year 2020 has been extraordinary. Many of the things we had planned did not or could not happen. And many of the things that happened had not been planned or had to happen in entirely different ways. The reason, of course, was the COVID-19 pandemic. The events that signaled a pandemic happened quickly and caught the world off guard. On December 31, as the year 2019 ended, China informed the World Health Organization (WHO) about a suspicious cluster of pneumonia cases in Wuhan, a large city in Hubei Province. One week later, a new type 8
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On February 11, 2020, WHO named the disease COVID-19, an acronym for coronavirus disease 2019. On February 29, the first COVID-19 death occurred in the United States. By March 11, WHO was terming the health situation a pandemic. And on March 16, the White House issued social distancing guidelines.
More than 1,200 members viewed the Annual Membership Meeting online.
OC REALTOR®
Abruptly, life took an unfamiliar turn. The Orange County REALTORS® Annual Membership Meeting, which had been scheduled for March 23 at UCI, became a livestream event. In this format, the event was a huge success. More than 1,200 members viewed online, which is twice the usual attendance for similar inperson events. Although both residential and commercial real estate were classified as essential services,
Photos: www.istockphoto.com/CamPhoto
LOOKING BACK OVER AN EXTRAORDINARY YEAR
PRESIDENT’S MESSAGE
REALTORS® were required to perform these services in new ways. Open houses were no longer allowed, in-person showings were limited to one buying party at a time. And REALTORS® were supposed to wear masks when working and to maintain a social distance of six feet. Despite closing its doors to walk-in traffic, Orange County REALTORS® remained open for business. Staff members processed membership applications online, set up lock boxes over the phone, hosted marketing meetings virtually, and reviewed the content and page layouts for this bimonthly magazine entirely via email.
the longstanding commitment of REALTORS® to preserving the American Dream of homeownership as being the inspiration for their continuing to mask up and show up. The video, which struck a responsive chord with viewers, received an Award of Distinction in the 24th Annual Videographer Awards 2020. Recalling the financial shock waves of 2008, everyone wondered what a pandemic would do to the real estate market in 2020. But after a brief pause, properties continued to sell, and the Orange County housing market heated up. For example, during September, closed sales were up year over year in all price ranges, including luxury, perhaps because the pandemic had placed a new emphasis on the importance of home. In 1919, Jerome Kern and B.G. DeSylva wrote a song titled “Look for the Silver Lining” for the Broadway musical Zip, Goes a Million. The musical was a failure, but the song has inspired several generations with its simple words of advice:
Received an Award of Distinction in the 24th Annual Videographer Awards 2020. To counter the isolation and to connect with members, our Board of Directors worked closely with Director of Communications and Programs Sabrina Blair and with Videographer Jonathan Marquez to produce a video titled a Message of Hope. The script for this video spoke of the complex meaning of the word “home” and identified
Look for the silver lining Whenever a cloud appears in the blue. Remember, somewhere the sun is shining And so the right thing to do is make it shine for you.
The year 2020 has been not only one of profound change and loss, but also one of discovery and gain. Because we have looked for—and found—the silver lining, we have discovered new ways to do things, become more productive, and realized that we are stronger together. In closing, I thank you for the privilege of serving as your President. I thank our Directors for their dedication to task and continued commitment throughout a challenging year. I thank our Management Team and staff members for their creativity in finding new ways to do old things and making some of the old ways work. And I thank our Chief Executive Officer, Dave Stefanides, for guiding us with both wisdom and good humor through it all. For what we have lost, I share your pain and offer my sympathy. For what we have gained, I share your gratitude and offer my thanks. I welcome our incoming President Lori Namazi and Treasurer Joyce Endo and wish them well. And I look forward with courage and enthusiasm to what 2021 will bring!
A heart full of joy and gladness Will always banish sadness and strife So always look for the silver lining And try to find the sunny side of life.
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NAMES IN THE NEWS
NAMES IN
THE NEWS OC REALTORS® Video Is a Winner at the 24th Annual Videographer Awards During the summer, Orange County REALTORS® President Danielle Corliss suggested to the Board of Directors and the Communications Staff that they produce a video as a way of communicating directly with members and countering the isolation of social distancing with a strong dose of encouragement and support. Director of Communications and Programs Sabrina Blair and Writer and Editor Sherri Butterfield worked closely with Danielle to turn her idea into a script. Directors who wished to participate in the video were asked to provide photos of themselves going about their daily routines during the pandemic. The script spoke of how the simple word “home” had taken on a new and more complex meaning and of the essential role REALTORS® were continuing to play in protecting the American Dream of homeownership—and helping individual clients realize that dream—despite the challenges posed by COVID-19.
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Videographer Jonathan Marquez blended the photos and script into a brief video titled A Message of Hope, In late August, when the 24th Annual Videographer Awards 2020 were announced, A Message of Hope received Awards of Distinction for Video Production in both the Cultural and the Inspiration categories. The Videographer Awards are one of the most coveted recognitions in the video industry. Since 1994, thousands of production and communication professionals have entered their best and most creative work. The goal of the Videographer Awards is to identify and recognize the video artisans who excel in the scope of their own environment. Winners range from network news operations to local cable access, from large production companies to freelancers, and from international advertising agencies to student producers. The Award of Distinction recognizes projects that exceed industry standards. Fewer than 20 percent of the entries merit this recognition. Winners are listed on the Videographer Awards website at www.videoawards.com.
OC REALTOR®
UCI Ranks Eighth Among the Nation’s Public Universities The University of California, Irvine, has been ranked eighth among the nation’s public Universities in U.S. News & World Report’s 2021 list of “Best Colleges.” This is the sixth year in which UCI has placed in the top ten. Begun in 1983, the annual U.S. News list is one of the most influential in the country, with ratings derived from fifteen diverse indications of academic quality. In making the ratings, evaluators considered 1,922 institutions for the 2021 report. Founded in 1965, UCI is the youngest member of the prestigious Association of American Universities. Led by Chancellor Howard Gillman, it has more than 36,000 students, offers 222 degree programs, and is known for its academic achievement, premier research, and anteater mascot. Located in one of the world’s safest and most economically vibrant communities, UCI is Orange County’s second-largest employer, contributing $5 billion annually to the local economy.
NAMES IN THE NEWS
NAR Promotes Shannon McGahn to Chief Advocacy Officer The March/April 2020 issue of OC REALTOR® carried an announcement that the National Association of REALTORS® (NAR) had named Shannon McGahn its Senior Vice President of Government Affairs and that she would be responsible for managing NAR’s Federal Legislative and Political Affairs and Political Representative teams. She is the first woman to hold this position in NAR’s 110-year history.
Young Professionals Network Celebrates “Month of Giving” During August, in celebration of Orange County Young Professionals Network (OC YPN) “Month of Giving,” YPN Chair Jessica Siguenza, Vice Chair Daniel Wu, and Committee Members Eric Kiang and Eric Wu presented checks for $1,025 to the Orange County Rescue Mission and to South County Outreach, two nonprofit organizations that help feed and shelter those in Orange County who are most in need. For the past three years, OC YPN has supported these two organizations by means of both fundraisers and volunteer activities.
More recently, when it was announced that both Bill Malkasian, CAE, Chief Advocacy Officer and Senior Vice President of the Advocacy Group, and Joe Ventrone, Vice President of the Federal Policy and Industry Relations Team, would retire effective December 31, it was also announced that Shannon McGahn would become Chief Advocacy Officer, effective October 1, 2020. Shannon was one of four participants in the women’s powerhouse panel during Orange County REALTORS® REXPO in September and is pictured with that panel on page 42 in this issue of OC REALTOR®. Her Government Affairs article titled “Commercial Real Estate Needs Help Stabilizing” appears on pages 44–45.
Eric Kiang, Jessica Siguenza, Eric Wu, and Daniel Wu
Michelle Steel Appoints Dirissy Doan to OCTA Advisory Committee Orange County REALTORS® Government Affairs Director Dirissy Doan has been appointed to the Orange County Transportation Authority (OCTA) Citizens Advisory Committee (CAC) for a two-year term. The appointment was made in July by Orange County Supervisor and OCTA Director Michelle Steel. This committee makes recommendations to the OCTA staff and Board of Directors to assist OCTA in its efforts to reach the greatest possible public consensus regarding Orange County transportation matters.
Eric Wu, Jessica Siguenza, Eric Kiang, and Daniel Wu
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NAMES IN THE NEWS In 2016, McIntosh retired after nearly six years at the helm in Huntington Beach; however, on September 28, 2017, the OCFA Board of Directors voted unanimously to appoint him as its interim fire chief during the search for a new permanent chief, following the resignation of Jeff Bowman in August of that year.
Wheel of Fortune Host Pat Sajak with Retired Huntington Beach Fire Chief Patrick McIntosh
Now once again retired, Pat McIntosh enjoys golfing, standup paddle boarding, walking the trails around his home, and making an occasional appearance on a game show. He plans to spend his thirtieth wedding anniversary in St. Croix with his wife and will use his monetary winnings to help his younger daughter pay for graduate school and to assist his older daughter in buying her first home.
Retired HB Fire Chief Patrick McIntosh Becomes a Wheel of Fortune Winner During the COVID-19 pandemic, the younger daughter of retired Huntington Beach Fire Chief Patrick McIntosh decided to submit a contestant application on her father’s behalf via www.WheelofFortune.com. The application was accepted, and Chief McIntosh won more than $117,000 in cash and prizes, including a trip to St. Croix, during his October appearance on the show. Although this was Patrick’s first time to be a contestant on Wheel of Fortune, he was a veteran at solving its word puzzles because he grew up watching the show with his mom and now views it regularly with his daughters. McIntosh, who is a graduate of the National Fire Academy Executive Fire Officer Program, holds a Bachelor’s in Fire Protection Administration from Cal State University Los Angeles and a Master’s in Organizational Leadership from Chapman University. He started his career as a firefighter in 1979 in San Gabriel and later moved to the Orange County Fire Authority (OCFA), where he rose to the rank of deputy chief. In 2010, McIntosh left the OCFA to become chief of the Huntington Beach Fire Department (HBFD). Under his leadership, the HBFD regained a Class 1 ranking from the Insurance Service Office and brought city lifeguards under its umbrella.
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Assemblyman Phillip Chen Donates 200,000 Masks to Orange County REALTORS® Assemblyman Phillip Chen, a Republican who represents the 55th Assembly District, recently donated 200,000 disposable masks to Orange County ® REALTORS . Accepting the masks on behalf of OC ® REALTORS is President Danielle Corliss. The masks are being distributed at no cost to brokers and office ® managers for use by the REALTORS and staff members in their offices.
NAMES IN THE NEWS
C.A.R. Honors Orange County YPN as Network of the Year
Computer screen announcing that the California Association of REALTORS® (C.A.R.) has named Orange County Young Professionals Network (YPN) its 2020 Network of the Year
In early October, the California Association of REALTORS® (C,A,R,) recognized the Orange County Young Professionals Network (OC YPN) as Network of the Year for its combined efforts throughout 2020. All California Association YPN chapters are eligible to compete for this honor, which Orange County YPN now has received twice.
SOCEC Presents Your Guide for the 2020 Ballot
Photos by Marion Butterfield
On October 2, South Orange County Economic Coalition (SOCEC) Chair Steve LaMotte hosted Orange County Taxpayers Association President and CEO Carolyn Cavecche in a virtual event billed as Your Guide for the 2020 Ballot. Carolyn briefly reviewed each of twelve propositions on the November 3 ballot. Among other things, she said, “Proposition 15 is the largest property tax increase in California history. It removes commercial and industrial property from Proposition 13 protections. It is not—as some have claimed—a tax on large corporations. It is a tax on all of us.”
Orange County REALTORS® Government Affairs Director Dirissy Doan, who serves as chair of the Econ PAC, explains that the primary purposes of Econ PAC are to develop rapport between the busines and political communities in South Orange County and to ensure that candidates for political office in South Orange County understand what local businesses need not only to survive but to thrive.
Steve LaMotte, chair of the South Orange County Economic Coalition, asks Orange County Taxpayers Association President and CEO Carolyn Cavecche about the twelve propositions on the November 3 ballot.
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Photo by Marion Butterfield
NAMES IN THE NEWS
Orange County Taxpayers Association President and CEO Carolyn Cavecche presents the coveted Royalty Award to CalTax President and CEO Robert Gutierrez.
OCTax “Save California” Virtual Event Features Jim Doti and Tom Campbell On Thursday, September 30, OCTax staged a “Save California” Virtual Event featuring Jim Doti, president emeritus of Chapman University, and Tom Campbell, former state finance director, who discussed the possible effects of the changes to Proposition 13 and the passage of Proposition 15 (split roll). Asking the questions and moderating the discussion was Orange County Taxpayers Association President and CEO Carolyn Cavecche. Cavecche: Only sixteen states have lower property tax rates than California, and that’s because of Proposition 13. The Sacramento politicians put Proposition 15 on the ballot to strip away these protections. Government continues to see taxpayers as a way to make up for its misdeeds. The persistent myths about Proposition 13 are (1) that it only protects old people, (2) that it does not help renters, (3) that homeowners pay more property tax than businesses, (4) that a “loophole” keeps businesses from having to pay their fair share., and (5) that a tax on businesses will not affect homeowners.
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Government continues to see taxpayers as a way to make up for its misdeeds.
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NAMES IN THE NEWS Dr. Doti: California is one of the three states with the highest taxes. The other two states are New Jersey and New York. These three high-tax states are losing residents to Texas, Florida, and Nevada, states in which there is no personal income tax.
Photo by Marion Butterfield
Cavecche: How important has historic Proposition 13 been for the California economy? Campbell: In 1978, Proposition 13 was a beacon of hope for companies that were considering where to locate. The essential element was predictability. The message was, “Come to California and build a building, and you know what your taxes will be.” This election may well determine the long-term affordability of this state. Because the COVID-19 pandemic prevented OCTax from hosting its Tenth Annual Roses, Radishes and the Royalty Award Dinner this year, Carolyn took this opportunity to announce that the California Taxpayers Association (CalTax) is the 2020 winner of the coveted Royalty Award and to present the award to CalTax President and CEO Robert Gutierrez.
Photo by Marion Butterfield
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This election may well determine the long-term affordability of this state.”
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, email it to Orange County REALTORS® Writer and Editor Sherri Butterfield at Sherri@ocrealtors.org.
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THE ORANGE COUNTY HOUSING UPDATE
LUXURY HOUSING IS
SURGING By Steven Thomas
REPORTSONHOUSING.COM
Photos: www.istockphoto.com/alvarez
In Batman v Superman (2016), to kill Doomsday, an enormous monster that is also from the planet Krypton, Superman sacrifices himself by taking a krypton spear (his only weakness) and launches it into Doomsday. Both Superman and Doomsday die. Many moviegoers left the theater in utter disbelief: the ultimate superhero had perished. Yet, in Justice League (2017), through the power of the Mother Box and a giant electric spark from The Flash, Superman was revived to help save Earth from the evil Apokoliptian general Steppenwolf and his army of Parademons. Superman returned, was unstoppable, and helped defeat the villain.
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The luxury housing market in Orange County came to screeching halt in mid-April. It appeared as if luxury housing had perished in 2020 and would not be revived until 2021 at the earliest. The Expected Market Time (the amount of time between hammering in the For-Sale sign and opening escrow) increased to 322 days for all homes priced above $1.25 million. Uncertainty and fear shrouded the upper end amid the COVID-19 pandemic and California’s stay-at-home order. Luxury sellers wondered if they would be able to sell their homes without major price cuts.
Photos: www.istockphoto.com/alvarez
THE ORANGE COUNTY HOUSING UPDATE
Flash forward to the summer and autumn housing markets, and the high-end is exceeding everyone’s expectations and firing on all cylinders. In Orange County, closed sales in the luxury market (homes priced above $1.25 million) hit a record high of 629 in September. The prior highs occurred in August with 561 sales, and in July with 464. Luxury closed sales has topped 400 only in May and June 2017 and in May and June 2018. September’s 629 closed sales was 12 percent higher than August and 76 percent higher than the 357 closed sales in September 2019 (see Figure 1). Figure 1. Sales of homes priced above $1.25 million hit a record high of 629 in September.
Yet, after bottoming in April, the housing market began to improve. Slowly but surely, demand picked up in every price range. By June, the market was stronger than it had been in 2019, and luxury was no exception. The luxury market was revived by increased confidence in Wall Street, low mortgage rates, and a realization of precisely how important “home” is in the middle of a pandemic. Everyone has become acutely aware of the significance of the home office, additional living space, a larger yard, and the many amenities that make life at home more enjoyable.
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THE ORANGE COUNTY HOUSING UPDATE For all price ranges in Orange County, closed sales in September were up by 30 percent over last year, 3,345 closed sales in 2020 compared with 2,577 in 2019. It is the highest level since August 2005. A deeper look reveals that performance in the higher ranges is stronger than in the entry level. For homes priced below $750,000, year over year there were 120 more closed sales, that is, 8 percent extra. For homes priced between $750,000 and $1.25 million, there were 376 additional closed sales, 49 percent more than last year. And for the luxury range, over $1.25 million, year over year, there were 272 additional closed sales, an unbelievable 76 percent more than last year Quite simply, there are more closed sales in the luxury range than ever before. The high end is firing on all cylinders, most likely reflecting a combination of Wall Street’s return to record high levels, private banking relationships, and record low interest rates. It does not appear to be slowing, either. In looking at demand (the past 30 days of pending sales), there are 943 more pending sales than there were at this same time last year, a 41 percent increase. Luxury demand is up by an incredible 89 percent (see Figure 2).
Not only is luxury outperforming any other time in terms of closed sales, it appears as if that trend will continue given the current velocity of demand in the middle of autumn. The Expected Market Time for homes priced between $1.25 million and $2 million is less than 60 days, a Hot Seller’s Market, a supersonic pace for this price range. It is at 100 days for homes priced between $2 million and $4 million. For homes priced above $4 million, the Expected Market Time is 315 days. Yes, that is a lot slower than all other price ranges; however, it is far better than last year’s 557 days. A warning to luxury sellers: luxury may be hotter than ever, but it is not as hot as the lower price ranges. Homes priced below $1 million are experiencing the hottest activity with a massive number of showings, multiple offers, and very quick sales; however, it takes a bit longer to find success in the upper ranges with not as many showings and fewer multiple-offer situations. Expecting instantaneous offers to purchase simply is not realistic. 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.
Figure 2. During September, closed sales in Orange County were up for all price ranges.
Photos: www.istockphoto.com/plovesempre
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Photos: www.istockphoto.com/plovesempre
THE ORANGE COUNTY HOUSING UPDATE
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Orange County REALTORS® Annual
VETERANS
T R I B U T E Featuring OC REALTORS® and Affiliates
VETERANS DAY
A TIME TO TAKE PRIDE IN HEROISM AND TO GIVE THANKS FOR FREEDOM, FOR VICTORY, AND FOR ALL WHO HAVE SERVED
BY SHERRI BUTTERFIELD World War I began in 1914. Triggered by the assassination of Archduke Franz Ferdinand of Austria on June 28 of that year, it eventually involved all the world’s great economic powers in what was called simply the “Great War.” On one side were France, Italy, Japan, the Russian Empire, the United Kingdom, and the United States. On the other side were Austria-Hungary, Bulgaria, Germany, and the Ottoman Empire. Ultimately, more than 70 million military personnel were mobilized for—and more than 9 million combatants were killed in—what became the fifth-deadliest war in history. This global conflict officially ended with the signing of the Treaty of Versailles on June 28, 1919, in the Palace of Versailles outside the town of Versailles, France; however, major hostilities had ceased seven months earlier, when an armistice went into effect at the eleventh hour on the eleventh day of the eleventh month. For this reason, November 11, 1918, is generally recognized as the date on which the “war to end all wars” came to an end. In November 1919, President Woodrow Wilson proclaimed November 11 as the first commemoration of Armistice Day with the following words: “To us in
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America, the reflections of Armistice Day will be filled with solemn pride in the heroism of those who died in the country’s service and with gratitude for the victory, both because of the thing from which it has freed us and because of the opportunity it has given America to show her sympathy with peace and justice in the councils of the nations . . . .” Armistice Day was set aside to honor veterans of World War I with parades and public gatherings and with a brief suspension of all business activities at the “eleventh hour.” But in 1954, after World War II had required the greatest mobilization of soldiers, sailors, Marines, and airmen in U.S. history and after American forces had repelled communist aggression in Korea, the 83rd Congress passed H.R. 7786, which President Dwight Eisenhower signed into law, changing the name of the holiday from Armistice Day to Veterans Day to honor all who have served the United States of America in uniform. Coming as it does in the month of Thanksgiving, Veterans Day is an ideal time to take pride in heroism and to give thanks for freedom, for victory, and for all who have served.
Photos: www.istockphoto.com/spukkato
VETERANS
VETERANS
RON ABIERA U.S. Army 9 Years of Service
MIKE AMEEL U.S. Army 1969–1972
DAVE BERMAN U.S. Navy 1967–1973
DON COOK U.S. Marine Corps 1980–1986
TOM BRABECK U.S. Navy 1966–1970
MARK CESTARIC U.S. Marine Corps 1971–1974
MARCELLO DEAN U.S. Army 26 Years of Service
STEVE BOWERS U.S. Air Force 1967–1971
RAYMOND DENTON U.S. Navy 1976
BRAD COLEMAN U.S. Marine Corps 1992–1999
BOB DICKIE U.S. Air Force 1967–1998
HERB DITTRICK U.S. Army 1963–1969
FRED-OTTO EGELER U.S. Army 23 Years of Service
EDWIN FAHLEN U.S. Navy 1970–1973
DAVIN EMMONS U.S. Army Military Police Corps 1985–1988
TIM FAHL U.S. Marine Corps 1976–1979
TONY FAULKNER U.S. Marine Corps 1979–1994
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VETERANS
LARRY FELS U.S. Navy 1966–1970
ROY FUSSELL Captain, USMC (Ret.) U.S. Marine Corps 1961–1983
PETER GIAMMARINARO U.S. Air Force 1956–1962
DUANE GOMER U.S. Navy 1955–1958
FRANK HILL U.S. Army 1955–1975
MICHELE HARRINGTON U.S. Marine Corps 1993–1997
TOM HRIBAR U.S Marine Corps 1966–1970
ROBERT G. “JERRY” HAY U.S. Navy 1971
FELIX HUNG U.S Army 4 Years of Service
CHRISTOPHER LARDIE U.S. Navy 1988–2013
DAVE LEWIS U.S. Marine Corps 1969–1971
LEN MALENA U.S. Marine Corps 1976–1980
PETER MCCORMICK U.S. Marine Corps 1991–Present
AJA MCGOWN U.S. Marine Corps 2000–2004
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RON MILLER U.S. Navy 1966–1969
JAY MILLS U.S. Air Force 1984–1991
VETERANS
Not Pictured Steve Anderson U.S. Army, 1969–1971 Austin C. Chiles, Jr. U.S. Air Force, 1965–1968 ED MIXON U.S. Navy Airborne 1956–1959
DENNIS O’CONNOR U.S. Navy 1971–1977
MARK PETRICK U.S. Army 1988–1993
TERRY REAY U.S. Army 1965–1969
Jim Chiuminatta U.S. Army, 1967–1968 Mike DeLeon U.S. Army, ARNG, 1971–1994 Robert DiGruccio U.S. Army, 1966–1969 Jim Dwyer U.S. Air Force, 22 Years of Service Evan Gost U.S. Navy, 1963–1972
MELVYN D. RICHARDSON U.S. Army 1964–1966
MARK RAIDY U.S. Army 1971–1973
Matthew Gutridge U.S. Navy, 1992–2016 Dan Hoppy U.S. Army, 1969–1972 Patti Lemieux U.S. Navy, 1988–1998 Melissa Lino U.S. Navy Jon C. Meyer U.S. Air Force, 1962–1968
RICH STEINHOFF U.S. Marine Corps 1958–1964
LARRY WEBB U.S. Navy 1985–1996
KEVIN WHITNEY U.S. Navy 2009–2013
Cas Pinkowski U.S. Air Force, 1960–1964 Don Readinger U.S. Navy, 1965–1974
STEVE WIDNER U.S. Marine Corps 1968
Bill Sundin U.S. Air Force, 1969–1971
WILL WOODS U.S. Navy 1968–1974
JAMES J. ZAKHAR, JR. U.S. Army 1970–1972
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PROPERTY TAXES
Reminder:
It’s Time to Pay
Your Property Taxes.
Stay Safe, Stay Home, and Pay Online! The first installment of the FY 2020–21 property tax bill is due on November 1, 2020, and is delinquent if not postmarked by December 10. The second installment is due by February 1, 2021.
By Shari L. Freidenrich
Photos: www.istockphoto.com/solidcolours
ORANGE COUNTY TREASURER-TAX COLLECTOR
We have made one of the necessary chores associated with owning property—that is, ensuring that annual property tax payments are made on time—easier by improving the “touchless” ways in which Orange County residents can interact with the Treasurer-Tax Collector’s office. In Fiscal Year 2019–20, taxpayers stayed safe and paid over 64 percent of property tax payments electronically. More than 30 percent of the taxpayers used our no-cost eCheck payment option. This option allows for online payment at ocgov.com/octaxbill using your bank account, once you get to our secure payment site, and eliminates the need either to mail a paper check or to make the payment in person. And with the eCheck payment option, there is no service fee. Payment by eCheck allows for timely payment until midnight on the last payment date, and a payment receipt is immediately emailed to the email address provided. Mobile users can scan the QR code that comes on their property tax bill for access to information about their specific parcel and view an online statement that shows any delinquent property taxes or 26
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overpayments. All taxpayers can call 714-834-3411 to request a refund of an overpayment. All property tax bills for FY 2020–21 are available online and were mailed starting September 21. If you have not received yours, go online to ocgov.com/octaxbill and input your assessor parcel number (APN) or property address to view it. Are you still affected financially by COVID-19? If so, you may be able to delay paying your secured taxes until May 6, 2021, and have your penalties cancelled if you live in your home or are a small business. Go to ttc.ocgov.com and click on the cancel penalty icon for details. If you wish to appeal your FY 2019–20 property value assessments, the deadline for filing an appeal is November 30. To avoid a nonrefundable 10 percent penalty, you must pay your property tax bill on or before the last timely payment date. If the assessment is adjusted, you will receive an overpayment refund that may include interest.
PROPERTY TAXES
Our office offers a variety of “touchless” online property tax information and interactive options. To become better acquainted with these options, visit our website at ttc.ocgov.com or input some of the links listed below. Eleven years of property tax bill copies and two years of payment detail ocgov.com/octaxbill Mello-Roos/PACE and tax bill information mello.ocgov.com (GIS map) or ocgov.com/melloroos Property Tax eGuides for New Homeowners and Businesses ocgov.com/ocpropertytaxguides Secured property tax information text or email subscription ocgov.com/octaxreminder Weekly Financial Tips/Top 20 Taxpayers ocgov.com/ocfinancialinfo Unsecured property tax information text or email subscription ocgov.com/ocunsecuredreminder Properties with delinquent property taxes ocgov.com/taxdefaultedproperty
Are you still affected financially by COVID-19? If so, you may be able to delay paying your secured taxes until May 6, 2021, and have your penalties cancelled if you live in your home or are a small business. Go to ttc.ocgov.com and click on the cancel penalty icon for details.
Postmark information for mailing property tax payments ocgov.com/postmarks Change of Address, Exemptions, and Change of Ownership forms ocgov.com/gov/assessor Assessment appeals process information cob.ocgov.com View unclaimed funds held by the Treasurer ocgov.com/unclaimedfunds
Shari Freidenrich was first elected Orange County Treasurer in 2010 and was reelected in 2014 and 2018. She has more than fifteen years of experience as a certified public accountant in private industry, specializing in real estate and banking, and more than twenty-three years of experience serving as an elected official in local government. Shari’s email address is ShariforOCTreas@aol.com. You can sign up for her property tax tips eNewsletter at www.ShariFreidenrich.com. The Orange County Treasurer-Tax Collector moved last year! The new physical address is 601 N. Ross Street, Santa Ana, California 92701 For your convenience, you can use the 24/7 dropbox for your payment. Note for future reference that questions can be emailed to Treasurer@ttc.ocgov.com. OC REALTOR®
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Photos: www.istockphoto.com/joreks
COVER STORY
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COVER STORY
Opportunities in a Crisis: Look for the Silver Lining
The gray clouds of today’s COVID-19 storm have provided an opportunity to look for the silver lining now and discover ways to improve business processes in the future. By Michelle McCann
Many of the innovations and adaptations used today to buy and sell real estate were not available or were not in wide use before COVID-19. One silver lining, then, is that these new tools have proven to be quite effective and are likely to remain long after COVID-19 has become a distant memory. Some of these new tools are described below.
Paperless Transactions The pandemic sped up the real estate industry’s adoption of paperless transactions and electronic signing. Before COVID-19, some agents were reluctant to switch to 100 percent paperless transactions. But stay-at-home and socialdistancing orders made it difficult to obtain in-person “wet” signatures on multiple forms and documents. Even REALTORS® who were not yet using DocuSign and zipForm® were forced to go paperless. Continuing to do business the old-
fashioned way, without a digital process, can cost a lot of time—scheduling time, driving time, in-person time, copying time, filing time. Using a digital system saves time. Simply click a button and important papers are signed, sealed, and delivered. Photos: www.istockphoto.com/ SolStock
When will things go back to normal? Almost everyone has asked that question at least once since the advent of COVID-19. All of us have had to make changes, but REALTORS® especially have had to adapt. Reacting swiftly, the real estate industry has reinvented the ways in which property is viewed, bought, and sold. Although it is unlikely that everything will ever be exactly the way it was before, looking for the silver lining may help your business operate more smoothly now and more productively in the future.
VIRTUAL
Video Calls, 3D and Virtual Tours
When COVID-19 made in-person showings difficult, virtual showings were developed as an alternative. But these new technologies have ended up being an entirely new process that will outlive the pandemic. Instead of being limited to short windows of time for showings, it is possible to host a 24/7 open house online. REALTORS® (and their clients!) can save time and gas with these virtual showings. In addition, virtual listing appointments have made it unnecessary for REALTORS® to take the risk of meeting with strangers and have provided a means to vet serious buyers and sellers. Showing properties virtually is safer for REALTORS® and makes better use of everyone’s time.
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Photos: www.istockphoto.com/fotostorm
COVER STORY
Personal Connections
Multitasking
Personal phone calls and video calls to staff, clients, and potential clients did not hold the same importance before social distancing and stay-at-home orders as they do now. More than ever, REALTORS® are looked to as a trusted resource to reassure clients during the socially distanced buying and selling process. Real estate is a business of relationships, and maintaining those relationships becomes even more important when you cannot meet in person. The coronavirus pandemic has provided an impetus to focus on friendships and polish interpersonal skills. Relationships nurtured during the COVID-19 pandemic will have value long after the virus threat has passed.
It used to be said that you cannot be in two places at once, but that is no longer true. With the flexibility of this new virtual environment, you can be in more than one place and you can accomplish so much more—that is, if you can multitask well. Multitaskers can attend an office meeting on their tablet while writing up a contract on their desktop and waiting in the wings to pitch their next hot listing at a marketing meeting on their laptop. But make sure that you know how to use the mute/unmute functions very well! With this newfound capability, REALTORS® can be more productive, attend more meetings, close more deals, and even spend more time with family. What’s not to love?
eLearning Opportunities
Although 2020 has been a rough year for many reasons, it also has been a year of opportunities if you look for the silver lining.
Furthering your career has never been easier! Although in-person meetings and events have been switched to Zoom and networking has become more difficult, the opportunity to grow and learn is still there. Training courses are being offered virtually, and new webinars are being added to the higher education course catalogs daily. Conferences and expos that previously might have been out of reach because of travel costs or schedule conflicts are now being offered virtually. There has never been a better time to further your education and polish your skills! Check out Orange County REALTORS® education schedule at www.ocrealtors.org/education. 30
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COVER STORY
2020
of Firsts
Who would have guessed in mid-November 2019 that an announcement in mid-March 2020 would temporarily turn the real estate world upside down?
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Photos: istockphoto.com/FreshSplash
A Year
Photos: www.istockphoto.com/ frantic00
COVER STORY
This time last year, we had no idea what 2020 had in store for us. For many, 2020 was supposed to be “the year.” Little did we know that 2020 would change life as we knew it and force us all to pivot. But it was not all bad. Orange County REALTORS®, like many other businesses, chose to roll with the punches, which resulted in our experiencing a year of firsts.
Virtual Classes, Committees, and Events Galore! Before the onset of COVID-19, Orange County REALTORS® had only dabbled in the space of virtual events with a handful of in-person events—like our Annual Membership Meeting and Nerd Fest—that were also livestreamed. Unfortunately, our 2020 Annual Membership Meeting was scheduled to take place just days after Governor Gavin Newsom issued the stay-at-home order, so we had to do a quick shift to our first-ever 100 percent virtual event! Lucky for us, the event was a huge success with more than 1,200 members viewing online, which is more than double our usual attendance for similar in-person events. By the end of 2020, we will have hosted more than 512 virtual classes, 135 virtual committee meetings, and 90 virtual events attended by more than 5,000 people.
24/7 Contactless Lockers If you have stopped by our Laguna Hills office recently, you may have noticed a new addition—outdoor lockers! Despite early restrictions on businesses, Orange County REALTORS® knew its members needed access to supplies, such as lock boxes and signs. For this reason, we invested in outdoor lockers to allow members easy and contactless pickup of merchandise purchased from the Orange County REALTORS® Store. Members can place orders online or over the phone and opt for locker pickup. Then, they will receive an email or text with a unique access code that will automatically open the locker where their merchandise is temporarily stored. We foresee that having lockers available will continue to benefit members even after the pandemic because it offers the convenience of pickup after hours and on weekends.
Remotely at Your Service Through all the ups and downs, twists and turns, we have not closed down! Our Association staff did not miss a beat. Most of us were not accustomed to working from home; but we all looked for the best spot in the house for Wi-Fi and the best lighting for Zoom, and we tried to make the best of a very weird situation. We were all challenged with how to do our jobs solely over email, phone, video calls, and online chat. But we did it! We are processing membership applications online, setting up lock boxes over the phone, hosting marketing meetings virtually, producing this bimonthly magazine via email, answering your questions on our new online chat, and so much more. Despite the struggles that this year has brought, it also brought the opportunity to be creative, evolve, and rise to the occasion. We can only hope for another year of improvement and more firsts. OC REALTOR®
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EDUCATION
Leadership Academy
Class of 2020
Graduates Despite Pandemic By Deb Shrider and Sherri Butterfield Without the traditional fanfare, ceremony, and group photo, the eighteen members of the Orange County REALTORS® Fourth Leadership Academy Class fulfilled their course requirements and became the graduating Class of 2020.
This year’s Academy graduates are Sofia Delgado, First Team, Mission Viejo Anna Dickinson, Regency Real Estate, Mission Viejo Yvonne Flores, Westcliff Properties, Santa Ana Van Gordon, Farmers Insurance Agency, Garden Grove Mike Grambow, JMJ Financial, Huntington Beach Lata Jobanputra, Zutila Real Estate, Irvine Cecilia Carolina Johnson, Berkshire Hathaway HomeServices, Huntington Beach Victoria Johnson-Stokes, Coldwell Banker, Mission Viejo Mindy Luong, HPT Realty & Finance, Westminster Rachel Masamori, Z Real Estate, Tustin Conrad Mažeika, Realty One Group West, Mission Viejo Catherine Miyoshi, My Home Group, Laguna Hills Adam Houn Nguyen, Compass, Huntington Beach, Vinil Ramchandran, Dream Business Brokers, Newport Beach Deborah Rose, First Team, Huntington Beach Sandra Traver, Keller Williams, OC Coastal Realty, San Clemente Paul Wirth, Founder & Chief Facilitator, CEO Axxess Daniel Wu, HomeSmart Evergreen Realty, Irvine
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EDUCATION They completed the eight-month intensive program under the most challenging of circumstances— during a pandemic. Not only did they dress up and show up, but their commitment to finish never wavered, even when the last class had to be held via Zoom—and the graduation ceremony has yet to take place! It has become a tradition for each Academy graduating class to complete a legacy project. Members of the Class of 2020 chose as their project updating and revitalizing the Orange County REALTORS® Student Membership category. This ambitious undertaking was made all the more challenging when schools and colleges closed their doors in response to the COVID-19 pandemic.
But Leadership Academy members gathered the information they needed by talking with leaders, teachers, and managers at local schools and colleges. Based on this information, they developed a plan to strengthen the value proposition for potential student members by offering four “ships”—Scholarship, Mentorship, Internship, and Friendship. They created a marketing campaign, a proposed budget, and a comprehensive list of outreach opportunities. And they presented their project titled “Attracting Future REALTORS® Though Student Membership” to the Orange County REALTORS® Board of Directors for review and approval.
Leadership Academy graduates are already making their mark. For example, Conrad Mažeika was elected President of the Baltic American Freedom League (BAFL), whose mission is to ensure that the Baltic States of Lithuania, Latvia, and Estonia remain free. Vinil Ramchandran was a successful candidate for the 2021 Orange County REALTORS® Board of Directors. Yvonne Flores is a finalist in the Accredited Residential Manager category for the Institute of Real Estate Management Awards. And Mike Grambow was a featured speaker for the Orange County REALTORS® Green Committee. Both locally and globally, the Orange County REALTORS® Leadership Academy Class of 2020 is making a difference!
SOFIA DELGADO
ANNA DICKINSON
YVONNE FLORES
VAN GORDON
MIKE GRAMBOW
LATA JOBANPUTRA OC REALTOR®
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EDUCATION
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CECILIA CAROLINA JOHNSON
VICTORIA JOHNSON-STOKES
MINDY LUONG
RACHEL MASAMORI
CONRAD MAŽEIKA
CATHERINE MIYOSHI
ADAM HOUN NGUYEN
VINIL RAMCHANDRAN
DEBORAH ROSE
SANDRA TRAVER
PAUL WIRTH
DANIEL WU
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This virtual one-day educational experience for real estate professionals boasted a wide variety of speakers whose topics included emerging technology, real estate law, time management, personal development, and increasing business success by letting go of control.
By Sherri Butterfield The unqualified success of the first-ever REXPO staged by Orange County REALTORS® in September 2019 strongly suggested the need for a sequel; however, the pandemic forced what previously had been an in-person event to go virtual this year. REXPO 2020, a one-day educational experience for real estate professionals, took place on Monday, September 13, from 9:00 a.m. to 3:00 p.m., and featured a series of presentations by distinguished speakers and panelists. REALTORS® could tune in when they wanted, watch as long as they liked, ask questions if they wished, and leave when they had other business to attend to.
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When they did tune in, they heard a panel from NAR REACH consisting of Tyler Thompson, Lynette Keyowski, and Jeff Turner talk about “Leveling the Playing Field with Global Proptech”; learned about “Developing a Mindset of Creativity and Confidence During Times of Chaos” from Kamille Rose Soler; received an update about new laws and forms from Gov Hutchinson; heard a women’s powerhouse panel consisting of Eileen Oldroyd, Shannon McGahn, Jennifer Branchini, and Leslie Rouda Smith discuss “Leading with Grit and Grace”; listened as John Murray revealed the success secrets of top U.S. producers; learned from Jay Barbuto about the importance of political skills and how to navigate the ins and outs of professional relationships; and saw featured keynote speaker Erin Brockovich describe the “Four Ls.”
Photos: www.istockphoto.com Deagreez
EVENTS
EVENTS
“A pandemic rearranges your priorities. It creates bursts of creativity and accelerates the adoption of technology.”
Photo by Marion Butterfield
— Tyler Thompson
Jeff Turner, Lynette Keyowski, and Tyler Thompson
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“Anything that takes you away from your goal, your vision, is your enemy.” — Kamille Rose Soler Kamile Rose Soler
The Elephant in the Room
“Go BIG”
Jeff Turner opened by saying, “I want to address the elephant in the room,” and identified that pachyderm as the COVID-19 pandemic.
Peak Performance Coach Kamille Rose Soler asked, “What keeps you from getting things done?” Then, to underscore the importance of the answer, she added, “Anything that takes you away from your goal, your vision, is your enemy,” and advised REALTORS® to eliminate distractions from their environment.
“A pandemic rearranges your priorities,” commented Tyler Thompson. “It creates bursts of creativity and accelerates the adoption of technology.” “Often, we don’t feel the need to move until we have to,” added Lynette Keyowski. “The whole dream of technology was that it would level the playing field,” said Jeff. “We have seen a significant increase in the number of people who are able to attend conferences.”
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Kamille encouraged members of her audience to “Go BIG by Beginning In Gratitude” and to “schedule stillness” because “stillness is actually your greatest tool to defeat the chaos in your life.”
Photo by Marion Butterfield
EVENTS
Photo by Marion Butterfield
EVENTS
Gov Hutchinson
Jay Barbuto
New Laws, New Forms, and New Approaches to In-Person Showings
Gov also spoke about the Fair Housing Advisory. He cautioned listing agents not to allow their clients to see “love letters” from potential buyers because “sellers are not supposed to consider the personal situation of the buyer.”
California Association of REALTORS (C.A.R.) Attorney Gov Hutchinson outlined the provisions of the Tenant Relief Act of 2020. Signed by Governor Gavin Newsom on August 21, this law provides that residential tenants who are unable to pay rent during the COVID-19 emergency cannot be evicted for rents that became due between March 1, 2020, and January 21, 2021, if certain requirements are met. Gov indicated that, despite this new law, landlords still can evict a tenant if the reasons for the eviction are other than financial or if the tenant refuses to sign a new lease.
And he reminded REALTORS® that open houses are not allowed, that in-person showings are limited to one buying party at a time, and that all participants must wash their hands and wear masks. In addition, REALTORS® must open windows (if the weather permits), sanitize doorknobs and other frequently touched surfaces, and clean the bathrooms. He told REALTORS® that, when they are working, they are supposed to be wearing a mask and staying six feet apart. He cautioned that knocking on doors is not okay and that papers of any kind should not be left behind, even in a flyer box.
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Photo by Marion Butterfield
EVENTS
Jennifer Branchini, Eileen Oldroyd, Leslie Rouda Smith, and Shannon McGahn
Grounded, Steady, Ready, and Adaptable A women’s powerhouse panel consisting of Eileen Oldroyd, Shannon McGahn, Jennifer Branchini, and Leslie Rouda Smith discussed “Leading with Grit and Grace.” Eileen asked, “When COVID-19 changed the rhythm of things, what started going through your head?” Jennifer responded, “We’re REALTORS®. We are very controlling, but we couldn’t control this and make it go away.”
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Shannon said, “At the beginning of March, National Association of REALTORS® CEO Bob Goldberg saw what was happening and said that he wanted the NAR staff to stay home. We hosted our annual fly-in meeting completely virtually—and tripled our attendance. We went from 10,000 to 30,000 registrants. This new approach is something we can take into the future.” Eileen added, “Like soccer goalies, REALTORS® need to be grounded, steady, ready, and adaptable.”
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Work on Your Business, Not in It John Murray, who has personally listed and sold more than 17,000 homes and was ranked by the Wall Street Journal as one of the top two REALTORS® in the world for six consecutive years (2011–2016), said, “Until you let go of control, you are only going to be as big or as good as yourself. Your effort needs to be resultsdriven. Your business is like your garden: you plant the seeds, you water the plants, you trim and weed, but the garden grows on its
EVENTS
“Like soccer goalies, REALTORS® need to be grounded, steady, ready, and adaptable.”
“Don’t be afraid to grab the torch and get in the game!”
— Erin Brockovich
— Eileen Oldroyd concluded in 1996, the $333-million settlement was the largest classaction payout in history. The law firm for which Erin was working as a legal clerk at the time received $133.6 million of that settlement, and she was given a bonus of $2 million.
Erin Brockovich
own. Don’t be the center of your business. Work on your business, not in it. Don’t carry the weight of your business on your shoulders.
Superman’s Not Coming So it’s up to you to save the day. That was the message from activist and featured keynote speaker Erin Brockovich. Erin was born in Lawrence, Kansas, on June 22, 1960, and grew up in that midwestern state. Her mom, Betty Jo Pattee, who was a journalist and a sociology major, told her that, to overcome obstacles,
“You just need to have your stick-toitiveness.” Her dad advised her to “be the eagle and soar.” To their words of encouragement, Erin added her own natural curiosity. In 1982, Erin moved to California, where her curiosity caused her to question the source of some green water she saw and eventually led her to discover that groundwater near the small Mojave Desert town of Hinkley had been contaminated by hexavalent chromium when waste water from a cooling tower system was discharged into nearby unlined ponds. When the resulting legal case (Anderson v. Pacific Gas and Electric)
Erin spoke of the importance of the Four Ls: Logic, Leverage, Loyalty, and Love. Logic, she said, is your common sense, your gut, your ability to observe what’s going on around you and come to a conclusion about it. Leverage is the power of a car jack to lift and move. It is what you have when other voices are joined with yours to help you be seen and heard. Loyalty is commitment to yourself, to your work, to your stickto-itiveness. And Love is where you get your inspiration, your mojo. “We love our job, we love our family, we love our freedom, and we love our country,” said Erin Brockovich. Then, she advised, “Don’t be afraid to grab the torch and get in the game!”
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COMMERCIAL REAL ESTATE NEEDS HELP
STABILIZING Eliminating 1031 like-kind exchanges would hit mom and pop investors hardest and cause a devastating domino effect on the economy. By Shannon McGahn Senior Vice President of Government Affairs, National Association of REALTORS®
T
hanks to forbearance and other emergency benefit programs, the residential real estate market is holding strong during the pandemic. Millions of Americans are actually seeing their home values increase. This brings a great sense of security to families and a much-needed dose of confidence in the economy.
Without further intervention, the situation could go from bad to worse. With punitive and misguided new policies, it could go from worse to catastrophic. One of the pillars of commercial real estate is the 1031 like-kind exchange, which allows investors to defer paying taxes on the sale of real estate if the money is immediately reinvested in another productive property.
But not all real estate is equal. Due to the pandemic, more than 100,000 small businesses are permanently shuttered, and an additional two million are at risk of immediately closing. New tenants are in short supply. As a result, commercial real estate is hemorrhaging, and the value of commercial property is in a free fall. We don’t need a history lesson from the 2008 housing crash to know how devastating a domino effect can be to real estate and the overall economy.
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Some believe like-kind exchanges are used only by the super-rich and think closing this so-called loophole would create an easy pot of gold at the end of the rainbow. So, let’s bust a few myths about who uses Section 1031 and whom it benefits. Recent data show that only 5 percent of exchanged properties are held by regular corporations. The vast majority actually are held by mom and pop investors— sole proprietors and pass-through businesses such as partnerships and S corporations.
Photos: www.itosckphoto.com/Nikolay Pandev
GOVERNMENT AFFAIRS
GOVERNMENT AFFAIRS A 2015 study further revealed that 88 percent of exchanged properties were later disposed of through a taxable sale. And taxes paid are 19 percent higher when a property is exchanged then sold versus never having been exchanged. The myth of the indefinite exchange to avoid taxes is just that—a myth. Allowing investors a free flow of capital allows them to buy into higher-priced and more productive properties which creates more tax revenue—and job opportunities and growth. The idea that repealing 1031 would raise revenue is a pipe dream. The great majority of properties now swapped under the like-kind exchange would not be sold if tax was due. Rather, their owners would continue to sit on the property, and the growth opportunity for putting the investment to better use would be wasted with the government collecting little in extra revenue. Beyond the preservation of 1031 like-kind exchanges, other types of assistance are needed to prevent the collapse of commercial real estate. More initiatives like the Paycheck Protection Program (PPP) will help small business owners outlast the pandemic and pay their bills and workers. Other actions like remote online notarization help stabilize the industry and grease the wheels of commerce. This innovation is so far covered in a patchwork of state rules, but a uniform approach nationwide could be critical during the pandemic. The real estate industry makes up nearly one-fifth of the entire American economy, and access to property ownership in the U.S. is the envy of the world. Any policy to weaken this foundation harms the economy at a time when we need to deploy every tool possible to support to it.
“
Shannon McGahn is Senior Vice President of Government Affairs for the National Association of REALTORS® (NAR). In this capacity, she is responsible for managing NAR’s Federal Legislative and Political Affairs and Political Representative teams. The first woman to hold this position in NAR’s 110-year history, she earned a Bachelor of Arts in History from George Washington University and has nearly two decades of experience working with or for the executive and legislative branches of the U.S. government. Many members of Orange County REALTORS® will recall that she was one of four participants in the women’s powerhouse panel during REXPO in September (see page 42 in this issue of OC REALTOR®). Shannon’s article, which was published on July 23, 2020, is being reprinted from REALTOR® Magazine by permission of the National Association of REALTORS®. © Copyright 2020. All rights reserved.
“
Without further intervention, the situation could go from bad to worse. With punitive and misguided new policies, it could go from worse to catastrophic.”
The myth of the indefinite exchange to avoid taxes is just that—a myth.
”
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AFFILIATES IN ACTION
AFFILIATES HELP EDUCATE Reem
Ronald
KurdMisto
NEW
Sinclair
Mike
Evelyn
Grambow
McDonald
REALTOR® Pat Enyart
Joe Joe
Pierce Pierce
MEMBERS Kerri Finch
IN SEPTEMBER Because of the limitations placed on group gatherings during the COVID-19 pandemic, Orange County REALTORS® is offering its regular New REALTOR® Orientations online.
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A special thank you to the following Affiliates who provided short video clips to help educate the new REALTOR® members who joined Orange County REALTORS® in September: Affiliate South Chair Joe Pierce, Iron Key Escrow; Affiliate South Co-Chair Reem KurdMisto, National Pacific Lending; Affiliate North Chair Kerri Finch, J&J Coastal Lending; Affiliate North Co-Chair Mike Grambow, JMJ Financial; Ronald Sinclair, The Star Cleaning System; Evelyn McDonald, New American Funding; and Pat Enyart, Ultimate Drone Productions.
OC REALTOR®
MENTIONS USPS Form 3526-R Reporting Requirement for Periodical Postage Permit
What Our Members Are Grateful For
The information below is being published as a requirement to maintain our Periodical Postage Privileges.
In the What’s Up that was sent to members via email on October 5, we observed that 2020 had been a rough year for many reasons. Because we wanted to celebrate the accomplishments of our members and to mention some of the good things that have happened, we asked readers to tell us what they were especially grateful for this year. Printed below are two of the responses we received.
Publication Title: Orange County REALTOR®; Publication Number: 1945-2179; Filing date: 10/01/2020; Issue Frequency: Bimonthly; Number of Issues Published Annually: 6; Annual subscription Price: $6.00; Complete Mailing Address of Office of Publication, Office of Publisher, Publisher, Editor and Managing Editor, Owner: Orange County REALTORS®, 25552 La Paz Road, Laguna Hills, Orange County, CA 92653-5127; Tax Status: Has not changed during the preceding 12 months; Issue Date for Circulation Data: September 2020; The period includes 12 months. Average Number of Copies Each Issue During Preceding Twelve Months: Total Number of Copies: 14,338; Paid Subscriptions, Outside-County: 4,821, In-County: 9,012; Total Paid Circulation 13,833; Nonrequested Distribution: 230, Total Nonrequested Distribution: 230; Total Distribution: 14,063; Copies not Distributed: 275; Total 14,338; Percent Paid: 98.36% Number of Copies of Single Issue Published Nearest to Filing Date: Total Number of Copies: 14,500; Paid Subscriptions, Outside-County: 4,565, In-County: 9,404; Total Paid Circulation 14,747; Nonrequested Distribution: 50, Total Nonrequested Distribution: 50; Total Distribution: 14,019; Copies not Distributed: 481; Total 14,500; Percent Paid: 99.64%
CALL FOR MENTIONS
The Courage and Faith to Pursue
My Dreams
In mid-March of this year, because of COVID-19, I was laid off from my real estate office manager position. Initially, I was devastated. However, after doing a bit of “soul searching” and having been in this business for more than twentyfive years with experience that includes sales, recruiting, training, and managing everything from small boutique brokerages to a Coldwell Banker franchise branch office, I decided it was time to step out of my comfort zone and go out on my own. Although I was optimistic and excited about the possibilities, I was also extremely anxious about what the future held. To keep it short, I am proud to say that my business has not skipped a beat and, in fact, is doing better than ever! I have surrounded myself with a fantastic team, awesome network, and wonderful clients, and I am incredibly grateful to do what I love on my own terms each day. It may have taken a few years, but I am so glad that I finally had the courage and faith to pursue my dreams! I appreciate all that Orange County REALTORS® does to support its members, including all of the member training and tools! Having been a member of various REALTOR® Associations, I can honestly say that not all Associations are created equal! Thank you, OC REALTORS®!!!
– Debra Osborne
Photos: www.istockphoto.com/fcafotodigital
Statement of Ownership, Management, and Circulation:
During This Thanksgiving Season
My Eldest Daughter’s Wedding on August 8
My eldest daughter, Brittany Rose, getting married to her fiancé on August 8. It was a beautiful event, even with all the challenges that this year has brought. However, it will always be remembered. We are looking forward to their journey together!
– Duane Beisner
Media postings and emails intended for possible publication in this magazine should be sent either to Director of Communications and Programs Sabrina Blair at Sabrina@ocrealtors.org or to Writer and Editor Sherri Butterfield at Sherri@ocrealtors.org. All written material may be edited for content, length, or style and may appear either online or in print. Emails become the property of Orange County REALTORS®. Although some may be answered, none will be returned. OC REALTOR®
NOVEMBER | DECEMBER 2020
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