2014 july august realtor magazine

®

J U L Y | A U G U S T 2 0 1 4

W E ’ R E M A K I N G O U R C O M M U N I T Y A B E T T E R P L A C E T O L I V E

INSIDE

Government The Hottest Issues

Tejon RanchOutlets Discussed

Seller LeadsThe Nitty-gritty

Design for LivingWhat’s your ROI

a tree today!YOUR GIFT WILL ENRICH OUR COMMUNIT Y AND ENVIRONMENT

CALL NOW! Order your tree today

661-635-2300www.bakersfieldrealtor.org

Win up to $100,000HELICOPTER GOLF BALL DROP

Numbered golf balls will be dropped from a helicopter over the RiverLakes Ranch Golf Course green toward the target hole on October 24, 2014 at 5pm. If your ball is picked from a predetermined number of golf balls and lands in or closest to the hole, you will win our Grand Prize!

GRAND PRIZE: $100,0001st Prize: $2,5002nd Prize: $1,000(1st & 2nd prize are guaranteed winners)

For contest details or to purchase tickets, call 635-2300 or visit the Bakersfield Association of REALTORS®

SUPPORT OUR LOCAL CHARITIES: The Wounded Heroes Fund and Habitat for Humanity. BUY YOUR GOLF BALLS NOW!

$20 - 1 Golf Ball $100 - 6 Golf BallsEVERY GOLF BALL HAS A CHANCE TO WIN!Open to the public. Need not be present to win.

Cost of a tree

$40 plus tax

(To have it professionally planted, add an additional

$45 fee for labor).

2 BAKERSFIELD REALTOR® MAGAZINE

update

CONTENTSBAKERSFIELD REALTOR® MAGAZINE

Executive Editor - Linda Jay, CEODesigner - Carol Duran

Bakersfield Association of REALTORS®

2300 Bahamas Drive, Bakersfield, CA 93309P. 661-635-2300 F. 661-635-2317www.bakersfieldrealtor.orgwww.bakersfieldrealtor.comfacebook.com/bakersfieldrealtorstwitter.com/bakorealtors

ON THE COVERSAVIOR OF THE UNION

“In this temple, as in the hearts of the people for whom he saved the Union, the memory of Abraham Lincoln is enshrined

forever.” Beneath these words, the 16th President of the United States sits immortalized in marble as an enduring symbol of unity, strength, and wisdom.

Recognizing our 2014PAC CONTRIBUTORS

SQUATTERS EVICTEDPilot program provides aid to law enforcement and property owners

UPCOMING FHA RULEFederal agency may restrict financing in HOA - governed communities that impose transfer fees

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MEMBERSHIP BENEFITSOur Association offers various REALTOR® benefits tailored just for you and your business

REALTOR® APPSNAR offers many free apps to help you with your business while out on the field

CLAIM YOUR REALTOR PROFILE ON realtor.com®

Authenticate your Realtor® status on your profile to help build repeat and referral business

PICK A PALETTEA new coat of paint on the wall can improve your home’s value. Emphasize your home’s assets and hide the flaws

OMBUDSMANJoe Newton tackles Mediation. Avoid arbitration or court by first getting matters resolved in mediation

WHAT’S RIGHT WITH HOUSING?We so often focus on the negatives of the housing market, that we forget to see how the overall housing market is actually improving.

YPN SOFTBALL TOURNAMENT SNAPSHOTSIt was a fun day in the park with family, friends and peers. The winner of the tournament is?...

MEET OUR 2015 OFFICERS AND DIRECTORSNew election process makes voting a breeze. We are are pleased to announce your new leadership

2014 SCHOLARSHIPSEight of our local students were awarded scholarships to help them fulfil their dreams of obtaining a degree

®

LETTER FROM THE PRESIDENT

T here is a saying, If you don’t like something, change it; if you can’t

change it change the way you think about it. We have experienced

a few major changes in our Association during the first 6 months of

2014. Let’s recap a few of those highlights!

We implemented our first online voting process for the 2015 Officers and

Directors, which was a huge success! It was not only easy for each and everyone

that took the time to vote, but the ratification of the ballots was smooth,

accurate and effortless for our election committee. When the opportunity

comes around again, please take the opportunity to cast your votes. Your voice

does count, so exercise that right and vote!

We held a special membership meeting to consider an amendment to our

Association By-Laws to conform to what has always been our underlying policy,

that there will only be two representatives from any one real estate brokerage

firm on the Board of Directors at any time. This gives all offices, large or small,

an equal voice in our Association’s governance.

We are in the final stages of forming our own 501c3 charitable non-

profit foundation. We are almost there, and before year-end we will have

the Bakersfield Association of REALTORS® Charitable Foundation up and

running! This will greatly streamline our efforts to support charities approved

by the Foundation’s Board of Directors while providing a simplified method

allowing our donors to make tax deductible contributions. This has been a long

time in the making and our efforts are finally bearing fruit! With a renewed

vision, the possibilities are endless.

Coming soon! (and I’m not referring to signs) The revision of C.A.R.’s new

RPA-CA (purchase agreement) will be released in November! Gov Hutchinson

will be providing an in-depth, 4-hour CE credit training session, covering all

the changes made to the contract on September 23 at the DoubleTree Hotel.

Knowing the contract is vital to your business and your success! To encourage

participation in this essential contract class, the Association Board of Directors

voted to supplement half the cost of the class, just for our REALTOR®

members. The cost for our members is $30 and $75 for non-members. $30

for an accredited class is a small investment in your future and career! Be one

of the elite that is ahead of the competition and prepared to hit the ground

running when the new RPA-CA rolls out. You won’t want to miss this valuable

educational session! Sign up today!

Let’s continue to make good things happen during the rest of the year! Keep

the sales rolling and your involvement top notch!

Continue to Change your Words… Change your World!

Change your World

5BAKERSFIELD REALTOR® MAGAZINE

We hold these truths to be

self-evident, that all men

are created equal, that

they are endowed by their Creator

with certain unalienable Rights, that

among them are Life, Liberty and the

pursuit of Happiness. That to secure

these rights, Governments

are instituted among Men, deriving

their just powers from the consent of

the governed.

INDEPENDENCE DAY… The anniversary of the adoption of our Declaration of Independence… the birth of our great nation! With the signing of this document on July 4, 1776, a standard was set… a moral standard to which the United States should strive… a statement of principles through which the United States Constitution should be interpreted. Can you imagine the message of hope and encouragement this gave to those who sacrificed and fought so courageously to earn those rights! But could they even begin to imagine the great power, influence and inspiration the words of this declaration would have, not only to our own country, but to nations throughout the world?

Despite the fact that we often become overwhelmed and filled with anxiety over the turmoil and uncertainly that fills our world today, those truths have never waned… nor should our dedication and commitment for which we have been entrusted to promote and defend.

There are symbols that serve as a constant daily reminder of our nation’s purpose and commitment, which include the American Flag, the bald eagle and the Great Seal of Our Nation. For 238 years the American Flag has been a source of pride and inspiration,

symbolizing our nation’s strength and unity; the bald eagle was selected in 1782 because of its long life, great strength and majestic looks; and our great seal which shows the bald eagle with its wings outstretched. It holds a bundle of 13 arrows in its left talon (referring to the 13 original states), and an olive branch in its right talon, together symbolizing that we have a strong desire for peace, but always ready for war. The eagle has its head turned toward the olive branch, on its right side, symbolizing a preference for peace. In its beak, the eagle clutches a scroll with the motto E pluribus unum (“Out of Many, One”).

As the benefactors of the freedoms we so abundantly enjoy today, we have a profound moral obligation and responsibility to never forget and to continue to honor and protect those freedoms for generations to come!

In a society where apathy is rampant and accountability fleeting (personal and governmental), are we willing to acknowledge our complacency and commit today to the standard set 238 years ago and renew our commitment to making a positive difference?

Symbols of Our Freedom

LETTER FROM THE CEO

PresidentTheresa OlsonRE/MAX Magic

President-ElectSheri AnthesColdwell Banker, Preferred — Ming

Vice PresidentBill Redmond Watson Realty ERA

Secretary/TreasurerMidge JimersonBoydstun Realty Co. Inc.

Immediate Past PresidentDavid KnoebFrontier Real Estate Services

Chief Executive Officer - Linda Jay

2014 OFFICERSAthena CollupMiramar International – Marketplace

Pam EppsEPCO & Associates

John Garone, Jr. Coldwell Banker Preferred - Westwind

2014 DIRECTORSDavid Gay Scott Tobias Real Estate

Jacob Marquez Miramar International – Marketplace

Derek Sprague Sprague Real Estate Group

Wayland Louie RE/MAX Golden Empire

Kevin Palla Watson Realty ERA

THE NAR ISSUES BY KIM SCHAEFER, Government Affairs Director Bakersfield Association of REALTORS®

The REALTORS® Midyear Meeting and Trade Expo is where the National Association of REALTORS® takes an active role in advancing the real estate industry, public policy, and the Association. Our Bakersfield delegation was in Washington, DC for special issues forums, committee meetings and legislative activities. We took the following issues to our congressional members: Preserve the Mission and the Purpose of the FHA Program It is important to ensure that the FHA single-family program has the tools and policies in place to meet its mission of providing access to safe, affordable mortgage financing to qualified borrowers nationwide, without imposing burdensome limitations.

H.R. 2767 - Protecting American Taxpayers and Homeowners (PATH) Act - Garrett (R-NJ) / Hensarling (R-TX) – OPPOSE

The House Financial Services Committee has passed the PATH Act. This legislation makes significant and troubling changes to the FHA program, including increasing down payment requirements, lowering FHA’s loan limits, and significantly restricting who can use the program. This bill alters and reduces the role of the FHA, curtailing opportunities for homeownership for millions of qualified American families. NAR strongly opposes this bill.

S. 1376 - FHA Solvency Act of 2013 - Johnson (D-SD) / Crapo (R-ID) – SUPPORT

The Senate Banking Committee has passed the FHA Solvency Act of 2013. This bill contains common sense reforms which give FHA greater authority for risk management

and provide additional tools to the FHA to better manage taxpayer risk.

FHA, like every other holder of mortgage risk, has incurred financial losses as a result of high foreclosure rates. FHA has taken a number of steps to recoup its financial stability. These steps include increasing premiums five times in the last 2 years, increasing down payments on some borrowers, and increasing its risk management practices.

Congress should not impose additional cost or qualification burdens on consumers. Further mandated increases to premiums or down payments will disenfranchise American families and hurt our nation’s housing and economic recovery.

This legislation provides the FHA with flexibility to make necessary changes to the program, adds new taxpayer protections against lenders who make errors of material fact, and improves program oversight.

REALTORS® TACKLE THE TOUGH ISSUES

®The Hottest Legislative Topics

Preserve Real Estate-Related Tax PoliciesLawmakers should remember the vital role that real estate tax provisions play in the nation’s housing markets and economy, as well as the financial well-being of America and families.

While tax reform is currently on the “back burner”, the ideas introduced by House and Senate tax reform draft plans will be reconsidered when Congress gets serious about moving tax reform. It is important Congress understand now that reforms which harm real estate are non-starters. In the meantime, there are also urgent provisions which have expired that Congress should extend now.

Mortgage Interest Deductions (MID): For more than a century, the MID has helped make homeownership more affordable for families of moderate means. Any efforts to eliminate or weaken mortgage interest deductions for primary and second homes.

Property Tax Deduction: Property taxes paid are not properly considered “income” for income tax purposes. Eliminating the deduction would result in double taxation. Eliminating property tax deductions should be opposed.

Mortgage Debt Forgiveness Relief Act: A provision that waives income tax on mortgage debt forgiven in a short sale or a workout for principal residences expired at the end of 2013. If distressed homeowners

have to pay a tax on “phantom income” from forgiven debt, many will proceed with short sales or workouts and will go into foreclosure. Congress should extend this tax relief now.

Like-Kind Exchanges: This longstanding provision allows investment real estate to be exchanged for property of a like-kind on a tax deferred basis. Exchanges are a key part of a high percentage of investment real estate transactions; if repealed fewer development projects will go forward, resulting in fewer jobs.

Reform the Secondary Mortgage Market to Provide Certainty in the U.S. Housing Market

Lawmakers should restructure the secondary mortgage market to ensure that affordable mortgages are available to all consumers in all types of markets, and to avoid a major disruption to the nation’s economy which would result from the total collapse of the housing finance sector.

Fannie Mae and Freddie Mac were created to ensure that creditworthy borrowers had access to affordable mortgage capital no matter where they lived in the United States. For more than 70 years, the system worked well, combining government support and private capital to make affordable mortgages available to consumers. The system faltered during the housing collapse, and since 2008, Fannie Mae and Freddie Mac have been in conservatorship under the supervision of the Federal Housing Finance Agency (FHFA).

During the last two sessions of Congress, there has been much discussion regarding the causes of the housing collapse, and the role that Fannie Mae and Freddie Mac played. It is unclear if any of the current proposals to overhaul the housing finance systems will be signed into law this year.

C.A.R. ISSUESEach year, thousands of REALTORS® meet in Sacramento on Legislative Day to advocate on key issues affecting the real estate industry. Here are the summaries of the issues that the Bakersfield delegation discussed with legislators.

SB 1439 – Ellis Act Restrictions – Leno (D-SF) / AB 2405 – Ammiano (D-SF) – OPPOSE

As background, the “Ellis Act” prevents local governments from passing laws restricting the ability of landlords to go out of business. The Ellis Act currently provides protections in terms of advance notice to tenants, relocation assistance and extended notice protections for seniors and the disabled when a landlord elects to go out of the rental business.

SB 1439 (Leno) would force landlords to stay in business for at least five years, and AB 2405 (Ammiano) would prevent landlords from ever going out of business.

SB 1439 would empower local government to restrict the ability of landlords to take rental units off the market unless every owner of that rental property has owned the property for at least FIVE consecutive years. This effectively forces landlords to remain in the rental housing business, making it impossible for these owners and their families to occupy their own property.

Additionally, under SB 1439, if an owner submits a notice to take rental units off the market, that owner cannot submit a notice on any other property he/she subsequently purchases.

While SB 1439 only applies to the City and County of San Francisco (a “district” bill), AB 2405 applies statewide. SB 1439 sets the stage for this effort to spread throughout the state, limiting and restricting the rights of private property owners to buy and occupy


LEGISLATIVE Continued on page 10

NAR OfficesWashington D.C.


PRESIDENT CIRCLE LIFETIME INVESTOR

$10,000 - $15,000

Jeanne Radsick

NAR GOLDEN R

Jeanne Radsick

CAR GOLDEN R

Gail MaloufTheresa Olson

Scott TobiasLinda Jay

CAR GOLDEN R

RECOGNIZING OUR

2014 PAC CONTRIBUTORS

Sheri AnthesDavid Knoeb

Bakersfield Association

NAR STERLING R(NAR STERLING R)

Chartered

of CONTRIBUTORS of $148 True Cost of Doing Business

Frank C. Jr. Abbott

Robin Ablin

Todd Ablin

Adriana Aguirre

Anna A. Albiar

Elvia E. Alvarez

Annette M. Anello

Sheri Anthes

Jim Jr. Antt

Barbara A. Apsit-Incardone

Barbara Archer

Tony Ayon

Bruce G. Barnhard

Bryan Batey

Kenneth G. Beavers

Robbyn Belezzuoli

Gary Belter

Melody Joy Blain-Eilers

Penny Boeman

Kay Boyer

Lester A. Boynton

Kathy Breeding

Lisa L. Brown

Sara S. Burnette

Juan M. Bustamante

Donald G. Bynum

Betty J. Byrom

Judy M. Camp

Rhonda K. Canady

Lezlie Chaffin

Jennifer M. Chou

Lavaundia Clark

Richard Clasen

Athena M. Collup

Ivan De La Torre

April D. Degagne

Rosina Jeppi Dewar

Gayle Dobbs

Joy E. Dorotheo

Shahabeddin Drakhshandeh

Louis Duarte

Yolanda Duran

Felice P. Durazo

Ann Enge

Silvia Espinoza

Nance Fillmore

Valerie J. Fisher

Lydia E. Fleming

Kristina Foit

Darlene F. Foss

Nikkie L. Fowler

Michael Aaron Freedman

Pascual Garcia

John Garone

John J. Garone

David Gay

Baljit S. Gill

Manuel Gomez

James Graddy

Louie Gregorio

Scott I. Hanson

Suzanne L. Harandi

Nancy Harper

Stacy Harrison

Carol Helm

Iliana Hernandez-Abbas

Midge Jimerson

Seth E. Johnson

Travis S. Keller

Alyssa M. Knight

John B. Knight

Scott D. Knoeb

Garry Kornbau

Wayne Kress

Dana R. Kuntz

Jean E.C. Laborde

Yan Lahn

Marie Lenzi

Phyllis R. Lopez

Wayland Louie

John P. Mackessy

Josephine U. Magat

Robert L. Malkin

Gail Malouf

Jacob Marquez

Joanne Martin

Martin Mayorga

Diana L. McCombs

Timothy F. McCrary

James A. McEwen

Christie Ya Meek

Ian A. Mellon

Judy Miller

Melba D. Mohlke

Carol R. Moore

Dana L. Munson

James T. Murphy

Lourdes N. Naff

Ronda Newport

Walt Newport

Kevin Palla

Alejandra Pelayo

Angela Perdikis

Glenn Porter

JP Porter

Maria L. Prior

Kristin D. Raymond

Bill Redmond

Sal Rivas

Scott Rivera

Brandon Gene Roberson

Debra A. Roberson

Joe Roberson

Blodgie M. Rodriguez

Justin Ryan

Mike Saba

John Sanchez

Joe S. Sandhu

Joe Santa Cruz

Aileen Saucedo

Jeri Schueler

Sandy Segrest

Frank Simon

Darrell Sparks

Derek Sprague

Frank St. Clair

Gayle E. Stewart

Tracy L. Studebaker

Luz O. Tamarra

Teresa D. Taylor

Brian N. Tuttle

J. Steve Urner

Michelle R. Vaca

Thomas Varughese

James Vaughn

Lisa A. Villaseno

Marie C. Villaseno

Leslie R. Walters

Teri L. Ward

Ashley Weaver

Dan Wells

Wanda A. Winkler

Maria C. Woods

Jesse Zepeda Garcia

Jose J. Zepeda

Pam L. Zulfa

CONTRIBUTORS Less Than The True Cost of Doing Business

Mary K. Allen

Rhonda L. Anderson

Becky Ashcraft

James M. Bean

Jessica L. Chester

Rita G. Corson

Stacy L. Cox

Ben J. Farber

Perminder K. Gill

Alexandra Guerrero

Roger Herrick

Martha L. Johnson

Barbara Konnoff

Debby Krohn

Troy T. Lei

Elizabeth Marquez

Debra McTaggart

Valerie M. Moses

Tracy M. Nail

Maria Ochoa

Maria Pandura

Coleen Peters

Ricky Portillo

Issam Qassim

Emily C. Smith

Isella Vega Arellano

Diane F. White

John W. Willingham

Jackie Wilson


CONGRESS

Kevin McCarthyHouse Majority Leader U.S. Congressman 23rd DistrictPhone: 661- 327-3611D.C.: 202-225-2915www.kevinmccarthy.house.gov

David ValadaoU.S. Congressman 21st DistrictPhone: 661-864-7736D.C.: 202-225-4695www.valadao.house.gov

MEET YOUR 2014 REPRESENTATIVES

STATE

Jean FullerSenator 18th DistrictPhone: 661-323-0443Sacramento: 916-651-4018Email: [email protected]

Shannon GroveAssemblywoman 32nd DistrictPhone: 661-395-2995Sacramento: 916-319-2034 Email: [email protected]

Rudy SalasAssemblyman 30th DistrictPhone: 661-335-0302Sacramento: 916-319-2032Email: [email protected]

Andy VidakSenator 16th DistrictPhone: 661-395-2620Sacramento: 916-651-4016Email: [email protected]

First District SupervisorMick GleasonPhone: 661-868-3650

Second District SupervisorZack ScrivnerPhone: 661-868-3660

Third District SupervisorMike MaggardPhone: 661-868-3670

Fourth District SupervisorDavid Couch

Phone: 661-868-3688

Fifth District SupervisorLeticia PerezPhone: 661-868-3690

COUNTY SUPERVISORSHarvey Hall, MayorOffice: 661-326-3770 Willie Rivera Councilmember, Ward 1Office: 661-326-3767 Terry Maxwell Councilmember, Ward 2Office: 661-326-3767Ken Weir, Vice MayorCouncilmember, Ward 3Office: 661-326-3767

Bob SmithCouncilmember, Ward 4Office: 661-326-3767 Harold Hanson Councilmember, Ward 5Office: 661-326-3767 Jacquie Sullivan Councilmember, Ward 6Office: 661-834-4943Russell Johnson Councilmember, Ward 7Office: 661-326-3767

CITY REPRESENTATIVES


their own property.These bills restrain and effectively prohibit

the free use of private property in rent control jurisdictions, provide no exceptions or relief for property owners who have personal or financial hardships, and are fundamentally offensive to the notion of private property rights.

AB 2039 - Auction Company Liability – (Muratsuchi) – SPONSOR

A new practice has arisen where some lenders require homes in a short sale transaction to be put up for auction typically run by a third party auction company chosen by the lender. If the bids come in under the original offer, then the offer is accepted. However, if a higher bid is submitted then that bidder can purchase the home.

The lender, of course, has complete control over the auction contract. As a condition of approving the short sale and absent legislation to the contrary, the lender can include a provision in the contract requiring the homeowner to agree to defend, indemnify, and hold harmless the auction company from any costs, liabilities, and damages arising in connection with any claim resulting from the auction company’s actions.

This bill would prevent real estate auction companies from shifting liability for their mistakes to sellers and listing agents when the lender sends short sale properties to auction to validate their value.

SB 391 – Recording Tax (DeSaulnier) – OPPOSE

This bill would impose a $75 tax on the recording of all non-sale documents, including refinances. C.A.R. opposes SB 391 because it unfairly singles out one segment of

society to pay for something that should be the responsibility of all Californians.

C.A.R. is opposing this bill which imposes a recording tax of $75 per document to generate funds for affordable housing programs. C.A.R. is opposing this measure because it unfairly adds to the cost of recording real estate documents. C.A.R. is an aggressive advocate for affordable housing, but believes it is bad policy to fund affordable housing at the expense of homeowners who need to record real estate documents. The real issue is that this tax is imposed only on real estate document recordings.

AB 2416 (Stone) – Wage Liens on Property – OPPOSE

This is a bill which creates a new super-lien for wage claim disputes. C.A.R. opposes AB 2416 because it threatens the availability of mortgage finance, denies due process to the owner of the property, and unnecessarily clouds title.

Under existing law, trades people and others who have conducted work to improve a property have the right to record a mechanics lien against the property for payment for that work. Additionally, if an employee has a wage dispute with his/her employer, there are multiple legal remedies available to seek fair compensation.

AB 2416 seeks to expand the mechanics lien concept so that an employee may record a lien against any property owned by the employer, even property that has NO connection to the dispute. This isn’t a standard lien right either. AB 2416 creates a super-lien for the first $50,000 of the claim. This super-lien would be paid before any other lien except tax and government liens, purchase money mortgages and mechanics liens.

REALTORS® Applaud House Passage of Mortgage Choice ActJenny Werwa | NAR

WASHINGTON – The following is a statement by National Association of REALTORS® President Steve Brown:“The Mortgage Choice Act that passed the U.S. House of Representatives. Most importantly, it redefines a provision in the Ability-to-Repay rules that limits mortgage fees and points to three percent in order for home loans to be considered Qualified Mortgages. The provision unfairly prevents brokers and affiliated lenders from making QM loans because their joint venture services are collectively counted against the cap, while individual services from large retail financial institutions are each capped separately.The Mortgage Choice Act treats affiliated and non-affiliated service providers the same way under the rule while still protecting borrowers from risky loan products.REALTORS® will continue to advocate for this legislation to clarify the QM rules as it moves to the U.S. Senate.”The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

LEGISLATIVE, Continued from page 7

Some of our local REALTORS® take a snapshot at the California State Capitol in Sacramento with Senator Andy Vidak, 16th Senate District

In recent years, sophisticated and savvy squatters moving into vacant homes in Kern County have been a frustrating problem for homeowners, REALTORS®, and law enforcement. Finally, there may be help on the way. Assemblymember Steve Fox of Palmdale has introduced AB 1513 “Squatters”. This promising bill establishes a pilot program to facilitate enforcement of criminal trespassing laws in a timely manner against persons occupying residential property.

Currently, under California law it can take a minimum of 30-60 days to evict a sophisticated squatter. The process can be unquestionably frustrating for both the homeowner and law enforcement. This bill will provide a clear-cut, expedient remedy for property owners whose homes have been taken over by squatters.

AB 1513 establishes a pilot program to be in effect until 2018 to aid enforcement of criminal trespassing laws against persons occupying residential property which (pursuant to the program) has been registered and verified by local law enforcement to be vacant. The bill outlines a voluntary pilot project which will allow property owners to declare property to be vacant and register it with local law enforcement. This will then provide greater certainty that any subsequent trespasser

upon the property will be subject to arrest for trespassing within 48 hours, so long as regular inspection of the property at 3-day intervals has confirmed it to be vacant since the date of registration.

This bill is sponsored by the California Association of REALTORS®. It would provide property owners with an additional tool to enforce criminal trespass laws. According to Assemblymember Fox, “Unlawful detainer laws are not specifically designed to provide law enforcement officials the tools they need to assist owners of residential real property in their efforts to remove or prevent occupancy of squatters on vacant properties.”

The program is intended to deter squatting and to provide a second chance for squatters to vacate the premises in lieu of arrest. The threat of arrest for trespassing on a property registered under this program will also serve as a deterrent to

sophisticated squatters targeting vacant properties.

The pilot program established by this bill applies to residential properties within the cities of Lancaster and Palmdale. It is anticipated that several more cities will voluntarily seek to be included as the bill moves forward, given the prevalence of squatting in certain areas of California where vacant homes are common as a result of the foreclosure crisis.

Assemblymember Fox continues to address workability and implementation problems within the proposed pilot program, and has demonstrated willingness to work with opponents and other stakeholders.

The City of Bakersfield and the Kern County Board of Supervisors need to submit an official request to be included in the pilot program. AB 1513 is currently in the Senate Committee on Public Safety. Contact your local elected officials (Page 9) and let them know what you think about AB 1513.

You can find additional information on AB 1513 at www.leginfo.ca.gov or by contacting Kim Schaefer.

Remember, prevention is the best solution, so take precautions to prevent squatters from moving in the first place. Keep your property secure at all times. Drive by your properties and inspect them daily.

Squatters EvictedPilot program provides aid to law enforcement and property owners

Kim Schaefer GOVERNMENTAFFAIRSDIRECTOR

Call Mike George at 324- 2427 for more information

THEATEAMMembers of The A Team! Collectively, these individuals

form a group of loyal, hard-working Affiliate members who serve the Association in a variety of ways. Over a long period of time, they consistently:

n Attend activities and events such as 1st Thursday Brew & Breakfast.

n Volunteer their time and energy to support the Association’s programs and activities.

n Promote Association activities to other members.

n Contribute raffle items and door prizes, as well as sponsor various programs and special events.

For all their efforts, A Team Members earn these opportunities:

n Featured in all issues of Bakersfield REALTOR® Magazine.

n Complimentary advertising through The A Team contact list on the Association website.

n Complimentary recognition on the Association Reception TV.

n First opportunity to sponsor key events with sponsor banner.

If you’re interested in joining The A Team contact Mike George, our Affiliate Chair!

SHERYL GALLIONTicor Title

[email protected]

LISA HOOKProspect Mortgage

[email protected]

www.myprospectmortgage.com

SAM JABUKAJabuka Home Inspections

[email protected]

MONA CIMENTALProperty I.D.

[email protected]

www.propertyid.com

ASHLEY WEAVERKarpe Real Estate Center

661.847.4982karpe.com

[email protected]

BARBARA WELLSSan Joaquin Valley

Mortgage 661.703.2227

[email protected]

MICHELE COOPERChevron Valley Credit Union

[email protected]

You can be a part of The A Team too!

Over the years we have developed a special partnership with our Affiliates in Action who have given so much to our members!

Mike George Affiliate ChairAgape Mortgage mikegeorge @agapemtgco.comwww.agapemtgco.com 661.324.2427


KEN HARNEY | CONTRIBUTOR

REALTORS®, lenders and community associations are up in arms about forthcoming Federal Housing

Administration rules they believe could make mortgage financing more expensive — maybe even impossible — for large numbers of buyers and sellers around the country.

The concerns are not about condo certifications this time around — an issue that has caused hundreds of condo developments to drop their eligibility for FHA mortgages on individual units. The new problem is even broader, affecting potentially tens of thousands of homeowner associations which routinely impose transfer fees whenever units are sold.

The fees, which range from $100 to $500 in most cases, are used frequently by HOAs to replenish capital reserves, make improvements to infrastructure, or even fund environmental conservation activities.

Unlike the controversial investor-driven private transfer fees marketed by Wall Street’s

Freehold Capital Partners in 2010 and 2011, most HOA transfer fees are used to benefit the community.

Here’s the problem: In response to the widely-criticized private transfer fee programs, Fannie Mae and Freddie Mac adopted guidelines in 2012 that banned private-purpose, investor-benefit transfer fees from eligibility for conventional financing. Their rule carefully distinguished between the Freehold Capital type of fees — which generated income streams for bond investors for up to 99 years — and the typical HOA transfer fees designed to benefit the community’s residents.

More recently, lawyers at the U.S. Department of Housing and Urban Development’s Office of General Counsel have warned FHA that under existing “free assumability” regulations, the agency is not permitted to insure mortgages on properties that come with “restrictions on conveyance” — encumbrances on the title that could hamper transfers. This includes fees required to be paid at the sale of units in communities governed by homeowner associations.

The Community Associations Institute (CAI), the largest trade group representing HOAs, estimated that as of 2012 there were 323,600 association-governed communities in the U.S., containing just under 26 million housing units and 63.4 million residents. Based on a recent CAI survey of members, roughly 72% of HOAs impose transfer fees of one sort or another when units are sold. Most collect flat fees but some charge a small percentage of the sale price.

According to HUD sources and interested


Upcoming FHA rule could squeeze homebuyers and sellers

Federal agency may restrict financing in HOA-

governed communities that impose transfer fees

FHA RULE Continued on page 30


The 2014 Marketing and Communications plan focuses on continuing to build a positive public image of our industry and our members. Our values and our brand are actively communicated through monthly ads in the Bakersfield Californian, Bakersfield Life Magazine and Kern Business Journal. Headlines and messages are crafted so that they represent who we are and reflect our values.

In addition to this valuable publicity, the Board of Directors has proactively created new programs and partnerships that demonstrate our commitment to our community. These help promote our members and the real estate profession.

Here are just a few examples:n Make-a-Wish Foundationn The Ronald McDonald Housen The Golden Empire Gleaners n The Wounded Heroes Fundn Bakersfield Symphony Orchestran Bakersfield Condorsn Kern Economic Development Corp.n K-12 Schools - Fair Housingn Downtown Business Associationn JJ’s Legacyn The H.E.A.R.T.S Connection of Kern Countyn American Cancer Societyn And so much more

WE PROMOTE

YOUWe market the

REALTOR® Brand and home ownership so you

don’t have to.

MEMBER BENEFIT

JUNE: Frances Alindajao — Tholco Real Estate Group, Allen II Mark Douglas — Keller Williams Realty, Michael Bettes — Keller Williams Realty, Barbra Jean Cornelius — Keller Williams Realty, John Eric Epperly — Miramar International, David Fabrizius — Miramar International, Marketplace, David Ray Gill — RE/MAX Golden Empire, Hugo Gomez — Sprague Real Estate Group, Anthony Dale Kessler — Miramar International, Haggin Oaks, Sandra Joyce Kownacki — The K Group, Adriana Gabriela Martinez — Keller Williams Realty, Angela Dawn McCuan — Miramar International, Coffee, Floyd Roberts — Platinum Realty, Inc., Marleny Rodriguez — El Valle Realty, Marlene Tello-Miguez — Karpe Real Estate Center, Connie Marie Totten — RE/MAX Magic, Amanda Watts — Miramar International, Mill Rock, Brooke Michelle Webb — RE/MAX Magic

Welcome, New Members

Your journey has just begun on making a positive impact in the lives of families in our community

Welcome to the Bakersfield Association of REALTORS®. We are a community of like-minded professionals with the same objective… to grow a stronger community. We

are more than REALTORS® we are family. Your local Association offers the highest quality of personalized, one-on-one member support found only at a local level.

new realtors® JUNE 2014


With your commitment to our Association, we offer various REALTOR® benefits tailored just for you.

EDUCATIONEducational programs, products and services to enhance your knowledge and skills for greater success in your real estate business. Many are offered at no cost or at a reduced rate for members; including, classes, seminars and hands-on user workshops covering relevant, up-to-date topics and technologies for the real estate industry. REALTOR® designation classes are also offered.

ZIPFORMS®

C.A.R. develops new standard real estate forms in response to legislative and court decisions. Each form is carefully reviewed by experienced REALTORS® and real estate attorneys, available online through zipForms®.

ADVOCACY EFFORTS AT NATIONAL, STATE AND LOCAL LEVELS OF GOVERNMENTn Your dues support REALTOR® offices in both Sacramento and Washington, D.C. which review thousands of bills on all government levelsn Our Government Affairs Director lobbies our local government agencies on issues that protect the real estate industry and private property rights.

LEGAL SERVICESAn exclusive member service, C.A.R. Legal “Hotline” responds to legal inquiries from REALTORS®. You have free access to this service with your dues investment.

OMBUDSMAN SERVICESAs a REALTOR® you have access to our Association’s Ombudsman who provides counsel, advice and education to REALTORS® and members of the public on our professional standards, monetary disputes prior to arbitration, as well as formal arbitration and Code of Ethics complaint policies and procedures.

LEGAL Q&AsAvailable to members is a full range of legal opinions pertinent to the real estate industry. Developed by C.A.R.’s attorneys and available online at www.car.org.

ETHICS & PROFESSIONAL STANDARDSREALTOR® Code of Ethics is designed to instill the highest standards of professionalism in the industry and to elevate the image of REALTORS® in our community.

MLS AND TECHNICAL SUPPORTOur MLS manager provides support and training on MLS issues relative to recent developments and trends.

COMMUNITY REALTOR® IMAGEA public relations program aimed at serving the community and elevating the REALTOR® image through fundraisers for local charities and advertising in various publications.

realtor.com® PROFILEA realtor.com® marketing profile to you at no additional cost. Claim your’s today at www.goo.gl/A01Zul

REAL ESTATE STOREA convenient location to purchase many of the supplies you need for your business. Prices are discounted for members, and charges can be conveniently made to your Association account.

C.A.R. MAGAZINEPublished by the California Association of REALTORS®, C.A.R Magazine brings

you important information on industry trends and new techniques geared towards success.

REALTOR® MAGAZINEPublished by the National Association of REALTORS® and delivered to its members, REALTOR® Magazine is filled with news and Information designed to provide insights on how to be successful in the current complex marketplace.

BAKERSFIELD REALTOR® MAGAZINEPublished by the Bakersfield Association of REALTORS® and available to its members. Bakersfield REALTOR® Magazine is filled with news and local information designed to provide insights on how to be successful in our local market.

FAIR HOUSING PARTNERSHIPImplementation of the “Fair Housing Partnership” between HUD and REALTORS® available to members, facilitating their qualification to participate in HUD sales and demonstrating a commitment to fair housing practices.

GROUP INSURANCEAs a REALTOR® member, C.A.R. offers a wide array of group insurance plans, including errors and omissions insurance, with flexible premiums and discounts.

MEMBERSHIP DISCOUNTSAvailable at participating retailers through the group buying power of the NAR and C.A.R.

LOCAL STAFF SUPPORTProfessionals serving professionals. Our professional staff is here to support you and your business.

Membership Benefits WHAT’S IN IT FOR YOU!

®Apps Created for REALTORSC.A.R. offers business tools designed just for you while out in the field or in the home

ABR App (iOS) (Free)ABR agents, this is your App! This powerful set of resources was developed to provide you with the real estate tools you need and the information your clients want.

Casmy REALTOR® (iOS) (Free)Casmy Realtor® is an easy-to-use mobile application and service for real estate professionals which optimizes Open House Events. It collects real-time visitor demographic information, buyer interest levels, qualifies loan status, property details, including the ability to generate powerful custom reports that can be shared instantly with any visitor, broker or senior management.

Dictionary of Real Estate Terms (iOS) ($3.99)Dictionary of Real Estate Terms is filled with over 3,000 industry-specific terms, covering every aspect and nuance of the real estate industry.

DocuSign Ink – Sign Documents & PDFs (iOS) (FREE)Sign documents and get signatures quickly and easily from an iPad or iPhone. Eliminate the need to print, fax or mail documents and forms for signature.

Dweller (iOS) (Pain Plans)Get great-looking mobile apps for your property for one low fee. Delivered in less than two weeks.

eBooks from NAR’s Virtual Library (iOS) (Free)Download EPUB eBooks and MP3 audiobooks directly to your device.

eKEY (iOS) (FREE)With eKEY software, use your iPhone as your lockbox key. The eKEY app updates

wirelessly so you can conduct business anywhere! The eKEY Basic app provides wireless

updates, alerts and listing keys. Keep track

of all your key boxes right from your phone! Manage and program your key boxes. Easily place and remove key boxes from listings using your phone. (You can also change your own shackle codes.)

Foreclosure Search by USHUD.com (iOS) (FREE)USHUD.com is a totally free list of foreclosures. It lists properties owned by the government and all major banks. This gives REALTORS® & Lenders an exclusive opportunity to help homebuyers purchase homes in their local area.

PropertyRadar (iOS) (FREE)Create inventory, find hidden properties, attract investors, sellers and homebuyers. PropertyRadar gives you foreclosure information from ForeclosureRadar®, plus new tools and search criteria that will open even more opportunities.

House Auction & Home Foreclosure Auction Profits (iOS) ($4.99)Making money from house auctions can be a very exciting and lucrative way to become a property investor. The quickest route to best returns is from bank foreclosure auctions. This brand new guide tells you everything you need to know to get involved in this profitable venture.

Housing Discrimination Complaint Application (iOS) (FREE)Use this app to submit a claim of housing discrimination for review by Housing and

Urban Development’s Office of Fair Housing and Equal Opportunity.

IREM Comps (iOS) (Free)The IREM Comps app is a tool that allows you to establish competitive rents for your residential, office, or retail property. You can enter data for

three comparable properties and the app will calculate the adjusted effective rent for your subject property. You will also have the ability to e-mail the results in spreadsheet format to anyone.

Junaio Augmented Reality Browser (iOS) (FREE)junaio is a mobile augmented reality


REALTOR® APPS Continued on page 24


Claim Your Profile on realtor.comBuild repeat and referral business at no cost to you

realtor.com®

Use realtor.com® to manage what people learn about you.Build repeat and referral business.

According to a recent survey by the National Association of REALTORS®, a majority of homebuyers reported that they used an agent they either knew personally or through referrals and recommendations. Get this working for you both locally and nationally so these social connections can help you

build on realtor.com® to manage your recommendations. Connect with consumers in your community by answering questions from potential buyers in your market area.Make sure your prospective customers know that you are a REALTOR®!Claim your profile and authenticate your REALTOR® status by including your NRDS number. Your profile will shout out to the world that you have subscribed to a code of ethics and are accountable to a higher standard.n Proclaim your REALTOR® status on your profile - the ® will show on your listings on realtor.com® as well!n An easy way to ask for recommendations and get them posted on realtor.com® and important social media sites.n Demonstrate your expertise; show your activity.n Your profile is the basic building block for other free tools like the realtor.com® Mobile Collaborative Search app.n Generate referrals, recommendations and repeat business.

Links for videos to watch (above):www.youtube.com/embed/PEDAT3ASKN4www.youtube.com/embed/d9sRsTdOzeY

How to get your profile:Call 1.877.569.1506 or go towww.marketing.realtor.com/realtor-profile.php

Don’t wait, manage your own profile and claim it on realtor.com® today!

®

HOME UPGRADE INDULGENCESdesign for living


Home Upgrades

BY: LISA KAPLAN GORDON |HOUS ELOGIC

File these six upgrades under wish fulfillment – not value investment.

Life is a balancing act, and upgrading your home is no different.

Some upgrades, like a kitchen remodel or an additional bathroom, typically add value to your home. Others, like putting in a pool, provide little dollar return on your investment.

Of course, homeowning isn’t just about building wealth; it’s also about living well and making memories – even if that means outclassing your neighborhood or turning off future buyers. So, if any of these six upgrades is something you can’t be dissuaded from, then enjoy! We won’t judge. But, go in with your eyes wide open. Here’s why:

1. Outdoor KitchenThe fantasy: You’re the man -- grilling steaks, blending margaritas, and

washing highball glasses without ever leaving your pimped-out patio kitchen.

The reality: For what it costs (on average $12,000-$15,000), are you really gonna use it? Despite our penchant for eating alfresco, families spend most of their leisure time in front of some screen and almost no leisure time outdoors — no matter how much they spend on amenities, according to UCLA’s Life At Home study. The National Association of Home Builders’ 2013 What Home Buyers Really Want report adds that 35% of mid-range buyers don’t want an outdoor kitchen.

The bottom line: Instead, buy a tricked-out

gas grill, which will do just fine when you need to char something. If you’re dying for an outdoor upgrade, install exterior lighting (99% of buyers want that).

2. In-Ground Swimming PoolThe fantasy: Floating aimlessly, sipping umbrella drinks, staying cool

in the dog days of summer.

The reality: Pools are money pits that you’ll spend $17,000-$45,000-plus to install (concrete), and thousands more to insure, secure, and maintain. Plus, you won’t use them as much as you think; and, when you’re ready to sell, buyers will call your pool a maintenance pain.

The bottom line: If your idea of ‘making it’

Upgrades aren’t just about a return, but a comfortable

living style

with the Lowest ROI

HOME UPGRADE INDULGENCES


includes a backyard swimming pool, go for it. But, get real about:n How many days per year you’ll actually swim.n How much your energy bills will climb to heat the water ($760-$1,845 depending on location and temperature).n What you’ll pay to clean and chemically treat the pool ($20-$100/month in-season if you do it yourself; $75-$165/month for a pool service).n The fact that you’ll likely need to invest in a pool fence. In fact, some insurance carriers require it.

Less expensive option: an above- ground pool.Lower maintenance option: natural pools.If you do put in a pool, you can save money by installing a solar heater.

3. In-Ground SpaThe fantasy: Soothing those aching muscles and sipping chardonnay

with friends while being surrounded by warm water and bubbles.

The reality: In-ground spas are nearly as expensive as pools ($15,000-$20,000) and cost about $1 a day for electricity and chemicals. You’ll have to buy a cover ($50-$400) to keep children, pets, and leaves out. And, like in-ground pools, the ROI for in-ground spas depends solely on how much the next homeowner wants one.

The bottom line: Unless you have a chronic condition which requires hydrotherapy, you probably won’t use your spa as much as you imagine. A portable hot tub will give you the same benefits for as little as $1,000-$2,500, and you can take it with you when you move.

4. ElevatorThe fantasy: No more climbing stairs for you or your parents when

they move in.

The reality: Elevators top the list of features buyers don’t want in the NAHB What Buyers Really Want report. Elevators cost upwards of $25,000 to install, requiring sawing through floors, laying concrete, and crafting high-precision framing. And, at sales time, elevators can turn off some families, especially those with little kids who love to push buttons.

The bottom line: If you truly need help

climbing stairs, you can install a chair lift on a rail system ($1,000-$5,000). Best feature: It can be removed.

5. Backup Power GeneratorThe fantasy: The power in your area goes kaput, but not for you. You

were smart enough to install a backup power generator. While the neighbors eat cold hot dogs using a flashlight beam, you’re poaching salmon in your oven and pumping out Red Hot Chili Peppers’ tunes.

The reality: Power outages may seem to go on forever, but they don’t. Fifty dollars’ worth of batteries can power portable lights, radios, and TVs; a car adapter will charge your cell phones and iPods; and some dry ice will keep freezer food cold for at least a couple of days.

The bottom line: If you live in an area where power shortages are the rule, not the exception; spend the money for reliable backup power: Your still-frozen steaks, home office fax, and refrigerated medicine will thank you. But if the power rarely goes out, then installing a standby generator is overkill.

Nationwide, homeowners recouped 67.5% on their average $11,742 investment in a

backup generator – one of the lowest ROIs on the annual Cost vs. Value Report. If you need occasional emergency power, a gasoline-powered portable generator ($200-$650) will probably suffice.

6. New WindowsThe fantasy: Brand new windows that don’t stick, and

slashed energy bills.

The reality: A $10,000 vinyl window replacement project will recoup about 70% of your investment at resale, and if they’re Energy Star-qualified, they can save you around $300 in energy bills per year. So, plan to live in your house about another 10 years to recoup the cost of new windows.

The bottom line: We get it – new windows are sturdy, pretty, energy savers. But unless old window frames are thoroughly rotten, most windows can be repaired for a fraction of replacement costs. And if you spend about $1,000 to update insulation, caulking, and weather stripping, you’ll save 10%-20% on your energy bill.

No judgments! What’s your home upgrade indulgence?


BY JAN SOULTS WALKER | HOUSELOGIC

Just about every seller’s willing to throw a new coat of paint on the walls to attract buyers. But it’s got to be the right paint

color to capture buyers’ attention.Paint has remodeling power when you use

it to emphasize a room’s best features or play down the flaws.

Every home suffers a few negatives, but not every solution requires pricey structural changes. Paint is an often-overlooked, low-cost remodeler’s remedy for common complaints with interiors, offering the chameleon-like ability to lighten, warm, enlarge, erase, or attract attention.

“Paint is a powerful tool that can enhance the architectural character and intent of space,” says Minneapolis architect Petra Schwartze of TEA2 Architects. “As you choose your paint, think about what the experience in the room should be.”

MORE SCHWARTZE ADVICE:Always sample paint colors on a few walls. Don’t be shy about painting a few large swaths on walls and trim to consider the effect of natural and artificial lighting. Add samples to opposite sides of a room to judge the paint color from different angles.

Check the space with the samples in place and watch how the paint color changes at different

times of the day. Evaluate your

reaction to the proposed colors: Does the space feel cozy or is

the openness enhanced?

How to enlarge space with color

Painting walls white, cream, pastels, or cool colors (tinged with blue or green) creates the illusion of more space by reflecting light. Paint trim similar to walls (or use white on trim) to ensure a seamless

appearance that visually expands space.White or light colors lift

a ceiling; darker shades can have a similar effect if you select a high-gloss paint sheen, which reflects light and enhances space.

Employ a monochromatic scheme to amplify the dimensions of a room. Select furnishings in one color and paint walls and trim to match. Lack of contrast makes a room seem more spacious.

Make walls appear taller by extending wall color onto the ceiling. Create a 6- to 12-inch-wide border of wall color on the entire ceiling perimeter, or wherever walls meet the ceiling.

Vertical and horizontal stripes of alternating color can make a room grand. While vertical stripes enhance room height by drawing the eye upward, horizontal stripes lure your gaze around the perimeter, making walls seem further away. Use similar light colors for low-contrast stripes, and your room will look even larger.

CREATING INTIMACYWhen a space feels cavernous, draw walls inward and make it cozy with warm colors (red-tinged) because darker hues absorb light. Similarly, a dark or warm color overhead (in a flat finish) helps make rooms with high or vaulted ceilings less voluminous.

GIVE PEACE A CHANCEThe right paint choice can lend tranquility to a bathroom, master suite, or other quiet, personal space. A palette of soft, understated color or muted tones help you instill a calming atmosphere. Some good choices include pale lavenders, light grays or greens, and wispy blues.

DEFINE YOUR ASSETSCall out notable features in a room with paint. Dress crown mouldings and other trims in white to make them pop against walls with color. Make a fireplace or other feature a focal point by painting it a color that contrasts with walls.

“Using a higher sheen of paint on woodwork, such as baseboards and door or window casings,” says Schwartze, “creates a crisp edge and clear transition from the wall to the trim.”

HIDE FLAWSNot everything should stand out in a space. Using a low-contrast palette is a good way to hide unappealing elements or flaws. Conduit, radiators, and other components painted the same color as the wall will seem to disappear.

Selecting low-sheen or flat paint colors also helps hide flaws. Unless walls are smooth, avoid using high-gloss paint because it reflects light and calls attention to an uneven surface.

Pick a Palette

Improve your Home’s Value

with a NEW COAT OF PAINT

on the Wall

n 146 calls were received by our Ombudsman n 1 grievance/ethics

package mailed out to complaining party n 65 calls were

grievance/ethics complaints against agents that were resolved

n 64 calls requesting information on real estate procedures

n 3 calls requesting information on deposits n 6 anonymous calls

n 1 Tehachapi calln 6 cases referred to Association mediation

2 0 1 4 O M B U D S M A N R E P O R T ( M A Y - J U N E )

An often overlooked provision in the C.A.R. Purchase Agreement (RPA-CA) is the mediation clause. This

clause is a commitment to resolve matters before they escalate to arbitration or court action. If a party refuses to mediate, they can be denied attorney’s fees that they might otherwise be entitled to in subsequent litigation or arbitration.

Found in paragraph 26, the clause reads as follows: Buyer and seller agree to mediate any dispute or claim arising between them out of this Agreement, or any resulting transaction before resorting to arbitration or court action. Buyer and seller also agree to mediate any disputes or claims with Broker(s), who, in writing, agree to such mediation prior to, or within a reasonable time after, the dispute or claim is presented to the Broker.

Mediation is now used in most areas of legal conflict, with excellent results. This is because parties are directly engaged in the negotiation of the settlement, with the assistance of a third party neutral mediator who assists the parties in exploring various

alternatives which they might not have considered on their own. Mediation can be conducted at any time during the execution of the agreement.

LESS TIME AND MONEY IS SPENT Going to trial takes a long time. Add the cost and expense of motions and appeals and the disruption of one’s daily activities, attempting mediation is a sound way to resolve conflict. Further, a Judge may order the parties back to mediation prior to a court hearing.

Mediation can be scheduled promptly at the parties’ convenience and may also be conducted over the phone with an agreement satisfied via e-mail. This option is available for out of town parties who are not able to meet face-to-face.

PARTIES DETERMINE THE OUTCOME During mediation, no one imposes their decision on the situation. The mediator helps participants explore alternatives and provides an environment for negotiation but never tells the parties what the outcome will be. Solutions are often found to satisfy business interests and not just to the strict legal rights and obligations of the parties.

RELATIONSHIPS CAN BE PRESERVED Great value is placed on preserving business

and personal relationships. Our Association members work for the general public to instill confidence and trust. Relationships must be attended to especially where viewpoints diverge. The mediation process helps focus on goals and interests while bringing parties together in a manner that minimizes personal conflict. Parties enhance the likelihood of continuing their relationship, be it business or personal.

SUCCESSES ARE GOOD Because mediation is confidential between parties, the level of success can be good. The American Arbitration Association estimates that 85% of all mediations result in a settlement. There is also a high rate of compliance in that parties have voluntarily agreed to the settlement.

John F. Kennedy was quoted as saying: “Our task now is not to fix the blame for the past, but to fix the course for the future.” The advantages for mediation are numerous and should be considered first in resolving real estate conflicts. Inform agents and other professionals of this opportunity. The local Association of REALTORS® stands firmly behind this opportunity to serve its members by providing mediation services.

Ombudsman Tackles MediationMediation clause often resolves matters beforehand avoiding arbitration or court

Joe Newton


BY BILL MCBRIDE | CALCULATED RISK BLOG

There have been quite a few hand-wringing articles lately discussing the problems with housing. Most articles point to some of these suspects:1) Existing home sales were down 7.5% year-over-year in March.2) New home sales were down 13% year-over-year in March and down slightly Q1 over Q1.3) Housing starts were down 5.9% year-over-year in March, and down 2% Q1 compared to Q1 2013.4) The 4-week average of the Mortgage Bankers Association (MBA) mortgage purchase index is down 19% compared to the same week last year.5) Mortgage credit is still tight.6) Mortgage rates are up significantly from last year.7) The homeownership rate is still falling.8) Younger people prefer renting.

Oh my, the sky is falling!Well, maybe not.The first mistake these writers make is they

are asking the wrong question. Of course housing is lagging [in] the recovery because of the residual effects of the housing bust and financial crisis (this lag was predicted on this blog and elsewhere for years - it should not be a surprise).

The correct question is: What’s right with housing? And there is plenty.

1) Existing home sales were down 7.5% year-over-year in March. Wait, isn’t that bad news? Nope - not if the decline is related to fewer distressed sales - and it is. (fewer foreclosures and short sales).2) Mortgage delinquencies are down sharply. See: Fannie Mae and Freddie Mac: Mortgage Serious Delinquency rate declined in March and Mortgage Monitor: Mortgage delinquency rate in March lowest since October 2007, “Only One in 10 American Borrowers Underwater”3) Mortgage credit is tight. Hey, isn’t that bad news? Nope. There is only one way to go ...4) New home sales are up significantly from the bottom, but are still historically very low.There really is no where to go but up. A growing population will require more new homes. (I’ll post again on household formation in the future). The graph for housing starts looks similar.5) The percent of borrowers with negative equity is declining sharply. See: CoreLogic: 4 Million Residential Properties Returned to Positive Equity in 2013 and Zillow: Negative Equity declines further in Q4 20136) The impact from rising mortgage rates is mostly behind us. Economists at Goldman Sachs have found “the effect of monetary policy shocks on [building] permits persists for 3-4 quarters”. Rates

increased from around 3.5% in May 2013 to 4.4% in July 2013. Since then rates have moved sideways or down a little - and the “3-4 quarters” is almost over.7) Existing home inventory is increasing, and house price increases are slowing. Sometimes rising inventory is a sign of trouble (I was pointing to this in 2005), but now inventory is so low that it is a positive that inventory is increasing. This will also slow house price increases (I think that will be a positive for housing too - a more normal market).8) The MBA purchase index is skewed by large lenders. Over the last few years, small lenders (many not included in the MBA survey) have focused on purchase applications (they market through real estate channels and charge lower fees than the large lenders). Other data suggests mortgage applications are mostly flat year-over-year. UPDATE: The MBA told me they have expanded coverage of the index to include many smaller purchase focused lenders. The MBA doesn’t believe their data is “skewed” by the large lenders.9) Investor buying is declining.

Housing is a slow moving market - and the recovery will not be smooth or fast with all the residual problems. But overall housing is clearly improving and the outlook remains

positive for the next few years.SOURCE: www.calculatedriskblog.com/2014/05/

whats-right-with-housing.html

What’s Right with Housing?Overall housing is improving and the outlook remains positive


Leadership skills exemplified in Marines can be implemented into a REALTOR’S® everyday life BY SCOTT LALLI, Representative on the Leadership Academy Advisory Board | NAR LAB, Leadership Insights

A few weeks ago I was having a conversation with an agent about the time he spent in the United States Marine Corps. I was impressed and intrigued about the level of discipline and expertise it takes to be a Marine. I also could feel the deep sense of loyalty, pride and appreciation he had for his fellow Marines and the Corps in general.

It made me think about some of the principles that cause Marines to feel so deeply about being a part of this elite organization, so I did a little research. I found that there are 11 principles that Marine officers are taught to help them become great leaders and soldiers. As I read these principles I thought that these leadership skills not only apply to the Marines, but they can be implemented into our everyday life to be great REALTORS® and great people. Let me share with you a few examples.

BE TECHNICALLY AND TACTICALLY PROFICIENTMarine officers need to be highly competent in their Military Occupational Specialty to be great leaders to their units. As REALTORS®, we need to be doing the same in our Professional Occupational Specialty. Being out in front of political issues that affect property rights and our profession, understanding how to utilize current technology to best serve our clients and understanding how our associations can best serve our membership is part of being a REALTOR® leader.

KNOW YOURSELF AND SEEK IMPROVEMENTMarines don’t just go through basic training and call it a day. They continue to train, learn and improve themselves. NAR provides us with many resources to improve ourselves, one of which is the NAR Leadership Academy. One of Stephen R. Covey’s 7 habits of highly effective people includes a habit he refers to as “sharpening the saw”. Simply stated, it means that we need to take the time to develop and hone skills that help us be at the top of our personal and professional game.

My experience with the NAR Leadership Academy was a great way for me to get to know and improve on who I am.

SET THE EXAMPLEMarine officers not only know what to do, but they do it. Perhaps more than any words we speak, taking action and practicing what we preach will be what people remember about us. Many REALTORS® are quick to speak about “what needs to be done”, but few stand up and answer the bell. What kind of REALTOR®are you? A talker or a doer?

Many of the principles espoused by the Marines, I see at work within our REALTOR® Associations. Local, State and National Associations are full of people who want to be technically and tactically proficient, seek improvement and set the example. When you participate with great people you establish strong bonds rooted in a common cause. Much like my friend who feels so strongly about his Marine family, I feel the same way about the REALTOR® family. If you think you have what it takes to lead out in our REALTOR® associations, be sure to apply for the NAR Leadership Academy. We are looking for a few good men and women!

Leador not to Lead

To


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Layar - Augmented Reality (iOS) (FREE)Print comes to life with Layar! Scan magazines, newspapers, posters, products and other items that have been enhanced with Layar. Then…watch as extra digital content appears, allowing for interaction with print in a whole new way! See magazines come alive with videos right on the page! Purchase items directly off the page with mobile shopping links, connect with links to web content, and share items on social media.

LoopNet Commercial Real Estate Search (iOS) (FREE)Find the perfect investment property or lease space directly from an iPhone or iPad. With just a tap, see a map. Then easily adjust filters, view photos of nearby sale and lease listings, and contact the listing broker. Receive updates on properties saved and send alerts when listings come up which match the search criteria.

MLS Source - Northern California Real Estate & Property Search (iOS) (FREE)MLS Source iPhone/iPad app puts MLS in the palm of every member’s hand. This app was designed to be used by real estate professionals as well as homebuyers and sellers in Northern California. Serving the counties of Monterey, San Benito, San Mateo, Santa Clara, and Santa Cruz, as well as San Joaquin and Stanislaus. MLS Source provides the most accurate, timely and comprehensive real estate information in Northern California.

My C.A.R. (iOS) (Requires Membership)My C.A.R. is intended for use by the members of the CALIFORNIA ASSOCIATION OF REALTORS® and requires an access code. It features market data from over 40 counties, educational information, quick access to Market Matters, weekly mortgage rates, real estate news and much more.

NAR Action Center (iOS) (Free)The REALTOR® Action Center is a source for REALTOR® political news and engagement. This app, designed specifically with state and local association staff and political leadership in mind, features access to

top political stories from the REALTOR® Action Center and the Washington Report, current calls for action, and online dynamic reports to help track your state and local REALTOR® Party engagement and Call for Action participation.

NAR Express (iOS) (Free)Designed with REALTORS® in mind, this app features easy access to hot topics, popular headlines, calls for action, special offers for NAR members, sales and marketing resources, and more.

Open Home Pro (iOS) ($14.99)With Open Home Pro, you can run your open house on your iPad in addition to the following: Manage all walk-ins at weekly open houses or broker opens; automatically follow up with leads using new contact methods that get opened and are read more than 2x the industry average; create beautiful listing pages for all of your properties; buyers can leave feedback on or contact you with one click; export any collected data to Excel or a CRM (Customer Related Management) tool like Top Producer, or directly pass the leads to iCloud; and, create your own custom questions.

Open House Manager (iOS) ($4.99)Open House Manager is designed to quickly capture info from potential buyers and distribute it to your iDevices and the Cloud! No more sign-in sheets! Visitors sign in on your iPad. Sync buyers’ contact information to your iPad, iPhone and Mac with iCloud. Generate follow-up emails to groups of buyers; send homeowner reports to your seller; create your own list of buyers and email them; also, create your own survey questions. Get all the information you need!

realtor.com® real estate - homes for sale and rent (iOS) (FREE)

The realtor.com® app now has the ability to find homes based on school and district assignment boundaries! For real estate agents: connect and search with your clients!

Stratus MLS Mobile (iOS) (FREE)With this app, you can perform searches for any listing class or status using easy, pre-defined searches, perform searches of public records data (where available), or find listings near a current location using GPS (where available). You can access large, color photo galleries with detailed listing views, search by geographic area or by fields applicable to a property type, or find open houses near your location. You can access your contacts and send listings via email.

TouchCMA (iOS) (Free)TouchCMA is a fully interactive presentation and market analysis tool for real estate professionals. Create beautiful and functional buyer, seller and marketing presentations to foster better conversations and help you win more business.

TourNarrator (iOS) ($1.99)Did the stove need to be replaced at Elm Road? Was the closet perfect at the Orange Trail house? Could the office on Valencia Drive convert to a nursery? These are the notes that often get scribbled on MLS printouts, then easily lost or later forgotten when it’s time to make a decision on which home to write an offer. TourNarrator compiles all your notes and photos into one beautiful sales presentation. The photos and feedback will be combined into an image-rich PDF with a dedicated URL you can link to from any website. You can also use the PDF to print flyers, publish to Facebook, post to Twitter or other social networks, and share with friends. And of course, each PDF tour features your contact information -- marketing you and your business!

zipForm® Mobile Web Edition (iOS) (12.95/year)Immediately connect to important information contained in your zipForm® 6

Professional (online) account. The TouchSign feature allows users to sign transactions on the touchscreen

tablet with their finger or capacitive stylus. Managing transactions “on the go”

has never been faster or easier!

You can find any one of these apps at www.car.org/tools/technology/apps

REALTOR APPS, Continued from page 16


Friday, July 18, 8am BY HOWDY MILLER, TICOR TITLE

Bakersfield Association of REALTORS® Commercial Investment Committee is very happy and proud to announce, July18, 2014 presenters. ATTENTION K-Mart Shoppers! Which includes Sears! You’re done! Finished! Kaput! So long Valley Plaza! East Hills Mall, you’re already gone! Northwest Promenade start packing up!

In the “old” days retail was driven by “roof-tops”, shopping centers were situated close to large tracts of homes, people from those homes underwrote and supported those stores and said stores flourished. Well, it’s a new age, retail is still driven by tops all right, car tops. How many cars pass thru the intersection of I-5 and highway 99 at Tejon Ranch? Many! Mucho! A lot! And now they will be stopping

not to fill up with gas, have a cheeseburger at In and Out, get their semi washed, let their dogs relieve themselves and themselves, but to shop! That’s correct, SHOP!

The Tejon Outlet Center will be opening in August of 2014, that’s tomorrow! And of the many shops opening at the center, will be the Nordstrom Rack! That alone is enough to fill the rather substantial parking lot!

Join us Friday, July 18th at the early morning hour of 8am, in the Bahamas or on Bahamas Drive Association office. Be treated to some type of bread product, coffee, etc.

Our Speakers, two of Tejon’s finest, Mr. Joe Drew. Big mucky muck at Tejon Ranch, past Kern County C.A.O., past helicopter pilot (Vietnam) and more importantly all around good guy!

And, good guy #2, Mr. Barry Zoller.

Director of public retaliations (just checking) for Tejon Ranch, past local T.V. personality and who can name ALL the shops planning to join the Tejon Outlet Center!Please R.S.V.P. to Claudia at 635-2311

Sponsored by: Ashley Weaver

Coming August 15, 8amSpeaker: Jay PeetAssistant Vice President, IPX 1031

Topic: 1031 Exchange Service

Sponsored by: Brandi Agnetti, ServiceMaster

The Outlets at Tejon Ranch, a proposed shopping center south of Bakersfield, is seen in a rendering provided by the Tejon Ranch Co.

Outlets open August 7, 2014

Join us on Friday, July 18, 8am Tejon Ranch Outlets

GUEST SPEAKERS

Joseph E. Drew Senior Vice President, Real Estate

Barry Zoeller Vice President, Corporate Communications and Marketing with Tejon Ranch


Our Local

MarketHousing

* Figures from single family homes only. Statistics were run on July 1, 2014

2014 2013 2014 2013 2014 2013 2014 2013 2014 201310 98 116 $12,016,685 $15,249,768 $128,244 $137,728 45 50 98.42 98.69

21 71 74 $5,757,582 $5,973,555 $87,261 $86,402 57 54 97.03 95.15

22 111 101 $16,159,895 $13,118,500 $150,041 $136,154 39 39 98.64 99.02

23 10 12 $1,830,600 $3,536,500 $183,060 $294,708 87 43 99.17 96.19

31 123 119 $16,356,723 $13,026,607 $133,457 $109,467 43 35 98.05 98.54

32 254 277 $41,159,326 $37,253,174 $170,566 $136,673 49 51 97.42 99.14

33 88 105 $16,558,892 $17,508,081 $195,370 $173,424 45 35 99.80 99.77

34 26 55 $6,897,312 $15,497,948 $272,492 $285,388 53 51 98.35 97.03

41 67 59 $7,541,791 $5,580,836 $115,297 $95,359 30 50 99.14 101.96

42 54 71 $7,331,206 $9,203,265 $138,531 $132,914 55 38 97.85 100.77

43 8 5 $1,265,000 $852,625 $166,429 $170,525 55 35 97.61 92.29

51 249 344 $34,612,124 $41,121,620 $144,697 $124,856 42 43 98.86 100.55

52 646 630 $122,448,170 $105,951,457 $200,920 $176,023 44 39 98.73 100.19

53 338 378 $103,801,267 $107,126,683 $308,908 $284,404 41 41 98.28 99.50

54 6 3 $1,874,993 $634,050 $312,499 $211,350 29 118 100.16 96.35

61 98 104 $24,666,990 $23,164,189 $251,704 $223,089 37 44 98.25 100.36

62 465 477 $136,085,577 $120,905,220 $292,657 $253,799 39 39 98.92 100.45

63 160 177 $52,286,599 $58,435,803 $332,192 $330,146 51 44 98.84 99.93

64 6 7 $1,793,221 $1,921,000 $327,044 $274,429 30 49 97.98 100.67

80 49 42 $10,310,790 $7,759,400 $219,161 $187,424 84 77 97.84 96.58

81 9 7 $1,872,000 $1,206,000 $229,500 $171,000 235 224 94.23 92.61

82 12 18 $809,105 $1,544,449 $85,013 $92,341 72 102 93.23 92.29

83 18 23 $2,909,800 $1,925,234 $169,706 $88,487 56 55 96.01 94.81

91 32 39 $3,525,860 $4,049,364 $110,183 $103,830 52 53 99.19 102.12

92 5 3 $1,734,500 $885,000 $346,900 $295,000 71 43 97.18 100.81

93 2 10 $153,500 $1,267,396 $76,750 $126,740 65 46 89.09 96.73

94 8 7 $1,311,507 $906,500 $228,719 $145,750 39 52 98.40 96.44

95 128 109 $20,914,515 $15,193,550 $165,607 $139,390 56 32 98.18 98.65

96 71 76 $6,802,850 $6,668,789 $97,583 $90,785 60 61 96.48 97.98

98 89 117 $12,386,050 $17,244,220 $139,169 $146,028 58 44 97.17 97.05

99 72 77 $15,544,722 $18,077,170 $227,923 $239,139 77 71 95.65 97.34

AreaDollar Value Average Sold Price* % of List Price*# Sold DOM*

OVERVIEW OF PROPERTIES


0

200

400

600

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1,400

ACTIVE CONTINGENT PENDING SOLD

2014

2013

0

200

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2014

2013

MARCH 2014

March 2014 2013% Year over Year

ChangeApril 2014 2013

% Year over Year Change

Active 1,307 778 68.0% Active 1,232 761 61.9%Contingent 395 622 -36.5% Contingent 421 629 -33.1%Pending 1,017 1,094 -7.0% Pending 1,116 1,109 0.6%Sold 564 625 -9.8% Sold 625 629 -0.6%Total Volume Closed $114,978,271 $112,205,422 2.5% Total Volume Closed $122,556,147 $118,285,137 3.6%Median Sales Price * $190,000 $166,000 14.5% Median Sales Price * $185,000 $172,000 7.6%Average DOM * 46 45 2.2% Average DOM * 51 48 6.3%




Sold 483 526 -8.2% Sold 532 534 -0.4%

Total Volume Closed $102,387,831 $97,551,061 5.0% Total Volume Closed $109,460,742 $104,059,691 5.2%

Median Sales Price * $200,000 $175,000 14.3% Median Sales Price * $198,000 $180,000 10.0%

Average DOM * 44 45 -2.2% Average DOM * 46 45 2.2%

* Single Family Only

All Areas

2014 Compared to 2013 by MLS AreaActive, Pending and Sold - All Areas

MAY 2014

May 2014 2013% Year over Year

ChangeJune 2014 2013


Active 1,402 819 71.2% Active #DIV/0!Contingent 345 603 -42.8% Contingent #DIV/0!Pending 1,146 1,193 -3.9% Pending #DIV/0!Sold 669 651 2.8% Sold #DIV/0!Total Volume Closed $143,164,423 $124,066,702 15.4% Total Volume Closed #DIV/0!Median Sales Price * $200,000 $179,000 11.7% Median Sales Price * #DIV/0!Average DOM * 44 42 4.8% Average DOM * #DIV/0!

May 2014 2013% Year over Year

ChangeJune 2014 2013


Sold 576 564 2.1% Sold #DIV/0!

Total Volume Closed $126,737,568 $111,248,350 13.9% Total Volume Closed #DIV/0!

Median Sales Price * $209,975 $187,500 12.0% Median Sales Price * #DIV/0!

Average DOM * 41 39 5.1% Average DOM * #DIV/0!


Bakersfield








Sold 483 526 -8.2% Sold 532 534 -0.4%





0

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2013

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Statistics were run on July 1, 2014

APRIL 2014All Areas








Sold 483 526 -8.2% Sold 532 534 -0.4%





Bakersfield








Sold 483 526 -8.2% Sold 532 534 -0.4%





0

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2014

2013

Clarity Home Loans Team, the 2014 YPN Softball Champions

Theresa Olsonn & Debbie Banducci

Face painting for the kids

THANK YOU YPN SOFTBALL SPONSORS AND TEAMS! SPONSORS: Karpe Mortgage and iMortgageTEAMS: Keller Williams Realty, RE/MAX Golden Empire, Coldwell Banker Preferred, REALTORS®, iMortgage, and Miramar International, Clarity Home Loans, Capitol Real Estate and Watson RealtyNET PROCEEDS to the H.E.A.R.T.S. Connection of Kern County

FRIENDS AND FAMILYeven a little Team Rivalry

A FUN DAY in the park with

Lisa Belt, Jenny Cameron and Suzi Beaty

28 BAKERSFIELD REALTOR® MAGAZINE28 BAKERSFIELD REALTOR® MAGAZINE

It was a day of fun and camaraderie

Clarity Home Loans Team, the 2014 YPN Softball Champions

Team members from iMortgage

Team members from Karpe Real Estate Center

Team members from Capitol Real Estate

Team members from Miramar International

Derek Sprague, Jenny Cameron & Scott Knoeb

Aimee Jones & Ashley Weaver

You can’t miss by advertising with the Bakersfield Association of REALTORS® Hit Your Target Market

Call now 661-635-2307

START MARKETING AND PROMOTING YOUR COMPANY TODAY with the Bakersfield Association of REALTORS®. The Association has over 1,600 REALTOR® and Affiliate members.

We offer many ways for you to actively communicate your company’s brand and marketing message directly to our members. Every week we host a variety of activities, classes, and events. Reach your target market in smart, effective and affordable ways. Please consider one of our many opportunities.

SPONSORSHIP OPPORTUNITIES:PRICES RANGE PER ACTIVITYn Newslettern Educational Classesn Networking Activitiesn Community Outreachn Special Events

FOR ADVERTISING INFORMATION OR AD SIZES, PLEASE CONTACT: Carol Duran at 635-2307. Communications Design and Development.

Member Advertising Rates

Feature Ad (2 week period) $200

Home Page(2 week period) $150

PUBLIC WEBSITE

REALTOR® WEBSITE

Member Advertising Rates

Home Page Ad $125/mo

Entire Site Ad $85/mo

CONNECTIONS NEWSLETTER

Eblast: Member Newsletter

1 time run $60/blast

4x consec. run $200/mo

MEMBER RATES

Advertising Rates

Feature Ad (2 week period) $400

Home Page(2 week period) $300

PUBLIC WEBSITE

REALTOR® WEBSITE

Advertising Rates

Home Page Ad $250/mo

Entire Site Ad $170/mo

CONNECTIONS NEWSLETTER

Eblast Newsletter

1 time run $120/blast

4x consec. run $400/mo

NON-MEMBER RATES


trade groups (CAI, the National Association of REALTORS®, the Mortgage Bankers Association and others), FHA is preparing regulations for publication as early as June which would, if adopted, restrict FHA financing in communities with transfer fees.

FHA officials decline to discuss the regulation because it is still being drafted, but trade groups that have met with the agency say it will not track Fannie’s and Freddie’s clear guidelines, which allow community-benefit fees. The groups fear that most existing HOA transfer levies will become obstacles when buyers or sellers seek to use FHA loans. Ditto when unit owners who are seniors apply for an FHA-insured reverse mortgage, the dominant financing tool of its type in the field.

In an April 23rd letter to FHA Commissioner Carol Galante, six trade groups warned that any new regulation which

discriminates against HOA fees “will greatly disadvantage the millions of homeowners living in community associations, making it much harder for them to sell their homes.” The groups asked Galante to instead “mirror” Fannie’s and Freddie’s guidelines “and prohibit only those fees that don’t benefit the homeowner and association where they live.”

Dawn Bauman, Senior Vice President for Government and Public Affairs at CAI, told me last week that FHA’s forthcoming regulation would have especially harsh impacts on HOAs in states that were hardest hit during the housing bust and recession: California, Arizona and Florida, among others.

Many of these have struggled with financial problems caused by unit-owner defaults and have had to postpone needed capital improvements. Some depend on transfer fees for essential services to the community. If under FHA’s rule, these HOAs

will have to stop collecting transfer fees or take other steps that reduce the flow of funds. “This could compromise the stability of these communities,” Bauman said.

At the very least, she said, FHA’s creation of a two-standard system with divergent requirements for mortgage approvals nationwide — Fannie’s and Freddie’s plus its own — would introduce needless confusion to the marketplace and be counterproductive for homeownership.

What’s the remedy if FHA pushes ahead with what appears to be its plans and issues regulations which will harm HOAs? To fix the problem, “we’ll have to go to Congress,” Bauman said.

Ken Harney writes an award-winning, nationally syndicated column, “The Nation’s Housing,” and is the author of two books on real estate and mortgage finance.SOURCE: www.inman.com/2014/05/06/upcoming-fha-rule-could-squeeze-home-buyers-and-sellers/

FHA RULE Continued from page 13


BY ERICA CHRISTOFFER | NAR Leigh Brown, broker-owner of RE/MAX Executive Realty – Leigh Brown & Associates, got down to the business

of selling houses during her presentation on leads and listings at the Emerging Business Issues & Technology Forum during the REALTOR® Party Conference & Trade Expo in Washington, D.C., last Thursday. She offered three tips for

capturing and converting online seller leads that you can start implementing in your business plan immediately.

The Nitty-Gritty on Converting Seller Leads

1. GET YOUR WEBSITE A “SQUEEZE PAGE”

This is a simple page embedded on your site that allows would-be

sellers to opt in for more information in exchange for their contact info. Brown uses primesellerleads.com as her squeeze page host for $59 per month. The page, which asks visitors if they’re selling their home or condo, changes dynamically based on the location of the viewer’s IP address. Brown’s customers then receive a Zestimate on the backend. “I don’t care if you like or don’t like Zillow; that’s irrelevant,” Brown says. “It does give me the best script in the world: ‘I know that the information you received is automated. Your home will have a unique value based on its customized upgrades and location. For a custom market analysis, please contact me.”

2. SET UP A GEO-TARGETED FACEBOOK AD CAMPAIGNYou have a Facebook business page, right? Well, it’s time to take

the next step. Go to Facebook.com/ads and set up your custom ad parameters. You can target specific ZIP codes — and be sure to choose an ad photo with a house that reflects that neighborhood. You can also designate education level and age range. If you want to target move-up sellers/buyers, set your ad parameters for college graduates age 35-45. Brown’s text is simple: “Find out what your [city name] area home is worth. Free home valuation in under 60 seconds.” From there, she handles the lead as she does those from her squeeze page. “My ROI is quite high on this,” she says. Brown spends $10 per ad per day.

3. CALL FIRST

Once that seller lead comes in, pick up the phone to introduce yourself, Brown says. Then

she’ll send a text. Her third point of contact is a BombBomb video, no more than 10 seconds long, sent via email. In the video, she mentions the lead’s inquiry and offers up her expertise on the neighborhood and property taxes. Brown also sends an auto-response BombBomb to leads that come in after 4:30 p.m. weekdays and on the weekends with a stock video of herself saying she’ll get back to them as soon as she can.


We are pleased to announce our

2015 OFFICERS AND DIRECTORS

SHERI ANTHES 2015 President

ATHENA COLLUP 2015 Secretary-Treasurer

THERESA OLSON 2014 President

MIDGE JIMERSON 2015 Vice President

BILL REDMOND 2015 President Elect

BRUCE BARNHARD 2015 - 2017

Director

DAVID GAY 2013 - 2015

Director

JACOB MARQUEZ 2013 - 2015

Director

DEREK SPRAGUE 2014 - 2016

Director

PAM EPPS2014 - 2016

Director

KEVIN PALLA 2015 - 2017

Director

BRIAN TUTTLE2015 - 2017

Director

WAYLAND LOUIE 2015 - 2017

Director

Scott Tobias | REAAC Chair

On May 21st, the Real Estate Anti-Fraud Advisory Coalition (REAAC) held its first Anti-Fraud Forum at the Bakersfield Association of

REALTORS®. The forum was a success! With over 75 attendees, REAAC was able to engage members on real estate fraud issues. Speakers included District Attorney Lisa Green, Lief Sirman of the Federal Bureau of Investigation, Gordon Isen of the Office of the District Attorney, Brenda Smith of the California Bureau of Real Estate, and John Shore of the Community Housing Council. Those in attendance had the opportunity to learn about the ongoing and ever-changing types of real estate scams and how to protect themselves and their clients.

Here are some important links on fraud tips, info, news and reporting:

n www.stopfraud.gov - Federal Fraud Task Force – News, Info, Report Fraud, & more

n www.preventloanscams.org - Victims can enter info and initiate leads

n www.consumerfinance.gov - Loan Scams Info, Tips, Reporting & more

n www.ftc.gov - Phone & Various Scams Info, Tips and Reportingn www.ftc.gov/idtheft - Identity Theft Info, Prevention, Response & Reporting

n www.ic3.gov - Nat’l White Collar Crime Center & FBI - Internet-Related Scam/Crime and Mass Marketing Fraud

n www.oig.hhs.gov - Medical Fraud, Health & Human Services - OIG

n www.fdicoig.gov - Fraud with FDIC Insured Banks

n www.mpaa.org - Counterfeit DVDs/CDs/ Videos – Motion Picture Assn. of America

n www.irs.gov - Tax Fraud – IRS

n oig.ssa.gov - Social Security-Related Fraud

n www.fcc.gov - Federal Communications Commission; TV, Radio, Cable, Satellite, Cell Phone Cloning

n www.usda.gov/oig - USDA-OIG - Food Stamp Fraud and Agriculture-Related Fraud

n www.oag.ca.gov - CA State Dept. of Justice - CA Scam & Crime Info and Reporting

n US Secret Service - Counterfeit Money, ATM, Debit/Credit Card Fraud, Counterfeit Money Orders

n US Postal Inspection Services - Fraud or Crime Relating to Post Office/Mail

n US Dept. of Education - OIG - Fraud or Corruption Relating to Colleges

n California State Bar - Fraudulent Attorneys

n CA DMV Investigations - California Department of Motor Vehicles Fraud

REAAC Forum Speakers Share with MembersValuable information on how to protect yourself from real estate scams


2014 SCHOLARSHIP WINNERS

THE BAKERSFIELD ASSOCIATION OF REALTORS® is an advocate of education not only for our members, but for their children and the youth of our community. To encourage and support the educational endeavors of students in Kern County, the Association formed the Scholarship Trust Fund. The following 2014 Award Recipients are:

Gabe Ablin, son of Robin Ablin, is currently attending the University of Portland. He plans to pursue an Environmental Sciences degree and has his sights on becoming an environmental designer. He is a strong proponent of protecting the environment and hopes to use his knowledge of real estate to better plan and meet increasing housing demands without negatively impacting the environment.

Alysa Frias, granddaughter of Debi Roberson, recently graduated from Liberty High School and will be attending California State University, Fresno. She will major in Animal Science, with an emphasis on Pre-Veterinary Medicine. Upon completing her schooling, Alysa intends to open up her own animal clinic here in Bakersfield.

Sara Kathleen Hood, daughter of Cory

Hood, is attending Grand Canyon University and is seeking to obtain a bachelor’s degree in Psychology. She also plans to pursue her master’s degree in Social Work. Sara’s dreams are to become a Social Worker and to one day start a mentorship program for children who need extra guidance in realizing their full potential.

Kailee Moore, daughter of Jody Moore, will be attending University of Nebraska and will pursue a bachelor’s degree in Business Administration. Kailee envisions herself attending a top culinary school. She hopes to buy – not lease – her business location and with the right educational skills, she will be ready to build her bakery empire.

Blayne Ontiveros will be receiving his AA degree in Liberal Arts from Bakersfield College. He has enrolled at Cal State Bakersfield and will be starting the Fall 2014 semester. Blayne is pursuing a career in Criminal Justice and hopes to join the Sheriff’s Office, while working part-time on weekends in Real Estate.

Michelle Packer, daughter of Marilyn Packer, will be attending Vanderbilt University in Tennessee. She pursues a

degree in Urban Planning and Development with a minor in Business Economics. Ultimately, Michelle sees herself in a career where she can improve the design quality of constructed environments while protecting and managing the resources of our natural environments.

Alexandria Rodriguez, niece to Jacob Marquez, graduated from Garces Memorial High School and will be attending UC Davis. She will be busy taking classes to accomplish a major in Mechanical Engineering. Alexandria hopes to create a future filled with new and efficient ways of oil drilling; all while incorporating environmental and safety factors.

Chelsea Sanford, daughter of Terri Mays, is currently attending Baylor University in Texas. She is pursuing a Major in Journalism/Public Relations with a concentration in Business. Her aspiration is to ultimately work in internal, corporate public relations as a VP in communications/marketing. Chelsea simply enjoys people and is excited to see where a public relations career might lead.

Association supports our youth in higher education

Left to right: Theresa Olson, President, Blayne Ontiveros, Alysa Frias, Alexandria Rodriguez, Michelle Packer, Gabe Ablin, Kailee Moore and Linda Jay, CEO. Not shown are Sara Kathleen Hood and Chelsea Sanford.

C.A.R. 2014 Survey of California Home Buyers Findings

More home buyers turning to social media in home-buying process, REALTOR® Reflecting the proliferating use of social media in today’s society, home buyers are turning to social media in the home-buying process more than ever, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) “2014 Survey of California Home Buyers.”

More than three-fourths of home buyers used social media in their home search, which is up from 52% who used it in 2011. Buyers said they primarily used social media to obtain buying tips and suggestions from friends (44%), neighborhood information (44%), and to view their agents’ Facebook pages (42%).

Mobile technology and the Internet continued to be important tools in the home-buying process, with 91% saying they used a mobile device to access the Internet during the course of their home purchase. Buyers used their mobile devices to look for comparable home prices (78%), search for homes (45%), and take photos of neighborhoods, homes, and amenities (43%). Conversely, with the increased use of social media, fewer buyers “Googled” their agent (50% in 2014, down from 68% in 2013), turning to agents’ Facebook pages instead.

Equity home sales near 90% of all home sales, while pending home sales decline in MayHigher home values continued to fuel more equity home sales, which have made up more than 80% of all home sales for the past 11 consecutive months. Meanwhile, pending home sales fell in May as investors pulled out of the market due to higher home prices.

NAR Survey Shows REALTORS® Continue to Invest in Mobile TechnologiesJANE DOLLINGER | NAR

Over the years, REALTORS® have spent countless time and millions of dollars advancing real estate technologies and keeping up with the latest high-tech tools. The 2013-2014 REALTOR® Technology Survey, conducted by NAR’s Center for REALTOR® Technology, found that REALTORS® continued to invest in new technology for their businesses in 2013 and spent more than they did in previous years.

According to the survey, brokers spent a median of $1,410 on technology for their real estate business, up from $1,122 in 2012, while agents spent a median of $848, up slightly from $822 in 2012. Technology that allows work to be done while on the move appears to generate the most interest among REALTORS®, who are highly-mobile professionals. Smartphones and tablets ─ iPads, Androids, Surfaces or Kindles ─ are the tools REALTORS® are most intent on purchasing; 29% of participants said they plan on procuring one of these tools in 2014.

“Technology has transformed the way REALTORS® do business, but in real estate, being high tech can never come at the expense of being highly accessible,” said Mark Lesswing, NAR Senior Vice President and Chief Technology Officer. “Advances in

Smartphones and social media have made it easier for REALTORS® to stay in touch with their customers, but maintaining a strong, personal relationship with clients is still at the heart of the business.”

According to the survey, the vast majority of REALTORS® (94%) use mobile devices to communicate with clients. In fact, REALTORS® spend a median 44% of their time corresponding with or doing work for their clients via their mobile devices. Use of iPhones continues to increase among REALTORS®; 52% of respondents now use iPhones. Thirty-six percent (36%) of respondents use Androids and 3% use Blackberry devices.

“REALTORS® tend to find the most value in technologies that allow them to conduct business quickly, conveniently and on the go,” said Lesswing. “Embracing new technologies and online resources is a vital part of how REALTORS® identify, market and sell homes and guarantees that they are meeting their clients’ needs.”

The use of social media to generate leads and stay in contact with clients has also increased since 2012 (91% of all REALTORS® use social media). Seventy percent (70%) of those surveyed said that they use social media to build relationships and network, while 64% said they use the platforms for marketing and generating leads.

The most frequently used social platforms were Facebook (77% of respondents said they

I N A N U T S H E L L STORIES AT-A-GLANCE FOR REALTORS®

CALIFORNIA REALTOR® EXPO 2014 at the Anaheim Convention Center

Three incredible speakers lined up to enrich, engage, and inspire you every day at CALIFORNIA REALTOR® EXPO 2014.

n TUESDAY, OCTOBER 7, Terri Sjodin. How to add a persuasive edge to your presentations. Sjodin is one of America’s most sought-after female speakers and best-selling author’s. n WEDNESDAY, OCTOBER 8, Captain Chesley B. “Sully” Sullenberger. His take on leadership after surviving and saving 155 lives during “Miracle on the Hudson.”n THURSDAY, OCTOBER 9, Leslie Appleton-Young. 2015 Housing Forecast.With FREE sessions all THREE days, why not attend the EXPO? All you have to do is register. Pick from a wide variety of free track sessions or attendee’s choice sessions

It’s the state’s largest real estate trade show, taking place October 7-9Admission to the EXPO Exhibit Hall is FREE for members of the CALIFORNIA

ASSOCIATION OF REALTORS®, but you must register to receive a badge.


use the site regularly), followed by LinkedIn, which is used by 75%.

The 2013-2014 REALTOR® Technology Survey was based on data collected in January 2014. The survey was e-mailed to NAR members, including REALTOR® brokers, managers and agents, and generated 1,280 usable responses. The survey is available for free at crt.blogs.realtor.org.

In 2001, NAR established the Center for REALTOR® Technology to provide technology leadership, guidance and assistance to REALTOR® associations and members. Through its mission of evaluating, implementing and applying emerging technologies, CRT makes available informed industry insight, research and open-source applications.

“Coming Soon” Properties Can Create Consumer ConfusionSARA WISKERCHEN | NAR

The National Association of REALTORS® published information for NAR members regarding advertising properties as “coming soon.”

Some “coming soon” advertisements involve unlisted properties which may or will be listed with a broker in the near future, while others relate to properties that are subject to listing agreements where property is available to potential purchasers only through the listing broker and not available, temporarily or indefinitely, for showing or purchase through other MLS participants. In either case, “coming soon” properties are commonly withheld from the MLS.

“The first important step in advising a seller-client on whether to advertise a property as ‘coming soon’ is to identify the client’s best interests, as defined by that client,” said National Association of REALTORS® General Counsel Katie Johnson. “Failing to act in the client’s best interest and failing to disclose the pros and cons of a limited marketing plan, such as ‘coming soon’ advertising, can violate state real estate license laws and regulations, MLS policies, and the REALTOR® Code of Ethics.”

For most sellers, getting the highest possible price on the best terms is their best interest, and maximizing exposure of their property to potential buyers advances that interest. MLSs compile property information in an orderly manner and distribute that information to MLS participants who have buyer-clients actively seeking to purchase property in the location served by the MLS. Restricting the marketing of a seller’s property to only small networks, private clubs, or even to national websites without also making it available to other area brokers and agents and their buyer-clients through the MLS limits that property’s exposure and consequently the seller’s ability to attract competitive offers.

“It’s important that sellers understand the implications of various ways of marketing the property so that they can knowingly determine the choice which best serves their interests,”

said Johnson. “If a broker determines that ‘coming soon’ advertising is in the client’s best interest and confirms that the client understands the possible consequences, then it is imperative for the broker to know real estate license laws and regulations of their state to ensure that such advertising is in compliance. A broker who fails to comply with state laws and regulations risks facing disciplinary action from licensing authorities, as well as the possibility of litigation from unsatisfied clients.”

Many state license laws impose certain duties on licensees, including the duties of care, loyalty, good faith, and honest-and-fair dealing. An unsatisfied seller could allege that a broker breached one of these duties if the broker did not seek to obtain the highest possible price for his or her client where the client didn’t understand that the marketing of the property might not achieve the highest price.

In addition to complying with state license laws, brokers advertising a listed property as “coming soon” must ensure the advertising complies with their local MLS rules. Consumers benefit from MLSs because they help aggregate and evaluate numerous factors that can affect a property’s fair market value. MLS information facilitates appraisal preparation, comparative market analyses, and broker price opinions which help consumers ascertain a property’s fair market value. Sellers often rely upon those valuations when setting listing prices, and buyers rely on them when making offers to purchase. Those valuations are especially useful when they include information about comparable properties, including sales prices, days on market, and property conditions. Withholding that market information from the MLS impedes the consumer’s ability to receive useful estimates of value.

Johnson advised brokers to research the license laws and regulations in their states for guidance regarding “coming soon” advertising and to check their local MLS rules to ensure compliance.

Finally, adherence to the NAR Code of Ethics is an important consideration for brokers when advising clients on whether or not to advertise properties as “coming soon.”

“REALTORS® must remember to promote and protect the interest of the clients, present a true picture in their advertising, marketing, and other representations, and make property available to other brokers for showing to prospective purchasers when it is in the best interest of the seller,” said Johnson. Failing to do so harms the reputation of the broker and Realtors® in general, and may result in disciplinary action from the broker’s local association of REALTORS®.

C.A.R. To Publish Names of Code of Ethics Violators

In an effort to make ethics violations and the disciplinary process more transparent, starting August 1, 2014, C.A.R. will publish the names and other information of members who are found in violation of the Code of Ethics. If a member is found in violation of the Code, and the discipline is anything other than a letter of warning or stand-alone education, C.A.R. will publish the following information:

1. The name and photo of the member found in violation. If the member’s name is similar to another member’s name, their real estate license number and/or office address may also be included in the publication;2. A list of the Articles of the Code of Ethics that were violated and possibly the applicable standards of practice;3. A brief factual synopsis of the matter, with the names of other parties removed;4. The discipline imposed;5. The effective date and duration of discipline imposed; and6. The hearing panel’s rationale for the discipline imposed, if applicable.

The name of the real estate firm will not be published. The name of the responsible broker will be published, only if the broker was also named and found in violation. This information will be published on the members-only section of car.org, and local associations will be free to republish the information in their local members-only publications. Local associations will begin requiring respondents named in an ethics complaint to submit a photo at the time of filing a response to the complaint, or allow their picture to be taken before the hearing begins.

Most violations are related to advertising violations, however, members surveyed overwhelmingly cite problems with failure to cooperate with other agents (unavailability to show, misrepresent availability, give their buyers priority, failure to present all offers, etc.). Make sure you know the rules, so your name is not on the list!


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