2015 realtor magazine february march

1BAKERSFIELD REALTOR® MAGAZINE

H O M E O W N E R S H I P I S T H E A M E R I C A N D R E A M

F E B R U A R Y / M A R C H 2 0 1 5

M A G A Z I N E

SheriAnthesMeet your 2015 President Page 4

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Election Nominations2016 BAKERSFIELD ASSOCIATION OF REALTORS® OFFICERS AND DIRECTORS

DOWNLOADComplete online application

www.bakersfieldrealtor.org

Due Friday, April 3rd, 5pm

Interviews held for all

qualified candidates

April 20 -24th

April 20 - 24

Results Announced at Association Annual Meeting, Wednesday, June 24th at 10am

Association Governance and OrganizationREALTOR® associations on the local,state, and national level all have a partin enforcing policies and standards thatprotect the associations and help theorganization run smoothly. As an electedleader, it’s crucial that you understand therelationships between the different typesof associations and the rules that governthem. While the National Association ofREALTORS® sets policies and providesoverall leadership, the local associationshave the most direct connection with members.

Tuesday, March 2nd, 2015 - Nominations are open for 2016 Director/Officer

positions. Applications are available online at www.bakersfieldrealtor.org. Any REALTOR® member wishing to be considered for a Director’s seat must complete and submit the application.

Applications must also be submitted for directors and officers who are wishing to be considered for another term or moving up through the executive leadership positions of Secretary-Treasurer, Vice President and President-Elect. Please note the President-Elect automatically ascends to President.

TIMELINE FOR NOMINATING PROCESS:n Wednesday, March 2, 2015 – Election information published to members. Open

invitation to submit applications

n Friday, April 3, 2015 at 5pm - Applications are due

n Monday, April 20 through April 24 - Interviews of all qualified applicants

n Monday, May 18, 2015 – Election ballots e-mailed to REALTOR® members

n Friday, June 19, 5pm – deadline for submission of election ballots

n Tuesday, June 16 - Election committee (appointed by President with approval of Board of Directors) convenes to tabulate votes

n Wednesday, June 24, 2015, 10am - Election results released at Association Annual Meeting

ONLINE VOTING emailed to Members Monday, May 18, 2015Submitted by Friday, June 19th, 5pm

Ballot


CONTENTSBakersfield REALTOR® Magazine

Local Leadership at the State Level. Scott Tobias, Region 12 Chair recaps state meetings held at Indian Wells. Pocket ListingsLegal and practical issues to consider when not placing a listing on MLS.

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10

Investment in the State Water SystemSenator Jean Fuller supports California’s water system for the future.

Collateral Underwriter ProgramGary Crabtree on the new computer generated appraisal review data provided to Fannie Mae by appraisers.

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15

2015 President Sheri Anthes Inaugural CelebrationPhotos of the leadership Installation, dinner and celebration.

New Year, New YPNUnder the leadership of Jenny Cameron, the Ypn’ers look for more opportunities to help younger generation in real estate.

9 Easy Mistakes Homeowners Make on their TaxesDon’t pay more taxes than necessary.

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25

30

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

COVERSHERI ANTHES

2015 PRESIDENT

LETTER FROM THE PRESIDENTSHERI ANTHES2015 PRESIDENT

It happened in Lamont – early 1960s. It was pink and it was new. They paid $9200, with a monthly mortgage payment of $58. My parents knew everyone on the street where they

realized the American dream. That desire to own a home—the perfect home, the right home—is alive and well today. You see it every day. Every REALTOR® has a memory; that special moment you helped make a dream come true. I remember the young man who actually danced when I handed him the keys to his new home. Yes, he giggled, squealed and twirled around the room. I’ll never forget how that made me feel – making a difference in someone’s life. Purchasing a home may be more complicated than it was 50 years ago, but the emotions are still the same. This is a ‘people’ business.

At the end of each year, we welcome in the new by celebrating significant events of the year before. For many, embracing the new may come as a challenge. As a society, we become attached to things; the longer the attachment, the stronger the connection. Letting go can be difficult, yet exciting. There is an element of comfort in the familiar, yet progress is crucial for relevance. As REALTORS®, change is our only constant. In 2014, we said goodbye to the Thomas Guide and embraced digital signatures.

Then in November, a big one: a new and improved Residential Purchase Agreement was released. The C.A.R. Mission Statement is as follows: The purpose of the CALIFORNIA ASSOCIATION OF REALTORS® is to serve its membership in developing and promoting programs and services that will enhance the members’ freedom and ability to conduct their individual businesses successfully with integrity and competency, and through collective action, to promote the preservation of real property rights. This was never more evident than in the development and release of the new RPA. The new contract brought about the retirement of the Wood Pest Addendum and introduced or modified

Transformation happens as

we embrace change


BUILDTO SUITINNOVAT I ON

I NT ENT I ONAL

TRANSFORM I NG

39 other forms. I was privileged to serve on the Forms Advisory Committee at C.A.R. for the past 3 years. I witnessed firsthand the commitment, focus and diligence of my fellow committee members. Every effort was given to bring about these much-needed improvements. Throughout the weeks and months of drafting revisions, every comment, email, challenge and suggestion from REALTORS® across the State were carefully reviewed, considered and evaluated. It is a work in progress. I welcome and encourage input as each of you implement the contract and identify its efficiency. Thank you to those who have provided feedback. All of your suggestions will be taken to the Standard Forms Advisory Council, and you can rest assured that careful thought and consideration will be given to each suggestion. As an Association, you set a record for the most-attended training class in the entire state. Impressive! You proved this Association is not intimidated by change, but embraces it.

As C.A.R. excelled in their commitment to the industry on a state level, changes were being made on a national level as well. In May of 2014, NAR adopted new Organizational Core Standards for Local Associations. Every local and state association of REALTORS® shall annually demonstrate compliance with the following core standards. As used in the policy, “state associations” and “state association of REALTORS®” include the territorial association of REALTORS®. Local associations will be responsible for communication and describing the programs, products and services of the national and state associations such that all members will understand value propositions at all three levels. Raising

the level of efficiency, these requirements increase accountability of the local Associations and their ability to serve the Members. We should all be extremely proud to know our Association was over 95% compliant at the outset; a true testament to our Staff and Leadership.

As the year progresses, you will hear more on several other key policy changes from the national level — each designed to raise the bar of professionalism. The implementation of biennial education and testing on the Code of Ethics will be first on the list. Even more significant is the anticipated adoption of a Code of Excellence. “The REALTOR® is not just there to conduct an ethical transaction”, says NAR President Steve Brown. “While the Code of Ethics lays out what Agents should not do, the Code of Excellence will lay out what Agents should be doing and how”. NAR is hoping to have the proposed Code developed and submitted for review by May of this year.

Our journey for 2015 is now underway and full of promise. According to experts, the market outlook is positive. NAR Chief Economist Lawrence Yun expects existing home sales in 2015 to rise about 7%, behind a strengthening economy, solid job gains and a healthy increase in home prices. Leslie Appleton Young, C.A.R. Vice President and Chief Economist, has similar positive predictions for California. An overall prediction is a 5.8% increase in single-family home sales, and an increase in the median price of 5.2%. No doubt there will be challenges, and unknown forces will impact the story. I know we are ready. Let the memories begin!

Make no mistake about it; the way that working-class people build wealth is through homeownership, not the

stock market, not their 401(k) and not a pension.—John Taylor, President of the National Community Reinvestment Coalition


The GEMLS, Inc. has a policy that the corporation and its members fully comply with California and United States antitrust laws. This policy includes the following points:n The GEMLS will provide information to members on real estate antitrust issues on a regular basis.n The GEMLS will occasionally publish the following information in the Bakersfield Association REALTOR® Magazine:“The GEMLS has a statement of policy concerning Brokerage Fees. From time to time, the GEMLS publishes its statement as a reminder to all members. It is the GEMLS’ policy to comply fully with all applicable antitrust laws of the State of California and the United States. In this regard, the following points are

important to members:1. The GEMLS does not fix, establish, suggest, maintain or recommend to its members any rate or amount of commission.2. The GEMLS does not fix, establish, suggest, maintain or recommend to its members the division of commission on cooperative real estate transactions.3. The GEMLS does not keep records of members’ commission and/or division of commission policies.4. The GEMLS will accept all listings properly submitted, regardless of commission and/or division of commission.5. Any member who provides information to the public which is contrary to this policy may be subject to disciplinary action.

Remember, each real estate brokerage firm must ultimately determine its commission charges.

GEMLS Policy in ReviewComplying with California and United States anti-trust laws

Our Association champions the pursuit of higher education, because education impacts every part of our community. The Scholarship Trust Fund offers qualified students from a Kern County high school, community college or university an opportunity to apply for scholarship funds.

Priority consideration is given to those who are pursuing a course of study in real estate or a related field at the college or graduate level; however, all students who meet the qualifications are invited to apply.

GENERAL INFORMATION Scholarships are considered once a year. This year applications are

due by April 30th at 5pm. Former recipients are invited to re-apply.

QUALIFICATIONS Applicants must be a graduate of a Kern County high school or a student/graduate of a Kern County community college or university. Visit our website for more information and to download the application.

2015 Applications are available online, go to bakesfieldrealtor.org/about us/scholarships

COLLEGE SCHOLARSHIPSWe’re here to help defer the high cost of college. Apply today!


At four o’clock on November 28, 1905 when H. G. Parsons, the founding President of our organization, held

a meeting to discuss the establishment of a “realty board” in Bakersfield, could he have ever imagined the powerful and positive impact such an action would have on our Community?

From a community of 12,000 residents in 1905, with houses ranging in price from $1,000 and $17,000 and a Realty Board of 15 members, to our current population of nearly 350,000, houses ranging in price from slightly under $100,000 to over $1,000,000 , and nearly 1600 REALTOR® members strong… we have definitely come a long way!

Even though our community and industry continues to be a dynamic, demanding and ever-changing environment… some things remain the same… like the REALTOR® Brand and our commitment to professional excellence.

So while the faces and names may be different, our guiding principles and values are unchanging. We are Forward Thinking… As leaders

within our professional and regional community, we are committed to advancing a standard of professionalism that personifies the highest standard of ethics and business practice. We establish a bold and ambitious vision and plan for our Association… then lead by example with integrity and passion.

We are Strategic… We are mission focused; as we are inclusive and diverse, we look at the big picture and make decisions that are fact-based and in the best interest of ALL of our members, always striving to do the right thing; we continue building a strong leadership team that is capable of matching our organization’s goals with the changing environment.

We are Intentional… We intentionally challenge the status quo to ensure our members strive for and maintain the highest standards of competency.

Whether a new licensee or a seasoned veteran, our commitment to you remains steadfast and strong… to deliver the best possible programs, products and services to maximize your proficiency, efficiency and productivity.

We are Innovative… We consistently seek new and creative ways, to utilize our internal talents and resources, build strong collaborative community partnerships and deliver our programs, products and services more effectively, thus maximizing our member’s value proposition.

Our vision and purpose is clear… “to improve the real estate industry through professionalism and service”, and “to be the leading advocate of the real estate industry, out members and the consumers they serve”.

I AM A REALTOR® and I live by the Code. As the real estate market is a dynamic, demanding environment, so the Code is, has been and will continue to be a demanding and dynamic document; a plan for professionalism in real estate capable of including and accommodating every change, challenge and controversy which arises. - National Association of REALTORS®.

“To REALTORS®, the Code of Ethics offers the lessons of hindsight, the guidance of foresight and the understanding of insight.” A Rare Gift of Vision.

LETTER FROM THE CEOLETTER FROM THE CEO

Celebrating 110 Years…

PresidentSheri AnthesColdwell Banker, Preferred — Ming

President-ElectBill Redmond Watson Realty ERA

Vice PresidentMidge JimersonBoydstun Realty Co. Inc.

Secretary/TreasurerAthena CollupMiramar International — Mill Rock

Immediate Past PresidentTheresa OlsonMagic Real Estate

Chief Executive Officer - Linda Jay

2015 OFFICERSPam EppsEPCO & Associates

David Gay Tobias Real Estate

Jacob Marquez Miramar International – Haggin Oaks

2015 DIRECTORSDerek Sprague Sprague Real Estate Group

Brian Tuttle Coldwell Banker Preferred– Coffee

Wayland Louie RE/MAX Magic Golden Empire

Kevin Palla Broker

If they could see us now!


contribution by

SCOTT TOBIAS REGION 12 CHAIR, TOBIAS REAL ESTATE

Over the past few years I have had the opportunity to be a Director of the California Association of REALTORS®.

During that time, my eyes have been opened to an aspect of our State real estate organization, of which I was totally unaware; the sheer power to get things done on behalf of our industry. Over 800 REALTOR® volunteers from 32 Regions throughout the

State, work to form committees that create the impetus to support property rights, home ownership, as well as the enhancement of our business.

Recently being at the right place at the right time, I was elected to be the 2015 Chairman of Region 12, which is comprised of nine associations in our central valley and mountain communities. Our first C.A.R. meeting of the year was in January at Indian Wells. Among the committee meetings that directly affect your business were Standard Forms, which last year

brought you the new RPA, but continues to work on recommendations to improve and refine the Zip Forms that we use. Other committees include Political Action, working

Local Leadership gets Involved at State LevelDecisions made can immediately affect Associations throughout California or in the future

SCOTT TOBIAS Region 12 Chair

Linda Jay Chief Executive Officer

Theresa Olson Immediate Past President

Midge Jimerson 2015 Vice President

Bill Redmond 2015 President Elect

Athena Collup 2015 Secretary-Treasurer

Kris Heriford

David KnoebREALTOR® OF THE YEAR

Wayland Louie Brian Tuttle Kevin Palla

SHERI ANTHES2 0 1 5 P R E S I D E N T

Stephen Moynier

2300 BAHAMAS DRIVE | BAKERSFIELD, CA 93309 | 661.635.2300 | bakersfieldrealtor.org | facebook.com/bakersfieldrealtor | twitter.com/bksfldrealtors

2 0 1 5 A S S O C I AT I O N L E A D E R S H I P T E A M O U R 2 0 1 4 AWA R D R E C I P I E N T S

2 0 1 5 B A K E R S F I E L D A S S O C I AT I O N O F R E A LT O R S Æ D I R E C T O R S 2 0 1 4 R I S I N G S TA R S

David Gay Jacob Marquez Pam Epps Derek Sprague


PHOTO COURTESY OF THERESA OLSON

Scott Tobias, Jeanne Radsick and Bill Redmond just before getting sworn into their new positions as 2015 C.A.R. Directors.

PHOTOS COURTESY OF LINDA JAY

Our local leaders get sworn in at the C.A.R. Inaugural celbration at Indian Wells. Left to right is Scott Tobias, Derek Sprague, Bill Redmond, Theresa Olson and Sheri Anthes.

to support both issues and candidates that are supportive of our industry. There are also the Professional Standards and Risk Management Committees that review and present better ways of conducting our business.

The committee that gets the most attention, however, is the Legislative Committee which stems from other committees such as Transaction and Regulatory and Land Use and Environmental. Through these legislative committees, with approval or disapproval from the Board of Directors, a determination is made as to whether we are going to Sponsor, Support, Oppose or Amend legislation in Sacramento. There is another position that C.A.R. can take, that

Misty JeffriesAFFILIATE OF THE YEAR

David KnoebREALTOR® OF THE YEAR

Jon BusbySALESPERSON OF THE YEAR

SHERI ANTHES2 0 1 5 P R E S I D E N T

Stephen Moynier Angela Trevino

2300 BAHAMAS DRIVE | BAKERSFIELD, CA 93309 | 661.635.2300 | bakersfieldrealtor.org | facebook.com/bakersfieldrealtor | twitter.com/bksfldrealtors

O U R 2 0 1 4 AWA R D R E C I P I E N T S

2 0 1 4 R I S I N G S TA R S

being to take a Watch Position on legislation that is an area of interest to C.A.R. but not one that merits the expenditure of lobbying resources.

The following items were presented to the Directors in January:n C.A.R. adopted a “Support” position on SB 37 (Nielsen) Water: floods, a bill that seeks to create and emergency legislation bridge to allow funding for local flood control projects.n C.A.R. adopted a “Watch” position on SB 32 (Pavley) California Global Warming Solutions Act of 2006; emissions limit, a bill that seeks to further reduce Greenhouse Gas emissions by an additional 80% below 1990 levels by 2050.n C.A.R. will “Support” legislation that would require amendments to the State constitution to be approved by a 55% super majority of the voters.n C.A.R. will “Support” legislation to clearly identify parcel tax exemptions on the property tax bill and include electronic means of inquiry for affected taxpayers.n The Board of Directors did not approve a recommendation that C.A.R., in conjunction with NAR, “Support” making permanent and expanding the First-Look program that would allow owner-occupant buyers for all single-family residential REOs that were financed using a government owned, guaranteed mortgage. n The Board of Directors did not approve a recommendation that C.A.R. “Sponsor” legislation to create a new definition of “unreasonable or unnecessary” burdens on real estate transactions to include the imposition of any additional costs or delays to

be included in the law enacted by AB 758 (Sinner).

These were just the most critical of all the action items the Board of Directors voted on. There were many more; some issues were contested and the debates are often long and contentious. The wonderful aspect of these meetings, is that once the votes are counted… whether someone’s position is approved or disapproved… the result is accepted. It is not always flawless, but it is pretty darn close. I, for one, am very impressed with the process.

If you have an interest in the mechanism that supports our business in so many ways, I would invite you to attend “Legislative Day” in Sacramento this year on Wednesday April 22nd. You will see for yourself the amazing process and power we have with our State Legislators. It is an opportunity to be involved at this level in your industry; and I assure you it will not only be awe-inspiring but will generate a feeling of appreciation that your business is so powerfully supported.


What to know about Pocket LlistingsLegal and practical issues to consider when not placing a listing on MLS

contribution by

JOE NEWTON OMBUDSMAN

REALTORS® under contract to sell a property will generally place that listing on the Multiple Listing Service (MLS). There are times, however, when a particular listing is not placed into MLS. When that happens, Pocket Listings, although not a legally-defined term, refer to an agreement between the Seller and Agent not to market the property through MLS. Other terms often heard are COMING SOON and WHISPER LISTINGS.

According to the California Association of REALTORS® (C.A.R.), a pocket listing can be legal. However, a pocket listing raises a number of legal and practical issues that Agents should consider. In the “Question and Answer” section of the legal department, more details can be found on this subject.

1 Generally, an MLS participant will submit new listings for one to four

residential properties, including vacant lots. The model MLS rules provide an exception when a Seller signs an MLS certification stating that the Seller does not authorize the listing to be disseminated by the MLS.

2 Sharing non-MLS listings with other Agents through informal or formal

groups are legal, assuming they do not violate anti-discrimination and antitrust laws.

3 With a pocket listing, an Agent is required to present all offers to the

Seller under the Listing Agent’s fiduciary obligation to the Seller (see Standards of Practice 1-6).

4 When observing an Agent’s ‘For Sale’ yard sign, check with the MLS to

determine whether the Listing Broker has submitted a signed Seller’s certification not to disseminate the listing in the MLS.

5 A pocket listing could be deemed as a breach of a Listing Agent’s fiduciary

duty to the Seller if the arrangement is not in the Seller’s best interest under California real estate law. The Seller should understand the pros and cons of doing a pocket listing before voluntarily agreeing to withhold the property from the MLS.

6 A pocket listing could (but not necessarily)

violate the NAR Code of Ethics and

Standards of Practice. The NAR Code of

Ethics requires a REALTOR® to “promote

and protect the interests of the client.”

Standards of Practice 1-12 also specifically

requires a discussion with the Seller on the

“company policies” regarding cooperation and

compensation that will be offered to Sub-

Agents. Article 3 of the NAR Code of Ethics

places on a REALTOR® the duty to cooperate;

those duties to cooperate are explained in

Standards of Practice 3-10.

7 A pocket listing may create a risk of a fair housing violation. As REALTORS®,

we are always to be aware of the legal and ethical duty not to engage in any type of unlawful discrimination. A related risk discussed by C.A.R. is the disparate impact on the parties even without the intent to discriminate. This is where there is limited marketing of the property which limits the exposure.

8 Regarding antitrust concerns: on its own,

a pocket listing is unlikely to raise an antitrust issue. However, Brokers who have pocket listings and who work in groups with other Brokers could create antitrust matters depending on the practices of those groups. For example, there might be minimum commission rates for members, or other price-fixing arrangements.

C.A.R. Legal Hotline C.A.R. Members requiring legal assistance may contact the C.A.R. Member Legal Hotline at 213.739.8282 or 213.739.8350.

Advice in specific situations may differ depending upon a wide

variety of factors.

Joe Newton, Ombudsman

2014 OMBUDSMAN REPORTOctober - December

n 193 calls were received by our Ombudsman

n 74 calls were grievance/ethics complaints against agents that were resolved

n 1 call was an arbitration complaint against an agent which was resolved

n 3 grievance/ethics packages were mailed to complaining parties regarding cases that could not be resolved.

n 3 arbitration packages were mailed to complaining parties regarding cases that could not be resolved.

n 87 calls requesting information on real estate procedures

n 10 calls requesting information on deposits

n 2 calls were complaint against a non- association member.

n 3 anonymous calls

n 6 cases referred to Association mediation

n 4 Tehachapi calls

n 799 Year-to-date total


contribution by

SENATOR JEAN FULLER 16TH SENATE DISTRICT

Recently, I was honored with a Legislative Leadership Award from the Association of California Water Agencies for my work on the Water Quality, Supply, and Infrastructure Improvement Act of 2014.

The passage of this Act began in 2009, when a bipartisan group of lawmakers were concerned about the inadequacy of California’s water system. This group worked diligently and built a framework to modernize the state’s water system that could handle the increasing population and food production needs of our state. After all, our state’s water system was originally designed for 16 million people. California now has a population more than twice that, and it is obvious this aging system can no longer handle these needs.

This compromise, constructed with input from lawmakers and stakeholders from all regions of the state and different sides of the issue, led to the passage of one of the most comprehensive water infrastructure investment packages to be approved by the legislature in decades.

However, this proposal was delayed for various reasons, including concerns that voters would not support a bond of this size. Despite these delays, I remained committed to ensuring a comprehensive water system plan would be implemented.

Last year, one of the driest years on record, it became clear to everyone that additional delays were no longer an option.

Following a series of

negotiations with a number of my colleagues, we agreed on a streamlined water bond largely based on the initial efforts in 2009.

At roughly $7 billion, the passage of the historic Water Quality, Supply, and Infrastructure Improvement Act of 2014, and subsequent voter approval of this investment, was a victory for all of California. It will provide badly needed, and overdue, investment into our state’s overall water infrastructure, including significant new water storage, funding to local agencies for clean drinking water, and help for groundwater contamination clean up.

A vital piece of this investment is $2.7 billion reserved for the construction of

above-ground water storage to improve

our water system’s ability to capture snow runoff. In addition, the Water Investment Act provides $520 million for clean, safe and reliable drinking water, split evenly between waste water treatment for small communities and public water system infrastructure. Also available are $100 million for water conservation and efficiency, and $80 million for treatment and remediation which prevents or reduces contamination of drinking water sources.

Now, as we move into the next phase of implementation of this historic investment, it is even more important to ensure these funds are used wisely, efficiently and swiftly.

I will work hard to ensure that we are not negatively impacted with frivolous, politically-driven environmental lawsuits for this important and historic investment, which is one the most vital pieces of our infrastructure.

The current drought is having a tremendous impact on the livelihood of millions of Californians. This investment represents a good, first step towards preparing California’s water system for the future.

State Senator Fuller represents the 16th Senate District, which is comprised of large portions of Kern, Tulare and San Bernardino Counties including the communities of Bakersfield, Barstow, California City, Exeter, Frazier Mountain, Joshua Tree, Mojave, Needles, Ridgecrest, Rosamond, Taft, Tehachapi, Twentynine Palms, Tulare, Visalia, Yucca Valley and areas in the Kern River Valley.

You can follow Senator Fuller on Twitter: @jeanfuller or, “Like” her Facebook page www.facebook.com/JeanLFuller

Investment in the State Water System is a Good StartThe livelihood of millions of Californians are currently being affected by the drought

REALTORS® WHO MAKE THEIR VOTE COUNT… JOIN THE R.GOV COMMITTEE NOW!


2015 Oversight Officer

Midge JimersonVice President

EDUCATE


Kevin PallaDirector

ENGAGE2015 Oversight

OfficerBill RedmondPresident Elect

LEAD


Theresa OlsonImmediate

Past President

SERVE


Athena CollupSecretary Treasurer

ADVOCATE

2015 CommiteesTask Force

Led by Sheri Anthes

2015 President

n Educational n Commercial Investmentn Diversity n Membership/ Orientationn Technology

n Affiliatesn Attendance & Receptionn Thursday Brewn YPNn Brokers Forum* (Brokers & Sales Managers Only)

REALTORS® CARE n Equal Opportunity n Sally’s Placen Golf Tournamentn Bringing Home the Cure: v Campout Against Cancer v Relay for Life v Wine Eventn Wine Tasting Eventn Scholarship Trustees*

JOIN TODAY! Call Cindy at

635-2300

REALTORS® CARE REALTORS® are always looking for ways to give back to our community. We encourage you to join any one of our communities or task forces. Call 635-2300 for more information.

n Grievance*n Professional Standards*n Strategic Planning/Finance*n Nominating*n YPN Advisory

n R.GOVn LCRC*

Task Force

Task Force

Task Force

C O M M I T T E E S A N D TA S K F O R C E S AT A G L A N C E

Task ForceTask

Force


contribution by

HELEN THOMAS PLATINUM HOME MORTGAGE

Well, there’s some good news out there, and it’s about time!

On Monday, January 26th, the White House made FHA mortgages more affordable by reducing monthly mortgage insurance premiums.

The FHA mortgage insurance premiums were reduced from 1.35% to the new, current rate of 0.85%. It is estimated that this 0.5% reduction in premiums will produce an average annual savings of $900 for all new FHA borrowers.

Over the last few years, with the ever-increasing mortgage insurance rates, FHA saw a runoff of their market share as many of the traditional users of government-insured financing were instead seeking conventional loans. The people who FHA are designed to serve (first time, low income, and minority borrowers) were

having difficulty supporting the weight of the higher premiums. Lowering the mortgage insurance premium makes the payment on an FHA loan more competitive now, with a conventional loan using a similar down payment.

The lower premiums will now mean that a potential borrower who qualified for a $225,000 home last month could now feasibly increase their purchasing power to $239,000. This, coupled with an anticipated demand for housing, should push prices a little higher.

Locally, however, we are still held back by area FHA loan limits of $271,050. T hese limits were lowered in January of 2014 to more accurately reflect the median-priced home in our area. I shed a tear of sadness in fond memory of the days when the limit was as high as $368,750 for a single-family home.

Borrowers who obtained FHA loans in the last 3 years will most likely be able to benefit from a lower mortgage insurance premium by refinancing. Many lenders will be able to offer simple, streamline refinances without income verification or appraisal on the property. A refinance like this can frequently save homeowners hundreds of dollars a month and give their pocketbooks a little boost.

FHA made an additional, less-publicized

change on January 26th. FHA loans with case numbers issued after this date will require only exact interest due to be charged on the payoff of the loan. Prior to this, FHA loans were required to include the full interest due through the end of the calendar month in which the loan was paid off. Now, the loan will only be charged interest through the actual date of payoff. This could eventually free up our crazy, month-end closing pushes to protect the seller from an additional month’s interest expense. Don’t get too excited, though, as it applies only to loans with case numbers taken out after January 26th so it will take a while to see the effect. I expect it will be confusing in the future, and it will be important to keep this date in your memory when figuring a net sheet for your sellers in the days to come.

All in all, the new home buying activity and the benefits of the cost savings to borrowers should help further strengthen the housing market. An increase in first-time home buyers and more affordable mortgages will help spur more residential construction and help to create new jobs in the housing sector.

To quote Martha Stewart,

“It’s a good thing”.

Helen Thomas

Housing Market gets Strengthened

White House makes FHA mortgages more affordable


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 becoming a member of The A Team contact Michele Cooper, our Affiliate Chair!

SHERYL GALLIONTicor Title

[email protected]

LISA HOOKProspect Mortgage

[email protected]

www.myprospectmortgage.com

SUZI BEATYFidelity National Home Warranty661.477.3906

[email protected]

MONA CIMENTALProperty I.D.

[email protected]

www.propertyid.com

ASHLEY WEAVERKarpe Real Estate Center

[email protected]

karpe.com

BARBARA WELLSSan Joaquin Valley

Mortgage 661.703.2227

[email protected]

MIKE GEORGEAgape Mortgage 661.324.2427

[email protected]

Call Michele Cooper at 661.900.2358 for more informationYou 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!

Michele Cooper Affiliate ChairChevron Valley Credit Union

mcooper@ chevronvalleycu.com 661.900.2358

JANETTE RAMSEYPersonal Express Insurance

661.328.9250janette@jramseyinsurance.compersonalexpressnorthwest.com


Collateral Underwriter ProgramAppraisals submitted for accuracy, consistency, and the use of “proper” comparables

contribution by

GARY CRABTREESRAAFFILIATED APPRAISERS

On January 26th, Fannie Mae will roll out its Collateral Underwriter (CU) program, with Freddie Mac

rolling out the same program in March. Virginia already uses a Core Logic AVM to review appraisals and it’s almost guaranteed that FHA will follow suit.

For those of you who are not familiar with the Collateral Underwriter program, it is a computer-generated appraisal review using data provided to Fannie Mae by the appraisers since 2010. To date, they claim to have 40 million sales entered into their database, with 40,000 added monthly.

The purpose of the CU program is to review every appraisal submitted for: accuracy, consistency, the use of “proper” comparables, and possible overvaluations and undervaluations. The appraisal will be reviewed before the loan is submitted and will receive a score from 1 to 5, with 5 being “high risk”. Contained in the program will be a series of “hard stops” which will automatically reject the appraisal, and also generate a list of 20 “low-risk” comparables that the loan underwriter may use to query the appraiser, thus extending the time of the appraisal process.

The Collateral Underwriter program is a very sophisticated, automated valuation program that will select what it determines to be the “best comparisons”, using their database which defines a neighborhood by its Census Tract(s). Therefore, the Appraiser and REALTOR® are encouraged to use Census Tracts for comparable searches. Gone are the days of comps within one mile; no more than a 10% “line item” or 15% net and 25% gross adjustments & comparables may

be used with sales dates up to 1 year old. The lowest-risk comps will be those with the most similar characteristics, such as size, bedroom and bath count, age, lot size and amenity features. Condition and quality are determined by the appraiser-imputed “condition & quality” rating, which is subjective, at best, but considered “absolute” by CU.

Another issue is the mandated use of Fannie Mae’s Market Conditions Analysis form, which is basically flawed in that it will take from 3-6 months for the analysis form to recognize a trend, albeit positive or negative. In an increasing and/or decreasing market, time/market condition adjustments will not be supported, thus not used, further repressing values in an up-trending market. Because of CU, every adjustment to a comparison that an appraiser makes must be supported by facts, using “paired data” analysis and/or regression analysis.

Every appraisal will be attached to the appraiser’s license number, and if there is a pattern of “high risk” appraisals attributable

to an appraiser, he/she will receive a “warning letter”. And if, in the opinion of Fannie Mae, appraisal quality does not improve, the appraiser will be placed on the 100% Review and/or Do Not Use list from Fannie Mae, which will result in loss of profession; all of this without explanation or what recourse (if any) the appraiser may have to defend his/her appraisal.

Many appraisers are in fear of this new program, and most likely will turn to “defensive” appraising by using the lowest-risk comparables, giving the minimum amount of data to produce a minimal creditable report. This may result in “conservative” appraisals and not allowing a “free market” to function.

Why such a drastic measure? The program is designed to “weed out” bad appraisers and prevent another “bubble”. After all, it was appraisers who caused a major part of the “last bubble” by over appraising properties, according to the GSEs.

Gary Crabtree


LOREM IPSUMdesign for living

Surprising

Things That Add Value to Your House

A home’s value is dependent

on many things. Here are

nine factors you might not

have thought about.

DONA DEZUBE | HOUSELOGIC

A home’s value is dependent on many things. Here are nine factors you might not have

thought about when placing a value on your home.Walking to schoolBeing able to hoof it to school, shops, and restaurants can add as much as $34,000 to your home’s value. The boost from walkability is biggest in large, dense cities.

What do surf breaks, Walmarts, and public transportation have in common? Being near any of these places can add thousands to your home’s value.

At least that’s what various university researchers have discovered, based on their evaluation of variables influencing home prices. Their conclusions might surprise you. Here’s what they found:

1. Surf BreaksBeing within a mile of a surf break (a spot where surfable waves occur) adds about

$106,000 to a home’s value, according to surfonomics experts at the Monterey Institute of International Studies.Reality check: Mother Nature makes surf breaks, so you can’t build your own DIY surf break to boost your home’s value.

2. Parks and Open SpacesDesirable public parks and other recreational open spaces boost property values of nearby homes by 8%-20%.

One study looked at 16,400 home sales within 1,500 feet of 193 public parks in Portland, Oregon and found these boosts to home values:Natural areas: $10,648; Golf courses: $8,849; Specialty parks: $5,657; Urban parks: $1,214Reality check: A park that is not maintained and overcrowded can drag down nearby home values.

3. Living Near a WalmartAlong with making it easier to run out for a gallon of milk at midnight, researchers at the University of Chicago concluded that living

INCREASING THE VALUE OF YOUR HOMEdesign for living

9


LOREM IPSUMINCREASING THE VALUE OF YOUR HOME

within a mile of a Walmart store could raise your home’s value by 1%-2%; and, living within half a mile of a Walmart could boost your property value an additional 1%. For an average-size home, that’s an uptick of $4,000-$7,000.Realty check: What you gain in home value, you may end up spending at Walmart.

4. WalkabilityBeing able to stroll to schools, parks, stores, and restaurants will raise your property value anywhere from $4,000-$34,000, according to a 2009 study from CEOs for Cities.Reality check: The biggest boost in walkability values occurred in large, dense cities.

5. Accessory Dwelling UnitsWhether it’s a granny flat, an in-law apartment, or a carriage house, having a separate unit can increase your home’s value by 25%-34%, according to a study of 14 properties with accessory dwelling units in Portland, Oregon. You can also get a steady stream of income from a second unit.

Reality check: Local governments often ban accessory dwelling units, so check zoning laws, building codes, and homeowners association rules before you add a unit.

6. Professional Sports ArenasA new pro sports stadium can raise property values in a 2.5-mile radius an average of $2,214. The closer you are to the new facility, the larger the increase in home value. Researchers from the University of Illinois

at Urbana-Champaign and the University of Alberta examined house sales in Columbus, Ohio before and after the city added two sports stadiums.Reality check: If a stadium is proposed, home values decline until the project is completed. If you live really close to a stadium, you may encounter traffic and parking issues.

7. Solar Photovoltaic SystemsCalifornia homes with solar photovoltaic (PV) systems sell for a $17,000 premium over homes without solar systems, according to research from the U.S. Department of Energy’s Lawrence Berkeley National Laboratory.Reality check: Although costs for residential solar power systems are falling, they’re still rather pricey at $15,000-$40,000, depending on the size of your house.

8. Community GardensPlanting a community garden raises the value of homes within a 1,000-foot radius by 9.4% within five years, according to research by the Office of the Comptroller of the Currency and New York University School of Law.

The impact increases over time, and high-quality community gardens have the greatest positive influence. Poor neighborhoods saw the biggest gains in home values.Reality check: Gardens on privately-owned land and in higher-income neighborhoods don’t have the same beneficial influence.

9. TreesNo real surprise here — whether trees are in your yard or just on your street, you should be aware that they are a valuable asset. Here’s a gauge of how much trees are worth to your home value, according to a University of Washington research survey:

Mature trees anywhere in your yard: 2%.Mature trees on your street: 3%.Trees in your front yard: 3%-5%.Mature trees in high-income0

neighborhoods: 10%-15%.Reality check: Trees usually mean work — raking leaves and trimming branches.


S H E R I A N T H E S I N A U G U R A L C E L E B R A T I O NBAKERSFIELD ASSOCIATION OF REALTORS ®

sher i2015 PRESIDENT

Photos: ABBYS PHOTOGRAPHY, 661 342-4945

A FN F T F H F E S


S H E R I A N T H E S I N A U G U R A L C E L E B R A T I O N


Early YearsIn the 1930s, the National Association of Real Estate Boards (the predecessor of NAR) witnessed a growth of women working in real estate and an increased participation of women at national conventions, as women were becoming aware of their potential in and importance to the industry.A Women’s Division had already been created in 1924 by the California Real Estate Association. Fourteen years later, 1938 National President Joseph Catherine encouraged the formation of a national Women’s Council after being impressed by the California group.At the time, NAR was already 30 years old, but most decisions were still made by local boards — most of which were resistant to offering membership to women. However, the National Association was ready to recognize women in real estate, and a positive vote resulted in the formation of a women’s division at the Annual Convention in Milwaukee in November 1938. Thirty-seven ambitious women represented nine states at that meeting for Women’s Council’s inception. Since its inception, many dedicated members have served as role models and achieved many “firsts” in the industry and in their communities.Through the decades, Women’s Council’s membership growth reflected the vast number of women choosing to work in real estate as they recognized the immense career benefits combined with a Women’s Council membership, including:Earnings equitable to men’s because “commission is commission.”Flexible work schedules allowing REALTORS® the ability to raise a family and have a career instead of choosing one or the other.A support system of women in the same field garnering many friendships, networking capabilities and referrals.Confidence through connection with other professional women REALTORS®.Recognition for their own achievements and success, as well as inspiration and courage to strive for greater successes. Today, Women’s Council is the twelfth largest U.S. women’s professional organization and has one of the most successful communication networks in the NAR family. Chapters include real estate professionals who support the objectives of Women’s Council and are interested in serving the industry, the community and fellow REALTORS®.

History of the WCR

Melanie Barker

contribution by

MELANIE BARKERWOMEN’S Women’s Council of REALTORS®, California Governor, District 3

We are a network of successful REALTORS®, advancing women as professionals and leaders in business, the industry and the communities we serve.

Women’s Council of REALTORS® is established as a reliable source of knowledge, committed to the personal and professional success of our members. The organization is trusted by professional REALTORS® for more than 75 years, and is a designated council of the National Association of REALTORS®.

We strive to be standard bearers of professionalism and personal excellence. We are educators, providing programs to build relevant business and leadership skills, and enabling our members to build their businesses in the real estate industry.

Additionally, Women’s Council of REALTORS is committed to leadership development of women. The leadership skills our members learn are shared with

other organizations in the communities in which we work. Some of our members not only serve in organized real estate (i.e., Bakersfield Association of REALTORS®), they also participate in Chambers of Commerce, National Organization of Women Business Owners, School Boards, City Councils, Planning Commissions and community service organizations. This is all made possible through the confidence gained from the Council’s leadership development opportunities.

We deliver ‘credibility’ because we stand for professional excellence. The Council provides the relevant skills needed in today’s ever-changing marketplace. There is also a professional, dynamic support system to ensure that our members have increased business productivity. If you’re in real estate, it is a must-belong-to organization.

For more information about the WCR, please go to wcr.org.

ABOUT THE AUTHOR:Melanie Barker, REALTOR®

n Director, National Association of REALTORS®

n Director, California Association of REALTORS®

n 2015 President, Yosemite Gateway Association of REALTORS®

n 2015 Director, Oakhurst Area Chamber of Commerce

Leadership Skills SharedWCR standard bearers of professionalism and excellence

Our local WCR Chapter was started in 2003 by founding member and first president, REALTOR® Cissy (Johns) Clark. Now celebrating their 12th Year, the following members of our Association followed in her footsteps, serving as president: Nancy Harper, Judy Camp, Mary Christenson, Leslie Walters, Barbara Norcross, Jodi Moore, Jo Rhodes, Debi Roberson, Rhonda Newport, Lisa Belt and Tony Ayon. Congratulations on your leadership and accomplishments. We look forward to our continued partnership in serving our members and the community.


Agents Rely on Print to Get Web Traffic

In this era of online marketing, why are business cards, fliers, postcards and lawn signs still essential tools of real-estate sales campaigns, even

though there isn’t overwhelming evidence for a return on investment (ROI)?

Print-marketing tools appear to produce fewer sales leads than online marketing, according to the results of a November 2014 WebsiteBox survey of 369 real estate professionals in the United States and Canada. “But, print marketing continues to be popular because agents intuit—correctly—that print drives local traffic to websites, and delivers sales leads to email inboxes,” said Peyman Aleagha, Chief Executive and Founder of WebsiteBox, a provider of do-it-all websites for real estate professionals. It’s no surprise then that 99% of survey respondents said they include website addresses in their print marketing. Use of social media information—Facebook or Pinterest, for

example—was

reported by 54% of respondents.

While they continue to rely on print, respondents said that only 13% of their sales leads come from traditional print promotion versus 21% of leads that originate from online marketing. This seeming contradiction may result from misunderstanding how print can work in concert with online marketing, and that less than half (42%) of respondents calculate the ROI for their print marketing, according to Aleagha.

On the other hand, it might not matter: The survey found that 60% of real estate sales leads come from good old-fashioned referrals.

DIY DesignThe majority of respondents (66%) said they designed their print pieces using graphics software packages, such as

Adobe Photoshop or web-based tools, such as those from Vistaprint. The top self-designed items, according to the survey, are business cards, fliers, postcards, lawn signs and letterhead.

Despite saving on design costs, 60% of respondents reported that they typically spent more than $500 annually on print promotion. A sizable majority (80%) said they felt they should be spending even more on print promotion.

What would these respondents print if they had a bigger print marketing budget? More postcards, naturally, along with branded presentation folders, promotional coffee mugs, key chains and flash drives, according to the survey.

Free Advice, Low-Cost ToolsWebsiteBox’s free e-book, “Real Estate Print Marketing for the Digital Age,” has information for those who want to integrate traditional marketing and advertising with digital promotion.

WebsiteBox survey respondents spend $500+ annually on postcards, signs and fliers that

steer customers to websites.


BAKERSFIELD ASSOCIATON OF REALTORS® STAFFWe are here for you, just give us a call!

We have a vaiety of resources and infomation to help make your job a

little easier. Find out how.

Member Services at

635-2300

Jamey LysterManager of Information

Technology (IT)

Cindy KiserManager of Education

and ProfessionalDevelopment

You can’t afford not to advertise with the Bakersfield Association of REALTORS®

Hit Your Target Market!

Call Carol 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 effective and affordable ways. Consider one of our many opportunities.

SPONSORSHIP OPPORTUNITIES:PRICES RANGE PER ACTIVITYn Newsletter

n 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 RATES

Member Advertising Rates

Home Page Ad $125/mo

Entire Site Ad $85/mo

REALTOR® WEBSITE

Member Advertising Rates

Feature Ad (2 week period) $200

Home Page(2 week period) $150

PUBLIC WEBSITE

Eblast: Member Newsletter

1 time run $60/blast

4x consec. run $200/mo

CONNECTIONS NEWSLETTER

Carol DuranCommunications

Design & Development

Cody Brown Member Services

Manager

Loli RuizMember Services

Specialist

Linda CurutchagueMember Services

Specialist

Ginger Edwards Controller-Office

Administrator

Claudia BugarinProfessional Standards

Administrator

Welcome, New Members!

SUCCESS

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


Here are some of the new REALTORS® who joined us in the end of 2014. Give them a big welcome!

NEW REALTORS® IN OCTOBER 2014 Griselda Arambula — Executive Realty & Investments; Heather Bogges — Probity Realty; Deborah Bohan — Keller Williams Realty; Joel Bolus — Coldwell Banker Preferred – Ming; Jose A Ceballos — Epic Realty Network; Richard Crockett — Dave Long Realty; Gerardo Diaz de Leon — Tholco Real Estate Group; Rajvir Gill — Lion Group; Sara Hurley-Worthing — RE/MAX Golden Empire; Rodney Jones — Rodney Jones, Broker; Madonna Lang — Watson Realty, ERA; Arlene Martinez — RE/MAX Magic; Macy Meert — Keller Williams Realty; Elizabeth Mijangos — Avance Realty; Patricia Rolin — My Realty; Ross Turner — Keller Williams Realty; Nancy Venable — Urner Realty; Robert Wallace — RE/MAX Magic; Joseph Grant Wong — Miramar International - Mill Rock; Tian Yang — Watson Realty, ERA

NEW REALTORS® IN NOVEMBER 2014 Ken Anderson – Tholco Real Estate Group; Sameer Bhaiji – Coldwell Banker Preferred–Ming; David Bird – Cleta Bird Realty; Norma Chavez-Duran – Forward Real Estate Group; Lynette Gamez – Scott Tobias Real Estate; Shawn McQuilliams – Coldwell Banker Preferred – Ming; Jessica Nunez – Alliance Investments Real Estate; Nicole Nunez – RE/MAX Magic; Michelle Ulrich – Coldwell Banker Preferred – Coffee

NEW REALTORS® IN DECEMBER 2014 Windy Alderete — Tholco Real Estate Group; Savanah Brinsfield — Tholco Real Estate Group; Gary Carruesco II — Miramar International – Coffee; Guadalupe Chavez — Castle & Cooke; Danielle Pulos Cox — Miramar International – Downtown; Javier Esparza — Miramar International – Panama Lane; Grant Frick — Watson Realty, ERA; David Lofy — Watson Realty, ERA; Ruben Rincon — Magic Real Estate; Alona Sardoff — Scott Rivera Real Estate; Christopher Smith — Miramar International – Mill Rock; Carissa Thomas — Coldwell Banker Preferred – Westwind

new realtors® october 2014

new realtors® november 2014

new realtors® december 2014


Spread the word! The Arts Contest is our way of helping students in our community understand the importance of Fair Housing in a fun and creative way. We’d love to get the word out to any and all of the teachers you may know.

Teachers with award-winning entries will receive all of the net proceeds from this event. The 2014 Fair Housing Student Arts Contest was a great success and with the support of sponsors, 19 teachers were awarded gift cards to use toward educational materials for their classrooms.

Your help in getting the Arts Contest information distributed to the teachers and after-school programs is a great part of the

success of the Arts Contest.

DEADLINE FOR ENTRY SUBMISSION:APRIL 10th

You will find the following information on our website ready to download and distribute. Help get teachers involved!n Rules and guidelines for each Teachern Letter to Teachersn Recommended Fair Housing lesson plan, if needed

If additional materials are needed, please feel free to contact the Equal Opportunity/Fair Housing Committee. We are here to help make this a fun and educational

experience for all students.We encourage students to express

their creativity through the arts. Last year we had 281 art submissions, and we’d love to have more this year! Your interest in the 2015 Fair Housing Students Arts Contest is a big part of this. Reach out to the Art Instructors from Kindergarten through 12th grade encouraging their classroom participation.Help us spread the word about our 2015 Fair Housing Student Arts Contest!

FOR MORE INFORMATION: Claudia Bugarin, 661-635-2311. Cheri Romero, Chairman, 661-342-7309. Lisa Hook, Co-Chairman, 661-301-5472

2 0 1 5 F A I R H O U S I N G A R T S C O N T E S T

ArtsContest2015

ENTRY SUBMISSION:

APRIL 10th


Jenny Cameron, YPN Chair

New Year, New YPN!Get involved with our local Young Professionals Network Group

contribution by YPN Chair

JENNY CAMERONMIRAMAR INTERNATIONAL — NORTHWEST

In 2006, REALTOR® Magazine launched the Young Professionals Network (YPN) as a way to help our younger generation of REALTORS® build a stronger link

within the real estate community. Through networking events, fundraisers, and an engaged YPN committee, we strive to help our members advance their careers and have some fun in the process.

Starting something new is never easy; it takes careful thought, planning and implementation. I can appreciate all the time, energy and efforts that those before me have given to creating the Bakersfield Chapter of the Young Professionals Network.

As each year passes, we re-evaluate and

strive to bring value to our members. This year we are bringing you something brand new! For starters, we will hold monthly Lunch & Learn sessions, and have worked hard on topics that we think you will enjoy. On our agendas are topics such as prospecting, escrow, and business planning, to name just a few.

We are also going to be taking a group of REALTORS® on a 3-day trip to Sacramento for Legislative Day. This is our most exciting

event of the year. It is an opportunity to hear from our industry leaders, lobbyists and legislators about the latest issues affecting the real estate industry. We will also enjoy a legislative and welcome reception, and a private lunch with our legislators. Better yet – it’s at no expense to the first time legislative day attendees! Travel, lodging and some meals will also be paid.

The YPN will still host the annual softball game; and yes, we still have a mixer on the agenda. It’s an exciting year and we are excited about what’s to come.

If you are interested in joining the YPN as an advisory member, we have space available. Just contact Cody Brown at 635-2300 or [email protected].

SAVE THE DATES: Go to www.goo.gl/UarHRn to download the YPN calendar of events for 2015.

ADVISORY COMMITTEE n Jenny Cameron, Chair Miramar International – Northwestn Ashley Weaver — Vice Chair Karpe Real Estate Center n Derek Sprague — Sprague Real Estate Groupn Aileen Saucedo — Vasquez & Associates Real Estaten Scott Knoeb — Frontier Real Estaten Jeff Aguilar — Bank of American Sheri Anthes — 2015 President, Bakersfield Association of REALTORS®

Coldwell Banker Preferred, Bakersfieldn Linda Jay, RCE, Chief Executive OfficerBakersfield Association of REALTORS®

n Cody Brown, Staff Liaison, Bakersfield Association of REALTORS®

(l to r) Scott Knoeb , Jeff Aguilar , Jenny Cameron, Ashley Weaver and Derek Sprague

* Figures from Single Family Homes Only. Statistics were run on January 30, 2015.

0

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ACTIVE CONTINGENT PENDING SOLD

2014

2013

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2014

2013

NOVEMBER 2014

November 2014 2013% Year over Year

ChangeDecember 2014 2013

% Year over Year Change

Active 1,692 1,428 18.5% Active 1,634 1,383 18.1%Contingent 260 423 -38.5% Contingent 244 415 -41.2%Pending 958 1,005 -4.7% Pending 863 866 -0.3%Sold 502 569 -11.8% Sold 535 503 6.4%Total Volume Closed $111,302,630 $117,235,124 -5.1% Total Volume Closed $115,897,978 $104,665,236 10.7%Median Sales Price * $207,000 $184,250 12.3% Median Sales Price * $204,000 $190,000 7.4%Average DOM * 48 38 26.3% Average DOM * 48 43 11.6%




Sold 427 496 -13.9% Sold 474 413 14.8%

Total Volume Closed $97,472,425 $106,138,398 -8.2% Total Volume Closed $105,336,283 $92,459,584 13.9%

Median Sales Price * $212,250 $190,000 11.7% Median Sales Price * $207,000 $208,100 -0.5%

Average DOM * 47 36 30.6% Average DOM * 49 41 19.5%

* Single Family Only

All AreasDECEMBER 2014

All AreasNovember 2014 2013


December 2014 2013% Year over Year

Change





Sold 427 496 -13.9% Sold 474 413 14.8%





Bakersfield








Sold 427 496 -13.9% Sold 474 413 14.8%





Bakersfield








Sold 427 496 -13.9% Sold 474 413 14.8%





STATE OF THE2013 Compared to 2014 by MLS Area

Bakersfield uses the following Zip Codes: 93301, 93302, 93303, 93304, 93305, 93306, 93307, 93308, 93309, 93310, 93311, 93312, 93313 93314.

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HOUSING MARKET


2014 2013 2014 2013 2014 2013 2014 2013 2014 201310 221 203 $30,030,216 $27,043,147 $138,788 $137,642 47 45 97.73 98.25

21 147 142 $12,655,032 $11,389,119 $89,441 $84,708 46 46 95.97 96.60

22 222 204 $33,461,907 $27,537,633 $154,340 $139,309 37 34 98.57 99.04

23 23 21 $5,864,100 $6,698,388 $265,277 $321,419 61 48 99.39 95.84

31 255 244 $32,464,599 $28,851,412 $127,828 $118,243 49 40 97.68 98.03

32 517 540 $85,771,991 $77,732,492 $171,647 $146,480 46 43 97.98 98.59

33 186 184 $38,372,864 $31,500,343 $212,131 $178,355 50 45 98.75 99.76

34 64 107 $18,164,647 $31,003,748 $292,855 $293,540 60 54 98.59 97.66

41 130 120 $15,528,781 $11,356,624 $121,624 $96,553 36 46 98.13 100.16

42 110 138 $16,026,550 $17,673,496 $147,213 $133,992 53 38 97.42 100.40

43 11 11 $1,712,500 $1,644,525 $154,722 $149,502 51 28 97.38 96.81

51 562 647 $78,602,597 $81,989,622 $144,585 $132,057 37 38 99.34 100.43

52 1343 1243 $261,584,490 $219,736,130 $205,264 $184,880 42 38 98.74 99.86

53 715 725 $221,007,444 $213,027,979 $312,288 $295,357 45 37 98.39 99.04

54 15 4 $4,322,816 $899,050 $288,188 $224,763 31 90 98.94 97.93

61 201 205 $50,544,940 $48,208,466 $252,175 $235,404 39 38 98.38 100.25

62 989 1013 $290,102,966 $271,564,311 $294,413 $268,248 39 35 98.53 100.32

63 392 352 $136,128,640 $114,335,452 $349,604 $327,324 53 38 98.68 99.86

64 18 17 $6,390,022 $5,408,591 $366,590 $318,152 32 56 94.52 100.99

80 109 91 $24,294,450 $16,750,692 $232,579 $189,690 73 75 97.75 96.86

81 23 16 $4,690,000 $2,636,500 $211,545 $163,767 176 203 92.04 92.10

82 24 35 $1,821,887 $2,772,679 $89,728 $90,014 66 80 93.42 94.23

83 33 41 $5,002,300 $4,686,884 $151,093 $122,808 60 73 95.60 96.31

91 67 73 $7,571,340 $8,231,864 $113,005 $113,845 41 56 98.10 98.25

92 10 6 $3,894,500 $1,891,000 $404,944 $368,200 56 58 95.81 98.35

93 6 24 $637,000 $3,040,896 $106,167 $126,704 61 48 93.68 95.49

94 20 19 $3,209,532 $2,196,501 $187,000 $127,107 44 48 98.94 99.83

95 231 206 $38,144,947 $30,043,750 $167,575 $145,843 49 36 98.57 98.33

96 148 150 $16,294,618 $12,747,715 $113,002 $87,646 65 51 97.38 96.79

98 180 241 $27,583,313 $36,425,286 $153,241 $150,148 51 48 96.77 97.75

99 143 158 $30,548,130 $34,451,980 $219,966 $227,471 75 71 95.11 96.59

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

2014 YEAR-TO-DATE STATS

* Figures from Single Family Homes Only. Statistics were run on January 30, 2015.

1st Qtr 2014 1st Qtr 2013 2nd Qtr 2014 2nd Qtr 2013 3rd Qtr 2014 3rd Qtr 2013 4th Qtr 2014 4th Qtr 2013New Listings 2,643 2,371 2909 2,680 2,894 2,722 2,190 2,197 Contingent 714 949 711 946 733 533 612 Pending 1,851 1,859 2074 2,005 1,888 1,882 1,608 1,562 Sold 1,527 1,681 1,952 1,928 1,960 1,870 1,676 1,701Total Volume Closed $305,762,885 $294,579,396 $405,361,006 $371,666,913 $424,896,405 $374,273,087 $366,408,823 $342,956,879Median Sales Price * $188,000 $160,000 $198,000 $179,900 $205,000 $188,950 $205,000 $182,000Average DOM * 49 45 45 43 43 37 47 40Average Sale Price/SqFt * 120.50 103.83 124.14 111.99 128.68 116.75 128.64 120

2014 QUARTERLY STATS


New Member Benefits in 2015C.A.R. is offering more free benefits to help you in your real estate business

CALIFORNIA ASSOCIATION OF REALTORS®

As a C.A.R. member, you are entitled to numerous member benefits. 2014 had some great additions and 2015

is already looking like a banner year. Save time, save money, build your network and increase your sales with the benefits below.

C.A.R’s Down Payment Assistance ResourceDown payment assistance programs are easier to reach than you thought. Most real estate professionals and home buyers aren’t aware of the wide range of down payment programs that could make buying more affordable. According to Down Payment Resource’s Quarterly Homeownership Program Index™, 91.7 percent of the nation’s homebuyer programs are already funded and available to eligible buyers. In California alone, there are more than 300 homeownership programs available, including direct down payment and closing costs assistance as well as mortgage credits of up to $2,000 for the life of the loan. More than one in four are for repeat home buyers. Visit downpayment.car.org to see if your clients qualify. Call the Finance Helpline at (213) 739-8383 for any questions regarding this valuable member benefit.

Homeowner Legislative Facts (HLF)Keep your contacts updated with the political practices within our state. TheHomeowner Legislative Facts (HLF) is a library of articles that you can share with

your clients using social networking or your marketing materials. The content focuses on proposed legislation or government regulations that impact homeowners, buyers and sellers. Stay informed on the policies that affect your industry, state and economy. Find HLF at car.org/governmentaffairs/HLF.

ClientDIRECT®

It’s time for an email newsletter that is a reflection of your style and knowledge. Introducing the customizable and easy to use ClientDIRECT®. With a fresh new look and plenty of upgrades, including videos, infographics and more, ClientDIRECT® is the perfect marketing platform to keep you connected to your contacts, while introducing you to new ones. Keep your contacts engaged and be the real estate expert that your network craves by sending ut a ClientDIRECT® newsletter, updated with what’s going on in their city, what’s happening in the real estate industry, and most importantly, featuring your listings. Other companies charge as much as $300 for his service. As a C.A.R. member, we are offering this marketing platform to you for FREE. Stay in touch with your clients each and every month and watch as you make new contacts and create more business with ClientDIRECT®. Sign up today at www.ClientDIRECT.net.

zipforms® Mobile Web Edition with TouchSign™zipForm® Mobile Web Edition with TouchSign™ gives you access to your

zipForm® account from any tablet or smartphone. You can quickly add, edit and view forms to existing transactions, create new transactions, apply templates and even send off for digital signatures! With TouchSign™, you can have clients sign directly on your tablet! As a FREE member benefit in 2015, zipForm® Mobile Web Edition with TouchSign™ will easily keep you connected to important contracts anywhere your schedule takes you! Visit www.car.org/tools/zipform/mobile to learn more.

“Dear Homeowner” PostcardsAt C.A.R. we have seen the impact REALTORS® have by staying engaged and informed in the electoral process. We want to help you do the same for your clients! We gladly provide REALTORS® with “Dear Homeowner” postcards that can be placed in new homeowner packets for your clients. This free closing gift welcomes the home buyer into their new home and gently reminds them to register to vote now that they have moved. The cards come already assembled in a professional envelope with a California voter registration card. We offer cards in both English and Spanish to meet your client’s diverse language needs. Simply contact Field Representative Robyn Spiller [email protected] to request cards.Reprinted with permission from the CALIFORNIA ASSOCIATION OF REALTORS®, copyright 2015, all rights reserved.


Online House Shopping is Addictive!Buyers are using online technology during the home-buying process

BY TRAVIS SAXTON, REAL TRENDS

It’s safe to say we’re all a touch (well, maybe a little more than a touch!) addicted to our technology.

Homebuyers are no different.A recent independent poll commissioned by Discover Home Loans shows 89% of homebuyers use some form of online technology to help them with the home-buying process. In fact, 76% of buyers interviewed said technology made them a smarter homebuyer, and 69% said technology gave them more confidence.A Better BuyerBuyers who use technology during the home-buying process feel smarter, more confident and more satisfied.n Almost half of all homebuyers (47%) reported that using technology helped them save money.n As many as 92% of those surveyed said that technology helped them save time.n A significant amount of buyers (90%) reported an overall positive experience.Technology Use is AddictiveWhile it’s no surprise that 9 out of 10 buyers (89%) use online resources during the home-buying process, two-thirds say looking at online property listings has reached the point of becoming addictive.The top three ways people use online resources in the home-buying process are:n Eighty-three percent (83%) look at real estate listings.n Seventy-two percent (72%) use online maps to explore neighborhoods.n Seventy-one percent (71%) use email, apps or websites to submit documents to lenders.Among those who look at online listings, 78% say they spend time at

work looking at properties. Nearly all technology users surveyed (93%) say technology allows them to do things remotely that they otherwise would have to do in person.“Buyers are clearly looking to play a larger role in the home-buying process, and are turning to the latest technologies to find the information they need,” says TJ Freeborn, Senior Manager of Customer Experience at Discover Home Loans.“Technology is a great resource for buyers because it gives them access to online property listings and allows them an opportunity to preview homes. They may also find reviews on real estate agents and mortgage lenders. It’s truly changing the home-buying process, and the result is a more confident, informed buyer.”The Impact of Technology on AgentsWhile the real estate agent’s role remains critical, technology has become more important to buyers, and has integrated the work of real estate agents and buyers in the home-buying process. Understanding the more informed and confident homebuyer is essential for an effective real estate agent-buyer relationship.n The real estate agent’s role is still critical, as 83% of respondents reported working with real estate agents to buy their homes.n Seventy-four percent (74%) of homebuyers feel it’s important for their real estate agents to be tech savvy. In fact, most (82%) say that their agent is tech savvy.n In communicating with agents, nearly all (98%) communicate via phone calls.n Of buyers working with agents, 42% surveyed say that they did most of the work to find properties initially.

BAKERSFIELD ASSOCIATION OF REALTORS® TUG CLASSES Learn how to use technology in your real estate business. Call Cody at 635-2300 to sign up for classes now!

The national survey of 1,003 recent homebuyers was commissioned by Discover Home Loans and conducted by Versta Research. The sample was carefully balanced and weighted using American Housing Survey and NAR data to ensure an accurate representation of homebuyers by region, age, marital status and first-time vs. repeat homebuyer status.

Reprinted with permission from REAL Trends, copyright 2015, all rights reserved.


Easy Mistakes

Homeowners Make on

their TaxesDon’t rouse the IRS or pay

more taxes than necessary — know the score on each home

tax deduction and credit.

9


G.M. FILISKO | HOUSELOGIC

As you calculate your tax returns, be careful not to commit any of these 9 home-related tax

mistakes that tax pros say are especially common, can cost you money, or draw the IRS to your doorstep.

1: Deducting the wrong year for property taxes

You take a tax deduction for property taxes in the year you (or the holder of your escrow account) actually paid them. Some taxing authorities work a year behind — that is, you’re not billed for 2013 property taxes until 2014. But, that’s irrelevant to the Feds.

Enter on your federal forms whatever amount you actually paid in that tax year, no matter what the date is on your tax bill. Dave Hampton, CPA and Tax Department Manager at the Cincinnati accounting firm of Burke & Schindler, has seen homeowners confuse payments for different years and claim the incorrect amount.

2: Confusing escrow amount for actual taxes paid

If your lender escrows funds to pay your property taxes, don’t just deduct the amount escrowed. The regular amount you pay into your escrow account each month to cover property taxes is probably a little more or a little less than your property tax bill. Your lender will adjust the amount every year or so to realign the two.

For example, your tax bill might be $1,200, but your lender may have collected $1,100 or $1,300 in escrow over the year. Deduct only $1,200 or the amount of property taxes noted on Form 1098 that your lender sends. If you don’t receive Form 1098, contact the agency that collects property tax to find out how much you paid.

3: Deducting points paid to refinance

Deduct points you paid your lender to secure your mortgage in full for the year you bought your home. However, when you refinance, you must deduct points over the life of your new loan.

For example, if you paid $2,000 in points to refinance into a 15-year mortgage, your tax deduction is $2,000 divided by 15 years, or $133 per year.

4: Misjudging the home office tax deduction

The home office tax deduction is complicated, often doesn’t amount to much of a deduction, has to be recaptured if you turn a profit when you sell your home, and can pique the IRS’s interest in your return.

But, there’s good news. There’s a new simplified home office deduction option if you don’t want to claim actual costs. If you’re eligible, you can deduct $5 per square foot up to 300 feet of office space, or up to $1,500 per year.

5: Failing to repay the first-time homebuyer tax credit

If you used the original homebuyer tax credit in 2008, you must repay 1/15th of the credit over 15 years.

If you used the tax credit in 2009 or 2010 and then within 36 months you sold your house or stopped using it as your primary residence, you also have to pay back the credit.

The IRS has a tool you can use to help figure out what you owe.

6: Failing to track home-related expenses

If the IRS comes a-knockin’, don’t be scrambling to compile your records. File or scan and store home office and home improvement expense receipts and other home-related documents as you go.

7: Forgetting to keep track of capital gains

If you sold your main home last year, don’t forget to pay capital gains taxes on any profit. You can typically exclude $250,000 of any profits from taxes (or $500,000 if you’re married filing jointly).

So if your cost basis for your home is $100,000 (what you paid for it plus any improvements) and you sold it for $400,000, your capital gains are $300,000. If you’re single, you owe taxes on $50,000 of gains.

However, there are minimum time limits for holding property to take advantage of the exclusions, and other details. Consult IRS Publication 523. Note that high-income earners could get hit with an additional tax.

8: Filing incorrectly for energy tax credits

If you made any eligible improvements in 2014, such as installing energy-efficient windows and doors, you may be able to take a 10% tax credit (up to $500; with some systems, your cap is even lower than $500). But, keep in mind, it’s a lifetime credit. If you claimed the credit in any recent years, you’re done.

Installing a solar electric, solar water heater, geothermal, or small wind energy system can also make you eligible to take the Residential Energy Efficient Property Credit.

To claim the deduction, you have to use the complicated Form 5695, which can mean cross-checking with half a dozen other IRS forms. Read the instructions carefully.

9: Claiming too much for the mortgage interest tax deduction

Taxpayers are allowed to deduct mortgage interest on home acquisition debt up to $1 million; plus, they can also deduct up to $100,000 in home equity debt.

This article provides general information about tax laws and consequences, but shouldn’t be relied upon as tax or legal advice applicable to particular transactions.


Judy Miller

contribution by

JUDY MILLERCOLDWELL BANKER PREFERRED

Judy Miller, Coldwell Banker Preferred, coordinates the involvement of the Christian Real Estate Fellowship Group to sponsor Christmas for Seniors, a program started several years ago by Sandy Morris from the Bakersfield Police Department.

Christmas for Seniors delivers over 1800 packages to needy, low-income seniors throughout Kern County. This is truly a community-wide project involving business employees who purchase requested gifts for recipients, students in our schools who make Christmas cards and wrap boxes, volunteers who wrap and deliver gifts, as well as individuals and businesses who donate miscellaneous items and money

for gift cards. Each needy senior receives a requested gift, a $25 gift card for Walmart or Target, books, puzzles, socks, as well as a box full of toiletries.

Judy has been involved in this project for 5 years now, with the Christian Real Estate Fellowship Group taking on this project 2 years ago. Rather than gathering for their monthly meeting in December, the Fellowship Group meets to wrap gifts during their normal meeting time. This

past December, there were 25 REALTORS® working on the project by donating, wrapping and delivering gifts, and offering cash contributions.

Since Miller is a “senior”, her heart went out to those less fortunate and in need. Many are WWII veterans or surviving spouses with only their Social Security to live on. Many are neglected by family or have no family and just struggle to survive. “To see the joy on their faces when you walk up to their door to deliver Christmas gifts is very rewarding, but it also breaks your heart.”

For many of the seniors, it is the only gift they will receive at Christmas. It’s important for Judy to show these needy seniors that someone does care about them – showing them God’s Love in action. They are so appreciative and thankful. Bakersfield truly cares about these needy seniors – evidenced by the over 3,000 people who help with this community project.

Judy and her husband Frank (of 47 years) deliver gifts to some of the ‘less’ desirable areas of town. But, after seeing the looks on the faces of these seniors, they know it’s all worth the effort. This project takes a lot of people to accomplish its goals. As the saying goes, “many hands make light work”. That’s what makes this project “work”.

ABOUT JUDY MILLER, REALTOR®

Judy has been a full-time REALTOR® with

Members Give of their Heart, Time and ResourcesIt’s the heart of giving that finds its way into our community!

It’s evidenced by many of our members who are always looking for ways to give back

the heart of giving in 2014

Christian Real Estate Group take a snapshot with January’s guest speaker Holly Culhane.

Christian Real Estate Group gather for a photo at Glenwood Gardens before wrapping gifts.


Brian Ostrovski

Coldwell Banker Preferred since 1998, and serves on several committees for the Bakersfield Association of REALTORS®. She and her husband Frank enjoy traveling and spending time with family. They have a son, Keith, daughter-in-law Kara, and two grandchildren, Kody (18) and Kassidy (15). They are members of the First Assembly of God Church. Judy has been on the Board of Directors for Kern County Youth for Christ/Campus Life for over 20 years. She started the Christian Real Estate Fellowship in 2012, which meets monthly.

contribution by

BRIAN OSTROVSKIMIRAMAR INTERNTIONAL REAL ESTATE

In 2014, Brian Ostrovski decided that part of the commissions he received from the homes he sold as a REALTOR® would go to the purchase of toys for the U.S. Marine Corps-sponsored Toys for Tots program. The U.S. Marine Corps collects new, unwrapped toys during the months of October, November and December of each

year, and distributes those toys as Christmas gifts to the less fortunate children in the community.

After growing a beard, Ostrovski’s wife Debi said, “Why not be Santa because you look like him?” Brian thought, ‘Why not? Let’s buy toys for Toys for

Tots and make sure the toys stay here in Bakersfield. We want children here in our community to have a great Christmas.’

Ostrovski’s “Christmas Santa” was able to contribute over $5,000 in toys. The toys were purchased at the East Hills Target store, who also gave a 5% discount on the toys purchased for Toys for Tots.

Ostrovski’s total contribution came from homes that he and his wife sold in 2014, in-home Santa visits in the community, as well as donations from clients, friends and local REALTORS®, including Jeff Jackson, Brian Hicks and others who wanted to remain anonymous.

ABOUT BRIAN OSTROVSKI, REALTOR® Ostrovski was born and raised in Bakersfield and graduated from Bakersfield High School in 1989. He began his career in the Real Estate industry in 2001, when he became a Loan Officer for a local lender, until 2002 when he started working to become a Real Estate Appraiser. Brian was a Real Estate Appraiser from 2002-2009, opening his own appraisal office. In 2007, he obtained his Real Estate Salesperson’s license. One year later, he opened his own Real Estate Brokerage, and has helped many people realize the American dream of owning their own home.

Brian Ostrovski, aka Santa Clause, takes a moment from his Christmas shopping to snap a photo with Target employees and a few members of the U.S. Marine Corps, Toys for Tots representatives.

MISTY JEFFRIESCHICAGO TITLE

Misty Jeffries, our 2014 Affiliate of the Year, has a rich history of service as a Community Volunteer. One of her passions is serving on the Board of Directors of the Salvation Army, a position she has held since 2009. She is particularly devoted to serving meals to the elderly at the Sally’s Place, a senior citizen feed program administered by the Bakersfield and Kern County Salvation Army, which provides a nutritional hot meal to the elderly and senior citizens twice a month. Included in this hot meal is a bag of groceries, which are distributed at the end of each meal. When our Association launched a new “Community Spirit” Committee in 2012, Misty made a recommendation that we adopt “Sally’s Place” as one of our programs. The program was immediately embraced by a group of our REALTORS® who continue to faithfully prepare and serve meals to about 50 seniors on the 2nd and 4th Tuesday of every month. Members of the committee have commented how heartwarming it is to see the deep appreciation on the faces of these precious individuals. “For some, this is the only hot meal they will have that week”, states Misty.

Heart of GivingThe

Taco Salads are being prepared for Sally’s Place

realtors® give back

Misty Jeffries

I N A N U T S H E L L QUICK READS FOR REALTORS®

Obama ToutsLower FHA PremiumsNATIONAL ASSOCIATION OF REALTORS®

President Barack Obama in his State of the Union speech recently pointed to a cut in the annual FHA insurance premium as the kind of “middle class economics” initiative he wants to focus on in the next two years. Obama talked with NAR President Chris Polychron last week about the premium reduction. Read about the speech, and hear Polychron discuss his meeting with Obama.

FHA Annual Premium Reduction FinalizedMEGAN BOOTH | NATIONAL ASSOCIATION OF REALTORS®

At a speech held this year on January 8th in Phoenix, Arizona and attended by NAR President Chris Polychron, President Obama announced that the Federal Housing Administration (FHA) would reduce FHA annual mortgage insurance premiums (MIP) by 50 basis points. This reduction is a victory for the National Association of REALTORS® whose members have called for lower fees on FHA loans since early 2014.

In April 2014, NAR raised concerns to Commissioner Galante about costly mortgage insurance premiums. NAR led a coordinated effort with other advocacy groups and members of Congress to achieve this victory. NAR estimates that a 50 basis point reduction in the annual MIP from 1.35% to 0.85% would price-in an additional 1.6 million to 2.1 million renters, along with many trade-up buyers, resulting in 90,000 to 140,000 additional annual home purchases.

The premium reduction will be effective for case numbers assigned on or after January 26, 2015. FHA will temporarily approve cancellation requests for active FHA Case Numbers within 30 days of the effective date of this ML in order to allow borrowers already in the loan pipeline to take advantage of the lower rates. Full details of the premium changes are published in Mortgagee Letter 2015-01. (www.portal.hud.gov/hudportal/documents/huddoc?id=15-01ml.pdf

Tax Relief ExtendedNATIONAL ASSOCIATION OF REALTORS®

As part of the Tax Increase Prevention Act of 2014 (HR 5771), through the end of 2014, Congress has extended federal law excluding from income the cancellation of mortgage debt on a principal residence. While welcome news, this extension will not have a great impact on California taxpayers since purchase money debt (money used to purchase a principal residence or a refinance of such debt) is nonrecourse debt in California, and thus already excluded from income under both California and federal

law. Federal law uses state law to determine whether debt is recourse or nonrecourse. Such forgiven debt, while not income, is considered to be capital gains. Under existing law, homeowners can exclude from capital gains treatment up to $500,000 for joint tax filers and $250,000 for those filing separate returns.

CALBRE Guidance - Emails Now Required and Team NamesNATIONAL ASSOCIATION OF REALTORS®

Contact Information: All licensees must now provide email addresses to the California Bureau of Real Estate (CalBRE), according to an Advisory regarding Assembly Bill 2540 (AB 2540). The bill requires that examination and licensee applicants, as well as current licensees, provide CalBRE with current contact information, including current office or mailing address, current telephone number, and current email address. AB 2540 also requires that licensee applicants and current licensees must notify CalBRE within 30 days of making any change to their contact information. The Advisory clarifies that CalBRE is not required to publish email addresses or telephone numbers, and also states that any examination or license application not containing the required contact information will be considered incomplete, resulting in processing delays.

Salesperson Owned Fictitious Business Names/Team Names: The second CalBRE Advisory concerns salesperson owned fictitious business names (FBN) and team names. Assembly Bill 2018 allows brokers to permit salespersons licensed to them to, on behalf of the broker, to apply for a Fictitious Business Name (FBN), deliver to CalBRE an FBN application signed by the salesperson and the broker, and to pay for and maintain the ownership of the FBN. To facilitate this process, CalBRE has issued a new form: Add/Cancel Salesperson Owned Fictitious Business Name (RE 247). The form also has instructions clarifying that Team Names meeting the criteria outlined in the instructions are not FBNs: two or more licensees work together as part of a “team”, “group”, or “association”; the team name includes the surname of at least one of the team, group, or association members; and, the name does not include terms such as broker or brokerage. However, when a team name is used in advertising, including print or electronic and “for sale” signs, it must (1) include the licensee’s name and license number, (2) include the responsible broker’s identity, and (3) not imply the existence of a real estate entity independent from the responsible broker.

Mortgages Seized by Cities Won’t Be Backed by FHA or Other Federal GuaranteesNATIONAL ASSOCIATION OF REALTORS®

A controversial plan to use a municipality’s eminent domain powers to seize properties in default has suffered a severe setback. FHA, Ginnie Mae, and HUD have no funds now to insure, securitize or establish a federal guarantee of any mortgage or mortgage-backed security which refinances or replaces a mortgage subject to eminent domain condemnation or seizure by a state, municipality or other political subdivision of the state. The funding to allow such federal guarantees was removed in the Fiscal Year 2015 Omnibus Appropriations bill. This should make it much more difficult to finance or resell any such securities under these programs. Such mortgage seizure programs were proposed by some companies who promised municipalities a portion of the proceeds when the mortgages were resold. Under the program, the defaulting or underwater homeowners would also be allowed to stay in their homes, with the mortgage amount reduced. The City of Richmond had approved a study of the mortgage seizure plans which were being monitored by other cities in California.

New Addenda to the RPA - January 27, 2015NATIONAL ASSOCIATION OF REALTORS®

Due to popular demand, C.A.R. will hold a second webinar addressing several addenda to the revised Residential Purchase Agreement. If you missed the first webinar one week ago, make sure to sign up quickly to attend the second webinar on the same topic scheduled for Tuesday, January 27th from 1:30 p.m. to 2:30 p.m.

Join C.A.R. Attorney Neil Kalin and C.A.R. Attorney Howard Fallman who will be focusing on the following addenda:

Assignment of Agreement Addendum (AOAA) – What Assignment Is and Is NotRepresentative Capacity Signature Disclosure (RCSD) – how to properly sign and demonstrate authority to sign when acting in a representative capacity.

The new Counter Offer forms - Seller Counter Offer (SCO), Seller Multiple Counter Offer (SMCO), Buyer Counter Offer (BCO) – which form to use and when, along with suggestions for keeping track when there are several back and forth counters.

Request for Repair (RR) and Seller Response and Buyer Reply to Request for Repair (RRRR) - how the buyer can use preprinted options in the RR to ask for price


reductions/credits, and Section 1 and/or Section 2 wood-destroying pest clearance, and the seller’s response in the RRRR.

You can sign up for this webinar at www.car.org/legal/live. Space is limited and may fill up fast. You may want to sign up as quickly as you can. As soon as you register, you should immediately receive a confirmation email that you will need to attend the webinar. Don’t forget to log in early on the day of the webinar to make sure you don’t miss out again.

Recent Oil Price Trends and What They Mean for the Housing Recovery SCHOLASTICA (GAY) CORORATON, RESEARCH ECONOMIST | NATIONAL ASSOCIATION OF REALTORS®

Crude oil prices are now trading at slightly below $50/barrel, resulting in steep declines in gasoline prices. As of January 5, 2015, the U.S. Energy Information Administration (EIA) reported that the price of regular gasoline was $2.20 /gallon — the lowest since gas prices peaked to about $4/gallon in May 2011. In its December 2014 Short-Term Energy Outlook Report, the EIA 2015 forecast for gasoline prices was $2.50 per gallon (which now seems on the high side given the developments in January 2015). The EIA also forecasts a savings of $550 per household in 2015.

Lower oil prices mean a lower inflation rate, which pushes down mortgage rates. Based on Freddie Mac’s weekly mortgage survey as of January 8, 2015, the 30-year fixed rate averaged 3.73% and the 15-year fixed rate averaged 3.05%.

At the median home price of $205,300, a 0.75 percentage-point drop in mortgage rates will yield a savings of about $1,000 annually.

The economic and housing recovery in the Midwest and Southern states from North Dakota to Texas has been underpinned by the boom in oil production. The steep price declines may lead to a flattening of revenues. Companies can either make up for the cash requirement by borrowing or issuing shares of stock as they have done since 2011.

Companies may also resort to layoffs, as has been announced by some companies.

The overall impact on employment is not likely to be significant since most of the employment growth is coming from many economic sectors. Of the almost 3 million net jobs created in 2014, approximately 10,000 jobs came from other non-durable goods, which include oil and gas. However, there will be indirect impact to those localities as restaurants and shops will also likely cut back employment.

State economies are also well-diversified. Based on 2014 Q2 data from the BLS, there are 197,121 employed in oil and gas extraction, representing 0.14% of total employment of 138 million. In Texas, the biggest U.S. state oil producer which accounts for about half of the U.S. oil and gas extraction workers, employment in oil and gas extraction accounts for less than 1% of Texas’s total employment. However, the direct effect will be larger in some counties in Oklahoma, Texas, West Virginia, Illinois, Kansas, Utah, and Pennsylvania

What this means for REALTORS®: The

decline in oil prices is generally positive to households by way of the gas savings and lower mortgage payments. These savings will boost consumer spending in other areas; however, there may be some layoffs in oil-producing states.

Already, layoffs have been initiated by service companies like Halliburton and Hercules Offshore. Oil producer ConocoPhillips pared its 2015 drilling budget by deferring drilling in America’s shale developments. Both announcements, made in December, will likely be followed by news of other companies cutting back.

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2015 realtor magazine february march

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