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Best Practices: Tips on a Successful Open House

Posted by Taylor Thompson in Blog, News | 0 comments

Here is the latest in a series of occasional articles on “Best Practices” for NSDCAR members from 2017 NSDCAR President Michael Carunchio.   By Michael Carunchio Open houses can sell homes. Successful REALTORS® know this. It doesn’t matter how attractive the listing if people don’t know about it. Plus, it makes sense to expose your home to the largest possible maximum number of buyers and then attract buyers inside that home for a preview. The more people who look at your property, the better chance you have to sell it at top dollar. You never know who will fall in love with your listing. Here are a few ideas that may help our Association members. -- Make a good impression with a clean-up. A fresh coat of paint and a few new items, such as mailbox or house numbers, can do wonders. You also might want to enhance curb appeal and freshen up the landscaping, trim the lawns, clean the driveway and sidewalks, as well as have the windows washed and carpets cleaned. -- Get rid of clutter, including knickknacks and personal items, such as an animal head on the wall or a photo of the owner with a politician. Also, make sure valuables are secured. Lock up anything that might tempt sticky fingers, such as jewelry, personal electronics, and valuable trinkets. Your goal is for buyers to walk inside and visualize it as theirs. So, temporarily relocate family photos and ditch the children’s crayon drawings on the refrigerator. Also, open up the curtains and blinds and turn on lights in every room to set the mood as cheerful and sunny. -- Remove pets if possible. Dogs, cats and litter boxes should be neither seen, heard or smelled during an open house. If removal is not possible, then keep them confined in a less-trafficked location. For sure, current owners also need to be out of the way. -- Put up signs not only in the front lawn but at nearby intersections that direct visitors to the house. A string of balloons also draws attention. Help people find you. Be sure to follow local sign ordinances. Some municipalities have strict sign ordinances. -- Use social media, including Facebook, Twitter and Instagram. A National Association of REALTORS® (NAR) study found 92 percent of homebuyers use the Internet in their search. And, many house hunters today are using apps to help them find open houses within a certain radius with maps and directions to each one. Realtor.com has a free real estate app for consumers. You never know who outside your circle of friends might stumble across your tweet or Facebook post. So, do some investigating and get your listing included. -- Ask questions and seek feedback. Guests will be glad to tell you their opinion about certain home features, which you can use as selling points. Also, ask how they found out about your open house. Providing light refreshments will encourage guests to linger and engage in conversation. -- Have a leave-behind that guests can take with them. Some REALTORS® will prepare a brochure or flyer with your name and photos of the property, while others will provide information on comparable home sales or school and community factoids. Don’t allow potential buyers to leave empty handed. If you prefer online information, then get an e-mail address or phone number for texting. -- Invite the neighborhood to attend. Even if they’re not looking to move, nosy neighbors might have friends or relatives who are considering a move. Consider the neighbors as your prospecting scouts. Plus, meeting new people could help you find new clients.

Want to serve on a Committee? Are you ready to serve your local Real Estate community?

Posted by Taylor Thompson in Blog, News, Uncategorized | 0 comments

We now have a unique opportunity to serve on committees at NSDCAR.
You can help make an impact and lead the real estate communities in new directions. 
NSDCAR Board of Directors will shortly be making its appointments for several NSDCAR Committees and is currently seeking interested members for these positions.
Selections will be made by the Board of Directors at its November meeting.
We now have a simple and easy to use an online form to apply:

Make Plans Now to Attend `La Noche’

Posted by Taylor Thompson in Blog, News | 0 comments

  It will be an unforgettable experience that you don’t want to miss. NSDCAR will present the “La Noche Installation Gala” on Saturday, Nov. 18, at the luxurious Omni La Costa Resort & Spa in Carlsbad. Bigger and better than ever, this year’s Gala is destined to be the biggest real estate event of the year, as we welcome the 2018 board of directors in this exclusive event and celebrate success in the REALTOR® community with the top producers in the industry. From fresh hand-rolled cigars to one-on-one Salsa dance lessons, this exquisite gathering of love and laughter will delight the senses. Don’t be late. Networking with colleagues and industry peers starts at 5 p.m. All in one place, this will be your opportunity to reconnect with old friends and engage with new friends, raising your profile, expanding your influence, telling your story and generating referrals and greater business. Remember, it’s not what you know, but who you know and who knows you. A festive entertainment lineup will continue during the networking time. The cast of characters will include an illusionist featuring slight-of-hand comedic magic and a caricature artist (all drawings will be free). In just mere moments, the artist will sketch hilarious cartoon pictures of you and your guests for a memorable party favor. In addition, a pair of professional Salsa dancers will mingle with guests, offering personalized free lessons and inviting everyone to learn how to cha-cha-cha, mambo and bomba. The spicy, hot fun will be nonstop. Dinner will begin at 7 p.m. The menu is fabulous. The three-course meal (appetizer, main course, dessert) begins with sweet corn bisque, followed by chipotle-beer braised beef short ribs and tequila lime grilled shrimp skewer, plus queso fresco polenta cakes, squash, slaw and salsa borracha. Dessert options offer a choice of cheesecake or margarita mousse. More details about the menu are available at www.nsdcar.com/lanochemenu/. The program will feature the installation of the 2018 NSDCAR board of directors, including remarks by Carol Farrar, 2018 NSDCAR president. “La Noche is set to be a vibrant evening celebrating diversity among the REALTOR® community,” said Carol. “I enthusiastically encourage everyone to make plans to attend and celebrate our industry and our Association.” Also announced at La Noche will be winners of the marketing video competition. The winning videos will be shown on a large screen. After the speeches, a D.J. will be on hand so you can dance the night away. Standard tickets are priced at $80 per person, which is a tremendous bargain. RSVPs can be made at www.nsdcar.com/lanoche/. Discounted room rates are also available if you want to make the night even more memorable. Pre- and post-event bookings are also available should you wish to make it a weekend getaway. Sponsorship opportunities are still available for this special night. Eight different affordable sponsorship opportunities are currently being offered. This is a prime advertising opportunity to situate your brand in front of other industry professionals and get the attention your brand deserves. More sponsorship information is available at https://impactflow.com/event/la-noche-installation-gala-5055.

NAR Launches Call for Action on Tax Reform

Posted by Taylor Thompson in Blog, Legal Updates, News | 0 comments

NAR today launched a Call for Action to urge REALTORS® to tell federal lawmakers not to harm homeowners as they move forward with plans to reform the nation's tax code. The CFA is expected to run throughout the upcoming REALTORS® Conference & Expo and continue until Congress breaks for Thanksgiving. As a REALTOR you have no doubt heard about tax reform plans from Washington, DC. Now Congress is threatening tax incentives for homeowners, like the mortgage interest deduction and the state and local property tax deduction. These incentives are critical for a strong housing market that creates jobs and builds stable communities. Take action to tell Congress to reform our tax code AND protect middle-class homeowners.

Click Here to Help!

Call for Action Toolkit


C.A.R. 2017 Reports

Posted by Taylor Thompson in Blog, Education, Legal Articles, News | 0 comments


The C.A.R. Reports are a series of reports written by NSDCAR C.A.R. Directors. Three times a year C.A.R. Directors representing the North San Diego County Association of REALTORS® attend C.A.R. Meetings to stay up-to-date on industry updates and changes.

Click on the Topics Below to read the corresponding report:  

YPN Fall 2017 Update

Legal Action Fund Report

MLS Policy Committee Report

Standard Forms

Transaction and Regulatory Report 

Business Technology Report

Tax Report

Legislation Report

Legal Affairs Form 

Federal Committee Report

Housing-Homeownership Report

SPF Report

    Section 1

YPN Fall 2017 Report:

What has the Young Professionals Network been up to this year? CAR YPN had a busy year. The theme of the year was Elevate, Educate and Engage. As the Chair of the statewide committee, it was important to me to thread the theme into the meetings throughout the year by collaborating with other CAR committees like the Education Foundation and the Expo committee. In January we started with the Elevate theme where hosted a panel of YPN current and past Local Association Presidents. Learning how these individuals got into leadership positions early in their careers and what worked best for them as young professionals. In the Spring, we hosted the first ever “How to YPN” workshop where members from local associations got together to discuss topics related to starting a YPN committee as well as how to host successful events and increasing participation through the organization with community-focused events. This workshop was focused around the Educate segment of the theme. Most recently in the Fall, the meetings were held here in our hometown of San Diego. The last part of the theme was Engage which translated into the unconference conference called REBarcamp. What is a REBarcamp? It’s an attendee-driven conference where people got to learn about what interested them most and the agenda was decided the day of the event. We had over 150 attendees and more than 50 topics were submitted, which developed into 24 jam-packed sessions. Some of the topics discussed were, Investing: Setting yourself up for retirement; Video/Photography: How to win the listing and market yourself; Doubling your business from your database. The six hours were filled with learning, connecting and lots of conversations. During the lunch session, we recognized C.A.R.’s Rising Stars and C.A.R. YPN Awards. The winners were the following: Rookie of the Year, Sarah Kenney from Ventura County Coastal AOR Team MVP of the Year, Eric Wu from Orange County AOR Network of the Year, Orange County AOR YPNer of the Year, Anthony Vulin from Beverly Hills Greater LA AOR If you are interested in getting involved with YPN, NSDCAR has their own committee and typically hosts events every other month. Back to the Top   Section 2

Legal Action Fund Report 2017:

Legal Action Fund Trustees - Carolyn D'Agosta

These are the most recent Legal Action Fund Trustees approved filing amicus briefs since the May 2017 meetings. The First Case: Laymon vs.J. Rockcliff, Inc.. A California Court of Appeal compelled arbitration against a seller who sought disgorgement of commission paid to a broker. The case involved the interpreted arbitration clauses in a prior C.A.R. Residential Listing Agreement and RPA agreements of, 2007and 2010. C.A.R. requested the publication of this case since it favored enforceability of arbitration clauses and reinforced the public policy supporting such broad interpretations. The Court granted the petition to publish the case. Second Case:  Jacques Jacobs et al. vs. Coldwell Banker Residential Brokerage Co. A potential buyer was viewing a property that had multiple warnings posted about an empty swimming pool. The plaintiff fell into the empty swimming pool after standing on a defective diving board to look over the fence. The injured plaintiff sued the listing agent. After review of the matter, the Court of Appeal ruled in favor of the listing agent, who had posted multiple warnings about the potentially dangerous condition. The Court reasoned the action of the plaintiff and risks were not foreseeable. C.A.R. requested publication of the case, which was granted. Third Case:  Citizens for Enforcement of Parkland Covenants vs. City of Palos Verdes Estates. The City held property in a uniquely structured homeowner association. Its' Board of Directors decided to sell land to a private party contrary to the CC&Rs. C.A.R. filed an amicus brief supporting the enforcement of the CC & R's, which required processes and voting before selling the land. Fourth Case:  Carol Gilbert, Inc. vs. City of San Francisco Ellis-0' Farrell Parking. This case involved the enforceability of a commission when a final agreement was not entered into but where a tenant that was ready, willing; and able to complete the lease. The court held the commission agreement was enforceable and, if published, this case could have provided guidance after the 2012 RealPro case, which held that the sales price specified in the listing agreement was merely an invitation to submit offers, and a broker who brought the seller a full price offer, was not entitled to commission. C.A.R. wrote a letter brief requesting publication, but the Court declined to publish this case. Fifth Case: Surfrider Foundation vs. Martins Beach.  C.A.R. had previously joined an amicus brief submitted by Pacific Legal Foundation in a case in which the California Coastal Commission determined that putting a gate on a beach access path requires a development permit.  The public had been using the path for beach access.  The Appellate Court ruled that locking a gate and removing signs about the hours a private road is open, requires a permit as a "development", under the Coastal Commission Act.  The Trustees authorized joining the Pacific Legal Foundation's Brief or filing their own letter of support of the Martin's Beach's petition to obtain a hearing before the California Supreme Court. Back to the Top   Section 3

MLS Policy Committee Report

CALIFORNIA ASSOCIATION OF REALTORS Board of Directors MLS Policy Committee Can you hear me now? With the advent of and the increasing popularity of Amazon Alexa products, NAR has proposed a revision to the Model MLS Rules to work in conjunction with  Voiceter Pro, LLC. This would allow consumers to search for properties for sale with a voice command using the Alexa app.  You would still have to send all of the required disclosures directly to the consumer to comply with IDX rules at a later time. Action Item:  Approved by the BOD “That, upon approval by NAR, the CAR Model MLS Rules be revised to adopt NAR’s mandate that delivery of listing information be permitted in IDX via audio devices as set forth in the Issues Briefing Paper and that Staff make any necessary related additional corrective and/or correlating changes to the Model MLS Rules and Model Citation Policy.” You want me to meet you when? It is often the case that an inspector or some other authorized individual wants to meet you at a property but the timing is not convenient.  With this new revision to the Model MLS Rules, you will be allowed to issue temporary lockbox codes to enabled lockboxes that will allow them to enter the property for a specified period of time.  Then the temporary code would expire and could no longer be used. Action Item:  Approved by the BOD “That, upon final approval by NAR, the CAR Model MLS Rules be revised to adopt NAR’s mandatory revisions to the MLS Lockbox Policy, and a discretionary one to enable the issuance of temporary codes, as set forth in the Issues Briefing Paper and that staff make any necessary related additional corrective and/or correlating changes to the Model MLS Rules and Model Citation Policy.” Back to the Top   Section 4

Standard Forms

File Storm 2017; how new forms and revision will affect your business

There are 14 revisions to the standard forms in Zipforms to be released in December 2017. A few of the more notable forms are the Addendum, Residential Listing Agreement, and Statewide Buyer and Seller Advisory (SBSA). Addendum: There will be a section at the bottom of the form indicating that the Addendum has been presented and another section that the Addendum has been rejected. The verbiage at the bottom of the form stated that the parties were agreeing when in some cases the parties were not agreeing on the terms of the Addendum. Residential Listing Agreement: There has been verbiage added notifying the seller that they must disclose any audio or video recording equipment on the premise and that the person accessing the property could be recorded. Main more additional changes were made to the December release. SBSA: A 13th page has been added breaking down all of the sections of the SBSA, the hope is that this will be a time that the buyer can review all of the sections, therefore keeping the initials off the bottom of each page. New Forms POSA: Pre-Occupancy Storage Agreement TEAM Agreement (agreement between sales associates when forming a team.) FOTO: Creates exclusive agreements between broker and photographer to the licensing of the photo for the property. Bed Bug Disclosure Back to the Top   Section 5

Transaction and Regulatory Report

Inspectors, appraisals, and floods, oh my.... CAR has a long-standing love/hate relationship with the Home Inspectors that Clients utilize. There are good ones, and bad ones...and we seldom know what we get until the inspection is conducted. CAR has stood on the side of staying out of the decision to require that Home Inspectors get licensed because we have always believed that they should govern themselves. Assembly Member, Dababneh, however, has put a bill forth requiring that Home Inspectors be licensed General Contractors. CAR is taking a "watch" approach to this bill as it moves through the legislature so that we can remain a part of the discussion and provide our input. Appraisals are taking on a life of their own. You may or may not be aware, that under certain circumstances, Fannie Mae, Freddie Mac, FHA and VA are planning on utilizing "automated valuation models" in lieu of appraisals. Lenders currently use AVM's on portfolio lending. There are reasonably strict guidelines for the use of this AVM, such as 20% down, indexing the minimum threshold for requiring appraisals to 135% of the state's annual median home price and uniformity of subject matter, which means that it will not be used in rural areas. The proponents of this policy believe that it will save consumers more money and will speed up the transaction time. The opponents of the policy are concerned over the ability to counter a low AVM and what happens in a changing marketplace, where prices are rising or falling. Only time will tell. CAR, in conjunction with NAR, supports discontinuing National Flood Insurance Program coverage for excessive lifetime claim properties. These properties exist in a flood zone and have been rebuilt twice before. The property owner would receive a buy-out from the insurance provider, in lieu of another payout. Currently, NFIP brings in $3.5 billion in premiums but the expected claims are $5 billion in a typical year. NFIP has had to borrow from taxpayers to cover the shortfall. This reform will enable the National Flood Insurance Program to continue for the next 5 years. May your days be full of reputable home inspectors, on the mark appraisals and listings that don't need an ark:-) Back to the Top   Section 6

Business Technology

Pssssst!!! Be the first to know about new technology! Key Takeaways:
  • The California Association of Realtors tries to stay ahead of the trend on new and innovative technology for Realtors by hosting the Business Technology forum
  • This report will summarize the three finalists who presented at the forum
  • Make sure to check them out via CAR’s website as more often than not you can use these companies for free as a member benefit
First company: Housestay.com This company offers furnished monthly rentals on an online advertising portal, and they pay a 4% referral fee for all bookings on the property that an agent brings to them. The idea is to benefit the agents, not property managers. This company contracts out for a property manager if the owner doesn’t want to self manage. They are currently only located in LA but they’re ready to launch in 10 other cities. Second company: Bilingual Real Estate Explanation This company creates videos that would be incorporated with zipForm, which would explain the forms and processes in specified languages that the agent gets to choose and send to their client. The idea is to help clients have a clearer understanding of the nuances of the transaction process. This will simplify the process enough for the client to understand, to help with language barriers, and to mitigate risk. Third company: Instavid This company helps you create a video touch greeting that is automatic and can be sent via text. You can incorporate custom logos and music. For example, you could set a schedule to send automatic videos to people after they attend your open house. Videos are hosted on Vimeo. Back to the Top   Section 7

Tax Report 

TAXATION AND GOVERNMENT FINANCING COMMITTEE San Diego October 12th, 2017 1.Little Red Riding Hood Can’t Visit Grandma Because Grandma Has No Cottage!! What can we do about it? The committee considered whether C.A.R. should sponsor legislation to have a bond put on the ballot for funding the building of “Auxiliary Dwelling Units.” Discussion was the cost of bonds, the road blocks cities have put up despite state regulations, and even thinking about structuring a bond to mirror CalVet financing. Granny flats, auxiliary units, guest house, or whatever you call the structure, building them is one of the potential ways of easing the house shortage a little. More information can be found at the briefing paper at Another briefing paper addressing the issues raised is to be presented in January. http://www.car.org/meetings/carmeetings/committee-materials-archive/2017fall/Taxcover/ and click on State Funds For Building Auxilliary Dwelling IBP 2.Cities putting their hands in your pocket again? Some cities are trying by billing licensees for a business license if you have listed or sold a property or maintain an office in your home in that city …despite where your actual office is and your broker pays for a business license calculated on how many licensees work in that office. C.A.R. will form a work group to find out how widespread this practice is becoming and whether some areas are more aggressive than others. Based on the report, the committee will consider its options. The information we were given to this point can be found at http://www.car.org/meetings/carmeetings/committee-materials-archive/2017fall/Taxcover/ and click on Business License Taxes IBP and SB 247 Professional and Business Licenses IBP. 3.Talk is cheap… except when you’re dealing with issues that affect real estate, our business and our clients. The committee has asked for money to hire legal experts to review court decisions that could have negative impact on how cities, schools, etc. levy taxes on parcels. A briefing paper was provided for this meeting and now more information is needed before the committee can take any action. Want more info, go to http://www.car.org/meetings/carmeetings/committee-materials-archive/2017fall/Taxcover/ and click on Uniform Application of Parcel Taxes IBP. Back to the Top   Section 8

Legislation Report

LEGISLATION COMMITTEE San Diego October 12th, 2017 1.Remember Tom Sawyer Painting A Fence? He really didn’t. He got everybody else to do the work. In this meeting, most of the work was business centered on other committee’s work. You should read the Homeownership report and/or the information at http://www.car.org/meetings/carmeetings/committee-materials-archive/2017fall/HOHCcover/ and click on Housing Element Reform IBP to find out about the legislation C.A.R. will SUPPORT to penalize cities and counties that fail to implement their housing element by restricting access to state funds…the housing shortage is a major concern of C.A.R. The Transaction and Regulatory Committee proposed a watching a bill that would require Home Inspectors to be licensed as general contractors. The briefing paper is at http://www.car.org/meetings/carmeetings/committee-materials-archive/2017fall/TransCover/ click on Agenda and go to page 2 III.A.1. Home Inspectors. 2.Is Real Estate Going Retro? I guess you can say that. Just when everybody was getting use to CalBRE, we will be DRE, the Department of Real Estate once again. It’s good news/bad news…the good news is that it will be a department again with funding that will allow hiring more investigators and upgrading programs and technology…the bad news for the bad players is that it will have the funding and there will be more resources to pursue complaints and those bad players. Back to the Top   Section 9


San Diego October 13th, 201 1.Instant Gratification Not Fast Enough?? Try C.A.R. Legal’s Quick Guides. On one page you get a nuts-and-bolts summary of the topic. If you want or need more information, go to the Q & A for that issue…just a few of these handy guides are “Licensees Duty to Inspect Residential Property”, “Contingencies and Cancellation”,” Team Names”, and “The 2018 Advertising Rules”. You can follow-up with the Q & As on each of the issues. Quick Guides can be found at http://www.car.org/riskmanagement/tools/?highlight=legal%20quick%20guides Q & As can be found at http://www.car.org/riskmanagement/qa/all?highlight=legal%20q&a 2.Watching Jurassic Park or The Flintstones did you ever want your own Dinosaur? One of Gov Hutchinson’s favorite new laws gives Californians just that…the state dinosaur is the Augustynolophus morrisi. But there are laws that will affect real estate:
  1. The 2018 Advertising Rules
  2. The new CalBRE form for Brokers to identify all Broker Associates in the office. Effective January 1st, 2018 the form must be filed for all Broker Associates within an office. The form can be found at
  1. Beginning January 1, 2018, a licensee may petition CalBRE to remove a past disciplinary action record from his or her online profile after 10 years. CalBRE retains discretion to grant the petition.
  2. If a landlord has knowledge of the property being in a flood zone, the tenant must be notified and if the landlord’s insurance has no coverage for the tenant and personal property that must also be disclosed with a recommendation to get coverage.
  3. You cannot discriminate against anyone for immigration status, ask about status, or use the status to intimate. If disclosure of status is required because of a Federal Program, you must disclose but you cannot use that information elsewhere.
At the time of this meeting, approximately 300 bills sitting on the Governor’s desk awaiting signature. If he had intentions of signing any of them it had to be by midnight October 13th. You can get information about these and more laws at https://www.car.org/legal/recentlaws/ 3.OMG DIY GMTA…but does everybody remember alike? Recent Real Estate Disclosure Issues was presented by Jane Rheinheimer, Esq.— Rheinheimer + Smigliani, APC. Potential issues with the DYI remodel are code violations, unlicensed workers, unpermitted work, structural issues and health and safety concerns. Also how the property is presented in MLS, advertising, etc. Photoshopping pictures by modifying permanent physical characteristics of the property (removing ugly utility lines, removing nearby buildings) is a far cry from enhancing the photos by removing trash cans and changing brightness and color balance. Agents have to deal with clients who are non-communicators, non-disclosers, buyers who won’t pay for investigations, and the buyer who says, “don’t worry about it I’ll take care of it after escrow closes”. The trend is quick, short communiqués…texts. Problems arise when a year or two or five after escrow closes the buyer calls, they have a problem, and you didn’t do your job. Now they want you to pay. You know you told them not to waive their inspections, or to get additional inspections, but it was in a text and you’ve changed providers, phones, whatever…the text doesn’t exist. The recommendation is to backup your texts and your communication logs with another form…i.e. email. “Today was a great day and a lot happened regarding the purchase of your new home. I’d like to summarize what was done and said. If this isn’t exactly as you recall it, please let me know how your memory and interpretation differs.” Saving the texts with an app or through screenshots is also a way to go. (Your broker, office manager and legal counsel should be consulted.) Another concern is what happens to files in general. Companies close, merge, agents change brokers…where are the files that might keep you out of trouble? How long does your office maintain the files? More and more this is becoming an issue. 4.Have enough paperwork…wait there’s more!!! But it’s all good. There will be some forms deleted from ZipForms because they are duplications of more recent forms or aren’t being used. There will also be new and revised forms coming. Eleven forms were slated for revision and three new forms were coming in the December 2017 publishing. After presenting them to Legal Affairs the publishing on some may still happen but many won’t until 2018. Read the Standard Forms Report for more information. 5.Innocent Until Proven Guilty?? Not so fast. Not if you’ve misclassified an Employee as an Independent Contractor or vis versa. In a presentation by Kelly D. Gemelli, Esq. and Guillermo Escobedo of — Jackson Lewis P.C. Employment Law, the assumption is your guilty and the penalties are high.  Whether you’re a broker, office manager or a team leader, the powerpoint Hot Employment Topics in Real Estate may be a good thing to have. I have permission to share it with any of our members and will do so if you simply send me an email at Theinfoplace@yahoo.com and put “Send Jackson Lewis PowerPoint” in the subject box. Back to the Top   Section 10

Federal Committee Report

Federal Committee San Diego October 12th, 2017 1.Nothing’s certain except Death and Taxes… And right now there’s no real certainty of what the tax bill will look like. We know what issues are addressed in the recent proposal, but how it will look in the end is unknown. One issue not addressed in this latest proposal is the future of 1031 exchanges…previous drafts of changes for consideration called for elimination with changes made to accounting procedures. Time will tell? 2.If it’s not against the law…go for it!! That may seem like a great approach except most of what controls our daily lives are not the laws but the regulations. Charles Dawson, N.A.R. Managing Director of Regulatory Policy and Industrial Relations explained Legislation is a “broad brush” and Regulations defines and clarifies the “guts” and how to implement it when lawmakers couldn’t or didn’t want to come up with a plan. It’s unbelievable how many regulations control what we do and how we live. You can go to https://www.nar.realtor/political-advocacy/federal-advocacy where you can find 2016 NAR Legislative & Regulatory Year in Review as well as Top Federal Issues We're Watching, Advocacy News, or use the link provided with Bills and Regulations to search for specific bills or categories of bills. 3.Ever feel like Homer Simpson and his “Can’t Someone Else Just Do It? That’s what I felt like in Federal Issues this meeting. For you to get a sense of all we did, you need to read the reports from The Transaction & Regulatory Committee and/or go to the information provided about Flood Insurance Availability at http://www.car.org/meetings/carmeetings/committee-materials-archive/2017fall/TransCover/ and click on Flood Insurance IBP or click on Appraisals: Increasing the De Minimis IBP for information on changing “De Minimis” appraisal thresholds. The Investment Housing report and/or the materials provided to us will let you learn more about Government Sponsored Enterprises’ Guarantee of Institutional Investors Single-Family Residential Rentals at http://www.car.org/meetings/carmeetings/committee-materials-archive/2017fall/ihccover/ and click on GSE Guarantee of Institutional Investors IBP. Back to the Top Section 12

HOUSING -  Homeownership Report

October 2017 C.A.R. BOD Meetings in San Diego Raylene Brundage, Pacific Sotheby’s International Realty 858-735-8787 – RayleneBrundage@gmail.com   The overall message and emphasis of The Home Ownership-Committee is about the overall problem in California with unaffordable housing.  C.A.R. is looking for every opportunity to have an impact on this problem.  There were Four Action Items the committee brought forward to the general Director body to pass.  They are:   1.That C.A.R. “SPONSOR” or “CO-SPONSOR” legislation in 2018 to increase the vote requirement from a simple majority to a super majority for anti-development ballot measures.  This measure is to ensure that a super majority must defeat anti-development ballot measures.  With voter apathy, anti-development ballot measures can be defeated more easily with special interest organizations’ votes. 2.That C.A.R. “SUPPORT” legislation to restrict access to state resources if a local government fails to implement their housing element.  This is to ensure when cities do not implement their plans, which commonly means not approving or delaying permits for building outlined in their plans, there will be a penalty.  There has been none previously. 3.That C.A.R. “SPONSOR” legislation to statutorily define "affordable owner-occupied workforce housing" and "affordable workforce housing" as housing for households earning up to 120% AMI and allow for consideration of a higher AMI for "high-cost areas." 4.That C.A.R. “FAVOR” AB 1157 (Mullin) to allow capital school expenditures to also include the construction, reconstruction or renovation of rental housing for school district employees.  The purpose of this proposal is to allow expenditures to go toward creating housing for teachers and other school district employees due to the lack of available or affordable housing.   Back to the Top Section 13

S.P.F. Report

WHAT IS SPF?  AND WHAT DOES IT DO? The Strategic Planning and Finance Committee (SPF) is a committee that watches over the budget approves programs to enhance being a Realtor.  Approves an advertising budget to show the difference between being an agent and being a Realtor. 2018 New/Existing programs (Your Member Benefits)  Why I pay my dues. In 2018, 45 hours of free C.E., free e-Signatures, zipForm® Mobile, and document storage (zipVault®) continue as member benefits. The proposed 2018 budget represents a deficit of $123,500 which is being funded from reserves, without any increase in membership dues. As noted above, the level of reserves remains well above what would be considered prudent at 13.7 months. Five years ago, the Board of Directors deliberately decided to provide members with an expanded array of high touch services and programs. This is reflected to a lesser degree in the 2018 budget. Strategic Plan: 2018-2020 New Programs for 2018 1.Development of New Advertising Commercials The current Champions of Home ad campaign is now in its third year of media rotation. As such, it is time to create new TV commercials to prevent wear out and expand upon the campaign theme to include other timely issues, such as housing affordability. The campaign will be refreshed with new commercials while retaining the overall brand theme "Who's Your REALTOR?". The proposed program will allow the development of two new TV spots covering different demographics for buyers and sellers, to begin airing in 2018. Additionally, the augmentation funds production of a slate of new radio commercials for 2018, as well as new digital ads. Consumer, focus groups to validate creative messaging will also be conducted. Total Net Cost: ($340,000) 2.Housing Affordability Crisis This allocation to the C.A.R. Management program is a contingency fund that will be accessed only if a Ballot Initiative proposal is approved by the Board of Directors at the October 2017 meeting. If C.A.R. does go forward with one of the alternatives, initiatives addressing California's growing housing affordability crisis will require extensive effort and a coordination of resources at the local level. Total Net Cost: ($200,000) 3.C.A.R. Legal Products and Services C.A.R. Corporate Legal and Member Legal Services are programs that generate valuable legal data and related information associated with real estate transactions. This information will be studied, explored and mined in order to identify product and service opportunities (both member benefits and fee-based services) to assist members in the area of legal risk management. Total Net Cost: ($145,800) 4.WomanUp!® Back for a second year, this program provides the resources to identify, mentor, develop and connect women in real estate with the goal of supporting their future success in the business. It seeks to create a community where mentors and female leaders can communicate, collaborate, promote and support each other. Women are underrepresented in leadership positions in business overall and in the real estate brokerage industry in particular. This program includes a two-day conference, additional research and interviews, and the launch of a mentoring network and speaker's bureau. Total Net Cost: ($141,600) 5.Chatbot and Enhanced Support This augmentation funds an outside legal contract attorney to populate the content of the chatbot that will provide automated answers to legal questions. Already in beta test, this augmentation provides for up to 100 topics to populate this interactive tool. It adds one staff position to provide support services and be a resource for expanded activities including webinars, reports, metrics, newsletter content, website maintenance, and other projects. Total Net Cost: ($89,800) 6.Financial Literacy Outreach This program provides the resources for C.A.R. to develop collateral materials for California REALTORS® to educate prospective first-time homebuyers, clients who have had a prior foreclosure or short sale, and Baby Boomers interested in helping their children or grandchildren become responsible homeowners. Total Net Cost: ($71,200) 7.Innovators Workshop This program provides a venue for inventors to pitch their new ideas and have C.A.R. evaluate them for a potential partnership,  access to C.A.R. resources or acquisition.  An external Innovators  Workshop Advisory  Group (IWAG) has been assembled from representatives to the C.A.R. Business Technology  Forum and other volunteers to provide an external evaluation of each idea as experts in their respective fields of brokerages,  local associations,  REALTORS®, and other private businesses.  Finalist(s) are selected by IWAG to make  in-person presentations  to the Business Technology  Forum where  live voting occurs to engage interest in the product/service  and determine  support for having C.A.R. invest further time and resources in the finalist submission(s). Total Net Cost: ($66,000) 8. Enhanced Leadership Conference Provide resources to enhance the annual C.A.R. Leadership Conference for incoming members of the Executive Committee, Regional Chairs, Committee Chairs, Committee Vice Chairs, Committee Issue Chairs, and the Strategic Planning and Finance Committee. Total Net Cost: ($58,600) 9.Office Managers This program creates a direct link with Office Managers by providing resources, tools, tips, professional development, and networking opportunities. It also provides an opportunity for C.A.R. to learn from these key players who are often the first to confront market opportunities and challenges. Maintaining a close partnership with this community will be important for the flow of information between C.A.R., brokers and agents. Total Net Cost: ($19,600) 10.Digital/Social Media Education This augmentation proposes that one-day conferences be developed to offer attendees the opportunity to gain practical, hands-on knowledge about how to work within the digital space. The opportunity to monetize these standalone events will be explored. Total Net Cost: ($1,500) Back to the Top  

How I Saved a Deal: Problems can be gifts of opportunities

Posted by Taylor Thompson in Blog, News | 0 comments

Here is the latest is a series of occasional articles on “How I Saved a Deal” by NSDCAR members.  

By Carol Farrar

2018 incoming President of the North San Diego County Association of Realtors (NSDCAR)   The client thought her situation was hopeless. In her mind, she was at a dead end and there was no choice. No other action was even possible, nothing else made sense. The client believed that “I’m troubled by trouble, I’m completely ruined, I’m wiped out, mine is a hopeless case, I give up.” She was in her late 70s and her husband had recently passed away. She was devastated in grief. The weight of the world was now on her shoulders and she was ready to throw-in the towel. She told me that her and her late husband had lived in the same house in Escondido for 30 years. The house had seen almost no maintenance for three decades. It was in horrible condition, not a pretty sight. Plus, with a limited income, she couldn’t afford the payments and was behind by several months. Also, she had little savings in the bank to pay the late payments. The client thought her only option was the dreaded “F” word: “foreclosure,” followed by a short sale and selling the home for less than what is owed on the mortgage. In some cases, a short sale may be ideal. Typically, before approving a short sale, lenders take into consideration the amount of assets a borrower has and whether the borrower is already in default. Also, while not as damaging as foreclosure, a short sale still can mean that a credit score will take a hit. However, the message I gave them was: Foreclosure is not imminent because there are always options. I saved the deal by reminding the client that they had options. No matter the price point, condition of the house or financial situation, there are always options. Sometimes, clients are too quick to jump to what could be a worst possible conclusion. My advice to clients: “You may not be able to control the hand you were dealt, and maybe we’ve made bad choices in our past, but you can still change the way you live your life today by making new choices today. Today’s choices can positively affect the rest of your life.” So, after meeting with the client and her family members and assessing the situation, my recommendation was to sell the home “as is” in its current state with the understanding that no repairs would be made and the home would remain with its current faults and issues. Forget remodeling for this client because she could not really afford to make any repairs due to her serious financial distress. Also, the vast majority of mortgage lenders insist that a home not have code violations, including structural, health, or safety issues, before lending money for repairs. It’s true that buyers sometimes expect properties to be nearly perfect or they expect the seller to fix it. In my client’s case, selling home “as is” was a good idea because she did not want to deal with the stress of a drawn-out sales process. So, she signed the necessary paperwork (“caveat emptor,” let the buyer beware). Sometimes, problems can be gifts of opportunities wrapped in disguise. This story has a happy ending. We received 20 offers and accepted an all-cash offer from a qualified buyer. The client was expecting that “if it could go wrong, it would go wrong.” But, escrow closed in two weeks. We exceeded her expectations. An experienced professional can use diplomacy and negotiation skills to push through with determination on behalf of a transaction. Just like a lifeguard, experienced REALTORS® can use deal-saving techniques when a transaction looks like it’s starting to drown. Today, my client has a clean slate. She walked away with a nice nest egg in her bank account and she lives comfortably in an affordable retirement community in Riverside County.   Carol is the 2018 incoming President of the North San Diego County Association of Realtors (NSDCAR).

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