Arcadia REALTOR Magazine - May/June 2016 by Arcadia Association of REALTORS®

REALTOR®

OFFICIAL PUBLICATION OF THE ARCADIA ASSOCIATION OF REALTORS®

PROUDLY SERVING THE REALTORS® OF ARCADIA, BRADBURY, DUARTE, MONROVIA & SIERRA MADRE

How an Architect Can Save Your Listing See page 13

ARCADIA REALTOR® · JANUARY/FEBRUARY 2015

MAY/JUNE 2016 · ARCADIA REALTOR®

REALTOR® 2016 ASSOCIATION OFFICERS Roy Blume 2016 PRESIDENT Sylvia Ramos PRESIDENT-ELECT Kelvin Chang TREASURER Joseph Pacilio IMMEDIATE PAST PRESIDENT BOARD OF DIRECTORS Ryan Asao Julie Bencosme Cecil Griffin Fred Madjar Yvonne Rosas-Petty Irene Truong Mike Vachani

C.A.R. DIRECTORS Ryan Asao Andy Bencosme Julie Bencosme Roy Blume Margaret Garemore Joseph Pacilio Sylvia Ramos Randall Traw Mike Vachani Kelvin Wong

ASSOCIATION STAFF

Robin Allen Ext. 307 Director of Finance / Office Manager Robin@TheAAR.com Michael Beltran Ext. 302 IT Director / Webmaster Michael@TheAAR.com Brenda Faltes Ext. 304 Director of Membership & Professional Standards Brenda@TheAAR.com Jamie Hu Ext. 309 Director of MLS Data Integrity & Affiliate Liaison Jamie.Hu@TheAAR.com Stephanie Maertens Ext. 303 Director of Education & Commercial Real Estate Stephanie@TheAAR.com Laura Thai Ext. 304 Director of Broker Compliance & Member Outreach Laura@TheAAR.com Andrew Cooper Ext. 308 Chief Executive Officer Andrew@TheAAR.com

ARCADIA ASSOCIATION OF REALTORS® 601 South First Avenue Arcadia, California 91006 626.446.2115 626.446.4072 FAX www.TheAAR.com

Cooper’s Comments Is It Time To Play Your Mulligan? I’m a sports fan with soccer being my number 1 sport of choice. I blame my British parents for that. Likewise, I have a circle of friends who are sports fans as well; however, their number 1 sport is golf. We rib each other all the time if golf and soccer are really considered sports. Next month in July these friends have planned a golf outing in La Quinta and they’ve asked me to play. This is funny by itself because they know I don’t play golf. And what’s even funnier to me is playing golf in the California desert in the middle of July. They tried to persuade me by saying they’d give me a few “Mulligan’s” to get me through the day. I asked if a mulligan is something that lowers the temperature by 40 degrees. Apparently it isn’t. I was told a mulligan is when you are given a second chance to make up for a mistake or a poor shot. I wondered to myself if mulligan’s are only limited to golf. I sure could use a few when it comes to buying my wife birthday and anniversary presents. This mulligan thing got me thinking how the next month of July is very significant from a business standpoint. July represents the beginning of the 2nd half of the year. If you aren’t pleased with the first 6 months, July is the perfect time to play your “mulligan” and start over again. It’s the ultimate time to make a behavioral or attitude change and to reassess your goals. You can choose to think, “Oh no, I can’t believe the year is half over already - where has it gone?” or you can opt for “This is exciting - I still have half the year to produce more sales!” When you think of it in that perspective, which thought process is more conducive to positive sales activity? One of the easiest ways of igniting a behavioral change is to start participating in educational opportunities - or participate in more of them. As an association, it’s our job to provide world-class events, education and career-building opportunities for our valued AAR REALTOR® and Affiliate Business Partners. As members of the AAR, it’s the responsibility you have to your business to attend these world-class events, education and career-building opportunities. Year-to-date we’ve already offered over 40 events to help you grow your business. How many have you attended? We promote these events with every conceivable communication tool available: standard emails, weekly InTouch eNewsletters to REALORS® and Affiliates, on our website, in our bi-monthly printed magazine, at the weekly MLS Marketing Meetings, flyers in our office and lastly on now- ubiquitous social media outlets like Facebook, Twitter, LinkedIn, Instagram, and YouTube. I believe the only thing we might be missing is sky-writing. To summarize, we encourage you to play your mulligan before it’s too late. It’s better to start over now than to regret it in 6 months. On behalf of the AAR staff and 2016 Board of Directors, we all wish you a prosperous and successful last half of 2016. We look forward to seeing you at one of our many events very soon.

Andrew Cooper 2

ARCADIA REALTOR® · MAY/JUNE 2016

Chief Executive Officer

MAY/JUNE 2016 | VOLUME 20 | NUMBER 3

Contents 7

Regular Features 2

Cooper’s Comments

Market Matters

Attorney Comments

Through the Lens

Affiliate Corner

Andrew Cooper, Chief Executive Officer

Market Statistics for the San Gabriel Valley

Dave Freeman, AAR Legal Counsel

A Look at What’s Happening Around the AAR

On the Cover 13 How an Architect Can Save Your Listing When buyers have trouble envisioning living in a property, an architect can help them see the possibilities.

Additional Content 7

AAR Members Visit the Captial Legislative Day is an opportunity for REALTORS® from across California to meet with their state legislators to discuss the issues that affect the real estate industry the most.

10 AAR New REALTOR® Members The AAR welcomes its newest REALTOR® Members of 2016. 11 The Threat of Wire Fraud Is Real Know the six tips for keeping your transaction secure.

“About the Hazards” Maria Howard, First American Natural Hazard Disclosures MAY/JUNE 2016 · ARCADIA REALTOR®

Market Matters Market Statistics for the San Gabriel Valley - March 2016

City

Arcadia Arcadia Duarte El Monte El Monte Glendora Glendora Monrovia San Gabriel San Gabriel San Marino Sierra Madre Temple City

Zip Code

91006 91007 91010 91731 91732 91740 91741 91016 91775 91776 91108 91024 91780

Single Family Homes

Condominiums

Price % Sales of Price Chg from Single Family Median SFR March Homes ($1,000) 2015

Price Median Condo ($1,000)

28 17 20 7 11 10 26 17 11 11 14 8 26

$920 $1,236 $442 $435 $375 $473 $580 $617 $948 $655 $1,949 $885 $648

-16.9% -7.8% -15.8% 1.2% -10.7% 4.1% -6.5% 7.4% 26.4% 18.6% -14.5% 48.7% -7.5%

Sales Count Condos

4 11 7 2 3 2 7 10 n/a 4 n/a 2 5

SFR Only

Price & Chg from Median March Home Price/ 2015 Sq. Ft.

$723 $595 $316 $535 $598 $374 $475 $425 n/a $483 n/a $597 $599

-1.7% 11.7% 6.8% 90.4% 71.8% -10.4% 3.4% 7.0% n/a 12.1% n/a -12.8% -7.1%

$551 $576 $378 $384 $346 $386 $355 $441 $445 $441 $867 $567 $467

Market Statistics for the San Gabriel Valley - April 2016 Single Family Homes

City

Arcadia Arcadia Duarte El Monte El Monte Glendora Glendora Monrovia San Gabriel San Gabriel San Marino Sierra Madre Temple City 4

Zip Code

91006 91007 91010 91731 91732 91740 91741 91016 91775 91776 91108 91024 91780

Condominiums

Sales of Price Price % Sales Single Family Median SFR Chg from Count Homes ($1,000) April 2015 Condos

38 15 16 4 14 21 24 23 15 13 23 9 27

$1,122 $1,198 $550 $434 $433 $500 $668 $730 $655 $597 $3,200 $901 $750

ARCADIA REALTORÂŽ Âˇ JANUARY/FEBRUARY 2016

-6.4% 2.0% 27.2% 8.4% 6.1% 11.2% -1.1% 13.2% -12.1% -0.2% 23.1% 14.4% 4.7%

6 10 7 2 4 7 7 6 5 6 n/a n/a 6

SFR Only

Price Median Price & Median Condo Chg from Home Price/ ($1,000) April 2015 Sq. Ft.

$775 $559 $335 $419 $508 $381 $431 $432 $410 $617 n/a n/a $550

37.1% 3.5% 4.3% 11.7% 39.0% 18.3% -14.1% 0.8% n/a 44.6% n/a n/a -3.0%

$555 $552 $367 $447 $356 $329 $364 $445 $465 $407 $932 $554 $534

Source: CoreLogic.com

Attorney Comments

By Dave Freeman, Association Counsel

Mechanic Liens

Attorney Fees

Earthquake Retrofit

Many of your clients will run into a contractor, sub-contractor (Sub), or hired person, who is not a licensed contractor, who does work on their home and demands payment of money the homeowner disputes or otherwise doesn’t pay.

Have your clients, who are landlords, consider including a provision in any lease or rental agreement that limits the amount of attorney fees either side may get in any legal dispute, to a reasonable sum, say $200 to $400. This will tend to discourage the attorneys who need business from offering to represent the tenant who hasn’t paid, and doesn’t intend to pay the rent.

Los Angeles has passed a law that requires owners of apartment buildings designated as soft-story buildings (SSBs) to retrofit them in order to make them safer during earthquakes and less likely to have their first floor collapse. SSBs typically include the buildings with flimsy wood frames, where some of the parking is available under the first floor of units, often referred to as Tuck Under Parking. During large earthquakes the support between the parking places has been known to buckle or lean, causing the building to become unstable and/or dangerous.

If the person who did the work is a licensed contractor and dealt directly with the owner of the home, they can record a lien on the property within 90 days from the end of any work being done, or within 90 days from the time the contractor is no longer allowed to work on the project. Then, they must file suit within 90 days of recording the lien, unless a notice of completion is recorded, thereby shortening the time considerably. If the claimant (a Sub or a Supplier) did not deal directly with the owner, they can only file a lien if they first served a timely California 20-Day Preliminary Notice on the owner, lender and general contractor. This must be served within 20 days after any work the claimant wishes to be able to file a lien for. This information is not to cause you to give specific advice to clients, but rather to help you spot situations where you can point out to clients that they can protect themselves from, “the bad ones.”

Very often, attorneys will send letters to tenants, who have been served with an eviction lawsuit, claiming that they can get the tenant an extra six months’ rent, free. Then, the attorney files suit, requesting a jury trial, costing the landlord valuable time and attorney fees. The landlord is then forced to pay several thousand dollars (which the tenant’s attorney keeps), and give the tenant another several months free rent, or go to a very expensive trial. The provision in the rental agreement, in writing and signed by the tenant will help discourage this action.

L.A. has and is sending out notifications to the owners of these buildings and is requiring retrofit, at great expense. There is no system at present to help them out. If your client is buying in L.A., be sure to advise them of this situation. If they are selling, be sure they disclose IN WRITING, if their property is on the list. Owners and potential buyers can determine if a particular property is on the list at: http://graphics.latimes.com/soft-storyapartments-needing-retrofit/.

MAY/JUNE 2016 · ARCADIA REALTOR®

through the lens

A Look at What’s Happening Around the AAR PEPster Lunc

heon

Nick Zigic, Ir ene Truong, Cecil Griffin, Sylvia Ramo s, James Pai & Jim Maceo

Fiorella Dan dekar, Tom C rosby, Leann Kimball, Val Wong, Came e lia Vera, Jorg e Abich

tirement Party Jane Shriver Re

Shrive ice Mickle, Jane rn Be e, sk oe Br Kay & Gina Horn Mary Rovarino

Bill Lee & Jane

John Barker & Jane

Cecil Griffin & Jane

ieri

Jane & Noel Palm

Maureen McCune, Tom Adams, Diana Rafeedie, Jane Shriv er & May Rahman ian

Yvonne Rosa s-

Petty & Jane

Young Ahn, Jane Shriver, Roy Blume & Tom Shriver

Group photo with Ja

ARCADIA REALTOR® · MAY/JUNE 2016

Pablo Pomes, Christian Cole & Jane

Jane & Doug

Meyer

10 YEARS

CELEBRATING

The AAR is pleased and proud to congratulate staff member Stephanie Maertens on her 10 year work anniversary with the AAR! Stephanie started in 2006 as a part time staff member while she attended Azusa Pacific University. 10 years later she is still with us and continues to do such a great job for our members. Thank you Stephanie for 10 great years!

Maureen McCune Loan Consultant, NMLS# 284640 Tel: 626.991.4656 Maureen.McCune@kinecta.org www.kinecta.org/mmccune

270,000

Even though you need help each day, we agree that you’re still in charge

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JANUARY/FEBRUARY 2015

ARCADIA REALTOR® · JANUARY/FEBRUARY 2015

AFFILIATE Corner “About the Hazards”

The California By Maria Howard, First American Natural Hazard Disclosures legislature has mandated that a seller disclose certain natural hazard zones upon the transfer of real property, whether residential or commercial. For residential sales, those disclosures are typically made on a statutory form called the “Natural Hazard Disclosure Statement” (“NHDS”) as set forth in the California Civil Code (Section 1103.2(a)). The hazard zones on the NHDS are delineated on regulatory government maps that cover six hazard categories: two seismic (earthquake-related), two fire, and two flood. In addition, California’s cities and counties also recognize certain natural hazard threats when planning land-use within their jurisdictions. Where a natural hazard is deemed sufficiently important, the municipality delineates a zone around it and depicts it on a hazard map in the Safety Element of the city or county General Plan. Like the state-level zones, these locally defined zones are regulatory in effect, as government building departments typically consider them when deciding to approve or deny a building permit. Because municipalities may be more restrictive than the state, the hazard zones defined by cities and counties commonly differ from the state-defined zones, and often include additional hazard categories. These natural hazards can be found in the Safety Elements of California’s 500-plus city and county jurisdictions.

There are a number of important factors to consider when assessing environmental issues. Risk is only one factor. Others include public values and perceptions, economic constraints, perceived risk to health etc. Accurate and unbiased information is important. It provides a logical foundation for decisions that are often emotionally based on “perceived” risk rather than on actual risk. Maria Howard, First American Natural Hazard Disclosures. For more information, contact Maria at: 626-940-9716 or mahoward@firstam.com

MAY/JUNE 2016 · ARCADIA REALTOR®

Welcome, New Members! NEW REALTORS® MAY 2016

La Nett Adams, Keller Williams Market Center; Henry G. Alfonso, Century 21 Adams & Barnes; Ellen M. Burry, Pacific Integrated Capital; Vennie Chang, Keller Williams Market Center; Donavan K. Chau, REVA; Paul Cheung, Stephen Walker, Broker; Yean Ping Chu, Coldwell Banker George; Geremy A. Dingle, Berkshire Hathaway Home Service; Zhihao Feng, Treeline Realty & Investment; Mackenzie E. Grant, Berkshire Hathaway Home Service; Larry L. Han, IRN Realty; Zaixi Andy Han, Highland Real Estate; Chi N. Hosseinion, Pacific American Properties; Jing Huang, Long Dragon Realty Group, Inc.; Michelle E. Kamal, Coldwell Banker Dynasty T.C.;

Hilda Leung, Grandmark Realty Inc.; Araceli Leva, Cal Mutual; Daijiang Li, Long Dragon Realty Group, Inc.; LianHong Li, Highland Real Estate; Jianfeng Liao, IRN Realty; Shayna Liu, Long Dragon Realty Group, Inc.; Tiffany Su T. Liu, Han Realty; Sybil M. Matas, Cal Mutual; Pamela D. McKinney, VasTree Real Estate; Megan Pan, RE/MAX Premier Properties; Kewen Qian, Supreme Investment Corp.; Oriana Rocha Garvizu, Century 21 West Coast Brokers; Weiyi C. Rowe, IRN Realty; Martha E. Sanchez, Berkshire Hathaway Home Service; YuFu Sun, IRN Realty;

Howie H. Ta, IRN Realty; Huyen T. Thai, Pacific American Properties; Junhua Tong, Long Dragon Realty Group, Inc.; Elizabeth R. Verti, Keller Williams Market Center; Shauna L. Wallo, Podley Properties; Johnny Wang, RE/MAX Premier Prop. San Marino; Yi Wang, Highland Real Estate; Ann J. Xu, RE/MAX 1000 Realty; Yujie Xu, Supreme Investment Corp.; Allen L. Yu, Coldwell Banker Dynasty Arcadia; Rini X. Yu, Champion Character Inc.; Emily J. Yuan, Supreme Investment Corp.; Xiao L. Yuan, Supreme Investment Corp.; Wei J. Zheng, IRN Realty; Hanyu Zhu, Treeline Realty & Investment

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ARCADIA REALTOR® · MAY/JUNE 2016

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AAR Members Visit the Capital

LEGISLATIVE DAY 2016 SACRAMENTO Each year in April the AAR sends our CAR Directors to Sacramento for CAR’s Legislative Day to lobby our legislators on behalf of the real estate community. The AAR is delighted to also have some REALTOR® members attend to also represent the AAR. Their involvement is funded through a special CAR First Time Attendee Scholarship that the AAR receives each year from CAR. Below, please see the thoughts and comments from 2 of our first-time attendees who traveled in April. Are you interested in attending next year? Please send an email to AAR CEO Andrew Cooper: Andrew@TheAAR.com

Matilde Restrepo, REALTOR®, Berkshire Hathaway Home Service “Legislative Day 2016!” can only be described as an extraordinary and career-defining event. After marching to the capitol with the thousands of REALTORS® in attendance, we met with our district representatives. The group was split in two, with AAR President-Elect, Sylvia Ramos and AAR Grievance Committee Chairperson, Margaret Garemore introducing my group to Senator Liu and Congress Member Holden. During our meeting we discussed the Hot Topics for the day provided by CAR. Their positive disposition to our concerns made the experience very pleasant. My attendance added depth to my career and the service I provide to my clients. I was able to see first-hand the influence that our lobbying organization had in the lives of different politicians and the importance of having members representing, not only our organizations best interests, but the best interests of future homeowners.

David Sanepour, REALTOR®, Coldwell Banker George It has been a remarkable experience, whereas I had the opportunity to witness Mr. Brown (California Governor) speaking live to over 2,000 REALTORS® from all over the Golden State. The governor addressed many issues concerning the Real Estate Industry and encouraged all REALTORS® to stay focused and continue to work hard in helping Californians achieve their dreams in owning a property. One of the main highlights of my trip was my ability to meet with Assembly Member Ed Chau. His knowledge about the Real Estate Industry and economic development was impressive and he allowed real estate agents to express their views and concerns about today’s market. I am grateful for this wonderful experience and I am thankful to be an active member of the Arcadia Association of REALTORS®. MAY/JUNE 2016 · ARCADIA REALTOR®

The Threat of Wire Fraud Is Real By Erica Christoffer & Graham Wood, REALTOR® Magazine

When NAR General Counsel Katie Johnson asked a group of real estate professionals whether they or someone they knew had clients that were victims of wire fraud, more than one-third of the audience at the Idea Exchange Council for Brokers raised their hands. Johnson laid out the top legal friction points currently facing practitioners during the REALTORS® Legislative Meetings & Trade Expo in Washington, D.C. Wire fraud topped the list as a sophisticated scam causing consumers to lose millions of dollars each year. Hackers are gaining access to e-mail accounts through captured passwords, and they’ll search inboxes for messages related to real estate transactions, Johnson said. Once they find a victim who’s in the process of buying a home, they’ll send a spoof e-mail that looks like it’s from their agent, title representative, or attorney, and it will say there are “new” wiring instructions, which includes a fraudulent account. The home buyer will then unwittingly wire funds directly into the hacker’s account, Johnson said. “Once they send it, the money is gone,” she added. “Millions of dollars are lost on this.” Jessica Edgerton, NAR associate counsel, presented suggestions during the Professional Standards Forum & Committee Meeting to help clients avoid falling victim to wire fraud. “The more we raise awareness of these scams, the more red flags consumers will recognize,” Edgerton says. 12

ARCADIA REALTOR® · MAY/JUNE 2016

Here are six tips for keeping the transaction secure:

Build a standard warning about wire scams into your e-mail signature or include a disclaimer at the bottom of your e-mails that says you will not discuss personal financial information over e-mail.

At the beginning of every transaction, tell clients what your communication practices are.

If you or your agents do engage in a wire transfer with a client, call them on the phone immediately prior to the transfer of funds so they know they’re sending money to the legitimate source.

You and your clients should avoid free Wi-Fi with no firewall to protect against hackers capturing an e-mail password or other sensitive information.

Always use strong passwords and change them regularly; advise your clients to do the same. It also wouldn’t hurt for your client to change their password before wire instructions are sent.

Brokers should consider employing a staff person who’s responsible for monitoring, updating, and implementing information security systems and procedures at your company.

“We can implement every technical safeguard we can think of, but if our people [agents and staff] aren’t following protocol, it’s like leaving the door to the citadel wide open,” Edgerton says.

How an Architect Can Save Your Listing By William J. Hirsch, Member of the American Institute of Architects

You likely have forged relationships with real estate lawyers, bankers, and appraisers, among other professionals, calling on their expertise when you and your client need help navigating an aspect of the transaction. Have you considered when you might need an architect’s point of view? Recently, a real estate agent called me about a house she had listed that had a “unique” floor plan. The first floor was awkwardly designed, and there was no place that leant itself to an intuitive seating arrangement to simply relax and watch television. As soon as buyers walked in, they turned right back around and walked out. The agent told me that none of her buyers could envision living in the house. Here’s where my perspective came in handy. As an architect, I’m an “idea guy,” and where people see problems with a home’s layout, I see opportunities. Like most architects, I have a vivid imagination and the ability to think and visualize in three dimensions. So when agents need a fresh set of imaginative eyes to look at a property, I’m the guy they often call. So this agent wanted some ideas about how the house could be adapted to become more appealing to buyers. We spent an hour doing a walkthrough together, and I was able to visualize a simple renovation plan that she could present to her clients. I advised taking down a wall, moving a door to an adjacent room, and creating a proper entry foyer. The job would be far less extensive than she expected, and now armed with ideas, she was able to present the house in a new light. She had something to be 13

excited about, and she could convey that excitement to her clients.

Focus on the Positive With Older Properties Home inspections are designed to show buyers all the flaws in a home so they can make an educated decision about whether they want to purchase. Even if they like the location of a home, the home inspection report can take the wind out of their sails if it needs a lot of work. Soliciting the advice of an architect at this moment could help buyers keep their vision alive and refocus them on the positive aspects of the house. I don’t tell them about rotted window trim or leaky gutters; I tell them about how they can open up the kitchen, let more light into the great room, add more garage space, add on a first floor master suite, or create outdoor living spaces, all while reassuring them about the structural integrity of the house. I advise on the feasibility of remodeling and the opportunities that lay hidden within a home. That feedback can help a buyer see the pros more than the cons and keep the transaction on track.

Build the Vision for New Construction If you sell building lots or raw land, you know how important visualization can be. I’ve walked building sites with agents and their clients, and I ask the buyer what they would like their new house to be. Will it be private or will it make a statement? Will it need a walk-out basement? How large will it be?

ARCADIA REALTOR® · JANUARY/FEBRUARY 2015

Then we discuss the opportunities for each property. We talk about where the sun rises and sets. Which way will they approach the house? Where would the garage and driveway be? Is the lot too steep or does it have a drainage problem? Where are the view opportunities? Through this discussion, we end up determining which lot suits their goals for their new house best. The buyers can now more easily make a choice and buy a property with confidence. Architects help practitioners and their buyers unravel the uncertainty that can block them from submitting an offer on a property. We don’t sell anything; we remove doubts and open doors to new opportunities. If you’re wondering whether architects “give away” free advice like I do, I can say that the smart ones will. For a few hours of their time, the architect can be introduced to potential clients who may be building or remodeling a house and need their services. Beyond that, the architect and agent get to know more about how they both work and relate to clients. If that goes well, it leads to valuable networking and mutual referrals. If you don’t already know an architect, contact builders in your area for referrals or contact your local chapter of the American Institute of Architects. The AIA will have a membership directory that often describes each architect’s specialty. When you make friends with an architect, you will broaden your vision for properties while helping your clients be more confident in their decisions.

MAY/JUNE 2016 · ARCADIA REALTOR®

Arcadia Association of REALTORS® 601 South First Avenue Arcadia, California 91006

ANNUAL MEMBERSHIP

BREAKFAST

APPROVE THE 2017 OFFICERS & DIRECTORS & VOTE ON AN IMPORTANT BYLAW CHANGE Wednesday, June 29, 2016 8:00 a.m.

Arcadia Masonic Center

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COMPLIMENTARY HOT BREAKFAST PROVIDED www.TheAAR.com ~ 601 S. First Ave. Arcadia, CA 91006 ~ 626-446-2115 ~ Fx. 626-446-4072

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