KYREALTORWinter2010 by Kentucky REALTORS

Kentucky

REALTOR ®

Winter 2010

A publication of the Kentucky Association of REALTORS ®

WHAT DOES THE FUTURE HOLD FOR REAL ESTATE? The local perspective...

Kentucky’s New Condominium Act HouseLogic Attract Killer Reviews

www.kar.com

The National RPAC Trustees and NAR Leadership would like to thank our 2010 Major Donors from Kentucky for their continued support at the highest levels.

FZS`] Kag Golden R + Tony Clark + Guy Montgomery + Charlie Murphy + Betty Schutte + John Weikel

Sterling R Dennis Anderson

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James Bramblett Steve Cline

Jerry McMahan Lisa Presley-McGrew

Anthony de Movellan

Joann Risner

Patricia Edison

Joseph Simms

Carolyn Edwards

Carl Tackett

Susan Helm

Harrell Tague

Brenda Loyal

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Contents

Volume 4, Number 2, Winter 2010

IN THIS ISSUE

A publication of the ® Kentucky Association of REALTORS President John W. Smither, GRI ® Lexington-Bluegrass Association of REALTORS President-Elect Tony Clark, ABR, CRB, CRS, GRI ® Greater Owensboro REALTOR Association Treasurer Kevin Farris ® Heart of Kentucky Association of REALTORS Treasurer-Elect Ronald E. Hughes, ABR, CRS, GRI ® Paducah Board of REALTORS Executive Vice President Susan W. Helm, RCE susiehelm@kar.com Communications/Education Director Hunt Cooper hcooper@kar.com Address letters and inquiries to: ® Kentucky REALTOR 161 Prosperous Place, Suite 100 Lexington, KY 40509 TF 800.264.2185 T 859.263.7377 F 859.263.7565 www.kar.com email: hcooper@kar.com KAR members should always send address changes to their local board/association first. Subscription rates: $10 per year (included in dues) for members, $25 per year for nonmembers. ®

Kentucky REALTOR (USPS 024-933) is published quarterly (Fall, Winter, Spring, Summer) by ® the Kentucky Association of REALTORS , 161 Prosperous Place, Lexington, KY 40509. Periodicals postage paid at Lexington, KY. POSTMASTER: Send address changes to Kentucky ® REALTOR , 161 Prosperous Place, Suite 100, Lexington, KY 40509. All articles represent the opinions of the authors and do not necessarily represent the opinions ® of Kentucky REALTOR or KAR and should not be construed as a recommendation for any course of action regarding financial, legal or accounting ® matters by KAR or Kentucky REALTOR and its authors.

KAR News

What Does the Future Hold?

10 Simple Steps to Attract Killer Reviews

RPAC Contributors

HouseLogic Offers Free Marketing Tools

B.O.D. Action Items from Convention

REGULAR FEATURES President’s Message

Tools You Can Use

Legal Update

Legislative Update

Education

Local Association News

By the Numbers

Housing Stats

Community Profile

From the Helm

Code of Ethics

A Day in the Life of...

WINTER 2010 KENTUCKY REALTOR® 3

KAR News KAR Election Results President-Elect: Ann McDonald (Lexington)

Treasurer-Elect: Region 2 Director: Donnie Sims (Bowling Green) Region 4 Director: Gale Fulton (Lexington) Region 6 Director: Nelson Weaver (Somerset) At-Large Directors: Linda Gibson Cecil (Louisville) Rebecca Trout (Florence) Earleene Woods (Murray) At-Large Delegates: Jim DeMaio (Owensboro) Lisa Presley McGrew (Louisville) Libbi Taylor (Lexington) NAR Director: Charlie Murphy (Lexington) NAR Region 4 VP for 2013: John Weikel, II (Louisville)

KAR Awards and Recognition REALTOR® of the Year: Jeff Smith (Union)

Distinguished Service Award: John Davis (Paducah)

Nat Sanders Award:

2011 KAR President: Tony Clark

REALTOR® of the Year: Jeff Smith

Distinguished Service Award: John Davis

Affinity Partner Spotlight Automate the feedback gathering process from start to finish and provide your sellers with the information they seek with the help of HomeFeedback®. The program saves you countless hours every month by automatically following up with showing agents and their buyers after each showing. Feedback responses are then emailed straight to you and your sellers. Best of all, sellers will not only be emailed the feedback responses, but will have their very own private seller portal to view all of the feedback gathered, along with statistical reports, the complete showing history for their property and more. You can save even more time by getting Listing Sync and Showing Sync® to automatically sync your listings from your MLS and import showing information from your electronic Supra or SentriLock lockboxes. As a KAR member, you can sign up for the Basic Showing Suite, which includes HomeFeedback®, Listing Sync and Showing Sync®, for only $12.95 per month for the first 12 months!

Virginia Lawson (Lexington)

Community Service Award: Large Board – Lexington-Bluegrass Association Medium Board – REALTOR® Association of SKY Small Board – Kentucky-Barkley Lakes Board

Paul Kendall Membership Growth Award: 1st – Kentucky-Barkley Lakes Board 2nd – Murray-Calloway County Board 3rd – Henderson-Audubon Board

Ammerman Attendance Award: Greater Louisville Association

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KREC Commissioner Appointed Gov. Beshear has appointed Linda Gibson Cecil to the Kentucky Real Estate Commission to serve for a term expiring Oct. 1, 2014. Cecil, of Louisville, is a manager at Wakefield, Reutlinger and is a member of the Greater Louisville Association of REALTORS® where she served as president in 2009. She has served on the Finance, Board Forms and Governmental Affairs Committees on the local level. At the state, she is currently a member of the Delegate Body and serves on the Legislative Quick Response Team, is chair of the Strategic Planning Committee and is vice chair of the Governmental Affairs Committee. At both the local and state levels, Cecil has served as an RPAC Trustee. Nationally, she is a NAR Director and committee member for Professional Standards. She has earned both her GRI and CRS designations. The appointment replaces Ronald K. Smith, whose term has expired.

President’s Message Time to Wrap It Up First, let me give a personal “thank you” to each and every one of our members. It is truly amazing what has been accomplished this year just because you cared about your profession and each of your REALTOR® family members. You gave time, money and energy and there’s not much more anyone could ask.

Becca, Lakezia, Roberta, Julie, Hunt, Anetha, Pat, Carloss and Susie. They are interested in you and want to provide you, the REALTOR®, with the finest of service. Believe me, they are why this organization runs as smoothly as it does. My time as president has come and gone but this year will go down in my book as a great one. Now if I can only get invited into the ranks of the past presidents. That reminds me, I’ll have to make a call. John Smither, 2010 KAR President

It has been a good year for many reasons. KAR had a successful legislative session this past February. We defeated some bills that we opposed and supported some that we felt were in the best interest of our industry. I do hope this coming February, when we travel back to Frankfort, that we can have 500 REALTORS® come join us on Wednesday morning for the hill visits. We want all the Senators and Representatives to know how concerned we are in protecting home ownership rights as well as affordable housing. Kentucky’s government will be trying to find money and that will be its number one challenge. It must be heard that we do not favor and will not support tax on services. I propose if they cannot cut spending then make it a fair playing field and increase the state sales tax across the board. That way we all share the pain. We also need to be successful in the passage of the proposed appraisal bill that will be carried to the hill. Many of you have worked with the appraisal board and now we need to support this bill into action. Have you heard the latest? Washington wants to take away mortgage interest deduction. Just how will that impact our lives? So, when you are sitting in front of your computer and you get a call to action as we did for the MID issue, take a moment and “just do it.” It costs nothing and takes mere seconds to act. If you cannot afford to support RPAC with your dollars, at least help with your voice. So once again, I plead for the last time, “just do it.” A special thanks to all the brokers in Kentucky, along with the agents throughout the state, for signing up with NAR’s Broker Involvement Program. If you have not heard by now, we tied for 10th nationally (first in our region). That is huge. So if you have not taken that step and want more information about the program, please ask your AE. I know they would be happy to get you involved. We weren’t as successful in securing new service providers on the level that I had hoped. One victory (Showing Suite) is good but not a very staggering overall percentage. I do hope each of you will give their service a try. They are a great provider and are providing a discount to all KAR members (visit the KAR website for more information). KAR will continue to try to negotiate with new real estate service providers to help reduce the cost of doing business. So if you know of a good product or service, pass it along to KAR. Another special thanks goes to the staff at KAR. I know there aren’t many of you that know them as well as I do, but I can tell you first hand, they are the best. Each and every one - Cinda,

John Smither 2010 KAR President

2011: A Year of Optimism This past year holds many memories for which I will always be grateful. It was an honor for me to be installed as the next president of KAR by NAR Region IV RVP, Jewell McKinney.

Tony Clark, 2011 KAR President

I personally thank each and everyone that attended the 2010 KAR Convention at French Lick and helped make it a very special memory.

Home Ownership Matters… To People… To Communities… To America. Studies show that homeownership has a significant positive impact on net worth, educational achievement, civic participation, health and overall quality of life. That’s why for more than 100 years, REALTORS® have helped people find their piece of the American Dream. Remember REALTORS® are needed, it is so important that we realize that we are an intricate part of the dream of homeownership. It is our role to bring the buyer and seller together to accomplish their dream. Remember, you have value and provide a valuable service, so always remember: every day couples marry, every day a child is born, every day someone dies, every day couples divorce, every day a house burns and every day someone acquires wealth. Each of these life changing events results in people making necessary changes in their lifestyle and need a larger or smaller home, or perhaps are leaving the area and need relocation assistance. Remember, you have value and can assist in each of these events. I look forward to serving each of you in 2011 and will be available to help you make dreams come true. Tony Clark 2011 KAR President

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Tools You Can Use Marketing Minute Facebook Places www.facebook.com/places Ever gone to an event, restaurant, movie, etc., only to find out afterward that your friends were there too? With Places, you can discover moments when you and your friends are at the same place at the same time. Or, as the case Places may be for real estate, you can show clients what you are doing i.e. working an open house, volunteering for a charity. Or, on the flip side, you can see what potential clients are up to as a way to connect with them. Places is a Facebook feature that allows you to see where your friends are and share your location in the real world. When you use Places, you’ll be able to see if any of your friends are currently checked in nearby and connect with them easily. You can check into nearby Places to tell your friends where you are, tag your friends in the Places you visit, and view comments your friends have made about the Places you visit. Use Places to experience connecting with people on Facebook in a completely new way. To get started, you’ll need the most recent version of the Facebook application for iPhone (if you use an iPhone). You also can access Places from touch. facebook.com if your mobile browser supports HTML 5 and geolocation. Go to Places on the iPhone application or touch.facebook. com site and then tap the “Check In” button. You’ll see a list of places near you. Choose the place that matches where you are. If it’s not on the list, search for it. You can also add a place. After checking in, your check-in will create a story in your friends’ News Feeds and show up in the Recent Activity section on the page for that place. This application does not work on all smartphones, however, Facebook is planning to roll out additional versions soon.

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Genius Scan Genius Scan, available for the iPhone, is an application that takes photos of just about anything – receipts, business cards, reports, etc. – and converts them into scanned documents. To use the application, you would simply open the app, choose “From Camera” and snap a photo. The photo will open inside the Genius Scan app, allowing you to enhance the image, crop it and/or rotate it - all creating a flat, accurate and very legible image. Once you’ve prepared your image, you can save it to a new document or add it to an existing one (the app doesn’t limit you to one photo image per document). You can add as many photos as you need to a single document. You can also rename the document and send it off as a PDF or leave in your library for later reference. The “From Library” feature can be used to analyze images already in your picture library, such as documents, artwork, etc. Genius Scan can essentially perform any scan function you would ever need. And, to top it off, it’s free and accessible from iTunes or by searching the app store from your iPhone.

Top Ten Signs You Need a Break From Social Media 1. You can tweet faster than you can talk. 2. You ask yourself “What would Ashton Kutcher tweet?” more than once a day. 3. You use Tom from MySpace as your only role model. 4. You live your life 140 characters at a time. 5. You live vicariously through your Facebook status. 6. You refuse to acknowledge people who are on MySpace. 7. Your real-life friends refuse to be your Facebook friends. 8. You have been fired due to a Facebook status update. 9. You have been named FourSquare mayor of more than five places. 10. You shared this post on StumbleUpon, Digg, Reddit, Delicious, Google Buzz, DailyMe, Bebo and Blinklist before you got to the end. According to Alex Cortez, Hawaii REALTOR® as posted to the FOREM blog.

Convert Your Documents www.pdftoword.com

How often do you receive a pdf document that needs to be edited but don’t know where to turn? There is a website out there that can help. It’s aptly called pdftoword and is entirely free with no software to download if you don’t want it (there is a desktop version available). Each time you want to convert a PDF to Word, you simply go on the site, upload the document, select PDF or RTF and put in your email address. You will then be sent the resulting document.

One of the great things about the site is that it also converts images very accurately. Here is what the company says about this feature: “Our PDF-to-Word converter is designed to convert and accurately re-position all of these upon conversion. Even for complex drawings and shapes with textures, patterns, and fills, we replicate the images, while maintaining editing capabilities.” They also claim to have a more accurate PDF to Word conversion than even high end desktop software products that you have to pay big bucks for. Other tools available on the site are www.wordtopdf.com (the opposite of what was discussed above but also available for free from other third parties) and www.pdftoexcelonline.com.

Realtor.com Receives Facelift www.realtor.com

If you haven’t checked out Realtor.com lately, you may be missing out on new features that have been added. The search feature, by way of a drop down menu, now provides access to active listings, new construction, rentals and offmarket (recently sold) properties. This enhancement enables buyers and real estate professionals to search for active listings, while providing access to sales and tax history from sold listings along with other relevant property data consumers and real estate experts can use to monitor local market trends as they navigate real estate together. Property listings on Realtor.com now present information so prospective buyers can better evaluate, compare and locate properties of interest. As part of the redesign, the listing detail pages now provide a categorized, at-a-glance summary of each property listing as well as features that were not available before such as property sales and tax history. A new “Find REALTORS®” section is free to agents and brokers and allows you to share your professional information, details on your company, information on the areas you serve, specializations, current listings, links to your company website, open houses, contact information, headshot photo and more with prospective clients. A new field allows users and offices to include links to Facebook Fan Pages, Twitter and other social networking sites with the added benefit of sharing your profiles.

Twitter Used Effectively www.paper.li

If you use Twitter, you know you are too busy to wade through all the irrelevant discussions, mealtime and location updates to get to the good stuff the stuff that makes it worth your time. There is now a tool that offers help in digging through the noise. It’s called Paper.li, an app that takes your Twitter stream and pulls out links to any news stories, photos, blog posts, etc., and analyzes them to determine relevance. The service then displays links and related content within sections on a page, similar to the way a newspaper looks online. If you want to see real estate related uses of the app, simply search the appropriate terms in the search feature.

Bits and Bytes Enhance Your Inbox www.rapportive.com

rapportive is among a suite of next generation of web applications that enhance our inboxes by mining public social networks for more information about all of the people we count as contacts. For now, Rapportive works exclusively with Gmail (good news to those of you who use this service). You install it by adding the plugin to your Google account. It’s a oneclick process and the app works in most browsers that support plugins (Firefox, Chrome and Safari). The most immediately visible change you’ll notice once you’ve installed Rapportive is that photographs for all of your contacts are now visible in your inbox. This is a small yet remarkable improvement to the Gmail experience, one that’s hard to underestimate. When you can see who you’re communicating with inside an email thread you start to build instant familiarity with that contact. Further, the contact’s profile is automatically populated with a brief bio and links to all of their active social networks. Even their latest Tweets are pulled in. The big picture for all of this, however, is two fold. Now your reputation is at stake. Rapportive demonstrates how disparate online presences will soon be woven together into a cohesive picture of how we present ourselves on the Web. Coupled with this, Rapportive also means greater access to deeper data on your customers. It means for both existing and prospective clients, you have access to an immediate snapshot of their online activity - the stuff with which you might find common interests and begin to build relationships. But this is a two-way street. It also likely that your customers will soon have a similar tool installed on their accounts. What you say, do and how you present yourself in your social networks will be at hand. Right there, in their inbox. For all the world to see. Other similar applications that can be used on other platforms: • Gist • Xobni Info provided by 1000Watt Consulting

WINTER 2010 KENTUCKY REALTOR® 7

Feature Article

WHAT DOES THE FUTURE HOLD FOR REAL ESTATE? The local perspective… In order to get a local viewpoint on the real estate industry as well as some insight on what skills are needed by agents to succeed in today’s marketplace, KAR asked brokers from across the state to answer two questions for this article. These brokers were selected to give a broad perspective to the issues, each bringing a unique outlook to what they are seeing in their markets.

Question 1: How do you see things shaping up in the real estate industry over the next 12-18 months both in Kentucky and nationally? Question 2: What would be the one skill or quality you will look for an agent to possess or develop over the next year?

Jim Huff HUFF Realty Eleven offices in Florence, Ft. Mitchell, Highland Heights, Anderson (OH) Mason (OH), Montgomery (OH), Western Hills (OH), Hyde Park (OH), West Chester (OH), Fairfield/Hamilton (OH) and Chillicothe, Indiana 677 agents Question 1: I look optimistically at the future of real estate over the next 12-18 months. Both locally and nationally, buyers are having exceptional success buying homes that are appropriately priced at the best interest rates we have seen in years. There will always be a market for buyers with the forethought to make a solid long-term investment. Tax credits and incentives are temporary, but low interest rates will be the motivating force behind the buyers of today. Question 2: I believe some of the most advantageous skills for an agent to possess are the abilities to prospect and persevere. The nature of real estate as an industry is variable and the capacity to persist through those variations is ideal. It is the agents who have maintained their business structure and continued to prospect in a down market who have proven the most resilient.

Coba Craig

SILVESTRI-CRAIG, REALTORS® One office in Lexington 20 agents Question 1: There presently is only one positive sign that the economy might begin to show some improvement within the next 12 - 18 months and that is the strong Republican showing in the recent mid-term election. This should begin to tighten federal spending somewhat and address the personal and business tax issues which currently looms large as barriers to any kind of a quick recovery. Residential sales in Kentucky are dismal as a result of concern for high unemployment. People may have a job today but know someone who could have said the same thing last month and now they don’t. People are very hesitant to assume more debt. The housing market is not going to improve in Kentucky or nationally until there is a clear trend in non-government job growth and the backlog of foreclosures begins to melt away. Anyone wanting to buy a home today, if they will do a little homework, can find a lender-owned property to purchase at a steep discount. Buyers can essentially purchase a new home at a wholesale price. In my opinion, while it is a great time to purchase a new home at historically low interest rates, it is a terrible time to sell your existing property unless you are willing to discount your perceived value to current market conditions. On the commercial side, purchasers continue to find difficult lending requirements. There is some activity for occupied commercial property if the buyer has reasonably strong financials, but investors are mostly on the sidelines unless they have strong cash positions and can find properties at bargain prices.

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Question 2: Actually I believe there are two traits that are essential for a person wanting to succeed in this business. One is perseverance and the other is determination. Most people entering the real estate field come from ‘workprocessing’ backgrounds. You get a job doing what someone else says to do, the way they say to do it, when they say, where they say, how they say, on the days they say, for the pay they say. Real estate requires a ‘work-creating’ mindset. Until you create a relationship, determine needs, acquire knowledge regarding how to meet the needs of the customer/ client and see the process through to completion, there is no material compensation. There will be more days of disappointment than of success, but life is like that. Some days you get the bear and some days the bear gets you. If an associate does not have perseverance and determination to succeed, most likely they will not.

Loretta Jobs CENTURY 21, Loretta Jobs REALTORS® One office in Murray 6 agents Question 1: There are reasons why the real estate market will not turn around in the next 18 months nationally. In the year of 2011, there are four more waves of adjustable rate mortgages (ARMs) with interest rates set to adjust upwards from their low teaser rates. In our town, however, our lenders have limited ARMs; therefore we will not be as affected as the rest of the nation. As more and more homes go into foreclosure on the national level, the financial institutions will have no choice but to continue tightening their lending standards. However, since most of our area has little foreclosure activity, I don’t believe western Kentucky real estate will be impacted like the rest of the country. Question 2: An agent should be efficient in technology including, but not limited to, smartphone, laptop, headset and/ or bluetooth, mobile broadband and being able to navigate the social media environment in order to build profitable relationships with new and past clients to better serve both.

Jerry McMahan Coldwell Banker-McMahan Co. Eight offices in Louisville, Elizabethtown, Crestwood, Winchester, Richmond, Georgetown and New Albany, Ind. 225 agents Question 1: In Kentucky, the market has very little confidence or consistency and we are dealing with a weak economy and uncertainty in the job market. The first time home buyer tax credit was good but it didn’t have the effect I thought it would on upper end housing. I thought

there would be a domino effect that never really happened. We are starting to see the average sale price in our markets increase slightly and I feel that trend will continue over the next year. We all need more buyers to make things happen, especially while interest rates are so good. I feel our market will increase gradually and so will units. Nationally, we belong to a group called LOG (Large Office Group). We meet with companies across the U.S. to compare markets. While Kentucky is down, we are not as bad off as some other markets, especially markets that are tied to resorts and second homes. The number of foreclosures has an effect on all our markets and that probably won’t change much in the next year. Question 2: An agent should be serious about this business and willing to work hard. The days of putting up a sign and waiting for the buyer is over. Agents need to be re-educated in area of short sales, foreclosures, negotiating with banks, etc. The top producing agent will be ok - they know how to do it. We need the other agents to step it up.

Kirk Tinsley Crye-Leike Executive Realty One office in Bowling Green 51 agents Question 1: Now is a crucial time for our country and for real estate. Nationally, REO’s and foreclosure sales will continue to remain prominent in the market due to shadow inventory, reaching some 5 million homes (nationally 1 in every 10 homes are in some form of foreclosure). I see the issues with Fannie Mae and Freddie Mac looming due to another possible 300+ billion dollars needed so both can stay afloat, which will no doubt have another impact on all REALTORS®. In Kentucky, our issues are like the rest of the country. The need for jobs and slow inventory turnover will continue for the foreseeable future. Well priced homes are still selling, just not at the rate that we would all like them too. REALTORS® need to stay focused and make sure to do their job in a professional manner and help clean up the market as quickly as possible. Question 2: Agents must develop an expert understanding of the ever changing market statistics. REALTORS® have always been the source for this information but in today’s tricky market, an agent must know the market stats inside and out. Issues like unrealistic sellers, stricter loan requirements and appraisals, have made it a very tough environment for today’s REALTOR®. We must also compete with online valuations that may not be very accurate. There are plenty of online sources for real estate information and unfortunately a great deal of it is just not very good. Some websites care about selling ads more than accuracy, so it is so important to know the market and

WINTER 2010 KENTUCKY REALTOR® 9

Feature Article be able to back it up with what is happening now, not 6 months ago. We all knew the tax credit would create a lull in the market for a few months and it has. It is important that agents and sellers are aware that this was expected and not to panic. The market will rebound eventually, so agents must plan on working a little harder until it does.

Kathy Sears Key Associates Waterfront Realty One office in Somerset 14 agents Question 1: As far as the market, I really see it staying pretty much the same until early spring of 2011. I think until the short sale and foreclosed inventory diminishes both locally and nationally, our present inventory will be harder to sell. With the election over and changes that have been made in government, I think some buyers will now have the confidence to purchase a home and take advantage of the lowest interest rate in years! Most of our builders locally have stopped or cut their construction of new homes in half, but I do feel they too will make a push in early spring to get back in the market. Question 2: An agent must have knowledge of the market place. They need to keep themselves informed of mortgage programs as well as provide the right tools to sellers to move their property. They must also have persistence, motivation and perseverance! It’s also critical for them to position themselves in all marketing avenues such as Trulia, Zillow, Facebook and their own personal internet sites that keep their name in front of potential clients. Developing a business plan and staying focused will also help. I think agents who have weathered the storm the past several years will be in perfect shape when the market opens again.

Brad DeVries

Semonin REALTORS® Eight offices in Louisville, LaGrange, Elizabethtown and New Albany (IN) 585 agents

Rector Hayden REALTORS® 6 offices in Lexington, Georgetown, Versailles, Winchester and Paris 285 agents Question 1: Looking forward a year or two, I think that the market we have today is what we can expect - cautious buyers, questionable consumer confidence, high unemployment and more foreclosures to come. All of this will be somewhat offset by historically low interest rates and consumers who finally accept the fact that they still desire a new home…or still have to sell.

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Builders and developers will still be slow, but we will start to see a little life in that area as well. Prices will continue to fall nationally, but this will be one area where we will not experience as much pain. Our prices never took the “rocket ride” that some of the other major markets took, so consequently we will not fall as far. I think our market will be good and steady. Question 2: My hope is that our agents will recognize the need to consistently “be there.” By that I mean prospect, connect and communicate. Daily basic activities (calls, notes, mailings, open houses) will be a must going forward. Our agents who continue to focus on the fundamentals will continue to realize success. Those who are sitting back, stunned by the slower pace of sales will continue to struggle. I also hope that our team will realize the importance of “community.” Coming into the office, attending sales meetings, participating in coaching - just plain “sharpening the saw.” Iron sharpens iron, and the energy created is hard to deny!

Tony Clark

Tony Clark REALTORS®, LLC Two offices in Owensboro and Hawesville 20 agents Question 1: The real estate profession will experience changes in many areas. One of the areas will be in financing, as we return to the days when the purchaser must have a down payment, stability in career and good evidence of being able to repay a loan before being approved. I also envision new programs through FHA with the lender and purchaser partnering together to make financing attractive and affordable. Home ownership is the American Dream and real estate agents, lenders and the government will have to work together to help make dreams come true. Question 2: A successful agent must have a positive attitude, as they are more successful, resilient, happy, inquisitive, trustworthy and able to adapt to the changes of a global and technical world. People with a positive mental attitude are the ones that are working harder, enjoying it more and the first to provide service to the client. Our thoughts do become our reality and to be a winner, one must possess a positive attitude.

Legal Update Kentucky’s New Condominium Act During the 2010 Regular Session, Kentucky’s General Assembly enacted H.B. 391, known as the Kentucky Condominium Act (KCA). The KCA is found in the Kentucky Revised Statutes at KRS 381.9101 to 381.9207, and takes effect on January 1, 2011. Transition Rules The KCA governs all new condominium regimes created after January 1, 2011. But please be aware that the provisions of the old Kentucky Horizontal Property Law (KHPL) will continue to govern condominium projects created before January 1, 2011. As provided in KRS 381.9103, some of the provisions of the KCA will apply to condominiums created before January 1, 2011, but only regarding events or circumstances arising after January 1, 2011. In addition, unit owners holding one hundred percent (100%) of the votes of a condominium association may elect by unanimous vote to be governed by the KCA, so long as they update their declarations, bylaws, plats and plans to follow the new KCA.

Article 1 Article 1 of the KCA contains definitions and general provisions that apply throughout the KCA. Importantly, the definition of “unit” is updated to include spaces that are not enclosed. As a result, after January 1, 2011, condominium “units” can now include dock slips, parking spaces and areas on roof tops.

Article 2 Article 2 of the KCA addresses the creation, alteration, and termination of condominiums, and provides greater flexibility to developers in meeting the needs of modern real estate markets. Article 2 also imposes reasonable restrictions on developers’ practices that can potentially harm unit purchasers.

budget, fees, capital reserves, outstanding judgments, insurance and expected capital expenditures for the next two years. Nonresidential condominiums may waive the certificate requirement, and certain limited transactions will not require a certificate. Buyers may void the sales contract if sellers fail to provide the required information within five days prior to closing.

Final Words The passage of H.B. 391 will finally bring Kentucky’s condominium laws into the 21st century, and in-line with modern real estate practice. For years, real estate professionals have had to make do with condominium rules that don’t make sense and that posed unreasonable risks on developers, lenders and purchasers. The clarity and flexibility of the new KCA will provide buyers the information they need, while giving incentives for both developers and lenders alike to reconsider using the condominium form of ownership for their next real estate project.

Article 3 Article 3 governs the management of condominium projects, and provides broad-ranging powers to condominium associations to address insurance, tort and contract liability, and other matters often not dealt with in the current KHPL.

Doug Martin is Legal Counsel for the Kentucky Association of REALTORS® and maintains his private law practice in Lexington, KY.

Article 4 Article 4 requires all sellers of condominiums governed by the KCA to provide purchasers with a copy of the condominium’s master deed as well as a “seller’s certificate” containing certain informational items and disclosures, including the association’s

The previous discussion should not be viewed as legal advice. Please consult your attorney.

WINTER 2010 KENTUCKY REALTOR® 11

Business Tools

10 Simple Steps to Attract Killer Reviews By Frances Flynn Thorsen, SRS, e-PRO

Online ratings are the new media rage! Consumers share reviews online about everything they purchase and every service professional they meet. With few local exceptions, the real estate social space has scant few places at the table for trustworthy and passionate agent reviewers. Writing recommendations for others will ignite a reciprocity exchange and social adrenaline will move recipients to respond with their own recommendations. Brian Clark of Copyblogger writes:

• Foursquare is the latest social mobile rage where agents find themselves checking in everywhere. Take advantage of the “tips” section and offer detailed narrative for richer engagement.

“Sociologists maintain that all human societies subscribe to the principle that we are obligated to repay favors, gifts, and invitations. It makes sense, really; reciprocity is at the root of what makes us human, and has allowed us to adapt and progress from early primitive tribes to a complex global economy.”

• Honestly.com (formerly UnVarnished.com) is a new rating site for professional users. Reviews are anonymous and the recipient of a review cannot delete it! Honestly.com has a value proposition based in believability, designed to satisfy a growing appetite for more diverse reviews, good and bad.

Imagine a prospective client sees a thread of recommendations from people at all stages in your career. Imagine the confidence you can inspire with written testimony of your service. The best strategy to attract reviews is to write reviews for others!

Don’t waste time looking for a decent agent review site – Agent review innovation is principally a local phenomenon. (i.e. Redfin, and Houston and Colorado REALTORS®). Most Web developers’ attempts in recent years to devise agent review websites yield dismal results. Agent Invitation and Agent Scoreboard feature paltry data, incomplete profiles, and little to no engagement in most states. Agentopolis, AgentRank, and Incredible Agent feature deceased agents in their databases years after the agents’ demise.

Create a list of people with whom you have worked – Who are your favorite strategic partners? Who are the lenders, title reps, and home inspectors who serve your clients well? Use a memory jogger, or other similiar tool, and add names to the list for review consideration.

Make a recurring testimonial appointment with yourself each week – Write at least five testimonials each week. This is one of the most important parts of a social media engagement plan. Few engagement models offer so many immediate and long-term benefits from consumers and real estate professionals. Don’t let the appointment slide!

Compliment, do not compete – The social media lexicon favors collaboration over competition. Grace at least one competitor with a favorable review or testimonial each week. Brokers earn social capital that pays dividends over time in their recruiting efforts. Agents curry favor with cooperating agents who look forward to working with them again.

Write a recommendation for a colleague – Don’t forget to acknowledge your fellow workers when you are complimenting the competition!

Create a list of strategic testimonial and review sites. • Your blog is the best first place to post reviews and testimonials about local eateries, businesses, and services. • LinkedIn offers 65 million plus members a managed solution to write and receive recommendations about their connections. Create thoughtful, personal testimonials on LinkedIn and copy them to a Word document to republish on other social sites. • Yelp features user generated reviews about restaurants and local businesses, including a real estate review category. Claim your company listing there (before a competitor claims it) and commence writing reviews on local businesses. Scottsdale (AZ) Homesmart agent Stew Keene has written 63 local reviews, shared 19 local photos, and created Yelp lists of “Best Places to Eat in or Near Scottsdale,” “Best Biker Bars,” and “Phoenix/ Scottsdale Motorcycle Dealerships” with rankings for each mention in the list.

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CAUTION: Many real estate agents and brokers work with family members on staff. If your family member has the same last name and holds a position in your company, do NOT write a LinkedIn recommendation for that person. A recent visit to LinkedIn found a boomer agent’s offspring sporting a “social media manager” title for the agent’s business. The young guru has 25 LinkedIn connections and a single recommendation – from her mother! This strategy scores zero on a believability index.

Be totally honest with each review! Do NOT laud a person or a business who has not earned the praise! Gratuitous testimonials are transparent. If you tell someone the event you attended last week featured the worst speakers you ever heard, and you felt the registration fee was a rip-off, do NOT post a congratulatory video with your Flip outtakes. “Positive and negative feedback is more realistic, and that’s what consumers want,” says Inman News Contributor Frank Borges Llosa, real estate broker in Falls Church, VA.

Say, “Thank You” in writing for positive reviews and testimonials – Acknowledge positive feedback personally, with a private note between you and the person who wrote your testimonial. Handwritten notes using pen and paper will get the most attention because it is the least commonly used form of written communication these days.

Write a book review, buy a box of books, and give them away – Publish a good book review on your blog and post it on Amazon. Be honest!

The best strategy to attract reviews is to write reviews for others.

Scottsdale broker Luetta NewNam wrote a book review for Ilyce Glink’s new book, “Buy, Close, Move In!” and posted it on her blog following a personal meeting with the author. (She discovered Glink’s book in an Amazon review). NewNam purchased dozens of copies of the book and she gives them to clients and customers and other Realtors. The broker’s book giveaway is an elegant alternative to the abbreviated home buyer guides other Realtors offer. Writing book reviews is great practice to get “in the flow” of a testimonial directed mindset. If you do not like a book, say it in a review. Writing an honest review about a book or product you do NOT recommend will increase your believability score overall.

Review and remove testimonials when circumstances change – Some relationships change from good to bad. Assess conditions where testimonials and reviews no longer apply. Delete them accordingly. Treat inbound and outbound testimonials equally. Do not feature a testimonial to or from a person you do not trust and respect.

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Legislative Update 2010 Kentucky Election Results After the much anticipated elections the House remains Democrat and the Senate remains Republican. The House went from 65 to 58 Democrats and 35 to 42 Republicans. The Senate went from 20 to 22 Republican and 17 to 15 Democrats with 1 Independent. The Kentucky General Assembly will convene for the 2011 session on January 4, 2011. Below are the new members of the Kentucky General Assembly:

SENATE Joe Bowen (R) District 8 – Daviess and McLean Counties Dennis Parrett (D) District 10 – Hardin and Jefferson Counties Paul Hornback (R) District 20 Bullitt, Shelby, and Spencer Counties

Mike Wilson (R) District 32 – Bulter and Warren Counties Jared Carpenter (R) District 34 – Lincoln, Madison, and Rockcastle Counties

Legislative Issues Facing Kentucky in the Upcoming Session When KAR returns to Frankfort in February, there are several issues that will need attention as they could have dramatic implications to the real estate industry within Kentucky’s borders. These issues will not only affect home buyers and sellers, but members as well. Sales Tax on Services Applying the sales tax to real estate services could likely reduce the demand for housing by effectively increasing the cost of purchasing a home. KAR will be conducting research to see how this item would affect the members of our association.

Private Transfer Fees Private transfer fees require sellers to pay a sum to developers - usually 0.5 percent to 1 percent of the sale price of a home. Private transfer fees are meeting with increasing resistance around the country.

HOUSE Ben Waide (R) District 10 – Hopkins County Michael Lee Meredith (R) District 19 – Edmonson, Hart and LaRue Counties Julie Raque Adams (R) District 32 – Jefferson County Wade Hurt (R) District 37 – Jefferson County Mike Nemes (R) District 38 – Jefferson County Sara Beth Gregory (R) District 52 – McCreary, Pulaski and Wayne Counties

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Kim King (R) District 55 – Anderson, Mercer and Spencer Counties Ryan Quarles (R) District 62 – Fayette and Scott Counties Donna Mayfield (R) District 73 – Clark and Madison Counties Rita Smart (D) District 81 – Madison County DeWayne Bunch (R) District 82 – Laurel and Whitley Counties John Short (D) District 92 – Knott, Letcher and Magoffin Counties

Kentucky S.A.F.E. Act This legislation passed last year and there are some questions regarding individuals being able to make mortgage loans with their own funds (seller financing and contracts for deed). KAR will be working to broaden the exemption for seller financing. This type of financing can be crucial in certain markets, especially in times of economic stress.

Redefining “regular employee” It is practice for builders/developers and a property manager to give bonuses to their employees but the current law in Kentucky can interpret an employee bonus as a commission. KREC filed HB 357 last year and this bill was eventually withdrawn. In the license law, “regular employee” would need to be redefined.

KY Open Records Law The Governmental Affairs Committee will be working to find the best way to possibly eliminate or standardize fees for tax assessments and county clerk records around the state.

NATIONAL ISSUES To read more on each issue below, visit www.realtor.org/government_affairs

The 3.8 Percent Tax: Impact on REALTORS ® Beginning January 1, 2013, a new 3.8 percent tax on some investment income will take effect. Since this new sales tax will affect some real estate transactions, it is important for REALTORS® to clearly understand the tax and how it could impact clients. It’s a complicated tax, so how it will affect every buyer and seller is unpredictable. Find out more at www.realtor.org/healthreform.

NAR Outlines Mortgage Interest Deduction Concerns When the MID issue was brought into the spotlight weeks ago, NAR sent a letter to the Deficit Reduction Commission’s discussion leaders warning that, although early deficit commission proposals to pare back the mortgage-interest deduction were tentative and unbinding, they could have a chilling effect on potential buyers. At the first of December, President Obama’s deficit commission released its final report recommending a host of controversial spending cuts and tax changes that included a scaled-back mortgage interest deduction (MID) for home owners. NAR immediately challenged the recommendation to reduce the deduction stating the MID is vital to the stability of the American housing market and economy. Find out more at www.realtor. org/homeownership.

How did RPAC fare? RPAC is nonpartisan and has continuously supported candidates who support issues that affect REALTORS® in Kentucky.

PARTY HOUSE RPAC supported 69% Democrats and 31% Republicans SENATE RPAC supported 32% Democrats, 63% Republicans, and 5% Independents COMBINED (HOUSE/SENATE) 50% Democrats, 47% Republicans, and 3% Independents

SUPPORTED CANDIDATES HOUSE 93% of RPAC supported candidates won SENATE 83% of RPAC supported candidates won COMBINED (HOUSE/SENATE) 88% of RPAC supported candidates won

REALTORS® Strive to Streamline Short Sales Through HAFA HAFA was intended to help owners who are unable to keep their home under the Making Home Affordable Modification Program avoid foreclosure by streamlining the short sales process and providing incentives to lenders that complete short sales. Efforts are being made to improve the short sale process through the Home Affordable Foreclosure Alternatives Program.

New 1099 Reporting Requirement for Landlords During 2010, two new information reporting requirements have been added to the duties of property owners and owners of small businesses (including self-employed individuals and independent contractors). Both provisions are permanent. Starting in 2011, any person who receives rental income must provide a Form 1099 for all payments of $600 or more made to service providers.

Congress passed flood insurance and loan limit extensions On October 4, Congress passed an extension of the loan limits for Freddie Mac and Fannie Mae (the GSEs) and FHA. Under the bill, the current loan limits will remain in place through September 30, 2011. Extending the loan limits was necessary to avoid potential market uncertainty. Additionally, Congress passed, unanimously, a one-year extension of the National Flood Insurance Program (NFIP) to September 30, 2011. With program authority now extended for a year, it is expected that attention will now turn to proposals to reform and ensure the financial soundness of the NFIP.

To keep up with legislative issues in Kentucky, visit www.kar.com > Government Affairs > Issue Tracker

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RPAC In 2010, the following REALTORS® contributed to the REALTOR® Political Action Committee (RPAC) at the major designated levels. By contributing to RPAC, you are able to support REALTOR®-friendly legislators who believe in our industry and protecting private property rights, preserving the American dream of home ownership, fighting for tax reforms and reducing burdensome regulations on our business. Hall of Fame members (listed in color) have contributed to RPAC a cumulative amount exceeding $25,000. *President’s Circle

Big Blue R

Karen S Mundy

Gregory T Lile

Mike Ballard

Jesse L. Case

($1500 and up)

Charles Nichols

Philip H. Losey Sr

James L Barlow Sr.

Pam Catlett

Tony Clark*

R.”Rip” I Phillips

R Douglas Martin

Connie L Barnett

Kenneth O Cayce III

Guy Montgomery*

Jeffrey T Sleadd

Dana F Martin

Connie L Barnett

Karen K Cecil

Harrell N Tague Jr.

Jeffrey L Smith

Louise M Miller

Ruth Baumrucker

Mark Church

John W Smither

Janet L Perkins

Daryl S Benzel

Linda R Cissna

Pat M Pride

Karen Bhatt

Donna R. Clark

Pearl R

Steve Pulliam

Santosh S Bhatt

Cindi Calvert

($250 to $499)

James Bramblett

J. Richard Queen

David C Bischof

Jerry A Clendenin

Carl E Adams

Steve K Cline

Gay N Rittenberry

Jo Bishop

Ray D Cobb

C. Gary Adkinson

Anthony de Movellan

Stephen A Robinson

Nancy R Black

Charles A. Collier

Rick O Baumgardner

Patricia M Edison

David P Schoepf

Katrina L Blomquist

Harriet A Conely

Michael H. Becker

Carolyn S Edwards

Kathy P Sears

Linda M Blue

Jef F Conner

C. Lamont Breland III

Susan Helm

David L Sturges Sr.

Marsha L. Booth

Nancy Cook

Linda Gibson Cecil

Brenda Loyal

Greg Taylor

Pat H Borg

Whit Courtenay

Nelson Collins

Rue O McFarland

Rebecca J Trout

Katie Bosse

Chris Coury

James W Cook

Jerry McMahan

Sharon W Tyler

Pamela Bottoms

Thomas C Cox

Jayne Cox

Charlie Murphy*

Kenneth W Warden

Ruth Ann Bowen

Linzie T Craig

Judy A Craft

Lisa L Presley-McGrew

Casey R Weesner

Rod Bowling

Marti L Crisler

Diana Davis

Joann K Risner

Joan Z Whitman

David L Bray

Pamela L Crockarell

Shirley A DeBoor

Betty A Schutte*

Debbie Williams

Michael A Brewer

Marilyn Cundiff

Lydia Drexler

Joseph E Simms

Connie H Brooks

Rick Curby

Beverly Duncan

Carl Tackett

Commonwealth Club

Pamela S S Brooks

Gwynith Danner

John Fischbach

($99 to $249)

John J Weikel II*

Freddie Brown

Betty Darnell

Barbara B Flannery

Leonora A Absher

Jewel Buckley

Donald E Davis Sr.

Larry R Gillette

Dianna Ackerman

Douglas Budd

David Davis

Erika C Gudenkauf

Norma Adams

Pitsy M Buren

John S Davis

Katie Gunterman

Cynthia K Albright-Parrish

Thomas R Burke

David R Day

Jack Hoffman

Ton A Ali

John Burns

AnnElizabeth Delahanty

James H Huff

Neleda Allen

Wm. E. Buzan Jr.

Jim C DeMaio

Ronald E. Hughes

Sharon A Angermeier

Jennifer Carroll

J. Ray Diuguid

Paul D Jordan

John E Aubrey

Tracy M Cary

Cathy Doolin

Constance C Lawson

J. Charles Ballard

Sterling R ($1000 - $1499) Dennis R Anderson

Thoroughbred R ($500 to $999) Ray DeSloover Donna W Ensminger Michael Farrar Brenda J Lee William Leslie

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Myrna Downing

Cindy Hack

Bettie H Kincaid

William M Myers

Beverly A Sherrard

Ned A Werling

Glenn C Edelen

Debra Haddad

Julie Kinsolving

Joyce A Nay

Cris W Sims

Tonja West

Louise Edelen

Pat Hagan

Nina A Kirkland

Kelley M Nisbet

David E Sims

Stan White

Joyce M Erskine-Jordan

Betty L Hall

Krystal Kirkman

Rosemary L Nobles

Trudy L Singleton

Isla D Wieting

Marcie W Estepp

Emmitt Hamilton

Jacqueline W Klein

Patricia Nuccitelli

Sharon A Smith

Norma L Wileman

April S Ethington

Deni Hamilton

Kathy Kopperud

Deborah M Nunley

Jeff W Smith

Linda J Wiley

Helen Fardo

Joseph Hampton

William R Kopperud

Paul J Ogden Jr.

Steve Smith

Shawn P Willard

Billie K. Farless

Robin Marie M Harpring

Kurt H Krug

Anne G Padon

Charlotte M Smith

Keith L Williams

Kevin R Farris

Dorothy E. Harris

Evelyn M Lacey

Scott Panella

Colleen Smith

Ed Williamson

Dawn Farris

Jeff S Harrison

Mark A Lechner

Ashley S Parker

Janette Smith

George M Williamson

Stacey R Fergerson

Ellen L. Harris

Lisa C Smith Lippy

F. Hill Parker

Marie Smith

Betsy L Wilson

Penny Ferguson

Mark Hass

Philip H. Losey II

Regan Parker

Torrey M Smith

Ray Wilson

Richard T Filippini

Larry G Hayes

Pearl M Luttrell

Kevin Payne

Sherry Spanyer

Harold H Wimsett

John F Fischer

Stephen Heartsill

David O Lynch

Roger D Peyton

Linda C Sparrow

Louis A Winkler

Susan R England Fischer

Leslie D Heath

Scott A Lyons

Victoria Pimentel

Darrell Spencer

Beverly A Withers

John G Fister

Karen Helm

Angela Maloney

Stephen F Priest

Deborah Stephens

Aaron Withrow

Maurice Flegle

Marilyn B Helvey

Meg Manning

Lawrence S Profumo

Lisa Stephenson

Earleene W Woods

Charles M Ford

Leesa Hill

Robert H Marrett

Evelyn J Pusateri

Amanda V Stepp Y

Donna Workman

George Foree

Tammy Hoehler

Gertrude Martin

Jean Pyles

David L Stewart

Jo Wright

Donna V Foster

Rick Hogue

Jennifer Mateyoke

Russell V Quick

Linda Still

Alma R Yeary

Donald R Foster

Joseph L Holcombe

David Mattingly

Judith Quigley

Sam Stockard

David Yunker

Donald G Foster

Melody Holder

Floyd McCarty

Patricia A Radcliff

James A. Stofko

Karen S Fox

Lynda G Houck

Kathy F McGann

Betty Radford

John A Stough

Cathy Franck

Nancy Hubert

Robin McCormick

Norma G Rapier

Rich Streicher Sr

Valerie Fredrick

Wanda L. Huffer

James W McKee

Arthur Reed

Phil Terry

Kathy A. Freiberger

Debbie Huff-Weiss

Jewell A. Mckinney

Theresa E Reekers

Tom Thieneman Jr.

Pat Galloway

John F Huggins

Sue Ann McKissick

Luly Reinhardt

Lynn R Thomas

James R Gambill

Bobbi G Inman

Sandra F McMillan-White

Nelson H Rennekamp

Judith L Todd

Mike Gandolfo

Larry J Inman

Jesus Menendez

Kenneth Reutlinger Jr.

William B Todd

Rose Garant

Linda Jenkins

Dennis Miller

Donnie Roberts

Sharon G Toms

Douglas A Garner

Loretta C Jobs

Lynda Minzenberger

Nancy Robertson

A. Larry L Trautner

Larry Gatti III

Thomas P Johns

Barbara B Miranda

Larry K Rogers

Richard Y Vreeland

Arthur Geissler

Bobbie Johnson

Jennifer L Misener

Dora Rohleder

Colleen E Walker

Eston Glover

Kelly Johnson

Kelly B. Mitchell

Rowena Rollins

Etta Walker

Marcella M M Goff

Melissa Johnson

Rebecca Mobley

Brenda Rowland

Paul K Walker

Tonita P Goodwin

Rebecca W Johnson

Elizabeth Monarch

Grace P Rucker

Obey T Wallen

Brenda G Gooslin

Paula P Johnston

Lou Ann Moore

Pam Ruckriegel

Helen E Walter

Richard Grammer

Norman Jones

Philip Moore

William E Rudd Jr.

Rick Walters

Glenn E Green Jr.

Kenneth H Jones Jr.

Brenda Morgan

Lester Sanders

Barbara B Wathen

Linda Greenwell

Rhonda O Karageorge

Christine L. Morgan

Mark Schaffer

Suzy N Watkins

Robert G. Grimsley

Charles Kavanaugh

Reva Morris

Jan Scholtz

Cheryl Watson

Sandy Gulick

Daniel R Kessler

Becky Murphy

Kendell L Seaton

Janice M Waugh

Emily Hacker

Kathy C Kimbel

Douglas Myers

Ronald Shaver

Nelson B Weaver

For more information on the value of RPAC and how it works for you, contact Anetha Dunn Sanford, Governmental Affairs Director, at anethad@kar.com or 800.264.2185.

WINTER 2010 KENTUCKY REALTOR速 17

Marketing HouseLogic Offers Free Marketing Tools

What is HouseLogic? HouseLogic is a comprehensive website that helps homeowners make smart decisions and take responsible actions to maintain, protect and increase the value of their homes. Unlike other homeownership websites, HouseLogic helps consumers view their home through a financial lens. Users can set goals for saving money on their home and increasing its value and easily track the progress they are making on those goals. HouseLogic provides a virtual binder, where they can save relevant information, create to-do lists and set reminders. The website is personalized for the user based on information they provide in the registration process: how handy/ambitious they are regarding home projects; what their information priorities are: increasing the value of their home, tax credit information, improving their neighborhood, home finances and where they live geographically.

What’s in it for REALTORS ®? Among other things, through a special members-only section of the site, the REALTOR® Content Resource, you can access premier HouseLogic content to use in your e-newsletters and websites. Easily integrate this content with your communications efforts and continue the conversation with your clients long after the sale.

What can the REALTOR ® Content Resource do for you?

As a REALTOR®, you need regular content for your client communications and NAR’s free source, the REALTOR® Content Resource (RCR), allows you to choose from hundreds of articles on homeownership, homebuying, and selling to help you keep in touch with consumers before and after the sale. RCR now has the ability to share this content via Facebook, Twitter, and e-mail directly from your account. And each time you log into RCR with your NRDS ID to share articles with consumers, you can enter the REALTOR® BuildYour-Business Sweepstakes, which offers monthly drawings for an iPad and weekly drawings for $150 Visa gift cards.

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How do you use the REALTOR ® Content Resource in your business?

It’s easy! Once you log in to the REALTOR® Content Resource, just type in your NRDS member ID. You’ll be prompted through a quick, 3–step process: 1. Select the articles to share (Browse by theme or keyword). 2. Choose how you want to share the articles (Facebook, Twitter, email, blog, website, e–newsletter, or printed handout). 3. Share articles with your clients and customers.

More FREE Content You can also build your own HouseLogic widget (content module) to use on your website or blog. There are two ways of doing this. One through a standard module that is pre-set in size using HTML and the other is a customizable widget that you can define the size and layout to fit the format you are using.

Get started today. Visit www.houselogic.com/members

By using HouseLogic content, a free benefit, NAR members must abide by the site’s Reprint Rights Policy. The policy requires that content be attributed properly - both to HouseLogic. com and the article’s author - and content may not be changed, manipulated, or edited in any way.

Education Don’t get hit with a $500 fine

Live Web Cam Classes – New Offering

Licensees need to obtain the annual education requirements set by the Kentucky Real Estate Commission or face a $500 fine. Don’t worry - the Kentucky Real Estate Education Foundation (KREEF) has you covered. You can earn CE credit for your real estate license without leaving your home or office and take it at any time that fits your schedule. KREEF has three courses to choose from and they can be taken anytime and anywhere – 24/7. All that is needed is a computer and internet access. Register now - visit www.kreef.org > Online Education.

There is another great way to earn your CE and CORE without leaving your home or office through live web cam classes. With these classes there are no final exams to pass and they are offered at times convenient for your schedule. Since the class is live and online, you will need a web cam and microphone (if your web cam does not have audio) so the instructor can monitor your presence during the class. Demo classes and system checks are available before you enroll so you have the comfort of knowing the format will work for you. To learn more about these classes and to see a complete schedule, visit www.kreef.org > Live Web Cam Classes.

Environmental Issues in Real Estate 6 hours (3 hours law credit & 3 hours elective credit) Cost: $50 Real Estate Finance Today 3 hours (3 hours elective credit) Cost: $30 Fair Housing 3 hours (3 hours law credit) Cost: $30

KAR introduces webinar series As a way to reach members with timely information on a variety of topics, KAR is putting together a series of webinars. Initially, these webinars will focus on legal issues (the first of which has been posted online), however, our goal is to expand into other areas and have them available on the KAR website. At times, members may be able to participate in a live webinar and information will be sent when this option is available. A new webpage at KAR has been created to host the recorded webinars as well as a one-stop shop for other webinars available. Members and associations are encouraged to use these resources as they become available. To access these resources, visit www.kar.com > Media Center > Webinars.

Want to earn a NAR designation online?

REALTOR® University, the online education portal through NAR, provides online courses leading to NAR’s official family designations and certifications - ABR, ABRM, CIPS, Green, SRES, AHWD, RSPS, REPA, TRC and more. The REALTOR® University site offers more than 400 hours of real estate education and professional continuing education to help members build skills and earn designations and certifications that differentiate them from the competition. There is also a webinar center available that provides information on timely topics that will help you succeed in your business. Online courses through NAR are not approved for CE in Kentucky. To find out more, visit www.kreef.org > REALTOR® University.

REALTOR

University

KREC introduces online license renewal The Kentucky Real Estate Commission (KREC) will be making a few very important changes during the next license renewal year. The most important change will be that everyone must renew online, including active licensees, who will no longer renew through their principal brokers. All licensees (active and escrow) will need to have a valid email address in order to complete the renewal process. Principal brokers must register their firms AND renew before any of their licensees can renew. In February of 2011, each licensee will receive a mailing containing his or her license number and a password. Principal brokers will receive two mailings; one with information about the registration process, the other will include their password. Principal brokers should register their firms as soon as possible after the system opens for registration in midFebruary. The system will be available for all licensees to RENEW on March 1, 2011. Escrow licensees can immediately renew online beginning on March 1, 2011. Active licensees will be able to renew as soon as their principal brokers have registered their firms and renewed their own licenses. The new online renewal program will allow licensees to make payments by credit card, debit card or bank draft. This change addresses licensees’ concerns about the limited forms of acceptable payment methods in the past. Ease of access, payment options, immediate notification and improved communication are all benefits of this system.

30 Under 30 – Do You Have What It Takes?

Each June, REALTOR® Magazine features 30 rising young stars in the real estate industry. Applications for the 2011 class of “30 Under 30” are due by Jan. 15, 2011. Any REALTOR® member of NAR who is under age 30 as of May 31, 2011, and who has not been profiled in a previous “30 Under 30” feature, is eligible for the 2011 feature. NAR looks for candidates who are successful in the real estate business and who have demonstrated ingenuity and creativity in their careers. They take into consideration innovative marketing ideas, unique personal stories, tales of triumph, and leadership in the community and the profession. NAR also strives to ensure that the “30 Under 30” honorees represent the diversity that exists in the business. To learn more, visit www.realtor.org and search for “30 Under 30.”

WINTER 2010 KENTUCKY REALTOR® 19

Convention Update

BOD Action Items from Convention • Approved the 2011-2013 KAR Strategic Plan & 2011 KAR Budget. • Approved forming a Young Professionals Network Chapter for Kentucky. • Change to how committee work is handled at KAR is as follows: A quorum for all KAR committees shall be a majority of the total membership of that committee. A quorum must be present in order for any official action of the committee to take place. • All members of the Legislative Quick Response Team will now serve as members on the Governmental Affairs Committee. • Professional standards hearing panels will continue in 2011 with 3 panel members and 1 alternate. • KAR, on behalf on the KREC Selection Committee, submitted the following names to the Governor for consideration as a Commissioner to be appointed to the Kentucky Real Estate Commission: Linda Gibson Cecil (Louisville), Susan Lee Hodges (London), Stephen Albert Robinson (London), Kimberly G. Sickles (Louisville) and Don C. Sullivan (Lexington). • KREEF Trustee members elected for 2011 are Michael Becker, Region 5, and Ruth Ann Bowen, Region 2. The 2011 President-Elect is Christine Morgan and Treasurer-Elect is Barbara Flannery. • RPAC Trustee members selected for 2011 are Gay Nell Rittenberry from CD-01, Lisa Presley McGrew from CD-03, Rebecca Trout and Ken Warden from CD-04, Bill Leslie from CD-05 and Linda Sparrow and Libbi Taylor from CD-06. The 2011 Vice Chair is Rebecca Trout.

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Item of note: Region 1 - the Region “1”ders - took home first place in the Regional Bowl Off, held Tuesday night, with an average of 126.8. Bowlers for Region 1 included Sandy Newell, Jim DeMaio, Silvia Gillette, Tara Dixon and Kathy Jackson. The top individual scores were Jim DeMaio (182) for the men and Patricia Edison (140) for the women.

Sponsors Foreman Watson Gold Key Realty, LLC Greater Owensboro REALTOR® Association Kentucky Real Estate Commission L&N Federal Credit Union Mooser & Associates Nielson & Sherry PSC Rapattoni Stock Yards Bank Systems Engineering

Exhibitors 2-10 Home Buyers Warranty 3 Blondes & A Short Sale A. Arnold World Class Relocation American Home Shield Auction Solutions Beijo Bags Centralized Showing Service Cookie Lee Jewelry Dee Sign Co. EXIT Realty Farm Credit Services of Mid America First American Home Warranty HMS Home Warranty Just Jewelry JV Rockwell Publishing, Inc. Kentucky Housing Corporation L&N Federal Credit Union Limestone Title & Escrow, LLC My Retirement Account Services Nextage Realty International, LLC Pillar to Post Home Inspections Putting on the Glitz/Tastefully Simple Realty Executives of KY, OH & WV Rice Insurance Services Company, LLC Sentrilock, LLC Sentsy Supra Tennessee Valley Signs University of Kentucky

For more photos from the 2010 KAR Annual Convention & Expo or other past events, check out kyrealtors.smugmug.com.

US Department of Housing and Urban Development Women’s Council of REALTORS®

WINTER 2010 KENTUCKY REALTOR® 21

Local Association News Local boards/associations are encouraged to submit information for this section. Pictures must be at least 300dpi. Send all association news to hcooper@kar.com. Northern Kentucky Association NKAR raised over $800 to help contribute to the Russell E. Madden Foundation, named in honor of Spc. Madden of Dayton, KY who died at the age of 29 in Afghanistan, of wounds suffered when insurgents attached his vehicle with rocket fire. The REALTORS® scoured Boone County roads picking up litter and trash for the community service project, “Trash for Cash.” NKAR was honored to help the family of a local hero who enlisted in the military to provide a future for his young family. He leaves behind his wife Michelle and two young sons. During his service in the Army, Spc. Madden received a posthumous Award Promotion to Specialist, the Bronze Star, the Purple Heart and the NATO Medal, Combat Action Badge. The check was presented to Martin Madden, father of Spc. Madden by Becky Yungbluth, NKAR’S Public Relations/ Communication Chairperson. “Our heartfelt sorrow and good wishes continue to go to the Madden family, and it makes us realize how much we appreciate our armed forces, putting their lives on the line everyday to protect our freedom,” stated Yungbluth. NKAR also held their third REALTOR® Hope Fund Event, A Night At The Races, at Turfway Park in September. Named in honor of Barb Hollman, a local REALTOR® who passed away in 2003 after battling breast cancer, this fund was created as a resource to assist NKAR members with dues and fees while unable to work due to a serious life changing event or debilitating illness. With over 160 members in attendance, it was an extremely fun, successful fundraising event.

Greater Owensboro REALTOR ® Association Over the last five years, GORA and Darrin’s Cleaners have teamed up to collect hundreds of gently worn and new coats in the annual REALTOR® coat drive. The family resource counselors from the Davies County school system lovingly choose just the right coat for children who need warm clothing for winter. Because of the increasing and overwhelming generosity, this year’s coat drive has been expanded to support the Owensboro Immigration Refugee Services.

Greater Louisville Association At the Greater Louisville Association of REALTORS Annual Membership Meeting in September, 2011 GLAR President Lamont Breland introduced the Community Relations Committee’s new Pay It Forward Initiative. Fifteen lucky attendees were chosen at random and given $100 in cash to use to make a difference in our community.

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These REALTORS® were asked to use the Pay It Forward money to make a positive impact in someone’s life; to help an individual in need, a local charity, multiple people in our community, or to raise even more funds to donate to a worthy cause. The goal of this campaign is to engage more REALTORS® and get them involved with GLAR and with the community as well as to raise awareness of all the service related projects that REALTORS® are involved. The campaign will continue through 2011 and REALTORS® will be asked to submit their ideas to the committee to be chosen as the next Pay It Forward recipient. Recipients are then contacted by a member of the Community Service Committee to find out how they used the Pay It Forward funds.

Murray Calloway County Board The Murray Calloway County Board recently collected suitcases, duffel bags, backpacks and toiletry items for children in foster care. Often times, as they relocate, these children tote their possessions in plastic garbage bags because they do not have suitcases of their own. Members of the Board delivered the items to the Division of Protection and Permanency, part of the Cabinet for Health and Family Services.

Lexington-Bluegrass Association Janice Mueller, who earlier this year won LBAR’s Good Neighbor Award, was one of 10 finalists for the national Good Neighbor Awards, a grant program recognizing REALTORS® who make exceptional volunteer contributions to their communities. At the NAR Conference in New Orleans, Mueller was given an honorable mention for her work with the Makenna Foundation and received a $2,500 grant for her cause plus a $1,000 gift card from Lowe’s.

Bowling Green center named as a top ten “Great Public Space” The American Planning Association designates Bowling Green’s Fountain Square one of its top ten Great Public Spaces for 2010. Great Places in America looks for unique and authentic characteristics found in neighborhoods, public spaces, and streets. Here is the description of Fountain Square: Fountain Square, in the center of downtown Bowling Green, is considered by residents and community leaders to be the heart of their city and an iconic symbol of Bowling Green itself. The city’s attachment to the square dates back to 19th century when the parcel was turned into a park after a courthouse that had occupied the site was torn down and rebuilt a block away. John Cox Underwood, Bowling Green’s second mayor, drew up plans for the park in 1870. Two years later it was completed and named Fountain Park.

Contributing to the square’s charm is its namesake ornamental black-iron fountain, framed by a pair of matching limestone arches at the park’s entrances along Park Row and Main Avenue. Pathways lead to the fountain from these as well as two other entrances located on College and State streets. The luscious greenery remains largely unchanged from the design of R.L. Sturtevant, who was commissioned by the Bowling Green Garden Club in 1934 to develop a landscaping plan for the square. Concerts, art shows, and other special events draw thousands to the square each year, but it also serves as a hub of everyday activity where residents and visitors can step back in time and enjoy the calm, comfortable atmosphere.

Frankfort makes Forbes list of “best small cities to raise a family” Out of 126 cities on the Forbes list, ranked by several measures and personal factors that make living easier for families, Frankfort was chosen as number 20 overall. And with a population of around 70,000 and a median household income of just over $50,000, it was ranked the best small city in the South. The choice was based on a number of items, many of which can’t be measured in a ranked list, however, things like affordability, education and jobs were considered.

Lexington and Louisville named “best markets for investing” According to reports in the Wall Street Journal that rank the best and worst markets for conservative residential-real-estate investors, both Lexington and Louisville made the list albeit in two different months. Lexington ranked number 5 as a best market in the August report while Louisville, ranked number 10, made a more recent report in October. Local Market Monitor Inc., a firm that analyzes real-estate trends for lenders, builders and investors, compiled the Investor Suitability Report using economic data for 315 U.S. markets with over 200,000 residents. The firm is best known for its housing-market forecasts, which use “equilibrium” home prices: what home values should be in relation to incomes, job growth and population. In its new report, it uses similar data to rank communities by their investment prospects, focusing on single-family homes.

Lexington named “best place to retire” CNNMoney recently named Lexington to its list of Best Places to Retire, ranking the city at number 3. Here is what was written about the Bluegrass gem: Population: 291,201 % over 50: 29% Median home price: $144,200 State income tax: 6%* Where to take classes: University of Kentucky Downtown Lexington boasts plenty of entertainment options for retirees, including the circa-1922 Kentucky Theatre - which shows independent and classic films - the Lexington Farmers Market, dozens of restaurants, and Rupp Arena, home to the university’s storied basketball program. Plus, for the equestrian minded, the city isn’t far from Kentucky’s famed horse country and is just 90 minutes from Churchill Downs and the Kentucky Derby.

The Shellbyville Board hosted an event on November 18th with their newly elected officials. They were able to use the Local Association Governmental Affairs Support Program funds to assisit with hosting this sucessful event. For more information on the LAGASP program, please contact Anetha Sanford, KAR Governmental Affairs Director, at anethad@kar.com

In addition to a deep-seated horse and bourbon tradition, the city also has strong roots in life-long learning. In 1964, before retirees became regular fixtures on college campuses, the University of Kentucky invited them to take up empty seats in classrooms. Today, the school continues the tradition, offering locals 65 and up free access to university classes that have open space. While most fellows choose to audit courses, many have pursued degrees. A sister program for area residents 50 and over organizes about 100 classes a year on topics ranging from painting to U.S. history.

WINTER 2010 KENTUCKY REALTOR® 23

By The Numbers

2/3

Number of Americans who use the Web daily. An estimated 95% of Generation Y do the same, the profile most conspicuously associated with the first-time home buyer (median age: 30). About half of today’s buyers are first-timers.

$3,341

The average closing cost for a home in Kentucky, ranking the state as 45th lowest in the country (in 2009, Kentucky was 44th) according to a Bankrate.com study. The breakdown was $1,488 for origination and $1,893 for title and closing.

50%

The percent of mortgage professionals believe the industry will go paperless in the next three to four years, up from 28% in a similar 2008 survey by the National Mortgage News. About 69% of respondents said they were already seeing increasing use of electronic disclosures. Some 79% believe that pushing the envelope on this transition is important because it decreases turnaround and processing costs.

21percent

Recently highlighted data from the latest Pew research about broadband adoption showed this percent of U.S. adults still doesn’t use the Internet. The main reason cited (31%) was they were “just not interested.” 12% said they didn’t have a computer.

This year, about 2 million, or 41 percent, of the 5 million homes sold nationally this year will be distressed sales, predict analysts at John Burns Real Estate Consulting. For next year, that figure is on pace to hit 2.4 million homes, or 45 percent of all sales. In healthy housing markets, distressed sales typically make up only 6 to 7 percent of annual sales.

PERCENT

28%

According to data released by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, the most important consideration for recent movers in choosing their homes was financial (28 percent), followed by room layout/design (15 percent) and size of home (10 percent). Furthermore, the most common reasons recent movers had for choosing their neighborhoods were convenience to job (20 percent), convenience to friends or relatives (14 percent), look/design of neighborhood (10 percent) and the house itself (10 percent).

4,314,113

The estimated population of Kentucky in 2009. There are 1.906 million housing units (est. 2007), 1.591 million households (est. 2000) and 2.47 people per household (est. 2000). The population growth from 2000 through 2008 was .7% per year.

1/3

According to RealtyTrac, fewer than one-third of homes repossessed by lenders are currently on the market.

3,200 78 billion

Just 9 percent of the people surveyed by Trulia said their ideal home size was over this many square feet. Meanwhile, more than one-third said their ideal size was under 2,000 feet. In a survey of builders last year, nine out of 10 said they planned to build smaller or lower-priced homes.

For a little historical context, 1,200 square feet was the average home size in America in the 1960s. That grew to 1,710 square feet in the 1980s and 2,330 square feet in the 2000s.

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There are approximately 78 billion square feet of commercial space in the U.S., according to data from the Energy Information Administration. Of that space, office space accounts for 17 percent, retail space accounts for 16 percent and educational spaces and warehouses each account for 14 percent of the total. There are approximately 5.2 million commercial buildings, of which 65 percent are two stories or less.

Housing Stats Decline in Home Sales for 3rd Quarter First half of year strong with tax credit help, prices remain stable The housing market in Kentucky was fairly stable in 2009 and, due to the tax credit, had increased activity through the first half of 2010. Home sales were up over 12% in the first quarter of 2010 and 28% in the second compared with the same periods in 2009. The median price in the state also held steady at around $110,000. Over the past quarter since the tax credits expired, Kentucky has seen a drop off in sales with a decrease of 23% in the third quarter compared to 2009. Despite the lag in sales, prices have remained even throughout the year and, for the third quarter, the majority of local boards have reported an increase in prices despite a slight drop overall. “Interest rates continue to be low and Kentucky has a low cost for housing,” says John Smither, president of the Kentucky Association of REALTORS®. “If a buyer is in the right position, there really is no better time to buy. When rates rise, as will happen at some point, many may be kicking themselves for not taking advantage of the current environment.” Nationally, home sale forecasts are a mixed bag from month to month, mainly due to factors such as the foreclosure issues that exist, shadow inventories from the banks, tightened lending practices and the uncertainty in the job market. But this may even out in the near future. Lawrence Yun, NAR chief economist, said, “For 2011, we should see more than 5.1 million existing-home sales, up from about 4.8 million this year. Housing starts are expected to rise to 716,000 in 2011 from 598,000 this year.” Yun went on to say that the U.S. added 30 million people to the population over the past 10 years, but sales are where they were in 2000, so there appears to be a sizable pent-up demand that could come to the market once the economy gathers momentum.” Another bit of news is that foreclosures have yet to hit Kentucky as hard as other areas of the country although they are no stranger to the state. Foreclosures in the state were up 12.75% from the first to second quarter of 2010 and up almost 26% in the second quarter 2010 compared to the same period in 2009, according to RealtyTrac. In the second quarter of 2010, Kentucky posted the nation’s second highest average foreclosure discount. Kentucky’s pre-foreclosure sold for an average discount of 27%, and Kentucky REOs sold for an average discount of 48%. On the bright side, Kentucky’s foreclosure sales were only 13.5% of the total sales for the period, a much lower percentage than the national average of just over 24%.

3rd Quarter 2010 vs 3rd Quarter 2009 BOARD/ASSOCIATION

SOLD SOLD SOLD MEDIAN MEDIAN MEDIAN 2010 2009 % PRICE 2010 PRICE 2009 %

REGION ONE Henderson-Audubon Board of REALTORS® 73 85 -14.12% 97839

93250

4.92%

85897

21.08%

Hopkinsville-Christian Board of REALTORS®

118

Kentucky-Barkley Lakes Board of REALTORS® Madisonville-Hopkins Board of REALTORS®

78 112

Mayfield-Graves Board of REALTORS®

-20.55%

80000

74500

7.38%

Murray Calloway County Board of REALTORS® Owensboro Board of REALTORS®

-21.18%

125500

128000

-1.95%

213

311 -31.51%

90750

109500

-17.12%

Paducah Board of REALTORS®

162

177

-8.47%

130500

128375

1.66%

Pennyrile Board of REALTORS®

116 -38.79%

116500

102950

13.16%

-32.20%

104000

-6.02%

97400

87750

11.00%

17.89%

76450

103500

-26.14%

REGION TWO Central Kentucky Association of REALTORS® 106 139 -23.74% 98450

115000

-14.39%

150000

129500

15.83%

161 -45.96%

115000

112250

2.45%

367

448 -18.08%

121500

126000

-3.57%

-30.23%

88250

113250

-22.08%

132 -34.85%

153300

124700

22.94%

109900

99500

10.45%

REGION THREE 2760 3519 -21.57% 144250 Greater Louisville Association of REALTORS®

136800

5.45%

REGION FOUR Lexington Bluegrass Association of REALTORS® 1589 2294 -30.73% 140000

143000

-2.10%

REGION FIVE Northern Kentucky Association of REALTORS® 1034 1349 -23.35% 130000

130000

0.00%

REGION SIX Ashland Area Board of REALTORS® 169 208 -18.75% 100000

Heart of Kentucky Association of REALTORS® Old Kentucky Home Board of REALTORS®

546

538

REALTOR® Association of Southern Kentucky Russellville-Logan Board of REALTORS® Shelbyville Board of REALTORS®

South Central Kentucky Association of REALTORS® 57

1.49%

-28.75%

91000

9.89%

Cave Run Association of REALTORS®

-17.02%

80000

90000

-11.11%

Cumberland Valley Board of REALTORS® Madison County Board of REALTORS®

119

148 -19.59%

108000

106000

1.89%

201

292 -31.16%

133300

131125

1.66%

Pioneer Trace Board of REALTORS®

-30.43%

98000

70000

40.00%

159 -10.06%

98950

107000

-7.52%

8279 10746 -22.96%

108000

109500

-0.37%

Somerset-Lake Cumberland Board of REALTORS® 143 TOTAL

* Statistics are unavailable for the following local associations: Cynthiana-Harrison Co., Dix River, & Eastern KY

Note: for U.S. service members, the homebuyer tax credit deadline is extended through April 2011. According to the IRS, members of the uniformed services, Foreign Service and employees of the intelligence community serving outside the United States are eligible for this special rule. Based on information from local REALTOR® associations/MLSs for the periods of July 1 – September 30, 2009 and 2010

To see housing statistics from 2006 to present, visit www.kar.com > Media Center > Housing Statistics

WINTER 2010 KENTUCKY REALTOR® 25

Community Profile

Photo: Courtesy of the Danville/Boyle County Economic Development Partnership

A Spotlight on Danville Upon first arrival in Danville, a quaint little town located on the southern edge of Kentucky’s Bluegrass region, it would seem as many other small towns do in this part of the country. Laid back. Welcoming. Out-of-its-way friendly. And that is certainly the case with the county seat of Boyle County. But this southern charmer of a town also stays hopping with a vibrant arts scene, is home to award winning postsecondary education and has a history that is brought to life in many different ways. It all began back in 1774 when Walker Daniel, Kentucky’s first District Attorney, bought 76 acres of land to create a town. In 1787, the Virginia legislature officially established Danville as the town had already become the hub of activity to try and secure independence from Virginia. Kentucky was admitted into the Union as the 15th state in 1792 and Isaac Shelby stood in Danville’s Constitution Square, where he was named the first governor of the Bluegrass. Constitution Square, a state historic site, served as the main location for Kentucky’s push for statehood and was the location where the first Kentucky Constitution was written and signed. Visitors from across the country still come to Danville to feel the history of the square and to tour several of the other historical attractions in the area. In fact, every September, Danville hosts the Historic Constitution Square Festival, a Kentucky Tourism Council Top 10 Designated Event, that celebrates the location’s relevance in the history of Kentucky. Complete with strolling musicians, pioneer living history encampments and carriage

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rides and tours through downtown, the Festival is widely considered one of the top craft shows in the state. Take a quick, 10-mile trip west of Danville, and you’ll arrive at the Perryville Battlefield State Historic Site, the location of one of the Civil Wars most notable battles. Described as one of the most unaltered Civil War battle sites in the nation, enjoy the beautiful vistas of the sweeping battlefield. A museum located on site also offers a unique look back in time. In the neighboring town of Harrodsburg is the Fort Harrod State Park and just up the road is Shaker Village of Pleasant Hill (also known as Shakertown), both of which continue to draw thousands of history buffs each year. The historical importance of Danville has lead to the city receiving a Great American Main Street Award from the National Trust for Historic Preservation (the first in Kentucky) and five districts within Danville are on the National Register of Historic places. In fact, the area is home to over 120 historical houses on the national registry, many of which have been restored in the last two decades.

Danville is called the “City of Firsts” • It housed the first courthouse in Kentucky. • It had the first U.S. Post Office west of the Allegheny Mountains. • It hosts the first state-supported school for the deaf. • In it, Ephraim McDowell became the first physician in the world to successfully remove an ovarian tumor (the local hospital is named in his honor). • It is home to the oldest college administration building and campus west of the Allegheny Mountains at Centre College.

Centre College, recently named by Forbes magazine as the “best college in the south,” also serves as the foundation to Danville’s flourishing cultural and entertainment life. Established in 1819, Centre College, a small liberal arts college and the first law school west of the Alleghenies, has featured internationally known artists. The college’s grassy lawns are preferred stages for the annual Great American Brass Band Festival, which draws thousands of visitors and bands from around the world in June. As part of significant recent history, Centre College served as the location for the 2000 vice presidential debate between Democratic Senator Lieberman and Republican Cheney. The debate was held in Centre College’s Norton Center for the Arts, a modern center designed by a protégé of Frank Lloyd Wright that has featured internationally known artists such as the Boston Pops, Smokey Robinson, David Copperfield as well as musicals like Rent and Hairspray. On the education side, Centre College holds the title of the highest-ranking baccalaureate college in Kentucky and its 98% of its faculty has obtained the highest degrees in their respective fields. In the last decade alone, the college has produced 17 Fulbright Scholars, five Goldwater Scholars, a Rhodes Scholar and a Truman Scholar. Its alumni include two U.S. vice presidents, a chief justice of the United States, 13 U.S. senators, and 43 U.S. representatives. Known locally as the “Class of the Bluegrass,” Danville has many other draws for visitors and residents. Set in the rolling hills and home to several horse farms, the area boasts several hiking, walking and biking areas to enjoy the beautiful landscape, specifically Knobs Lands and the Central Kentucky Wildlife Refuge. Opportunities for recreation also include Herrington Lake, Kentucky’s deepest at 249 feet and considered one of the state’s best fishing lakes, offers a marina, golf course The Pioneer Playhouse, Kentucky’s oldest outdoor theater, is an institution that was built from reclaimed and recycled materials spanning 200 years into the state’s history. Operating for 61 years, the theatre offers five plays throughout the summer with a dinner before each. In 1962, Pioneer Playhouse became the first theater in the nation to be accorded the legal status of State Theater through legislation and has been the stage for actors such as John Travolta, Lee Majors and Jim Varney.

In the heart of the historic downtown, you’ll find two Main Streets breathing with life. With its historic architecture and welcoming attitude, Danville has invigorated itself with an active Main Street Program that introduced events such as a Lawn Chair Theatre, which offers free outdoor movies during summer months, an Eat Drink Danville event that brings together residents and visitors alike with a street party feel. It is also home to the Community Arts Center as well as the West T. Hill Community Theatre, both of which offer a local spin on participating in the arts. And for the seasonal flavor, Danville also hosts Oktoberfest, a town wide Trick or Treat event and a Christmas parade. Beyond its charm, Danville, also known as the “City of Firsts,” stands tall with its broad economic foundation and progressive mentality that serves to keep it a regional hub for health care, postsecondary education, cultural events and active recreation. But Danville is also reminded of its humble beginnings as it is home to the oldest country store in America, Penn’s Store, which has been run by the same family since 1850.

Danville tops list as “best place to retire” Danville ranked as the top retirement spot in the country, as reported in Bankrate’s “America’s 100 Best Places to Retire.” The publication, which researched median home prices, had this to say: Danville, Kentucky. Area median price: $125,000 Danville earned a spot among the “top 10 budget towns” with some of the lowest utility costs in the nation, says Benjamin Guerrant, a local real estate broker. But the lifestyle here isn’t just for the frugalati. Danville is home to Centre College, and its performing arts center brings in shows that rival what you’d see in Lexington, Louisville or Cincinnati, Guerrant says. “I’ve seen Mikhail Baryshnikov, Dolly Parton and ‘The Wizard of Oz,’” he says. “It’s a tremendous draw for talent.” Danville also ranked as a “top ten Main Street town,” thanks to a well-planned downtown with four lanes and parking on both sides of the street, Guerrant says. “That has been very crucial to the success of businesses downtown,” he says. What’s more Main Street than a band? The Great American Brass Band Festival is held in Danville every June. Danville is the kind of place where people stay and often work in the family business, says Guerrant, who is the fourth generation in the family real estate business. The town’s funeral home has provided income for at least three generations, and the town bakery is into the fifth generation, he says.

Photo: Courtesy of the Danville/Boyle County Economic Development Partnership

WINTER 2010 KENTUCKY REALTOR® 27

From the Helm Looking for Inspiration I was looking for inspiration this fall. Naturally, I was awed by the splendor of Kentucky as I drove around and enjoyed the beautiful fall colors and the rolling landscape of our Commonwealth, but I had been lacking that fervent inspiration that stirs the soul and creates the feelings that inspires artistry, song and poems. I was looking for inspiration that moves people to action. Two examples of leadership with inspiration strike me as the encouragement I am seeking: Inspiration from a Kentuckian: As I drive the Bluegrass Parkway, as I have done frequently lately, I pass Hodgenville, birthplace of Abraham Lincoln. I don’t know why I have never stopped to visit his birthplace because Abraham Lincoln is one of the most inspirational figures in history (my opinion, of course). Abraham Lincoln inspires us because of the strength of his will and determination to withstand the worst crisis in the history of our country and apply all his energy and abilities to keep the United States from dividing. Part of his leadership that was inspirational was his ability to use humor to calm people and diffuse difficult situations. One of his most famous quotes was “keep your friends close and your enemies closer.” Lincoln was not afraid to include his rivals for the Republican nomination in his cabinet, many who were invaluable in the administration during the Civil War. Although they had been former enemies and rivals politically, Lincoln recognized their abilities would be useful to the service of the country. Lincoln exhibited a sense of strength and security and a belief in his own leadership abilities to include other great minds on his leadership team even though they were former political rivals. Great leaders are not afraid to take these kinds of risks if it is best for their organizations. Inspiration from a REALTOR®: Like many of you, I can still vividly recall the events of September 11, 2001, and especially the after effects, both positive and negative. What I also remember is how the President of the NAR declared the association would help those who needed assistance with their mortgages, ensuring they would not lose their home after suffering so many emotional losses. No policy, budget, economic conditions, red tape or other stumbling block would stop Richard Mendenhall in creating the REALTORS® Relief Fund. That fund has been used over and over again to help those in need after a natural disaster. There were many other charities and assistance programs available, but very few could move as quickly and efficiently as the REALTORS® Relief Fund did after the attack. I saw Richard Mendenhall at the NAR Convention in New Orleans and

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wanted to tell him how inspirational his swift and decisive actions were, but, as what happens frequently, we got busy. Great leaders take action for their organization, especially when immediate action is needed. But, I still needed some inspiration this fall. I don’t know if the economy was finally affecting my usually sunny disposition or if all the campaign commercials were getting me down, but I needed something to lift me up. Then I found it … On November 2nd, at 7:30 in the morning, I walked into the voting booth. A wobbly three-foot by three-foot booth with the security of plastic sides inspired me. After the millions of dollars spent trying to convince me to vote for a particular candidate; the thousands of hours of paid advertising; the mailings sent directly to my mail box; the outside money raised all to convince me to “pull the lever” (although we don’t really pull the lever anymore) for them was empowering to me. It all rested in my hands (and the other millions of voters that day) to do exactly what I wanted to do - vote for who I wanted to represent me on the national, state and local levels of government. My actions counted that day. It was the inspiration I had been looking for all season long. Now, the campaign commercials are gone, and the chill in the air reminds me that a new year is upon us. I can move forward with inspiration! I hope all of you and yours have a peaceful holiday season. Let’s move into 2011 with a renewed spirit and a sunny disposition once again.

Susan W. Helm is the Executive Vice President of the Kentucky Association of REALTORS®

Code of Ethics The Top 6 Informal Consumer Complaints from the KREC Legal Hotline By Y. Denise Payne Wade and Kristen L. Reese, KREC Staff Attorneys

The Kentucky Real Estate Commission (KREC) Legal Department receives numerous telephone calls each day from both licensees and consumers. Typically, when licensees contact the Legal Department, they are asking questions to make sure they are staying in compliance with real estate license law. However, when consumers contact the Legal Department, they are most likely calling because they have concerns about their interactions with real estate agents or because they want to file a complaint. Below is a list of the most common questions and complaints that the KREC Legal Department receives from consumers, including ourthe typical response and advice to agents regarding the subject of each. 1 Refusal to Release Earnest Money Consumer Complaint: “I can’t get my earnest money back that I am entitled to, since I did not qualify for my loan application.” KREC Legal Answer: There are a limited number of ways to release funds from an escrow account, which are noted in KRS 324.111(4) and (6). KRS 324.111(4) requires a mutual release, a court order or performance on the contract before the earnest money can be released from escrow accounts. Principal brokers also have the option of sending the 60-day notification letter, referenced in KRS 324.111(6), to the contract parties. If a principal broker chooses to follow the optional release process in KRS 324.111(6), then he or she must strictly comply with the statutory requirements for the notification letter, to avoid a license law violation. Agents should make sure their clients understand that the boilerplate language in the contract will not allow the money to be removed from the escrow account after it has been deposited, unless KRS 324.111(4) or (6) is followed.

2 Breached Duties in Dual Agency Consumer Complaint: “A dual agent represented the seller better than the dual agent represented me, the buyer.” KREC Legal Answer: A dual agent owes a limited duty to each client; both parties should have the same “body of knowledge.” Licensees must, therefore, strike a proper balance between them to ensure that both clients are kept on a level playing field. Licensees must also be forever mindful that dual agency is a relationship that requires the informed written consent of both buyer and seller before it can be established in a real estate transaction. In other words, dual agency is not created simply because the circumstances present the possibility of it.

3 Verbal Promises Broken Consumer Complaint: Client relied upon verbal promises and assurances that an agent apparently made to “save” the contract and get paid the commission. After the closing, the agent refused to follow through with the promises. KREC Legal Answer: Do not make any promises that you cannot keep. Agents must treat customers & clients fairly & honestly. Refer to 201 KAR 11:121 for duties agents

owe clients. These fiduciary duties are loyalty, disclosure, confidentiality, accounting, reasonable care and diligence, and obedience to lawful instructions.

4 Disclosure of Offer Amounts Consumer Complaint: “The amount of my offer was revealed to others making offers on the property that I was trying to buy.” KREC Legal Answer: Buyers’ agents must remember to advise their clients, upfront, of the possibility that sellers or sellers’ agents may not treat terms of offers as confidential. Agents must remember that terms are not confidential unless required by law or regulation, or by agreement between the parties.

5 Inaccurate Location of Boundaries Consumer Complaint: “My agent pointed out the boundaries of the property; so I decided not to have the property surveyed. I subsequently discovered that the property lines were not as the agent had described them.” KREC Legal Answer: Agents should encourage prospective buyers to have the property surveyed before signing the purchase contract. If information relating to boundaries is provided by the agent, the agent should verify and disclose the source of the information.

6 False Advertising of Property Conditions Consumer Complaint: The agent’s advertisement about the property did not tell the truth about the conditions of the house. KREC Legal Answer: Agents should, acting diligently, verify the information that will be included in the advertisement. They should also include the actual source of the information, especially if the agent is not the sole source of the stated property conditions. To conclude, the KREC’s Legal Department is available to address license law questions and concerns, so please feel free to give the KREC Legal Department a call or send us an e-mail. You can reach us by telephone at (502) 429-7250 or by email at denise.wade@ky.gov or kristen.reese@ky.gov.

WINTER 2010 KENTUCKY REALTOR® 29

A Day in the Life of...

the President of the Mortgage Bankers Association of Kentucky Adam Hall, Louisville, KY

How many years have you been in the mortgage business? 15 years How did you get involved with the local and state chapters of the Mortgage Bankers Association? I have attended membership meetings since 1995, but I did not become active with the associations until 2005. One of the directors of the Louisville board had resigned, and I was asked to fill his seat for the remainder of the year. I was nominated to be Vice President for 2006 and then served as President for 2 _ years of the Mortgage Banker Association of Louisville. I became active on the state level during my term as President in Louisville. What have been some of the major changes/challenges with lending over the past year? I think the biggest challenge we have faced is overcoming negative perceptions. The media continues to promote the idea banks are not lending. This is simply not true. Interest rates are incredibly low and home prices are more affordable than ever. We do require more information from borrowers than we did three years ago, but for a borrower with average to good credit and income we can document, obtaining mortgage financing is very achievable. Over the next year, what will the lending industry environment look like? Since May of 2007, when subprime lending collapsed, our industry has been in a state of constant change. Products have disappeared, underwriting guidelines have tightened and regulations have dramatically changed. I expect we will see more change in the year to come, specifically as regulators promulgate the regulations required to implement the Dodd Frank reform bill. Until these regulations are produced, we really donâ&#x20AC;&#x2122;t know what impact the changes will have on mortgage lending. At the same time, Congress and the President will be wrestling with how to deal with Freddie Mac and Fannie Mae. Our housing industry has relied heavily on the liquidity the Government Sponsored Enterprises have provided since the 1930s. How the secondary market will look and what role government will play in that market is the biggest question facing our industry. Finding a balance of government

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involvement and private investment will be critical to maintaining a healthy housing market in this country. If you could change one thing about the lending industry, nationally or within Kentucky, what would it be? There were many of us in the industry in the early to mid part of the last decade who were very concerned about the risky nature of the loans we were making. If I could undo the damage the high risk loan products have done to our economy. But since time travel is improbable, the other problem I would like to change is financial illiteracy. The unfortunate reality is so many people in this country lacked and still the basic knowledge to make informed decisions about a mortgage or other types of loans. Kentucky has a huge percentage of our population which is un-banked or underbanked. Because they lack the access or the comfort level to access main stream financial products, they are spending much more of their income on financial services than their banked counterparts. While I believe the changes which have occurred in our industry make it very difficult to put a buyer in a mortgage which is or will become unaffordable, I also think the best defense against is to provide consumers information and education to be able to make informed decisions. This is a true passion for me. This year, I have spent over 60 hours in providing free financial literacy workshops and I hope to expand that next year. Has the recent foreclosure situation had any affect on Kentucky housing? About 4% of the mortgages in Kentucky are currently delinquent. That is far below states like Florida and Nevada where over 16% of mortgages are delinquent and is below the national average at 6.8%. While I am glad we are well below the worst affected areas in the country, we still have a lot of families who are struggling. In our urban areas, we see foreclosure

All of us lenders want to make loans to qualified home buyers who will be sustainable homeowners, but the hurdles we have to jump through to achieve that goal are higher and do take more time.

concentrated in low income neighborhoods. The issue of vacant and blighted property is a problem for cities and for other home owners in those areas who are seeing their property values decline. Because of the unemployment problem, we still struggle to help homeowners sustain their ownership. In 2011, Kentucky will receive funding from the Hardest Hit fund which will help unemployed homeowners pay the mortgage payment. Hopefully these funds, along with loan modification programs, will bring our foreclosure rate lower.

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What guidance would you give potential home buyers that would help them through the financing process? I always recommend buyers get pre-approved before they go out to look at homes. Knowing what price range, down payment requirements and other loan program restrictions in advance can cut out a lot of headaches. I also encourage buyers to work with a lender with whom they fill comfortable and a lender who is a member of the Mortgage Bankers Association. Buying a home, whether it is your first home, or a move up transaction, is very stressful. The mortgage finance world has completely changed in the last 2 years â&#x20AC;&#x201C; the requirements to be approved are much different. Specifically for first time home buyers, I would encourage attending a HUD approved home buyer education course. Finally, be patient. All of us lenders want to make loans to qualified home buyers who will be sustainable homeowners, but the hurdles we have to jump through to achieve that goal are higher and do take more time. Outside of your career, what is your favorite pastime?

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Statement of Ownership, Management and Circulation The Kentucky REALTORÂŽ (USPS 024-933) is published four times a year (Spring, Summer, Fall, Winter) for $10.00 per year by the Kentucky Association of REALTORSÂŽ, the subscription fee is $25 per year for non-members. The offices of publication and the headquarters and general business offices of the publisher, Susan W. Helm, are located at 161 Prosperous Place, Suite 100, Lexington, KY 40509. The sole owner of the publication is the Kentucky Association of REALTORSÂŽ at the address listed above. There are no known bondholders, mortgage or other security holders.

I am an avid reader and I enjoy reading a variety of genres. I am also at the gym working out everyday. Average # copies Actual # copies ea. issue during single issue last 12 months nearest filing

What is the best advice you have ever received? I am not sure you would classify this as advice to me specifically. Mother Teresa said, â&#x20AC;&#x153;If you canâ&#x20AC;&#x2122;t feed a hundred people, then feed just one. We feel that what we are doing is just a drop in the ocean. But the ocean would be less because of that missing drop.â&#x20AC;? I think it is easy to look at the overwhelming problems in the world today and think there is nothing we can do that could possible make a difference. Mother Teresaâ&#x20AC;&#x2122;s words and example remind me even helping in small ways will improve the world

Total # copies (net press run)

10,809

10,800

Paid/requested subscriptions

10,252

10,240

TOTAL PAID CIRCULATION

10,252

10,240

Free Distribution by mai

274

222

TOTAL DISTRIBUTION

10,526

10,462

Copies not distributed

283

338

10,809

10,800

TOTAL

I certify that the information stated is true and complete:

______________________, editor

WINTER 2010 KENTUCKY REALTORÂŽ 31