THE VOICE OF REAL ESTATE IN NORTH CAROLINA
VOL 99 NO 4 | NOVEMBER 2020
The Year in Review Life in a Post-COVID World • Member Achievements • Advocacy Success Rising Stars • Virtual Engagement • Community Resilience
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November 2020
[CONTENTS]
Features 6 Life in a Post-Covid World
COVID certainly changed our lives in 2020. What does that mean for NC REALTORS® and the real estate industry in North Carolina?
12 Working with Divorcing Couples
Being a REALTOR® to divorcing or already divorced couples can be rewarding, but it also might involve twists and turns you didn’t expect.
6
24 The Toughest Sale You Have Ever Had
Six North Carolina REALTORS® divulge their hardest transaction stories and how they worked through them.
12 4 PRESIDENT'S LETTER 5 INSIDE NC REALTORS®
Remembering Joe Clark, NC REALTORS® election results
9 LEGAL QUIZ
Test your knowledge of the back-up contract addendum
18 2020: YEAR IN REVIEW
RPAC Hall of Fame, GRI Designees, Annual Awards, Rising Stars, Leadership Academy Class of 2020 and NC REALTORS® Gives Back Day
TALK TO US
24
Have something to talk about? Sure you do—and we want to hear it! Send us your comments, ideas or success stories to mallen@ncrealtors.org and you could be featured in the next Insight. ncrealtors.org • INSIGHT 3
Insight, Volume 99, Issue 4 President Maren Brisson-Kuester
Treasurer Laurie Knudsen, GRI
President-Elect Kelly Marks, ABR, CRS, GRI
Immediate Past President Asa Fleming, SFR, AHWD
Regional Vice Presidents Region 1: Kim Endre, Kitty Hawk Region 2: Tony Harrington, Wilmington Region 3: Connie Corey, Greenville Region 4: Julia Tucker, Chapel Hill Region 5: Kathy Haines, Greensboro Region 6: Penny Boyles, King Region 7: Dennis Bailey, Shelby Region 8: John Ogburn, Charlotte Region 8: Jennifer Frontera, Indian Trail Region 9: Renee Cooney, Franklin Region 10: Teresa Pitt, Fuquay Varina Region 10: Mark Parker, Raleigh At Large Representative: Brooke Rudd-Gaglie, Oak Island Chief Executive Officer Andrea Bushnell, Esq., CIPS, RCE Vice President of Communications & Marketing Mckenzie Allen Graphic Design Coordinator Raquel Stubblefield Content Marketing Coordinator Aliyah Ross Contributors Lee Nelson, Mark Zimmerman For advertising information, visit ncrealtors.org/advertise or contact Keri Epps-Rashad at (336) 217-1049. INSIGHT (ISSN 24714127) (USPS 17170) is published four times a year in February, May, August and November by NC REALTORS®, 4511 Weybridge Lane, Greensboro, NC 27407. Periodicals Postage Prices paid at Greensboro, N.C. and additional mailing offices. POSTMASTER: Send address changes to INSIGHT, 4511 Weybridge Lane, Greensboro, NC 27407-7877. This publication is designed to provide accurate and authoritative information regarding the subject matter covered. Articles which appear in Insight are an informational service to members and consumers. Their contents are the opinions of the authors alone and do not necessarily represent those of NC REALTORS®. Advertising of a product or service does not imply endorsement, unless specifically stated. To opt-out of paper copy mailings, email hello@ncrealtors.org with a subject line of “Insight opt-out.”
My journey as president of NC REALTORS® is reaching its end, and I am grateful to have been entrusted with this opportunity. 2020 was nothing at all how we imagined it would be. Still, through every hurdle and uncertainty, we remained as one community coming together to serve each other and our local areas, sticking to one vision and uniting with one voice to fight for our industry. That was my goal for this year, and you exceeded my expectations. Through canceled events and virtual meetings, you “showed up” and made it work! That’s what REALTORS® do. We are flexible and not caught off guard by having to make adjustments. I will leave you with three final things. Continue to aspire to be AT the table versus ON the table. Remember, if you don’t speak up, people will speak on your behalf. Think about how you fought local stay-at-home orders to make real estate essential in the early days of the COVID-19 pandemic. You stopped at nothing to make your voice heard. Secondly, I encourage you to continue to build your communities and the lives of the people in it. We have no idea when things will return to “normal.” However, during this time of adversity, you went above and beyond to close deals and make the dream of homeownership come true for many, all while working remotely. Keep it up! Lastly, don’t lose your spark! Continue to care for and serve your clients and communities passionately. Continue to grow your skills professionally. Continue to challenge yourself and embrace new things that may make you uncomfortable. This is how we, as REALTORS®, can influence and prepare our industry and our communities for the future. This is Who We R. As we enter 2021 with Kelly Marks as your leader, I know you’ll continue to support and build on the work we’ve started with a clear vision for the future. Thank you for catching my vision this year and sticking it out through all the madness. It has been an honor.
4511 Weybridge Lane, Greensboro, NC 27407 Phone: (336) 294-1415 ncrealtors.org
Maren Brisson-Kuester, 2020 President
ELECTION RESULTS President-Elect Wendy Harris | ABR®, CIPS, CRS, MRP Longleaf Pine REALTORS® Issues Mobilization Committee Amy Hedgecock | CPM®, GRI High Point Regional Association of REALTORS® Finance & Budget Committee Randy Dockery | ABR®, CRS, CDPE, e-PRO® Mountain Lakes Board of REALTORS®
NC REALTORS® Past Presidents gather to remember Joe Clark. From left: Lou Baldwin, Treasure Faircloth, Micki Fisher, Connie Corey, Wendell Bullard and Bob Fowler.
REMEMBERING REALTOR®, JOE CLARK
May 6, 1929 – February 5, 2020
Joe Clark was more than just a REALTOR®; he was a hero, mentor and friend to many. He led a 33-year career in real estate with Robins and Weill, Inc. in Greensboro, N.C. as a Certified Property Manager. Joe was very passionate about real estate and dedicated much of his time to service at his state and local associations. He was named NC REALTOR® of the Year in 1981, sat as President of NC REALTORS® in 1989 and served as Treasurer for 13 years. Joe passed away Wednesday, February 5, 2020 in Charlotte, N.C., surrounded by family. We sat down with friends and fellow Past Presidents, Connie Corey and Lou Baldwin to hear some fond memories of Joe: “I remember him coming up to introduce himself to me at one of the Conventions. He looked at my badge and said, where are you from and what are your plans for our association. I didn’t even know what the association did at this point. So being the young girl I was, I told him, “I have no clue. I’m here for the convention”. He laughed. I was serious! Joe told me to stay focused on getting involved. Pick what I thought I would be good at and go for it. Joe was always a great supporter and friend.” – Connie Moore Corey, 2003 NC REALTORS® President “Joe was my first impression of what an NC REALTORS® President was when I was new to the business in the late 80s’. That was a wonderful first impression that I always carried with me and spoke of at my Inaugural in 2012. Joe was truly one of the greatest!” – Lou Baldwin, 2012 NC REALTORS® President
Madalyn Kunow | CNS High Point Regional Association of REALTORS® Tony Smith | ABR®, ABRM, CRS, GRI Canopy REALTOR® Association NAR Directors Kim Dawson | ABR®, C2EX, CIPS, CRS, GRI, SRES® Durham Regional Association of REALTORS® Myra Zollinger | CRS, GRI Raleigh Regional Association of REALTORS® Region 3 Vice President Bruce Gates | ABR®, GRI Goldsboro-Wayne County Association of REALTORS® Region 4 Vice President Jon Fletcher | CRS, e-PRO® Durham Regional Association of REALTORS® Region 6 Vice President John McPherson | ABR®, AHWD, CRS, e-PRO®, GREEN, GRI Winston-Salem Regional Association of REALTORS® Region 8 Vice President Brenda Hayden Canopy REALTOR® Association Region 9 Vice President Katie Wangrin | ABR®, C2EX, GRI, SRES® Land of the Sky Association of REALTORS® Region 10 Vice President Renee Smith | CRS Raleigh Regional Association of REALTORS® ncrealtors.org • INSIGHT 5
Life in a
Post-COVID World
BY MARK ZIMMERMAN SENIOR VICE PRESIDENT OF EXTERNAL AFFAIRS Greeting someone with a handshake, a hug or a pat on the back. Taking the family to a movie theater or going out to see a show or a concert. Getting together with your fellow REALTORS® at a convention or other event. Will we ever see this again? Yes, we will. A lot has to happen before we get fully beyond the pandemic, but it will come. However, the world, and our world, will be different. Now that we’ve lived in this altered state for most of the year, it’s appropriate to start looking at how COVID will change how we work, how you work and how our industry will be impacted long term. While no one has a crystal ball, we’ve already seen how adapting to a virtual, remote environment has given us new tools to engage with others. Since we’re all in the relationship business, having more ways to involve more people is a good thing. As an example, while we certainly will continue to have in-person meetings in Raleigh with our Legislators (we want the visual impact of “taking over” the halls of the General Assembly), the Zoom Town Halls we had with many of our elected officials this spring allowed many more of you to participate in the process. Moving forward, we will want to utilize both opportunities to remind legislators why REALTORS® and real estate are so important to their constituents and the economy of their districts. Likewise, NC REALTORS® in general, and your government affairs committee specifically, had to increase our communications with you to address issues we have all faced due to COVID. Webinars, emails, newsletters, website pages have all multiplied. That has allowed us the opportunity to ensure you are fully informed about what we’re working on and how you can help us accomplish our collective goals. Expect more of that down the road. COVID is also going to accelerate North Carolina’s growth, both in population and economic development. North Carolina was already one of the fastest-growing states in the nation; expect that to increase. There is an exodus from some very hard-hit areas, particularly on the West Coast and in the Northeast. Many of those people will be moving their families and their businesses to this great
state we call home. The real estate market will continue to reap the rewards from that influx of new North Carolinians. There will be shifts in the real estate market inside the state, too. After being forced to have their employees work from home, many companies are now considering making remote work permanent. That will allow people to work in areas further from their offices. We shouldn’t expect to see the flight from urban areas that New York and San Francisco are experiencing. Our cities aren’t that dense and don’t have many of the issues major metropolitan areas have. However, don’t be surprised when our beautiful, affordable rural areas attract more residents. Many of these areas were seeing population declines. Some of that will be reversed. Of course, that trend will intensify the need to address infrastructure needs in rural North Carolina, most notably broadband access. If you can’t connect, you cannot work remotely. So, your Legislative Committee and government affairs staff is already increasing our emphasis on lobbying for increased broadband access. Progress has been made recently on the resources needed for this. Another change related to work-from-home you might see is new homes will likely be larger. There will need to be a dedicated work-space away from the chaos of home life. Square footage has been decreasing lately; expect it to inch up to accommodate new needs. Of course, with these benefits come costs. Literally—in this case. More people means more demand, which means our lack of supply will result in further housing affordability issues. To address that, you’ll be hearing a lot more from your government affairs staff about making it easier to increase the housing supply. We need fewer regulations, a less onerous approval process and lower fees to be able to house our growing population. Finally, commercial real estate is already seeing some big changes. The pressures on the retail sector have just magnified. Office space needs to be re-thought. On the other hand, if we do get business relocations, industrial and flex sectors should benefit. COVID has undoubtedly changed our lives in 2020. But after it goes away, many of those changes will be here to stay. The good news is at the center of many of those changes are REALTORS® who play such a pivotal role in transactions and transitions. We in government affairs have a central role to play as well. We need to ensure the government is ameliorating problems, taking advantage of new markets, and not over-regulating the shifts that are underway. ncrealtors.org • INSIGHT 7
Providing resources to
CREATE, EXPAND AND ENCOURAGE HOMEOWNERSHIP OPPORTUNITIES for North Carolinians
ncrealtorshf.org
NC REALTORS®
Property Management Division WHY YOU SHOULD JOIN
BENEFITS
The Key to Opening New Doors The business opportunities in property management are expanding constantly, but the demands on your time are increasing just as fast. The objective of the NC REALTORS® PMD is to provide legislative, educational and networking opportunities to North Carolina’s professional property managers so they can you stay up-todate on trends and developments.
+ PMD Legal Handbook + Educational Meetings + Legislative Participation + Statewide Professional Networking
8 INSIGHT • November 2020
How to Join Any member of NC REALTORS® may join PMD. Visit ncrealtors.org/PMD or contact Amy Kemp at akemp@ncrealtors.org for more information on PMD.
legal
QUIZ Test your knowledge of the back-up contract addendum BY WILL MARTIN, GENERAL COUNSEL
1.
A back-up contract created using the Back-Up Contract Addendum (Form 2A1-T) becomes binding only if and when the seller notifies the buyer that the primary contract has been terminated. True or False?
2.
Since a back-up contract becomes effective when signed, the back-up buyer may begin conducting due diligence immediately. True or False?
3.
The seller may not amend or modify the primary contract if there is a back-up contract on the seller’s property. True or False?
4.
The Initial Earnest Money Deposit becomes due and payable if and when the seller notifies the buyer that the back-up contract has become primary. True or False?
5.
If the seller notifies the back-up buyer that the back-up contract has become primary, the backup buyer is not obligated to pay the due diligence fee so long as they terminate the back-up contract within two days. True or False?
6.
Once the seller provides written notice to the buyer stating that the back-up contract has become primary,
the back-up buyer is obligated to perform the back-up contract. True or False?
7.
The seller may accept multiple back-up contracts and later decide which back-up buyer to proceed with if the primary contract is terminated. True or False?
8. 9.
The Back-Up Contract Addendum may not be used to create a second back-up contract. True or False?
When completing an offer that includes a Back-Up Contract Addendum, a buyer agent should insert a date in the Settlement Date blank in paragraph 1(l) of Offer to Purchase and Contract that is the buyer agent’s best educated guess about when Settlement of the backup contract will take place, based on the circumstances existing at the time of the offer. True or False?
10.
If a seller enters into a back-up contract, the listing agent is not obligated to let the primary buyer know about the existence of the back-up contract. True or False?
HOW DID YOU DO? Turn the page to discover the answers. ncrealtors.org • INSIGHT 9
legal QUIZ Answers 1.
False. A back-up contract using the Back-Up Contract Addendum becomes binding when signed by both parties, and the seller’s acceptance is communicated to the buyer agent, just like any other contract. The parties’ respective obligations to complete the transaction are indeed contingent on the primary contract being terminated, but the existence of that contingency doesn’t mean that the back-up contract isn’t a binding contract. (When does a backup contract become binding? Release date: 12/08/15, Category: Forms/Addenda to Offer to Purchase and Contract)
2.
False. Paragraph 9(b) of the Addendum provides that the Due Diligence Period begins following the seller’s notification to the buyer that the primary contract has terminated, and it runs for the number of days specified in the blank in that paragraph. (Is a back-up buyer entitled to conduct due diligence before becoming the primary buyer? Release date: 05/30/17, Category: Forms/Addenda to Offer to Purchase and Contract)
3.
False. Paragraph 4 of the Addendum states that “[m] odification of the terms or conditions of the Primary Contract, including extensions of time, shall not constitute a termination of the Primary Contract and shall not cause this Back-up Contract to move into a primary position.”
4.
False. Paragraph 6 of the Addendum provides that the Initial EMD must be deposited within three days following the effective date of the back-up contract.
5.
False. Paragraph 9(a) of the Addendum provides that the DDF must be delivered within two days after the seller notifies the back-up buyer that the back-up contract has become primary. It also clearly states that the DDF becomes due and payable at the time of the seller’s notice. (The Back-Up Contract Addendum and Payment of the Due Diligence Fee, Release date: 09/07/17, Category: Forms/ Addenda to Offer to Purchase and Contract)
6.
False. Tricky question. According to paragraph 10 of the Addendum, the back-up buyer’s right to terminate the back-up contract ends when the buyer receives “Notice of Primary Status” from the seller. However, written notice that the back-up contract has become primary is not, by itself, sufficient. According to paragraph 8 of the Addendum, the seller must provide two items to the buyer: (1) notice that the back-up contract has become primary and (2) written evidence that the primary contract has been terminated. Documents that will suffice as evidence that the primary contract has been terminated are listed in paragraph 2 of the Addendum. (Back-Up Contracts, Notice of Primary Status, and the Due Diligence Fee, Release date: 07/16/20, Category: Forms/Addenda to Offer to Purchase and Contract)
10 INSIGHT • November 2020
7.
False. As noted in question # 1’s answer, when an offer containing a Back-Up Contract Addendum is signed, and acceptance is communicated to the buyer or the buyer’s agent, a binding contract is formed. If a seller accepts more than one back-up contract using the Addendum as written, they would be under contract with two buyers for one property at the same time. According to paragraph 8 of the Addendum, the seller is required to promptly notify the back-up buyer if the primary contract is terminated. The seller is not at liberty to choose which back-up buyer to do business with by providing the required notice to only one of the back-up buyers but not the other(s). (Can the Back-Up Contract Addendum be used to create more than one back-up contract? Release date: 08/06/20, Category: Forms/Addenda to Offer to Purchase and Contract)
8.
True. The Addendum is only designed for one backup contract at a time. If a seller wants to accept a second back-up contract, an attorney should be engaged to create a custom addendum or modify the Back-Up Contract Addendum to make the obligations of the seller and the second back-up buyer contingent on both the primary contract and the first-back up contract being terminated. (Can the Back-Up Contract Addendum be used to create more than one back-up contract? Release date: 08/06/20, Category: Forms/Addenda to Offer to Purchase and Contract)
9.
False. Although at the time of writing a back-up offer, it is not known if or when the primary contract will terminate, the buyer agent doesn’t need to guess at a Settlement Date for the back-up contract because under paragraph 9(c) of the Addendum, the parties agree that the Settlement Date will be an agreed number of days following the seller’s delivery of Notice of Primary Status. The “NOTE” at the end of paragraph 9 of the Addendum instructs agents to insert “See attached Back-Up Contract” in the blanks for both the Settlement Date and Due Diligence end date in the Offer to Purchase and Contract.
10.
True. The existence of the back-up contract is not a material fact that would have to be disclosed to the primary buyer. According to the Real Estate Commission’s License Law and Rule Comments, material facts include facts relating directly to the ability of the agent’s principal to complete the transaction. The existence of the back-up contract does not relate directly to the ability of the seller to complete the transaction with the primary buyer. (Disclosure of Back-Up Contract, Release date: 02/29/12, Category: Disclosure)
STUDY HARD If you’re not doing so already, be sure to read the Q&As that appear in the REALTOR® Rundown every Monday. It’ll help you on the next quiz!
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12 INSIGHT • November 2020
Working with Divorcing Couples BY LEE NELSON A couple filed for divorce, and both of them stopped paying their bills. The house was heading for foreclosure. As their REALTOR®, Jon Heath got in touch with the lender every day to keep them current with the house sale. He finally got a contract on the house, but the wife didn’t want to sign it. “She felt the husband owed her more money in the overall settlement,” says Heath, an agent at ReSo Realty in Apex, N.C. He also is a Certified Divorce Real Estate Expert (CDRE™). “I kept telling her that this is about the house. The equity from the sale would have netted both of them $30,000. I asked her if she was willing to let go of $30,000.” Two days later, Heath’s client agreed that she didn’t want to lose the money. Being a REALTOR® to divorcing or already divorced couples can be rewarding and uplifting, but it also might involve twists and turns you didn’t expect. It’s Not For The Faint Of Heart For many years, Laurel Starks has served as a court-appointed REALTOR® for some of the nastiest divorce cases. They include incarcerations, restraining orders, suicides and attempted murders. “It’s messy, and it’s sad,” says Starks, founder of Ilumni Institute (formerly the Divorce Real Estate Institute, LLC) in Rancho Cucamonga, California. She is also known for leading the Starks Realty Group of Keller Williams and authoring the book, The House Matters. “I even had a case where the husband assaulted the wife’s attorney. This is what you get when you work in this field of divorce real estate,” she explains. But not every divorce case brings such horror or pain. You end up helping people during some of the worst days of their lives. Decisions get complicated. Emotions run hot and cold. But in the end, you help
ncrealtors.org • INSIGHT 13
them move on to the next chapters of their lives. Starks’ organization specializes in divorce real estate training and issues the CDRE™ certification. Agents such as Heath, divorce attorneys and judges from across the country are being educated about the complicated real estate components of divorce.
“The emotions of a failed marriage can involve everything, including anger, fear, sadness, numbness and elation. As a REALTOR® of a splitting couple, you learn to understand that you will be met with a fight, flight or freeze response,” says Starks. “We must recognize the magnitude that the sale of the house has on a family and acknowledge the trembling fear that drives much of the emotion we face with our clients,” she emphasizes. “Don’t overwhelm them with a laundry list of stuff to do, thinking you’ve done your job. Give them baby steps.” Stay Neutral Throughout The Process Each party sets their perception of what transpired. Their perception is just that—their perception. You, as the third, neutral party, accept and listen to both sides. “Neutrality is one of the biggest things,” Starks emphasizes. Starks preaches in her classes that you cannot take sides in the divorce, even though it’s very easy to do so. Most likely, one person in the couple will always be nicer, smarter, more cordial or more respectful. Starks did end up falling for the supposed victim in a divorce case once. The woman told her the husband always controlled the money and hid it from her. Starks’ client went on to fabricate stories about his abusiveness to her and the children. “She was trembling and in tears,” Starks says. “I felt so horrible for her.” But later on, Starks found out the woman turned out to be the nightmare and made up the stories. “You might be dealing with narcissistic personalities, substance abuse, restraining orders and more,” she states. “But you remain neutral. You can’t become the advocate for one side or you’ve lost it.” The Legalese Of It All “The subject of divorces and separations for REALTORS® can be complex,” says Will Martin, general counsel for NC REALTORS® and manager at Martin & Gifford, PLLC in Winston-Salem, N.C. He and his two partners answer questions involving divorcing clients a fair amount on the REALTORS® Legal Hotline. Here are a few things REALTORS® should understand and know about situations: 14 INSIGHT • November 2020
• As a general rule of thumb, when it comes to selling property, a spouse whose name is not on the deed still needs to be involved in the process. • If someone buys property in their own name alone, either before or after they are married, the nonowner spouse must be involved in the paperwork if the spouse who owns it later decides to sell it. “The non-owner spouse has certain potential inheritance rights arising out of the marriage,” Martin says. But having that other spouse sign the listing agreement, the sales contract and the deed has nothing to do with the division of proceeds of the sale of the property. “It is to release the inheritance rights they have so the spouse who owns the property can convey ‘good’ title under the Real Property Laws,” he adds. “Once divorced, that person wouldn’t have any inheritance rights under the law.” • If the property is jointly owned and the divorce is amicable, one of them can give the other power of attorney to authorize the broker to deal with just one of them with making mundane decisions in connection with the transaction. “Not all divorces are acrimonious,” Martin says.
“About 40 to 50 percent of married couples in the United States divorce.” – The American Psychological Association
• If the property is owned by one spouse and the divorce is amicable, a free trader agreement would give the owner spouse the right to sell the property without the involvement of the non-owner spouse. A free trader agreement is, in basic terms, a document prepared for the purposes of waiving each spouse’s rights as to real estate and creating a right to buy and sell real estate independent of the other. This can be done in a premarital agreement, antenuptial agreement, or a separation agreement. “If someone says they have such an agreement, I would strongly encourage the broker to have a real estate attorney to look it over,” Martin says. “Don’t assume you can do this deal without the husband or wife being involved in the process.” From Minister To REALTOR® Heath has been married 45 years, and he served as a minister for more than 30 years. Through his church, he sponsored and facilitated a faith-based program called Divorce Care. It helps people understand the emotional stresses they are going through are normal. “The sessions delve into finances, but not heavily into real estate,” he says. So, when he decided to get into real estate,
he began to understand that he needed more knowledge of the divorce process to help couples selling or buying homes during this crisis in their lives. He turned to Starks’ program to grasp the language of the law and how lawyers’ process. After earning his CDRE™, he worked with a couple. The wife, in particular, didn’t really know what to do next. She wanted to keep the house for stability for the three children. “I had every indication that the man was going to be a good man and provide for the family,” he adds. After a failed meeting with a lender who knew nothing about divorces, the wife was able to talk with a divorce lending professional, whom Heath had found. The lender showed her ways she could keep the house financially. “That is my first goal with every client. If one of them wants to keep the house, let’s see if we can get that done,” Heath explains. Just a few months ago, that woman called him and said, “If I’m thinking someday that I want to sell this house and do something different, you will be the first person I call.” “That is something that agents don’t understand. They look at divorcing couples as an opportunity for a listing right away. It’s more than that,” he states. “You are meeting people at such a crisis level. Whatever you can do to bring civility and that trust factor, it means a lot.” ncrealtors.org • INSIGHT 15
5 Tips For Being A Good REALTOR® for Divorcing Clients:
Pandemic Might Cause A Jump In Divorces According to the American Psychological Association, about 40 to 50 percent of married couples in the United States divorce, and the divorce rate for subsequent marriages is even higher. “When those divorcing couples need or want to sell the family home, 50 percent of those divorce listings fail to sell with the first REALTOR® that is hired,” Starks says. “Many agents just don’t understand how to handle the volatility, emotions and complications that can happen.” A jump in the number of divorces could happen this year and next because couples who were already on shaky ground before COVID are now quarantining together. “The situation of COVID has shone a spotlight onto the strengths and weaknesses of marriage,” she says. “The family law community is expecting a surge in filings as courts begin to open up more.” Starks talks with many family and divorce attorneys throughout the country. They believe that the extra pressures of losing jobs or wages plus staying home all day and all night with the kids can push people over the edge. Their regular routines—which sometimes included ignoring the marital problems—have gone into a tailspin. “Selling the family home during a divorce only magnifies stress for everyone,” Heath says. “And with the pandemic, couples who are on the edge of disaster might decide that sticking it out any longer would be harmful to themselves, their kids and their lives.” Heath admits that in regular real estate, there are usually at least three minefields that happen throughout the process. “Rarely do things go without hitches. But in divorce real estate, you have at least a dozen minefields before you even get started.” Lee Nelson is a freelance journalist from the Chicago area. She has written for Yahoo! Homes, TravelNursing.org, MyMortgageInsider.com and REALTOR® Magazine. She also writes a bi-monthly blog on Unigo.com.
16 INSIGHT • November 2020
(1)
Show No Bias “You have to make sure you don’t have any appearances of bias,” Heath says. “If I have a conversation with one spouse, I need to have the same conversation with the other one. If I email one spouse, I must email the other one right away—not in a day or two.”
(2)
Reduce Messages To Their Attorneys “Don’t send all your communications to their lawyers because lawyers cost them money, and some of your clients don’t have any money,” Starks adds. “Pick and choose the most important information they should receive.”
(3)
Learn The Lawyer World If you are going to be successful in dealing with divorce, you will need to earn the respect of attorneys by being a resource to them. Heath adds, “It is a highly professional world. Be honest with them. Remain credible. They are in law to do law. They aren’t in law to do real estate.”
(4)
Be Conscious Of Your Own Welfare “When you are stepping into the middle of litigation or an emotional setting, you are stepping into a real estate war zone,” Starks says. “It is purposeful work, but you must be very comfortable to be in conflict. I take a lot of spa days. Good self-care is important, too.”
(5)
Validate Your Clients “When dealing with high conflict, the people in it are not hearing you or listening to you,” Heath states. “Express an understanding for what they are feeling. If there’s something you need them to do, communicate with them like it’s their idea. You then have the capacity to negotiate and get them in agreement.”
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Year in review Even though 2020 presented new and unexpected challenges, NC REALTORS® continued its work to provide the highest levels of service and impact. Here’s a snapshot of what we’ve been up to this year, plus a look at the many great achievements of our members.
Raleigh’s Roaring 20s NC REALTORS® PAC event, January 2020
Vision Quest, January 2020
18 INSIGHT • November 2020
Maren Brisson-Kuester’s induction as the 2020 NC REALTORS® President at the Inaugural Installation and Reception in Charlotte, N.C., January 2020
Advocate
Aggressively advance real estate interests through advocacy, political action, and consumer and member engagement.
50
Successfully lobbied Governor to designate real estate as an essential business
Virtual Meetings
with elected officials at the federal and state levels
Successfully passed legislation to enable remote closings
Fought 16
Local stay-at-home orders which restricted real estate services
26 local emergency orders Monitored
which restricted property management and vacation rental activity
RPAC Hall of Fame NC REALTORS® would like to show tremendous gratitude to the new members of the RPAC Hall of Fame for their longtime commitment to RPAC and the REALTOR® Party. Congratulations to our 2019 inductees:
$25,000 LEVEL WENDY HARRIS Longleaf Pine REALTORS®
$50,000 LEVEL ANDREA BUSHNELL NC REALTORS®
$50,000 LEVEL BRADLEY COHEN Canopy REALTOR® Association
NC REALTORS® Gives Back Day, June 2020
NC REALTORS® Inaugural Installation and Reception in Charlotte, N.C., January 2020 From left: Anthony Lindsey, John Smaby, Asa Fleming and Wendell Bullard
CE at Sea,February 2020
ncrealtors.org • INSIGHT 19
Elevate
Promote professionalism, successful business practices and quality transactions.
28 18
9,300 hours of continuing education
Graduate, Realtor®
Institute
Katherine Acenas Eddie Alie Samantha Allen Faith Anderson Shannon Anderson Peter Anderson Goretti Arruda Marvette Artis Jaquelene Basson Joan Bello Rosa Bennett Stacy Bernas Christine Bianchi Cheryl Black Amy Boltz LaTondra Bonds Nell Bott Katherine Brasseur
Timothy Brown Shellee Brunn Deborah Buehler Brett Carraway Anthony Colella Renee Cooney Robin Costner Farrah Cox Amanda Davis Test Donny Cindi Doyle Nichole Farlow Danica Fletcher Dana Galli Jeanne Giordano Felicia Grant John Green Barry Greene
20 INSIGHT • November 2020
79
legal & safety videos
of free & discounted professional development
3,800 hours
virtual webinars & courses
Legal Q&As
4,483
2 COVID Addendums added to Standards Forms
LEGAL HOTLINE Questions
GRI Designees Earning the Graduate REALTOR® Institute (GRI) designation is a way to stand out to prospective home buyers and sellers as a trusted resource who has in-depth knowledge on the fundamentals of real estate. The following members earned this designation in 2020:
Bryan Guarnieri Kathy Haines Logan Hawley Alicia Hedrick Nathan Hepler James Howard Denise Hurd Mary Jarvis Michelle Keaton-Barrow Kimberly Knight Nancy Kuechler Rick Lewis Christie Lilliston Laurie Lynch Jessica Martin Rebecca Murel Patricia Murphy Dawn Myhre
Susan Napolitano Julie Newman Fonda Norris Michelle Okpych Jennifer Olin Samantha Page Mark Pahlmann Laura Peek Kamelia Pitts Tamara Rash Tonja Roach Marvin Robinson Christine Santuccio Benita Scott LaTonya Simrel Wright Doug Streetman Rhonda Szostak Linda Thompson
Emily Tischer Eddie Twyne Brenda Vrooman Jason Walters Karen Watts Jennifer Weldon Kristina White Cheri Wickham Lily Yu Nicholas Zappitelli Darlene Zeitler Vicki Zina As of 10/15/20
Engage
25
Provide value through relevant solutions to meet the needs and challenges of members.
Status updates
to members on COVID-related information & resources
53% increase
7
state & local associations consulted with on creating or growing diversity programming
in PMD members since the start of the year
Annual Awards During our virtual October Business Meetings, multiple NC REALTORS® members were honored and recognized for their achievement and service to the association and industry.
REALTOR® OF THE YEAR Asa Fleming Raleigh Regional Association of REALTORS®
FEDERAL POLITICAL COORDINATOR AWARD Linda Trevor Raleigh Regional Association of REALTORS®
HALL OF FAME AWARD Wendell Bullard Durham Regional Association of REALTORS®
REGIONAL SERVICE AWARD, REGION 2 Jim Goodman Brunswick County Association of REALTORS®
HALL OF FAME AWARD Sandra O’Connor Greensboro Regional REALTORS® Association
REGIONAL SERVICE AWARD, REGION 4 Kim Dawson Durham Regional Association of REALTORS®
HALL OF FAME AWARD Patrice Willetts Cape Fear REALTORS®
REGIONAL SERVICE AWARD, REGION 5 Ray Alexander Greensboro Regional REALTORS® Association
INNOVATION & ENTREPRENEURIAL AWARD Stephen Long Winston-Salem Regional Association of REALTORS®
REGIONAL SERVICE AWARD, REGION 6 Penny Boyles Winston-Salem Regional Association of REALTORS®
BEN BALL COMMUNITY SERVICE AWARD Tony Jarrett Greensboro Regional REALTORS® Association
REGIONAL SERVICE AWARD, REGION 8 Anthony Lindsey Canopy REALTOR® Association
COMMITTEE MEMBER OF THE YEAR Rick Westover Greensboro Regional REALTORS® Association
REGIONAL SERVICE AWARD, REGION 10 Leslie Williams Raleigh Regional Association of REALTORS®
ADVOCACY CHAMPION AWARD Senator Rick Gunn
ncrealtors.org • INSIGHT 21
Rising Stars These REALTORS® have been in the business for five years or less and have provided exemplary service to their local boards while exhibiting strong leadership potential. We look forward to seeing where these rising stars take us next.
NC REALTORS® William C. Bass Leadership Academy Class of 2020 Throughout the challenges of 2020, we kept our Leadership Academy participants engaged in leadership development. The Class of 2020 attended two in-person retreats before pivoting to virtual retreats which included sessions with NAR and NC REALTORS® leadership. They partnered with NC REALTORS® Housing Foundation
PETIA BLAGOEFF Cape Fear REALTORS®
PAM BUCK Coastal Plains Association of REALTORS®
CORINNE CROWNOVER Durham Regional Association of REALTORS®
STEPHANIE DEESE Brunswick County Association of REALTORS®
HUBERT HENDERSON High Point Regional Association of REALTORS®
OLITA BOONE Johnson County Association of REALTORS®
NATALIE PAINTER Outer Banks Association of REALTORS®
SOFIA CRISP Greensboro Regional REALTORS® Association
FARA POURSHARIATI Raleigh Regional Association of REALTORS®
MAGDA ESOLA Canopy REALTOR® Association
MICAELA TOSI Greensboro Regional REALTORS® Association
STEPHANIE ESTRADA Land of the Sky Association of REALTORS®
CALLIE WALKER Winston-Salem Regional Association of REALTORS®
JIM LOGAN Winston-Salem Regional REALTORS® Association
ABIGAIL WILSON Canopy REALTOR® Association
KIM PERKINS Jacksonville Board of REALTORS®
22 INSIGHT • November 2020
as part of their class project to help make sure #NCRGivesBack LEADERSHIP Day was a virtual ACADEMY success. This is just one of many accomplishments. This class will continue into 2021 and graduate during NC REALTORS® 100-year Annual Conference. NC REALTORS ® WILLIAM C. BASS
Impact Build vibrant, diverse communities and enhance the quality of life in North Carolina.
$200,000 $15,000
DEJANE PERRY KERR Raleigh Regional Association of REALTORS®
NIKKI PRATT-NUNLEY Canopy REALTOR® Association
CATHY ROBERTSON Winston-Salem Regional REALTORS® Association
KURT ROGERSON Carteret County Association of REALTORS®
CHARLES UMSTEAD Raleigh Regional Association of REALTORS®
DAVID ZEITZ Longleaf Pine REALTORS®
helped support North Carolinians struggling with rent & mortgage during COVID-19
donated to support wildfire disaster relief efforts on the West Coast
An energetic group of volunteers from the Union County Association of REALTORS® helps build a new Habitat for Humanity house.
NC REALTORS® Gives Back Day When REALTORS® come together, communities thrive. In 2020, the NC REALTORS® Housing Foundation’s service day initiative shifted to a virtual collaboration of philanthropic activity. We were blown away by the response.
9 • • • • • • • • •
Local Associations participated through COVID-19 response and housing-related service projects.
Albemarle Area Association of REALTORS® Canopy REALTOR®Association Carolina Smokies Association of REALTORS® Coastal Plains Association of REALTORS® Greensboro Regional REALTORS® Association Johnston County Association of REALTORS® Mid Carolina Regional Association of REALTORS® Raleigh Regional Association of REALTORS® Union County Association of REALTORS® ncrealtors.org • INSIGHT 23
The Toughest Sale You have Ever Had BY LEE NELSON Lee Nelson is a freelance journalist from the Chicago area. She has written for Yahoo! Homes, TravelNursing. org, MyMortgageInsider.com and REALTOR® Magazine. She also writes a bi-monthly blog on Unigo.com. No matter how many years you’ve been a REALTOR®, you begin to understand that real estate is eyeopening every day and not for the faint of heart. Although most transactions only have a few hiccups, sometimes everything breaks loose, goes awry or just stalls out for one reason or another. “I truly considered quitting real estate after this one transaction; it was so bad,” says Suzanne Strength, broker of The Rolles Team at Lake Norman Realty in Denver, N.C. and president-elect for the 2020 Lincoln County Board. “I felt powerless and flabbergasted by the extreme views and emotions of my clients.” Strength and five other North Carolina REALTORS® divulge their hardest transaction stories and how they worked through to get to the other side.
Undeniably Unreasonable Strength worked years ago with a newly married, professional couple who seemed very intelligent and number-oriented. “I found them kind on the phone but slightly standoffish upon our first meeting,” she says. After going under contract, a sticky point arose when the buyers didn’t want the playground equipment in the backyard. But once the sellers sold it on Craigslist, the buyers threatened lawsuits and refused for Strength to purchase a new swing set to keep the deal together, even though they didn’t even have children yet. The sellers offered credit, and she advised them to take it. That appeased them, for a while. Then, at the final walk-through, the buyers were made aware that the movers had accidentally packed up the garage door opener, extra house keys and pool remote controls. The buyers became furious, saying that the sellers did it on purpose. “I told them that these things happened all of the time. And with the sellers having a new baby, they probably weren’t able to oversee the movers like they normally would,” she explains. “At this point, the wife screamed at me that I was on the sellers’ side.” Strength teared up. Somehow, they all ended up at the closing, and she immediately ran out afterward to buy a new set of keys and garage door openers for the disgruntled buyers. “They took money for the pool remotes and never took my calls again,” she adds. Lesson Learned “I learned the hard way to keep my emotions out of the situation, do the best I could and let the rest go. Some folks cannot be reasoned with.”
Flag Fiasco A long time ago, Cindy Chandler planned a meeting with a very important client who was interested in a site in her company’s 300-acre development. “I sent the surveyor over there on Friday to stake out the site with flags so it could be seen from the air,” says Chandler, owner of The Chandler Group in Charlotte. “The plan was to see it in a small plane then drive it.” She picked up the client after the weekend, and they got on a plane to tour it. “When we got to the site, the client looked down and asked, ‘So, the site is round?’ When I looked out the window, I saw a very large circle staked out in surveyor’s flags in a cleared area,” she adds. “There were also tracks in the dirt, and flags were everywhere.” Apparently, over the weekend, the neighborhood kids from about a mile away saw the flags, made a motocross track and “probably had the time of their lives,” Chandler explains. In her horror, she had the pilot take them back so she could drive the client to the site where he could view it in person. “The client thought it was hilarious, and we closed sitting in a small, tasty bakery nearby. I was young and unsure of myself, or I would have found the humor in it, too. I do now,” she adds. Lesson Learned “Get over yourself and learn to go with the flow,” she says. “Make the best of a bad situation.”
ncrealtors.org • INSIGHT 25
Collapsed Closing A couple from up north wanted a large house on several acres, where the man could run his business. Micaela Tosi, REALTOR® and broker at 360 Realty in Greensboro, met the couple who seemed super nice and accommodating—at first. She showed them an in-house listing for a log home on more than 12 acres with a stone fireplace and spectacular views. The trouble started during the inspection after they went under contract. The man brought his whole family, including his dad. They followed the inspector around the entire time, questioning him and telling him what he was doing wrong. “The report comes back, and there are several items that the buyer wanted the seller to take care of, including structural components of the fireplace and also a retaining wall,” Tosi says. “The seller was very accommodating and agreed to repair the retaining wall as well as other items.” However, the sellers also had someone come out to look at the fireplace, and that person didn’t see any issues with it. “The buyer then wanted the seller to reduce the price by $50,000, which I told him was really not feasible. But I brought it to the other agent,” Tosi says. “I did everything I could to represent them the best I could. However, these were very difficult people to work with.” The buyer accused the seller of misrepresenting and lying. He and the buyer’s father ended up calling Tosi several times, yelling and cursing so much; both then proceeded to threaten to sue the seller, their agent, her, her company and the inspection company. “I was so overwhelmed by this that we ended up terminating the contract. The buyer wanted to be reimbursed for everything he had spent. I believe they found a home with another agent afterward, but I did not keep up with them,” she says. Lesson Learned “If something goes wrong in a transaction, don’t immediately blame yourself and look at what you should/ could have done differently. Sometimes you just don’t click or mesh with certain people, and sometimes losing a client is the best thing that can happen,” Tosi says.
26 INSIGHT • November 2020
Historic Headache “It’s bad enough when one is involved in selling a home in the historic district part of town. The homes are, well, historic, which makes them old,” says Jessica Bryan, managing broker at Real Living Carolina Lifestyles Realty in Chapel Hill. “There are always issues with old homes.” Most of the time, issues don’t arise until the inspection. “And sometimes, old, cranky people live in old homes. And sometimes, they don’t want to move,” she says. Such was the case of a home she sold several years ago. A widow—who was the second wife of the homeowner and who had been allowed to remain in the home for a while after her husband’s death— was being asked to move out. The children of the deceased owner had a buyer for the home. Bryan represented all four of the siblings, who all lived out of state. The widow refused to cooperate or find another place to live. In fact, she refused to let inspectors, repair people and the appraiser into the home. Asbestos, lead paint and a buried oil tank needed to be removed. The electrical wiring was so old that it had to be completely replaced due to it being a fire hazard. “The buyer’s attorney called asking me to help,” Bryan says. She also got calls from the widow’s attorney, who was frustrated with her own client. Plus, calls came in daily from each of the siblings—who liked to talk about how horrible their stepmother was. “Eventually, I had to call for law enforcement to assist in getting the widow to move,” she states. Lesson Learned “Almost everything I ever learned in real estate was put to use on this one home. The most important aspect of the transaction was that I refused to fall victim to everyone’s drama.”
Hemp Hurdles She was new to the commercial industry and the hemp industry in North Carolina, but Debbie A. Gallimore— principal/broker-in-charge at Gallimore & Associates, LLC in Raleigh—represented people who wanted to lease commercial space for their hemp company. “Not only introducing myself to my peers, [but] I also had to sell them on this product called industrial hemp, and that required educating my colleagues,” she says. She many times would have to throw in an awkward request, “I’m representing a hemp company. We are interested in leasing space in your A-class shopping center.” They would come back quickly with basic questions like, “What’s hemp? Marijuana?” Their eyes bugged out, and the hesitations continued. Gallimore would respond with, “Yes, it’s cannabis and also a cousin of marijuana. But it’s legal.” Then, she would have to go into her spiel about the many health benefits, some of the rules and laws and so forth and so on. “It took several months to finally receive a yes from an A-Class center, but once I was given that yes, I was off to the races,” she explains. That first fully executed lease made all the difference. The experience opened many doors for Gallimore, and now people seek her out. “I was at the forefront of the introductions, negotiations and more,” she says. “It has propelled my visibility amongst my colleagues and has given insight on how to be successful as a commercial professional. I appreciated all the bumps and bruises because I gained many relationships that otherwise may not have been available.” Lesson Learned “During my journey, I learned how to be assertive and be bold, and used these attributes to engage the individuals that can and are willing to assist your endeavors. I also didn’t accept no, but created and encouraged alternatives,” she says.
Fetching Feline Early on in Diania Alfonso’s career, she was thrilled to show a beautiful Cape Cod home in the Holly Ridge area. “Arriving early, I was super pumped and prepared to meet my newly-relocated-to-North-Carolina buyers. I eagerly awaited their arrival looking rather snappy and wearing beautiful new heels,” says Alfonso, broker/owner at Carolina Modern Realty in Jacksonville, N.C. “Once they arrived, they all walked through each of the beautiful and bright rooms,” she adds. “Upon opening the door to exit, a friendly cat was waiting to come inside. Without a thought, I stepped aside, and so did my buyers to allow this little fellow in,” she says. As the buyers got into their car, it hit Alfonso that there was no evidence of a cat or any pet anywhere. They didn’t see a litter box, no food bowls and no pet toys. “My stomach sinks. I quickly ran inside and began the most tactical commando-style search for this cat,” she adds. She looked under beds, behind sofas and in closets until she finally found him scurrying around. “Content with his new home, the cat was clearly not happy with me clambering around to evict him quickly. After what felt like an eternity and much perspiration on my end, I cornered him by the front door,” Alfonso says. “I think he felt bad for me and scurried out the door across the street to what I can only assume is his actual home. As I walked away, the homeowners pulled into their cat-free home. Relieved, I waved and smiled drenched in sweat and went on to show more homes.” Lesson Learned Make sure you know if the homeowners have pets or not.
ncrealtors.org • INSIGHT 27
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