Arcadia REALTOR Magazine - March/April 2017

REALTOR®

OFFICIAL PUBLICATION OF THE ARCADIA ASSOCIATION OF REALTORS®

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

Dos and Don’ts to Win the Listing See page 12

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ARCADIA REALTOR® · JANUARY/FEBRUARY 2015

MARCH/APRIL 2017 · ARCADIA REALTOR®

Cooper’s Comments

REALTOR® 2017 ASSOCIATION OFFICERS Sylvia Ramos 2017 PRESIDENT Margaret Garemore PRESIDENT-ELECT Kelvin Chang TREASURER Roy Blume IMMEDIATE PAST PRESIDENT BOARD OF DIRECTORS Ryan Asao Julie Bencosme Roy Blume Cecil Griffin James Maceo Joe Pacilio Yvonne Rosas-Petty Irene Truong Frank Spencer

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

ASSOCIATION STAFF

Robin Allen Ext. 307 Director of Finance / Office Manager Robin@TheAAR.com Michael Beltran Ext. 302 IT Director / Webmaster Michael@TheAAR.com Brenda Faltes Ext. 304 Director of Membership & Professional Standards Brenda@TheAAR.com Stephanie Maertens Ext. 303 Director of Education & Commercial Real Estate Stephanie@TheAAR.com Natasha Poon Ext. 301 Membership Services Manager Natasha@TheAAR.com Laura Thai Ext. 304 Director of Broker Compliance & Member Outreach Laura@TheAAR.com Andrew Cooper Ext. 308 Chief Executive Officer Andrew@TheAAR.com

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

Ropes Are For Dopes, My 6 year old son loves the zoo. He likes most of the animals both big and small, feathered and furry. At a recent outing to the Los Angeles Zoo my wife, son and I were watching an elephant being washed by a zookeeper and I watched with curiosity as the large elephant just stood there tethered by a rope around his front foot not attempting to move. It was clear to me the elephant could break free anytime it wanted. So I asked another zookeeper why the elephant didn’t try to snap the rope and roam free. The answer was intriguing: the person said that when elephants are very young the zookeepers use the same size rope to tether them and at their young age, the rope is strong enough to hold them. As the elephants grow older they are conditioned to believe the rope can still hold them, so they never try to break free.

That answer got me thinking. How many of us go through life tethered to a belief that we cannot do something, simply because we failed once before? How many of us are being held back by old, antiquated beliefs that are no longer valid? Worse yet, how many of us are held back because of someone else’s limiting beliefs?

When we got into real estate sales, or the mortgage business or title, etc., we probably were cautioned by well-intentioned friends and family. How many of us heard, “You shouldn’t get into the real estate industry, it’s not stable enough.”? Congratulations! You challenged their limiting beliefs and moved ahead anyway. When we begin to question a negative belief, we automatically weaken it. The more we question our own limiting beliefs, the more those beliefs are weakened too.

Once you realize you are a fantastic REALTOR® or outstanding home warranty salesperson or insurance agent you have weakened that old belief and began to replace it with a new, empowering one.

Let’s recall those glorious times in our past when we were successful and use that experience to lift us to even greater heights.

It has been said throughout history that whatever you believe with conviction, you can achieve. You’ve heard that classic line from Henry Ford when he said, “Whether you think you can or you think you can’t you are probably right”. Let’s not be like the elephants and go through life being tethered because of a limiting belief we were given or developed years ago. Let’s take charge of our business and live it and work it to the fullest. You really do deserve the best.

To your success,

Andrew Cooper Chief Executive Officer

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ARCADIA REALTOR® · MARCH/APRIL 2017

MARCH/APRIL 2017 | VOLUME 21 | NUMBER 2

Contents 7

Regular Features 2

4

5

6

8

Cooper’s Comments

Andrew Cooper, Chief Executive Officer

Market Matters

Market Statistics for the San Gabriel Valley

14

16

On the Cover 12 Dos and Don’ts to Win the Listing From presenting comps to closing the deal, at the end of the day, it’s about establishing mutual trust.

Additional Content 7

Committee Highlight Offering advanced educational opportunities while promoting programs and services to commercial and investment properties.

Attorney Comments

11 AAR New REALTOR® Members The AAR welcomes its newest REALTOR® Members of 2017.

Through the Lens

14 REALTOR® Leader Has Been Dealing with a Nightmare Email Scam for a Year Wire fraud schemes have been a hot topic in the real estate industry lately.

Dave Freeman, AAR Legal Counsel

A Look at What’s Happening Around the AAR

Affiliate Corner

“What is an HO6 Condo Policy” Mark Wu, Allstate® Insurance

15 4 Methods to Earn & Keep Investor Clients Tapping into the investor real estate business is a common goal among agents and brokers.

16 Events 4 Charity “Let’s Play BINGO!” A recap of the E4C Bingo Night held on Friday, March 24 at the Arcadia Community Center.

MARCH/APRIL 2017 · ARCADIA REALTOR®

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Market Matters Market Statistics for the San Gabriel Valley - January 2017

City

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

Zip Code

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

Single Family Homes

Condominiums

Price % Sales of Price Chg from Single Family Median SFR January Homes ($1,000) 2016

Price Median Condo ($1,000)

19 17 4 7 10 18 20 18 16 10 13 9 17

$1,780 $1,800 $483 $430 $415 $435 $625 $653 $829 $633 $2,540 $990 $735

95.6% 18.4% 12.2% 8.2% -17.0% -1.5% 7.8% 11.5% 2.3% 17.7% 35.1% 4.2% 7.1%

Sales Count Condos

4 4 4 1 9 0 4 10 1 2 0 1 2

SFR Only

Price & Chg from Median January Home Price/ 2016 Sq. Ft.

$850 $634 $505 $430 $475 n/a $449 $518 $650 $759 n/a $700 $774

-33.0% -27.3% 32.9% n/a 35.9% n/a -3.5% -10.2% n/a 65.3% n/a n/a 89.2%

$612 $677 $413 $361 $309 $333 $404 $528 $504 $485 $844 $483 $554

Market Statistics for the San Gabriel Valley - February 2017 Single Family Homes

City

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

Zip Code

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

Condominiums

Price % Sales of Price Chg from Single Family Median SFR February Homes ($1,000) 2016

9 14 7 5 8 12 9 17 9 2 5 4 16

$1,288 $1,194 $380 $465 $435 $515 $725 $630 $942 $474 $1,900 $900 $763

ARCADIA REALTOR® · MARCH/APRIL JANUARY/FEBRUARY 2017 2016

9.9% -25.2% -2.4% 23.3% 16.0% 2.0% 11.5% -5.8% 12.0% -19.1% -11.6% -34.3% 1.7%

Price Median Condo ($1,000)

Sales Count Condos

3 6 5 0 6 3 2 8 0 4 0 0 2

$732 $652 $320 n/a $498 $365 $725 $493 n/a $520 n/a n/a $619

SFR Only

Price & Chg from Median February Home Price/ 2016 Sq. Ft.

-9.3% 18.9% -9.6% n/a -6.3% n/a 51.4% -15.5% n/a 17.0% n/a n/a -9.2%

$613 $560 $333 $455 $395 $357 $355 $417 $480 $486 $834 $596 $511

Source: CoreLogic.com

Attorney Comments

By Dave Freeman, Association Counsel

Buyer’s Broker Agreement Recently, a buyer asked his good friend to represent him in making an offer on a $65 million property. Since they were friends, NO WRITTEN COMMISSION AGREEMENT was executed! After a couple of offers and counters around $42 million were made, the buyer consulted with his attorney (near Arcadia), and the deal was ended.

Sometime later, the same buyer bought the same property for approximately $46 million, using the same attorney as his broker. The original agent/broker/friend sued for the $925 thousand commission, and lost!

The Appellate Court made it clear that the Statute of Frauds requires any agreement concerning the sale of real property to be in writing to be binding. Unless you have nothing better to do with your time and gas, be aware, many folks will use you to show them property and then have their relative, attorney or friend write the transaction up for them and receive the commission. Please get the CAR Buyer’s Broker Agreement signed, before finding your buyer their dream home.

Escrow Company Disappears with Clients’ Money This happened recently with a small, apparently broker-owned escrow company, whose name was very similar to a large, well respected escrow company. Buyers lost their (sometimes life savings) money, and agents and brokers are threatened with lawsuits.

Rule:

A. Don’t push your clients toward a particular escrow unless you know they have been around for some time and are likely to be here tomorrow. Title company escrows are covered by insurance companies, independent escrows are generally bonded and insured and audited by the Department of Corporations/ Secretary of State. Broker-owned escrow companies operate separately from the above, and under the Broker.

B. Review your own Errors and Omissions Insurance to be sure you are actually covered and that you can live with the amount of the deductible that you must pay before the insurance kicks in.

Judgment Liens It is a good idea to check the Preliminary Title Report as soon as the escrow is opened (or sooner, if representing the Seller). Various clouds on title may show up that the Seller is reluctant to disclose, or may have forgotten. A perfect example is the Judgment Lien.

When a party gets a judgment (even a small claims judgment) against another, they can get an Abstract of Judgment, that can be recorded.

When recorded, this becomes a lien against the losing party and any real property they own, now or in the (limited) future, until the lien is paid. The abstract can be recorded in as many counties in California as desired. The lien is good for ten years from the date of entry of Judgment, but the Judgment and the lien can be renewed before the ten years is up.

A Judgment of Divorce, requiring spousal or child support can also be recorded, and will be a lien, not limited by the ten year requirement.

MARCH/APRIL 2017 · ARCADIA REALTOR®

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THROUGH THE LENS A Look at What’s Happening Around the AAR

ony e Swearing in Cerem AAR Contingent at th y Portantino for State Sen. Anthon

Navigating a

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5, 201 Sunday, March | ts e e tr S n e 626 Gold

Young Professionals Network Mega Mixer

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ARCADIA REALTOR® · MARCH/APRIL 2017

Transaction from Start to

Annual Luna

r New Year C

Close

elebration

COMMITTEEhighlight Education Committee

By Frank Spencer, Committee Chairman

The Arcadia Association of REALTORS® Education Committee is committed to making the AAR the preeminent training organization for the Real Estate practitioner in the San Gabriel Valley. This goal will be reached by providing an advanced skills and knowledge based curriculum that includes experts from all parts of our industry sharing their knowledge and experience.

The vast majority of our trainings are offered to our members at no charge. And, to non-members at a nominal fee. We also offer advanced educational opportunities such as REALTOR® Designations in a learning-friendly environment hosted by some of the industry’s best trainers.

participants on their techniques in a variety of lead generation disciplines including bulk mail, branding, social networking, cold calling, working with for-saleby-owner properties, and building referral networks.

Other trainings run the gamut of topics from personal and business finance, to tax and legal related topics.

Along with contractual and best practices classes.

We are very proud of the work that we do and we are committed to constantly evolving to meet the needs of our membership!

Finally, our trainings are designed to be as well rounded as we can possibly make them. One such event is our signature Roundtable event in which top producing agents from throughout the region educate

Commercial/Investment Committee

By Nick Zigic, Committee Chairman

The AAR Commercial/Investment Committee has been leading the Commercial revolution amongst REALTORS® for a decade. On top of many activities and educational programs recognized by NAR, we have set a high bar for programs that help our

members become true Commercial practitioners. One of the latest ones is the “in-house” Top Dogs course video-presented by Bob McComb. It is being offered for the first time and is moderated by the Association’s top professionals in the Commercial arena.

The Committee regularly attends the AIR Annual Forecast event and is preparing a local market report for the next issue of the magazine. We are always looking for commercial REALTORS® to bring more value to the committee and to help with our annual signature event, the AAR Commercial Day. This event has been well known and is recognized by the Commercial Brokerage community. If you are interested in joining the committee or one of its task forces, please contact the Association.

MARCH/APRIL 2017 · ARCADIA REALTOR®

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AFFILIATE Corner “What is an HO6 Condo Policy”

By Mark Wu, Allstate Insurance HO6 Condo Policy is a secondary policy to the Master Policy of the Association. Fannie Mae loans now require that all purchasers of Condos & PUDs purchase a separate HO-6 Condo policy. Escrow will not close without receiving an Evidence of Insurance from both the Association’s Master Policy as well as the HO6 Condo Policy of the Buyers. The Covenant, Conditions and Restrictions are the set of rules and regulations that govern a Condominium Complex. Under the Insurance Section is what describes what each Condo Unit Owner is responsible for or obligated to insure. The Association’s Master Insurance Policy only covers common areas for Physical Damage and Liability. To protect themselves and the personal property within their unit, Owners need to purchase a Ho6 Condo Policy.

Most HO6 Condo Policies provide coverage for the following: Dwelling Coverage: In the event of a covered loss, the policy provides coverage for all real property that the CC&R defines as the responsibility of each Unit Owner up to the policy limits.

Personal Property Protection: Provides protection for covered loss to your personal property as a result of covered perils up to policy limits.

Family Liability: Provides protection up to the limits of your policy, against certain liability claims brought by others for bodily injury or damage to their property due to a covered accident.

Guest Medical: Helps pay for medical expenses for guest who are accidently injured on your property as a result of a covered loss, whether or not an accident in your Condo was your fault.

Loss of Use/Additional Living Expense: Helps pay reasonable increases in living expenses in your Condo Unit becomes uninhabitable after a covered loss for up to amount of time specified in the policy.

Loss Assessment: If the HOA levies special assessments against the Unit Owner as a result of certain covered losses in the complex, this coverage will pays Unit Owner’s share of assessment up to the coverage limits of the policy.

Note that all above coverages are subject to the policy terms and condition.

For more information and questions regarding HO6 Condo Insurance contact Mark at: 626-281-6854 or Markewu@allstate.com.

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ARCADIA REALTOR® · MARCH/APRIL 2017

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ARCADIA REALTOR® · JANUARY/FEBRUARY 2015

AAR Members & their Clients are invited to participate in the AAR...

FREE PAPER

SHREDDING DAY

FREE Com mun Even ity t!

Saturday, April 22, 2017 | 8:30am - 12:00pm Arcadia Association of REALTORS® Parking Lot 601 S. First Ave. Arcadia, CA 91006

Bring ALL your unwanted documents to this HUGE FREE paper shredding event!

All materials will be safely shredded in compliance with ALL applicable laws & regulations. · Drive-Through Service Available. · Tell your Clients - They’re invited too & YOU can be the Hero! · No need to remove paper clips, staples, folders, plastic covers & binding. · All paper collected will be recycled.

This event is provided by the Arcadia Association of REALTORS® as another Member Benefit!

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

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ARCADIA REALTOR® · JANUARY/FEBRUARY 2015

Welcome, New Members!

NEW REALTORS® FEBRUARY 2017 Teriza S. Aziz, Century 21 Ludecke Inc.; Yujie Bai, Han Realty; Sandy C. Chan, Keller Williams Executive; Dolly Chen, Highland Real Estate; Julie Cheng, Han Realty; Lu Cheng, IRN Realty; Chi Ping Chiang, VasTree Real Estate; Unjoo Owen Choi, Coldwell Banker Pasadena; Susan F. Cook, Podley Properties; Nicholas A. Demopulos, Demopulos Realty; Akhilesh R. Endurthy, Century 21 Adams & Barnes; Jean-Carlo Feranadez, Podley Properties; Yu Fu, Highland Real Estate; Joseph Z. Fung, Coldwell Banker Dynasty T.C.; Jamie H. Ha, Supreme Investment Corp.;

Katharine Hou, Coldwell Banker George Realty; Lei Jia, IRN Realty; Siqi Jiang, Highland Real Estate; John Y. Jung, Moon Realty; Jiajie W. Li, Treeline Realty & Investment; Tian L. Li, Highland Real Estate; Shirley Lian, Supreme Investment Corp.; Juliette Lin, ALTC Realty; Jun Lin, Supreme Investment Corp.; Nora Manoukian, Century 21 Village Realty; Deborah C. Pringle, VasTree Real Estate; Chelsea Shang, Keller Williams Executive; Jessica Y. Soo, John Aaroe Group; Minggang Sun, Echain Realty; Peter Sun, Treeline Realty & Investment;

Kelsey W. Vien, Century 21 Dynasty; Mike M. Voo, Rega Realty Services; Baoke Wang, Re/Max 6000 Realty; Josephine C. Wang, Coldwell Banker Dynasty T.C.; Shaofan Wang, IRN Realty; Bin Xin, Supreme Investment Corp.; Nini Xu, Keller Williams Realty; Kevin Yee, HouseUSA Realty & Mortgage; Mei L. Ying, IRN Realty; Amy Zhang, Long Dragon Realty Group, Inc.; Junjie Zhang, Long Dragon Realty Group, Inc.; Sindy Y. Zhao, Coldwell Banker Dynasty Arcadia; Zhuohao Zhao, Coldwell Banker Dynasty Arcadia; Jinziong Zhou, Echain Realty; Jing Jing Zhu, Re/Max Premier Properties Arcadia

Also shown: Matilde Gonzalez, 2017 Membership Committee Vice-Chair; Julie Bencosme, 2017 Membership Committee Chair; Shirley Chen, 2017 Membership Committee Vice-Chair; Sylvia Ramos, 2017 AAR President; Mark Ramos, 2017 LGR Committee Vice-Chair and Andy Bencosme, 2017 LGR Committee Vice-Chair

NEW REALTORS® MARCH 2017 Nathalie A. Abdoyan, Century 21 Adams & Barnes; Elenora L. Aluyon, Century 21 Ludecke Inc.; Daphne Chang, Grandmark Realty Inc.; Tehying E. Chang, Coldwell Banker George; Jackson H. Chen, Highland Real Estate; Peter C. Chen, HomeSmart Realty; Sung N. Choi, Keller Williams Executive; Lisa L. Chu, Supreme Investment Corp.; Shen Cong, Highland Real Estate; Kevin Cumunel, Coldwell Banker Arcadia; Huy G. Giang, Highland Real Estate; Shumin Guo, VasTree Real Estate; Lara Haddad, Valleywide Realty; Jack S. Hu, Supreme Investment Corp.; Katy Huang, Coldwell Banker George;

Yen Huynh, IRN Realty; Siqi Kang, IRN Realty; Sekai Kusama, Keller Williams Realty; Jasper C. Lai, Highland Real Estate; Sin Y. Lau, Han Realty; Calvin Li, Echain Realty; Joy Q. Li, Coldwell Banker Dynasty Arcadia; Wenjia Li, Treeline Realty & Investment; Yen-I Liao, Highland Real Estate; Ying Liu, Supreme Investment Corp.; Zhixiao Liu, Highland Real Estate; Shuqin Lu, Highland Real Estate; Reynaldo O. Mariano, Century 21 Ludecke Inc.; Alfredo Mejia, Goldline Realty; Patricia Pearson, HomeSmart Realty;

Michael W. Ragusa, Century 21 Adams & Barnes; Bing Shen, Highland Real Estate; Justin P. Smith, Berkshire Hathaway HomeService; Vevian Tran, Coldwell Banker Dynasty T.C.; Kristine L. Trinh, Century 21 Dynasty; Karina L. Villanueva, Lotus Property Services, Inc.; Huiling Von, Kingston Realty; Ivy L. Wang, Century 21 Ludecke Inc.; Lei Wang, Supreme Investment Corp.; Hang K. Wong, Long Dragon Realty Group, Inc.; James Wong, Highland Real Estate; Jeff J. Ye, Keller Williams Executive; Chen Yeh, Grandmark Realty Inc.; Xiaochun Zhang, Coldwell Banker Dynasty T.C.; Caroline Zhong, Keller Williams Executive

Also shown: Matilde Gonzalez, 2017 Membership Committee Vice-Chair; Julie Bencosme, 2017 Membership Committee Chair; Sylvia Ramos, 2017 AAR President; Shirley Chen, 2017 Membership Committee Vice-Chair and Laura Thai, AAR Director of JANUARY/FEBRUARY Broker Compliance & Member Outreach 2017 · ARCADIA REALTOR®

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Dos and Don’ts to Win the Listing

By Peter Murray, ABR, PSA | Article submitted to REALTOR® Mag - Sales & Marketing: My First Year I remember when I received my first listing lead. It quickly became clear that the seller was uninformed about the process of selling a home, and I had little training on what to do or say in this situation. So, I did everything wrong.

From what I could gather during our phone call, the seller had moved out of state with her boyfriend, they had dogs (there was a lot of barking on the phone), and they were in some sort of financial distress. The seller couldn’t meet with me in person and didn’t want to provide me access to her property so I could see its condition. Still, I didn’t know any better, and I said I would prepare a listing presentation.

I used a broad set of search criteria to research comparable homes, and once I gathered them, I emailed the seller a fancy market analysis document with colorful graphics, including my portrait and company logo. Then I called the seller to discuss what I had found.

The conversation was all over the place, and I had no idea how to steer it. I went on tangents about the real estate market where she lived—not where she was selling—air conditioners, and any other random topic where I thought my knowledge 12

might impress her. I then thanked the prospective seller for her time and hung up, completely forgetting to ask for the listing and inquire about next steps. On top of that, I never pushed for the opportunity to walk through the property or meet the seller in person to shake her hand—two of the most important steps. I never heard from her again, and I never followed up to see if her home was eventually listed with another agent. I’ve learned a few lessons since then about how to land a listing.

Preparation What I did wrong: The search terms I used to scour the MLS for comparable properties was too broad, and I consistently overthought every step of the process. I often never met or made plans to meet a seller and have a real, intimate conversation about their needs before compiling a CMA and emailing it to them. I didn’t give them a chance to get to know their would-be agent—and vice versa—before trying to sell them on my services.

How I fixed it: When searching comps, I stick to the subdivision in which the prospect is selling, if possible, to draw the most relevant results; search only sold properties; compare like models to like models;

ARCADIA REALTOR® · MARCH/APRIL 2017

and keep the conversation with the seller focused on the task at hand: setting the list price. I present my CMA in person, sitting at the seller’s kitchen table and presenting and explaining each comp one by one. I highlight the sold price, the closing date, the number of days on market, and the seller concessions, if any, with yellow highlighter. I also produce an automated 60-page Seller’s Report using the REALTORS Property Resource®.

Communication What I did wrong: I talked way too much about myself and boasted about my knowledge. Don’t get me wrong; prospective sellers wanted to know I knew what I was talking about. But didn’t spend enough time listening to what the sellers needed and expected from me, and I didn’t pay attention to the nonverbal cues they were giving me.

How I fixed it: After presenting comps and giving the seller an opportunity to ask questions, I ask one simple thing: “After looking at the comps, what do you think your property is worth?” Then I remain quiet until the seller provides me with their thoughts. If they don’t say anything, I sit in silence until they speak. This gives me a chance

to examine their body language, which will hint at whether they will be realistic about their asking price.

If they start to avoid eye contact, looking around the room, and can’t focus on answering my question, it’s a good sign they aren’t ready to handle some harsh realities. I’ve worked with many unrealistic sellers, and I’ve found they take up a lot of time and frequently don’t make it to closing.

Setting the List Price What I did wrong: I didn’t try to temper unrealistic expectations with education. If a seller asked for a list price well above what the market would support, I would end the conversation, advise that the seller rethink their game plan, and tell them to call me at a later time. I didn’t want to offend the seller, but I also wanted to avoid wasting both mine and the seller’s time.

How I fixed it: Once the seller tells me what they think the list price should be, I ask them, “Why?” This is another opportunity to watch their body language as they reply.

If their price is too high, we take another look at the comps and repeat the process. Most sellers catch on quickly to market trends and price their property within a reasonable range. But I’ve learned at this point not to give up on the conversation or steer it in a different direction if I think the seller is off track. It’s important not to lose the momentum of the conversation or else the seller’s thought process gets lost.

Asking for the Business What I did wrong: I would not directly ask for the listing. Instead, I would talk around it and set follow-

up appointments in hopes that the seller would get around to hiring me.

How I fixed it: Once we’ve gotten through the difficult conversations and set a list price that is in line with market conditions, I know I’ve gained the seller’s trust. Now I can ask for the business. I simply ask, “When will you be ready to list your property with me?” It’s not a demanding question, but it pushes the process forward.

All in all, the lessons I’ve learned from my mistakes have been extremely valuable for future conversations with sellers. At the end of the day, it’s about establishing mutual trust. We both must have a level of respect for one another in order for the client to choose me and for me to choose the client.

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MARCH/APRIL 2017 · ARCADIA REALTOR®

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REALTOR® Leader Has Been Dealing With a Nightmare Email Scam for a Year

By Graham Wood, Senior Editor, REALTOR® Magazine Wire fraud schemes have been a hot topic in the real estate industry lately.

But one real estate pro says she’s been caught up in a different kind of nightmarish scam—one that victims can do virtually nothing to prevent.

Sue Dietz, CRS, a sales associate with RE/MAX Advantage Realty in Dubuque, Iowa, who also served as president of the East Central Iowa Association of REALTORS® in 2016, says scammers have used her identity to create fake email addresses in her name and then sent fraudulent emails offering referrals to other real estate agents. The emails also contained fake contact information for Dietz. Recipients who responded to the email were sent a Google Drive link that they were told contained listings the referred client wanted to see. However, the link, once opened, installs computer viruses that allow scammers to scrape passwords and other personal information.

The initial fraudulent email typically reads: “Hi, My name is Sue Dietz a realtor with RE/MAX ADVANTAGE REALTY in Dubuque IA, I have a client who is interested in buying a property in your area of expert, Please let me know if you’re available to help them out and I will send their contact details and the listings they are interested in.

Best Sue” People who receive this email are encouraged to report it as spam or 14

a phishing attempt. The hope is that if enough people take such action, the IP address of the sender will be blocked.

Since February 2016, when the scam apparently started, nearly 4,000 practitioners nationwide—from all 50 states and Canada—who received the emails have contacted Dietz to either confirm the referral or warn her of the scam. “I’ve gotten calls at the office, on my cell phone, texts, and emails at all hours of the day and night,” she says. “There was one day I had over 100 pieces of correspondence just about these emails.”

Last year, Dietz received a threatening email from an anonymous sender accusing her of trying to steal their money, she says. She has tried to get the word out about the scam by asking every agent who contacts her about the emails to alert their local associations. She has also included a warning in her personal and business voicemail messages and on her website bio.

Dietz also recently received a fraudulent email in the name of another real estate agent, so she’s not the only one whose identity is being used in this way.

“Unfortunately, it is nearly impossible on the front end to prevent a fraudster from using your name in a scam,” says Jessica Edgerton, associate counsel for the National Association of REALTORS®. “If you are the victim of any kind of identity theft, the best course of action is

ARCADIA REALTOR® · MARCH/APRIL 2017

to immediately contact the Federal Trade Commission, the FBI, and your local authorities.” She cautions that recipients of suspicious emails appearing to come from another real estate professional should search that practitioner’s name on Google to compare their business email address and contact information to that of the sender.

“I think most people respond to the emails and say, ‘Yeah, I’ll take your referral,’” Dietz says. “All they need to do is Google me—my website is the number one result when you search my name—and they’d see I wasn’t the one who sent the email.”

If you want to keep your email more secure, Edgerton offers the following tips: - Check your sent mail, junk mail, and email account settings regularly for anomalies. Hackers often break into an email account and modify the “email forwarding” settings to forward emails to their own account.

- Regularly purge your email of unneeded or outdated information.

Save any important emails securely.

- Avoid email as a method for sending sensitive or confidential information.

Instead, consider using a secure document sharing or transaction management platform.

- Use strong passwords that incorporate a combination of letters, numbers, and symbols.

- Use two-factor (or multi-factor) authentication.

- Avoid using unsecured or public Wi-Fi.

4 Methods to Earn & Keep Investor Clients

By Brandon Doyle, ABR, e-PRO, Blog Contributor, realtor.org Tapping into the investor real estate business is a common goal among agents and brokers. While buying and selling residential property on behalf of individuals and families in search of their next home is typically an agent’s bread-and-butter, working with investor clients can open up a whole new stream of revenue and referrals. With that in mind, consider a few of the tips below as you seek out this desirable breed of real estate client and earn their trust for the long haul.

1. Prioritize Speedy Responses Real estate investors do business on multiple properties per year, which could mean a steady stream of business for you and your office, too. First, you must prove to your client that you work with efficiency and stay accessible throughout all phases of a transaction. To investors, time is money, so forging a speedy and proficient reputation for yourself will go a long way to convince investor clients to partner with you, an agent who works hard and fast to deliver results.

2. Learn the Vocabulary Because investors have different goals in mind when buying or selling property, it’s important to learn the different vocabulary involved when discussing investment transactions with a potential client. The first way to net an investment client is to signal to them that you understand the lingo, stakes, and special circumstances involved. Do your homework on terms and phrases like “capital gains,” and “hurdle rate,” to name a few. In order to be considered a viable real estate representative for an investment client, you must demonstrate a deeper, more specific understanding of the market you’re seeking to tap.

3. Be Organized Organization goes hand in hand with working quickly and efficiently. Investors need to be able to make snap decisions in order to scoop up a great deal before the competition does. In those instances, an investor client will need to be able to quickly touch base with you on the property, other agents involved, the neighborhood, and the numbers, among other factors. By staying organized on a daily basis, you’ll be able to respond with key information, without additional delay—making you an invaluable asset to your investor client.

4. Go Where the Investors Are While it’s worthwhile to screen potential investment clients to be sure they’re experienced and ready to take on the rigorous challenge ahead, first you must tap into the network of investors out there. Getting involved in community and professional organizations like the local Chamber of Commerce, REALTOR® association, or local and state entrepreneurial organizations, can lead you to a wealth of investors seeking the help of an established agent with knowledge of property investments. Investors are always on the lookout for a fellow professional who can deliver results and make their business go smoothly. That someone could be you, as long you as position yourself in the right company.

With their multiple yearly transactions, investment clients can change the face of your business. Keep in mind some of the tactics above to hone your skills, meet potential investor clients, and tap into a game-changing market of clientele.

MARCH/APRIL 2017 · ARCADIA REALTOR®

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BINGO was another SOLD OUT event and everyone had a great time. Delicious STONEFIRE Grill was served for dinner, finished with ice cream sundaes.

Of course events like this couldn’t happen without a special group of volunteers whom selflessly gave their time and talents to make this happen. That evening everyone went home a winner. Events 4 Charity greatly appreciates everyone who attended and supported our event. We look forward to our next event: Beer & Wine Tasting at the AAR on Tuesday, June 14th, 2017.

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ARCADIA REALTOR® · MARCH/APRIL 2017

B

Lets

Play BINGO GAME SPONSOR Thank you to:

Vincent Dudziak - OPES Mortgage Advisors Terri FabbWri - Design Escrow, Inc. Stephanie LaPorte - Old Republic Home Protection Maria Howard - Old Republic Home Protection Janet Creswell - Inter Valley Escrow Arcadia Association of REALTORS®

TABLE SPONSORS

Bobbi Martinez - Sam Wright Insurance Penny Arroyo & Kerry Zessau - From A to Z Michelle Alvarado - CitiBank Lysette Burtz - Premium Escrow Shirley Batman - Chase

BEVERAGE

Special thank you

Chris Shevlin Mercedes Collaso - Dilbeck Real Estate Special thank you to those who donated to Bingo

Andy Bencosme - Century 21 Village Louis Wang - Highland Real Estate Tom Adams - Century 21 Adams and Barnes John Barker - Berkshire Hathaway Home Services Terry Earll - Ravid Enterprises, Inc. Lysette Burtz - Premium Escrow, Inc. Eddie Hsu - Coldwell Banker New Century Ken Parsons - Keller Williams Realty Robert Ho - Long Dragon Friends of Bingo

THANK YOU FOR YOUR DONATIONS! Michelle Alvarado - Citibank Nothing Bundt Cake Kristin Miller Duane Morrison - Morrison Property Inspections Lemon Drop Cookie Shop - Monrovia Kelvin Wong - Resource Real Estate Services Cheer Alano Club Kim Welborn - Fidelity Home Warranty ColdStone Creamery Villa Catrina Mexican Restaurant & Cantina Brigitta Radielovic - Dilbeck Real Estate Cafe LuMar Restaurant Donation In Honor of Jeanne Keating Diane Medina - Disclosure Save NHD Alma Smith Elia Fuentes - Lotus Escrow May Rahmanian - Art Del Rey Realty, Inc. Joe Pacilio - Century 21 Masters Maureen McCune - The Mortgage Group City Café Mercedes Collaso - Dilbeck Real Estate April Born Hair Designs Alex Velasco - Velasco Interpreting Services Dave Scarminach - Dilbeck Real Estate Aryn Adams - Salon Vanity Coffee Bean & Tea Leaf - Duarte Stephanie LaPorte - Old Republic Home Protection Maria Howard - Old Republic Home Protection Sylvia Ramos - Century 21 Village Realty Margaret Garemore - Podley Properties Kal Antoun - Caliber Home Loan Pam McSweeny - American Home Shield Donna Baker - Teles Properties Lifeline for Pets Margaret Garemore - Resolve It! Mediation Deanna Scortino - Cutco Closing Gifts Ryan Hoffman - Wholesale Capital Corporation Art Luna - Pacific American Properties Tommy Camacho - The Montebello Country Club Mike Gonzalez - Dilbeck Real Estate Nikki Felix - Wells Fargo Home Mortgage Michael & Robin Allen Design Escrow Inc. Scott Shimamoto - Franklin Loan Center MARCH/APRIL 2017 · ARCADIA REALTOR®

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

AMERICAN CANCER SOCIETY

RELAY FOR LIFE

When we

walk together, we are bigger than cancer.

JOIN US

Saturday & Sunday, April 22 - 23 5:00 pm - 5:00 pm

Santa Anita Park (Race Track/In Field) 285 West Huntington Drive Arcadia, CA 91007 To Join the Arcadia Association of REALTORS® Team or Make a Donation visit www.TheAAR.com & click on the “Relay for Life” Banner

For more Information please call the AAR: 626.446.2115

Celebrate. Remember. Fight Back. ® www.TheAAR.com ~ 601 S. First Ave. Arcadia, CA 91006 ~ 626-446-2115 ~ Fx. 626-446-4072

Dedicated to Providing High Quality Legal Services

• Estate Planning • Trust Administration • Probate • Business Law • Commercial Transactions • Corporation, LLC & Partnership Formations • Business Contracts

Call today for a free consultation

Romy S. Rahmanian, Attorney

(626) 869-8787 33 East Huntington Drive • Arcadia, CA 91006 romy@rahmanianlaw.com • www.RahmanianLaw.com

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