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REALTOR®

OFFICIAL PUBLICATION OF THE ARCADIA ASSOCIATION OF REALTORS®

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

Annual Commercial & Investment Issue!

Commercial Day at the Races See page 16

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ARCADIA REALTOR® · JANUARY/FEBRUARY 2015SEPTEMBER/OCTOBER 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 Cecil Griffin James Maceo Joe Pacilio Yvonne Rosas-Petty 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

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You Should Be In Commercial(s)! Welcome to the annual Commercial/Investment Issue of the Arcadia REALTOR® Magazine! Have you visited Downtown Los Angeles lately? It’s absolutely amazing to see the flurry of high-rise construction and development going on. And it’s not just limited to DTLA. Commercial/Investment development is rampant all around the world in metropolitan cities and even here in the suburbs of Los Angeles. Always on the forefront of Local Association emerging trends, the Arcadia Association of REALTORS® was one of the first local REALTOR® associations in the entire country to start a Commercial/Investment Committee many years ago. At first we were looked upon as renegades, after all, we’re a REALTOR® association and most REALTORS® don’t engage in commercial real estate… or do we?? As a result of our forward-thinking leaders starting a Commercial Real Estate Committee including the visionary George Monte, AAR’s 2008 Past-President, we’ve been recognized both statewide and nationally for our Commercial achievements and accomplishments. As an example, the AAR has won the prestigious National Association of REALTORS® ACE Award (Accredited Commercial Excellence) 2 times in the past 4 years. Less than 1% of local associations around the country receive this award so we’re very proud of these achievements. In our ongoing efforts to help our members increase their overall production, the AAR hosted our annual Commercial Real Estate Education Day on Friday, October 6 at the world-famous Santa Anita Park. A packed house learned from a top-producer panel and our guest speakers included Stefan Swanepoel from T3Sixty talking about emerging trends in commercial real estate as well as Dr. Lawrence Yun, Chief Economist and Senior VP of the National Association of REALTORS®. By all accounts it was the best Commercial Day in AAR history. See page 16 of this publication for photos and a recap of the day. The AAR has had quite a few past and present members involved in Commercial Real Estate whom have been instrumental in getting NAR and CAR to recognize that commercial real estate is a vital area of business for REALTORS® and not just commercial-only practitioners. These members include the aforementioned George Monte, and other Past Presidents Paulina Lee (2011), Richard Stone (2004), and Mike Vachani (2013). On a local level Nick Zigic is the current Commercial Committee Chair and Tim Johnson should absolutely be mentioned for his numerous past contributions. The Commercial Committee also offers a monthly Commercial Real Estate Education and Networking session on the first Thursday of every month. Come to learn about Commercial Real Estate, network with your peers, and enjoy a free lunch. On behalf of our 2017 Commercial/Investment Committee Chair, Nick Zigic, and the entire C/I Committee we look forward to seeing you at an upcoming Commercial event very soon.

ARCADIA REALTOR® · SEPTEMBER/OCTOBER 2017

Andrew Cooper Chief Executive Officer


SEPTEMBER/OCTOBER 2017 | VOLUME 21 | NUMBER 5

Contents 16

12

On the Cover

Regular Features 2

4

5

Additional Content 7

Andrew Cooper, Chief Executive Officer

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

Market Matters

11 Committee Highlight - Local Governmental Relations Conduit communications that allows our members to be informed and to respond to local issues.

Attorney Comments

12 7 Dangerous Practices You Think Are Safe These seemingly innocent ways of operating can actually make you more vulnerable to thieves and other criminals who look at you as a target.

Market Statistics for the San Gabriel Valley

Dave Freeman, AAR Legal Counsel

Through the Lens

8

Affiliate Corner

16 Commercial Day at the Races A recap of the Annual Commercial Day held on Friday, October 6 at Santa Anita Park.

Cooper’s Comments

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14 Commercial Real Estate Market Remains Strong Led by the industrial and multifamily sectors, REALTORS® continue to report that leasing fundamentals for the four major commercial sectors are strong.

A Look at What’s Happening Around the AAR

“Do My Clients Need Earthquake Insurance?” Mark Wu, Allstate Insurance

15 REALTOR® Safety Matters for Commercial Profession While the most publicized physical attacks on real estate agents have involved residential agents, commercial agents are equally at risk.

SEPTEMBER/OCTOBER 2017 · ARCADIA REALTOR®

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Market Matters Market Statistics for the San Gabriel Valley - July 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

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

Price Median Condo ($1,000)

24 20 14 5 11 15 20 22 15 14 19 16 16

$1,069 $2,350 $478 $450 $508 $530 $676 $777 $810 $650 $2,180 $1,099 $718

-13.8% 6.8% -13.3% 12.5% 19.5% 1.9% -1.4% 16% -1.2% 27.1% 14.7% 22.8% -7.9%

Sales Count Condos

2 6 3 0 9 3 5 17 1 4 0 1 7

SFR Only

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

$665 $528 $425 n/a $465 $445 $540 $530 $888 $418 n/a $965 $700

0.7% 14.8% 12.4% n/a 22.7% 1.7% 6.9% 26.2% n/a -1.8% n/a 19% 66.7%

$547 $590 $416 $403 $390 $352 $395 $462 $535 $513 $917 $566 $523

Market Statistics for the San Gabriel Valley - August 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 August Homes ($1,000) 2016

33 21 17 5 21 24 36 24 25 8 6 9 21

$1,250 $1,288 $515 $545 $455 $528 $674 $655 $865 $680 $1,894 $1,000 $788

ARCADIA REALTORŽ ¡ SEPTEMBER/OCTOBER JANUARY/FEBRUARY 2016 2017

11.8% -23.8% 17.6% 17.2% 11% 2.5% 12.7% 12.7% 13.1% 16.2% -0.3% -12.5% 8.8%

Sales Count Condos

10 15 6 1 12 4 7 8 4 1 0 1 3

Price Median Condo ($1,000)

$750 $627 $385 $360 $416 $433 $570 $459 $750 $548 n/a $785 $595

SFR Only

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

0% 12.4% 17.4% -23.1% 4.5% 6.1% 9.6% -2.1% 73.4% -3.9% n/a 35.3% 25.3%

$548 $556 $397 $332 $379 $402 $402 $507 $543 $378 $833 $548 $482

Source: CoreLogic.com


Attorney Comments

By Dave Freeman, Association Counsel

Historical Designation Many older buildings (Residential and Commercial) are eligible for historical designation. Benefits may include tax benefits and ability to grandfather some buildings or parts of buildings that would not be possible to construct today. Also, architectural examples of creative designers may be preserved from later destruction at the whim of the new owners. However, care must be taken when the opportunity arises to so designate your, or your client’s property thusly. At a future date, you or your client may wish to remove an old, dilapidated building or part of it to improve the looks or livability. Or a buyer, at a great price, may depend his purchase on the ability to remove the building(s), in order to build his new development. Always check with the city AND THE HISTORICAL SOCIETY (which may be totally separate), when buying an old significant property that could possibly be designated (already, or possibly in the future), or prior to allowing the city to designate your property. An example of problems that can occur: A property was purchased to develop by razing the existing house and building three expensive homes. The city rules allowed it. Partway through the construction, a neighbor pointed out the ugly fence/wall, which was to be removed was a Greene and Greene experiment, worthy of historical preservation. The fence/wall had to be preserved, leading to a very expensive lawsuit against the seller, and the REALTORS®.

Partition and Sale Suit When two or more people own a property, and one wants to sell, and the other(s) don’t, problems arise. Bottom line: save the very large attorney fees of a court battle, called Partition and Sale, and work the matter out. Hire a good mediator, with experience and wisdom regarding real estate. If the property consists of more than one lot, there is a possibility the court would order it to be split between the owners, and an accounting of the dollar values be done to even things out. But the usual result, if you go to court is - the judge WILL order the property to be sold, and the proceeds split appropriately. Good, experienced, ethical real estate attorneys will strongly recommend avoiding court for this reason. Therefore, working the matter out, with the help of a good mediator is the best solution. Attorneys can be used for advice and to be sure any agreement which is reached is properly drawn up.

Putting Property in Another’s Name for Refinancing Many people are in a position to take advantage of low interest rates, but don’t have a high enough credit rating. Several major mistakes are being made lately.

a. Putting the property in someone else’s name, who has better credit, which can be disastrous. Property taxes may be re-assessed at the time of the transfer! If the other person dies, to whom will the property pass? Will there be inheritance taxes due? The transferor may have a major battle with the family of the “owner.” b. The other person may have financial problems and decide not to return the property. c. The other person may have large judgment liens or divorce/support orders against them which will attach to the property, even upon return to the original owner.

If a client or acquaintance is determined to make this potential mistake, in spite of your warning, suggest they consult with a good real estate attorney. Lastly, if they decide to proceed with the action, one idea is for them to have a document, signed at the same time as the transfer document, which returns the property to the proper owner, to be recorded after the loan transaction or have a written, signed document explaining the true ownership. But any of the above may get into the swamp of loan fraud. This is a big

dollar danger area. Stay out, and refer to counsel.

SEPTEMBER/OCTOBER 2017 · ARCADIA REALTOR®

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

ip Academy AAR Leadersh lass Graduating C

Reverse Mortgage with Ryan Kleis and Robert Ross

Nick Zigic, Allen Lungo, Kelvin Wong and Val Wong

un, Terri Fabbri, Annie Fan, Kal Anto Gao encer and Orlagh Mark Wu, Frank Sp

lunteers at YPN Committee Vo LA Family Housing

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Global Real Estate Costa

Navigating a Transaction from Start to Close

o Tournament Sponsors Diane Balsam g din Len and Nikki Felix with Prime

Events 4 Charity Annual Scott Burtz Memorial Charity Golf Classic

ARCADIA REALTOR® · SEPTEMBER/OCTOBER 2017

Rica Mixer


Welcome, New Members! SEPTEMBER 2017 Boulommavong, Alina, Moon Realty; Chan, Joe T, Coldwell Banker New Century; Cheng, Erik T, IRN Realty; Chenh, Kevin, Long Dragon Realty Group, Inc.; Chi, Mason C, Highland Real Estate; Deng, Shuai, Coldwell Banker George Realty; Dickey, Chris F, Coldwell Banker Arcadia; Fan, Peidong, Century 21 Ludecke Inc.; Gao, Jeff Fei F, Re/Max Premier Prop Arcadia; Grimes, Kim A, Berkshire Hathaway HomeService; Hischier, Mark, HomeSmart Realty; Hong, Edward, Keller Williams Realty; Hsia, Nancy, Re/Max Premier Prop Arcadia; Hu, Bo Blair, Highland Real Estate; Hu, Philip C, Transglobal Realty; Hwang, Phillip, Treeline Realty & Investment;

Ihde, Ronald, Moon Realty; Isler, Helen, Coldwell Banker Arcadia; Jaffe, Randall, U-Click Realty Inc.; Kirchwehm, Bryan J, Bryan Kirchehm, Broker; Kong, Siqi Annie, Highland Real Estate; Kuo, Cheng Cliff L, Coldwell Banker Dynasty; Leigh, Jonathan, IRN Realty; Li, Shengxiu, Coldwell Banker George Realty; Liao, Pearl P, Louie Properties, Inc.; Lin, Jeff, ACT Real Estate; Lin, Judy L, Keller Williams Realty; Liu, Sitong Lara, Coldwell Banker Dynasty T.C.; Marquina-Mota, Gladys E, VasTree Real Estate; Martin, Joyce C, HomeSmart Realty; Mestre Richter, Monique D, Dilbeck Real Estate; Odrich, Melissa A, HomeSmart Realty;

Prudholme, Joy, Re/Max Elegance; Pu, Jason J, Man Investment Group; Rambeau, Brian, VasTree Real Estate; Situ, Xiaomei, Highland Real Estate; Sun, Tong, Treeline Realty & Investment; Tejedor, James M, VasTree Real Estate; Tieu, Esther, Coldwell Banker Dynasty T.C.; Valenzuela, Erik, Century 21 Village Realty; Wong, Ken C, Long Dragon Realty Group, Inc.; Wong, Vivian M, Coldwell Banker George Realty; Xu, Danni, Coldwell Banker Arcadia; Yang, Peter J, Treeline Realty & Investment; Yang, Yuebin Sean, Treeline Realty & Investment; Zhao, Shijun, Re/Max Premier Prop Arcadia

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

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SEPTEMBER/OCTOBER 2017 · ARCADIA REALTOR® 7/31/17 5:10 PM

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AFFILIATE Corner “Do My Clients Need Earthquake Insurance?” By Mark Wu, Allstate Insurance Earthquake Insurance seems to be on everyone’s minds lately as a result of the two major Earthquakes that struck Mexico City this September as well as the catastrophes that have hit the Gulf Coast in Texas and Florida. We live in a very high earthquake risk area in Southern California. It is important that your clients are covered for the worst case scenario. I am often asked if Homeowners should purchase Earthquake Insurance by both REALTORS® and clients. Just remember that a typical Home & Condo Insurance policy excludes coverage in event of an earthquake loss. The decision to carry or not carry earthquake insurance involves consideration of many factors. As a homeowner, are your clients wealthy enough to rebuild? If not, what is the possibility of obtaining another loan on a devastated home when there is already a primary lender on the home? Is there even enough equity in the home to qualify for a second loan that would provide enough funds to rebuild? Although not the ideal and right thing to do, homeowners with damaged homes would have no other choice but to walk away from their homes if they do not carry Earthquake Insurance. A Homeowner who lets their bank foreclose on an earthquake-devastated home not only loses all of their equity, but also puts their credit rating at risk. This also places the homeowner in a difficult, if not impossible, position from being able to purchase another home for years. Some rationalize that their home has survived many earthquakes just fine and therefore don’t anticipate an earthquake destroying their home. However, experts will tell you that each earthquake is different with motion traveling through the ground in unique ways. If their home is locate near the epicenter, most likely, damage will occur. Others state that their homes are bolted to its foundation, making purchasing earthquake insurance not necessary. Experts again state that no amount of retrofitting can protect against a truly devastating shaker. 8

Homeowners also reason that they will get FEMA money to rebuild. What people don’t understand is that FEMA does not have the resources to fund complete rebuilding of homes in a devastated area. Often FEMA will loan small amounts only for minor damage leaving those affected to find funding for reconstruction elsewhere. Earthquake insurance provides protection from the shaking and cracking that can destroy buildings and personal possessions. Coverage for other kinds of damage that may result from earthquakes, such as fire and water damage due to burst gas and water pipes, is provided by standard home insurance. The insurance company that insures your home for fire is required by California law to offer you earthquake insurance. A majority of the larger companies in California do so through the California Earthquake Authority (CEA) policy which is a public instrumentality of the State. A minority have the ability to offer earthquake insurance through private funded policies. CEA is financially sound, with an A- (Excellent) rating from A.M. Best Co., the world’s leading rating agency of insurance companies. CEA has a claim-paying capacity of more than $15 billion. With a CEA homeowner’s earthquake insurance policy, you can choose the earthquake coverage options you want like Dwelling, Building Code Upgrades, Personal Property, Emergency Repairs, Loss of Use, Breakables and Masonry Veneer. Deductible options are 5% - 25% of your Dwelling Amount. As a Real Estate Professional, my suggestion to you is always recommend that your clients purchase Earthquake Insurance since we live in such a high earthquake area and then let the buyer decide if Earthquake Insurance is right for them. For more information and questions regarding Earthquake Insurance contact Mark at: 626-281-6854 or Markewu@allstate.com.

ARCADIA REALTOR® · SEPTEMBER/OCTOBER 2017


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ARCADIA REALTOR® · JANUARY/FEBRUARY 2015


Understanding the Life of Escrow From Escrow opening to Escrow closing, no matter who you are representing (buyer, seller, lender, title company, ect.), all parties involved now have gathered as a team, working for a same goal - to close the deal on time. To get a better understanding of the escrow procedure could mean a smoother transaction delivered. Escrow typically starts right after the RPA is executed. In order to open escrow, an escrow company will need a copy of the RPA, all Counter Offers and the Buyer’s EMD Deposit. The title will be ordered shortly after escrow opens. Within one to two days, escrow will prepare and deliver escrow opening packages for the buyer, seller, listing office, and selling offices to obtain information and signatures. Meanwhile, escrow will reach out to the buyer’s lender, if applicable, to initial the loan process. This is an exciting and very important phase. A good start means you are half way to success. The second phase is escrow processing. Escrow will collect all the documents which were sent out previously and monitor all obligations and terms on the RPA to ensure they are being fulfilled by all parties. It is very important for all parties to get informed during this time to monitor and make sure everything goes smoothly and is being done in a timely manner. Escrow Closing is always the most stressful part since we are very close to success. If the buyer is obtaining a new loan, escrow will arrange the loan doc signing for the lender and request funding from the lender. If it is a cash transaction, escrow will provide an estimate closing statement and wire instructions for the buyer’s closing funds. Finally everything is ready. Escrow will set up recording with the title company to record documents. Recording varies from county to county. It will occur next business day for L.A. county properties. Once escrow has the confirmation of recording, escrow will disburse and close the transaction. Closing packages will be sent out to all parties and congratulations will be made. No matter if it is a 15 day escrow or 60 day escrow, good communication makes a difference and plays a key role to success. To stay connected, good communication is the key to success for team work.

Foreign Sellers in Escrow Process Foreign sellers are becoming more common in the real estate market today. Here are a few tips to save you from a hassle when you have foreign sellers in your transactions. 1. To notarize documents in local U.S Embassy Electronic signatures are acceptable for most escrow documents. However, wet signatures are still required for recording documents with signature notarization. It is convenient for your foreign seller to complete notarization at any valid notary public service in the U.S. If the foreign sellers are not able to do so, they have to complete the notarization process with their local U.S. Embassy office in their country. This could be a very annoying part, since most U.S. Embassy offices are only located in certain cities in foreign countries. To schedule an appointment could take weeks. If you are helping foreign sellers, you might want to consider ahead, to avoid any hassles or even delays in the transaction. 2. To prepare for possible tax withholding Foreign sellers might be subject to tax withholding in a real estate transaction. The withholding tax amount could be high, so please help your sellers prepare in advance to connect them with accounting or tax professionals. It will help your transaction go as smoothly as possible. 3. To be careful of Cyber Fraud Cyber Fraud is dangerous and the only way to avoid it is to be very cautious especially working with foreign sellers. Since the communications might be limited, it is easier for Cyber attackers to target. We suggest connecting via FaceTime or WeChat. More interactions with clients could help avoid most of the dangers. Escrows are also improving to protect from any possible ways of Cyber Fraud. 4. To stay in communication with Escrow professionals Communication is always the key in our industry. If your sellers are out of the country, communication could be difficult with time differences, language barriers, and cultural differences. To find out a best solution with your seller and escrow regarding communication through the transaction, talk with your escrow to ensure the deal closes smoothly. 10

ARCADIA REALTOR® · JANUARY/FEBRUARY 2015

Submitted by Ming Ci, Escrow Officer, Central Escrow, Inc.


COMMITTEE HIGHLIGHT Local Governmental Relations Committee By Cecil Griffin, Committee Chairman The Local Governmental Relations Committee is a select group of AAR REALTORS® and Broker Members who are charged with the responsibility of being an information source and communication conduit that allows our members to be informed and to respond to local issues. We actively participate in the local government arena on real estate related issues. We are an advocate of private property rights, policies promoting housing opportunities and the real estate industry. We strive to meet our objectives by interviewing and sometimes supporting local city council candidate’s, monitoring and either supporting or opposing state legislation that relates to private property rights, home ownership and the real estate industry. We sponsor local activities through our REALTOR® Champion Roundtable (RCR), where members are given the opportunity to connect with State Senators, Assembly Members, City Mayors, City Managers, the County Assessor, and other Business Professionals. Our next RCR event will be a legislative reception on Friday, December 1 at the DoubleTree in Monrovia, which is open to all AAR members who have made a voluntary contribution of $50 or more to the REALTOR® Action Fund (RAF). It is a great opportunity to meet and network with your local elected officials. Those who are not RCR members can make a RAF contribution of $20 to attend this one event. If you care about your industry, get involved today!

I M AG I N E YO U R C A R E E R I F. . .

Without REALTOR® contributions, there would be no REALTOR® Action Fund, without the REALTOR®

ö

Every time you got a new listing you had to tell the seller that they need to remove all wood burning fireplaces before the government will allow them to sell the house … With the RAF, REALTORS® beat this proposal in several local counties, but we are constantly facing new point-of-sale proposals just like this.

ö

Congress got rid of the Mortgage Interest Tax Deduction (MID), taking away the primary tax benefit of homeownership … Tax reform is high on the agenda for the new Congress. We need RAF funds to save the MID!

ö

The State of California required you to pay a service tax on every real estate transaction on top of your personal income tax … It took RAF funds to beat this before and will take RAF funds to beat this proposal when it comes back.

Action Fund, proposals like these and many more would become law – hurting homeowners and your bottom line!

(916) 492-5211 raf.car.org SEPTEMBER/OCTOBER 2017 · ARCADIA REALTOR®

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DANGEROUS Practices You Think Are Safe

Every time I talk about REALTOR® Safety, I remind real estate professionals that the Department of Labor considers real estate sales and leasing a “hazardous” occupation. Although there are many common and obvious dangers in real estate, there are also scenarios you may not consider risky that are in reality. Here are seven such situations to keep in mind. As a real estate safety instructor for more than 20 years, you can also visit my website to request a checklist to protect yourself from many of these dangers.

1. Leaving your belongings unattended at an open house-or even in the office. You’re going to be distracted while helping potential buyers at an open house, which provides the perfect window of opportunity for thieves. While you may think walking away from your laptop, tablet, purse, or briefcase for even just a moment is innocent enough, these items can too easily disappear—particularly when you have heavy foot traffic. Carry electronics that are easy to hold onto as you show open house visitors around, and keep your bags out of sight—in a trunk or in a drawer. Your own real estate office, where agents often leave valuable electronics at their desks, can also be an attraction for criminals and crimes of opportunity. You may trust your fellow agents—but what about all the other people who come into your office off the street? In July, brokerages in Arkansas and 12

North Carolina were broken into and robbed. Also in Arkansas, a group of about 10 thieves unlocked windows and found other property vulnerabilities at an open house so they could later re-enter. “I actually always carry my purse around the office,” says Barbara Wonderly, a sales associate with Keller Williams Preferred Realty in Raleigh, N.C. “I never know who is going to be in the office—clients, service providers, vendors, or contractors. I would rather be on the safe side.”

2. Relying on your cell phone in case of emergency while showing rural properties. Cell service is often shoddy or nonexistent in sparsely populated, secluded areas. You can’t automatically expect to be able to call for help or use safety apps on your smartphone when you’re out in these areas. Remember that your phone’s GPS won’t work well, so bring printed maps with you when you’re in a rural setting. Also, consider bringing electronic cell boosters to increase signal strength, and have a check-in buddy who knows the address where you are and can arrange to send law enforcement if you fail to check in at a predetermined time.

3. Only working the “good” part of town. If you sell primarily in upscale neighborhoods with high-income residents, you can be lulled into a false sense of security. You may think

ARCADIA REALTOR® · SEPTEMBER/OCTOBER 2017

your chances of dealing with crime in a tony part of town are slim to none. That’s actually entirely untrue. Criminals often target upscale areas because of the potential payday in high-value items. While it may be true that some neighborhoods are safer than others, you should never let your guard down. Two highprofile murder cases in the last few years involved real estate agents in high-end communities. In 2011, Ashley Okland, an agent in Des Moines, Iowa, was killed in a model townhome. And in 2014, Arkansas agent Beverly Carter was kidnapped and killed; her assailants later said they targeted her because she was a “rich broker” known for working in pricier markets. (Read about how Carter’s son, Carl Carter Jr., has made REALTOR® Safety his mission since his mother’s death.)

4. Using shared technology carelessly. Wonderly warns that sharing office computers, for example, can put your clients’ information at risk if you forget to log out. “I use the office computers, and often, the agent who previously used it forgets to log out,” she explains. “All of their personal and business information is there for anyone to see. So I always log them out [if they haven’t done it themselves].” Think about the incidents mentioned above involving break-ins at real estate offices. If you haven’t logged out of your computers and other devices you may leave at your desk, those thieves will have access to your clients’ highly sensitive information. (Continued on page 13)


5. Thinking daytime showings are safer than nighttime showings.

to attack because they know you’re probably less guarded at that time.

Lane Gamble, an agent in Charlotte, N.C., was robbed at gunpoint in broad daylight in March as he sat outside of a listing. In fact, most crimes against real estate professionals occur during daytime hours, including the murders mentioned earlier. Many practitioners believe nighttime showings require more safety precautions, such as alerting a friend or loved one of their whereabouts, carrying a safety tool or weapon, and planning an escape route in case of emergency. The truth is these measures should be taken at all times, day or night. The daytime can be more opportune for criminals

6. Dismissing suspicious incidents that don’t result in an attack. In August, two REALTOR® associations in Massachusetts issued safety alerts to their members after several agents reported having strange run-ins with the same prospective buyer. Even if someone behaving suspiciously doesn’t harm you, it’s possible that they are testing their method before launching an attack. Reporting suspicious incidents can help organizations take action to prevent further—and possibly more dangerous—episodes with other real estate professionals. Don’t ignore uncomfortable situations in the field; report them to

your association leaders.

7. Not having emergency roadside equipment. You spend much of your day in the car, but do you have the tools you need in case your vehicle breaks down? Many agents fail to carry basic items such as jumper cables, a tire air compressor, or a tire jack. Roadside emergency assistance is highly recommended. You’re known as a person who is always on the go in your community, and criminals know it’s easy to take advantage of someone who is in a hurry and in distress. Make sure you have the proper equipment when you’re in a bind out in the field so you don’t find yourself in a vulnerable situation, having to rely on the help of complete strangers.

Article Submitted by Tracey Hawkins, CEO of Safety and Security Source on realtor.org

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CALL AAR FOR DETAILS! 626.446.2115 SEPTEMBER/OCTOBER 2017 · ARCADIA REALTOR®

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Commercial Real Estate Market Remains STRONG By the National Association of REALTORS® and Nick Zigic, AAR Committee Chairman The Arcadia Association of REALTORS® Commercial Committee is one of the leaders in providing quality educational programs to its members. For that, we have, and continue to receive, numerous awards. According to the latest National Association of REALTORS® Quarterly Commercial Real Estate Forecast, commercial real estate price growth in large markets is expected to flatten over the next year, but strong leasing demand and investor appetite in smaller markets should keep the sector on solid ground. Backed by the ongoing stretch of outstanding job creation in recent years, national office vacancy rates are forecast by REALTORS® to retreat 1.1 percent to 11.9 percent over the coming year. The vacancy rate for industrial space is expected to decline 1.1 percent to 7.8 percent, and retail availability is to decrease 0.4 percent to 11.4 percent. Even as new apartment completions bring more supply to many markets, the multifamily sector will still likely see a vacancy rate decline from 6.6 percent to 6.1 percent. According to Lawrence Yun, N.A.R. Chief Economist, the appetite for commercial property is high, but investment activity does appear to be entering the maturation phase of the current cycle. The investor shift away from large markets to smaller ones is creating a divergence in sales activity. In the second quarter, large markets saw a 5 percent annual decline in sales, while REALTORS® reported a sales boost of 4 percent in small markets. Led by the industrial and multifamily sectors, REALTORS® continue to report that leasing fundamentals for the four major commercial sectors are strong. Last quarter, the considerable appetite for industrial space - primarily from ecommerce and trade - resulted in distribution warehouses and logistic centers driving close to 70 percent of new construction leasing. Although 225.4 million square feet of additional space is currently in the pipeline, vacancy rates are still expected to trend downward as supply slowly catches up with demand. In the apartment sector, the pace of new construction is finally slowing in many markets after considerable building in recent years. However, rising household formation and the supply and affordability barriers to homeownership will continue to keep vacancies low and cause rents to maintain their trajectory of outpacing incomes. Approximately 70,000 N.A.R. members specialize in commercial real estate brokerage and related services including property management, counseling and appraisal. In addition, more than 200,000 members are involved in commercial transactions as a secondary business. 14

ARCADIA REALTOR® · SEPTEMBER/OCTOBER


REALTOR® Safety Matters for Commercial Profession By Philip McGinnis, ACoM, ALC, CCIM

While the most publicized physical attacks on real estate agents have involved residential agents, commercial agents are equally at risk. Additionally, it’s important to remember that not all safety and security risks are external. Currently, many markets are faced with a high office and industrial vacancy rate. These properties present huge risks to REALTORS® because they are typically isolated from populated areas, and are often difficult to access. Many of the same safety tips employed by residential agents are relevant for commercial practitioners including care with personal information, verifying customer information, announcing your showings, scouting locations early, and keeping phone in hand. Many office, multifamily and industrial properties have security cameras and security systems, which will not be very helpful if nobody knows you’re there. Finding the criminal after the crime is committed is not as beneficial as thwarting the criminal before or during the crime by having the appropriate maintenance and risk management processes in place. IREM offers a number of forms and checklists (link is external) for both residential and commercial properties for this purpose. Vacant land listings present unique challenges to safety and security because large parcels with woodlands offer obstructions to view of passersby. Vacant land parcels also contain ditches and low spots that present accident hazards. It is not uncommon for farmers to bury tree stumps, pesticides, construction debris, used tractor batteries, and other such materials in their properties, which create obvious safety risks. Prepare in advance by following the advice of REALTORS® Land Institute’s 2015 President Terri Jensen, who published a useful article on how to stay safe in rural environments. New construction sites for multi-family, self-storage, or any other large commercial property present hazards due to the overall size of some projects, and obstructions like fencing

often prevent full views to the backs of the properties. Personal safety basics like wearing appropriate gear (e.g., hard hats, sturdy shoes) and making sure the property has adequate lighting are easy ways to protect yourself. The International Association of Certified Home Inspectors (link is external) and Insurance Institute for Business & Home Safety (link is external) have both published articles with additional safety tips relevant for commercial professionals who work with varying property types. Smartphone apps and other safety products enable agents to send alert signals via phone, text, social networks and email to your emergency contacts along with a GPS location; a list of expert resources is available on the NAR website. Preparing a prospect form, an agent form, and an itinerary form, among others, will allow your co-workers and family members to know where you are, and who you are with. Developing a distress code will likewise allow you to alert others to send help. Not all risks to real estate agents are external. Commercial property brokerage is a high-stress profession, and the threat of heart attack or stroke is ever present; for instance, if an agent goes into cardiac crisis, every moment is crucial. Being able to quickly contact emergency responders is critical to survival. Adding ICE (In Case of Emergency) entries into your smart phone’s contact list enables any prospect or client to be able to dial directly to someone who can send immediate assistance. Dialing 9-1-1 is not always reliable on a cell phone, as some calls are directed to towers outside of the service area where the casualty actually occurs. These tips are simple enough to incorporate into your business right away. The only thing more tragic than a REALTOR® being harmed while doing their job is knowing that the harm may well have been prevented with some simple best practices.

SEPTEMBER/OCTOBER 2017 · ARCADIA REALTOR®

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COMMERCIAL DAY AT THE RACES

The Commercial /Investment Committee recently hosted a sold out Commercial Real Estate Day at the Races at the beautiful Santa Anita Racetrack. The event started off with a Top Producers panel consisting of commercial practitioners from the largest big-name commercial brokerages in the business. They included: Linda Elkaim, Broker/ Owner of Top Commercial Realty, Inc.; Dennis Sandoval, Executive Vice President of DAUM Commercia; Robert Stove, Senior Vice President of NAI Capital; and Bill Ukropina, EVP of Coldwell Banker Commercial Advisors – Glendale. The panel members answered questions regarding their successes and suggestions of how to do business better. Our next speaker, Stefan Swanepoel, who creates the ALERT reports for the National Association of REALTORS® gave insights and statistics on trends that are relevant in the current market. Following Stefan, our keynote speaker, Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research for the National Association of

(Panelist Linda Elkaim and Robert G. Stover network with member Vincent Dudziak) 16

REALTORS® discussed the White House administration and how it affects commercial real estate and the economy as a whole. We thank our sponsor for this event, the American Industrial Real Estate Association (AIR). If you didn’t make it to this year’s event, we encourage you to attend next years. It is sure to be another fantastic event! Also, if you are interested in Commercial real estate,

(Packed house with over 100 real estate professionals in attendance)

ARCADIA REALTOR® · SEPTEMBER/OCTOBER 2017

remember that our Commercial and Investment Committee hosts a Commercial Education & Networking Session on the first Thursday of every month in the Arcadia Association building from 11:00AM to 12:30PM. Light lunch is provided. The Committee has their monthly meeting at 9:30AM prior to the education session. The meeting is open to all AAR members. If you have an interest in the Committee, we welcome you to come by and visit one of our meetings.

(Andrew Cooper, Stefan Swanepoel, Dr. Lawrence Yun with Nick Zigic, Commercial Chair and Mike Vachani, Commercial Vice-Chair)


Investment & Vacation Home Buyers 2017 Vacation & Investment Buyers

The share of vacation buyers fell last year to 12% from 16%, which puts it at the historical average. Investment buyers remain unchanged at 19%. 42% of vacation home buyers plan to use their property for vacations or as a family retreat. 37% of investment property buyers purchased to generate income through renting the property.

Location, Location, Location

25% of vacation buyers purchased in a resort area, 25% purchased in a rural area, and 21% in a small town—all higher than other buyer types. 36% of vacation buyers purchased in a beach area, 21% purchased on a lake front, and 20% purchased a vacation home in the country. 34% of investors purchased in a suburb or subdivision and 23% in an urban area or central city. The typical home price was $200,000 for vacation buyers, up from $192,000.

Sizes & Prices

Investors typically purchased a median-priced property of $155,000, up from $143,500. 36% of investors and 29% of vacation buyers paid all cash for their property purchase. The median square feet of a primary residence was typically 1,900 square feet, while the median investment property was 1,500 and a vacation home was 1,460.

Source:

nar.realtor/reports/investment-and-vacation-home-buyers-survey

SEPTEMBER/OCTOBER 2017 · ARCADIA REALTOR®

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

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2017

LEGISLATIVE

MEET GREET Cocktails & Hors d’oeuvres will be served.

Come and meet the SGV, CA and County Legislators! State Senators, Assembly Members, Controllers, Mayors, Council Members, City Managers, and other important guests have all been invited.

Friday, December 1, 2017 5:30PM - 7:30PM

DoubleTree - Monrovia 924 W Huntington Dr, Monrovia, CA 91016 Complimentary for RCR Members | $20 for non-RCR Member

Please RSVP over the phone or via email with Robin at: 626-446-2115 | Robin@TheAAR.com www.TheAAR.com ~ 601 S. First Ave. Arcadia, CA 91006 ~ 626-446-2115 ~ Fx. 626-446-4072

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Arcadia REALTOR Magazine - September/October 2017  

The September/October 2017 publication of the Arcadia REALTOR.