Realtor Magazine December 2020 & January 2021 by Bakersfield Association of REALTORS®

M A G A Z I N E DECEMBER 2020 | JANUARY 2021

INSIDE

TIME-SAVING TECHNOLOGY

Learn more about new member benefits and time-saving tech tools like GLIDE for PEAD’S, now integrated with our MLS. See page 17

PHENOMENAL LEADERSHIP IN 2020 Honoring incredible leadership at the state, regional and local levels. See page 21

R E A L T O R S

REALTORS EMBRACE the new normal ®

P O S I T I V E L Y

I M P A C T

O U R

1 C O M M U N I T Y BAKERSFIELD REALTOR® MAGAZINE

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BAKERSFIELD REALTOR® MAGAZINE

2020 OFFICERS President Ronda Newport Watson Realty

President-Elect Scott Knoeb Frontier Real Estate Services, Inc. Vice President Anna Albiar Coldwell Banker Preferred, RLT Secretary/Treasurer Wayland Louie RE/MAX Golden Empire Immediate Past President Athena Collup Miramar International, Mill Rock Chief Executive Officer Kim Huckaby

2020 Directors Nik Boone Ascend Real Estate

Michele Cooper Karpe Real Estate Center Martha Johnson Watson Realty ERA Bill Mell Bill Mell & Associates Kym Plivelich Marcom Real Estate Glenn Porter RE/MAX Golden Empire Brian Tuttle Coldwell Banker Preferred, RLT Michelle Valverde Wyrick & Associates Real Estate

ON THE COVER

With 2020 coming to an end, it’s no longer business as usual for REALTORS® considered essential business, as they push on with fortitude and resilience during a coronavirus pandemic.

CONTENTS

Bakersfield REALTOR® Magazine

JEANNE RADSICK 2020 a year of many first

JENIFER PITCHER Government Affairs Consultant How election results will impact real estate

HEATHER KIMMEL, Executive Director Housing Authority of Kern Foundation is a vital part of our community providing safe and affordable housing

BRUCE FREEMAN Ward 5 City Councilman Participation encouraged from the “silent majority” encouraged

PATTY GRAY Ward 6 City Councilwoman Diverse industry and jobs important to the growth of our community

ERIC ARIAS Ward 1 Bakersfield City Councilman Committed to uplift our community

ANNA ALBIAR Time savings tech tools introduced to members at no cost

GARY FRAUSTO YPN’ers overcome 2020 with resiliance

PHENOMENAL LEADERSHIP IN 2020 Honoring incredible leadership at the state, regional and local levels.

Executive Editor - Kim Huckaby CEO Managing Editor - Carol Duran Contributing Articles Editor - Tiffany Waldowski Statistics - Jamey Lyster Graphic Designer - Carol Duran Bakersfield Association of REALTORS® 2300 Bahamas Drive, Bakersfield, CA 93309 P. 661-635-2300 F. 661-635-2317 www.bakersfieldrealtor.com facebook.com/bakersfieldrealtors twitter.com/bakorealtors

BAKERSFIELD REALTOR® MAGAZINE

LETTER FROM THE PRESIDENT

CHEERS to all of the possibilities of 2021

s I look back on 2020, I reflect on how our lives have changed. We have made it to the end of this challenging year, not on our own, but together. At the Association, we have attempted to change the culture in how we view the pandemic. It is not about what we can’t do, but instead about embracing what we CAN do. While I acknowledge the difficulty of 2020 and the challenges our members have faced because of COVID-19, there have been many significant accomplishments achieved. Our collective perseverance alone is worthy of acknowledgment. With each passing year, I become increasingly honored to be part of the Association, and I could not be prouder of our membership. And here’s why, REALTORS® are made of true grit and resilience, more so than any other profession. Because of this fact, 2020 has not been nearly as cruel as some had predicted for our profession and industry at the beginning of the pandemic. Our members are out there each day working hard, hustling to achieve their goals, helping their clients achieve the American Dream, and thriving. And to top it off, we are still making the time and finding the resources to give back and participate as we carry on our efforts to strengthen

BAKERSFIELD REALTOR® MAGAZINE

Our members are out there each day working hard, hustling to achieve their goals, helping their clients achieve the American Dream, and thriving” our Association and grow a better community. Who WE R® and what we do is much more important than ever. Our clients have relied upon our expertise to navigate them through the unchartered waters of 2020. Those waters have included brand new ways of doing business, legal guidelines and procedures, and market changes- to name a few. We have met those needs with exceptionalism and professionalism. It may be tempting to fantasize about going back to normal, but the reality is that we are probably never going back to normal or at least the normal we once knew. “The only constant in life is change”-Heraclitus. Today, we are not sure when we will reopen the Association office or if we will even be

permitted to hold a sizeable in-person event or meeting in 2021. But what I do know is this. Together, we will continue to move forward, innovate, create, and improve to meet every need of our membership, so that our members can do the same for their clients. I will elect to remember 2020 as a year of significant change and strength for us; our members did not stop; our leadership did not stop, the Association and its staff did not stop. Instead, they excelled throughout the pandemic and smashed the challenges that it presented. We removed obstacles, unearthed new ways to connect, identified, adopted, and streamlined new approaches to serving our membership. I am going to wear my presidency as a badge of honor. Thank you for entrusting me as your 2020 President, allowing me to represent you, and the opportunity to lead our membership. Thank you to my Leadership Team, the Board of Directors, and our CEO and staff for all of their hard work, countless volunteer hours, wise counsel, and unwavering dedication to the Association, our membership, and the community that we serve. CHEERS to the NEW YEAR and all of the new possibilities that 2021 will bring! And CHEERS to all that was accomplished in 2020!

LETTER FROM THE CEO

REALTORS collectively demonstrate resilience, adapt, and focus on ingenuity

wish you and your families joy, health, and prosperity this holiday season, the New Year, and beyond! As President Ronda Newport most eloquently said, “I will elect to remember 2020 as a year of significant change and strength for us.” I realize a giant elephant in the room cannot be ignored, as we are now more than nine months into a global pandemic with few answers or realistic timelines of when we can expect restrictions to ease. The “normal” we once knew is now gone, but that isn’t necessarily bad news. We still have an amazing opportunity before us to seize the best of what we have learned and achieved in 2020, such as modern technology’s conveniences and to scratch antiquated systems that no longer

serve their purposes. Organized real estate will continue to defend the current position and guidelines that allow our members to work each day as part of an essential sector. The Association will be here to

continue to guide and equip our members with the education, communication, and information necessary to sort through complex, challenging, and perhaps even dangerous issues well into 2021. We are here to serve you. Together, we will continue to collectively demonstrate resilience, the ability to adapt and evolve, and to focus on ingenuity. I know that we will embrace the relationships and partnerships that have strengthened throughout the profession and industry, both near and far. Speaking of relationships, partnerships, and in the spirit of promoting positivity, encouragement, and gratitude, I will leave you with an email from Ken Carter that our leadership team recently received. I feel compelled to share this email (with permission, of course) with hopes that the thoughtfulness, kindness, and gratitude contained within it might have the same inspirational impact on you.

Our leadership team recently received this inspirational email from Ken Carter, Watson Realty

FROM

KEN CARTER

KIM HUCKABY, BAKERSFIELD ASSOCIATION OF REALTORS, CALIFORNIA ASSOCIATION OF REALTORS

Happy Saturday on this roller coaster of a year. Wow. And what a year it’s been. We were doing some year-end planning this week, and we stopped at one point to ponder where we stood in March of this year and to give thanks for the year we have experienced as a company. As our financial institutions asked for predictions back in March, our forecast wasn’t anything close to where we stand today. What an amazing and somewhat miraculous turn of events! Our industry is blessed with unique people who perform necessary and unique tasks - day in and day out. As brokers and owners, our task is merely to create and support an environment where those people and their tasks are allowed to perform at their highest and best. However, that piece is impacted by a number of people and events. As a company, in addition to COVID, we also navigated a number of business issues that required our daily attention and constant input and flexibility. To achieve our ends, we really needed to hunker down and focus on a

few critical aspects - show up, be safe, lead, communicate, and empathize. We needn’t look far to see that model already in place. Our state and local industry leaders all reflected a true American spirit - of work hard - very, very hard - lead, communicate, and empathize with those whom they lead. At Watson, it was very easy to do these vital few as that model surrounded us. C.A.R., President Jeanne Radsick, and your tremendous team, the BAofR, President Ronda Newport, your team - you all have led with courage and grace and the professionalism that defines the very best parts of our wonderful industry. Each of us - all of us faced an unimaginable set of circumstances and potential consequences. As a survivor and thriver, I stand on the other side of the abyss to say thank you, thank you, thank you - and congratulations on a job well done. You all deserve honors and awards that don’t exist. To each of you - you all are the perfect example of the right people in the right positions

at the right time. How fortunate for the rest of us. While none of you were able to enjoy the pomp and circumstance normally afforded you during your leadership terms - instead, and in my opinion, much more valuable- you will each carry with you the honor and pride of knowing that your terms impacted your membership, unlike any previous time or for any previous leader. I hope this sentiment, which I believe to be absolutely true, is some solace as you reflect upon the missed people, places, and events that normally befit the title and role. At Watson, we know who we have to recognize and thank - and I guess, for now, this tiny but heartfelt thank you will have to suffice. I look forward to the time when we can all gather in the same place at the same time so that Bill and I can properly express our deepest appreciation for the team of all teams - the leaders and staff who made it possible for us to experience results that were unthinkable and a future of unlimited opportunity. My sincere gratitude to each of you. You’re all simply the best! Sincerely, Ken Carter BAKERSFIELD REALTOR® MAGAZINE

Time brings forward progress 2020 was a year of many firsts that will become a part of our new normal contribution by

JEANNE RADSICK CENTURY 21-JORDAN LINK & CO.

TIME! Time is our most precious commodity, but its descriptions are curious: we can squander, waste, or pass the time, but where oh where does it go? This past year has certainly been interesting, and the passage of time only highlights how fickle it can be. Have you not felt like the days may drag by, but you cannot tell which day of the week it is? Then it’s suddenly Monday again! And how did we arrive at the end of the year? I will tell you that this year has flown by. And as strange as it may be, I have enjoyed it. The time spent as your President of the California Association of REALTORS® has been nothing short of amazing. We have learned how to list and sell homes in an entirely new way, and who would have thought this would be a record-breaking year? We helped pass legislation that will have lasting effects, and we helped to defeat others, all to benefit the consumers who remain unaware of our efforts. But we do not do it to get credit; we do it because

BAKERSFIELD REALTOR® MAGAZINE

it is the right thing to do. There must be someone who watches out for some of the bills that would harm the ability to buy or sell real estate, and that is the role we have shouldered. C.A.R. held its winter meetings the first week of February in Anaheim, and we had no idea what was barreling toward us. Ignorance is bliss, as they say, but the shift was so violent and complete that we had no choice but to adapt. First deemed “Non-

essential” workers, then “Essential”, then ever-changing requirements like gloves, booties, hand washing, and masks. New forms and more new forms fueled some frustrations, but after a dip in sales in March and April, we roared back, and it has been as hot of a market as we have seen since 20042006. Since the winter meetings, we have subsequently had the Legislative Days which are usually held in Sacramento become virtual for the first time. Even virtually, they were successful. Following the same online format, we had the “Long Beach” fall meetings. We had thousands of our members able to attend because it did not involve travel, and they could participate in different classes and panels all at no cost. This was a year of many “firsts,” and frankly a lot of it will become a part of our new normal. I do not see ever going back to the way things were done. But this is what makes for forward progress, and I thank you for the opportunity to be a part of that progress. Together we will see change that we never dreamed of.

REA LT O R S ® A R E “A M B ASSADOR S” TO THE ASSOCIATION

Election results and real estate

contribution by

JENNIFER PITCHER GOVERNMENT AFFAIRS CONSULTANT

Election season is behind us, but we may be left with more questions than answers at this point. In light of that, we will not touch on the outcome of the Presidential election as there are so many factors at play. One thing is for certain: this has definitely been an election that tested the Constitution more than any other. Early in election season, Governor Newsome issued an Executive Order mandating that all voting must be done through the mail, as part of his response to COVID. The legality of this Order was challenged both legislatively and in court. The outcome was that each County would make the decision of whether or not to hold in-person elections. The Kern County Board of Supervisors voted to hold in-person voting, however, the State ordered that each registered voter be mailed a ballot. This resulted in a record number of people voting, and a record number of provisional ballots (for the thousands that forgot to bring their mail-in ballots to the poll when they voted). No matter the outcome, we can agree that Democracy was the winner with so many people exercising their right to vote. In Kern County, we had over 300,000 ballots submitted. As of the day I am writing this article, there are still 97,000 ballots left to be counted. So, it is safe to say that the official results could change by the time this is published, specifically on the smaller,

local races. There were 12 state propositions on the ballot. The California Association of REALTORS® took a position on 3 propositions, as the other 9 were considered “not real estate related.” The Bakersfield Association of REALTORS® still published information on the 9 unrelated propositions in hopes that it helps clarify some of the political and legal jargon for our members. Proposition 19 was the initiative lead by CAR where we collected over 1 million signatures to qualify for the ballot. This initiative allows homeowners who are over 55, disabled, or victims of natural disasters to take a portion of their property tax base with them when they sell their home and buy a new one. This inherently strengthens Propositions 13 and 58, both passed by voters decades ago. Prop 19 allows eligible homeowners to transfer their tax assessments anywhere within the state and enables

tax assessments to be transferred (up to 3 times) to a more expensive home with an upward adjustment. We are very excited to say that Proposition 19 passed! Contrarily, Proposition 15 sought to weaken Prop 13 protections by creating a “split roll tax.” This means that taxes on some commercial properties would be based on market value, rather than on the price it was purchased. This would have raised property taxes on many large businesses across the state. CAR OPPOSED this Proposition. The Secretary of State has not officially declared a defeat, but preliminary numbers indicate this initiative failed. Lastly, CAR opposed Proposition 21 which would expand local governments’ power to use rent control. While millions of ballots remain uncounted, this Proposition has FAILED. Locally, there were 4 City Council seats up for election. Ward 2 Councilman Andrae Gonzales and Ward 5 Councilman Bruce Freeman both ran unopposed and won re-election. The Bakersfield Association of REALTORS® endorsed and supported both incumbents, as both have proven to be REALTOR champions. Wards 1 and 6 were both open seats after the retirement of Ward 6 Councilwoman Jacquie Sullivan and the resignation of Ward 1 Councilman Willie Rivera. The Bakersfield Association of REALTORS® endorsed Eric Arias for Ward 1; Arias is a District Representative for Assemblyman Rudy Salas. Arias had one opponent and won the seat with over 70%

Continued on page 34 BAKERSFIELD REALTOR® MAGAZINE

Housing Authority of Kern Foundation

Vital part of community providing safe and affordable housing

It will take new programs and partnerships promoting self sufficiency to assist families out of Public Housing and to help them take the next steps forward. There are currently 2,000 families participating in the Authority’s Resident Services Programs. These programs promote Financial Literacy, Credit Repair, Employment and Training, and Homeownership. We are proud to serve Kern County and to fulfill our mission, one family at a time.

contribution by

HEATHER KIMMEL

EXECUTIVE DIRECTOR FOR THE HOUSING AUTHORITY OF KERN FOUNDATION

The Housing Authority of the County of Kern’s (the Authority) mission is to Improve the quality of life for low-income residents of Kern County by providing safe, affordable housing, and assisting residents towards self-sufficiency and home ownership. The Authority was established in 1939 to provide affordable housing in low income neighborhoods. In the late 60’s the Authority began operating rental assistance programs, now known as the Housing Choice Voucher Program, or Section 8 Voucher Program. By the early 70’s, housing assistance was expanded to Farmworker Families. During the 80’s and 90’s the Authority issued millions of bonds to finance the construction of market rate apartments and single-family homes. Fast forward to today, the Authority is still a vital part of the community, providing safe affordable housing to thousands of Kern County residents. We continue to operate Low-Income Public Housing, the Housing Choice Voucher Program, and Farmworker Housing. We have since expanded our housing services to Emancipated Foster

BAKERSFIELD REALTOR® MAGAZINE

Heather Kimmel

Executive Director for the Housing Authority of Kern Foundation

Youth, Homeless individuals, Veterans, and Senior Citizens. Currently, there are over nearly 3,000 households living in affordable rental units owned or managed by the Authority, with nearly 4,000 additional households receiving Tenant Based Rental Assistance. Unfortunately, the need for affordable housing continues to grow, with over 18,000 people on the Public Housing Waiting list.

In fall 2020, the Bakersfield Association of REALTORS® received a $50,000 Housing Affordability Fund grant from the California Association of REALTORS® and a $1,500 Housing Opportunity Program grant from the National Association of REALTORS®. These grants will cover up to $2,000 of closing costs for first-time home buyers. To qualify for an award of up to $2,000, the applicant MUST use a Bakersfield REALTOR® member. Each member can have up to three clients receive grants. Please keep an eye out for more information on how your client can apply.

VISION Participation from the “silent majority” encouraged

contribution by

BRUCE FREEMAN WARD 5 CITY COUNCILMAN

Ward 5 City Councilman

Bruce Freeman

As many know, having spent my career in the “real world” of business, I hesitate when asked what my “vision” for the future is. These “visions” or dreams normally stay in the nether world and never land on earth. Nevertheless, I do see three areas where city government and the citizenry can work together to make Bakersfield a more vibrant, attractive place with an improved quality of life for all. Three is enough if we want to achieve anything. The first is to truly become the most business friendly, service-oriented city in California; and then to actively market this characteristic throughout the state. Second, is to “seriously” clean up the appearance of

our city as you see it driving into Bakersfield and driving through it. Our unkempt off ramps and boulevards are an embarrassment instead of an inspiration to those who visit us. They send a signal that we simply don’t care. Third, I would to see the city boot up a strong economic development department that works with business leaders to grow promising local businesses and recruit new ones from outside of Bakersfield. All of the above are completely within the scope of city responsibilities and could be fully funded with city resources. Finally, I would hope for much, much more participation from the “silent majority” of our citizens in voicing support and insistence on city government creating the future with practical, achievable steps like those outlined above. BAKERSFIELD REALTOR® MAGAZINE

Strong communities don’t just happen.

We build them.

Your Bakersfield Association of REALTORS® Charitable Foundation provides many ways to support our

community through: n Grants recommended by members and local non-profits for property-related assistance n Community Improvement Projects involving our members n Housing Education for the consumer and community-oriented organizations around affordable housing

There are many ways to amplify our impact as a REALTOR® community.

Help us build a stronger Bakersfield. Your association’s Foundation supports causes you care about through partnerships that lead to a safe, healthy, vibrant Bakersfield. Discover more about how to amplify your impact at www.barcf.com

Your association’s Foundation supports causes you care about through partnerships that lead to a safe, healthy, vibrant Bakersfield

Discover more about how to amplify your impact at www.barcf.com

BAKERSFIELD REALTOR® MAGAZINE

Edited

Diverse industry and jobs are important to our community

Gray wants to be part of the solution in our area, not part of the problem contribution by

PATTY GRAY

WARD 6, CITY COUNCILWOMAN-ELECT

“To whom much is given, much is required” (Luke 12:48). As a community member, Patty Gray, newly elected Council Member, believes that it is her responsibility to give back. Running for City Council was an opportunity for her to do just that! Patty’s priority for Bakersfield is to make sure that our citizens and businesses are safe, and our departments are well funded and not defunded. The pursuit of happiness can only derive from safe neighborhoods and shopping areas. Bringing new diverse industry and jobs to Bakersfield, she believes, is also vitally important to support our growing and affordable housing market. Patty would like to pursue bringing a trade school into Bakersfield for carpenters, plumbers, and

Patty Gray

Ward 6, City Councilwoman-Elect

electricians (this comes from her experience in construction). For every five tradespeople

retiring, only one is replacing them. It has become a national crisis. The trades are good paying jobs that would keep our young people close to home after high school without burdening them with huge debt. There are many falling through the cracks if they are not college bound, which opens the door for other social problems. She wants to do something about that! Patty also wants to strengthen our City Council with her conservative and traditional values that have made Bakersfield and the valley the great place that it is to live by supporting a business-friendly environment for existing businesses and entrepreneurs just getting started. Sadly, we are seeing a huge exodus out of California due to high taxes and regulations. Patty, as we all should, wants to be part of the solution in our area, not part of the problem. BAKERSFIELD REALTOR® MAGAZINE

INCLUSION …everyone will have a seat at the table

Eric Arias, who earned 74% of the vote, will work to uplift our community

diversity, thoughtfulness, and inclusivity contribution by

ERIC ARIAS

WARD 1, BAKERSFIELD CITY COUNCILMAN-ELECT

Eric Arias

Ward 1, Bakersfield City Councilman-Elect

BAKERSFIELD REALTOR® MAGAZINE

I am honored to write to you as the Councilmember-Elect for Ward 1 of the Bakersfield City Council. As you know, this election was historic for many reasons. Voter turnout both here in Kern County and across the country was at record-breaking highs. In my race specifically, almost 10,000 residents voted, an increase of 64% from the last election! I am proud to have earned the support of over 74% of voters in our community. I can’t express enough how grateful I am for the support of my Ward 1 neighbors as well as the incredible support of local organizations like the Bakersfield Association of REALTORS®. It is because of

all of you that I am here today. Thank you. Now as I get ready to take office, I will make history as I get sworn in as Bakersfield’s first Filipino-American Councilmember. This is a huge milestone not just for the Filipino community but for all of us who still believe in the “American Dream”. I will ensure to work for everyone in our community. From the single mother working two jobs to put food on the table and the young people striving for a brighter future, to the entrepreneur bringing new business opportunities to our area; everyone will have a seat at the table. I look forward to continuing to work with the Bakersfield Association of REALTORS® and working to uplift our community in a diverse, thoughtful, and inclusive way.

Sanjeev Advani participates in Kern Leaders Academy

Change happens in our community when we find solutions contribution by

SANJEEV ADVANI

Broker, Synergy Property Management

Being selected for Kern Leaders Academy was originally something that I had done to add to my resume. I didn’t think that it would really add too much to my life, business, or my view of the world. Little did I know that I would be put in a class with seven other people who were driven to be leaders in Bakersfield, and who wanted to see this place that we call home, live up to its full potential. The classes seemed to be meant as a “sampler” of the issues and inner workings of our governing systems, and they offered a lot of insight into how things work and what we can do to be the change we wish to see. The people in the classes added perspectives which differed from my own and allowed my mind to expand and learn about new ways of looking at things and thinking about things. For those considering to go into leadership, who are looking to make changes and shake up the way things are done, I believe this is an experience that you must go through. Even as a normal everyday citizen, I think this is something that most people should go through to see how our government systems work and how we can

Sanjeev Advani

Broker, Synergy Property Management

make the changes that we wish to see for our communities moving forward. Most people seem to think that voting for our president is the most important choice we can make for our communities and our country, but this class has shown me that there really are many more people that we should be paying attention to, whether that be your local high school board, or the state assemblyman. By paying attention to these other positions, and being involved in the City or County,

we can make changes close to home that will help our individual areas succeed. Without paying attention to these people and items, we will be left behind, and our systems dictated by those people with special agendas and looking out for their own best interests instead of the best interest of our community as a whole. At the end of the day, this class taught me that the responsibility lies within each individual and their ability to educate themselves on the issues and problems in their societies. Once we are educated in the problems, we can educate ourselves in the solutions, and we can affect change by knowing the correct forums to present our solutions and by getting the correct people involved to further our causes. Although it may not seem like it to many people, especially right now, we do truly have the power to control the wellbeing of our communities, but we have to educate ourselves and get involved. If we see something that needs to be changed, instead of turning a blind eye or trying to justify it, we need to figure out the solution and push ourselves and those around us, until that solution has been implemented and achieved. BAKERSFIELD REALTOR® MAGAZINE

REALTOR ACTION FUND ®

Your contributions help protect private property rights by keeping our influence strong

candidates who support our industry!

contribution by

JENIFER PITCHER

So how do you get involved in the

GOVERNMENT AFFAIRS CONSULTANT

REALTOR® Action Fund? The easiest and

REALTOR® ACTION FUND

most effective way of contributing to the

Have you heard about the REALTOR®

RAF is through your dues payment. Check

Action Fund (RAF)? Well, RAF is a vital

the box for the voluntary contribution, and

service for YOU and YOUR business. By

let our staff do the rest! We also run contests

contributing to the REALTOR® Action

throughout the year. 2020, of course, has

Fund, you are helping protect private

been different than in years past, as we have

property rights through C.A.R.’s lobbying

not been able to hold events. Traditionally,

efforts, and your local issues and candidate

we will hold special events with elected

campaigns. Your voluntary participation

officials we support and have fun activities

is what keeps the REALTORS® influence

and prizes for your participation. Recently,

going! Your RAF contribution helps put REALTOR® friendly candidates in office at

Jenifer Pitcher

Government Affairs Consultant

we completed an Office to Office Contest where each participating office faced off in a battle royale! Each office that had the highest

the local level (i.e. city, county, mayors, etc.).

directly helping YOUR business by allowing

percentage of voluntary contributions to

RAF provides a strength beyond anything we

you to work during the state shut down. By

the REALTOR® Action Fund within their

can accomplish individually. We are united

focusing on the issues most critical for your

specified categories received the perpetual

in this together and we need your support

business and your clients, the REALTOR®

traveling custom office trophy and $150

now more than ever! It is because of the

Action Fund is about putting members in

gift card to use for an office luncheon. To

lobbying efforts by C.A.R. that real estate

office who are REALTOR® friendly, whether

be eligible to win, all RAF contributions of

was deemed an “essential service” throughout

Democrat, Republican, Independent, we

$20 or more by individual members were

the COVID pandemic. This was RAF

are the REALTOR® Party and support

received by October 31, 2020.

BAKERSFIELD REALTOR® MAGAZINE

What has the RAF done for you this year alone? We successfully fought off more stringent eviction moratoriums at the local level. Instead, we supported the City in their effort to offer rental assistance to tenants in

Congratulations to Our Winners!

need, so the burden would not rest entirely on the landlord. Independent contractors were eligible to apply for local emergency relief, as well as State Pandemic Unemployment (for the first time). Most importantly, because of RAF, REALTORS® received “essential” status and were thus able to continue to work while hundreds of thousands found themselves unable to work due to COVID. If you’d like to make an online contribution to the REALTOR® Action Fund, go to https://tinyurl.com/uk9fxlf. You can also spread your voluntary contribution to the RAF throughout the year by making monthly payments.

REALTOR Action Fund Winners ®

Highest overall contribution of $11,877 – Watson Realty

The winners of the 2020 Bakersfield Association of REALTORS® RAF Battle Royale are:

n JOHN BALFANZ HOMES Small office 1-10 agents) 100% participation

SEARCHKERN.COM

n GOLDEN VALLEY REAL ESTATE GROUP Medium office 11-20 agents 100% participation

RE/MAX GOLDEN EMPIRE

n SEARCHKERN.COM Large office 21-40 agents 100% participation

n RE/MAX GOLDEN EMPIRE Jumbo office 40+ agents 100% participation

n Special recognition to WATSON REALTY for highest overall contribution of $11,877! THANK YOU to everyone who participated in the contest, and for every member who contributes to the REALTOR® Action Fund!

GOLDEN VALLEY REAL ESTATE GROUP

JOHN BALFANZ HOMES BAKERSFIELD REALTOR® MAGAZINE

Edited

Angela Trevino chosen as one of eight participants to attend Kern Leaders Academy

Community Leadership Program Impactful contribution by

ANGELA TREVINO KERN LEADERS ACADEMY

I recently had the honor and privilege to attend a very challenging leadership academy. The Kern Leaders Academy is a community leadership program put on by the Kern County Taxpayers Education Fund. This program teaches a wide array of topics aimed at helping individuals of a variety of backgrounds and fields become a strong community leader. We discussed and analyzed many ways to make Kern County a better place to live and raise our families. The first class was taught by two Professors from CSU Bakersfield, Steven Gamboa and Michael Burroughs, who challenged our critical thinking and ethics. Another highly impactful moment for me was touring the M street Navigation Center. This new county shelter is designed to be

BAKERSFIELD REALTOR® MAGAZINE

Angela Trevino

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a 24-hour facility providing shelter beds, meals and laundry services, and medical assessments to homeless men and women who face significant barriers to supportive housing care. This center is a new addition to our county services and they are doing great work. The entire program, consisting of 72 hours of instruction over a period of nine weeks, gave me a clear understanding of how I can engage in local government and community leadership opportunities while challenging me to voice my independent thoughts and opinions. During the course, we had the opportunity to meet several graduates of the academy. They all spoke of how impactful the academy was for them, something I can now attest to. I have been extremely honored and proud to have been selected as one of only eight participants of the class of 2020.

Members Offered Time-Saving Tech Tools Technology committee offers valuable training through webinars

contribution by

ANNA ALBIAR

COLDWELL BANKER PREFERRED, RLT, COFFEE

Have you noticed the PEAD single sign on that was recently added to your MLS listing? If you have not, whether you are an agent representing a buyer or a seller, this is a great news. It’s a benefit brought to our Bakersfield Association of REALTOR® members as a new member benefit at no additional cost to you. If you have noticed, we hope that you are using this great new tech tool to not only manage your PEAD’s, but to also assist you in getting the sellers to complete their disclosures. It’s one more tech tool that promises to lessen the stress of incorporating the new Coronavirus PEADS document when showing any property. The Technology Committee hosted a TUG Virtual App Training, which featured this new tech tool from Glide on November 12, 2020. If you missed the virtual training, you can visit our website and navigate to the TECHNOLOGY tab. Under this tab, you can click on “Training Videos and Resources”, where you will find the recorded session under the GLIDE RESOURCES. The Technology Committee is also working on the possibility of scheduling another GLIDE class in the Spring quarter of 2021. Glide is helpful in getting your PEAD forms filled out, sent out for signatures, and then forwarded to the listing agents where

Anna Albiar they are all kept filed in their respective listing files. As a result, this makes it easier for the listing agent to keep track of all of their signed PEADs for multiple addresses. Glide is also ready to help you get your Seller Disclosures sent out to your sellers for completion. Glide allows the sellers to fill out the tedious disclosures, such as the TDS and SPQ, so that they are completed the first-time, thoroughly reducing risk to agent/ broker/seller for incomplete disclosures. With Glide, you can be confident that your TDS, SPQ, Seller’s Affidavit’s, and Earthquake Disclosures are filled out entirely before sending them out for signatures. REALTORS® lead busy lives trying to manage many responsibilities such as listings,

showings, writing and negotiating contracts, scheduling appointments, meeting inspectors/ appraisers, negotiating repairs, completing continuing education courses, and the list goes on. That is why the Bakersfield Association of REALTORS® leadership is so proud to bring our members this time-saving benefit when another big task of completing PEAD’s was added to our long list of to-dos due to the new COVID rules for our industry. Let Glide take some of the PEAD stress off your already long to-do list. In other Tech news at Bakersfield Association of REALTORS® we are excited to see that the new Atlas Tax System has been integrated into our MLS and is ready to start using and exploring. Hopefully, we will see phase 2 of this roll out in the spring of 2021 and offer some virtual TUG training courses to get us all up to speed on the features of this new tax product. Many of our members are also taking advantage of another great, no-cost to you member benefit brought within the past year by BAoR, the MLS TOUCH APP, available for you to download via Android and IOS. We have had 532 members download this handy app since October 2020, and that number is growing. If you have not downloaded MLS TOUCH APP, you need to check it out. It will help you save time when you are out showing properties or at listing appointments.

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2020 Good Neighbor Awards Recognize and Nominate Your Favorite REALTOR®

The Bakersfield Association

to improving the quality of life in our

contribution to our community. Go

of REALTORS and Bakersfield

community through volunteer work.

to www.bakersfieldrealtor.org /

Association of REALTORS Charitable

The winners will be announced in

resources to download the application.

Foundation are proud to announce

January and featured in our

our first local Good Neighbor

Magazine and receive a contribution

You can also call us at 661-635-2300

to the charity of choice.

Awards program. We are recognizing REALTORS who ®

make extraordinary commitments

for more information. Don’t wait, NOMINATE YOUR

Don’t wait, nominate a REALTOR

COLLEAGUES NOW!

who is making an outstanding

GOOD NEIGHBOR AWARD

C H A R I TA B L E

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F O U N D A T I O N

By overcoming COVID-19 challenges in 2020

YPN’ers are prepared for 2021 contribution by

GARY FRAUSTO 2021 YPN CHAIR

If one word can describe the YPN’s future heading into 2021, it’s RESILIENCE. The capacity to recover quickly from difficulties and toughness. This past year has taught us that we are all in this together as an industry and a community. As your 2021 Chair of YPN, I’m Bakersfield, born and raised. I’m going on my sixth year as a REALTOR® and driven producer. As a father and leader of four amazing children, I can identify with resilience to challenges I’ve had in my career and personal life. And now, giving back to fellow REALTORS® is my driving force. I didn’t overcome adversity or succeed alone. I’ve done this by having the right people around me and being coachable, removing my ego from the process, and always being willing to try new things with an open mind and heart. And that’s been the mindset with putting together the YPN Advisory board for 2021. We have strategically put together a team of like-minded individuals who are young to our industry, sales-driven producers, creative, outside-of-the-box thinkers, with a strong in-person and social media presence, but believe in trusting the

process, the game plan we have laid out for 2021 year. This Allstar advisory board includes Chyanne Wilemon (Vice-chair), Noah Salina (Secretary), Dan Ardis and Nicholas Cushman (Affiliates/Sponsors), Grant Sanders (Community outreach), Sunny Advani and Connor Andresson (Events), Blake Sherman, Casie Cortez (Membership), and Jose Arellano (Social Media). The YPN is still here, and we are going to bring amazing content and events this year. We have prepared two different schedules for events and meetings this year that will

allow us to work within the COVID-19 guidelines for Zoom education and also in-person events. We have our finger on the pulse for what’s going on in our community, and with our community outreach, we are bringing some successful best practices. Our goal is to stay connected to our members and community while continuing to grow our membership. Our current market is thriving and booming in sales. YPN wants to ensure we continue to bring you content to grow your business, mindset, best practices, education, raise funds, give back to our community and continue to prepare for the ever-changing market. I’m so excited to see what 2021 will bring. As the new Chair of Bakersfield YPN, I’m going to continue to go above and beyond. We look forward to your participation and the continued growth of our profession. Let’s stay connected and continue to work together, and I invite you to join the YPN with blind faith to see where it takes you. We are always looking to mentor and groom the future leaders of our Board of REALTORS®. So with that, I extend my hand and invitation to the new year, and let’s do it together! From our YPN committee to you, let’s be RESILITANT together. BAKERSFIELD REALTOR® MAGAZINE

Present all offers to the Sellers It’s a REALTORS® Fiduciary Duty and Code of Ethics

contribution by

if the listing agent gives permission to the buyer’s agent. Otherwise, a buyer’s agent is to conduct communications directly with the listing agent. The first step is always contact the listing agent and/or the broker directly, at which time ask that the seller initial the space for rejection of the offer or ask that the listing agent confirm that the offer was presented. A written letter may be found in the ZipForm Website that may be used to communicate this demand to the listing agent that ensures the offer is presented. Another option would be to request the right

JOE NEWTON OMBUDSMAN

Buyer’s agents are always concerned that an offer delivered to a listing agent has properly been given to the seller for their consideration. This concern is present in all types of market conditions, including when listing agents may be acting as dual agents to the seller. Below are legal questions and answers provided by the C.A.R. Legal Team. The C.A.R. RPA form contains a provision wherein the listing agent is requested to confirm that the offer has been presented to the seller or to have the seller reject the offer formally by initialing the bottom of the RPA. This is not a legal requirement, however, the agent confirming the presentation becomes an ethical matter. Mostly however, licensed agents will abide by their fiduciary duty and the Code of Ethics and present all offers to the seller. 1. IS THERE A LEGAL OR ETHICAL REQUIREMENT THAT THE SELLER INITIAL A REJECTION. It is a courtesy for the seller to respond this way, however, it is not a legal requirement for the seller. 2. IS THERE A LEGAL OR ETHICAL REQUIREMENT THAT THE LISTING AGENT INITIAL THE PRESENTATION OF OFFER BOX? No, not a legal requirement. However, effective January 1, 2019, the NAR Code of Ethics was amended through Standard of Practice 1-7 to require a listing office to verify in writing that the offer was submitted to the seller if the cooperating agent so requested. An exception would be if the seller had waived the obligation to have the offer presented. 3. WHAT ARE THE GENERAL LEGAL AND ETHICAL OBLIGATIONS THAT A LISTING AGENT HAS REGARDING PRESENTATION OF OFFERS? Legally at common law it is a fiduciary duty for real estate agents to present all offers. Failure to do so (without other written directions from the seller) could constitute fraud, dishonest dealing, incompetence, or substantial misrepresentations.

BAKERSFIELD REALTOR® MAGAZINE

In addition, the seller might claim negligence, breach of fiduciary duty, intentional interference with prospective economic advantage/relations, or even constructive fraud or actual fraud. The Ethical duties apply to all REALTORS® nationwide. The Code of Ethics requires all REALTORS® to present offers and counteroffers as quickly as possible (SOP 1-6). The Code of Ethics states that the REALTORS® have pledged to “protect and promote the interest of their clients” which would include presentation of offers. MLS Rules 9.4 and 9.5 further obligate the agent to present offers as quickly as possible. 4. IS A LISTING AGENT REQUIRED TO PRESENT ALL OFFERS EVEN AFTER AN OFFER HAS BEEN ACCEPTED? Listing agents are bound to continue to present any offer until closing unless the seller has instructed in writing not to continue presenting offers. If backup offers are expected by the seller, presenting other offers is helping the seller. 5. DOES THE LISITNG OFFICE HAVE A DUTY TO PRESENT ORAL (Unwritten) OFFERS TO THE SELLER? Yes. The broker must disclose to the principal/seller that an oral offer has been communicated to the listing agents. Such a requirement may be waived by the seller. 6. WHAT CAN A BUYER’S AGENT DO WHEN THEY BELIEVE AN OFFER HAS NOT BEEN PRESENTED TO THE SELLER? Various strategies may include contacting the seller directly

to participate in the presentation of the offer under MLS Rules. A sample letter is available in the ZIP FORMS (RPP). Such a request may be denied by the seller. Under some circumstances, the buyer’s agent may deliver by certified mail a copy of the agency disclosure form to the seller. This is if the listing agent is not dealing face-to-face with the seller. Under the MLS Rules, if the buyer’s agent is unable to contact the listing agent for a specified amount of time, it is possible for the buyer’s agent to attempt direct contact with the seller. In this case, it is recommended a cautious approach be taken to contact the seller where the listing agent precludes this direct communication in all circumstances, so a buyer agent must carefully check on this as well. 7. OTHER CONSIDERATION: There may be other liability questions raised such as whether a seller may sue a listing agent who does not present an offer? Or, whether a buyer has any legal recourse against the listing agent? And whether the cooperating broker or buyer’s agent have any legal recourse against the listing broker? Finally, remember no situation is more routinely faced by REALTORS® than presenting offers promptly to the benefit of all parties. Be aware of your duties to other parties--both as established in the Code of Ethics and in state law and regulation. For more information, refer to the Legal Questions and Answers PRESENTION OF OFFERS provided on the C.A.R. Website.

JEANNE RADSICK 2020 C.A.R. President & REALTOR®, Century 21 Jordan-Link & Co.

2020 PHENOMENAL WOMEN IN LEADERSHIP

SHERI ANTHES 2020 C.A.R. Region 12 Chair & REALTOR®, Coldwell Banker RLT

RONDA NEWPORT 2020 President, Bakersfield Association of REALTORS® & REALTOR®, Watson Realty

Thank you for your outstanding and courageous leadership at the state, regional and local levels. The Bakersfield Association of REALTORS® and its membership have been so fortunate to have your leadership in 2020. We are proud of the work you have done and the exemplary representation you have provided throughout the year on behalf of the membership.

Jeanne Radsick, 2020 President of the California Association of REALTORS®, lead with courage and grace to meet the challenges and guided all Californian REALTORS® throughout 2020.

Sheri Anthes, 2020 C.A.R. Region 12 Chair, successfully lead the Region 12 C.A.R. Directors through the unchartered waters of 2020 with determination, ingenuity, and innovation in order to complete the tasks at hand in a virtual world.

Ronda Newport, 2020 President of Bakersfield Association of REALTORS®, rose to the occasion and guided our local REALTORS® through new regulations and Executive Orders. Their camaraderie, leadership, insight, and experience guided REALTORS® locally, regionally, and statewide through these challenging times. Their volunteer service, long hours, and dedication to their profession and their colleagues collectively and individually should be commended. They are an inspiration to all! THEY ARE AN INSPIRATION TO ALL! BAKERSFIELD REALTOR® MAGAZINE

THE A TEAM

We have a special group of individuals who form a group of loyal, hard-working Affiliate Members called the A Team, who serve the Association in a variety of ways.

SUZI BEATY, CHAIR Fidelity National Home Warranty 661.477.3906 | suzi.beaty@fnf.com

MARY GUNSOLUS Cali Building & Home Inspection 661.829.5810 calibuildinghomeinspections@gmail.com

PAUL STEELE First American Title 661-302-7117 psteele@firstam.com

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LISA HOOK-ESTES RightStart Mortgage 661.301.5472 Lisa4aloan@gmail.com

SARAH TUCKER Home Warranty of America 661.337.0362 sarah.tucker@hwahomewarranty.com

DAN ARDIS, VICE-CHAIR San Joaquin Valley Mortgage 661.342.9381 danardis@sjvalleymortgage.com

HANNAH COOPER San Joaquin Valley Mortgage 661.303.7101 hcooper@sjvalleymortgage.com

MIKE GEORGE Agape Mortgage 661.324.2427 mikegeorge@agapemtgco.com www.agapemtgco.com

SHARI GEORGE Agape Mortgage 661.324.2427 sharigeorge@agapemtgco.com www.agapemtgco.com

CHEREYL NUNN Loan Depot 661.270.8601 cnunn@loandepot.com

JANETTE RAMSEY Janette Ramsey Insurance 661.328.9250 janette@jramseyinsurance.com

BARBARA WELLS San Joaquin Valley Mortgage 661.703.2227 bwells@sjvalleymortgage.com

DEANA WITWER Built Right Home Inspection 661.377.7777 deana@BuiltRightHI.com

Thank you A TEAM for supporting our REALTORS®

Learning Curve and Covid Challenges Q&A with new REALTOR® Lexus Stone LEXUS STONE

Q: What is your favorite aspect

Q: How did you get interested in

A: I like working with contracts or

contribution by

REALTOR® | RE/MAX GOLDEN EMPIRE

real estate?

A: I have always been interested in and intrigued by how architects designed homes and buildings. I’ve always loved looking at homes to see what they created and imagine how someone would decorate their home and build it. I also enjoy pushing paperwork and helping people. What’s that combined? REAL ESTATE.

Q: How has your life changed since becoming a real estate agent?

A: My life surprisingly changed quickly; it’s

Lexus Stone

REALTOR® RE/MAX Golden Empire

very fast-paced, and I’m doing new things that I wasn’t doing before. But you can’t grow if you are comfortable! It keeps you on your toes!

of real estate? filling out any paperwork. Also, to search for that perfect home for my clients. I like finding that needle in a haystack!

Q: How has your business changed during the COVID-19 pandemic?

A: SSince I’m a new realtor®, this is all I know about the business, but I do feel it hasn’t allowed me to meet other agents as much, including in my brokerage. I think it does have restrictions, so it’s a whole new learning curve.

Q: Best advice you ever received regarding Real Estate.

A: The sky’s the limit! BAKERSFIELD REALTOR® MAGAZINE

Now that Zillow has entered the brokerage industry, what’s next?

What are Zillow’s next moves? By Steve Murray, PRESIDENT, REAL TRENDS

we’ve seen show that well-run teams have far larger margins than most brokerage firms.

As many of you already heard, Zillow announced that they would start employing their own agents to handle the homes they are buying and selling. In their view, it makes sense to better control the service they provide and lower the costs of this service given that, as of last quarter, they were still losing significant money on each deal they bought and sold. There are others that speculate that this is their first foray into full-blown brokerage. While it’s likely true, we are curious about their next moves. Why wouldn’t they take control of the consumer traffic they generate and access a larger piece of the commission revenues through controlling the process using their own agents? Essentially, it’s what Redfin already does and, of course, lead generation and the use of lower-cost inside sales agents is exactly what large teams are doing. While Redfin has yet to show that they can make a profit, the team financials

Incumbents Still Have Advantages For some, this sends a shiver through the market, as any new forms of competition do. However, incumbents still have some advantages. The first is that nearly two-thirds of all consumers now use an agent because they know one or they are referred to one. And many of these housing consumers use their own agent even after visiting websites like Zillow, Redfin and Realtor.com. Consumers thus far seem to prefer a personal relationship with their agent as opposed to one employed by an online brokerage. Another point is how to scale the business. Redfin’s growth in closed transaction sides has slowed over the past two years and while the number of teams in our rankings has grown exponentially over the past few years, their average size in terms of closed transactions has not grown that much. Yes, there are a small number of teams that have grown quite large, but these are in the

BAKERSFIELD REALTOR® MAGAZINE

minority. Zillow has huge market share in online visitors and can direct hundreds of thousands of leads to their captive agents, or even those to whom they only refer the business. Their skills and resources in these areas are well established. Finding, training and developing their own agent force is no small undertaking. Generating higher conversion rates and retaining great agents is not guaranteed. We do think Zillow could exchange their ad business model over time and switch to their own agent force or referral-based relationships and generate more revenue and even potentially higher capture rates on other products such as mortgage and other settlement services. It’s all possible, but not guaranteed. Zillow and others like them present formidable new competition. They have some equally formidable hurdles to achieve significant success. Getting there will take time. This article reprinted with the permission of Real Trends Inc. Copyright 2020.

2020 Christmas for Seniors of Kern County

It’s beginning to look a lot like Christmas! Help brighten an isolated, homebound Senior or Veterans Christmas by collecting sundries and toiletries with a group of friends, your business, school, or church group. We’ve included a list of items that these homebound seniors or veterans consider to be luxury items. During the pandemic, it’s been even tougher for them to get a hold of the items listed below. This the season to give to those in need. Here’s a list of items we are collecting to distribute for this Christmas for Seniors program: n Mens and Women’s Socks, n Dryer Fabric Softener Sheets, n Laundry Detergent (small sizes – HE please) n Dish Soap

n Disinfectant Wipes n Paper Towels n Kleenex / Tissue Paper n Razors & Shaving Cream n Quality Two-ply Toilet Paper n Shampoo n Body Lotions n Toothbrushes & Toothpaste n Men’s and Ladies Deodorant n Large Print Word Find/Puzzle n Books Large print books n Calendars, n Dish Towels & Dish Cloths n Wash Cloths n $10 Gift Cards (Walmart, Target, Drug Stores, 99 Cent Store, Dollar Tree, etc.) Non-perishable food: n Soups n Crackers

n Canned Meats n Vienna Sausage n Drinks n Macaroni and Cheese n Chili & Cornbread n Puddings, n Jello For more information: (661) 703-1020 (661) 703-8893 Open Monday-Friday 10-4, Saturday 10-1 6601 Niles Street East Bakersfield Senior Center Christmas4senior@yahoo.com mailing address: 3501 Mall View Rd #298-115 Bakersfield, CA 93306 Christmas4senior@yahoo. com https://www.facebook.com/ bakersfieldchristmas4seniors/ BAKERSFIELD REALTOR® MAGAZINE

Are we in for a cyclical change or a permanent one? Let’s explore some market trends to find out.

What’s the new Abnormal?

BY LARRY KENDALL

buying opportunity of the past 10 years?

commercial right around the transit stations?

Change is constant. The question is: What kind of change are we in? Is it cyclical, where things return to normal, or is it structural (permanent) where the change becomes the new abnormal? Is this a big shift or is it simply a cycle? What are the impacts on real estate values? Here are five questions real estate leaders are asking themselves.

2. Working at home? Due to the COVID-19 lockdowns, many of us got used to working from home. Employ-ers got used to it as well. Is this temporary or permanent? It depends on the industry you are in and the type of work you do. Studies of knowledge workers have found that they can work at home, but their productivity is about 20% to 25% less depending on the industry. In the past, some companies that tried work-fromhome options have called their employees back into the office due to declining productivity. Will this happen again? In major cities where commuting times are long, perhaps a 20%-25% decline in productivity can be made up by substituting work time for commuting time. With high office rents, perhaps companies can mitigate a loss of productivity by renting less space. The Wall Street Journal estimates that actual human occupancy in New York office buildings this summer was only around 10%. Several buildings have announced conversion to apartments or condos.

4. Booming resorts and exurbs? It appears some of the migration from the cities is going into the resorts and the exurbs (small towns outside of the suburbs.) Prices are soaring. Will this continue? The most important amenity in these locations is high-speed internet for working at home. A concern: Many of these resorts and small towns don’t have the medical infrastructure to handle a significant increase in permanent population. In some cases, they don’t have the school capacity either.

Author of “Ninja Selling”

1. Urban flight? Is the flight from populated cities temporary or permanent? Will the fear of being unsafe in a densely populated environment due to COVID-19 as well as the civil unrest cause urban flight? Or, will these fears subside with cities booming again? Does the ability to work from home accelerate the exodus? What about home prices in these cities? The Federal Housing Finance Authority’s Second Quarter Report lists San Francisco as the worst market in America for appreciation with negative 3.3% through the first six months of 2020. San Jose and Oakland are next on the list. New York is fifth. Baltimore and Chicago are seventh and eighth. All of them had negative appreciation in the second quarter. The Wall Street Journal reports developers dropping prices on luxury condos in New York’s Manhattan by 30% to 50%. Do they know something, or is this the greatest

BAKERSFIELD REALTOR® MAGAZINE

3. Future of mass transit? Fewer people living and working in urban environments requires less mass transit. Are people afraid to ride the trains due to COVID-19? Several mass transit lines have been shut down or scaled back. Remember when the hot real estate play was developing apartments and

5. Larger homes and ancestral housing? Can you see yourself being quarantined in this home? That’s the new soft-closing question by real estate professionals these days. Many people are answering “No!” They want a home office, a home gym, a room for homeschooling their kids, etc. They also need room for their adult child or elderly parent who moved back in. The demand for larger homes is accelerating. Are we moving toward ancestral housing—larger homes that stay in families for generations? It’s too soon to tell what trends will stick and which will change once COVID-19 becomes less of an issue for our country. We are in a BIG SHIFT right now. How will it settle? That will be the new abnormal. This article reprinted with the permission of Real Trends Inc. Copyright 2020.

Understanding an agent’s career path and productivity is key to your recruiting and retention plan

Real Estate Agent Career Progressions

BY ROBERT KEEFE

President, Relitix Data Science

Understanding agent career progressions is key to managing a brokerage’s agent pool. This is one of the many areas in real estate where conventional wisdom dominates. We can now check these industry assumptions by looking at what the data says. At Relitix, we used a data set consisting of nearly 200,000 active agents in markets throughout the country to examine agents’ careers and productivity over time. While many of the findings confirm common sense and widely held views on agents, others might be more surprising. It takes agents a few years to get up to speed When we examine the trend line in production for newly commissioned agents, there is a clear pattern that emerges. The typical agent sees production grow rapidly through and around year three or four, at which time productivity growth begins to

slow. The highest year-over-year growth occurs between years one and two as the agent becomes more comfortable with their new profession and prospecting efforts begin paying off. Very few agents achieve their short-term potential in less than three years. Keep in mind that this applies to agents who last three to four years. You can count on 20% to 30% of all licensees leaving the business entirely before their third anniversary, although much depends on the licensing cost and structure of the licensee’s state. They aren’t going to see any money for a while Licensees in Phoenix, Arizona, did not see their first closed transaction for an average of 120-160 days after they received their license. Remember, this three- to fourmonth lag time can be longer as well. Many agents don’t record a closing for over a year. There is a long washing-out period for new licensees

A look at the ARMLS data covering the Phoenix market gives us a sense of the rate at which agents leave the business. The graph below shows the normalized MLS participation rate—a measure of how many of the original class of licensees are still recording transactions. Note that the curve increases from year zero to year one reflecting a number of licensees who took over a year from licensing to appear in the MLS record. After that point, the curve drops rapidly from year one to year 15, labeled Region 1. This tells us a few important things: 1. Lots of newer agents leave the business every year. 2. That rate doesn’t change much until 15 years after licensure. 3. In fact, the rate of agents leaving real estate actually picks up a bit in years 9-12. How do we interpret this? For many people, real estate is a transitional career.

Continued on page 34 BAKERSFIELD REALTOR® MAGAZINE

Strategies for more engaging sales meetings

All the World’s a Stage

By Anna Marie Ellison Managing partner, ERA King Real Estate

I may not quote Shakespeare during ERA King Real Estate’s weekly sales meetings, but I would definitely say we inject a bit of theater into these highly staged productions. Paying attention to how you produce a meeting should be just as important as the material you present. The more engagement opportunities you create will lead to a more inspired and productive team. That’s why we’ve invested so much in our weekly meetings and they have truly become a show. SET THE STAGE TO SET THE TONE Our philosophy as a real estate firm is that ERA King the company does not sell properties, our people do. Our whole business is built around supporting our people and positioning them for success. Sales meetings are a significant component of that support. As a managing broker for the firm, I oversee agent recruiting and professional development. I’ve found that weekly meetings go a long way in setting the tone for the week, providing motivation and creating achievable goals to support sustained production. That word production is important to us because we spend hours preparing to make certain our sales meetings aren’t just another meeting but an engaging, fun and productive event. Preparations for each weekly meeting begin at least one month out: Each leadership team member is provided with their schedule for the month, and it’s up to them to determine what content they will cover in their time slot each week. Once topics and content are established, each presenter works with our staff designers to create visually appealing slides to support their content. They may also make song selections to accompany their content. We then do a 30-minute dress rehearsal the day before the meeting to work out any rough spots. I learned that these meetings are critical, and you can’t just prepare for them the

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night before. You need to invest time and effort to create an informative, collaborate and valuable opportunity that drives a culture where agents want to—and do everything they can to—attend the meetings.

ENTERTAIN THE SENSES In real life, I have a DJ for our sales meetings, which creates a subtle musical undercurrent of energy and momentum for the hour and discourages chit-chat in the audience. We are currently working on a way to incorporate the musical component on Zoom because the platform only allows for one audio source. One of the things we’ve been challenged with during COVID-19 is translating the incredible energy from our live weekly meetings. I design the meetings to be entertaining, fast-paced and highly motivational to keep our agents energized for the next six days. Moving to a virtual format has meant we needed to up our game, create more visually appealing slides— and more of them—to keep people’s attention on the screen. One thing we noticed is that it was harder to keep people focused on their computer screen for a full hour. Studies show that it’s harder to digest material on a screen, so we shortened the meetings to 45 minutes to avoid screen fatigue. So, our presenters need to be tight and succinct, which has required us all to up our communication skills. Another adjustment has been the audience participation factor. In real life, it’s easy to catch someone’s eye in the audience or invite them

to the front to be acknowledged—breaking the wall between the actors and the audience. During virtual meetings, we had to experiment with ways to create connections between the presenters and the audience. We always start our meetings with an interactive game or quiz in which participants can annotate on the screen or type in the chat. We also encourage questions and comments throughout the meeting. A QUALITY PRODUCTION We’ve been using Zoom for sales meetings for a few years now, letting agents attend in person or virtually. Because our agents were already comfortable and familiar with the platform, we didn’t have a technology curve to get over once we switched to 100% Zoom meetings during COVID-19. Pre-COVID-19, we had about a 50% participation rate for sales meetings, but during the pandemic, we saw participation increase to 75%. Quality content that both educates and entertains has been a mainstay of our sales meetings, which is why we have a high participation rate both in-person and virtually. Part of the increase we saw for the virtual meetings can be attributed to the fact that people didn’t have conflicts because they weren’t having in-person meetings. In addition, the convenience of logging into a meeting from home was a key factor. And probably just as significant was that the virtual meeting provided a much-needed place for our team to see each other and connect. We are a social bunch! While it may seem like a lot of work to produce a high-quality show every week, note that what you put in is what you get out. We invest in our agents and we always have, which continues to be a formula for success. We may not get an Emmy or Tony for our work, but the reviews have been excellent! Anna Marie Ellison is the managing partner for ERA King Real Estate in Anniston, Alabama. This article reprinted with the permission of Real Trends Inc. Copyright 2020.

Building a New Model for Virtual Agents With time during the stay-at-home orders, Jim D’Amico of CENTURY 21 Northeast decided to work on a new model for compensating virtual agents. Here’s what he learned

BY TRACEY C. VELT Real Trends Publisher

In April 2020, Jim D’Amico, president of CENTURY 21 Northeast in Massachusetts, finally had a little time to “sway from our traditional roots,” he says. “We decided to develop a full-on model of compensation that is designed to attract agents that don’t need as much support as our in-house agent. We wanted to offer a virtual compensation model with built-in revenue-sharing that would give agents more support than they would get in a virtual or capped model,” he says. Four months and about 40 or so versions later, D’Amico says he now has a model that is extremely competitive. “We began with let’s incorporate traditional services into a capped model and, at the same time, the brokerage would eat the franchise fee.” It’s been a recruiting success since the program launched September 25. “We only laid it out to about 20 agents, and 12 agents (new to the company) signed up for the program,” he says. The model hasn’t been as successful inhouse. “We showed it to about 250 to 350 or our current agents and no one was interested. I found that interesting because I assumed that at least 50 agents would want to be part of it,

so it tells me our traditional compensation is effective and agents are happy.” However, he sees it as a draw for agents new to CENTURY 21 Northeast. “Coming from the outside, most people are leaning toward a virtual model. That’s twofold. In our area, the culture outside of C21 is a 100% model—low services, pay for what you want to use and as low a cap as you can. That’s the culture of our competitors,” he says. He says his model is different, more of a hybrid. “We can still offer agents our tools such as Buyside, premier Dotloop, marketing, but they’re not taking up space. Because of that, we can scale the company faster without opening up new offices. If I have 50 agents in an office and 45 are on our virtual compensation model, I can consolidate that office.” He notes that the company has plans to venture into Connecticut. “If we can get in there and not have a lot of offices, that will be huge for us,” says D’Amico, who was named a 2020 REAL Trends Game Changer based on company growth between 2014-2018. “We can offer support because economies of scale are in our favor. Most of our tech accounts are enterprise accounts, so we’re able to cost leverage our products. There will be

some services that a virtual agent won’t get, such as email. They’ll pay a $99 monthly fee, and the cap is in line with the traditional cap that you’ll see from numerous competitors, maybe a smidge higher. But, we’re offering five times the amount of free tools, tech, training and services,” he says. Right now, he says, he’ll run it in parallel to what the brokerage does traditionally. “It’s its own branch. Once we get to a certain number of agents, we’ll have a new management force in place for it.” With the market booming, he believes that many of his current agents just don’t have the time to research whether or not the option makes sense to them. “We assume that some agents will sign on once they slow down and get a look at the economics of it,” says D’Amico. “At the end of the day, we’re having fun, and we love that we have something new for people to consider when joining our firm.” Are you building new compensation models for virtual agents? Have an innovative product or service you’re offering your agents? REAL Trends wants to know about it. Email tvelt@ realtrends.com. This article reprinted with the permission of Real Trends Inc. Copyright 2020. BAKERSFIELD REALTOR® MAGAZINE

There’s a lot going on in the world, and it all impacts real estate in major ways

Technology, Change & Inclusion

BY TRACEY C. VELT

PUBLISHER, REAL TRENDS

Since travel isn’t much of an option right now, I’ve taken the virtual route and joined real estate leaders during their annual sales meetings and conferences. The pandemic has profoundly changed almost every aspect of our lives. 1. Speed of technology. The pandemic has “collapsed the speed of disruption,” says Gary Keller, founder of Keller Williams Realty. Literally overnight, agents migrated to a digital world. “What was going to take another five or six years to organically get adoption has literally happened overnight,” says Keller. Guy Gal, founder of SIDE Real Estate also mentioned that. “We live in a world that was changing before shelterin-place [orders were called]. While the pandemic was the cause of the change, it accelerated it,” he says.

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2. Participating in change. The adoption of virtual technology tools is just one change we’re seeing in this market. Due to crime, civil unrest and a lack of outdoor space, people are leaving the cities and seeking more suburban and rural areas. Many people who had plans to move upon retirement are finding that they can move now due to work-from-home flexibility. “Use the change to your advantage to put yourself in a position to be successful,” says Gal. There is opportunity out there, you just have to find it. 3. Diversity and Inclusion. Coldwell Banker CEO Ryan Gorman’s session at Coldwell Banker’s Gen Blue General Session addressed fair housing, diversity and inclusion. “Education is a foundation, but it’s certainly not the end. Even if we had the

highest level of financial literacy for every American, we wouldn’t necessarily have the homeownership rate that we seek because we need action behind that,” says Gorman. “The single best way to positively impact homeownership in any community is to ensure that members of that community have access to people who partner with them and help them carve a path toward homeownership. Real estate agents are the best possible partner.” So much is happening in the world right now, it can be easy to keep the status quo. However, now is not the time to do that. Seek out opportunities, fine-tune recruiting strategies, streamline your financials and prepare your company to withstand any trend, challenge or change that comes your way. This article reprinted with the permission of Real Trends Inc. Copyright 2020.

update

Are you losing connection with your associates?

The Need for Human Touch

BY LARRY KENDALL

AUTHOR OF “NINJA SELLING”

When the pandemic required lockdown in March, many leaders turned to Zoom (or similar digital platforms) to connect and communicate with their associates. This was an important and critical move as many associates were afraid and confused. Electronic meetings brought them together and attendance soared. Many leaders commented, “Zoom meetings may be the new abnormal going forward. We are getting a much higher attendance rate with virtual meetings. We may not return to live meetings.” Fast forward four months and some leaders report attendance dropping to as low as 25%—and that assumes their associates are really there. How do you know when their video is turned off? As one leader said, “Zoom worked early on, but now I feel our people are Zoomed out. We are losing connection, communication and our culture.” THE NEED FOR HUMAN CONNECTION Psychologists report that over 40% of Americans are suffering from loneliness — a severe lack of human connection. Zoom is not a substitute. A Fortune magazine article (Humans Are Underrated) says that an increase in electronic communication

results in a reduction of empathy, which is the ability to understand and appreciate the feelings of another human. Is there a need for a return to live meetings? Psychologists say, “Yes.” Will associates feel safe meeting in groups again? An indication is our live Ninja classes are selling out in 90 minutes compared to the usual two weeks. People are craving human connection, even if they have to wear a mask and stay six feet apart. As one student in a recent class said to me, “I may still be afraid of dying, but I’m no longer afraid to live!”

THE ROLE OF LEADERSHIP AND CONNECTION A study in Forbes magazine asked 4,000 leaders what areas they were focusing on for personal improvement. A better understanding of finance and technology were the top two areas reported. The study then asked the associates working for those leaders, what areas did they feel their leaders needed to concentrate on for improvement. Here’s their response: 1. Leadership. “Where are you taking me?” 2. Emotional Intelligence. “How are you treating me?” Associates want to feel: a. Valued. “I notice you matter.” b. Inspired. “Here’s where we are going

together.” c. Empowered. “I trust you to help us get there.” For an excellent leadership video on this, watch Craig Groeschel’s keynote speech at the Global Leadership Summit, go to https:// www.youtube.com/watch?v=b5RlVhaTDA&feature=youtu.be) Leadership is a live contact sport. Connection, communication and culture building happen best face-to-face. Zoom is a way to communicate information but a poor substitute for human connection and culture building. Leaders need to do more. Recognizing the limits of his electronic meetings, a CEO told me how he started scheduling live breakfasts or lunches twice a week with seven associates. His commitment to meaningful, personal, face-to-face connection with 56 of his associates every month (over 600 each year) has yielded amazing results. “I saw a huge shift in our entire organization the very first month I started doing it. Word spread that I care and that I notice how much our people matter. Our culture supercharged immediately. This is the single best use of my time. I now have our managers doing it. It’s a process we will install forever. Live eats Zoom for lunch!” This article reprinted with the permission of Real Trends Inc. Copyright 2020.

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LOCAL NUMBERS YOU NEED TO KNOW

2019 Compared to 2020 by MLS Area

state of the

HOUSING MARKET 2020 YEAR-OVER-YEAR STATS

INDUSTRY STATISTICS

A re a

Dollar Value

# So l d

Av e r a g e So l d Pr i c e *

% o f L i st Pr i c e *

D O M*

2020

2019

2020

2019

2020

2019

2020

2019

2020

2019

213

454

$45,088,048

$95,716,150

$220,910

$217,167

98.23

98.03

132

286

$18,138,049

$36,816,052

$148,111

$136,394

97.93

97.94

225

463

$50,097,406

$97,443,320

$231,120

$216,723

98.55

98.95

$13,534,600

$24,854,050

$396,929

$411,318

94.19

95.55

204

474

$40,087,360

$87,828,486

$199,407

$186,866

98.71

98.06

485

1027

$110,802,088

$218,480,993

$239,100

$226,938

99.24

98.88

194

486

$52,429,233

$121,915,472

$286,894

$269,238

99.37

99.07

162

$28,358,615

$53,999,765

$361,105

$342,263

98.43

98.39

228

$16,372,111

$39,117,294

$183,321

$174,921

98.25

98.14

147

294

$34,502,730

$64,734,548

$233,597

$218,172

99.15

98.94

$1,824,000

$5,916,250

$202,667

$226,306

102.37

97.69

454

977

$86,603,029

$179,494,422

$203,400

$194,334

98.78

98.84

14233

2949

$382,694,422

$752,187,607

$278,821

$267,167

99.62

99.40

676

1489

$248,896,183

$526,947,829

$372,871

$358,210

99.00

98.71

$21,187,853

$33,168,507

$433,122

$431,514

3.91

6.00

199

422

$65,246,927

$132,829,972

$327,874

$315,507

99.24

99.34

990

2057

$347,295,074

$691,549,684

$351,429

$337,260

99.66

99.26

450

910

$191,986,883

$375,620,560

$432,159

$418,643

99.30

99.08

$10,461,900

$21,579,490

$567,883

$520,475

98.24

97.97

$12,395,012

$22,694,564

$344,306

$330,271

99.20

98.98

224

448

$78,844,789

$148,795,788

$361,055

$340,270

98.26

98.12

$7,104,599

$10,605,024

$221,577

$199,989

221

226

96.84

95.12

$6,837,499

$11,775,749

$177,628

$188,893

94.74

95.10

140

$27,281,577

$41,260,692

$316,255

$297,166

98.83

98.85

$2,950,000

$6,033,075

$737,500

$708,571

97.14

97.43

$8,305,900

$13,794,300

$340,329

$326,765

100

95.86

95.04

111

$8,813,161

$19,785,341

$191,590

$178,246

96.87

96.29

$3,414,000

$4,793,500

$595,800

$484,278

96.91

97.45

$391,000

$848,500

$133,000

$144,700

98.56

99.96

$6,634,250

$11,373,150

$240,218

$242,326

94.43

96.29

204

415

$48,383,474

$96,054,781

$238,314

$231,853

98.94

98.67

175

386

$25,529,045

$52,291,457

$149,667

$137,559

97.70

97.18

154

356

$34,110,349

$77,359,924

$222,572

$218,212

98.41

97.82

188

395

$65,172,098

$135,473,759

$354,978

$346,403

97.90

97.16

* Figures from Single Family Homes Only. Statistics were run on December 1, 2020 BAKERSFIELD REALTOR® MAGAZINE

The numbers tell the story Active, Pending and Sold - All Areas

OCTOBER October All Areas Active

October Contingent Active Pending Contingent Sold Pending Total Volume Closed Sold Sales Price * Median Total Volume Average DOM Closed * Median Sales Price *

2020

2019

865 2020 243 865 1,362

1,464 2019 188 1,464 1,129

% Year over Year Change % Year over Year -40.9% Change 29.3% -40.9% 20.6% 29.3% 8.4%

243 188 786 725 1,362 1,129 $239,825,437 $191,470,440 786 725 $295,000 $255,000

Average DOM *

25.3% -25.0% 15.7% -25.0%

2019

% Year over Year Change

Total Volume Average DOM Closed * Median Sales Price *

2019

824 2020 227 824 1,409

1,412 2019 174 1,412 1,050

% Year over Year Change % Year over Year -41.6% Change 30.5% -41.6% 34.2% 30.5% 8.3%

227 174 653 603 1,409 1,050 $200,655,493 $159,243,686 653 603 $291,000 $255,000

34.2% 26.0% 8.3% 14.1%

$200,655,493 $159,243,686 23 34 $291,000 $255,000

Median Sales Price *

2020

Average DOM *

26.0% -32.4% 14.1%

-32.4%

2020

2019

% Year over Year Change

Bakersfield

OctoberOnly Bakersfield October Total Volume Closed Sold Sales Price * Median

November Contingent Active Pending

Sold Sales Price * Median Total Volume Average DOM Closed *

Bakersfield Only Bakersfield

Sold

Active

Contingent Sold Pending Total Volume Closed

20.6% 25.3% 8.4% 15.7%

$239,825,437 $191,470,440 24 32 $295,000 $255,000

NOVEMBER November All Areas

2020

% Year over Year 665 600 10.8% 2020 2019 Change $204,461,896 $160,326,241 27.5% 665 600 10.8% $295,975 $262,250 12.9% $204,461,896 $160,326,241 27.5% 21 31 -32.3%

Quarterly Average DOM *

* Single Family Only

New Listings

* Single Family Only

Contingent Pending Sold

Total Volume Closed Median Sales Price * Average DOM * Average Sale Price/SqFt *

$295,975

$262,250

12.9%

1s t Qt r 2020 2,431

-32.3%

1s t Qt r 2019 2,860

November Sold

November Total Volume Closed Sold Sales Price * Median Total Volume Average DOM Closed * Median Sales Price *

% Year over Year 562 508 10.6% 2020 2019 Change $173,954,807 $135,914,437 28.0% 562 508 10.6% $295,000 $260,000 13.5% $173,954,807 $135,914,437 28.0% 20 30 -33.3% $295,000 20

Average DOM *

2n d Qt r 2020 1,845

$260,000 30

2n d Qt r 2019

3rd Qt r 2020

3rd Qt r 2019

2,436

3,032

3,036

506

646

683

487

1,090

565

1,900

2,049

1,711

1,849

2,584

2,382

1,662

1,640

1,493

1,852

2,386

2,313

$451,074,580

$409,970,487

$416,269,141

$489,736,337

$702,181,707

$608,157,134

$255,000

$240,000

$271,000

$255,000

$280,000

$254,900

$152.37

$142.56

$157.01

$148.55

$164.18

$149.99

* Figures from Single Family Homes Only. Statistics were run on December 1, 2020

4t h Qt r 2020

13.5% -33.3% 4t h Qt r 2019

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A l l 20

Continued from page 7 of the votes. The Bakersfield Association of REALTORS® also endorsed Patty Gray for Ward 6; Gray is a businesswoman and owner of Dream Makers Kitchen Cabinets. Gray was one of 4 candidates in the Ward 6 race, and won the seat with 45% of the vote. Both took the time to answer our candidate questionnaire and virtually meet with our Local Candidate Review Committee, who thoroughly vetted each candidate. We look forward to working with both Eric Arias and Patty Gray on City matters. There was also a significant amount of change on local school boards. School board races in this election were very competitive and received record numbers of votes.

I believe this is due to peoples’ strong opinions on the schools re-opening under new COVID guidelines. There looks to be a change on the Kern High School District Board with preliminary numbers indicating challenger David Manriquez beating incumbent Joey O’Connell in Area 3. If this holds true, there will be 2 Hispanic Board Members on the KHSD board for the first time in the District’s history. Incumbent Jeff Flores looks to be the clear winner in Area 2. The Kern High School District is the largest high school district in the State of California. The state’s largest elementary school district, Bakersfield City School District, will see 2 new Trustees (Chris Cruz-Boone and Shannon Zimmerman) and 2 incumbents

were re-elected, Lillian Tafoya and Laura Guerrero-Salgado. And the Panama Buena Vista School District will also have 2 new Trustees, Brian Easter and Paula Van Auken, as well as returning Trustee J.P. Lake. While the Bakersfield Association of REALTORS® works with our school boards, we do not endorse candidates for school board races. Ultimately, no matter the final results, we can all agree that we are happy to see the political ads stop for the time being. Every local candidate endorsed by the Bakersfield Association of REALTORS® won; and every ballot position taken by the California Association of REALTORS® saw a victory, either in the passage or the defeat of the proposition.

Continued from page 25

Survival of the fittest

the realistic timeline and have the savings or

They sell real estate for a while between one job and the next. We know that a 100% commission job can be a hard and demanding way to earn a living.

While agents’ production rises sharply

outside income to support themselves during

through years three and four, they don’t

this transition period.

In for 15 years, in for good Something interesting happens when real estate professionals spend 15 years in the business. At that point (Region 2), the rate of loss drops dramatically. Once an agent has celebrated their 15th year in real estate a magic number has passed—they chose real estate as a career and are likely to retire in real estate.

Beware of the agent selling less than $1 million We also looked at what factors made an agent likely to leave real estate. There’s no ground-breaking insight here: Dropping production is by far the strongest predictor. Agents who left the business posted a much lower median annual production than those who stayed in business ($434,500 vs $1,646,500). Fully 35% of agents in our nationwide sample who closed less than $1 million in the year ending Aug. 31, 2019, recorded no volume whatsoever in the following 12 months. That percentage rises to 42% for agents closing less than $500,000 in volume.

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reach a steady-state level at that point.

Expect steady attrition of agents from

When we look at the average productivity

the business. Nearly 20% of all real estate

of agents in Phoenix and Wisconsin over

licensees will exit the business every year.

time, a fascinating trend appears. In both

Newer agents and low-producing agents will

states, agent productivity, measured in closed

leave at higher rates. Factor this into your

volume, continued to increase for at least

recruiting and retention planning.

the first eight years. This is the same time

Long-tenured agents (those with over

frame where agents are exiting the business

15 years in real estate) have an established

at a steady and relatively high rate. Add to

track record and are much less likely to

the mix the increased likelihood for low

leave. Having a core of such agents in the

producers to leave the business, and the

brokerage will build year-to-year stability.

picture is complete. We are seeing selection

Any agent producing less than $1 million

bias in action: The agents who stay in

in a year is at increased risk of leaving. If

business year after year tend to favor those of

this agent has what it takes to succeed in the

higher production. The lower producers are

business, don’t delay in intervening to help

winnowed out leaving a group who has more

turn things around.

higher producers than they did in the prior

Without the addition of new agent

year. In this way, the average production

recruits, your agent pool will steadily grow

increases over time.

smaller with fewer, more productive agents.

What does this mean for brokerage management?

As a rule of thumb, count on recruiting 15%

New agents are going to take a while to get paid. How long? The statistics suggest that the first dollars won’t come in for three to four months, and it could take a couple of years to make a steady income. Brokers should make sure new agents are aware of

to 20% of your total head-count annually to keep your numbers level. These recruits can be a mix of new people to the business and experienced agents from other brokerages. Rob Keefe is president of Relitix Data Science, a real estate brokerage data intelligence company.

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