Realtor Magazine December 2021 by Carol Duran

DECEMBER 2021

Memories celebrated for a successful year in 2021

INSIDE

Golf Tournament

Anna Albiar Leadership Summit

REALT OR S

GROW IN G

S T RO N G E R

Technology C O M M U N IT Y

John 3:16

2021 OFFICERS

President Scott Knoeb Frontier Real Estate Services, Inc. President-Elect Anna Albiar Coldwell Banker Preferred, RLT Vice President Michelle Valverde MV & Associates Secretary/Treasurer Wayland Louie RE/MAX Golden Empire Immediate Past President Ronda Newport Watson Realty Chief Executive Officer Derek Sprague

2021 Directors Saul Bernal Miramar International

Michele Cooper Karpe Real Estate Center Scott Hanson The Hanson Group Martha Johnson Watson Realty Roger Magana Golden Valley Real Estate Group Bill Mell Bill Mell & Associates Glenn Porter RE/MAX Golden Empire Brian Tuttle Coldwell Banker Preferred, RLT

ON THE COVER

REALTORS® continue to face industry challenges during pandemic but remain victorious

CONTENTS

Bakersfield REALTOR® Magazine

INCOMING PRESIDENT ANNA ALBIAR NAR Leadership Summit in Chicago begins Anna’s journey into 2022 leadership

QUICK INFORMATION ON PROPOSITION 19 Laura Avila, Assistant Assessor explains the changes in property tax benefits for families, seniors, and more.

ELECTRONIC SIGNATURES Don’t overlook your fiduciary duty as REALTORS®

KERN LEADERS ACADEMY Two REALTORS® participated in extensive education and training program

CHARITABLE FOUNDATION GOLF TOURNAMENT SNAPSHOTS

IN THE PURSUIT OF EDUCATION Scholarship recipients share essays

BE A TOP NEGOTIATOR while working remotely

Executive Editor - Derek Sprague, CEO Managing Editor - Carol Duran Statistics - Jamey Lyster Contributing Articles Editor - Tiffany Waldowski 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: Bakersfield Realtors Twitter: BAKrealtors Instagram: bakersfield_realtors

PRESIDENT’S MESSAGE

President reminisces on leadership journey

honestly can not believe this year is coming to an end. My leadership journey started 14 years ago at Hometown Buffet when Chairman Warren Ash appointed me to Thursday Brew. Warren taught me the importance of the Association and what it means to give back. For the next 14 years, leaders from all over the country would become part of my leadership journey and help develop who I am as a leader. I personally want to say thank you to Linda Jay, Sheri Anthes, Derek Sprague, Jeanne Radsick, Michele Cooper, Bill Redmond, Athena Collup, Ronda Newport, and David Knoeb. All of you inspired me to be the best REALTOR®, leader, and person I could be. I cannot thank you enough for encouraging me to become the President I am today. I would also like to thank all the Board of Directors, Chairs, Vice-Chairs, committee members, and the Executive team. If it was not for each of you stepping up to serve, our Association would not be one of the top associations in the country! This year went by in a flash; however, we have made many accomplishments. We

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worked together to get our Association up and running for all our members. Theresa Olson and the Executive committee could secure a $50,000 grant from the Housing Authority Fund from the California Association of REALTORS® This grant allowed the Bakersfield Association of REALTORS® to team up with the Housing Authority of Kern County to offer $2,000 down payment assistance. GEMLS worked hard this year to update the MLS and continue bringing the most up-to-date technology to our members. As an association, we analyzed and improved our very own Diversity committee. I firmly believe these changes to our Diversity committee will have dividends for years to come. On the state level, we came together to pass Proposition 19, which allows homeowners over the age of 55 to move their tax base anywhere in the state. Last but certainly not least, we were able to end P.E.A.D’s for all transactions! As 2021 comes to an end, 2022 is just starting. Future President Anna Albiar and her team have already put together an ambitious year. We are creating a new Bakersfield

Association of REALTORS® website, a unique MLS Dashboard experience, new member applications, and many exciting new programs. If you are not already involved with the Board of REALTORS®, next year will be the year to join. In closing, I would like to thank every member of our outstanding Association. With your confidence in me, I was allowed to serve the National, State, and Local Associations of REALTORS®. I was able to lobby for Real Estate in Bakersfield, Sacramento, and Washington DC. I will never forget the leaders, colleagues, and politicians that I have met throughout the years. I never thought joining a committee at Hometown Buffet 14 years ago would lead me on a spectacular leadership journey to President of the Bakersfield Association of REALTORS®. However, I can honestly say I would not trade it for anything. It indeed has been an honor and a privilege to be your 2021 President. I have always tried to say yes to opportunities throughout my life, and they have always taken me to a level I never thought I could achieve! – Scott Knoeb

CEO’S MESSAGE

Let’s celebrate the success of the year!

You are not here merely to make a living. You are here in order to enable the world to live more amply, with greater vision, with a finer spirit of hope and achievement. You are here to enrich the world, and you impoverish yourself if you forget the errand.”

he holidays are a time for reflection, and the first two years of this decade have given us plenty to contemplate. While virus variants and vaccines got all the headline attention, REALTORS® and Affiliate colleagues have continued working hard and adapting to a scorching hot housing market. This year saw the rise and fall of the PEAD form, the reintroduction of the office instead of the house as a place of work, and a soon-to-bereleased brand new Residential Purchase Agreement. Whatever the challenge was, REALTORS® have faced it head-on to make 2021 a successful year. While REALTORS® have been able to continue making a living, the work in the community is especially extraordinary. The Bakersfield Association of REALTORS® will

– President Woodrow Wilson recognize some of this work when it awards

committees and set the course for a new

its first-ever REALTOR® Good Neighbor

year. Her vision of growing and inspiring

Award at the 2022 Inaugural on January

leaders is especially important. It is

28, 2022, at Bakersfield Marriott at the

incumbent on everyone in this industry to

Convention Center. Tickets are on sale now

enrich the world and not forget the errand

online at 2022inaugural.eventbrite.com, and

as President Wilson suggested. I hope you

I hope you consider joining us to celebrate

consider joining President Albiar by serving

some wonderful achievements.

on a committee or participating in some

The Inaugural is also an event where we turn the page and envision a new year.

upcoming planned events. As we round out this year, make sure to

2021 President Scott Knoeb has successfully

take the time to embrace friends and family

navigated the Association through a “hybrid”

during the holidays. This industry can be

world of online and offline activities. He

challenging for a loved one when a client’s

stepped up to guide the Association through

best interest means working on nights and

uncertain times, and I am sincerely grateful

weekends. Celebrate the successes of the year,

for his leadership this past year.

appreciate everyone within your circle, and

2022 President Anna Albiar has already begun laying the groundwork to assemble

make sure your shoes are tied tight because 2022 is around the corner. BAKERSFIELD REALTOR® MAGAZINE

Incoming President,

Anna Albiar gears up for 2022

NAR Leadership Summit in Chicago begins leadership journey

EADERSHIP comes in so many styles; what’s your style? Without the OUTSTANDING leadership from REALTORS that we have had over the past couple of years at the city, state, and national levels, it would have made the past two years during a worldwide health pandemic chaotic, to say the least. Fortunately, our BaoR members were privileged to experience firsthand how GREAT LEADERS can work together like the smoothest sales transaction you’ve ever been lucky enough to be a part of. Ronda Newport, our 2020 BAoR President, along with Kim Huckaby, our past CEO, and Jeanne Radsick Bakersfield’s own 2020 C.A.R. President they did not miss a beat

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when we went into a statewide “stay-athome” order. Our leaders from the statewide and citywide levels huddled together with their respective CEO’s, Association

Staff, Executive team members, Board of Directors, Committee chairs, and vice chairs to keep REALTORS informed on almost a daily basis at first on what to expect next. REALTORS adapted quickly to a new way of doing business and were able to find a way around the obstacles that lay ahead, embraced all of the changes that had to be made, and worked together to keep REALTORS and clients safe. After the dust settled and zoom became our norm, our Association’s committees soon realized that conducting meetings and, most importantly, holding forums and educational classes had to keep moving forward via zoom, and they did it so well. Then with 2021 came more uncertainty with the state of the unrelenting

PHOTO: CHICAGO REALTOR.COM

COVID-19 health pandemic that was not letting up for the first part of the year. As 2021 began to unfold, the Association faced more change bringing in our new Bakersfield Association of REALTORS CEO, Derek Sprague. Leadership’s unwavering dedication to keeping our members constantly updated, encouraged, and motivated shined through as our 2021 President Scott Knoeb so appropriately shared his theme for 2021, “LEADERS LIGHT THE WAY,” and conveyed that our Association remained dedicated to its members. In April, Scott’s Call to Action reminds the members of the importance of getting involved with their REALTOR Association and how they could

volunteer for as little as an hour a day, week, or month and how one member volunteer could make such a huge impact on our Association. As your President-Elect, I too would like to urge you to consider volunteering on a committee next year or applying for a position on the Board of Directors. I would love to have a conversation with you and share the volunteer opportunities available at the Association. We have committees geared to Educate, Advocate, Serve, Engage, and Lead. My theme for 2022 is REALTORS LEAD TOGETHER, and I am so excited to spend the next few months collaborating with my leadership team and working

to further the Association’s mission and goals. Vince Lombardy once said about teamwork, “individual commitment to a group effort that’s what makes teamwork. The achievements of an organization are the results of the combined effort of each individual.” Through mutual respect, trust, accountability, and idea-sharing between each individual, we can realize the Association’s goals and vision. I want to personally invite you to call me and share your LEADERSHIP style with me as an Association member. As I said at the beginning, leadership comes in many styles, and whatever your style is, we welcome it!

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2016

ANNA ALBIAR

2 0 2 1

L E A D E R S H I P

S U M M I T

PA S O

RO B L E S

Bidding wars – the scourge of buyers – slowed in August

Bidding-war rate in markets Redfin operates in dropped below August 2020 level The bidding wars that put smiles on the faces of sellers and simultaneously drove buyers to rip their hair out weren’t as frequent in August, according to the latest report from brokerage Redfin. In August, 58.8% of offers written by Redfin agents faced a bidding war, down from the peak in April of 74.3%, and below the August 2020 bidding war rate of 59.4%. But buyers shouldn’t get too excited. The report attributes this decrease to the normal seasonal slowdown, causing the shortage of inventory to slow as well. Another indicator of a slowing market cited by Redfin is the percentage of homes that sold above list price. During the fourweek period that ended Sept. 5, it dropped to 50% from a peak of 55% in July. Despite these obvious signs of a slowing market, Redfin states that it is in line with the typical seasonal decline. “Sellers are still pricing their homes very

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high, but a lot of buyers have had enough and are no longer willing to pay the huge premiums they were six months ago. Instead of 25 to 30 offers on turnkey homes, we’re now seeing five to seven,” Nicole Dege, a Redfin real estate agent from Orlando said in a statement. Raleigh, NC had the highest biddingwar rate of the 48 U.S. metros listed in the report, with 86.7% of offers written by Redfin agents facing competition in August. San Francisco/San Jose at 70.7%, Tucson, Arizona at 70.5%, Cincinnati at 70.4% and Salt Lake City at 68.1% rounded out the top five toughest markets for homebuyers. On the filp side, Charleston, South Carolina; Richmond, Virginia; Milwaukee, Wisconsin; Sarasota, Florida and Oklahoma City rounded out the five most favorable cities for buyers, with bidding war rates of 43.5%, 42.9%, 42.9%, 41.7% and 35.7%, respectively.

“Sellers remain in control, but the next month or two will be very telling,” Stacey Delgado, a Redfin agent in Raleigh said. In 2018-2019, total housing inventory was in the range between 1.52 million and 1.92 million, and that level of inventory helped to drive real home-price growth in 2019 into negative territory briefly. Existing home sales during those years stayed in the monthly sale range of 4.98 million to 5.61 million homes, according to the National Association of Realtors. Then the pandemic hit, and after eight months of consecutive gains spanning 2020 and 2021, the consequences of low home inventory finally caught up with the housing market in February 2021. An earlier Redfin study found that all-cash buyers improved their chances of winning a bidding war by 290%. This article reprinted with the permission of Real Trends Inc. Copyright 2021.

Quick Information

on Proposition 19 Home Protection for Seniors,

Severely Disabled, Families, and Victims of Wildfire or Natural Disasters

persons over 55 or severely and permanently disabled persons a one-time transfer of the taxable value of their existing home to a new replacement home, so long as the market value of the new home is equal to or less than the existing home’s market value and located in Kern County or one of ten participating counties in California under Prop. 90.

Contribution by

Laura Avila

Assistant Assessor | avilal@kerncounty.com

In November 2020, California voters passed Proposition 19, which changed property tax benefits for families, seniors, severely disabled persons, and victims of natural disasters. These changes became effective in February and April 2021, depending on the component of the measure.

Parent/Child Transfers and Grandparent/Grandchild Transfers Proposition 58/193 allowed transfers between parents/children and grandparents/ grandchildren to be excluded from reassessment under certain circumstances. Some of the major components of these propositions are as follows: n Transfers of primary residences (no value limit) n Transfers of the first $1 million of real property other than the primary residences. n Transfers may be the result of a sale, gift, or inheritance. A transfer via a trust also qualifies for this exclusion. Proposition 19 (effective February 16, 2021) changed some of the requirements for these types of transfers. Some of the main changes are as follows: n The property must be the principal residence of the transferor prior to the transfer. n The property must become the principal residence of the transferee within one year

Laura Avila

Assistant Assessor of the transfer, with a valid homeowner’s exclusion or disabled veterans’ exclusion filed on the property. n Only the principal residence will qualify; other property such as income-producing property will no longer qualify for the exclusion. n There is now a value limitation on the primary residence of $1 million-plus the assessed value.

Transfer of Assessment to a Replacement Property (55 and Older and Disabled) Propositions 60/90 and 110 allowed

Proposition 19 (effective April 1, 2021) modified the previous provisions and now allows eligible homeowners to transfer the taxable value of their existing primary residence to a new replacement primary residence. The replacement residence can be of any value and anywhere within the state. The exclusion can be filed up to three times by a property owner over their lifetime. Proposition 19 created a large change to how Assessor’s processes these types of property transfers. The California Assessors’ Association (CAA) and the State Board of Equalization (BOE) are working with the California Association of Realtors (CAR) and Legislators to make sure the intent of the new law and existing property tax laws align. SB 539 was signed by the Governor on September 30, 2021, which did help answer and clear up some of the questions CAA and the BOE had. However, as Assessor’s across the state fully implement Prop. 19, additional questions may arise. For the most up-to-date information as changes occur, please visit the BOE at https://www.boe.ca.gov/prop19/. BAKERSFIELD REALTOR® MAGAZINE

Electronic Signatures are here to stay

Don’t overlook your fiduciary duty to your client

contribution by

David Knoeb & Kevin Palla

Bakersfield Association of REALTORS® Ombudsmen

David Knoeb 12

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Kevin Palla

Electronic signature software systems are a great tool and convenience for people to execute documents without being together in person. With just a couple clicks of your keyboard or phone, you can sign almost anything, including many real estate documents. But here is a word of warning! Don’t let this convenience take away from your fiduciary duty to your clients to explain what you are asking your clients to sign.

n In our time as Ombudsmen for the Bakersfield Association of REALTORS®, we have come across various issues to contend with. What seems to be most prevalent are clients not

thoroughly understanding line items on contracts, addendums, or other forms that are sent to clients for approval via an electronic signature. Because they’re not signed in person, there is a lack of review and explanation of what clients are asked to sign. This leaves the door open to misunderstandings, and in many cases, a dispute with a call to the Ombudsman! In Real Estate, the phrase “never negotiate off paper!”, or better yet, “get it in writing!”, indeed are rules to live by! Whatever it is, buyer and seller, or agent and agent are agreeing to, it is memorialized in writing with a signature of all parties involved so that if there is ever a dispute as to what is said or what is intended, the fully executed document will be the binding article. So often, our office is called in to try to assist in settling a disagreement that could’ve been avoided. If those involved would have taken the time to put it in writing, review what it means that they’re signing, and memorialize it so that all parties are “on the same page” literally and figuratively, a disagreement could have been avoided all together! Let’s look at some of the essential documents and C.A.R. forms that we commonly use and review. What are some of the most important parts of these agreements that need to be explained in detail to your clients? 1. Listing Agreement Take the time to explain to your client

that this document is an employment contract between your Brokerage firm, yourself, and the seller. Be sure the seller understands the concepts and language used in item 3A1. The Broker is entitled to the commission agreed upon, whether the buyer completes escrow or was prevented from doing so by the seller. 2. Purchase Agreement and Joint Escrow Instructions Make sure your client understands all aspects of these documents. It is the roadmap for the escrow officer and the binding terms that all parties agreed to adhere to. When representing a buyer or seller, make sure they understand the liquidated damages clause and cancellation effects. Item 14. of the RPA summarizes periods, removal of contingencies, and cancellation rights. This item is one of the most crucial line items to understand. Item 21. Remedies for Buyer and Breach of Contract deals with Liquidated damages and rights to forfeited deposits if buyer defaults.

3. Counteroffer and addendum Pay close attention to detail in creating a counteroffer. Whatever term or condition is not countered out of the original offer will still be in play and become part of your binding agreement. An addendum is only valid if all parties mutually execute it. It is a proposal until all parties validate it. Then it becomes part of the agreement.

4. Request for repairs When representing a buyer, it is understood that it is a request for repairs and not a demand. It is simply, as stated, a request and becomes a negotiation between buyer and seller. If the seller does not agree to the request as written, the seller can propose an alternative to the Buyers request or decline it, at which time the buyer can create a new proposal or accept the seller’s. If additional time and discovery occur, other repairs are requested, fill out another form and put them in writing.

Continued on page 24

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2021 Kern Leaders Academy Graduates

REALTORS® participate in an extensive academy education and training program

he Kern Leaders Academy selects eight community leaders each year to participate in this extensive education and training program, conducted by the Kern County Taxpayers Education Fund. Educational Training is held over nine weeks, with 72 hours of instruction. The Academy teaches community leaders how to listen to constituents, with a clear understanding of how to seek endorsements, support, and reserve the right to make independent decisions. Successful graduates will feel secure knowing they have the knowledge and vision to put their services forward as a community leader and eventually, an elected public official who is capable of offering creative solutions to the challenges facing Kern County. Ronda Newport and Kevin Oliver have been selected to participate in 2021’s class.

Above: Photo of this year’s Kern Leaders Academy, Class of 2021 Ronda is also a Past President of the Women’s Council of REALTORS®. In addition, Ronda is a volunteer for the Kern County Wounded Heroes Fund, the California Federation of Republican Women, and a Real Estate Professionals Family Relief Fund director outside of the Real Estate Industry. She also enjoys being a member of the Christian Real Estate Fellowship group. Ronda is committed to providing a high standard of ethical and professional leadership to her colleagues, the industry, and the community we serve.

RONDA NEWPORT

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dollar investment business wholesaling and flipping homes in multiple states, all based in Bakersfield. Once achieving his REALTOR® license, he went on a few years later to become a broker. He is currently running multiple corporations and leads his Real Estate team at Miramar International. Coming from a law enforcement family, he loves helping the community, at-risk kids, and our men and women in uniform. Currently serving on two commissions (Kern County Civil Service Commission and Bakersfield’s Civil Service Commission). He serves on the board for PAL (Police Activities League) and is a proud member of Rotary International. Other particpant include: Eric Arias, Alex Garcia, Karina L. Moreno, Lori Pesante, Debbie Teofilo, and Jim Wheeler.

Watson Realty ERA

Ronda joined the Bakersfield Association of REALTORS® in 2008 after a lengthy, successful career with the Kern County District Attorney’s Office. Ronda currently serves as the Immediate Past President of the Bakersfield Association of REALTORS®, current President of the Bakersfield Association of REALTORS® Charitable Foundation, along with serving as a Director for the California Association of REALTORS® and National Association of REALTORS®. Since joining the association, Ronda has served on numerous committees in both member and chair positions. Ronda was awarded the Salesperson of the Year in 2018.

as the national top Issue Manager for GE Energy. After developing a passion for Real Estate & Investing, he grew a 1.2-million-

2021 Academy Topics Include:

KEVIN OLIVER

Miramar International – Riverwalk

Kevin has a background in Computer Science and has led numerous multi-million-dollar implementations for GE Consumer Finance. Receiving his master’s in project management from George Washington University, he served

Ethics, Leadership and Critical Thinking, Social Capital Theory, The View from the Dias, Homelessness, B3K Prosperity, County Demographics, Energy Production, Public, Education, Equality is not Equity, Societal Needs, Being a Community Advocate, Kern County 2031, Local Government Finance, San Joaquin Valley Issues, Kern County Poverty State Issues, Ag and Water Issues, Healthcare, Kegley Institute Fall Lecture Series, Local Government, Final Thoughts: Tying It All Together. SOURCE: ww.kernleadersacademy.org/2021-class

TUG Teaches

Technology for Real Estate

CONTRIBUTION BY AJ BHUEE, WATSON REALTY

Technology is constantly evolving, and as good REALTORS®, we evolve along with it. This year, the Technology Committee, along with guest speakers and partnerships with other committees, have made it their mission to help you stay on top of new technologies and platforms to have the cutting edge to get more business and get properties SOLD. With everything opening back up, we are proud to offer future classes via Zoom and in-person. Feb 2021 – We started the year off with a remote webinar event from Glide. Glide is a member benefit through C.A.R. designed for the modern agent. Glide empowers you to make your transactions fast, simple, and safe. Feb 2021 – Ed Charboneau joined us from C.A.R. to go through a remote training of Zipforms and a refresher of Glide. Zipforms and Glide are both member benefits available through C.A.R. Zipforms allow agents to quickly create contracts and send them out to clients for digital signature. March 2021 – Anna Albiar taught our March TUG on Zipforms Digital Ink. Digital Ink is a member benefit the allows REALTORS® to quickly and securely get contracts signed digitally. We learned how to use Digital Signatures from your laptop or iPad, and how to obtain signatures with your phone when you are out in the field. March 2021 – Continuing with the Zipform theme, AJ Bhuee taught our second March TUG on Zipforms Templates. A template is a group of forms that you will frequently use for your transactions. Zipforms Templates empower real estate professionals to complete contracts using different templates for listings, purchases, and various properties more efficiently. April 2021 – In April, guest speakers Laura

Dimick and Mackenzi Miller with Rapattoni went over the powerful Interactive Map tool to search listings and create Comparative Market Analysis reports using the MLS. April 2021 – Anna Albiar joined us again to teach us how to create a quick and thorough CMA using RPR and the MLS. RPR (REALTORS® Property Resource®) allows REALTORS® to create Comparative Market Analysis Reports quickly from your computer or when you are out in the field from your phone or iPad. May 2021 – Online Marketing Strategies – The Technology Committee had a panel event in May at which top producing agents shared how they use Online Marketing to create leads and close deals. Angel Przybylski went through how she uses the power of YouTube to find ready and approved clients to help. Kyle Lawson shared his best practices with Instagram and how he used the tool to keep in contact with clients and find new buyers or sellers to help. Chyanne Wilemon went through her strategy on using Facebook to target and market to your specific buyers and sellers.

June 2021 – In June, Kyle Lawson showed why a picture is worth a thousand words. Instagram is a powerful tool that can be used to increase your engagements with its highly visual nature and user-friendliness. Kyle shared his tips and tricks on using Instagram to gain more engagements and get his listings SOLD! June 2021 – Chyanne Wilemon is a pro at targeting her perfect client, and she showed us exactly what she does to reach potential buyers and sellers through Facebook’s Ad campaigns. She goes step-by-step on how to create the most effective Facebook Ads to generate leads. July 2021 – MLS Interactive Map Search – Jamey Lyster taught our July TUG by going through the Interactive Map on the MLS. Jamey went through full-page map search, cross-property type searching for all fields, the ability to exclude search areas, and much more. August 2021 – Continuing with the Online Marketing theme, Angel Przybylski taught us her best tips and tricks on using YouTube to generate leads that are approved and ready to buy or sell. She went through how to use playlists, branding intros, and different types of real estate videos. We uploaded most of our TUG events to the Bakersfield Association of REALTORS® Website, bakersfieldrealtor.com, and our YouTube channel. You can watch or re-watch these resources at your convenience, anytime, anywhere. October 2021 – REALTORS® Property Resource® November 2021 – Zipforms Templates – AJ Bhuee December 2021 – Trends – David Knoeb We look forward to seeing you in person or online during next year’s TUG events. BAKERSFIELD REALTOR® MAGAZINE

Spotlight on 2022

New Laws Impacting Real Estate

For a complete list and breakdown of new 2022 laws impacting real estate. Senate Bill 9: Effective January 1, 2022. Housing: Duplexes and Lot Splits Permitted in Single-Family Zoning Requires ministerial approval of a housing development of no more than two units in a single-family zone and the subdivision of a parcel zoned for residential use into two parcels or both. This law requires ministerial approval of a housing development of no more than two units in a single-family zone and the subdivision of a parcel zoned for residential use into two parcels, or both. However, myriad rules, conditions, and exceptions govern its implementation. Background: There are generally two types of housing projects: 1. Those that require discretionary vetting through public hearings and 2) Those that require only “ministerial” approval by the city or county planning staff, without further approval from elected officials. Most large housing projects are not allowed ministerial review; instead, these projects are vetted through both public hearings and administrative review. On the other hand, projects reviewed ministerially require only an administrative review designed to ensure they are consistent with existing general plan and zoning rules and meet standards for building quality, health, and safety. Most housing

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projects that require discretionary review and approval are subject to review under CEQA, while projects permitted ministerially generally do not, thereby obviating the preparation of an environmental impact report. What this law does: This law requires a city or county to ministerially approve either or both of the following, (subject to exceptions and conditions): a) A housing development of no more than two units in a single-family zone (“duplex”). b) The subdivision of a parcel zoned for residential use into two approximately equal parcels (“lot split”). These rules would allow for the development of up to four homes on lots where currently only one exists. Theoretically, this could lead to the development of nearly 6 million new housing units. More realistically, assuming that only five percent of the parcels impacted result in the creation of new two-unit properties, this law would result in nearly 600,000 new homes. This law contains several detailed conditions, exceptions, and allowances that apply to the permitting of duplexes or lot splits, or both. Perhaps the most significant is the law does not apply to property located within a historic or landmark district, non-urbanized areas, certain farmland, or protected ecological zones. Rules, conditions, exceptions, and

allowances: For both the duplex and lot split approval, the following requirements apply (unless otherwise indicated as to applying to only one or the other): 1. The duplex or parcel to be subdivided must be located within an urbanized area or urban cluster. More than 80% of the population of California live within an urbanized area or cluster. Urbanized areas are so designated by the United States Census Bureau, which defines urban and rural at the block level. 2. The property cannot be located on any of the following: a) Prime farmland or farmland of statewide importance; b) Wetlands; c) Land within the very high fire hazard severity zone unless the development complies with state mitigation requirements; d) A hazardous waste site; e) An earthquake fault zone (unless seismic protection standards are complied with); f) Land within the 100-year floodplain or a floodway (unless FEMA floodplain management requirements have been met); g) Land identified for conservation under a natural community conservation plan or lands under a conservation easement; h) Habitat for protected species; or i) A site located within a historic or landmark district or a site that has a

historic property or landmark under state or local law 3. Prohibits demolition or alteration of an existing unit of rent-restricted housing, housing that has been the subject of an Ellis Act eviction within the past 15 years, or that has been occupied by a tenant in the last three years. 4. Prohibits demolition of more than 25% of the exterior walls of an existing structure unless the local ordinance allows greater demolition or if a tenant has not occupied the site in the last three years. 5. Prohibits a city or county from requiring more than one parking space per unit for either a proposed duplex or a proposed lot split. Prohibits a city or county from imposing any parking requirements if the parcel is located within one half mile walking distance of either a high-quality transit corridor or a major transit stop, or if there is a car share vehicle located within one block of the parcel. 6. Prohibits a city or county from rejecting an application solely because it proposes adjacent or connected structures, provided the structures meet building code safety standards and are sufficient to allow separate conveyance. 7. Authorizes a city or county to impose objective zoning, subdivision, and design review standards that do not conflict with this law, except: a) A city or county shall not impose objective standards that would physically preclude the construction of up to two units, or that would physically preclude either of the two units from being at least 800 square feet in floor area. However, a city or county may require a setback of up to four feet from the side and rear lot lines. b) A city or county shall not require a setback for an existing structure or a structure constructed in the same location and to the same dimensions as the existing structure. 8. Authorizes a city or county to require a percolation test completed within the last five years or, if the test has been recertified, within the last 10 years, as part of the application for a permit to create a duplex connected to an onsite wastewater treatment system.

9. Authorizes a local agency to deny a housing project otherwise authorized by this law if the building official makes a written finding based upon the preponderance of the evidence that the housing development project would have a specific, adverse impact upon health and safety or the physical environment and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact 10. Requires a city or county to prohibit rentals of less than 30 days. 11. Provides that a city or county shall not be required to permit an ADU or JADU in addition to units approved under this law. 12. Requires a city or county to include the number of units constructed and the number of applications for lot splits under this law in its APR. Additional rules and conditions governing lot splits: 13. Requires a city or county to ministerially approve a parcel map for a lot split only if the local agency determines that the parcel map for the urban lot split meets the following requirements, in addition to the requirements for eligible parcels that apply to both duplexes and lot splits: a) The parcel map subdivides an existing parcel to create no more than two new parcels of approximately equal size, provided that one parcel shall not be smaller than 40% of the lot area of the original parcel. b) Both newly created parcels are at least 1,200 square feet unless the city or county adopts a small minimum lot size by ordinance. c) The parcel does not contain rentrestricted housing, housing where an owner has exercised their rights under the Ellis Act within the past 15 years or has been occupied by tenants in the past three years. d) The parcel has not been established through the prior exercise of an urban lot split. e) Neither the owner of the parcel nor any person acting in concert with the owner has previously subdivided an adjacent parcel using an urban lot split. 14. Requires a city or county to approve

a lot split if it conforms to all applicable objective requirements of the Subdivision Map Act, except as otherwise expressly provided in this bill. Prohibits a city or county from imposing regulations that require dedicated rights-of-way or the construction of off-site improvements for the parcels being created as a condition of approval. 15. Authorizes a city or county to impose objective zoning standards, objective subdivision standards, and objective design review standards that do not conflict with this bill. A city or county may, however, require easements or that the parcel have access to, provide access to, or adjoin the public right-of-way. 16. Provides that a local government shall not be required to permit more than two units on a parcel. 17. Prohibits a city or county from requiring, as a condition for ministerial approval of a lot split, the correction of nonconforming zoning conditions. 18. Requires a local government to require an applicant for an urban lot split to sign an affidavit stating that the applicant intends to occupy one of the housing units as their principle residence for a minimum of three years from the date of the approval of lot split, unless the applicant is a community land trust, as defined, or a qualified nonprofit corporation, as defined. 19. Provides that no additional owner occupancy standards may be imposed other than those contained within 18) above, and that requirement expires after five years. 20. Allows a city or county to adopt an ordinance to implement the urban lot split requirements and duplex provisions and provides that those ordinances are not a project under CEQA. 21. Provides that nothing in this law (as applied to both the duplex and lot split rules) supersedes the California Coastal Act of 1976, except that a local government shall not be required to hold public hearings for coastal development permit applications under this bill. VISIT: HTTPS://www.car.org/legal/RecentLegal-Developments/2022-New-Laws BAKERSFIELD REALTOR® MAGAZINE

2021 2016

CHARITY

G O L F

T O U R N A M E N T

60th Annu

C H A R I TA B L E

ual Golf Tournament

F O U N D AT I O N

Use these tips to keep your agents active and selling

How do you inspire your agents to keep them engaged By Larry Kendall, author of Ninja Selling

“These are the times that try men’s souls. The summer soldier and the sunshine patriot will, in this crisis, shrink from the service of their country.” — Thomas Paine, December 19, 1776 In December 1776, George Washington and his army were facing perhaps the pivotal battle of the Revolutionary War. His troops were cold, hungry, and wanted to go home for Christmas. Washington knew if he lost his army, he would lose the battle and the war. He asked Thomas Paine to write him a speech to rally his troops. The famous Winter Soldier speech inspired his troops to stay, fight, win the battle, and the war. As leaders today, we face the coronavirus war—a battle for both our health and wealth. How do we inspire our troops to fight this battle as Winter Soldiers instead of victims? Here is a battle plan to survive during the war and to thrive afterward. 1. Character. You should appeal to an agent’s character as a player, a Winter Soldier, not a victim. Remind them that it’s not what happens but how they respond that determines the quality of their life. 2. Clarity. Leaders clarify the future. Clarity is the antidote to fear. “If you can manage my fear of the future, I will follow you,” says Marcus Buckingham in his book The One Thing You Need to Know. Lay out

BAKERSFIELD REALTOR® MAGAZINE

your plan to survive in the short run and thrive in the longer term. Give your people hope for the future. Point out that we are in one of the three basics of life: food, clothing, and shelter. When one of these basics is disrupted, as it is now, the demand doesn’t go away. It merely creates pent-up demand. There will be a bigger demand later. Winter Soldiers won’t lose income. Their income will be postponed. 3. Can Do! Focus your people on what they can do versus what they can’t. Action is the antidote to fear. Don’t let them be a hermit in hibernation. There is still a market in most parts of the country. People still need our services. We will have to do it differently (in many cases, virtually) than in the past, but we can do it. It’s a great time to reach out and take care of friends and clients. 4. Connect. Connect your office and your people electronically. Encourage your associates to connect with their clients and friends daily. Set call goals, personal note goals, and real estate review goals. Now, you have an excellent opportunity to build relationships and a foundation for future business. Redefine social distancing as physical distancing. Now is a time for social connection. 5. Certainty. Create pockets of certainty. Schedule electronic sales meetings, training

sessions, and social events. Create protocols for buyers, sellers, showings, contracts, and closings in the new environment. 6. Culture. Let them know they are part of a tribe. They are not alone. Just because we are remotely working doesn’t mean we are working alone. In a strong culture, members of the tribe will reach out to help each other. “Nothing sustains motivation better than belonging to the right tribe,” observes James Clear, in his book Atomic Habits. 7. Create. Look at this time as an opportunity to encourage your people to sharpen their saws, to work on their business, to learn, and install new systems that will take them and their business to a better place. Now is a wake-up call for many people on their health and their wealth. Help them set some health and wealth goals, so they are better prepared for the next war. Use this time as an opportunity to start installing those systems and habits now. Build a Winter Soldier office/company. Winter Soldiers can navigate the tough times and help their clients in all kinds of markets. They are not Summer Soldiers or Sunshine Patriots, eager when the market is easy and absent when times are tougher. They are prepared to weather any real estate season. This article reprinted with the permission of Real Trends Inc. Copyright 2021.

SUCCESS

Welcome, New Members! Your journey as a REALTOR® has just begun in making a positive impact in the lives of families in our community

realtors ®

AUGUST

Congratulations! Monzerrat Andrade, Solutions Realty; Sadoc Antonio, Werx Realty; Daissy Barreto, Century 21 Jordan Link & Co.; Tomas Carrasco, eXp Realty of California Inc.;

Jaime Cherry, Miramar International – Riverwalk; Taylor Crisp, Miramar International – Riverwalk; Eli De La Madid Leon, Elite Realtors; Myka Drake, Agentcor Realty; Fabiola Espindola, Berkshire Hathaway HomeServices; Cruz Flores, Realty ONE Group Strong; Cindy Gonzalez, Agentcor Realty; John Gonzalez, Infinity Real Estate Services; Jamie Gonzalez, Keller Williams Realty; Adrian Heredia, Century 21 Jordan Link & Co.; Gilmar Hernandez, Infinity Real Estate Services; Justin Kitchen, Kitchen Real Estate Services; Glen Lagerstrom, Fenton Real Estate; Ashley Lara, Golden Valley Real Estate Group; Chanell LeBlanc, Miramar International - Harris Rd; Martin Martinez, Werx Realty; Frank Martinez, Elite Realtors; Nikolas Oni, Watson Realty; Wendy Patnaud, Redfin Corporation; Andrea Pena, Miramar International Calloway; Angelita Perez, Realty ONE Group Strong; Agha Qizilbash, Realty ONE Group Strong; Sharouk Qumsieh, Corcoran Global Living; Janette Ramsey, Open Door Real Estate; Harmohan Rathour, RE/MAX Golden Empire; Adriann Rosales, California Home Pros; Alyssa Salinas, Benmar Realty; Alonda Santiago, The Ryan Dobbs Real Estate Team; Dion Smith, Skyler Realty; Colby Spears, Miramar International – Riverwalk; David Teeter, Fenton Real Estate; Victor Villatoro, Agentcor Realty; Kyle Walgamotte, Cissy Clark & Company; Micaela Yanez, Tri-Unity Realty Inc.; Raquel Zavala, Better Homes Realty; Jose Zepeda, Realty ONE Group Strong; Teresa Zimmerman, eHomes of Bakersfield

realtors ®

SEPTEMBER Congratulations! Sara Angeles, Keller Williams Realty; Jodi Marie Broome, The Ferrari Team Infinity Real Estate Services; Elise Cabral, Werx Realty; Marty Lynn Chatham, Keller

Williams Realty; Maira Y. Cruz, Golden Valley Real Estate Group; Martha Elizondo, Miramar International Calloway; Valerie Macias Enriquez, Miramar International Calloway; Fabiola Espindola, Berkshire Hathaway Home service; Belinda Ann Estrada, Agentcor Realty; Caleb A. Fisk, Keller Williams Realty; Reynaldo A. Flores Vides, Miramar International-Mill Rock; John Gonzalez, Infinity Real Estate Services; Danni N. Hernandez Flores, Elite Realtors; Mylissa Rae Hopkins, Watson Realty; Harvinder Kaur, Keller Williams Realty; Israel J. Lopez, Realty ONE Group Strong; Matthew R. Lucas, Keller Williams Realty; Daniel Valdez Marroquin, Open Door Real Estate; Marietta M. Miller, Gregory D. Bynum & Associates; Karin E. Munoz, Berkshire Hathaway Home service; Saul Munoz, Agentcor Realty; Adrian Alberto Rangel, MV & Associates Real Estate; Elizabeth M. Rodrigues Puente, Realty ONE Group Strong; Adriann Nicole Rosales, California Home Pros; Brett A. Urioste, Performance Realtors, Inc; Elizabeth A. Varela, Century 21 Jordan-Link & Co; Teresa Maria Zimmerman, eHomes of Bakersfield; Julie M. Briano, Golden Valley Real Estate Group

realtors ®

OCTOBER

Congratulations! Catherine Booth, Agentcor Realty; Elise Cabral, Werx Realty; Breanna D Calderon, Werx Realty; Julio Camacho, Watson Realty; Reynna Camarena, Keller Williams

Realty; Christopher M Crawford, United Real Estate Consultants; Armando S Garcia, Performance REALTORS, Inc; James Garcia, Elite REALTORS; Michelle Garcia, Agentcor Realty; Mona Lisa Gayles, Watson Realty; Audra K Guinn, Miramar International-Riverwalk; Veronica Jimenez, Solutions Realty, Inc.; Chantal Maciel, Agentcor Realty; Jacob M Morgan, Watson Realty; Patricia A Neal, Agentcor Realty; Amy Nester, Watson Realty; Veera P Oubsuntia, eXp Realty of California Inc.; Martin Padilla, Agentcor Realty; Sagar S Patel, Brimhall Realty; Christian I Quezada, Watson Realty; Lazaro A Reyes, My World Realty; Brenndan Roam, Agentcor Realty; Elizabeth Ruiz, Bolich Realty, Inc.; Andrew M Sanchez, Realty ONE Group Strong; Elizabeth Sanchez, Miramar International-Riverwalk; Jessica Shah, Century 21 Jordan-Link & Co; Rob Singh, Infinity Real Estate Services; Dion D Smith, Skyler Realty; Tiffany Margaret Swanson, Infinity Real Estate Services ; Beau D. Van Sickel, Coldwell Banker Preferred, RLT; Maria Vielmas, Corcoran Global Living; Yongqiang Wu, eXp Realty of California Inc. BAKERSFIELD REALTOR® MAGAZINE

ur Association champions the pursuit of higher education because education impacts every part of our community; the recipients, and their essays, of this year’s Scholarship Trust Fund, are as follows:

far-away university, but would it make me happy? Would it be a smart decision? Would it feel like a home? I decided against moving out in the end because the home is much more than four walls, a roof, and a mortgage. I have always enjoyed spending time with my family at home, even if it wasn’t much after work and school. I couldn’t imagine coming home to an empty house; I would have to if I moved out to a place of my own. I also have many happy memories here with family and friends, not to mention if I had to move out,

SARIAH WASHINGTON Homeownership is an investment that does not only appreciate in terms of finances. It can also grow to enrich other areas of life, including happiness, family, and security. Homeownership has a special place in my heart; the pursuit of homeownership by my own parents has undeniably shaped me. I was born to two very young parents who both worked tirelessly to create a secure life for me. One of the ways they did this was by becoming young homeowners. It was crucial for them that I have a place to grow safely. This remained true of my parents even years after when we had to uproot ourselves from Wasco and begin again in Bakersfield. Having a large family, it was often difficult to find a place for us. We experienced many moves through my middle school and high school years before we were blessed with the house we live in today. Although each house was filled with love and joy because I had my family, I cannot deny the sense of relief and security that came with my parents becoming homeowners. This safety is something I believe makes a home. I am especially reminded of this when I consider all of the families that experienced housing insecurity in the face of the pandemic. My family and I were lucky to not only have each other, but also peace of mind that the home we lived in was our own, and there was no threat of being removed from it. Home to me is not simply a house. It is the people in the house, the memories in it, and the safety it brings. As I continue on with my studies and come nearer to entering the

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world as a young professional, I am already excited and inspired to become a homeowner myself and create the same space of security, love, and memories that I have been blessed to experience.

LAUREN KAISER As a young adult in college, I have been faced with the decision to move out or stay at home. When exploring the possibilities, the exact question of “what makes a house a home?” came to mind. Sure, I could move out into an apartment or a dorm in a

I would leave all of my dogs behind, who I love dearly. A home is something that you can return to and leave negativity at the door because in the family room is family, not just a couch and a television. When in a home, you can rely on others to help you; compared to a lonely apartment, it would be very easy to feel as if the world is atop your shoulders. Of course, my definition of home will change as I get older and meet someone to start my own family with. However, the basics

still stay the same, a home is a house full of love and the ones you love. It is a place of vulnerability and growth, where you truly feel comfortable. A home is much deeper than just a place; it is a place of foundation and grounding. It only takes contractors to build a house, but it takes love to build a home.

TRISTIN DIAZ Home ownership is valuable in many aspects of life and something that I will pursue as soon as I become financially independent.

For myself, home ownership would indicate a level of success and security. It would surely be a source of pride for me because it would mean that I was able to provide myself a home and, potentially, a future source of income. Buying my first house will be an exciting and rewarding time, especially after working to be able to do so. Furthermore, home ownership would bring a sense of security; even with changes in the economy and world around me, I would have an asset and long-term investment in a home. Owning a house would mean that I would have my own place to build a family and environment tailored to myself. I believe the defining factor that draws the line between a house and a home is the love that is put into it. Currently, what makes my house a home is my family and my cats because of the love and positivity that they bring. Next year I will be living in a dorm room, and I will not have either with me. However, this does not mean that my dorm will not be my home, as the love that makes the distinction will come from the objects

that I bring and the memories that I make. Therefore, making a house a home could even mean putting effort into personalizing the house that one buys and turning it into a space that they love, or having pets or objects with them that they find important. Growing up, I saw my mother meet with countless buyers. Each person had different goals, needs, and situations. Regardless of these aspects, and whether it was a large family or a single person, my mother was able to help many people find a house that

shelter and a safe place, where families can prosper and children can thrive. For many Americans, their home is an important financial investment, and it can be a source of great personal pride and an important part of community stability.” Homeownership is a privilege that, sadly, many people never get. To be able to walk into your very own house is such a special moment, one that you will never forget. Spending months trying to find a perfect house that you will be able to grow in and start a new life in is a great moment to work toward. That is a moment I cannot wait to reach. Homeownership means that I am able to decorate and design each room in a way that expresses my personality and hobbies. Having the creative freedom to do whatever I like with my own house is a dream I will one day reach. A house is just a place to stay from time to time, but a home is a safe space filled with love and protection. A home is a place where you feel warm and cozy. It is filled with special things that you bring into your life that have meaning and importance. A home is a place that you can share with friends and family. A home is a place where you will create lifelong memories that you will be sharing with others for many years to come. Lastly, a home is where you can start and raise a family. You make a house a home by just living in it and creating memories and experiences

they could turn into a home. Watching this process has helped me develop the goal of earning my real estate license and learning the ropes during the summers when I am home from college.

ENRIQUE CARRILLO III I have attached my essay below for Continued to page 24

GRACE ARREOLA Loving Home Being able to one day have my very own house would be a dream come true. Having your own home is a part of the American dream and is on most people’s life accomplishment lists. George W. Bush once said, “A home provides BAKERSFIELD REALTOR® MAGAZINE

Electronic Signatures continued from page 13

issue has expired. In that case, the party issuing the notice may exercise its right to cancel the agreement.

your clients and your business, you will not only sleep better at night, but you will have gained the respect of your clients and fellow REALTORS® that you are not only knowledgeable but thorough, and that you pay attention to detail! That is the kind of REALTOR® Professional that everyone wants to do business with! The information above is not intended

5. Contingency release The release of all contingencies by filing out the CR C.A.R. form ultimately leads buyer and seller to agree that they will close escrow, and if they fail to do so, they will be in default. Make sure your client understands the seriousness of defaulting in an escrow.

as offering legal advice. For more specific information on these topics, please refer to the California Association of REALTORS® 7. Cancellation of escrow If an escrow is unable to continue and close successfully. In that case, cancellation instructions are necessary for the escrow

Scholarships continued from page 23 consideration to your scholarship. I am very interested in getting any assistance that will help me get to my career. Hello, my name is Enrique Carrillo III. Homeownership would mean to me responsibility, independence, stability, and most importantly, a sense of reaching adulthood. A home would mold me into a responsible adult that pays his mortgage and bills, and one who has a sense of freedom to make adult decisions on my growing investment. Owning a home would show me how to learn stability by having a steady job that allows me to be responsible and

BAKERSFIELD REALTOR® MAGAZINE

other related topics.

2021 OMBUDSMAN REPORT

officer to terminate the escrow and release

n Appraisal: 4

deposit funds to the buyer or seller.

n Cancellations and Deposits: 74

It is essential to understand all the

6. Notice to perform If a buyer or seller fails to adhere to pre-agreed upon terms of the purchase agreement, it may be appropriate to file a notice to perform for the buyer or seller so that the other party may be free to cancel. If the nonperforming party fails after the pre-agreed upon time frame to remedy the

Legal Questions and Answers on these and

n Commission/Referral fees: 23

options that are available on the C.A.R.

n Contingency Removal: 1

form. It probably would be a good idea to

n Deed: 2

consult with your Broker or Sales Manager

n Disclosures: 14

to verify the proper usage of the options

n Grievance/ Arbitration: 6

given on the form. If you have any doubts

n MLS/ Supra: 4

about conveying cancellation instructions,

n Offers: 9

please seek assistance as the release of

n Home Ownership Dispute: 2

the deposit and other obligations may be at

n Procedural:45

stake.

n Property Management: 15

In conclusion, today’s emphasis has been

n Repairs/fixture replacement: 31

to encourage you to know your contract,

n Termite/Pest Control: 3

take the time necessary to explain it to your

n Unprofessional Behavior: 20

client, and memorialize all agreements in

n Miscellaneous: 50

writing with all parties involved!

n Year-to-date total calls: 303

By utilizing these Best Practices for

maintain a home. It would make me become an independent young adult that has the confidence to make my own investments. The feeling of knowing that one day a house will be mine to cherish and create memories in is exciting. Also, as the years pass, my home would be building equity. What makes a house a home to me would be a place of security, my safe haven. A home would be a place where I can build memories. It would be a place that would reflect me, my values, and most importantly, my family’s values. A home would let me have a sense of pride in ownership. A house does not need to be huge and elaborate, but

rather, a place where I can come home after long days at work and relax. Soon after, I will start a family and have a wife to put her personal touch into our home and children to follow. Also, I would have to have a man’s best friend, a lab. I can’t wait to see my walls marked with crayons and full of drawings, toys everywhere, and a meal on the stove. Most importantly, the sense of love, happiness, and sense of fulfillment is what I think would make my house a perfect little home. At the moment, my focus is on trying to reach higher education to become prosperous in life.

ATEAM

The

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.

DAN ARDIS, CHAIR

San Joaquin Valley Mortgage 661.342.9381 danardis@sjvalleymortgage.com

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

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

KAREN CLEMANS Mission Bank, 1031 Exchange 661.859.2500 clemansk@missionbank.com

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

MIKE GEORGE Agape Mortgage 661.324.2427 mikegeorge@agapemtgco.com

SHARI GEORGE Agape Mortgage 661.324.2427 sharigeorge@agapemtgco.com

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

CHEREYL NUNN Loan Depot 661.270.8601 cnunn@loandepot.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 ATEAM for Supporting Our REALTORS® BAKERSFIELD REALTOR® MAGAZINE

Be a top negotiator when you can’t speak to someone in person 26

BAKERSFIELD REALTOR® MAGAZINE

How to be a Persuasive Communicator while working remotely BY JULIET HUCK

As social distancing becomes the new normal throughout the US and the world, professionals across industries are making drastic and immediate changes to their work and presentation styles. With the quick shift to working from home, business leaders, lawyers and sales and marketing teams are navigating new terrain—figuring out how to effectively communicate in a way that will achieve a desired outcome while working remotely. There’s nothing quite like the energy and connection that a face-to-face interaction can create, but we have to try to work with what we’ve got. With that being said, just because we’re in a period of social distancing doesn’t mean that work and persuasion come to a halt. Remote work was a rising trend before the COVID-19 pandemic, with regular work-at-home growing 173 percent since 2005. With so many additional businesses moving to a work-at-home structure, it’s safe to assume that broader long-term adoption will become even more prevalent over the coming years. It’s a good idea for professionals to start learning now how to connect remotely to stay ahead of the curve. Here are a few tools and tactics that will help you become a successful and persuasive communicator via a remote connection. STICK TO THE BASICS Even through a remote connection, the basics of persuasion apply. It’s vital that you do your homework and learn about the decision maker. Just because you aren’t meeting face-to-face doesn’t mean that you can skip the groundwork you would regularly complete. What are your target’s demographics? Do they have any special interests? You’ll need to establish an even stronger bond to persuade via remote means, so flex your research talents and learn about your target. You should also continue to find their needs and pain points. Learning this information will help you demonstrate to your decision maker that you understand their goals, even if you can’t see them in person. Establishing a strong sense of understanding will help you build trust and allow you to position yourself as an advisor. This trust will be critical for remote persuasion. LEVERAGE TECHNOLOGY Although working from home can create another level of separation from your target, technology has progressed leaps and bounds when it comes to inter-personal communication. Tools such as Zoom, and Skype for Business allow your audience to see your face. You should leverage your entire technology suite to help you persuade remotely. Visuals must lead your decision maker to your desired conclusion. Create polished presentations to either show via conference call or email ahead of your meeting. When you might not regularly do this when meeting face-to-face, you

may consider incorporating a video presentation as well. Video can be a terrific way to establish an emotional connection with your decision maker, providing for a unique story telling opportunity complete with visual and musical cues. Nearly 90 percent of professionals indicated that a strong narrative was critical in maintaining their attention. Engagement with your story is more important than ever, as you’ll be competing with additional distractions including family and pets. PRACTICE AND DEVELOP A STYLE Personal energy exchange is very difficult via a computer screen. You must determine who you are as a presenter in this new medium. How can you be more dynamic through remote connection? Before jumping on a conference call, practice on your computer by recording yourself and playing it back to see how you present on camera. Think this is taking it too far? Consider the first time you had to leave a professional voicemail and were put on the spot to communicate your needs in a brief message. It took time to sharpen those skills and you’re probably a pro now! The same is true for online presentations. It might take a few rounds to get comfortable, but at this point in your career there’s no time to fumble. “Practice makes perfect!” BE MEMORABLE Would you do a face-to-face meeting and not follow up? Absolutely not! You would always follow up with your decision maker and you need to continue that with a remote connection. Think about ways you can stand out in the crowd. How about an old school, handwritten thank you note sent to their home? During a time when personal connection is minimized, it might be an opportunity to brighten your customer’s day and build trust. Just make sure you send to the correct address. If they’re also working from home, a note to the office will get lost in the shuffle. PERSUADE FROM A DISTANCE While many professionals are used to persuading through face-to-face interactions, the current climate calls for a new tactic. Just because you can’t meet in person with your decision makers doesn’t mean that you can’t still do your job. Learning to effectively persuade via remote connection is possible, and by following the basic principles of persuasion, leveraging your technology suite, setting time to practice and developing ways to be memorable, you still have a strong chance at leading your decision maker to the desired outcome. While remote persuasion may take a bit more effort and preparation, you can get the results you seek if you take the time and keep these guidelines in mind. About Juliet Huck: Author of “The Equation of Persuasion” and founder of the Academy of Persuasion e-learning series, Huck has blazed a trail in the uncharted territory of Persuasive Communications for 25 years. She has been retained by some of the nation’s most prestigious organizations, corporations and law firms and has assisted in moving billion-dollar projects forward, securing billions of dollars in decisions through her proven process. BAKERSFIELD REALTOR® MAGAZINE

Need for increased transparency

Study: Homebuyers don’t understand closing documents

espite the requirement of closing disclosures (CDs) to inform homebuyers of their transaction

costs, consumers still don’t understand the costs associated with buying a home. Only one in five homebuyers say they understand all of the closing documents they signed at closing, according to the Qualia Homebuyer Sentiment Index, which shined a light on the risks consumers may be taking when they act too quickly without understanding the home purchase process or transaction costs involved. Meanwhile, homebuyers are acting quickly in a competitive market with nearly a quarter of homebuyers purchasing their home sight unseen. “This survey emphasizes the need for increased education and transparency during the home buying and selling process,” says Nate Baker, CEO of Qualia. “Our core belief is that technology that powers the transaction is the key to providing that assurance. It can simplify a very complex process to allow real estate professionals to focus on client education and a seamless home buying experience.”

Insights from the survey revealed: Homebuyers take bold action in a competitive housing market Low interest rates and limited housing inventory sparked a competitive housing market. The survey highlighted how far buyers were willing to go to get the house of their dreams. Nearly a third (30%) of buyers paid more than anticipated for their home, and of those who paid more than anticipated, 32% paid $50,000 or more over the asking price. Buyers are also making what they may believe to be calculated concessions, with some removing

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inspections from the contract (19%) or purchasing the home without seeing it in person (23%).

Homebuyers expect and experience stressful, complicated closings The survey indicates that recent homebuyers found the real estate closing process to be the most stressful and complicated part of the real estate transaction itself, especially the closing documents. In fact, when Qualia explored the consumer sentiments around the entire home-buying journey, the only thing more stressful or complicated than the closing was the move-in process. Future homebuyers are also apprehensive about real estate closings. One in four future homebuyers reported that they do not understand the closing process or the closing documents they sign. Qualia’s survey illuminates the value of combining knowledgeable local agents to guide homebuyers through the process with technology that automates real-time transaction updates and offers consumers instant access to information.

Homebuyers Experience Sticker Shock Despite the requirement of closing disclosures (CDs) to inform homebuyers of their transaction costs, consumers still lack an overall awareness concerning the costs associated with buying a home. In fact, 44% of recent homebuyers were surprised by higher-than-anticipated transaction costs. Qualia’s survey also found that consumers desire multiple touch points to receive information prior to closing. More than half (55%) of future homebuyers would like to receive information face-to-face about the closing process prior to the closing date and nearly half would like to receive information over a secure mobile app or web-based

portal (44%). The survey data demonstrates the importance of empowering and educating consumers on whatever channel they choose to engage.

Millennials Are Still Banking on Homeownership Personal finance struggles and student debt have created roadblocks for Millennials to become first-time homebuyers, but they are not throwing in the towel on homeownership. According to the study, 72% of Millennials that are in the market to purchase a home are currently saving more than $500 a month to do so.

The pandemic may have eliminated a downsizing trend The percentage of homebuyers seeking more space increased more than 10 percentage points within the past year since Qualia’s November 2020 survey. According to the study, the most popular reason for buying a new home was the need for more space (36%) (vs 23% in November 2020). Needing less space was the top driver for only 5% of recent homebuyers. With work from home increasingly becoming a more widely accepted work environment, is this a signal that any downsizing trends may not pick back up as offices reopen?

About the Qualia Homebuyer Sentiment Index Qualia commissioned Savanta Research to conduct a quantitative online research study during July 1-July 9, 2021 among a general consumer pool in the US who recently bought a home or are planning to in the coming 12 months. 1,024 respondents participated in the study. The margin of error is 3.1% at a 95% confidence level. This article reprinted with the permission of Real Trends Inc. Copyright 2021.

recovery from the Housing Recession We all hear that the recovery from this one we are now in will be a “V” shaped recovery—a fast downward move followed by a quick, upward movement. We all pray that’s what will happen. BY STEVE MURRAY, PRESIDENT

I love this industry. It’s been my home for 44 years now. In my time, there have been three significant recessions and one minor one. While today’s market is unprecedented, the history of housing recessions tells us something different. For instance, the housing market peaked at nearly four million-unit sales in 1979 before crashing to 1.9 million in 1982, a 50% drop in two years. The next peak was in 1988 when the industry had 3.6 million closed unit sales. Notice we still didn’t get back to 4 million units even though the number of households climbed from around 80.8 million households to 91.1 million households in 1988. The trough came in 1991 at 3.1 million units sold and then climbed to 5.2 million in 1999—the next peak. After a small decline in 2000, the market for housing unit sales shot to 7 million in 2005. It then crashed to a trough of 4.1 million in 2008. Think about that: In 2008, the country experienced a nearly 50% increase in the number of households (116.7 million in 2008

vs. 80.8 million in 1980), yet, at the trough, we sold just above 100,000 more homes. We climbed out of the 2008 trough to achieve a peak of 5.5 million-unit sales in 2017 and have been slightly less than that in the last two years. As of 2019, we had 5.3 million housing unit sales—33% above the totals of 1979. Total households climbed over 55% in that same time frame. One other interesting fact: The industry hit four million-unit sales in 1979 and did not hit that number again until 1996— nearly 17 years later. The peak of 1999 at 5.2 million is only slightly exceeded by the peak of 2017 of 5.5 million-unit sales —that’s in 18 years. One must excuse the burst of housing sales from 2003–2006 for the excess of mortgage laxness, which we are all too aware of today. I would love to think that this will be the first “V” housing recovery in the last 40 years (which didn’t have funny money mortgages involved). History indicates otherwise. Recessionary shocks to the entire economy typically unnerve consumers, especially when it comes to housing. The history of the last 40 years instructs us that recoveries are often drawn out over years, not months. AN ANOMALY? I share this with some reluctance because

it has far-reaching implications for every brokerage and agent in the country. I’m also reluctant because, of course, this could be the exception to the last 40 years of brokerage sales history. Why? n First, I recall the experience of living through 9/11 when housing sales in NYC and elsewhere shuddered for three to four months, then took off on a tear. n Second, it occurs to me that once the shock of the medical and employment waves have been incorporated into our thinking and our lives, a majority of Americans will want to get back to living. They’ll want to do all the things that we enjoy doing, whether that means going out for dinner, taking a trip to the beach, going to the movies, church, and sporting events—the things that give our lives meaning and enjoyment. In short, once this shock wave has passed, will Americans yearn to get back to a life that many enjoyed fully? We think this is true. And despite what the long-term track record of housing recoveries shows, this time will likely be different. After all, there are incredibly lowinterest rates, and those with stable jobs may see this as an opportunity to grab a great house when others are on the sidelines. This article reprinted with the permission of Real Trends Inc. Copyright 2021.

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Brokerage Firm Recovery

View of the Longer Term

How brokerage firms changed after each recession. By Steve Murray, Real Trends President

Each time the brokerage business went through a recession, some significant changes occurred in the structure of brokerage firms. Here are some examples: After the 1980-82 recession, brokerage firms began to increase the size of their offices in terms of the number of agents; stopped offering programs to buy homes from sellers when it wouldn’t sell (yes, leading brokerage firms in the late 1970s and early 1980s were iBuyers). The trend towards franchising in our industry experienced a significate growth. After the 1988-1991 housing recession, brokerage firms started the process of cross-marketing mortgage, title insurance, escrow, and other services in earnest. The move towards national brands became more pronounced. 1989-1995 were some of the most significant growth years for Coldwell Banker, Prudential, and RE/MAX. 30

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After the 2006-2010 recession, brokerage firms finally stopped using classified advertising. One has to remember that even as late as 2006-2007, classified advertising in newspapers was still the largest line item in many firm’s advertising budgets. It took the recession to kill that idea for most brokerage firms once and for all.

What might happen to Incumbent Brokerage Firms now? Fewer, smaller offices would seem to be at the top of the list. Occupancy costs range from 22% to 32% of Gross Margin for many incumbent brokerage firms. That is only behind employment costs as the most expensive segment of overhead. With Gross Margins coming

down from 22% to 14% over the past six years (the national average among all brokerage firms), this was already becoming evident. Now that brokerage firms and their agents are doing most of their work from home offices, it would seem that some brokerage firms will use the next one to two years to reduce the size and number of offices. Short term, there is a movement to the rural and ex-suburban markets—will it continue? REAL Trends has spoken to the leaders of two major rural, farm and ranch property brokerages who report that their website traffic has grown in the past month, and they see measurable increases in purchases of rural property. Tied with the reported flow of families from major metro areas to suburban and rural markets, this seems to indicate that, at least for the short term, families are seeking shelter outside of major metropolitan areas. Is there an opportunity for metro brokerage firms to expand their offerings into the countryside to follow this shift? Brokerage firms and their agents will, at last, start building their business practices around the available technology platforms rather than trying to make technology fit their existing business practices. We (and others) have observed for years that incumbent brokerage firms and many agents sought technology to support their existing business processes and practices. The recession in the housing market, no matter how long or deep, is likely to drive the brokerage community to rethink that approach. Evidence that we’ve seen from Adwerx and a few leading CRM providers seems to be showing a direct correlation between the full use of these platforms (and

others) and increased productivity and retention factors. As brokerage firms rethink their approach to technology, they will also take advantage of the information that systems can provide to deliver more useful insights for their firms.

The Impact on “Technology” Brokerage Firms

Zillow, Redfin, eXp, and Compass (and their investors) will get to discover that they are in the residential brokerage business and are thus affected like everyone else. We think the above firms will make the adjustments necessary to survive— different than they may have guessed, but each should survive and become stronger and more focused than before this downturn started. This also goes for firms like Open Door and OfferPad. While the iBuyer activity seems to have stopped or cooled off measurably, for the time being, these programs will be reinstated once a new floor of housing sales has been determined and what, if any damage, has been done to housing values. For firms like Zillow and Realtor.com, the decline in housing sales will affect how much agents and brokerage firms spend on online advertising. For firms like Redfin and Compass, the decline in sales will negatively affect their revenues and profit and loss statements. In the case of Zillow and Redfin, the loss of growth from iBuyer activity will have a very significant impact on their growth factors. It’s funny that, at exactly the time that iBuyer activity would seem to be a real winning strategy (no need for showings, etc.), many of the leaders in the segment pulled back. This article reprinted with the permission of Real Trends Inc. Copyright 2021.

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STATEOFTHE

HOUSING MARKET

2020 Compared to 2021 by MLS Area

AUGUST

SEPTEMBER

All Areas

Bakersfield

Quarterly 1st Qtr 2021 2,489

New Listings

1st Qtr 2020

2nd Qtr 2021

2,431

2,881

2nd Qtr 2020 2,478

3rd Qtr 2021

3rd Qtr 2020

2,884

3,096

945

506

1,067

864

880

1,109

Pending

2,349

1,900

2,479

2,216

2,350

2,634

Sold

2,012

1,690

2,495

1,831

2,290

2,419

$626,082,733

$458,027,974

$832,364,718

$504,866,317

$780,826,581

$713,620,163

$295,000

$254,800

$315,000

$266,250

$327,000

$282,000

$172.94

$152.36

$188.22

$156.46

$197.25

$164.04

Contingent

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

* Figures from Single Family Homes Only. Statistics were run on October 8, 2021 Bakersfield uses the following Zip Codes:93301, 93302, 93303, 93304, 93305, 93306, 93307, 93308, 93309, 93310, 93311, 93312, 93313, 93314.

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4th Qtr 2021

4th Qtr 2020

2021 YEAR-TO-DATE STATS Area

Dollar Value

# S ol d

Average Sold Price*

% of List Price*

DOM*

2021

2020

2021

2020

2021

2020

2021

2020

2021

2020

233

173

$61,796,350

$35,380,098

$274,793

$213,357

100.07

97.97

157

117

$24,349,562

$15,507,049

$165,023

$143,107

99.73

97.60

209

178

$53,223,966

$38,905,676

$258,520

$229,161

101.81

98.36

$13,579,400

$12,522,600

$365,659

$402,697

99.78

94.55

232

166

$54,640,882

$32,085,260

$237,253

$195,713

100.41

98.47

477

419

$129,017,249

$95,795,488

$277,808

$238,743

101.38

99.09

275

158

$87,161,605

$42,453,383

$330,422

$287,812

100.73

99.37

$30,523,500

$22,857,615

$404,182

$343,140

99.47

99.00

100

$21,119,485

$14,163,406

$212,026

$185,647

100.71

97.84

131

129

$34,511,365

$29,677,230

$270,701

$228,199

99.84

99.06

$2,240,500

$1,525,000

$232,563

$190,625

97.27

102.84

522

385

$123,760,769

$72,650,429

$249,316

$201,068

100.73

98.60

1197

1180

$362,048,071

$314,354,267

$321,511

$278,156

101.57

99.51

668

562

$289,363,210

$203,668,914

$436,561

$366,277

101.19

98.92

$13,940,299

$19,798,971

$543,692

$421,508

99.72

3.66

230

159

$89,018,434

$51,186,527

$389,271

$321,928

101.24

99.05

881

810

$361,138,419

$281,800,436

$411,257

$348,656

101.37

99.50

401

370

$204,666,705

$156,861,709

$515,746

$430,620

100.39

99.20

$11,253,942

$6,846,000

$625,219

$600,545

97.94

97.75

$7,187,920

$11,161,612

$378,312

$338,231

100.15

99.20

191

189

$72,407,151

$65,883,004

$396,447

$358,026

99.61

98.17

$6,773,400

$5,596,099

$195,073

$223,350

261

97.37

95.83

$8,982,821

$5,202,499

$305,845

$163,834

123

93.38

94.53

$6,509,800

$21,712,602

$340,822

$314,675

100.55

98.69

$1,505,000

$4,399,000

$607,500

$879,800

109

95.67

98.06

$8,536,800

$5,660,900

$426,840

$369,762

105

94.97

97.55

$11,951,299

$8,673,261

$259,811

$192,739

102.49

96.82

$2,885,500

$2,129,000

$412,214

$564,667

95.91

96.86

$1,269,900

$391,000

$423,300

$133,000

100.40

98.56

$4,947,500

$5,054,250

$269,607

$231,550

101.01

93.75

164

188

$43,177,925

$44,421,474

$266,142

$236,142

99.27

98.72

180

154

$34,236,294

$22,318,739

$193,734

$149,172

98.02

97.51

134

132

$33,864,238

$29,373,749

$255,494

$222,929

98.95

98.42

234

163

$90,829,917

$56,328,858

$398,755

$350,634

98.77

97.57

* Figures from Single Family Homes Only. Statistics were run on October 8, 2021

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