FCBOR Monthly Newsletter Volume 2 • Issue 13 - Septermber 2013 From the President With summer coming to an end, we are gearing to prepare for a good fall and winter, meaning lots and lots of snow and lots and lots of sales. Do not forget our Installation Banquet on September 26. We have been working on some new criteria for awards, should be fun! Hope to see you there. Prayers go to Randy Graham and his family as he is retiring for health reasons. For any well-wishers his email is email@example.com. I would like to thank the Board of Directors for their service this last year. We had a lot of hurdles to get over and we accomplished them all! Many thanks to Denise for being my right hand girl the last few months and all of the membership. Great job! I will remain President next year, what a glutton for punishment! Let’s hope for a good year. Please keep in your mind and in your prayers our fellow Coloradans on the eastern slope who are in the flood areas.
Gerry is the President of The Four Corners Board of REALTORS® You can contact her at 970-565-8408
Community News Important Updates & Reminders! Need to see whatâ€™s going on with the association? Donâ€™t forget to go to your website for: CLASSES STATISTICS CALENDAR NEWSLETTERS Board of Director Contact Information AFFILIATES http://fourcornersboardofrealtors.com/
Education Class: Super Sales Skills Date: Thursday, October 24th Time: 9am-1pm Location: First National Bank of Cortez Instructor: Bruce Gardner Cost: $40 CE: NONE- Professional Development Please sign up online using your LAMPS login at https://daar.getlamps.net/Default.aspx?page=calendar Agents with developed sales skills will have more closings and make more money with less effort than other agents, and this class will help you build those skills. You'll learn how to work with prospects and clients without being "pushy", and how to guide them through the buying or selling process naturally and easily. If you think you could improve your skills and be more effective, then this is the class for you!
FCBOR CALENDAR OF EVENTS October 2013 Sunday
6 13 20 27
7 14 21 28
Tu 1 8 15 22 29
We 2 9 16 23 30
Th 3 10 17 24 31
November 2013 Fr 4 11 18 25
Sa 5 12 19 26
3 10 17 24
4 11 18 25
5 12 19 26
6 13 20 27
7 14 21 28
Fr 1 8 15 22 29
Sa 2 9 16 23 30
5 Cortez Farmers Market
Sep 29 - Oct 5
Dolores Farmers Marke
Oct 6 - 12
Dolores Farmers Marke
12:00pm 1:00pm Cha
Jones Farm Pumpkinfest
5:00pm 7:00pm Business After Hours
Jones Farm Pumpkinfest
Oct 13 - 19
CAR Convention (Denver Sheraton)
Oct 20 - 26
12:00pm 1:00pm Dolores Chamber Luncheon
9:00am 1:00pm Super Sales Skills Class (TBD)
Kids Treat Parade (Dow
Oct 27 - Nov 2
9/24/2013 2:59 PM
The 2012-2013 Four Corners Board of REALTORS Board of Directors: President/ Gerry Parker / 565-8408 / firstname.lastname@example.org President-Elect/ Robin Rice / 565-8408 / email@example.com Past President / Ken Williamson / 565-2000 / firstname.lastname@example.org Secretary/Treasurer / Bob Toles / 946-1194 / BobToles@yahoo.com Director/ Brenda K. Bates / 565-2000 / email@example.com Director/ Jo Ann Cauley / 565-8408 / firstname.lastname@example.org Director/ Preston Dillon / 560-9144 / email@example.com Director/ Dawn Utrup / 570-3110 / firstname.lastname@example.org CAR Director/ Carol Click / 565-2000 / email@example.com Association Office Staff Association Executive / Denise Unrein / 565-0112/ firstname.lastname@example.org
Existing-Home Sales Spike in July WASHINGTON (August 21, 2013) – Existing-home sales rose strongly in July, with the median price maintaining double-digit year-over-year increases, according to the National Association of Realtors®. Total existing home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 6.5 percent to a seasonally adjusted annual rate of 5.39 million in July from a downwardly revised 5.06 million in June, and are 17.2 percent above the 4.60 million-unit pace in July 2012; sales have remained above year-ago levels for 25 months. Lawrence Yun, NAR chief economist, said changes in affordability are impacting the market. “Mortgage interest rates are at the highest level in two years, pushing some buyers off the sidelines,” he said. “The initial rise in interest rates provided strong incentive for closing deals. However, further rate increases will diminish the pool of eligible buyers.” Despite higher mortgage interest rates, Yun identified compensating factors that can sustain a continued recovery. “Although housing affordability conditions will become less attractive, jobs are being added to the economy, and mortgage underwriting standards should normalize over time from current stringent conditions as default rates fall.” According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.37 percent in July from 4.07 percent in June, and is the highest since July 2011 when it was 4.55 percent; the rate was 3.55 percent in July 2012. Total housing inventory at the end of July rose 5.6 percent to 2.28 million existing homes available for sale, which represents a 5.1-month supply2 at the current sales pace, unchanged from June. Listed inventory is 5.0 percent below a year ago, when there was a 6.3-month supply. “Tight inventory in many areas means above-normal price growth for the foreseeable future,” Yun said. The national median existing-home price3 for all housing types was $213,500 in July, which is 13.7 percent above July 2012. This marks 17 consecutive months of year-over-year price increases, which last occurred from January 2005 to May 2006. The median price has risen at double-digit rates for the past eight months, and is now 7.3 percent below the all-time record of $230,400 in July 2006. Two years ago, the median price was 25.7 percent below the peak. Distressed homes 4 – foreclosures and short sales – accounted for 15 percent of July sales, the same as in June and matching the lowest share since monthly tracking began in October 2008; they were 24 percent in July 2012. Continuing declines in the share of distressed sales account for some of the price gain. Nine percent of July sales were foreclosures, and 6 percent were short sales. Foreclosures sold for an average discount of 16 percent below market value in July, while short sales were discounted 12 percent.
An innovative real estate business model, or threat to the MLS? ‘Paper brokerages’ flying under the radar Andrea V. Brambila Associate Editor Sep 16, 2013 Editor’s note: This is the first in a four-part series examining website operators who use brokerage licenses to obtain shared listing feeds from multiple listing services to generate leads for other brokerages. Part 2 looks at how MLSs are struggling to interpret whether their rules allow “paper brokerages” and fears that denying them listings could violate antitrust law. Part 3 will examine whether website operators that obtain Internet Data Exchange (IDX) listings are complying with MLS rules governing their display. Part 4 looks at whether widespread adoption of the paper brokerage business model would undermine participation in IDX, and the MLS system itself. “Paper brokerages” — companies that join multiple listing services in order to access and display MLS listing data online, but don’t provide brokerage services to consumers — could be the next big thing in online real estate. But only if the traditional brokers who control the nation’s MLSs continue to tolerate them. Traditional brokers can opt out of providing their listings to national listing portals like Zillow, Trulia and realtor.com. But website operators who become paper brokerages — either by obtaining a brokerage license, or partnering with a licensee who can be their “broker of record” — are able to display Internet Data Exchange (IDX) listing “feeds” compiled by MLSs. IDX is typically an all-or-nothing arrangement: only brokers who have entered into reciprocal agreements allowing other brokers to display their listings may display IDX listings themselves. Since most or all brokers in a given market typically participate in IDX, consumers searching broker and agent IDX websites can see virtually all of the homes for sale in the MLS — not just those represented by one brokerage. For technology companies, multiple listing services are the holy grail of the real estate listing information that underlies many of their products. MLSs are also gatekeepers, often deciding who gets access to which types of listing data. But the reality is that the gate is full of holes, and industry experts do not agree on what that means for the future of the industry. “There is a gap in policy and enforcement here that is permitting businesses to enter the IDX and the MLS world without really being in the real estate business, in the business of buying and selling homes,” said Brian Boero, partner and co-founder of real estate marketing, design and consulting firm 1000watt. “The reaction to this or the lack of reaction to this is going to be worth watching because it kind of gets to this core question of ‘What is a real estate brokerage in two years, in five years?’ That’s really what is at the heart of this.” In many markets, paper brokerages seem to be flying under the industry’s radar, an Inman News investigation has found. They do so with the help of licensed real estate brokers who, in some cases, serve as the broker of record for multiple companies. Companies that have employed the paper brokerage model, or aspects of it — including RealEstate.com operator Market Leader, and Emeryville, Calif.-based ZipRealty Inc. — say they are driving innovation by finding new ways to deliver real estate information to consumers and connect them with agents.
But Inman News has learned that many MLSs are struggling to interpret whether their rules, which typically follow policies established by the National Association of Realtors, allow them to provide listings to websites operated by companies that aren’t actually representing buyers and sellers in their market. At the crux of the issue is deciding who qualifies as an “MLS participant,” and how to treat those who don’t meet the definition. A NAR policy stipulating that individual brokers and real estate firms must “offer or accept cooperation and compensation to and from other participants” to be considered MLS participants is aimed at excluding brokers who don’t list or sell properties from joining the MLS. But just because a brokerage isn’t representing buyers and sellers now, doesn’t mean they aren’t making good faith efforts to do so in the future. Further complicating the equation is that while traditional brokers may object to paper brokerages obtaining IDX feeds, MLSs could run afoul of antitrust regulators if they are too quick to reject companies that employ the business model (see Part 2). In some markets where companies employing the paper brokerage business model have obtained IDX feeds, MLSs also seem to be having difficulties enforcing rules that govern the use and display of IDX data, Inman News has learned. NAR General Counsel Laurie Janik told Inman News that portions of both RealEstate.com and ZipRealty.com appear to be out of compliance with NAR policies governing the display of shared listing feeds. But Janik also said that it’s up to individual MLSs to make such determinations and enforce their rules (see Part 3). Even if MLSs decide to let paper brokerages poke their noses into the IDX listings tent, there’s yet another obstacle to more widespread adoption of the business model. If the paper brokerage business model does take off, it could end up destroying the listings pipeline by undermining participation in the century-old MLS system. If MLSs can’t or won’t shut paper brokerages down, traditional brokerages that object to their listings appearing on paper brokerages’ websites might decide that they have only one option: pull out of IDX, the system that allows MLS members to publicly display each other’s listings, altogether (see Part 4). Often taken for granted today by consumers and real estate professionals alike, IDX was considered revolutionary when MLSs began to adopt it to help brokers compete with national listing portals that began to spring up during the 1990s dot-com boom. The IDX system was created to aggregate listings of “MLS participants” — brokers and agents — in individual markets, and provide a listing feed they could display on their public-facing websites. The IDX system allows any participating brokerage — and even individual agents with no listings of their own — to operate websites where homebuyers can search a comprehensive set of listings in a given market or region for homes that meet their criteria. Brian Larson, an attorney and consultant who was the chief staff executive for Minneapolis-based NorthstarMLS when it helped pioneer IDX in the late 1990s, has written that the “purpose of IDX is to ensure that brokers are unsurpassed as a source for real estate listing information on the Web.”
If brokers decided to pull out of IDX in significant numbers — perhaps leaving the MLS system behind altogether in the process – that would deprive MLSs of one of their most important roles: providing members with the most comprehensive and accurate set of public listing data available. Because they are not MLS participants, national “third-party” websites like Zillow, Trulia and realtor.com, can’t receive IDX feeds. Although third-party websites can obtain non-IDX listing feeds directly from brokers, or from MLSs and other listing aggregators, brokers usually have the right to “opt out” of having their listings appear on those sites (thanks to its ties to NAR, realtor.com gets listings from most of the nation’s roughly 950 MLSs, although a few brokers have opted out of providing listings to the site). In the summer of 2012, Market Leader — a company that provides leads and marketing software to real estate brokerages, franchisors and agents — startled some industry players by announcing that it had revived RealEstate.com, a website the company had purchased the year before from a national brokerage, and that more than 150 MLSs were providing IDX feeds with information on about 1.6 million listings to the site. Market Leader CEO Ian Morris told Inman News at the time that although the company was not providing brokerage services, it was a licensed broker and MLS member in each of the markets where RealEstate.com was getting an IDX feed. Inman News has since discovered that Market Leader obtained listings through a Georgia-based subsidiary, Fast Start Real Estate Services, that has obtained brokerage licenses in at least 38 states but has no sales agents (see Part 2). Boero blogged at the time that by continuing to operate RealEstate.com as an IDX site, Market Leader was in effect “raising a giant middle finger to MLSs, the spirit of IDX and, most significantly, to operating brokers.” Unlike Zillow, Trulia and realtor.com, “which have spent gazillions negotiating for voluntary access to listings from MLSs and brokers,” Boero wrote, “Market Leader, by virtue of its brokerage licenses, simply grabs the IDX feed.” Brokers in markets where Market Leader had obtained IDX feeds could not prevent listings they represented from appearing on RealEstate.com, unless they pulled out of IDX altogether. If they did so, they would no longer be able to display IDX listings on their own websites. (Market Leader has since been acquired by Trulia, which has pledged that it does not intend to operate RealEstate.com as an IDX site. See Part 4). ZipRealty — a national brokerage that operates a listing portal that gets more traffic than any other brokerage or franchisor website — has taken a more varied approach in bringing IDX listings to ZipRealty.com in markets where it does not provide brokerage services. As a cost-cutting measure, ZipRealty has closed down brokerage operations in 16 markets since January 2011. But the company has found a way to continue offering IDX listing search in many of those markets, providing referrals to other brokers through its “Powered by Zip” program. In some Powered by Zip markets, ZipRealty gets IDX listings by acting as a vendor for a partner brokerage. In other markets, ZipRealty has maintained its status as a licensed broker member of the MLS — despite the fact that it no longer represents buyers or sellers in those markets. Today, ZipRealty continues to represent buyers and sellers in 19 markets, while also offering IDX listing search on ZipRealty.com in 17 additional Powered by Zip markets.
Other tech-focused startups like Seattle-based Estately and Washington, D.C.-based Homesnap (which did business as Sawbuck Realty before rebranding) operate similar referral-based models. Estately, for example, does not represent buyers and sellers in all the markets where it is an MLS participant — just in those where MLSs required it to do deals to access their feeds, Estately CEO Galen Ward told Inman News in March. Ward said Estately prefers to refer deals to partner agents, receiving a 30 percent referral fee, but it is exploring adding in-house agents in some markets. Gregg Larson, president and CEO of real estate consulting firm Clareity Consulting, thinks more brokers should be making noise about paper brokerages, if only to spur their MLSs to enforce their own rules. Many MLSs’ laxity in enforcement undermines the IDX system itself, according to Larson. “They built the IDX rules for a reason,” Larson said. The whole premise of IDX, he said, is that everyone agreed to share their listings and create the most up-to-date, richest set of listing data available. But if paper brokerages are allowed to skirt MLS and IDX rules, “Why would you hold ZTR (Zillow, Trulia and realtor.com) to a higher standard? Why should brokers play by IDX rules?” Larson said. Victor Lund, founding partner of consulting firm WAV Group, also thinks the paper brokerage business model goes against the spirit of IDX rules, and that brokers should be concerned. “The rules and regulations are written in a way that permit lots of interactions with the listing data that were never intended. What [ZipRealty] is doing and what RealEstate.com is doing is not what IDX intended,” Lund said. The creators of IDX “didn’t anticipate somebody from Washington borrowing their listings in Florida,” he added. Boero has blogged that IDX has always been “the lifeblood of little brokerages that generate buy-side leads from big broker listings,” but it now also supports a growing number of paper brokers. “These companies have brokerage licenses, but do not actually broker property. They are, in reality, technology companies that build websites and apps powered by the listings provided by the ‘real’ brokers. They then sell the leads their websites or apps generate from the listings to — you guessed it — agents working for these ‘real’ brokers,” he wrote. “If anything is going to blow up the MLS, this is it.”
Inman News reporter Paul Hagey contributed reporting to this series.
A Huge Thumbs Up to Our Affiliates
Southwest Health Systems 565-6666 Colorado Land Title 564-9770 First National Bank 565-8132 Citizens State Bank 565-8421 Mortgage Solutions Financial 739-5758 Community Bank of CO 565-8589 American AgCredit 259-1540 Dolores State Bank 882-7600 Guardian Home Insp. 759-9500
Vectra Bank 565-4411 Cobalt Mortgage 565-8407 Four Corners Builders Assn. 565-1771 Mancos Valley Bank 565-5432 MD Title 565-8491 House of Carpets 565-9192 Top Line Floors 565-4877 Keesee Motors 565-8431
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Four Corners Board of REALTORS Oct. 2013 Newsletter