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Capital Area Realtor

®

The official newsletter of the Greater Capital Area Association of REALTORS®

May - June 2013

USPS: 017-467

Volume 19, Number 3

www.gcaar.com

GCAAR Purchases New Headquarters Building 15201 Diamondback Drive, Rockville, Maryland

On Thursday, May 16, GCAAR President Michael McGreevy was at the settlement table. He wasn’t representing a client or buying a home himself – he was signing and signing (and signing) the transaction documents for the purchase of a commercial building at 15201Diamondback Drive on behalf of your Association! The story of this purchase begins long before that Thursday afternoon in May, as most real estate stories do. GCAAR had been hoping to someday buy a home for many years - practically since its formation in 1998. It already owned the land underneath the building at 1355 Piccard Drive in Rockville, an investment it had inherited from one of its predecessors, the Montgomery County Association of REALTORS®. This land is leased to the group that owns the building, and for many years has provided a steady stream of non-member derived revenue for GCAAR. Owning the land is a solid investment, but it doesn’t provide the association a place to live. As a real estate organization, GCAAR’s Board of Directors and members know the value of owning where you live. We promote home ownership every day, with nearly every client we have. It makes sense for the Association that represents home ownership to own its own home.

location. The group was tasked with identifying a place that would allow the two current County locations (Georgia Avenue in Silver Spring and Key West Avenue in Rockville) to be consolidated, with an eye on finding a building to purchase.

With that goal in mind, and knowing the leases in both the Silver Spring and the current Rockville locations were expiring in 2013 and 2014, GCAAR’s 2011 President Adrian Hunnings appointed a Relocation Task Force to look at the options and make a recommendation to the Board of Directors on a new

Following an extremely thorough process, the task force, Chaired by 2012 President Bonnie Casper, worked with commercial brokers from Transwestern to analyze heat maps of GCAAR member home and office locations. continued on page 19

GCAAR Members Complete 2013 MAR Leadership Academy GCAAR members Diane Hayes and Pramedai “Cammie” Reed recently completed the Maryland Association of REALTORS® (MAR) Leadership Academy and were honored along with 16 other graduates in ceremonies held in Annapolis.

Diane Hayes receives her MAR Leadership Academy Award

The MAR Leadership Academy was formed by REALTORS® who understand the important role they play in their community and the need to enhance the leadership skills, knowledge, and competencies of fellow REALTORS® interested in making a difference in their personal lives and in their continued on page 19

Greater Capital Area Association of REALTORS® 8757 Georgia Avenue, Suite 600 Silver Spring, MD 20910

REALTOR®Fest is July 23 Join us for a day of education and networking on July 23 at the Bethesda North Marriott with dynamic instructors, exhibitors, and relevant courses designed to take your real estate career to the next level! DC licensees can earn CE credits all in one day! GCAAR members pay only $10 for Non-CE classes! Register at www.realtorfest.com.

July 23, 2013

Bethesda North Marriott

Tuesday, July 23 • 8:00 a.m. – 8:15 p.m. • Bethesda North Marriott • 5701 Marinelli Road • North Bethesda, MD

INSIDE THIS ISSUE Association News............................................................page 3 New Emeritus Members.........................................page 2 GCAAR in the News................................................page 3 Ask the President....................................................page 4 Board Briefs............................................................page 4 Reverse Mortgage Facts.........................................page 5

Meet Your GCAAR Staff & Committees ����������������page 5 NAR Director’s Report.............................................page 6 MRIS.......................................................................page 7 Womens Council of REALTORS® �������������������������page 19 Green Resources........................................................page 8 Technology/Tool Box...............................................page 9 Hump Day Happy Hour............................................page 9 MC & DC Market Report.......................................page 10

Membership Corner..............................................page 14 RPAC......................................................................page 14 GCAAR Cares........................................................page 15 MCRS Designation................................................page 15 Public Policy..........................................................page 16 Education Schedule..............................................page 21 Quiz.......................................................................page 22 Past President’s Luncheon....................................page 22

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2013 May - June

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Capital Area REALTOR®

Association News 2013 Board of Directors President Michael McGreevy

President-Elect Gregory Ford Secretary William H. Highsmith Jr. , JD, GRI

Maryland Students Illustrate the Importance of Fair Housing The Maryland Association of REALTORS® (MAR) and special guest Attorney General Douglas F. Gansler announced the winners of the annual Fair Housing Poster Contest during a recognition ceremony on April 24 at the Annapolis State House. Students representing 14 schools across the state received a certificate and a gift card co-sponsored by BB&T. As part of the contest, students were asked to illustrate the theme Diversity Makes Great Neighborhoods. The fourteen winning posters will be reproduced in colorful calendars which Maryland REALTORS® will distribute statewide to promote the principles of fair housing. The contest allows school children to express their ideas creatively while fostering the principles of equal opportunity in housing. Rachel Anthony of St. Elizabeth’s School in Gaithersburg was Montgomery County’s poster winner.

Treasurer Tim Knobloch

Immediate Past President Bonnie Casper

Chief Executive Officer Michael Moran

Directors

Koki Adasi David Bediz Jamie Coley Thomas Daley Suzanne Des Marais Carter Ferrington Dorie Glass Jacque Grenning Gwen Henderson Mynor Herrera Emiliana Victoria “Vicky” Lobos-Kirker Margaret “Peggy” Mancuso

Editor

Bobette Banks

Advertising Representative Arlene Braithwaite

Capital Area REALTOR® (USPS 017-467) is published five times a year by the Greater Capital Area Association of REALTORS®, 8757 Georgia Avenue, Suite 600, Silver Spring, MD 20910. Periodicals postage paid at Silver Spring, MD. Member subscriptions account for $10 of each member’s annual dues. Annual subscriptions are available to non-members for $25. Subscription inquiries may be sent to Capital Area REALTOR® at the above address. Copyright© 2013 by the Greater Capital Area Association of REALTORS®. All rights reserved.

L-R: “Q” Armstrong and Silvia Rodriguez, GCAAR members of MAR’s Equal Opportunity/Cultural Diversity Committee; Amy Ritsko-Warren, GCAAR’s Chief Operating Officer; Montgomery County poster contest winner Rachel Anthony and her family; and Hilde Pollard, Chair of MAR’s Equal Opportunity/Cultural Diversity and GCAAR member

GCAAR Welcomes New Emeritus Members! The National Association of REALTORS® Emeritus status is given to those REALTORS® who have 40 years of membership in the national organization. GCAAR is proud to congratulate the following members who have reached Emeritus status:

Louis Iaquinta Mary Fox

Larry Hammann Karen Conlan Maureen Cullinane Beale Cummings

POSTMASTER: SEND ADDRESS CHANGES TO CAPITAL AREA REALTOR®, ATTN: GCAAR, 8757 Georgia Avenue, Suite 600, Silver Spring, MD 20910. The Greater Capital Area Association of REALTORS® makes no warranties and assumes no responsibility for the accuracy of the information contained herein. The opinions expressed herein do not necessary reflect the opinions of the officers, directors or staff of the Greater Capital Area Association of REALTORS®. The Greater Capital Area Association of REALTORS® accepts submissions of articles and photographs and these items become the property of the The Greater Capital Area Association of REALTORS®. The publisher reserves the right of full editorial authority and to decline publication of any article not deemed proper. Deadline for all submissions, including camera-ready advertising on disk or film, is the first of the month prior to publication. Reprint with permission only. Reprint permission may be obtained by contacting the Greater Capital Area Association of REALTORS® at 301.590.2000; via fax at 301.590.2248; or via e-mail at bbanks@gcaar.com. REALTOR® is a registered collective membership mark that identifies and may be used only by real estate professionals who are members of the National Association of REALTORS® and subscribe to its Code of Ethics.

Capital Area Realtor®

Winners show off their art and certificates on the step of the State House with Attorney General Douglas Gansler and the MAR Equal Opportunity/Cultural Diversity Committee.

Gregory Smith Sonia Kammeyer Varkey Kallarakal Shoshana Kugler

in the

News

The Battle of the Buyers

The Washington Post May 17, 2013 “Maybe it’s a property that’s just waiting for a particular buyer. There are a lot of hidden gems out there.” - Bonnie Casper, 2013 GCAAR Immediate Past President “To avoid a bidding war, stay away from fixeruppers, which are hot properties these days.” - David Bediz, 2013 GCAAR Board Member

Serving the Business Needs of OUR Professionals

Neighborhood Profile: Bloomingdale

The Washington Post June 7, 2013 “In the past six months, prices and demand have been higher than they’ve ever been, with many listings going quickly with multiple offers.” -Suzanne Des Marais, 2013 GCAAR Board Member

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Ask the President Michael McGreevy 2013 GCAAR President

Board Briefs

Q. What position (if any) does GCAAR take on “pocket listings”? I find it’s becoming more of a common practice and it’s really making life difficult in my market, plus I don’t think it’s ethically right. What do you say? A. Thanks for your question. From the standpoint as the Association’s President and not that of an office manager or practicing agent, it’s no secret that our market (for the most part) is hot! Homes in certain sub-markets are being sold within hours, days, or even before it even hits the open market. It’s important to try and define a “Pocket Listing” before we address GCAAR’s position. Since there is no listing agreement that I’m aware of titled “Pocket Listing,” it is more of a term used that summarizes certain types of practices a listing agent may use to get the listing sold. Essentially, it is a private exclusive listing that is not placed in the MLS, one of the greatest exposures any seller could ever have to reach the largest pool of possible buyers for their home. Instead of placing the property into the MLS, the listing agent provides information about the home to their own buyers and/or colleagues within the same brokerage firm in hopes of a quick in-house sale. This practice is growing in our area and has been estimated to make up close to 20% of the listings nationwide. It is argued that by restricting access to information about homes for sale to a relatively small number of potential buyers, the listing agents and their Brokers are not fulfilling their duties to the sellers and most likely not obtaining the highest possible prices for the homes. Just think what accumulative effect that has to our neighborhoods, communities, and our entire market area over time. A good example is a case where a home is on the market and listed through the MLS and other marketing methods. Within a short period, multiple offers were presented to the sellers resulting in the property selling for tens of thousands of dollars above the listed price. It would be highly unlikely that the same sellers would have sold their home with the same outcome, because of the limited exposure inherent of a pocket listing. The absence from the MLS of large numbers of properties for sale, especially if they are concentrated in a single-price tier like luxury, diminishes the accuracy of listings-based market price reports that consumers and professionals rely upon to track market trends. There are agents that argue there is a good case for keeping things private. Some sellers may not want to have hundreds of strangers walking through their homes, they don’t want to bother with the constant upkeep while having their home on the market, don’t want neighbors to see a sign in their yard or have the attention an open house brings. If the sellers can get a price they’re happy with and can do it without all the fuss, then why not do what the sellers want? I understand both sides of the argument. However, the argument should not be between us as fellow Realtors®, but more so, we should be documenting our conversations and disclosures to sellers on the pros and cons of a “Pocket Listing” or as I know it, a Private Exclusives Listing. Only then can the sellers decide what is best for them. Sellers should be fully informed of their alternatives and the possible pros and cons of each. The fact is that our first responsibility is a fiduciary responsibility to act in the sellers’ best interest and with a pocket listing, one must take care not to violate that fiduciary responsibility. Disclose, consult, and get it in writing! Remember the REALTOR® Code of Ethics that you, and all Realtors®, subscribe to. It is that living document which separates us from non-REALTORS®. So please embrace the REALTOR® Code of Ethics, embody its meaning, and help to enforce it among your peers.

The GCAAR Board of Directors met on April 19, 2013 in our Rockville Office. The Board voted unanimously to move forward with the purchase of a new Association headquarters office building located at 15201 Diamondback Avenue. In accordance with the Association’s bylaws, a Special Membership Meeting was held on May 10, 2013 to request approval of the recommended financing package. The Board congratulated GCAAR members Diane Hayes and Cammie Reed who both graduated from the MAR Leadership Academy class of 2013! The Association was once again a major sponsor of the Montgomery County Affordable Housing Conference in 2013. GCAAR Director Mynor Herrera serves on the MCAHC Board of Directors. 2013 Immediate Past President Bonnie Casper moderated a discussion on Micro Units - Is Small the Next Big? The Contract and Clause Committee has modified several GCAAR forms in 2013 including the Listing Agreement, the Montgomery County Jurisdictional Addendum to the Listing Agreement, and the Short Sale Addendum to the Sales Contract. For a complete list of all forms and revisions, visit www.gcaar.com. The Community Service Committee has been busy. GCAAR again sponsored a Rebuilding Together® project and a forum on Senior Realty Law. GCAAR Officers and Directors attended the Annual National Association of REALTORS® Midyear Legislative Meetings May 13-18, 2013 here in Washington, DC. GCAAR members have already invested over $130,000 in the REALTOR® Party in 2013! Please join thousands of your fellow REALTORS® and support the REALTOR® Party by making your investment today! Invest online at www.gcaar.com.

Bonnie Casper Talks Compact Housing at the Montgomery County Affordable Housing Summit As rents rise in housing markets like New York, San Francisco, and Washington, DC, radical new strategies are developing to deal with affordability. In an economy of declining real wages, and no new rent supplements at the local or national levels, renters have learned to double up in small units and simply use less space. On the optimistic assumption that lower rents will come from smaller units, thoughtful leaders, designers, and architects in New York have reinvented the apartment with areas down to 250 square feet using clever, flexible furnishings to capitalize on radically limited space. GCAAR’s Bonnie Casper moderated a panel discussion on MicroUnits: Small is the New Big! at the 2013 Affordable Housing Conference Summit at the Bethesda North Marriott Conference Center on Friday, May 10, 2013. Panelists were: David Friedlander of LifeEdited, Donna Pesto from the Fairfax County Planning Department, and Michael Wiencek of Wiencek + Associates Architects and Planners.

Thank you.

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2013 May - June

Serving the Business Needs of OUR Professionals

Capital Area REALTOR®

GCAAR Brings Reverse Mortgage Facts to DC Senior Center

Meet Your GCAAR Committee Property Management

The 2013 GCAAR Cares Committee dipped its toe into new territory this spring by offering a free educational seminar on reverse mortgages to a group of homeowners at the Model Cities Senior Wellness Center in Northeast DC on May 8. Committee member Chuck Clapper from George Mason Mortgage facilitated the hour-long event, presenting the basics of reverse mortgages and fielding dozens of questions from attendees.

The Property Management Committee reviews the association’s current standardized property management forms, makes recommendations on revisions, and creates new property management forms as needed. The committee meets monthly. 2013 Roster Sally Hamidi, Chair GRI Jean Poitevien, Vice Chair Cynthia Davis Mitchell Farrah Tyler Graham Harold Huggins, CCIM, CPM, CRB, CRS, GRI Richard Humrichouse Ernest Knight, CRB, CRS, GRI

Tim Knobloch, CRS, GRI Lewis Laws Larry McAdoo Dawn Mixon Matthew Rogers Charles Sullivan, ABR, CRS, GRI Shahnaz Tehraniazad Andrew Turczyn, GRI Cedron Williams

Meet Your GCAAR Committee Professional Standards Any GCAAR REALTOR® member who has served at least one three-year term on the Grievance Committee is eligible to apply for membership to the Professional Standards Committee. Members sit on hearing panels for Code of Ethics violations and contractual and non-contractual disputes. The committee meets quarterly. 2013 Roster

Elder citizens learned about reverse mortgages, predatory lending, and other real estate matters at the Senior Law Realty Seminar sponsored by GCAAR Cares.

 

Roger Carp, Chair CRP, CRS, GRI Jeffrey LaRocque, Vice Chair GRI Thomas Bennetts, CBR, CRS, GRI Sara Lou Cardwell, CBR, CRS, SRES Mark Coakley, CRS Lori Connor Amy Fisher, CBR, CRS, GRI Eleonore Gerstenfeld, GRI John Gill, Jr. Lee Goldstein, GRI James Higgins

Harold Huggins, CCIM, CPM, CRB, CTS, GRI Anne Killeen, CRS, GRI Joy Liberti, GRI Gerard Occhiuzzo, CRB, CRS, GRI Eugenia Park Bonnie Roberts-Burke Sharrod Robertson Marjorie Rosner Frank Snodgrass, GRI Maureen “Mo” Snowden, CRS, GRI Leslie Weightman, CRS, GRI

L-R: Roger Carp, Chair; Staff Liaison, Yvette Robinson; Jeffrey LaRocque, Vice Chair

 

 

Capital Area Realtor®

Serving the Business Needs of OUR Professionals

2013 May - June

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NAR Director’s Report Michael McGreevy 2013 GCAAR President NAR Director

designation more realistic given real estate practitioners’ time constraints and adjust to the expectations of younger practitioners.

Professional Standards

In the area of professional standards, the Board amended the NAR Code of Ethics and Arbitration Manual to: The National Association of REALTORS® (NAR) held their annual Midyear Meeting and Expo in Washington, DC May 13-18. The meetings focus on the Association’s national legislative agenda and give thousands of REALTORS® from across the county the opportunity to meet with their elected national representatives to discuss issues of importance to the housing industry. The NAR Board of Directors met on Saturday, May 18 and voted on a number of proposals. Highlights include:

Public Advocacy

The Board gave the Public Advocacy Campaign a new name - the Consumer Advertising Campaign - to better describe the campaign and reduce confusion with NAR’s other public advocacy efforts, and it approved the continuation of the program in 2014, 2015, and 2016. The Board also approved continuing the $35 special assessment to pay for the campaign over the next three years.

GRI Designation

It also approved a Professional Development Committee recommendation to reduce from 90 to 60 hours the time commitment for earning a Graduate REALTOR® Institute (GRI) designation. The goal is to make the

• Make clear that ethics complainants must be individuals (and not corporations or other business entities), and that complaints cannot be brought in the name(s) of third parties. • Clarify that the role of grievance committees is limited to determining whether a complaint should be heard by a Professional Standards panel and to limit their review of material to make that determination. • Let hearing panels include information about a member’s prior violations. • Let associations offer mediation services when a dispute is nonarbitrable. • Improve consistency in the charging of administrative processing fees by requiring associations to determine in advance whether, and under what circumstances, they’ll impose the fees. • Raise maximum fees for violations of the Code to $15,000 from $5,000, the same maximum fine that MLSs may impose. • Expand the scope of Standard of Practice 3-2, which interprets Article 3, to make it unethical to unilaterally attempt to modify offered compensation after an offer to purchase has been submitted to the listing broker.

Capital Area Realtors

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Outside of the parade of meetings and networking opportunities, there were great discussions on the new flood maps and the impact they will have on the ability to secure insurance, and a lively discussion on how REALTOR®.com competes on the ever-competitive bandwidth space for the home buyer’s attention when they go online to search for properties. One morning while speaking with a REALTOR® from Fort Wayne, Indiana on a 10th floor balcony of the hotel, he commented on what a great city we have and how our real estate market is the envy of many REALTORS® across the country. I grinned in agreement, and as I panned the vibrant Washington, DC skyline (as much as I could see that is), I counted 18 construction cranes! I’m sure there were dozens more tucked behind buildings or just out of sight to me. I thought about the thousands of jobs and hundreds of millions of dollars our housing market creates and the important role each REALTOR® plays in the process. It is hard to describe the humility I feel being fortunate enough to live, participate, and practice real estate in this area, and to support my fellow REALTOR® professionals.

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That’s it for my report. I wish all of you a great and productive summer!

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Call today to apply!

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Phone: 240-314-0734

Phone: 240-314-0734 Phone: 240-314-0734 RS

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- Michael McGreevy

Not Receiving GCAAR E-mails? Contact GCAAR’s Communications Department to get plugged in again at communications@gcaar.com.

105-A W. Edmonston Drive • Rockville, Maryland 20852

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    With the new Keystone, you can add more listings in less time! Thanks to a few intuitive, user-friendly updates and enhancements, we think you will find the new Keystone easy to use right from the start. Here are 5 ½ ways entering listings just got easier.

 

5 ½ Time-Saving Features of New Keystone!

1. Keystone Navigation is faster now that all of the sections are displayed on one page. Plus, you’ll save time by not having to click “save and continue” to input your listing. 2. New real-time “red alerts” let you know at a glance how many mandatory fields you have left to fill in before you can submit your listing. Also, simply clicking on those alerts will take you directly to the sections that need your attention. 3. The process to select rooms and add levels has changed. Instead of having to search through a list of all rooms, you can select which rooms you want to add and give specific details on each. 4. Keystone can now automatically save your work for you. Use your preferences to set auto-save intervals from once every minute to once every 15 minutes. 5. New keyboard shortcuts let you move through the listing fields even quicker than clicking. You can tab, type and Ctrl+I your way through Keystone easily.

Add and edit listings in ½ the clicks with the new Keystone! Visit MRIS.com/KeystoneHelp to sign up for in-person or virtual training, watch videos or take a look at our series of helpful Quick Tip sheets. Keep up with all of the Keystone and other product initiatives scheduled for this year by visiting MRISblog.com, liking MRIS on Facebook, and following @MRIS_REal_News on Twitter! Are you running up to speed? Don’t forget that the Internet browser you use can impact the speed of websites you visit including Keystone and Matrix. If you use an older version of Internet Explorer like IE 7 or 8, your systems may be running slower than you realize. Now, you can go to MRIS.com/Browser to determine what browser you are using and decide if it’s time to upgrade!

 

 

 

 

Reverse Mortgages Topic of Women’s Council of REALTORS® Breakfast The Greater Capital Area chapter of the Women’s Council of REALTORS® (GCA WCR) discussed leadership at their monthly meeting on June 19 at the Norbeck Country Club. Mary Antoun, CEO of the Maryland Association of REALTORS® (MAR) shared a few pearls of wisdom on leadership given to her by a former MAR president, Arthur “Otts” Davis III. These simple tenets include: • Let us train our minds to desire what the situation demands. • Never listen to your voice at your lowest moment.

“Agency” Cast: L-R: Diane Hayes, ReMax Premiere Selections; Mitch Morris, First Heritage Mortgage; Hildy Pollard, Weichert; David Palmer, ReMax Premiere Selections

• Gentlemen, we are out of money; I’m afraid we’re going to have to think! • Question to a blind man: Is there anything worse than losing your sight? The blind man replied, “losing your vision.” In addition, Broker David Palmer from ReMax Premiere Selections performed a skit on “Agency” with a team of able thespians – Diane Hayes from ReMax Premiere Solutions, Mitch Morris from First Heritage Mortgage, and Hildy Pollard from Weichert. David and his “cast” excellently depicted the different types of agency scenarios, and reminded the audience what REALTORS® should do when confronted with these types of situations. Join GCA WCR for its next meeting on July 17, where Affordable Housing will be the topic. Monthly meetings are held at the Norbeck Country Club in Rockville on the 3rd Wednesday of each month from 9:00 a.m. to 11:00 a.m. For information regarding membership and programs, please contact Gwen Henderson at Gwen.Henderson@lnf.com

Capital Area Realtor®

 

2013 GCA WCR President Gwen Henderson with MAR CEO Mary Antoun

Serving the Business Needs of OUR Professionals

2013 May - June

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Green Resources GCAAR’s Green Committee Takes Part in Bethesda Green’s Solar & Green Expo GCAAR’s Green Committee participated in Bethesda Green’s fourth annual Solar & Green Home Expo on Saturday, May 11. The Expo featured many green home expert services, as well as the Montgomery Department of Environmental Protection.

Green Committee Chair Lili Sheeline at Solar & Green Home Expo

The event provided home owners an opportunity to get the latest information about incentives to green their homes, such as Bethesda Green’s energy tool lending program where they can borrow tools to see how much energy is consumed in their homes. Green Committee members discussed how GCAAR was an educational resource for home owners and raised awareness of how REALTORS® help clients interested in greener living. Bethesda Green is a non-profit organization that seeks to bring business, government, and community together through programs and services to promote a healthy economy and sustainable living practices in order to reduce our collective impact on the environment. Learn more at www.bethesdagreen.org!

Montgomery County & DC Governments Amp Up Their Online Green Resources All across the country, state and local governments are investing in online resources to make their eco-friendly services more accessible to consumers. DC and Montgomery County are no different—www.mygreenmontgomery.org and www.green.dc.gov are comprehensive websites to make going green easier in your neighborhoods. “My Green Montgomery” is an initiative of the Montgomery County Department of Environmental Protection and is supported by several County departments and agencies. The site is designed to help County residents find local programs, services, resources and answers to environmental questions in one place. It is also intended to inspire residents by sharing testimonials and stories of others who have utilized green resources. “Green Energy DC” is a single resource for all you need to know about energy efficiency and renewable energy programs, products, and services in the District of Columbia. Mayor Vincent Gray has made sustainable living one of the main priorities of his administration and Green Energy DC aims to connect private and public entities in achieving that goal. Check out both websites to see how your community can help you be more environmentally conscious in your business or in your home!

Bikeshare Increases in Montgomery County The Montgomery County Department of Transportation recently contracted with Alta Bicycle Share to bring the Capital Bikeshare program to Montgomery County. It will operate with other Capital Bikeshare programs throughout the region. Areas include Takoma Park, Silver Spring, Friendship Heights, Bethesda, and Medical Center making it easier than ever to get around—especially at rush hour!

UPDATE: Appraisal Institute Green & Energy-Efficient Earlier this year, the Appraisal Institute released an updated Green & Energy-Efficient Green Addendum intended to help analyze values of green and energyefficient home features. The new form specifically provides an opportunity for a property to be identified as certified to the ICC 700 National Green Building Standard (NGBS), as well as LEED. Learn more at http://www.appraisalinstitute.org.

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2013 May - June

Serving the Business Needs of OUR Professionals

Capital Area REALTOR®

Technology / Tool Box NAR Introduces Repurposed Apps Website

Reign In Your Address Book!

NAR’s Center for REALTOR® Technology has introduced Repurposed Apps, a website for members to engage each other, recommend, and share apps that they use in their daily workflow.

Contactually manages your contacts and strengthens your relationships by prompting you to take meaningful action. With Contactually you can:

Go to www.repuposedapps.com and start sharing!

Contactually Helps You Focus on the Right Contacts

Too Many Business Cards?

Get Them in Order with LinkedIn’s CardMunch

Effortlessly create your complete address book from email, social networks and CRMs. Contactually will automatically bring all of your contact records into a single online address book so you can manage your contacts with ease, all from one place.

When you meet people at a conference or networking event and exchange business cards chances are you may be adding to a growing pile of business cards waiting to be processed. CardMunch turns business cards into contacts by quickly scanning business cards and importing information into LinkedIn. This makes it easier to connect and follow up with people. Best of all, CardMunch is a free iPhone application.

Reach out to your most important contacts regularly and in a meaningful way. The system will automatically prompt you to reconnect with your most important contacts when it matters the most, by giving you helpful context clues like social updates and recent conversations to help you connect in a personal, genuine way.

www.cardmunch.com

www.contactually.com

GCAAR’s “Hump Day Happy Hours” Network with a Purpose GCAAR kicked off its “Hump Day” Happy Hours this year, and in keeping with President Michael McGreevy’s request, the happy hours have evolved from just a place to sip and nosh, to events that allow members to “network with purpose,” as evidenced at the Soles 4 Souls® Happy Hour at Rosa Mexicano on May 1. Members brought over 100 pairs of shoes for the charity. If you haven’t been to one yet, make plans to attend the next GCAAR Happy Hour so you can do good while having a good time!

 

Shoes galore!

L-R: 2002 GCAAR President Dale Mattison with GCAAR Board Members Jamie Coley and Gwen Henderson

L-R: GCAAR Board Member Koki Adasi, Jim Savitz, Village Settlements, GCAAR President Michael McGreevy, GCAAR Board Member David Bediz at the March 27 Happy Hour event at Twisted Willow.

 

 

Thanks again to our Hump DAY Happy Hour sponsors! May 1: Embrace Home Loans, The Speier Law Firm, My Marketing Matters, First Savings Mortgage Corporation, Gemini Title and Escrow, Village Settlements March 27: Village Settlements

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Capital Area Realtor®

Serving the Business Needs of OUR Professionals

2013 May - June

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MC & DC Market Reports Fred Flick, Ph.D. Consultant/Housing Economist

Year-to-date through April, the Maryland housing market has been continuing to show solid growth. Property sales total 16,540 units, and they are up 9% from the first four months of 2012. The average price of $283,443 has risen 4% from the comparable 2012 figure; and, the median price of $239,417 is up 4.6%. For the month of April, sales totaling 5,192 homes jumped 14% from a year ago. Statewide, the April average home price came in at $304,830 -- 2.3% above a year before. Correspondingly, the median price of $258,093 was up 3.3%. On the supply side, the overall statewide inventory included 23,609 properties, equating to a 4.5 months supply at the April sales rate. That is a shorter months supply than at the same time in 2012.

Montgomery County Sales Market

In Montgomery County, the April unit sales volume came in at 985 properties, up 13% from a year ago. The sold dollar volume totaled $485,609,222 and bounced up almost 20% from a year before. The average sold price was $493,004 – rising over 6%; and, the median price of $402,550 jumped over 10% from a year ago. Also, properties turned over faster than earlier in the year. Average days on the market totaled 50, and were almost 32% below those of the year before. Furthermore, the ratio of average sales price to original listing price was 97.3%, up 3.2% from last year. Active listings totaled 1,955 properties, but this level declined 29% from that of April 2012.

While sales rates have been solid, given the tight inventory, single-family prices have been only slowly moving up. Year to date, the average sales price was $537,916, and the median was $430,000. In 2012, the average single-family home sold for $529,026 and the median priced property cost $425,000. Doing the math, through April average and median prices are up only 1% to 1.5% from last year. This is the middle of spring and with the tight inventory, we usually would expect larger prices increases. Buyers are being careful about how much they pay, especially with the lean selection of homes.

APRIL Single-Family Homes The April year-to-date settlements pace was up solidly over a year ago, but contracts rose only marginally. Year-to-date single-family settlements (2,210) rose 8.7%; and monthly settlements (760) bumped up over 10% from a year before. However, April year-to-date contracts (3,163) were up by only 1.7% from last year. Nevertheless, new contracts for the month (1,085) rose almost 10%.

APRIL Condominiums and Cooperatives Through April there were 1,033 condo/coop contracts -- an increase of over 11% from a year ago. Furthermore, new contracts for the month (307) jumped by 26% from a year before. Settlements also did well. Year-to-date settlements (765) were up almost 17%. And, 227 new monthly settlements jumped 22% from April 2012.

As we have been observing, the listings volume was much lower compared to 2012. Total single-family active listings of 1,690 properties were 26% below those of last April. However, the inventory level is the highest so far, comparable to that between last October and November. On the bright side, 1,420 monthly new listings were almost 17% above the level a year ago. But, at the April contracts pace, there was only about a 1.6 months supply of properties. This ratio is only slightly lower than earlier in the year.

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However, the supply problem still looms large. April condo/coop inventory continued to stay below corresponding 2012 levels. More specifically, total actives through April (427) were 23% below last year’s comparable level. On the other hand, April new listings (381) rose almost 51% above last year’s level. However, at the April contracts pace, there was only a 1.4-months supply of properties. This ratio was the same in February.

APRIL Single-Family Homes The Washington, DC single-family sales market continues to gradually improve compared to last year. Year-to-date contracts were up only 1.6% (1,430) with April single-family contracts (453) rising only 1.8% above a year before. However, year-to-date settlements (1,136) moved up 6.8% and new settlements in April (325) were up 7.6% from the same period in 2012.

As we would expect, average prices have risen; but, the median has fallen. For all of 2012, the average and median sales prices were $250,738 and $208,225, respectively. Thus far, through April, the average price of $257,334 was up 2.6% from 2012. However, the median price of $203,000 was 2.5% below the 2012 median. Since it is still early in the buying season, there is time for the median price to move up.

The District’s single-family inventory continues to be down significantly compared to a year before. April active listings totaled only 614 properties. This was almost 30% below those in 2012. Similarly, new single-family listings for the month (546) jumped over 8% from a year before.

Washington, dC Sales Market

So far, the District’s unit sales pace has been up substantially. In April, it totaled 649 properties, rising almost 14% from a year ago. And, the sold dollar volume was $356,560,979 – jumping over 20% from the previous year. The average sale price was $549,401-- up 6%; and the median price was $470,000 -- a 4.7% increase from last April. The average sales price to original listing price ratio was 99.5%, up almost 4 percentage points from a year before. April inventory included 1,084 total actives that were down 35% from a year ago; but the 1,060 new April listings bumped-up over 17% from a year before.

Capital Area Realtor®

Year-to-date home prices have slipped from the levels in 2012. Last year, single-family average prices jumped 11% compared to the average for 2011. And median prices bounced up18%. This year, through April, the average single-family home cost $651,613 with the median at $526,275. Both these prices are down almost 1% from the 2012 yearly average and median. With the tight inventory, we usually expect them to rise as the selling season progresses.

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MC & DC Market Reports, continued from page 11

So far through April, condo/coop prices averaged $439,905 and they are up almost 2.5% from the 2012 average. Continuing a recent trend, lower-priced units have seen more appreciation. Through April, the median price of $399,999 rose almost 5.3% compared to the $380,000 figure for 2012.

APRIL Condominiums and Cooperatives The Washington, DC condominium and cooperative market continues to show strength in both unit sales and price appreciation. Year-to-date April contracts (1,322) were up 15% and settlements (1,063) were up almost 23% from a year ago. Similarly, monthly contracts (434) jumped 26% over those of April 2012. And, monthly settlements of 325 properties bounced 19% from a year before. Housing Industry Production April’s 853,000 new private home starts (a seasonally adjusted and annualized rate, or ‘saar’) were down about 17% from the March rate, but were 13% above the April 2012 rate. Total privately owned housing permits (1,017,000 saar) were up 14% from March, and were 36% above the April 2012 rate. However, single-family permits (617,000 saar) were only 3% higher than in March, but were almost 28% higher than in 2012. Builders are concerned about overproduction, and recently, are tending to cut back supply to maintain prices. Also, land and materials prices have been increasing. New residential home sales in March totaled 417,000 units (saar). This figure was 1.5% above the February rate and 18.5% above the estimate for March 2012. The national new home inventory was tight with only 153,000 properties, or a 4.4 months supply. However, price performance was mixed. The average price of $247,000 was 3% above a year before; but the $279,900 median was down 1.3%. This softening in prices has affected builder’s confidence. As in the single-family market, condo/coop inventory continues to be incredibly low relative to the same period in 2012. So far, January logged the lowest level at just 465 actives. There has been steady improvement through April to a total of 560 listings, but these are still 34% below last April. But, new April listings of 517 units were up over 29% from April 2012. Nevertheless, at the current contracts pace, there was only a 1.3 months supply of properties and supply has tightened since the first quarter of the year.

For all of 2012, total existing home resales hit their highest point in five years with the 2012 December inventory representing a 4.9 months supply. In March, they hit 4.92 million (saar) and were up 10.3% above March 2012. The median price came in at $184,300 (up 11.8% from a year before) with the $233,200 average up 10%. As in our region, lack of inventory is still a big problem for the national housing market. At the end of March only 1.93 million resale homes were on the market, a 4.7 months supply. This is only slightly better than the 4.5 months supply at the end of December, and less than the 5.9 months average for all of 2012. For the single-family market, March sales slipped less than one percent (4.32 million, saar) from February, but were 9% above the pace of March 2012. Moreover, the single-family median price ($185,100) jumped 12% and the average ($233,600) was up 10% from a year ago. In the existing condo/coop market, sales (600,000 saar) declined 3.2% from February, but jumped 20% from March 2012. Furthermore, the national condo/coop median price came in at $178,900 -- up 10.4% from a year before. The average price ($230,200) rose 10.4%.

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Economic Growth and Jobs For the first quarter of 2013, real GDP increased 2.5% after a poor 0.4% performance in the fourth quarter of 2012. This pick-up was due to an increase in inventory investment, especially in manufacturing. Also, consumer spending on utilities increased, and U.S. exports were up as well. Stronger housing markets have also contributed to this economic growth. The Bureau of Economic Analysis final estimate for 2012 real GDP showed an increase of 2.2%. In general, the economy has been hovering around a 2% average real growth rate over the past couple of years and seems to be on a stable growth track. However, still there are fears that something could throw it off into a recession. The April jobs report indicated that nonfarm payroll employment increased by 165,000 new jobs and the unemployment rate edged down to 7.5%. The numbers from the previous two months were also adjusted upward. Most April new jobs were in retail and business-services sectors, but manufacturing showed some weakness. Nevertheless, the overall direction is positive. Monetary Policy, the Debt, Interest Rates, and Inflation Given our slow growth rate and low inflation rate, we should see low interest rates for at least another year or two, unless something very bad happens with the international situation. Europe and Japan are now starting to pump-up their economies the way the Fed has been doing since the great recession began. There is concern that this could create more international inflation, but the Fed still is sticking with its policy of buying government securities. The great inflation has yet to materialize. The government is also waiting to see the impacts of the sequester cuts, but many have not kicked-in yet. Congress has drafted legislation to give

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the executive branch more leeway on administering them. Furthermore, the positive economic growth rates have generated more tax revenues than anticipated, so it looks like the federal government will not need the debt ceiling raised until mid- or late-summer. And, Freddie Mac and Fannie Mae have recently made large payments into government coffers since their profits are up. This has softened the rhetoric on the budget deficit. Indeed, several conservative economists and members of Congress are realizing that the real problem is jobs, not the budget deficit, and that austerity creates more problems than it solves at this point in the cycle. Over the past four years (recovery began in summer 2009) conservatives railed at the Fed about creating money by buying bonds from banks and other investors. However, so far we have little to no inflation, slow growth, but new jobs have been created. The major downside has been the forced low interest rates, high bond prices, and rapidly rising stock prices. Everybody is concerned about what will happen when the Fed money spigot is cut back. The Fed has pumped up asset prices and they will likely decline when the Fed pulls back. The questions for investors are when and how much? The Fed is betting it can wind-down slowly enough to avoid major crashes and panics. Nobody has a date on this. Mortgage Interest Rates The Freddie Mac survey for the third week of May showed that average mortgage interest rates are still low, but higher than in mid-April. In those results, the 30-year fixed-rate mortgage averaged 3.51%, while 1-year adjustables (ARMs) averaged 2.55%. Fifteen-year loans came in at 2.69% and 5/1-yr ARMs were affordable at 2.62%. At the beginning of the year the 30-year fixed rate was about 17 basis points lower, although 1-year ARMs were 2 basis points higher. The Fed plans to continue its policy of buying mortgage securities and long-term Treasuries as needed; however, if the jobs market continues to improve, at some point it will slow down or curtail these purchases. No one has a date. Consumer Prices and Energy Costs The April Consumer Price Index increased by only 1.1% over the past year – a pretty low level of annual inflation. During this period there were decreases in the price of gasoline and fuel oil, although electricity and natural gas increased. Food costs rose modestly. When food and energy are taken out of the April index, the annualized “core” inflation still was only 1.7% -- its smallest 12-month increase since June 2011. On a monthly basis, the overall CPI index decreased by 0.4% in April, and it had declined 0.2% from February to March. Examining the key components of the index, over the previous year: food prices edged up 1.5%; housing shelter costs (mostly rents) rose 2.2%; and, apparel prices rose only 0.3%. While, medical care services rose 3.4%, medical care commodities were up only 0.7% from April 2012. Energy commodities declined 8.1% -- gasoline dropped 8.3% and fuel oil fell 5.6%. Energy services (electricity and natural gas) increased 2.6%. Over the past few months, annualized inflation seems to be pushing down toward 1%. This is less than in earlier years in the recovery, and a concern for Fed policy makers who prefer a rate closer to 2%. The Bottom Line So far, 2013 is starting out at a cautious pace. Real estate sales and prices in Washington, DC and Montgomery County, as well as other surrounding areas, greatly improved in 2012, but so far they are a mixed bag. Low inventory has been a real problem, with many owners not listing due to economic uncertainty or concerned with getting a top price. Condominiums and cooperatives have been doing quite well, but the single-family market has been on a slower track. We had a good year in 2012; but, at this point, it looks like 2013 will be a harder slog.

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Membership Corner NAR Benefits

The National Association of REALTORS® (NAR) offers many REALTOR® insurance benefits such as: REALTORS® Core Health Insurance provided by SASid and United States Fire Insurance Company in partnership with NAR. - Access to exclusive limited medical insurance rates and plans for NAR members between the ages of 18-65. - Plans start as low as $70.69 per month - Next-day coverage is available For more information, visit www.REALTORSCoreHealthInsurance.com or call 877-267-3752. REALTORS® Dental Insurance provided by SASid and Ameritas in partnership with NAR. - Exclusively for NAR members and their families - Plans include coverage for preventive, basic, and major dental expenses - Most plans include extra benefits such as orthodontia, professional whitening, and more. For more information, visit www.REALTORSDentalInsurance.com or call 877-433-5845. Drug Card America provided by SASid to NAR members. - Free discount prescription card (60% on generic prescriptions, and up to 15% on name brand prescriptions) - Card is activated instantly upon signing up - Accepted at over 60,000 pharmacies nationwide (including CVS, Walmart, Target, Rite Aid, and more) For more information, visit www.drugcardamerica.com/NAR or call 877-267-3752.

SentriLock Tip: Having trouble verifying who has visited your listing? 1. Log into your SentriLock account using your SentriCard. 2. Click on the My Lockboxes tab. 3. Under Search Field select “Serial Number” in the drop down menu. 4. In the Search Value box, enter the serial of the lockbox, and enter “Search” 5. Under Access Log, click on “View” 6. Once the Access Log Date Selection box appears, you have the option of choosing from the following options: -Show accesses since last listing assignment -Show all accesses -Show past____days -Show accesses from_____ to _____ 7. Choose one of the above options, and click “View Log”

Are you open Saturdays? Our Rockville location is open on Saturdays from 10:00 a.m. to 3:00 p.m. (except holiday weekends) to service you. Come by and visit us!

WARNING: Don’t Give Your SentriCard® to Others We’d like to take the opportunity to remind all of our members of SentriLock’s policy regarding sharing SentriCards®. SentriLock’s system only allows one SentriCard® per agent for security reasons. If a customer service representative becomes aware of an “Invalid Cardholder” during the verification process, that SentriCard® will be terminated. This policy has been implemented as a security feature.

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Thank You 2013 RPAC Investors!

Golden “R” Bonnie Casper GCAAR Carole Maclure Dale Ross

Crystal “R” Jamie Coley Jane Fairweather Fred Kendrick Jill Michaels Michael Moran

Sterling “R”

Koki Adasi Briana Ayala Douglas Carter Thomas Daley Suzanne Des Marais Greg Ford Brandon Green Harold Huggins Adrian Hunnings Ellen Katz Tim Knobloch Dana Landry Alana Lasover Peg Mancuso

Michael McGreevy Bo Menkiti Shelly Murray Frank Pietranton, Jr. Leigh Reed Scott Reiter Randy Rothstein Brenda Small Jennifer Smira Frank Snodgrass Christopher Suranna Patrick Weed Holly Worthington

Capital Club

Wendy Banner Frederic Bates David Bediz Elizabeth Blakeslee Jan Brito Nathan Carnes Roger Carp Kimberly Casey Anita Centofanti Lori Connor Lauren Davis Sherry Davis Joe Detrick Anthony DeVol Gary Ditto James Downing Melinda Estridge Gregory Ford Jeffrey Ganz Andrea Gaus Ricki Gerger Sally Hamidi

Gordon Harrison Mynor Herrera William Highsmith, Jr. Colin Johnson Ann Johnston Angela Jones Daryl Judy Elley Kott Cheryl Leahy Jeremy Lictenstein Kymber Lovett-Menkiti Santhy Mallios Vittorio Muzzatti Bonnie Roberts-Burke Michael Schaeffer P. Joy Siegel Martin Signore Josette Skilling Dominic Turano Kirsten Williams Hans Wydler

As of June 12, 2013 Capital Area REALTOR®

GCAAR Sponsors Rebuilding Together® House in Montgomery County More than 30 GCAAR members, affiliates, and GCAAR Cares Committee members came out on April 27 to help make necessary improvements on a home in Gaithersburg, through the non-profit, Rebuilding Together . Rebuilding Together provides critical repairs ® ® and renovations for low-income homeowners across the United States, and has done so for almost 25 years. With the philosophy that every person deserves to live in a safe and healthy home, home owners apply to be selected for the annual renovation projects. The work is completed mostly by volunteers, both skilled and unskilled laborers.

MCRS Designation Helps REALTORS® Provide a Much Needed Service

A special thanks to this year’s sponsors who provided breakfast, lunch, and snacks for our workers and our house captains who organized the activity!

GCAAR members packed the classroom on May 6 for the first Military Residential Certified Specialist (MCRS) designation class. As one of NAR’s newest, the MCRS designation allows REALTORS® to serve the needs of the military population to assist them in various stages of their careers, either active duty or retired military. Representatives from Chase’s Mortgage Division were also on hand to talk about the financing options available to veterans.

Sponsors:

George Mason Mortgage – breakfast sponsor MovementMortgage – lunch sponsor Counselors Title – snack sponsor House Captains: Jason Bradley & Tom Bennetts

Arthur Dennis, an agent with Fairfax Realty, felt a need to attend the class saying, “watching and reading about these returning veterans, it’s not a common sight to see a serviceman with a sign saying he’s homeless or jobless. Taking this class will help me provide a service to these veterans and lend a hand where I can.”

A volunteer licensed electrician repairs a light in the bathroom.

Having the MCRS designation is also a business benefit. GCAAR Board Member Tom Daley of Sotheby’s says, “the MCRS designation is a nice niche for me to have seeing that the military is so prevalent in the DC metro area. Any way I can make myself more distinctive in the market is always an advantage.”

GCAAR members scrape old wallpaper and prepare to paint.

Taught by MCRS specialists Frank Jornlin, Buddy West, and Gee Dunsten, the purpose of the class is to help agents position themselves as trusted advisors to the military community.

L - R: Committee member Gwen Henderson with sponsors Shari Webb from MovementMortgage, Brianna Ayala from Counselors Title, and Chuck and Adrianna Clapper from George Mason Mortgage.

Realtors® and sponsors gather on the front lawn to start work on the house.

 

 

L-R: Frank Jornlin, MCRS; Josh Thompson, Chase; Scott Willis, Chase; Buddy West, MCRS; Gee Dunsten, MCRS; Kurtis Tai, Chase

 

   

Capital Area Realtor®

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Public Policy REAL Advocacy for REALTORS® Check out GCAAR’s bi-monthly Legislative and Public Policy Report at www.gcaar.com for a full list of federal, state, and local legislation being reviewed by the Government Affairs Department. You can also email mdlegislative@gcaar.com or dclegislative@gcaar.com with comments or questions!

HB 291/SB 383 – Real Property – Maryland Mortgage Relief Services Act (Passed) Provides state government with authority to enforce violations of federal regulations controlling the activities of mortgage assistance relief service providers. HB 695 – Homeowner’s Insurance – Anti-Concurrent Causation Clause – Prohibited (Passed) Requires an insurer to provide a clear notice to a consumer regarding an anti-concurrent coverage (ACC) clause in policies, which provides that if loss is caused by both covered and non-covered events, the loss claim will not be paid. SB 829 – Transportation Trust Fund – Financing – Use of Funds (Passed—effective when approved by Maryland Voters in the 2014 Election) Proposes an amendment to the Maryland Constitution prohibiting the use of the transportation trust fund for other purposes.

AT THE FEDERAL LEVEL

Montgomery County ISSUES

NAR is working for you! Stay up to date on NAR’s political activity and access all CALLS FOR ACTION through NAR’s REALTOR® Action Center at http://www.realtoractioncenter.com.

REALTORS® Lobby Capitol Hill for NAR’s Midyear May Congressional Meetings REALTORS® representing Maryland and DC at state and local levels joined hundreds of their colleagues from across the country to urge Congress to continue support for key housing tax policies as well as a number of other important issues. REALTORS® asked the Montgomery County and DC Congressional Delegations to continue to support: • Key tax policies like the Mortgage Interest Deduction, the deductibility of state and local property taxes, • A strong FHA program, and • Continued support for a secondary mortgage market through government sponsored entities like Fannie Mae. REALTORS® also spoke to legislators about new Frank-Dodd rules on qualified mortgages, continued appraisal problems, condo financing, and flood insurance.

Maryland Maryland General Assembly: Key 2013 Legislation The 2013 General Assembly session ended on April 8, 2013. Visit MAR’s Government Affairs news section at www.mdrealtor.org for a comprehensive list of real estate related legislation from this past session. HB 88/SB 199 – Real Property – Refinance Mortgage – Priority over Junior Liens (Passed) Authorizes homeowners to refinance a first mortgage without obtaining permission from the lender that funded a home equity loan or second mortgage. HB 128/SB 158 – Homestead Tax Credit – Eligibility Verification and Application (Passed) Extends by one year the time frame for property owners to apply for the Homestead Tax Credit.

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Fiscal Year 2014 Budget The Montgomery County Council adopted the $4.8 billion Fiscal Year 2014 County operating Budget and it will go into effect on July 1. Several notable provisions include: • Property Taxes: Maintaining property tax revenue at the Charter limit, including a $692 property tax credit for owner-occupants of principal residences. Since property assessments still reflect the impact of the recession, they will increase by 1.8 cents. • Schools: $2.1 billion in tax-supported funds, for Montgomery County Public Schools that meets, but does not exceed, the State’s Maintenance of Effort Law requirement. • Water and Sewer: Decreasing in the annual Water Quality Protection Charge from $92.60 to $88.40 per equivalent residential unit, and increasing water and sewer charges for the Washington Suburban Sanitary Commission by 7.25% to help provide sufficient resources to continue important infrastructure recapitalization efforts. • Energy: Rolling back the energy tax by 10% and adding $40,000 for a Homeowner Energy Score pilot program. • Neighborhoods: Adding $100,000 for the Montgomery Housing Partnership Neighborhood Revitalization program in Glenmont and other neighborhoods. Bus Rapid Transit (BRT) Project The Planning Board and County Council continue to review plans for a BRT program in Montgomery County. GCAAR recently submitted testimony to the Montgomery County Planning Board in favor BRT, which would include: • Determining which corridors should be included in the Master Plan of Highways and Transitways; • Developing typical sections that illustrate how the proposed transitway and stations are accommodated in the corridors, and determine the preferred and minimum rights-of-way; and • Identifying where additional right-of-way or repurposing of travel lanes is required for the bus rapid transit corridors and stations Source: http://www.montgomeryplanning.org/

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Montgomery County LEGISLATION For the most up to date information on Montgomery County legislation, visit the County’s website at www.montgomerycountymd.gov. Bill 13-13 – Impervious Area –Calculation (Pending) The definition of impervious area currently counts all pervious pavement area as an impervious surface, with stormwater management provisions requiring a developer to minimize the imperious surface in a development. In special protection areas, water quality plans are not required when the impervious area is 8% of the site area or less. Bill 13-13 would require only 25% of permeable pavement area toward any limit on impervious surface area.

May and June Recaps- Parking with DDOT and Councilmember David Grosso DCAR’s May Public Policy Committee speaker event featured Sam Zimbabwe, DDOT’s Associate Director, Policy, Planning & Sustainability Administration and Alice Kelly, DDOT’s Policy Branch Manager, discussing parking in the District. DDOT will continue to work with DCAR as the Association shapes its transportation policies.

Bill 11-13 – Commercial Property Assessed Clean Energy Program -Established (Pending) Bill 11-13 would establish a commercial Property Assessed Clean Energy (PACE) program to commercial property owners to make energy efficiency improvements. PACE programs use the county’s property assessments as the vehicle by which loans are repaid. Typically, the funds for these renovations come from third parties and repayment of the bond would be secured by the county’s property tax vehicle. Zoning Text Amendment 12-18, Exemptions—Pre-1928 Resubdivisions (Passed) An amendment to provide an exemption from current zoning standards for pre-1928 property that resubdivide. Zoning Text Amendment 12-16, One Family Dwelling, Pre-1928 Lots (Passed) Allows the construction or reconstruction of a one-family dwelling located on any size lot recorded before 1928. Subdivision Regulation Amendment 12-03, Minor Subdivisions—Part of a Lot (Passed) An amendment to authorize the approval and recordation of a plat for certain properties classified in a one family residential zone under the minor subdivision procedure.

DISTRICT OF COLUMBIA For additional information visit www. dcrealtors.org.

Upcoming DCAR Speaker Series Events: Councilmember Wells and Councilmember Bowser in July and September DCAR’s July 25 Speaker Series will feature Councilmember Tommy Wells (D-Ward 6). He currently Chairs the Committee on Human Services and also sits on the following Committees: Economic Development; Business, Consumer, and Regulatory Affairs; and Health. Councilmember Wells has also officially launched his campaign to run for Mayor of the District of Columbia. DCAR’s September 19 Speaker Series will feature Councilmember Muriel Bowser (D-Ward 4). Councilmember Bowser sits on the following Committees: Finance and Revenue; Government Operations; and Judiciary and Public Safety. Councilmember Bowser has also officially launched her campaign to run for Mayor of the District of Columbia.

Capital Area Realtor®

L-R: Public Policy Vice Chair Thais Austin, DCAR CEO Ed Krauze, & DC Councilmember David Grosso

The June Speaker Series featured Councilmember David Grosso (I-AtLarge), who was elected to the Council last November. Councilmember Grosso discussed his work maintaining fiscal responsibility on the Council’s Committee on Business, Consumer, and Regulatory Affairs and Committee on Finance and Revenue.

District Issues Fiscal Year 2014 Budget The DC Council approved a record high Fiscal Year 2014 $12.1 billion city budget. While there are no new real estate specific taxes or fees, there are increases in circulator fees from $1 to $2 and street sweeper fine fees from $30 to $45. Several notable program increases, pending Final Vote/ Reading, include: • Tax abatements: The DC Council’s budget proposal funds many abatements to make housing more affordable. For example, it provides property tax reductions for seniors with incomes between $100,000 and $125,000. • Local Rent Supplement (tenant-based): $1.75 million to provide rent vouchers that will help approximately 120 low-income families obtain affordable housing. • Increased funds for the Housing Production Trust Fund (HPTF): New Communities Projects using income tax secured bonds, rather than relying on the HPTF to securitize the funds. • Removal of the Mayor’s contingent revenue list: The Council instead moved to allow the Council to spend up to $50 million of any increased revenues announced in the June revenue forecast. • Out-of-State Bonds: Restores a tax break on income from out-ofstate bonds.

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New GCAAR Headquarters, continued from page 1 They scoured the for-sale listings in the hot spot, and toured multiple properties before finally identifying the Diamondback Drive building. (A full timeline of the many steps of this process is below).

2013 GCAAR President Michael McGreevy addresses the group as 2013 DCAR President Bo Menkiti and 2013 Immediate Past President Bonnie Casper look on.

Far and away, the number one question we received in this process is: What are GCAAR’s plans for the office in the District of Columbia? The purchase of this building in Montgomery County is only the first step in GCAAR’s plan to better align its offices with where the members are. Now that this purchase is complete, GCAAR will focus on identifying a new site in a more central locale in DC than where we are currently located (500 New Jersey Avenue, NW). The new DC location will include classroom space and continue to offer full member services. In order to approve the financing for the Diamondback building purchase, GCAAR held a membership meeting on Friday, May 10. After a full presentation of the building, the process, and the reasons for the purchase and move, the members in attendance overwhelmingly voted in favor of the financing as presented. This vote in favor enabled the Board of Directors to proceed with the purchase, and, after a two-plus-year process, finally make their way to settlement.

L-R: Building Task Force Chair Bonnie Casper, 2013 GCAAR President Michael McGreevy, and MCAR Past President Dale Ross

GCAAR is planning to relocate the corporate headquarters of GCAAR from Silver Spring to 15201 Diamondback Drive, Rockville, Maryland, in the fall of 2013. Watch for updates in your email and Capital Area REALTOR® as we work on building out our new member services, classroom, and office spaces!

GCAAR Relocation Task Force Timeline JULY 2013 – Diamondback Drive property identified.

JULY 2011 – 2011 President Adrian Hunnings appoints Task Force.

2011

SEPT-DEC 2011 – Property surveys reviewed for locations in Bethesda, North Bethesda, and Rockville.

AUGUST 2011 – Commercial brokers interviewed. TransWestern Company selected.

JAN 2012 – 2012 President Bonnie Casper appoints additional Task Force members.

2012

AUG-SEPT 2013 – Letter of Intent to Purchase issued for Diamondback Drive.

OCTOBER 2013 – Letter of Intent agreed to by GCAAR and owners of Diamondback Drive.

Jan-Feb 2013 – Due Diligence studies performed.

AUG-SEPT 2013 – Purchase and Sale Agreement signed December 24, 2012.

FEB-JUNE 2013 – Site visits to projects in Bethesda, Twinbrook, Shady Grove Metro, Tower Oaks Boulevard, and Silver Spring. Commercial loan opportunities investigated. Letters of Intent to Purchase issued for: - Office Building on 355 near Shady Grove Metro (Owners decided not to sell) - Condo Office Building on Tower Oaks Boulevard (Offer rejected) - Office Building on Tower Oaks Boulevard (Offer rejected)

MOVE IN SCHEDULED

MARCH 2013 – Additional contract terms negotiated.

2013

APRIL 2013 – Contract negotiations completed. Loan Commitments issued by BB&T. Board of Directors approved contract terms.

Late 2013

May 2013 – Special Meeting of Membership: May 10, 2013 Closing: May 16, 2013

GCAAR Members Complete 2013 MAR Leadership Academy, continued from page 1

communities. The Academy offers an intensive curriculum designed around developing skills in leadership, communications, strategic planning, legislative and government affairs, and community involvement. Classes are conducted over seven months and stress the value of professional and personal commitment to business, charitable, and civic endeavors.

Pramedai “Cammie” Reed receives her MAR Leadership Academy Award

Capital Area Realtor®

2011 NAR President Ronald L. Phipps addressed the graduates and guests. “Our most important role as leaders of organizations and companies is to identify, train, and mentor our successors,” Phipps emphasized. “Follow your passion and it will direct the course to lead effectively.”

Serving the Business Needs of OUR Professionals

2013 May - June

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0901136.1

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2013 May - June

State Farm Fire and Casualty Company, State Farm General Insurance Company, Bloomington, IL

Serving the Business Needs of OUR Professionals

Capital Area REALTORÂŽ

July & August Education & Event Schedule Unless otherwise noted, all classes listed will be held at the GCAAR Conference Center, 8757 Georgia Ave., Suite 600, Silver Spring, MD. Please check our website at www.gcaar.com for more updates and additions. This schedule is subject to change. July 1, 2013 What is RPR and How Can It Help Your Business CEU: No CEUs Instructor: Win Singleton Time: 10:00 – 11:30 a.m.

July 18, 2013 New Member Orientation CEU: No CEUs Instructor: Jill Michaels Time: 10:00 – 11:30 a.m.

July 1, 2013 What is RPR and How Can It Help Your Business CEU: No CEUs Instructor: Win Singleton Time: 1:30 – 3:00 p.m. * GCAAR Rockville Board Room

July 18, 2013 Maryland Code of Ethics & Predatory Lending CEU: 3 hours MD (Required) & 3 hours DC (Elective) Instructor: Jill Michaels Time: 12:30 – 3:30 p.m.

July 1, 2013 Financing Issues/Update CEU: 3 hours DC (Required), MD & VA (Elective) Instructor: Michael Chelst Time: 1:30 – 4:30 p.m.

July 23, 2013 REALTOR® Fest Bethesda North Marriott Hotel & Conference Center Time: 9:00 a.m. – 8:30 p.m.

July 8, 2013 DC Legislative Update CEU: 3 hours DC (Required) Instructor: Counselors Title Time: 9:30 a.m. – 12:30 p.m.

July 29, 2013 Financing Issues/ Update CEU: 3 hours DC (Required), MD & VA (Elective) Instructor: Jim Semeyn Time: 9:30 a.m. – 12:30 p.m.

July 8, 2013 Financing Issues/ Update CEU: 3 hours DC (Required), MD & VA (Elective) Instructor: Jim Semeyn Time: 1:30 – 4:30 p.m.

July 29, 2013 203k CEU: 3 hours DC, MD & VA (Elective) Instructor: Jim Semeyn Time: 1:30 – 4:30 p.m.

July 10, 2013 DC Fair Housing CEU: 3 hours DC (Required) Instructor: Thom Brockett Time: 1:30 – 4:30 p.m.

August 2, 2013 New Member Orientation CEU: No CEUs Instructor: Jill Michaels Time: 10:00 – 11:30 a.m. *GCAAR Rockville/MRIS

July 12, 2013 New Member Orientation CEU: No CEUs Instructor: Jill Michaels Time: 10:00 – 11:30 a.m. *GCAAR Rockville/MRIS July 12, 2013 Maryland Code of Ethics & Predatory Lending CEU: 3 hours MD (Required) & 3 hours DC (Elective) Instructor: Jill Michaels Time: 12:30 – 3:30 p.m. *GCAAR Rockville/MRIS

August 2, 2013 Maryland Code of Ethics & Predatory Lending CEU: 3 hours MD (Required) & 3 hours DC (Elective) Instructor: Jill Michaels Time: 12:30 – 3:30 p.m. *GCAAR Rockville/MRIS August 5, 2013 What is RPR and How Can It Help Your Business CEU: No CEUs Instructor: Win Singleton Time: 10:00 – 11:30 a.m.

July 17, 2013 MREC Agency - Residential CEU: 3 hours MD (Required) & 3 hours DC (Elective) Instructor: Al Monshower Time: 9:30 a.m. – 12:30 p.m.

August 5, 2013 What is RPR and How Can It Help Your Business CEU: No CEUs Instructor: Win Singleton Time: 1:30 – 3:00 p.m. * GCAAR Rockville Board Room

July 17, 2013 Maryland Legal & Legislative Update CEU: 3 hours MD (Required) & 3 hours DC (Elective) Instructor: Al Monshower Time: 1:30 – 4:30 p.m.

August 5, 2013 Financing Issues/Update CEU: 3 hours DC (Required), MD & VA (Elective) Instructor: Michael Chelst Time: 1:30 – 4:30 p.m.

Capital Area Realtor®

Serving the Business Needs of OUR Professionals

August 8, 2013 DC Legislative Update CEU: 3 hours DC (Required) Instructor: Prabhjit Singh Time: 9:00 a.m. – 12:00 p.m. * GCAAR Rockville/MRIS August 8, 2013 DC Legislative Update CEU: 3 hours DC (Required) Instructor: Counselors Title Time: 9:30 a.m. – 12:30 p.m. * NAR Building/2nd Floor August 8, 2013 DC Fair Housing CEU: 3 hours DC (Required) Instructor: Tom Lynch Time: 9:30 a.m. – 12:30 p.m. August 8, 2013 DC Fair Housing CEU: 3 hours DC (Required) Instructor: Prabhjit Singh Time: 1:00 – 4:00 p.m. *GCAAR Rockville/MRIS August 8, 2013 DC Fair Housing CEU: 3 hours DC (Required) Instructor: Counselors Title Time: 1:30 – 4:30 p.m. *NAR Building/2nd Floor August 8, 2013 DC Legislative Update CEU: 3 hours DC (Required) Instructor: Tom Lynch Time: 1:30 – 4:30 p.m. August 8, 2013 Financing Issues/Update CEU: 3 hours DC (Required), MD & VA (Elective) Instructor: Prabhjit Singh Time: 4:30 – 7:30 p.m. *GCAAR Rockville/MRIS August 8, 2013 Financing Issues/Update CEU: 3 hours DC (Required), MD & VA (Elective) Instructor: Counselors Title Time: 5:00 – 8:00 p.m. *NAR Building/2nd Floor August 8, 2013 Financing Issues/Update CEU: 3 hours DC (Required), MD & VA (Elective) Instructor: Michael Chelst Time: 5:00 – 8:00 p.m.

2013 May - June

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Quiz REALTOR® Know Thyself How much do you know about the average member of the National Association of REALTORS®? How does your business compare to that of your fellow members? Find out by taking this quiz based on the 2013 Member Profile. 1 . What percentage of members specialize in residential brokerage? 60% 70% 80% 90%

7. What is the prevailing method for REALTOR® compensation? Percentage commission split Commission split plus share of profits 100% commission Salary plus share of profits/production bonus

2. What percentage of members are independent contractors with their firms? 30% 50% 70% 80%

8. How much of a typical REALTOR®’s business is earned from repeat clients and customers and referrals from past clients and customers? 26% 37% 42% 61%

3. How many hours a week does the average REALTOR® work? 30 40 50 60 4. How many transactions did the typical agent have in 2012? 10 12 15 17 5. What was the sales volume of the typical agent in 2012? $1 million $1.3 million $1.5 million $1.7 million 6. What was the median gross income of REALTORS® in 2012? $12,700 $25,300 $43,500 $75,200

9. What percentage of members have at least one personal assistant? 5% 13% 17% 21% 10. What was the largest single expense category for most REALTORS® in 2012? Vehicle expenses Professional development Business promotion Technology products and services

Answers 1. 80% 2. 80% 3. 40 4. 12 5. 1.5 million

6. $43,500 7. Percentage commission split 8. 42% 9. 17% 10. Vehicle expenses

Past Presidents Discuss Future GCAAR Plans GCAAR President Michael McGreevy hosted an impressive array of past leaders at the Past Presidents’ lunch at Lia’s in Chevy Chase on April 24. Michael gave an update on what GCAAR’s been doing since he took office, but the main topic of discussion was the possible purchase of the Rockville building. Michael thanked the group for their service to GCAAR, with special kudos going to Immediate Past President Bonnie Casper for spearheading the building task force. Michael noted that a GCAAR purchase made years ago was the brainchild of past president Harold Huggins, and that purchase continues to bring revenue into the Association.

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2013 May - June

L-R, Harold Huggins, 1991- MCAR; Adrian Hunnings, 2011-GCAAR; Michael McGreevy, 2013-GCAAR; Shelly Murray, 2010-GCAAR; Dennis Melby, 2008-GCAAR; Bonnie Casper, 2012- GCAAR; Marie Shannon, 2003 – GCAAR; Jim Kneussl, 2004- GCAAR; Susann Haskins, 2005 – GCAAR; Holly Worthington, 2006 – GCAAR; Brenda Small, 2007-GCAAR; Greg Ford, 2013 President- Elect - GCAAR

Serving the Business Needs of   OUR Professionals

Capital Area REALTOR®

Capital Area Realtor®

Serving the Business Needs of OUR Professionals

2013 May - June

23

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Capital Area REALTOR May/June 2013