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REALT O R

CapitAl Area

®

www.gcaar.com

Official publication for the Greater Capital Area Assocation of Realtors®

may/june 2014

REBUILDING TOGETHER® GCAAR rebuilds a home in DC - page 6

Affiliate Spotlight: Chris Darby p. 3

GCAAR Cares - p. 5

Grand Opening Celebration - p. 12

Come to REALTOR® Fest - p. 25

Capital Area REALTOR® • May/Jun 2014

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REALTOR

CapitAl Area

®

Grand Opening Celebration

page 12

may/june 2014

GCAAR On the Go!

page 15

YPN Event

page 13

features

in every issue

3

Affiliate Spotlight

2

Ask the President

3

Students Illustrate the Importance of Fair Housing

5

GCAAR Cares

4

Women’s Council of REALTORS®

8

NAR Director’s Report

12

Grand Opening Celebration

13

Working with the Global Client

13

9 Technology 10

Membership Corner

YPN Happy Hour Benefits Local Non-Profit

10

Meet Your GCAAR Committees

14

GCAAR Hosts Montgomery County Executive Democratic Forum

16

Housing Statistics

14

Bonnie Casper Speaks at Montgomery County Affordable Housing Conference

25

RPAC

26

Public Policy

15

GCAAR on the Go

28

Legal Hotline

20

2014 MAR Leadership Academy

30 MRIS

22

GCAAR Welcomes New Emeritus Members

31

24

Home Seller Generational Trends

25

Come to REALTOR® Fest

Education Schedule

Capital Area REALTOR® (USPS 017-467) is published five times a year by the Greater Capital Area Association of REALTORS®, 15201 Diamondback Drive, Suite 100, Rockville, MD 20850. 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. POSTMASTER: Send address changes to Capital Area REALTOR®, ATTN: GCAAR, 15201 Diamondback Drive, Suite 100, Rockville, MD 20850. 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 necessarily reflect the opinion 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 the items become the property of 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 submissions, including camera-ready advertising, is the first of the month prior to publication. Reprint with permission only. Reprints may be obtained by contacting the Greater Capital Area Association of REALTORS® at 301.590.2000; via fax at 301.590.2248; or send an e-mail to 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.

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Copyright© 2014 by the Greater Capital Area Association of REALTORS®.

Capital Area REALTOR® • May/Jun 2014

All rights reserved.

15201 Diamondback Drive, Suite 100 • Rockville MD 20850 Phone: 301.590.2000 • Fax: 301.590.2248 • www.gcaar.com Follow us on Facebook: facebook.com/GCAAR2 Follow us on Twitter@GCAARNow Follow us on LinkedIn/in/GCAAR Capital Area REALTOR® • May/Jun 2014

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board of directors

ask the president

Affiliate Spotlight:

Chris Darby

Counselors Title

Q: I wanted to attend the Grand Opening event on April 23, but I had

a scheduling conflict. Can I still get an insider’s tour of our new facility? Does GCAAR have any spaces available for rent?

Greg Ford President

Suzanne Des Marais President-Elect

Peg Mancuso SECRETARY

Tim Knobloch TREASURER

A:

Thanks for your question. We are excited to be in our new space and invite all members to come in and check it out! The store and member service areas are open Monday – Friday, 8:30 a.m. – 5 p.m., and Saturday, 10 a.m. – 3 p.m. If you’d like a behind-the-scenes tour of the offices, please contact Sandy Hargis to make arrangements (shargis@gcaar. com or 301.590.8773). GCAAR does have three rooms available for rent; the largest being our state-of-the-art 2,300 square-foot classroom that seats 80 at tables or 130 theater style. The room includes a full-wall white board, in-ceiling audio, and a ceiling-mounted projector with two 40-inch side monitors. We also have a beautifully-appointed board room which seats 24 around the table and includes two 70-inch monitors that can hook up to your laptop. Our third space is a small conference room that can accommodate 10-25. For availability and pricing, please contact Director of Programs, Mark Glazer (mglazer@gcaar.com or 301.590.8787).

Q: Why can’t I let my business partner use my SentriLock card? She’s Michael McGreevy IMMEDIATE PAST PRESIDENT

Michael Moran CHIEF EXECUTIVE OFFICER

directors Koki Adasi David Bediz Thom Brockett Jamie Coley Tom Daley Dorie Glass

Jacque Grenning Sally Hamidi Gwen Henderson Vicky Lobos-Kirker Hildy Pollard Pat Weed

Capital Area REALTOR® Magazine

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Bobette Banks MANAGING Editor

Arlene Braithwaite Advertising Representative

Deborah Bell ASSOCIATE Editor

Lisa Cadigan, Cadigan Creative Design & Layout

Capital Area REALTOR® • May/Jun 2014

licensed and we share our listings.

A: SentriLock cards are unlike any other card you have in your wallet.

Your SentriLock card opens the front door to thousands of homes in the DC metro area. Every listing in the jurisdictions where you are licensed that has a SentriLock lockbox is accessible with this card. Installing a lockbox on a home is a trust that our clients give to us. In exchange for this trust, we agree to follow all the lockbox rules that are in place to protect them. In the rules, each Sentricard user agrees “Not to lend the SentriCard® or property key to any person, for any purpose whatsoever, or to permit the SentriCard® or property key to be used for any purpose by any other person” (paragraph 5(d)). Every GCAAR REALTOR® can participate in the lockbox system and anyone listing or showing property should have their own card. It’s in the best interest of our clients and our way of doing business to have everyone follow these rules. Violations can result in the revocation of your card, so please make sure that you have read and understand the rules and regulations. They can be found in the “Toolkit” section at gcaar.com.

How long have you been an Affiliate with GCAAR?

Counselors Title has been an Affiliate member of GCAAR since we opened the company in 2007. I began my affiliation with GCAAR shortly after entering the settlement business in 1998. My introduction to GCAAR really began when I joined the Contract & Clause Committee in 2001, upon which I have served since that time.

What are some of the events you support?

We are happy to support many of GCAAR’s causes and events. Because my partners and I enjoy teaching continuing education (CE) classes, a great deal of our involvement revolves around these seminars, including those offered at GCAAR’s annual REALTOR® Fest. In addition, we have supported GCAAR through maintaining the Legal Hotline since 2008. The Hotline enables us to assist the members with questions regarding GCAAR forms, as well as general questions of law.

fair housing Students Illustrate the Importance of Fair Housing Congratulations to GCAAR’s Fair Housing Poster Contest winner for Montgomery County, Elizabeth Rockabrand of Gaithersburg Middle School. The Maryland Association of REALTORS® (MAR) and special guest Maryland State Comptroller, Peter Franchot, announced the winners of the annual Fair Housing Poster Contest during a recognition ceremony on April 22 at the Goldstein Treasury Building in Annapolis. Students representing 13 schools across the state received a certificate and a gift card co-sponsored by BB&T Bank. As part of the contest, students were asked to illustrate the theme: The Key to Fair Housing is Cultural Diversity. The 13 winning posters will be produced into a colorful 2015 calendar, which MAR 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. Thanks to Gaithersburg Middle School teacher, Christopher Cuff, who accepted Elizabeth’s award on her behalf. Congratulations Elizabeth!

Why do you continue to support GCAAR as an Affiliate?

Whether it is Contract & Clause, Public Policy, Community Service, or any of the other GCAAR committees, our company has found that being an active Affiliate member not only helps us remain informed about and participate in shaping issues impacting our real estate community, but also allows us the unique opportunity to engage with our peers in a collaborative environment.

What would you say to people who are considering becoming an Affiliate?

Don’t hesitate. You will certainly get more out of it than you could ever put in.

Why do you think being a member of GCAAR is important?

GCAAR is unlike any organization in which I have participated. From GCAAR staff, the Board, and throughout all of the committees, there is a unique commitment to inclusion and cooperation that allows all members the opportunity to participate and become actively involved in our profession. My years of participation as an Affiliate have allowed me to expand my understanding of the real estate community’s importance to our economy, further my profession, actively participate with and learn from the practitioners, and make many friends along the way.

L-R: Hildy Pollard, GCAAR Board Member and GCAAR member of MAR’s Equal Opportunity/Cultural Diversity Committee; Deborah Bell, Manager of Communications and Community Service Committee Staff Liaison; Gwen Henderson, GCAAR Board Member; Christopher Cuff, Gaithersburg Middle School teacher for Elizabeth Rockabrand; Maryland State Comptroller, Peter Franchot; Bonnie Casper, GCAAR Past President and MAR Secretary; “Q” Armstrong, GCAAR member of MAR’s Equal Opportunity/Cultural Diversity Committee; Mike Moran, GCAAR CEO.

Capital Area REALTOR® • May/Jun 2014

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Women’s Council of REALTORS® Valuable Resources, Networking, and Much More If you haven’t been

to a Women’s Council of REALTORS® meeting yet, you’re missing out. The Women’s Council of REALTORS® (WCR) is the twelfth largest U.S. women’s professional organization and has one of the most successful communication networks in the National Association of REALTORS® (NAR) family. There are over 80 local chapters across the country. Chapter membership includes real estate professionals and related industry vendors who support the objectives of WCR and are interested in serving the industry, the community and fellow REALTORS®. Men are welcome! The Greater Capital Area (GCA) chapter of WCR was chartered in January 1990. The local chapter has members working in the Maryland, District of Columbia, and Virginia markets. The chapter prides itself on bringing members current and relevant information that will be readily incorporated and grow everyday business.

Upcoming Meetings July 16: MRIS Products and Services You May Be Overlooking September 17: REALTOR® Safety Month October 15: Year-end and 2015 Tax Changes/Chapter Election

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Capital Area REALTOR ® • May/Jun 2014

is on the move!

Why become a member? • Local support, national strength • Networking and referral opportunities at the local and national levels • Professional and personal development • Performance Management Network (PMN) designation • Information and Resources • eConnect • WCR.org In addition, GCA WCR members can attend 2 of 3 Maryland State WCR-sponsored classes at no charge. • August 13: Robert Morris – Military Relocation Specialist certification at MAR Headquarters • September 7: Gee Dunsten – PMN class at Maryland Association of REALTORS® Annual Convention Make plans to attend one of GCA WCR’s meetings before the end of the year, and stay tuned for details about their networking social in the fall. Meetings are held every third Wednesday in the month from 9:00 – 11:30 a.m. at GCAAR, 15201 Diamondback Drive, Suite 100, Rockville, MD. 20850.

February WCR featured a breakdown of the association structures. Front Row L-R: Gwen Henderson, 2014 GCA WCR President; Bonnie Roberts-Burke, 2014 DCAR President; Mike Moran, CEO GCAAR; J. Russell Boyce, 2014 President, MAR; Back Row: Ed Krauze, CEO DCAR; Tony Duncanson, DC Real Estate Commission; Greg Ford, 2014 GCAAR President.

GCAAR CARES

© marleen van den neste

GCAAR Cares Walks for the Homeless in Montgomery County, MD

On Sunday, May 4,

GCAAR Cares members, family, and friends participated in the Walk ‘n Roll event hosted by the Montgomery County Coalition for the Homeless (MCCH) at the Mattie J.T. Stepanek Park in Rockville, MD. The event was well attended by Montgomery County Council members who stressed their commitment to end homelessness in the County. Walkers enjoyed great weather, live music, and face painting for the entire family!

For more information about MCCH, go to mcch.net. ...more GCAAR Cares on page 6

Capital Area REALTOR® • May/Jun 2014

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GCAAR CARES

Rebuilding Together® in the community GCAAR Rebuilds a Home in Washington, DC House Captain, Michael Fowler (far right) takes photo with homeowner Valencia Foster-El (center) and her mother.

2014

Rebuilding Together® DC took place on Saturday, April 26 with over 50 volunteer participants! GCAAR Cares Committee member and 2013 Rookie of the Year, Michael Fowler, was this year’s Rebuilding Together® House Captain. Michael, along with fellow members, affiliates, family, and friends helped repair a home in Washington, DC through the non-profit organization, Rebuilding Together®. Each year, GCAAR sponsors a home that is in need of critical repairs and renovations for low-income homeowners. Homeowners must apply to be selected for the annual Rebuilding Day project. The volunteers who complete the work consist of both skilled and unskilled laborers. For more than 30 years, Rebuilding Together® has held the philosophy that every person deserves to live in a safe and healthy home. This year’s Rebuilding Together® homeowner was overwhelmed with gratitude, stating “This is the best birthday present, ever.” Many thanks to our Community Service Chair and Co-Chair Chuck and Adriana Clapper for obtaining our food sponsors, and the entire GCAAR Cares Community Service Committee and Staff who coordinate this project every year, making it a memorable occasion for all involved. But, more importantly, we thank YOU, our volunteers and supporters, for coming out to support GCAAR Cares with 2014 Rebuilding Together® DC!

Photos, top to bottom: • 2014 Rebuilding Together® DC Volunteers.

• 2014 GCAAR President Greg Ford strategizes with skilled laborers. • 30 Under 30 Winner CJ Harris and GCAAR Board Member Koki Adasi paint bedroom. • (l-r) Jess Adasi, GCAAR Board Member Koki Adasi, 2014 GCAAR President-Elect Suzanne Des Marais, GCAAR Board Member David Bediz, Phillip Ray

Special thanks to our house captains, food sponsors, skilled laborers, and donor! House Captains: • 2013 Rookie of the Year, Michael Fowler, Captain • GCAAR Board Member, Gwen Henderson, Co-Captain Skilled Laborers: • Timothy Baker • Aaron Dawkins • Hank May • Dick Stoner Food Sponsors: Breakfast/Snack Sponsor Lunch Sponsor Donor: • Patricia Widerman, BB&T Bank

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GCAAR Board Member David Bediz takes selfie with Manager of Communications and GCAAR Cares Staff Liaison Deborah Bell, GCAAR Board Member Gwen Henderson, and fellow volunteer Phillip Ray. Capital Area REALTOR® • May/Jun 2014

Capital Area REALTOR® • May/Jun 2014

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NAR

technology

director’s report Peg Mancuso 2014 GCAAR Board Member, NAR Director

T

uations participants can develop for clients and customers. MLSs must make information available to participants in a manner that makes development of fully-automated AVMs possible.

Mandatory Core Association Standards

The Board made the following changes to the NAR Code of Ethics and Arbitration Manual:

he National Association of REALTORS® (NAR) Board of Directors met on Saturday, May 17 at the Marriott Wardman Park Hotel right here in Washington, DC. Your GCAAR NAR Directors were there, of course, and excited to represent your interests on the national level. While there were many items on the agenda, the most significant was the presentation and approval of Mandatory Core Association Standards for the thousand-plus local and state associations across the United States. Those of us in major metropolitan areas have benefited for decades from the resources made available to us from our relatively large local associations. GCAAR is one of the twenty largest locals in the country. The larger associations across the country have offered their members these core services and more for many years. The passage of Mandatory Core Association Standards is NAR’s move to make sure that REALTORS® across the country have the same basic benefits that we do. Associations will have to meet standards in six areas: 1) Code of Ethics education and enforcement; 2) advocacy; 3) consumer outreach; 4) organizational unification; 5) technology; and 6) financial solvency. The NAR Board approved up to $20 million to help associations across the country to meet their new responsibilities.

Leadership Election Process

The Board approved an overhaul of the process leading to the election of candidates for NAR leadership with the intent of shortening and increasing the transparency of the process. Candidates will now qualify for election based on objective criteria, including personal bankruptcy and foreclosure history, credit score, and no current delinquent federal, state, and local tax filings or payments. For those cleared to run, the election timeline is shortened to ten months. NAR’s Delegate Body will vote at its meeting in November on the portions of this change requiring constitutional amendment. If they pass, the changes take effect Jan. 1, 2015.

MLS Policy

With the increased use of automated valuation methods (AVMs) for valuing property, the Board amended the MLS Policy Statement to clarify that AVMs are to be included among the val-

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Capital Area REALTOR® • May/Jun 2014

Professional Standards

• Clarified that hearing panel chairs may convene pre-meetings to resolve administration questions • Clarified that “probation” is not a form a discipline, but can be coupled with an authorized form of discipline • Expanded disciplinary measures to include requiring members to cease conduct found to violate the Code, and/or to take affirmative steps to ensure compliance with the Code The California Association of REALTORS® was authorized to run a pilot program publishing names and photographs of Code of Ethics violators on a broader basis than permitted under existing NAR policy.

Tax policy

The Board adopted a policy that supports the Foreign Investment in Real Property Tax Act (FIRPTA), but stipulates that Congress should not do away with laws subjecting foreign and U.S. real estate investors to similar tax rules.

Issue Mobilization and Legal Assistance

The Board approved $1.2 million in issue mobilization funds for three associations in their battles in state tax reform efforts. The Board also provided $435,000 in legal assistance funds for six cases affecting associations and MLSs.

Open Lockboxes Via Your Smartphone or Tablet With the New SentriSmart™ App

Search for Property Information in a “Snap” with Homesnap Pro

The SentriSmart™ mobile application allows you to access a lockbox key compartment with the use of a mobile access code instead of a SentriCard®. Now you can get automatic listing assignments, instant showing notifications, and SentriCard® renewal codes via your smartphone or tablet. This application is free to GCAAR members. Take advantage of this member benefit and get started today! Visit GCAAR.com/Tool Kit/SentriLock to download the user guides for Apple and Android devices.

MRIS and Homesnap are excited to announce the launch of “Homesnap Pro powered by MRIS,” a new robust platform for real estate professionals. MRIS is the first MLS to partner with Homesnap to provide our customers with access to Homesnap Pro. Homesnap Pro provides the “professional-only” information that the consumer can’t see, keeping you as the source for this valuable listing information. Homesnap Pro is now included for FREE in your MRIS subscription.

Here are just a few of the features you can enjoy Here are just a few of the features you can enjoy with SentriSmart™: with Homesnap Pro: • Generate one day codes – Allow out of area agents, contrac- • Get professional-only information! With your complimentary tors, or non-card users property access with secure codes.

• View access log – Know who showed your property and when at the touch of a button. • Assign/remove from property – assign lockboxes to properties allowing for improved inventory and showing notification reporting.

Need help? Contact SentriLock’s Priority Support Line at 1-877-SentriLock.

Homesnap Pro subscription, you’ll get additional property details on each listing, including agent remarks, showing instructions, schools, commissions and more.

• Search for property information with a single snap! Homesnap Pro gives real estate professionals a home search experience that’s as easy-to-use as it is powerful - right from your smartphone. • Connect with your contacts! Invite and connect with clients and prospects through the Homesnap app. Get insight on what they’re looking for while staying in contact with them. • See why NAR’s REALTOR® Magazine called Homesnap the “Best Mobile Tool.” Activate your FREE Homesnap Pro subscription today! Learn how when you visit MRIS.com/HomesnapPro.

Kudos

A resolution was passed recognizing the 80-year anniversary of the Federal Housing Administration. The Board also congratulated the 2014 Distinguished Service Award (DSA) recipients, Mike Brodie of Plano, TX, and James Helsel, Jr., of Lemoyne, PA., and the first graduating class of 10 students from NAR’s Master of Real Estate program. Finally, the 2015 Leadership Team was announced, by President Chris Polychron, AR., by electing Tom Salomone, FL., president-elect, and Bill Brown, CA., first vice president. Treasurer Mike McGrew, Kansas, is in his second year of a twoyear term. Polychron also introduced the team’s two appointed vice presidents, Charlie Oppler, NJ, and Mike Ford, AR.

Capital Area REALTOR® • May/Jun 2014

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membership corner Welcome new members!

Be on the lookout for an email from GCAAR about your new member packets. You can pick up your packets at our offices between the hours of 9 a.m. - 4 p.m. Monday – Friday, and between 11 a.m. – 2 p.m. on Saturdays. We want to make sure you have everything you need to get up and running in your real estate business!

Don’t be caught with dead batteries! If you have not replaced your SentriLock batteries, now’s the time to do so! SentriLock is encouraging any NXT lockbox owners with batteries older than 4.5 years to replace them. Please come to our offices in Rockville or DC to have your batteries changed. You will need two batteries per lockbox. Prices are $8.39 for a pack of two or $35 for a 10-pack. If you have already done so, you should update your last battery replacement date on the website under “My Lockboxes.”

meet your committees Meet Your GCAAR Committee: Contracts and Clause The Contracts and Clause Committee reviews the association’s current standardized forms, makes recommendations on revisions, and creates new forms as needed (determined by market conditions and changing regulations). The committee meets monthly.

2014 Roster

Ellen Katz, Co-Chair, GRI Marie Shannon, Co-Chair, CRB Jamie Coley, Vice Chair Thomas Brockett Joan Brown, GRI Christopher Darby Anthony DeVol

Jeffrey Ganz, GRI Susann Haskins, ABR, CBR, CRS, GRI Vincent Hurteau, CBR Colin Johnson Angela Jones, E-Pro, GRI Arthur Konopka Hank May

Jill Michaels Allan Prigal Marjorie Rosner Randy Rothstein Richard Saunders P. Joy Siegel Josette Skilling Kristen Williams, CBR

Meet Your GCAAR Committee: Property Management Please note: In the March/April issue we inadvertently listed the Public Policy committee description instead of Property Management. We apologize for any confusion this may have caused. The Property Management Committee reviews the association’s current property management forms making recommendation on revisions, and also creates new forms as needed (determined by market conditions and changing regulations). 51 percent of the committee members’ real estate work must be in rentals. The committee meets monthly.

2014 Roster

Jean Poitevien, Chair Lewis Laws, Vice Chair Hubert Brucker Cynthia Davis Mitchell Farrah Sally Hamidi, GRI

Harold Huggins, CCIM, CPM, CRB, CRS, GRI Richard Humrichouse Tim Knobloch, CRS, GRI Zacchaeus Odebo Matthew Rogers

Charles Sullivan, ABR, CRS, GRI Shahnaz Tehraniazad Gordon Young

L-R: Sandy Hargis and Yvette Robinson, Co-Staff Liaisons; Lewis Laws, Vice Chair. Not pictured, Jean Poitevien, Chair.

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Capital Area REALTOR® • May/Jun 2014

Capital Area REALTOR® • May/Jun 2014

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GCAAR happenings

Grand Opening Celebration Kicks Off New Chapter in GCAAR’s History The air was cool, the wind was brisk, but sunshine and spirits were bright as GCAAR officially opened the doors at its new Rockville location on April 23. Members, friends, and special guests, including County Executive Isiah “Ike” Leggett, County Councilman George Leventhal, and representatives from the area associations, came out to help celebrate this milestone in GCAAR’s history. Following the ribbon cutting, attendees were treated to a cocktail reception complete with smooth sounds from the band DMV, tours, and an Affiliate table fair.

1-2-3 CUT!

Dale Ross, Building Task Force; Peg Mancuso, GCAAR Board member; Harold Huggins, Building Task Force; Jim Kneussl, 2004 President; Dennis Melby, 2008 President; County Executive Ike Leggett; Bonnie Casper, 2012 President, Michael McGreevy, 2013 President; Greg Ford, 2014 President; Suzanne Des Marais, 2014 President-Elect.

Many thanks again to all who attended the Grand Opening celebration and/or took classes on April 28. We appreciate your support and hope to see you soon at 15201 Diamondback Drive! 2014 GCAAR President Greg Ford served as Master of Ceremonies.

2012 President, Bonnie Casper, chair of the Building Task Force.

Building purchase completed during the tenure of 2013 President Michael McGreevy.

Please note: In the March/April issue, GCAAR staff members Katie Maclure and Charnita Gorman were listed as Senior Accounting Manager and Accounting Coordinator. Their correct titles are Senior Accountant and Junior Accountant respectively. Capital Area REALTOR® • May/Jun 2014

YPN Happy Hour Benefits Local Nonprofit

On Thursday, May 1, over 75 members participated in GCAAR’s International event, Working with the Global Client. Events Committee Chair, Bill Rozek, led a panel of attorneys, lenders, and accountants discussing the nuances of international real estate transactions. International buyers make up 20% of the DC Metro area market. REALTORS® who are not ready to handle the international transaction are missing out on 20% of their possible business! A robust Q&A session followed the presentation ensuring that everyone walked away having learned something new. Thank you to our sponsor, HSBC.

DC’s Toro Toro Bar was the setting the for Your Professional Network’s (YPN) second happy hour of the year on Wednesday, May 21. Attendees “networked with a purpose” donating proceeds from the event to The Arc in Montgomery County. The Arc is one of the largest and oldest nonprofit organizations in Maryland and serves individuals, families, and employers affected by intellectual and developmental disabilities. Thanks to our sponsors, First Home Mortgage, Paragon Title & Escrow, Sandy Spring Bank, and Village Settlements.

L-R: Richard Chisholm, Ward Chisholm, P.C.; Michael Schimmel, HSBC Mid Atlantic Mortgage Manager; Bill Rozek, Events Committee Chair; Robert Bender, Partner, Aronson LLC; Alison Dougherty, Associate, Aronson LLC.

YPN Chair Thomas Castagnola with Vice Chair, Jessica Evans.

Attendees take building tours

Also, as part of the Grand Opening festivities, two $10 classes were held on Monday, April 28, with half of the proceeds from each attendee going to GCAAR’s Community Service committee, GCAAR Cares. Over $450 was raised!

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Packed House for Working with the Global Client

Attendees network at the event.

Capital Area REALTOR® • May/Jun 2014

Photo: Crowd gathers for opening remarks.

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GCAAR happenings

resources

GCAAR Hosts Montgomery County Executive Democratic Forum

Bonnie Casper Speaks at the Montgomery County Affordable Housing Conference

On April 24, GCAAR hosted a Montgomery County Executive Democratic Forum to prepare REALTORS® for the County’s June 24 Democratic Primary elections. Focused exclusively on issues affecting real estate, the forum featured County Executive Isiah “Ike” Leggett, Councilmember Phil Andrews, Former County Executive Doug Duncan, and Bethesda Magazine’s Lou Peck as moderator.

GCAAR’s 2012 President Bonnie Casper participated in a panel discussion entitled, “Has Our Housing Kept Up with Demographic Changes?” at the 2014 Montgomery County Affordable Housing Conference Summit at the Bethesda North Marriott Conference Center on Friday, May 2, 2014.

Candidates agreed on the importance of affordable housing options for new and existing residents. Expanding the County’s workforce in key sectors, such as health and technology, additional incentives for businesses, and lower taxes were viewed as viable economic development improvements. Other issues included the County’s changing demographics, Maryland’s Maintenance of Effort law and the role it plays in Montgomery County schools, and proposals to adjust energy taxes. The Forum was held at GCAAR’s new Rockville headquarters and co-hosted by the Apartment and Office Building Association (AOBA) and the Maryland-National Capitol Building Industry Association (MNCBIA).

Montgomery County and the Washington, DC region are experiencing a dramatic shift in the age, ethnicity, and income levels of people moving into the area. Bonnie said that the most difficult obstacle to making Montgomery County a viable choice for younger people and retirees is the price of housing. The emphasis has to be on reducing the cost of building new housing – and on expanding the range of places where multi-family housing can be built. Bonnie was a part of a panel that included Massoud Ahmadi, Department of Housing and Community Development; Rose Krasnow, Montgomery County Planning Department; and Lisa Sturtevant of the National Housing Conference.

GCAAR On the Go Brings Knowledge to You

“GCAAR on the Go”

is an opportunity for our members, whether they are a brokerage or company or a group of independent agents, to offer an approved continuing education (CE) class to their agents at their office without the expense of sending them to another location to take the class.

How “GCAAR on the Go” works: You (brokerage/agents) set up a discussion with the Education Department about what class(es) you might like to offer and when you are thinking of offering them (dates, times, etc.), and then the fun begins! GCAAR will do all of the legwork – booking an instructor, producing the handouts, having the certificates and reporting sheets available, reporting attendance to the different real estate commissions, and staffing the class (handling registration and sign-in, opening announcements, and stamp out at the end of class).

Currently, the cost per class is $750, regardless of the number of registrants for the class. Please note: The class must be open to outside agents and GCAAR will publicize the class to the general membership.

For more information, contact Mark Glazer at 301-590-8787 or mglazer@gcaar.com.

GCAAR in the news Real Estate Radio Network

WRC 1260 The Todd LaBorwit Show May 24, 2014 Greg Ford, 2014 GCAAR President featured

You identify a space to have the class and provide GCAAR with the address of the location, secure the necessary AV equipment (screen, projector, flipchart – if you do not have a projector GCAAR may be able to supply one), provide any refreshments, and give GCAAR a list of all of the registered agents, no later than 48 hours before the start of the class. That’s it.

L-R: Phil Andrews, Ike Leggett, Shawn Pharr, AOBA; Lou Peck, Doug Duncan, Bob Kaufman, MNCBIA; Ed Krauze, VP Public Policy, GCAAR.

GCAAR RPAC Chair and 2012 President Bonnie Casper with Phil, Ike, Lou, and Doug.

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Capital Area REALTOR® • May/Jun 2014

Capital Area REALTOR® • May/Jun 2014

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housing statistics

by Fred Flick, PhD, Consultant/Housing Economist

MONTGOMERY COUNTY & DC Montgomery County Sales Market For the month of April, the combined – single-family and condo/coop -- sales market had a pretty lackluster performance. The total unit sales volume came in at 871 properties, but that dropped almost 12% from a year before. The monthly sold dollar volume totaled $449,812,720, and was down over 7% from a year before. The average sold price came in at $516,433 – edging up 4.75%; but, the median price of $400,000 edged down just under 1% from a year ago. Properties sold in April turned over faster than a year ago. Average days on the market totaled 44 – 6 fewer days than in the previous April. But, it was a bit less of a seller’s market this April -- the ratio of average sales price to average original listing price was 97%, down less than 1% from last year. Nevertheless, the inventory was in much better shape. April active listings totaled 2,414 properties, and this level was over 23% above that of April 2013. The high appreciation rates of last year and higher inventory levels are putting pressure on sellers and prices.

April Single-Family Homes

For the first four months of 2014, year-to-date settlements and contracts were down significantly from a year ago. The 2,029 April year-to-date single-family settlements were more than 8% under the same period in 2013; and, year-to-date contracts (2,912) dropped almost 8% from a year before. The direction of the results was similar for the April monthly figures. Indeed, April settlements (648) were almost 15% below a year before, and new contracts for the month (1,059) slipped over 2%.

However, the general trend of inventory has been upward. At the end of 2013, total single-family active listings came in at 1,330 homes. By April, there were 2,127 total actives and these were

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Capital Area REALTOR® • May/Jun 2014

26% above the level of a year before. Moreover, the 1,476 property listings for April were 4% above those of April 2013. But even with this growth in listings, at the April contracts pace, there was only about a 2-month supply of properties.

Moreover, April inventory substantially exceeded the levels of the first third of 2013. April condo/coop active listings (534) came in 25% above the level of a year before. However, monthly new listings (363) slipped almost 5% below the April 2013 figure. Still, the monthly contract pace was less than a 2-month supply of properties. Supply is likely to rise as prices have shown positive appreciation.

Washington, DC Sales Market This April, the District of Columbia combined unit sales pace was just a bit down compared to a year before. It totaled 635 properties, declining about 2% from a year ago. However, the sold dollar volume of $391,997,645 jumped 10% from the previous April. The average sold price came in at $617,319, bouncing over 12%; and the median sold price was $499,900 rising over 6%. Sellers still seem to be in the driver’s seat in this market. The average days on the market figure came in at 33, and that was down from 42 in April 2013. Furthermore, the average sales price to average original listing price ratio came in at 98.7%, up just a bit from a year before. Accordingly, inventory was up a bit. April inventory totaled 1,106 actives and that figure was up 2% from a year ago. Below, we provide data for single-family and condo/ coops for April and year-to-date April.

So far, 2014 continues with price performance off a bit from last year. The 2013 year-end average sales price was $573,281, and the median was $460,000. Through April, the average and median prices were $566,402 and $441,185. These are down 1.2% and 4.1%, respectively, from the 2013 prices. And, a continuing solid growth of inventory will continue to make appreciation difficult.

April Condominiums and Cooperatives

Fortunately, the month of April was only a little bit cruel for Montgomery County condominium and cooperative sales. Through April, there were 733 condo/coop settled sales – down 4% from a year ago. And, for the month, settlements declined almost 2% to 223 units. April contracts also showed declines. Year-to-date contracts (960) dropped 7% from last April; and, the 303 new monthly contracts slipped a bit over 1%.

April Single-Family Homes Contrary to the single-family market, the 2014 condo/coop market is showing positive price appreciation. For 2013, the average price of $269,950 was up almost 7.7% from 2012; and, the median price of $220,000 was 5.6% higher. Furthermore, through April, the average price of $276,509 rose 2.4%; and, the median of $223,000 edged up 1.4% from the 2013 figures. Still, these figures look pretty good when compared to a national economy that is growing at about 2% with 1% inflation.

The Washington, DC single-family sales market has been a bit soft so far in 2014. April year-to-date settlements (1,127) edged down by almost 1%, and April new settlements (322) slipped by the same percentage from 2013. The recent performance of contracts improved, but up until spring it has been weak, as well. Monthly single-family contracts (462) rose 2% from a year before; however, April year-to-date contracts (1,404) declined almost 2%.

The District’s April single-family inventory was significantly below the levels of a year ago. April total active listings totaled 579 properties—down almost 6% from a year ago. But, new single-family listings for the month (558) rose over 2% from a year before. Accordingly, at the April sales rate, there was only a 1.25-month supply of homes. ... continued, page 18

Capital Area REALTOR® • May/Jun 2014

17


housing statistics The best news this spring was the most recent jobs report. Nonfarm payroll employment increased by 288,000 jobs in April. In fact, total payroll expenses rose and almost hit the peak just before the 2008-2009 recession. Also, the household survey for the unemployment rate came in with a ‘low’ 6.3% rate. However, this lowered unemployment rate was due to more potential workers dropping out of the labor force. While these numbers look pretty good, we are still a long way from a full-employment and high-growth economy. But, we are getting closer and, so far, at the cost of only about 1% inflation. Price performance has been soft as well. Home prices through April are down slightly from the end of last year. In 2013, the average DC single-family home cost $711,905 with the median price at $599,900. This resulted in appreciation rates of 8.6% and 13.2%, respectively, over 2012. However, so far through April, the average price of $711, 031 was down slightly; and, the median of $573,000 has dropped by 4.5%. This is still the beginning of the spring buying season, but there may be a bit of a price correction from last year’s highs going on.

April Condominiums and Cooperatives

The good news is that the DC condominium and cooperative market is doing better than the single-family market. Year-todate April settlements (1,070) were up almost 1% and contracts (1,344) rose almost 2% from a year ago. Moreover, monthly contracts (438) edged up about 1% over last April. However, April settlements (309) fell almost 5% from a year before.

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Capital Area REALTOR® • May/Jun 2014

On the supply side, listings are up strongly from a year ago. This February was the low point at just over 520 properties. But, by the end of April, listings totaled 636 units and were up 13.6% over April 2013. Similarly, the 537 April new listings were almost 4% higher than a year before. Nevertheless, at the April contracts pace, there was only a 1.5-month supply of properties.

With tight supply, condos and coops experienced very good appreciation rates in 2013. Annual average and median prices were up 5.9% and 7.5% from their respective 2012 figures. However, through April, prices are showing some softness. While the April average of $461,977 was up 1.6%, the $399,900 median slipped 2.1% from the 2013 figures. This is still early in the game, but there seems to be some slowing and correcting here, as well.

National Resale Market Nationwide, total existing home resales in March (most recent) totaled 4.59 million units at a seasonally adjusted and annualized rate (saar). The monthly figure slipped 0.2% below February and was 7.5% below the rate for March 2013. However, the March median price of $198,500 jumped almost 8% from a year before with the $246,800 average rising almost 6%. At the end of March, there was about a 2-million unit inventory (saar), which represented just over a 5-month supply of homes. That inventory was up 4% from February, and over 3% above the March 2013 stock.

Monetary Policy, Interest Rates, and Inflation

The Fed continued to cut monthly purchases of U.S. Treasury securities and mortgage bonds in April. At this point, it appears they will stick with this strategy throughout the year, unless there is a strong reversal of the growth and employment trend. They also are continuing to say they will put pressure on short-term interest rates into 2015. Recently, bond markets have rebounded and are continuing to keep long-term interest rates relatively low.

For the single-family resales market, March sales (4.04 million, saar) equaled the level of February, but were 7.3% below the pace of March 2013. However, the single-family median price ($198,200) rose about 7.4% and the average ($246,200) moved up 5.6% from a year ago. In the existing condo/coop market, sales units (550,000 saar) were 1.8% below February, and over 8% below March 2013. Nevertheless, the national condo/coop median price came in at $200,800 – bouncing up almost 12% from a year before. The average price ($251,300) jumped 8%.

The stock market is still holding firm, setting new closing records, although there is considerable volatility in these indexes, especially for tech firms. Although mortgage rates are up about a percentage point from a year ago, there are not likely to be large spikes in rates. The stock market seems to be waiting for a significant correction, but there are not many safe places to put one’s money. Similarly, bond rates seem to be stuck in a range as well. The Fed continues to promise to keep short-term rates low into 2015. Nevertheless, some analysts feel that consumer prices will start rising soon, although at slow rates. This should not be a problem in the short-term, but in a year we could see some substantial increases, and the Fed would have to reconsider some of its policy approaches.

Economic Growth and Jobs

The Bottom Line

The April 30 Bureau of Economic Analysis’ advance estimate of first quarter 2014 real GDP growth (the economic growth rate less the inflation rate) came in at a weak 0.1%. Many forecasters had estimated that the fourth quarter rate would be small and some are now expecting the revised figure (at end of May) will put us at negative real growth for the first quarter. It was expected to be low because of the bad weather throughout the country. Nevertheless, many forecasters expect the second quarter to show a substantial rebound. In the fourth quarter of 2013, real GDP increased about 2.6% -- a pretty healthy rate given the history of the financial recession. Overall, 2013 achieved a real growth rate of only 1.9%. However, most economists still are bullish on U.S. growth, business profits, and the economy for 2014.

The 2014 real estate markets have started out and continue to be a bit weaker than they were in 2013. Some of this may be due to the late winter weather, but also to the fact that 2013 was a very good year. Some sales and price corrections can be expected. This is true for stock markets as well. Nevertheless, the combined April performance was reasonable. Given some of the uncertainties in the economy, we should moderate our expectations for sales volumes and price appreciation.

Capital Area REALTOR® • May/Jun 2014

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GCAAR Members Complete

2014 MAR Leadership Academy GCAAR

members Jan Brito, Jo-Ann Henry, and Moquit Malik recently completed the Maryland Association of REALTORS® (MAR) Leadership Academy and were among the 20 honored graduates in ceremonies held in Annapolis. The MAR Leadership Academy was formed by REALTORS® who understand the important role they play in their community. Enhancing their leadership skills, knowledge, and competencies helps REALTORS® make a difference in their personal lives and in their 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. GCAAR, one of 16 local REALTOR® Associations in Maryland, is a strong advocate that recognizes the important of the program to the Association’s future.

L-R, 2014 MAR President J. Russell Boyce, Jan Brito, 2009 NAR President Charles McMillan.

ENJOY EXCEPTIONAL URBAN LIVING WITH GORGEOUS OPEN SPACE & THE CONVENIENCE OF METRO! Townes at the Hampshires Four level townes with garage from the high $400’s Washington, DC 202.499.5977

2009 NAR President Charles McMillan addressed the graduates in his “Leadership from the Heart” presentation, saying that “service to others was the noblest attribute a great leader could possess.”

City Homes at the Hampshires Luxury single family homes from the high $600’s Washington, DC 202.499.5977

L-R, 2014 MAR President J. Russell Boyce, Jo-Ann Henry, 2009 NAR President Charles McMillan.

Townes at Shady Grove Metro Four level townes with garage from the high $500s Rockville, MD 301.880.1222

Momentum Shady Grove Luxury Condominiums Now Accepting Reservations

L-R, 2014 MAR President J. Russell Boyce, Moquit Malik, 2009 NAR President Charles McMillan.

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Capital Area REALTOR® • May/Jun 2014

comstockhomes.com ® Capital May/Jun 2014 2014 Capital Area Area REALTOR REALTOR® •• May/Jun

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GCAAR Welcomes New Emeritus Members!

T

he 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:

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Capital Area REALTOR® • May/Jun 2014

Sylvia Bergstrom

Andrew Greenspan

Francesca Dahlgren

Linda Hughes

Cynthia Davis

Louise Lewis

Judith DiFilippo

Charlotte Pascoe

Alice Fernandes

Frances Silk

Amy Fisher

James Thomas

Diann Gottron

Jean Wright


???

quiz

RPAC

What Do You Know About Home Seller Generational Trends?

How much do you know about the generational differences among today’s home sellers? Take this quiz, based on the findings of the 2014 Home Buyer and Seller Generational Trends survey, to find out. Q.1 Which generation comprises the largest group of home sellers? Gen Y (ages 33 and younger) Gen X (ages 34 - 48) Younger Boomers (ages 49 - 58) Older Boomers (ages 59 - 67) Silent Generation (ages 68 - 88)

Q.2 When selling a home to move to a new home, the trend for Older Boomers (ages 59 - 67) is to move to a: a larger, higher-priced home a similar home a smaller, lower-priced home

Q.3 Which is the most frequently-cited reason given by Younger Boomers (ages 49 - 58) for selling a home?

Q.4 Which generation of home sellers is most likely to sell a home after having lived in it for 8-10 years? Gen Y (ages 33 and younger) Gen X (ages 34 - 48) Younger Boomers (ages 49 - 58) Older Boomers (ages 59 - 67) Silent Generation (ages 68 - 88)

Q.5 Which generation of home sellers is most likely to offer incentives to attract buyers? Gen Y (ages 33 and younger) Gen X (ages 34 - 48) Younger Boomers (ages 49 - 58) Older Boomers (ages 59 - 67) Silent Generation (ages 68 - 88)

Home is too small Job relocation Want to move closer to friends and family Want to move closer to current job The questions and answers in this quiz were taken from the 2014 Home Buyer and Seller Generational Trends survey. This annual survey conducted by the National Association of REALTORS® provides insight into, and detailed information about, generational trends of home buyers and sellers. For more information, visit realtor.org or scan the QR code to get the full report. Answers: 1. Gen X (ages 34 - 48), 2. a similar home, 3. Job relocation, 4. Gen X (ages 34 - 48), 5. Gen Y (ages 33 and younger)

Get Seven Hours of Virginia Required CE at This Year’s

REALTOR® Fest July 22!

Join us for a day of education and networking on July 22 at the Bethesda North Marriott with dynamic instructors, exhibitors, and relevant courses designed to take your real estate career to the next level!

New this year:

7 hours of Virginia Required CE Credits! You can also get 7.5 hours of Maryland Required and 9 hours of DC Required! In addition, GCAAR members will pay only $20 for nonCE classes!

Tuesday, July 22 8:00 a.m. – 8:15 p.m. Bethesda North Marriott 5701 Marinelli Road North Bethesda, MD

Thank You RPAC Investors Platinum “R” ( $10,000)

Ed Krauze

Gregory Coggins

Dana Landry

Lori Connor

Dale Ross

Elizabeth Lavette

Christopher Darby

Justin Levitch

Anthony DeVol

Golden “R” ($5,000)

Peg Mancuso

Samuel Dweck

Matthew McCormick

Jeffrey Ganz

Ellen Morrell

Andrea Gaus

Shelly Murray

Dorie Glass

Frank Pietranton, Jr.

Scott Goldberg

Leigh Reed

Jacqueline Grenning

Frederick Roth

Sally Hamidi

Jason Sherman

Gwen Henderson

Jennifer Smira

Colin Johnson

Frank Snodgrass

Ellen Katz

James Thomley

Anthony Mancuso

Patrick Weed

Kevin McDuffie

Margot Wilson

Dennis Melby

Edward Wood

Thomas Muldoon

GCAAR

Bonnie Casper Carole Maclure

Crystal “R” ($2500) Jamie Coley Fred Kendrick Jill Pogach Michaels Michael Moran Randy Rothstein Christopher Suranna Holly Worthington

Sterling “R” ($1,000) Koki Adasi Charles Burger Thomas Daley Suzanne Des Marais James Downing Jessica Evans Greg Ford Harold Huggins Adrian Hunnings Angela Jones James Kaull Tim Knobloch

Vittorio Muzzatti

Capital Club ($250-$999) Briana Ayala Wendy Banner Frederic Bates David Bediz Elizabeth Blakeslee Kevin Breckenridge Jan Brito Thomas Brockett

Allan Prigal Bonnie Roberts-Burke R. Bradley Runyan Susan Sanford Marie Shannon P. Joy Siegel Marty Stanton

(as of June 10, 2014)

Nathan Carnes Thomas Castagnola Marilyn Charity

Register at

realtorfest.com

Realtor Party ®

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Capital Area REALTOR® • May/Jun 2014

Capital Area REALTOR® • May/Jun 2014

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public policy Montgomery County

District of Columbia

GCAAR Supports Increased Property Tax Credits for Limited Income Seniors

Legislative Success: No New Radon Disclosures

In April, GCAAR President Greg Ford testified in support of a new bill which would raise the County’s Senior Citizens of Limited Income Property Tax Credit. As housing prices rise, so do property taxes – a growing burden for homeowners with modest and fixed incomes. Property tax credits help ease these mounting costs, giving more residents the ability stay in their homes. GCAAR urged the Council to increase income eligibility limits and consider offering similar benefits to disabled residents of limited means and veterans’ widows.

GCAAR Members Appointed to Housing Opportunities Commission

GCAAR members Jackie Simon and Mynor Herrera were recently selected to serve on the Montgomery County Housing Opportunities Commission (HOC). HOC operates as a public housing agency, a housing finance agency, and a housing developer. It provides affordable housing and supportive services to enhance the lives of low and moderate-income families. Jackie is currently a member of GCAAR’s Public Policy Committee, and Mynor is a former member of GCAAR’s Board of Directors. Congratulations Jackie and Mynor!

In a major legislative victory, the DC Association of REALTORS® (DCAR) worked to stop a bill that could have severely impacted real estate transactions for thousands of DC homebuyers. Thanks to the efforts of your DC State-level Association and its dedicated membership, REALTORS® will not need to worry about new radon disclosures at the closing table. DCAR celebrated a huge victory in the April 1 Democratic Primary elections with 100% of our endorsed candidates winning their races! Calls for Action, mailings, phone calls, RPAC donations, and volunteer hours were just a few of the ways DCAR got involved in the April primaries. The fights are not over - DC’s General Election is scheduled for November 4, 2014. Watch for increased support efforts by DCAR for our candidates in the coming months!

DCAR April Speaker Series Hosts Tony Williams

DC’s former Mayor Anthony Williams was met with a warm reception by DCAR members at the Speaker Series event on April 10. Williams shared his insight as Chairman of the Tax Revision Commission and how his administration started the revitalization of the District that has continued over the years. Attendees asked tons of questions about the tax revision recommendations which

The Maryland General Assembly adjourned April 8, 2014 with some great victories for Maryland REALTORS®. • Eminent Domain and Mortgages - Passed

Maryland became the first state to pass a prohibition on seizing mortgages or deeds of trust through eminent domain. • Pit Bull Legislation - Passed

Bill eliminates strict liability for landlords in cases involving pit bulls owned by tenants. Landlord liability will revert back to negligence standards. • Interest on Security Deposits - Passed

Lowers the mandated interested rate on rental security deposits from 3% to a floating rate measured by the U.S. Treasury Department or 1.5%, whichever is higher.

• Mortgage Forgiveness Debt Relief - Passed

Extends state tax relief for mortgage debt forgiveness for two years. The amount of debt that remains tax free was lowered from $1M to $100,000 for individuals and from $2M to $200,000 for married couples. • Maryland Estate Tax - Passed

Unifies state estate tax credit with the federal estate tax credit by January 1, 2019.

Capital Area REALTOR® • May/Jun 2014

Advocacy Takes Center Stage at NAR’s REALTOR® Party Convention

2014 DCAR President Bonnie Roberts-Burke with Tony Williams.

DC Advisor for Education Briefs REALTORS® at May Speaker Series

DCAR’s May Speaker Series featured Senior Policy Adviser Claudia Lujan from the Deputy Mayor for Education’s office. DC is currently revising Public School boundaries after nearly 40 years of the status quo. Ms. Lujan set the record straight on the proposals. Here’s what you should know: • The committee overseeing the revision includes 23 community members, District agency representatives, and former educators. • Population and demographic shifts over the last 40 years have affected school supply and demand. • Any boundary changes made by the commission will take effect in the 2015-16 school year. • Keep an eye out in DCAR & GCAAR’s e-newsletters on this key issue! DCAR’s Speaker Series aims to bring together REALTORS® and government officials who directly affect the real estate business. All upcoming DCAR Speaker Series can be found at dcrealtors.org.

The REALTOR® Party Convention & Trade Expo is where the National Association of REALTORS®’ members take an active role in advancing critical public policy and legislative issues facing the real estate industry. GCAAR members joined the Maryland Association of REALTORS® to visit the offices of Senators Barbara Mikulski (D-MD) and Ben Cardin (D-MD) during this year’s conference May 12 - 18 in Washington, DC. Here’s what we want lawmakers to know:

Secondary Mortgage Market Reform

REALTORS® support restructuring Fannie Mae and Freddie Mac to ensure affordable mortgages are available. Without government involvement the housing finance sector will collapse, resulting in a major disruption to the nation’s economy.

Preserve FHA

Ensure that the Federal Housing Administration (FHA) single-family program has the tools and policies to provide access to safe, affordable mortgage financing for qualified borrowers nationwide, without burdensome limitations.

Protect Real Estate Related Tax Policies

Remember the vital role that real estate tax provisions play in the nation’s housing markets and economy. Tax reform is important but changes should do no harm. Several tax provisions vital to distressed homeowners have expired and need to be extended. Visit realtoractioncenter.org for details on these and other federal issues affecting real estate.

• Condo/HOAs – Not Passed

Despite major advocacy efforts by MAR and GCAAR, legislation to limit Condo/HOA fees and streamline disclosure rules did not pass. The significant strides made by REALTORS® are not lost. We expect to continue seeing these issues on top of our agenda.

For details on all the bills reviewed by MAR & GCAAR this session, visit mdrealtor.org.

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on the Hill

DCAR REALTOR®-Endorsed Candidates Sweep Elections

Maryland General Assembly Maryland: 2014 General Assembly Session Achievements

are now in the hands of the DC Council. It was clear that REALTORS® missed Mayor Williams’ more frequent presence in the halls of DC government, but his influence remains strong as CEO of the Federal City Council.

DCAR Board member Ed Wood with Claudia Lujan.

GCAAR members visit Sen. Ben Cardin. Capital Area REALTOR® • May/Jun 2014

27


legal hotline By Chris Darby, Tom Muldoon, and John Nalls of Counselors Title, LLC, and Pardo & Drazin, LLC, General Counsel

Q A

Question: Who may hold a rental Security Deposit in Maryland and what are the requirements for landlords?

Answer:

The security deposit in Maryland is typically held by the landlord, but can be held by an escrow agent, if provided for in the contract. If $50 or more, the deposit must bear simple interest of 3% per year*, accrued at 6-month intervals from the date the security deposit was paid. Below is some general information: • A security deposit is any money paid by a tenant to a landlord that protects the landlord against damage to the rented property, failure to pay rent, or expenses incurred due to a breach of the lease. • The security deposit may not be more than two months’ rent. If tenant is overcharged, they have the right to recover up to three times the extra amount charged, plus reasonable attorney’s fees.

• Tenant must receive a receipt for the security deposit. The receipt can be included in the written lease. There is a $25 penalty, if the landlord fails to give you a receipt. • The receipt or lease should tell tenant of their right to receive from the landlord a written list of all existing damages in the rental property, if tenant makes a written request for it within 15 days of taking occupancy. If a list of the existing damages is not provided, the landlord may be liable for three times the security deposit, less any damages or unpaid rent. • The landlord must return a tenant’s security deposit plus interest, less any damages rightfully withheld, within 45 days after the tenancy ends. If the landlord fails to do this without a good reason, tenant may sue for up to three times the withheld amount, plus reasonable attorney’s fees. *3% interest is changing in 2015. See page 26 for details.

Q

Question: I am Broker in Washington, DC and I have a question

on disclosure and disclaimer. The seller lives in North Carolina and has not lived in the house for over 20 years. The seller wants to sell the house “as is” with no warranties expressed or implied. Is the seller still required to complete the disclosure form for either an owner/occupant and/or investor buyer? Do we have a disclaimer form in DC?

A

Answer: A Disclosure is required for all owner occupant buyers. Unlike in Maryland and Virginia, there is no disclaimer option in the District. Therefore, unless exempt under the DC Residential Real Property Seller Disclosure Act, all sellers of DC property consisting of 1 to 4 residential dwelling units wherein the purchaser expresses, in writing, an interest to reside the property, are required to provide a Seller’s Disclosure Statement (GCAAR Form 919) and provide information based upon his or her actual knowledge. Since it is difficult to know at the time of completing the Disclosure whether the potential buyer intends to reside in the property, the best practice is to provide the Disclosure to all potential buyers. This could be that rare situation where most of the seller’s answers to the questions asked on the form would be “unknown.”

Q A

Question: My client is “renting back” their home for 24 days post

settlement. Is there a standard practice for a security deposit in a post settlement occupancy situation, such as a percentage of the sales price?

Answer: No, there is no “standard” answer to this question, nor is

there any legal requirement for a security deposit or the amount thereof. To determine whether to request a security deposit and the amount is a function of negotiation between the parties. The purpose of the deposit is to ensure that, upon the expiration of the

post settlement occupancy, the property is in the same condition that the parties agreed upon had it been vacated at the time of settlement. I would suggest that the parties use the GCAAR “Post Settlement Occupancy Agreement” (Form 1309) for this purpose.

Q

Question: If a buyer’s agent sends a conditional loan commitment letter to the seller’s agent, does that remove the financing contingency? If so, and if those conditions are not met, would the buyer be in default if the deal did not go through? For example, one of the conditions is verification of employment within 5 days of closing. If the buyer were to be fired from his/her job, the lender would not be able to fund the loan. Since that was a condition of the loan approval, would the buyer be in default or still protected?

A Answer:

Under the GCAAR Conventional Financing Contingency (GCAAR Form #1352) (the “Contingency”) there are two ways to remove the Contingency: (a) deliver to Seller a firm written commitment(s) for financing from Lender; or (b) deliver evidence to Seller that Buyer has sufficient funds available to complete settlement without obtaining financing. Under this language, a conditional written commitment would not satisfy the obligations of the contract. However, since there is no definition of a “firm written commitment,” and if the seller is willing to accept the conditional written commitment as satisfaction of the contingency, the financing contingency could be removed with a conditional loan commitment. So, in your case, if the seller accepted the conditional loan commitment as satisfaction of the contingency, and the buyer lost her job, the buyer would no longer have the protection of the contingency. The fact that the commitment stated verification of employment was a condition of the loan approval does not alter the agreement between the parties that the conditional loan commitment satisfied the contingency.

Disclaimer: The answers provided here are the opinion of the authors, are informational purposes, and are only for GCAAR members. Counselors Title, LLC, nor Pardo & Drazin, LLC is providing legal advice, but rather providing a general statement of law. No lawyer/client relationship is - or will be - established as a result of the material which follows. Readers are encouraged to retain their own counsel for their specific questions. Answers may have been edited for formatting purposes.

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Capital Area REALTOR® • May/Jun 2014

29


MRIS Compliance Refresher MRIS

is committed to maintaining the best, most accurate listing information available in the MLS system. To ensure that data entered into MRIS is accurate, notifications are sent to listing agents if data corrections are needed. Don’t wait until you receive a warning to learn how you can prevent future notifications. Paying attention to these Compliance reminders when entering a listing can help you sell your property faster and avoid unnecessary fines!

Non-MLS Listings: Get those listings in! All listings must be entered into MRIS unless the seller has requested in writing that the seller does not want to market their property through the MLS. It is recommended that the listing agent review the advantages of having their property in the MLS in their discussions with the sellers about the marketing of the property.

Electronic Distribution of Listings: Do you know where your listings are? The Broker of Record determines where their listings are syndicated (distributed to public websites). ListHub is the tool that MRIS and Brokers use to syndicate the broker’s listings to sites such as Zillow, Realtor. com, Trulia or any other non-MRIS Broker website. Please get your broker’s permission before sending your listings to a public website. Distributing listings belonging to another agent or broker is strictly forbidden and will result in MRIS sanctions.

Delinquent Settlement Date: Don’t be late, update that Settlement Date! If your listing has settled, change the status to SOLD. If settlement has been postponed, revise the estimated close date. If the property is not going to close, revise the status to ACTIVE or to WITHDRAWN.

Photos: Pictures help listings sell faster and help you avoid a compliance notification! You must add a photo of the exterior of the property within 48 hours of adding a listing to Keystone. If the seller does not want a photo or you need additional time to shoot a photo, select the “No Photo per Seller” option. You can always upload the photo at a later date. Other important photo “don’ts”: You may not use a photo from another agent’s listing. Also, don’t upload photos that have

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education schedule

broker or agent branding information or any photos that have text on them (e.g. near metro, great location, freshly painted).

Delinquent TEMP OFF Status: Don’t forget to take TEMP OFF off! If your listing is in TEMP OFF status, you must change the status back to ACTIVE within 21 days. Should you need additional time, contact the Compliance Department for an extension after you have received a notice.

Inappropriate Remark Information: Lose the numbers! Do not enter phone numbers, contact information, broker or agent branding, showing instructions or references to compensation in the Internet (Public) remarks. This information may be entered into the General (Agent) remarks.

Delinquent Contingency Expiration Date: You’re late for a very important date! Please remember to update your contingency expiration dates if the last contingency expiration date (contingency due date) is in the past. If the contingency is third party approval for a distressed sale, you may enter the proposed settlement date in the contingency expiration data field. Once the contingencies have been met, change the status to CONTRACT.

Inappropriate Direction Information: Where is your listing located? Buyers can find your property if you provide complete directions on listings. References to “Use GPS” or other online mapping programs are prohibited unless the reference is also accompanied by directions.

Ownership: Ownership types and property types are not always equal! Enter the correct ownership type and not the style or type of the property in the Ownership field. For example, if the property is a townhouse, but the ownership is condo, enter condo under the ownership and townhouse under Type. Ground rent is a specific type of ownership found primarily in Baltimore and part or Anne Arundel County. Help us keep your data clean and accurate, visit MRISblog. com for regular Compliance tips and reminders! In addition, the MRIS Rules and Regulations, Listing Compliance Reports, and more are always available at MRIS.com/Compliance.

July 22, 2014

Maryland Fair Housing CEU: 1.5 hours MD (Required); DC (Elective) Instructor: Al Monshower Time: 1:30 – 3:00 p.m.

REALTOR® Fest CEU: up to 7 hours VA (Required); 7.5 hours MD (Required); 9 hours DC (Required) Time: 8:00 a.m. – 8:30 p.m. * Bethesda North Marriott Hotel & Conference Center

July 16, 2014

No Tax ID Number: Get the Tax ID right! The tax number must be entered exactly as it appears on the MRIS Public Records. To avoid errors, use the Tax auto-fill feature in Keystone. Do not use the street type (Ave., Blvd., etc.) or the Advertised Subdivision in the Tax AutoFill search.

July 11, 2014

July 9, 2014 2011-2013 Maryland Legislative Update CEU: 3 hours MD (Required), DC (Elective) Instructor: Counselors Title Time: 10:00 a.m. – 1:00 p.m. * NAR Building/3rd Floor

July 9, 2014 Rental Property Management CEU: 3 hours MD & DC (Elective) Instructor: Jean Poitevien Time: 1:00 – 4:00 p.m.

July 9, 2014 Maryland Code of Ethics & Predatory Lending CEU: 3 hours MD (Required) & DC (Elective) Instructor: Counselors Title Time: 2:00 – 5:00 p.m. * NAR Building/3rd Floor

July 10, 2014 Financing Issues/Update CEU: 3 hours DC (Required), MD & VA (Elective) Instructor: Jim Semeyn Time: 9:30 a.m. – 12:30 p.m.

July 10, 2014 Understanding Credit Reports, Scoring Models and How to Improve Your Credit CEU: 3 hours MD, DC & VA (Elective) Instructor: Jim Semeyn Time: 1:30 – 4:30 p.m.

July 11, 2014 Maryland Legal & Legislative Update CEU: 3 hours MD (Required) & DC (Elective) Instructor: Al Monshower Time: 9:30 a.m. – 12:30 p.m.

Lunch & Learn Contracts Class CEU: No CE Instructor: Jill Michaels Time: 1:00 – 2:00 p.m.

July 17, 2014 Contract Basics CEU: 3 hours MD, DC & VA (Elective) Instructor: Greg Flynn Time: 9:30 a.m. – 12:30 p.m.

July 17, 2014 Mortgage Basics: Picking Lenders and Getting Approved CEU: 3 hours MD, DC & VA (Elective) Instructor: Chanin Wisler Time: 10:00 a.m. – 1:00 p.m. * NAR Building/3rd Floor

July 17, 2014 Reverse Mortgages CEU: 1.5 hours MD & DC (Elective) & 1 hour VA (Elective) Instructor: Eric Rittmeyer Time: 1:30 – 3:00 p.m.

July 17, 2014 Understanding Credit Reports, Scoring Models and How to Improve Your Credit CEU: 3 hours MD, DC & VA (Elective) Instructor: Chanin Wisler Time: 1:30 – 3:00 p.m. * NAR Building/3rd Floor

July 18, 2014 RPR Basics CEU: No CE Instructor: Barbara Maloney Time: 10:30 a.m. – 12:00 p.m.

July 18, 2014 RPR Advanced: 10 Ways to Use RPR in Your Business CEU: No CE Instructor: Win Singleton Time: 1:30 – 3:00 p.m.

July 23, 2014 Lunch & Learn Contracts Class CEU: No CE Time: 1:00 – 2:00 p.m.

July 24, 2014 Maryland Code of Ethics & Predatory Lending CEU: 3 hours MD (Required) & DC (Elective) Instructor: Jill Michaels Time: 9:30 a.m. – 12:30 p.m.

July 24, 2014 New Member Orientation CEU: No CE Instructor: Prabhjit Singh Time: 1:30 – 3:00 p.m.

July 28, 2014 Maryland Property Conditions Disclosure CEU: 3 hours MD & DC (Elective) Instructor: Thom Brockett Time: 9:30 a.m. – 12:30 p.m.

July 28, 2014 Serving the First Time Homebuyer CEU: 3 hours MD, DC & VA (Elective) Instructor: Thom Brockett Time: 1:30 – 4:30 p.m.

July 30, 2014 MREC Agency - Residential CEU: 3 hours MD (Required) & DC (Elective) Instructor: Jacqueline Talpa Time: 9:30 a.m. – 12:30 p.m.

July 30, 2014 Financing Issues/Update CEU: 3 hours DC (Required) & MD & VA (Elective) Instructor: Jim Semeyn Time: 10:00 a.m. – 1:00 p.m. * NAR Building/3rd Floor continued, page 32 Capital Area REALTOR® • May/Jun 2014

31


education schedule July 30, 2014 MREC Required Supervision CEU: 3 hours MD (Required for Brokers; Elective for agents), DC (Elective) Instructor: Jacqueline Talpa Time: 1:30 – 4:30 p.m.

July 30, 2014 Veterans Administration (VA) Financing CEU: 3 hours MD & DC (Elective) Instructor: Jim Semeyn Time: 2:00 – 5:00 p.m. * NAR Building/3rd Floor

July 31, 2014 Red Flags in Property Inspections CEU: 3 hours MD, DC & VA (Elective) Instructor: Vimal Kapoor Time: 9:30 a.m. – 12:30 p.m.

REAL HEROES Attention Veterans: We’re paying for

you to become a real estate sales professional! Veterans and Military Spouses can receive free training, licensing, and materials to become a Prudential PenFed Realty Sales Professional.* Everything our heroes need to get started is provided, including world class company support. Prudential PenFed Realty is continuing to revolutionize real estate by supporting the communities it serves. Minimum two year agreement with Prudential PenFed Realty.

July 31, 2014 Buyer Beware: Foreclosed & Neglected Properties CEU: 3 hours MD, DC & VA (Elective) Instructor: Vimal Kapoor Time: 1:30 – 4:30 p.m.

CONTACT: 703.877.2714 OR 410.547.5700

Ask us... How our clients receive an average of $4,074 in savings** on their home purchase when they use a Prudential PenFed Realty agent and Prudential PenFed Realty’s affiliates. August 6, 2014 Lunch & Learn Contracts Class CEU: No CE Instructor: Jill Michaels Time: 1:00 – 2:00 p.m.

Call your local Prudential PenFed Realty Real Estate office!

*Reimbursement from Prudential PenFed Realty not to exceed $2,500.00 in their first year as a Prudential PenFed Realty sales associate to help offset the fees and costs associated with becoming a real estate agent (“Real Heroes Program”)

32

Capital Area REALTOR® • May/Jun 2014

**Savings are based on the discounts received by Prudential PenFed Realty’s clients for using Prudential PenFed Realty’s mortgage and title affiliates as compared to purchasing the settlement services from Prudential PenFed Realty’s mortgage and title affiliates without retaining the services of Prudential PenFed Realty.

© 2014 BRER Affiliates, LLC. An independently owned and operated broker member of BRER Affiliates, LLC. Prudential, the Prudential logo and the Rock symbol are registered service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. Used under license with no other affiliation with Prudential. Equal Housing Opportunity. Prudential PenFed Realty is an independently owned and operated member of BRER Affiliates, LLC. PenFed Membership is not required to conduct business with Prudential PenFed Realty. We are proud to be an equal employment opportunity employer: m/f/v/d.


let’swork You & Long & Foster = success in real estate.

There’s a lot of power in this one little character. It can do much more than join two things. It can create magic. More than 45 years ago it created Long & Foster and started us on the path to becoming the nation’s largest independent real estate company. Now we’d like to put the power of & to work for you — by giving you the right combination of support

& independence you need to succeed. While some companies offer you this or that, we give you this & that —

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You & Long & Foster = success in real estate. Join the company that puts their agents first.

Visit LongandFoster.com/Careers Or call 866.967.5563 EOE

Capital Area REALTOR® May/June 2014  
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