2019 GCAAR BOARD OF DIRECTORS INSTALLED Meet Your Leadership Team - page 10
2018 HIGHLIGHTS GCAAR Cares - page 13 Public Policy - page 16
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CAPITAL AREA REALTOR • Sept/Oct 2016 ®
• • • • •
president’s note CAPITAL AREA
R E ALTOR
Capital Area REALTOR® (USPS 017-467) is published five times
IT’S A NEW YEAR
a year by the Greater Capital Area Association of REALTORS®, 15201 Diamondback Drive, Suite 100, Rockville, MD 20850. Periodicals postage paid at Rockville, MD. Member subscriptions account for $10 of each member’s annual dues. Annual subscriptions
Happy New Year and welcome to a fresh start of Capital Area REALTOR®, GCAAR’s print publication published five times per year. Our goal is to provide valuable content to help you in your real estate business while sharing what’s happening at GCAAR. We’d love your feedback and suggestions for new stories, so please feel free to reach out.
are available to non-members for $25. Subscription inquiries may be
GCAAR’s installation in December was amazing, and I want to thank all of our generous sponsors for helping us pull off a great event for our members. I also want to thank the 2019 Board of Directors and Executive Officers for their volunteer leadership and commitment to GCAAR. Lastly, I’d like to thank Tom Daley for being a steadfast President and friend in 2018. I look forward to carrying the torch that he’s passed on to me. I’m excited about taking the helm this year, and in this issue I’ll share my thoughts on my main areas of focus: strengthening relationships, providing resources, and giving back.
The Greater Capital Area Association of REALTORS® makes no
This year will be one of continued progress. I’m excited about our upcoming GCAAR Recognition Awards event on Monday, March 4 at the Bethesda North Marriott. The event will be a great opportunity to engage more of our members and highlight the incredible work they do. I’m also thrilled about the upcoming “Road Shows” where I’ll be coming to visit many of your offices to see how the leadership team and staff can enhance your experience with GCAAR and help you grow your businesses. Finally, GCAAR will continue to be a leader in the community, and we’ll be increasing the efforts of the GCAAR Cares Community Service Committee.
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.
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 firstname.lastname@example.org. 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. Copyright ©2019 by the Greater Capital Area Association of REALTORS®. All rights reserved.
You can read Capital Area REALTOR® online via gcaar.com, so please do and please share. Remember, if you have ideas, comments, or suggestions, feel free to contact us at email@example.com, and follow us on Facebook, Twitter, Instagram, and LinkedIn. Regards,
Koki Adasi 2019 GCAAR President 15201 Diamondback Drive, Suite 100 I Rockville, MD 20850 Phone: 301.590.2000 I Fax: 301.590.2248 I www.gcaar.com
STAY IN TOUCH
R E ALTOR
GCAAR’s New Leadership Team – p. 6
GCAAR Cares: Year in Review – p. 12
Public Policy Highlights – p. 16
Economic Outlook - p. 30
in every issue
Association News – DCAR Highlights
Ask the President
GCAAR Installs 2019 Board of Directors
Don’t Let This Happen to You
Get to Know Your GCAAR Leadership Team
GCAAR Cares: Year in Review
From the GCAAR Classroom:
The (E)state of Affairs in Probate
Meet Your GCAAR Committees
NAR Director’s Report
GCAAR in the News
Welcome New Members!
REALTOR ® Toolbox
The Back Porch
2 CAPITAL AREA REALTOR ® — Winter 2019
board of directors
President-Elect Danai Mattison Sky
President Koki Adasi
Secretary Jan Brito
Treasurer Frank Snodgrass
ask the president
What did GCAAR do to help with the Bright MLS transition and what has been going on since that time? The transition to Bright has been challenging to say the least. Great question! GCAAR worked with Bright MLS in the transition from MRIS. Leading up to the conversion on October 30, we put messaging on the home page of gcaar.com linking to an information page with all of the details about the conversion. In addition, we held training classes at our DC office, and publicized the training classes in Rockville. In the November/ December 2018 issue of this magazine, we did a four-page feature on the some of the key changes in Bright and how to maneuver though some of the processes. We also have been promoting the Bright MLS tutorials available on their YouTube channel in our e-publications - Newsline and Broker Beat. In addition, we have created a page on gcaar.com with the latest updates from Bright based on feedback and suggestions from members. From that page you can join the Bright MLS Facebook group, a private group for subscribers moderated by Jay Thompson, a licensed broker, Inman News columnist, and former Director of Industry Outreach for Zillow.
Immediate Past President Tom Daley
Chief Executive Officer Ed Krauze
Avi Adler Harrison Beacher Thom Brockett Lee Goldstein Jody Goren Brandon Green Gwen Henderson
Justin Levitch Andres Serafini Ellie Shorb Christopher Suranna Kirsten Williams
R E A LTOR
Managing Editor Bobette Banks
Advertising Representative Arlene Braithwaite
Design & Layout Carla Conway, Uncommon Design
In mid January, our Executive Committee met with the Bright leadership to address some of the specific problems affecting our members. From that meeting there were three key takeaways: Increased customer support staff - Bright has increased their customer support staff to be more responsive. Three-minute hold times - Bright is working to get a person's time on hold down to three minutes or less. Increasing the customer support staff should help in this area. Accountability - Our Executive Committee will continue to meet with Bright executives on a regular basis to share concerns and get updates on progress. Since that initial meeting, Bright has been updating us about their progress regarding the issues discussed. With the recent announcement of Tom Phillips stepping down as CEO, we are committed to working with interim CEO Brian Donnellan and his leadership team. We hope that progress will continue and possibly even speed up with the recently announced transition. CAPITAL AREA REALTOR ® — Winter 2019 3
don’t let this happen to you! Submitted by Sandy Rosengarden, EVP, Century 21 Redwood Realty Is There a Lawyer in the House? Have you ever heard your broker or a CE instructor remind you that you are not an attorney and may not act as one? Probably not more than two or three thousand times, right? For example, all agents know that whenever possible, they should use the preprinted contract forms that are approved for the jurisdiction and that original addenda language, for example, should be vetted by an attorney. Agents should also know when to say, “I’m not an attorney, so I can’t advise you on that.” But did you know that agents also have an affirmative obligation to recommend counsel when needed? Article 13 of the National Association of REALTORS® (NAR) Code of Ethics and Standards of Practice states that “REALTORS® shall not engage in activities that constitute the unauthorized practice of law and shall recommend that legal counsel be obtained when the interest of any party to the transaction requires it.” NAR’s Case Interpretation file illuminates this standard with Case #13-3: REALTOR® Norbert Nolaw was the listing broker for a lot owned by his client Lottie Land. Shortly after REALTOR® Nolaw put up his sign, a customer—Milton Miffed—came to him, expressed interest, inspected the property, and made a full price offer. Client Lottie Land was surprised at how quickly she got a full price offer and prepared a counteroffer at a higher price. REALTOR® Nolaw presented the counteroffer to Customer Miffed. Customer Miffed became upset and indicated he would consult his attorney to determine whether he could force the owner to sell at the original offer price. REALTOR® Nolaw advised Miffed that, in his opinion, litigation would be lengthy and expensive, and that ultimately the sale could not be enforced. With REALTOR® Nolaw’s advice in mind, Customer Miffed agreed 4 CAPITAL AREA REALTOR — Winter 2019 ®
to the higher price, and the transaction was consummated. However, shortly after the closing, Customer Miffed complained to the local Association of REALTORS® that Norbert Nolaw had provided bad advice. The Grievance Committee sent the complaint to the Professional Standards Committee, which held a hearing. At the hearing, Customer Miffed said he had intended to consult his attorney, but that REALTOR® Nolaw had persuasively convinced him otherwise. Norbert Nolaw told the hearing panel that he had told Miffed that he could consult his attorney, but that in his opinion, it would be a waste of time. He defended his statement on the basis that he’d said it was only his opinion, that it was not intended as a conclusive statement of law, and that it was, in fact, a correct statement under the law of the state. The panel concluded that REALTOR® Nolaw, in pointing out the fact that legal action was likely to be time consuming and expensive, was stating a practical consideration for Customer Miffed and was proper. They concluded that the expression of opinion as to the probable outcome was not an “unauthorized practice of law” within the meaning of Article 13.
However, the panel noted that a REALTOR® is obligated to “recommend that legal counsel be obtained when the interest of any party to the transaction requires it.” Since REALTOR® Nolaw was aware that the interest of Customer Miffed required a legal opinion as to whether the sale could be compelled, Nolaw was affirmatively obligated to recommend that Customer Miffed consult his attorney to definitively answer that question. Since our friend Norbert Nolaw failed to make that recommendation, he was in violation of Article 13. The lesson is that it’s not enough to say, “I’m not an attorney, and this is just my opinion, but…” If a client or customer has expressed the need for a definitive legal opinion, REALTORS® must not only decline to play the role of attorney, but also affirmatively recommend that the party seek the opinion of counsel. Read the full case here: https:// www.nar.realtor/code-of-ethics-andarbitration-manual/case-interpretationsrelated-to-article-13.
Don’t Let This Happen to You!
association news Scott Reiter Named DCAR CEO Scott Reiter has been named Chief Executive Officer for the District of Columbia Association of REALTORS® (DCAR), where he oversees all operations of the organization. DCAR represents almost 3,000 REALTORS® residing and actively doing business in the nation’s capital. Prior to joining DCAR in the fall of 2018, Scott Reiter spent nearly 20 years at the NAR. In his last role, he served as the vice president of RPAC disbursements and political programs, where he oversaw all political and issue disbursements made by NAR and RPAC—
the nation’s largest trade association PAC. He also oversaw the political field staff in addition to serving as the political field representative for Washington, DC; Delaware; and Maryland. Before joining NAR in 1999, Scott worked for U.S. Senator Ron Wyden of Oregon. Prior to working for Wyden, Scott worked on campaigns and on Capitol Hill from 1990 to 1995 for various members of Congress and candidates from North Carolina, Massachusetts, New York, Virginia, and Kansas. He served as the 2016 president of the National Association of Business Political Action Committees, and is a former board member of the Mid-Atlantic (Washington, DC) Chapter of the American Association of Political Consultants. Scott graduated from Wake Forest University with a BA in history and earned an MA in political management from the George Washington University.
DCAR Installs Dianah Shaw as 2019 President; Ed Wood Receives REALTOR® of the Year Honors The District of Columbia Association of REALTORS® (DCAR) installed 2019 President Dianah Shaw and the 2019 Board of Directors at its annual holiday party and installation on December 13. More than 100 REALTORS® attended the installation, the first to be held at DCAR and GCAAR’s new Dupont Circle office, and several esteemed guests joined for the festivities. Among those special guests were At-Large Councilmember Anita Bonds and National Association of REALTORS® (NAR) Immediate Past President Elizabeth Mendenhall, who installed Shaw and the board, respectively. DCAR also honored its 2018 REALTOR® of the Year, Ed Wood. Ed was the 2015 DCAR president, and he has remained an active volunteer leader. He currently serves as a NAR director for DCAR, and he is heavily involved in the REALTORS® Political Action Committee (RPAC) fundraising efforts.
2019 DCAR President Dianah Shaw
2018 DCAR REALTOR® of the Year Ed Wood
CAPITAL AREA REALTOR ® — Winter 2019 5
feature Koki Adasi Installed as 2019 GCAAR President The newly renovated Watergate Hotel was the place to be for GCAAR’s Annual Meeting, holiday party, and the installation of the 2019 officers and Board members on December 5. Members gathered to mix, mingle, and kick off the holiday season while celebrating the incoming leadership team and 2019 President Koki Adasi. The Affiliate of the Year award went to Marty Stanton of KVS Title. Rookie of the Year was Melissa Lango of Compass, and Shelly Murray of Weichert REALTORS® was the REALTOR® of the Year. Attendees included the following Maryland REALTORS® leadership: Immediate Past President Boyd Campbell, President-Elect John Harrison, Secretary Dee Dee Miller, and CEO Chuck Kasky, as well as local government officials. Kindred, an organization focused on building trusting relationships between parents of diverse backgrounds and school leadership, was recognized for its efforts. A highlight of the evening was the recognition of outgoing CEO Mike Moran, who retired at the end of 2018. The board room at GCAAR’s Rockville office has been named the Michael S. Moran Board Room in his honor.
REALTOR® of the Year Shelly Murray
Rookie of the Year Melissa Lango
Co ng rat ul at io ns t o Ou r 2019 G CA A R B o ard!
6 CAPITAL AREA REALTOR ® — Winter 2019
Affiliate of the Year Marty Stanton
Our 2019 Directors
Long & Foster Real Estate
All Seasons Real Estate
Keller Williams Capital Properties
RLAH Real Estate
Long & Foster Real Estate
RLAH Real Estate
RLAH Real Estate
RLAH Real Estate
Keller Williams Capital Properties
TTR Sotheby’s International Realty
2019 Executive Officers
Koki Adasi Compass PRESIDENT
Danai Mattison Sky Long & Foster Real Estate PRESIDENT-ELECT
TTR Sotheby’s International Realty IMMEDIATE PAST PRESIDENT
Wydler Brothers of Compass SECRETARY
TTR Sotheby’s International Realty TREASURER
2019 Executive Officers L-R: Immediate Past President Tom Daley, President-Elect Danai Mattison Sky, Secretary Jan Brito, President Koki Adasi.
CAPITAL AREA REALTOR ® — Winter 2019 7
GCAAR Installation Highlights
8 CAPITAL AREA REALTOR ® — Winter 2019
GCAAR Installation Highlights
CAPITAL AREA REALTOR ® — Winter 2019 9
Danai Mattison Sky Long & Foster Real Estate
IMMEDIATE PAST PRESIDENT
TTR Sotheby’s International Realty
Get to Know Your GCAAR Leadership Team PRESIDENT
Koki Adasi Compass KOKI ADASI What I wish others knew about GCAAR: The Association’s main mission is to improve the business of its members. If all members took this to heart we'd have many more people engaged with GCAAR. What do I think will be different about GCAAR in the next five years? In the next five years the average age of our members will decrease, more of the services that REALTORS® use in person will be handled online or via an app, and we'll work more closely with surrounding local associations.
My favorite real estate technology is…Homesnap. Before I worked in real estate I… worked at Clark Construction and sold life insurance. I handle difficult situations by… first breathing and then figuring out ways to have a positive outcome. My favorite sports team is…the Washington Wizards...duh. #ballislife
The most rewarding part of real estate is…being able to see firsthand the impact that we have on people’s lives and the community in which we serve.
What’s on my iPhone…I love podcasts and listen to everything regarding sales coaching, building wealth, and having a positive mental attitude. I also have Apple music and you’ll find a nice mix of Kids Bop and top 40 music on my playlists.
The best real estate advice I’ve given and received is…“if you list you’ll last”...Also it’s important to invest in real estate. If you believe in what you sell why not purchase when the right opportunity presents itself ?
DANAI MATTISON SKY What I wish others knew about GCAAR: What an influence GCAAR has in promoting change in our industry! The changes to TOPA are a prime
10 CAPITAL AREA REALTOR ® — Winter 2019
example of our membership at work. There is strength in our numbers and power in our members’ skill that we continue to prove as we lobby for our members’ and consumers’ interests. What do I think will be different about GCAAR in the next five years? I continue to see an even more interactive GCAAR in the next five years— building a deeper connection with our members and sharing our story successfully! Technology will be instrumental in this. The most rewarding part of real estate is…the relationships built. We’re in a people business, and building that connection with others is invaluable. The best real estate advice I’ve given and received is…build your wealth in real estate! My husband and I are working to prioritize investing and building a real estate portfolio in the coming years.
My favorite real estate technology is… DocuSign! Before I worked in real estate I…was in college! I have been working in and around the industry since I was 14 years old. I graduated from the University of Maryland–College Park and went right to work in the new home condo sales arena! I handle difficult situations by…listening first and communicating effectively second. The saying, “we have two ears and one mouth for a reason” is so true! My favorite sports team is…I’ll go with any DC team, only because I’m a native Washingtonian—while we typically aren’t good, I love that we can at least brag on the Caps now! What’s on my iPhone…I really do listen to all types of music; however, I mostly listen to podcasts now! TOM DALEY What I wish others knew about GCAAR: How easy it is to get involved with GCAAR and the importance of getting new blood to participate. What do I think will be different about GCAAR in the next five years? GCAAR/ DCAR will grow stronger politically, building on our current political momentum. We will continue to add member benefit programs, and will see more technology improvements to increase our members’ business success!
Wydler Brothers of Compass
Frank Snodgrass TTR Sotheby’s International Realty
The most rewarding part of real estate is…developing stronger relationships with my REALTOR® colleagues and delivering the American dream, one house at a time. The best real estate advice I’ve given and received is…“encourage and welcome new ideas, and never give in to ‘fear of failure.’”- Mike Moran, former GCAAR CEO My favorite real estate technology is…the new BrightMLS.com conversion potential. Before I worked in real estate I…was a strategic consultant to the founders of Hotels.com. I handle difficult situations by… listening more than talking. My favorite sports team is…anything Boston (Sox, Pats, Bruins, Boston College) What’s on my iPhone is…Spotify and typically some Adele, Sinatra, or Kanye. JAN BRITO What I wish others knew about GCAAR: Every decision made or action taken by the Board, the staff, and the many volunteers involved in committee work is with the best interests of the membership in mind. We are constantly thinking about how to serve our members better.
The best real estate advice I’ve given and received is…it’s about the relationship. Be kind. My favorite real estate technology is…other than my iPhone, it’s DocuSign. Couldn’t live without either! Before I worked in real estate I… was in the IT field for 15 years, having started out on a help desk with no prior experience other than a background in customer service. Prior to that, I was in hotel catering management. I handle difficult situations by… taking several deep breaths and envisioning everything working out. My favorite sports team is…the Washington Kastles What’s on my iPod is…I have Pandora, Spotify and Sonos, and I listen to a wide variety of music. My current faves are JT and Bruno, but they’re nothing like the classic rock I grew up with! FRANK SNODGRASS Frank Snodgrass is a DC native and has been an active GCAAR member both on committees and now in leadership.
What do I think will be different about GCAAR in the next five years? Technology. The most rewarding part of real estate is…the difference I’m able to make in the lives of my clients.
CAPITAL AREA REALTOR ® — Winter 2019 11
GCAAR Cares: Year in Review 2016: YEAR IN REVEIW It was a another busy and productive year at GCAAR and we couldn’t have done it without you. Here are some highlights:
WE EDUCATED Over ___CE credits awarded 6 Broker/Manager Forums 30 Lunch & Learns
WE LOWERED THE PRICES OF CE CLASSES! $10 – in advance $25 – day of class Now that’s a good deal!
WE HOSTED FUN EVENTS We hosted fun events like our GCAAR Night at the Nats and the Halloween “BooLing” party.
YPN: YOUNG PROFESSIONALS NETWORK YPN held five events, increased membership and sponsorships, and stayed committed to supporting younger REALTORS® and supporting community nonprofits.
WE SCORED POLITICAL WINS ON REALTOR® ISSUES
• We successfully lobbied for reduced recordation taxes for DC first-time homebuyers.
WOMEN’S COUNCIL OF REALTORS ® Our Greater Capital Area Chapter continued to provide informative programming with speakers like NAR Economist Lawrence Yun.
• We fought back the Montgomery County sign ban.
HERE’S A STAT BOX
REALTOR® FEST 2016: Over 800 attendees and over 110 exhibitors!
GCAAR Cares presents a check to two of their thirteen 2018 Grant Recipients, A Wider Circle and Pathways to Housing, DC. WE RAISED MORE ISSUES We fought mandatory radon testing in Montgomery County (although we didn’t win we raised the issue on this topic).
GCAAR Cares is pleased to announce its 2018 grant recipients: • • • • • • • •
District Alliance for Safe Housing (DASH) Friendship Place Pathways to Housing DC Miriam’s Kitchen A Wider Circle Community Ministries of Rockville Cornerstone Montgomery Housing Unlimited, Inc.
12 CAPITAL AREA REALTOR ® — Winter 2019
WE ARE OVER 10,000 MEMBERS STRONG!
• Interfaith Works • Montgomery County
GCAAR REALTORS® CARE
Coalition for the Homeless SUCCESSFUL LEGISLATIVE BREAKFAST
See page ____ for 2016 highlights from our Community Service Committee, GCAAR Cares.
• Stepping Stones Shelter • The Arc Montgomery • The Dwelling Place We held another wellattended Legislative Breakfast with newlyelected legislators Chris Van Hollen and Jamie Raskin among the speakers.
Thank you for a great
2016! Let’s work Thank you to all our volunteers. together to make 2017 even better! You really made a difference! Send ideas to firstname.lastname@example.org
What an extraordinary year! Here are some of the highlights • Awarded $35,000 to 13 Montgomery County and Washington, DC nonprofit organizations through our GCAAR REALTORS® Care grants program. • Refurbished a Washington, DC home for Rebuilding Together . ® • Raised over $15,000 at the REALTOR® Fest Silent Auction. • GCAAR’s Education Department designated 25 classes in 2018 to benefit GCAAR Cares, raising over $2,500 for the GCAAR REALTORS® CARE Fund.
This year’s recipients are leaders who endeavor to make the world a better place. GCAAR salutes you.
CAPITAL AREA REALTOR ® — Winter 2019 13
Agent Spotlight MEET RYK PALMER Working, Coaching, and Mentoring While Still Finding Time to Be a REALTOR ® Service is in Ryk Palmer’s DNA. While he’s coaching high school basketball, running basketball clinics, mentoring area youths, and working full time, Ryk still finds time to sell real estate, doing more than 15 transactions in his first year as a REALTOR® with the Capitol Group of RE/MAX Metropolitan Realty. “Everything I do is about building communities, and real estate allows me continue to touch lives and serve others.” BASKETBALL JONES
“I’ve been playing basketball since I was in middle school. It was a great outlet for me and taught me so many life lessons. I love it,” he says. “Being a high school coach and running basketball clinics gets me out on the court with the kids, and I get a chance to mentor them and work in some life lessons. Since tearing my Achilles, it also helps satisfy my basketball fix.” WORKING AT WALTER REED
When he’s not coaching basketball, Ryk works in the White House medical unit at the Walter Reed Medical Center in Bethesda, Maryland, serving all White House staff, veterans, active duty, and dependents. “My work at Walter Reed changed my life. I started at the Navy Medical Center when I was 16. The servicemen and women taught me a discipline that allowed me to turn everyday challenges into growth opportunities! I am forever indebted to them all, and that’s one of the reasons they have become such an important part of my real estate services.” WHY REAL ESTATE?
“Selling real estate is a way to help people realize their dreams. In the DC metro area, it is becoming more and more challenging to find affordable housing, especially for millennials like me, so I see it as my mission to try to help someone start the homeownership process. You may need to start small—say, a condo—but once you make that first purchase, it puts you on the track to move to the next property, and it just builds from there. For those who are not yet ready to purchase a home, I try to put them on the path to future homeownership by telling them about resources such as first-time homebuying seminars, credit counseling, and so on,” he says. “Real estate is a passion for me. I have a competitive drive shaped by my coaches and teammates through basketball, a discipline instilled by my friends at Walter Reed, and a constant reminder from the youth I coach and mentor that your best day is always your next day! I love serving the communities in which I work and play, and I look forward to building the REALTOR® brand in everything I do for my fellow REALTORS® and every client.”
HAVE A STORY YOU WOULD LIKE TO SHARE? Send it to: email@example.com. 14 CAPITAL AREA REALTOR ® — Winter 2019
GCAAR happenings YPN Ends a Busy Year with Its Ugly Sweater Soiree GCAAR’s Young Professionals Network (YPN) wrapped up another busy year with its Ugly Sweater event on December 18 at Caddies in Bethesda, Maryland. The holiday spirit was in full effect with an array of colorful and wacky sweaters. YPN Chair Jake Ryon and Vice Chair Daniel Schuler thanked the attendees for their support in 2018 and encouraged them to continue that support in 2019. A hearty round of applause was given to outgoing CEO Mike Moran for his support of YPN over the years.
CAPITAL AREA REALTOR ® — Winter 2019 15
public policy Montgomery County and Maryland 2018 Legislative Accomplishments and a Look Ahead at 2019 GCAAR’s 2018 Government Affairs efforts led to increased homeowner safety, protected the sanctity of the real estate contract, and forged critical government partnerships.
pressed on the unintended consequences of the bill they proposed. The bill was eventually tabled and now GCAAR is on a work group led by Councilmember Tom Hucker (D –District 5) to advance new legislation.
Improved Carbon Monoxide Safety Standards
Established Meaningful Partnerships
Our major accomplishment came from our work with Councilmember Craig Rice (D – District 2). After a string of carbon monoxide (CO) poisonings, Councilmember Rice found the regulations concerning CO detectors did not cover all necessary dwellings in the County. GCAAR’s Public Policy Committee drafted a bill and the legislation passed the Council unanimously on October 2.
2018 also established meaningful partnerships in Montgomery County. After working with the Department of Environmental Protection on a streamlined energy disclosure information sheet, we were able to shorten GCAAR’s Regulations, Easements, and Assessments (REA) Form. GCAAR was invited to two DEP Green Building Work Group meetings to help draft legislation to incentivize environmentally-friendly building projects.
The Council recognized GCAAR’s work on Carbon Monoxide, and we will continue our work by rolling out a consumer campaign to get the word out to County residents.
2019 Goals We look forward to continuing our work in 2019, ensuring the best possible local real estate landscape for our members and their customers. Here is what we have coming up: • Engaging with Montgomery County’s affordable housing community advocates to advance new initiatives in housing opportunities;
• Advocating for first-time homebuyer tax incentives; • Streamlining the County’s permitting process for homeowners, buyers and sellers; and
Redirected Solar Panel Legislation In another successful campaign, GCAAR hit the brakes on a bill that would have required real estate agents to become experts in solar panel technology. Though GCAAR applauded the Council’s efforts to increase renewable energy usage in Montgomery County, we 16 CAPITAL AREA REALTOR ® — Winter 2019
• Reviewing current laws to determine if there are antiquated rules that hinder the transaction and slow down the sales process.
Something else caught your eye? Email us at firstname.lastname@example.org.
public policy District of Columbia 2018 Legislative Accomplishments and a Look Ahead at 2019 DC’s Public Policy team (led by the District of Columbia Association of REALTORS®) completed one of its most successful years ever in 2018, and it is hoping to carry that momentum into 2019. Below are some of the major accomplishments from the past calendar year.
Passing of TOPA Single-Family Exemption
The biggest victory in 2018 was certainly the passing and implementation of a full single-family exemption from TOPA constraints. TOPA had plagued homeowners and REALTORS® for decades. Thanks to the hard work of REALTORS®, we were able to pass a historic exemption.
Restoration of Real Estate Guaranty Fund
Our team also worked with legislators to restore more than a million dollars to the previously emptied Real Estate Guaranty Fund. This Fund is a safety valve for homeowners across the city, and its absence placed countless current and future DC residents at risk. Its restoration was a major victory for Washingtonians in all eight wards. Other Accomplishments Some of our other 2018 accomplishments included fighting for a balanced landlord/tenant laws, monitoring the usage of the new First-Time Homebuyer Tax Benefit, and working a transparent and reasonable Zoning Code.
SAVE THE DATE Mark your calendars for this year’s REALTOR® Fest at the Bethesda North Marriott on July 8 Join us for an opportunity to earn continuing education credits and enjoy the trade show.
2019 Goals With a historic year in the rear view, here is a look at some of the goals we have for 2019: • A comprehensive overhaul of the District’s Com- prehensive Plan—a critical took for shaping our City’s affordable housing landscape; • Expanding democracy by creating more opportu- nities to encourage residents to register to vote; • Collecting clear data on the success of the First- Time Homebuyer Tax Benefit; and • Working with the District’s Department of Consumer and Regulatory Affairs (DCRA) to improve the permitting process for homeowners. Have something you would like to share or questions? Visit us at www.dcrealtors.org.
Details coming soon!
CAPITAL AREA REALTOR ® — Winter 2019 17
B R I G HT U PDAT E
Your feedback is very important to us. Whether you’re sharing it in a call, on one of our YouTube Live sessions with a trainer, or while speaking to one of our Customer Success Champions in your office, we are listening.
BRIGHT MLS UPDATE
Based on Your Recent Feedback and Questions As a direct result of your feedback, we recently made or are making the following changes: • We are adding a report similar to the previous Gallery View Report to Bright. • We added Legal Subdivision information to the search screen and on all applicable listings. • We’re making changes to the Days on Market (DOM) of listings that were Contingent with Kickout (CTNG/KO) and Contingent without Kickout (CNTG/No KO) in MRIS.
In addition to these changes, we’re listening to your questions and feedback to help us provide tips and information on how to perform various tasks in Bright. Here are three tips from questions we’ve recently received:
1. How can I search for one-lettered streets?
To search for streets with one letter, such as “B” and “C,” scroll to the bottom of the search screen and click Add, next to Additional Fields. Find and select Street Name and click Add again. Go back to your search screen and enter the street letter into the new Street Name field at the bottom of your screen. Now your search should only retrieve results with that one- lettered street.
2. How do I save a listing prior to publishing?
You don’t have to do anything. The system automatically saves your draft every minute or two, and it also saves when you exit the draft.
3. How do I search for multiple MLS numbers?
Search for a list of MLS numbers in the Speed Bar by separating the numbers with a space. The Speed Bar is available on the top of any search page in Bright. Have more questions? Visit our YouTube channel (www.youtube.com/brightmls) for LIVE Q&A events and recorded videos that show how to perform various tasks in Bright.
Recent and Upcoming System Changes:
View a summary of new features and functionality using this link: https://www.brightmls.com/#/release-notes
Have feedback to share? Send a message to email@example.com
18 CAPITAL AREA REALTOR ® — Winter 2019
Compliance Tips What’s the Difference Between “Withdrawn” and “Cancelled” Status? The Bright system has a new status called “Cancelled There are times when the seller decides not to sell their property. Both the listing broker and seller agree in writing to cancel the listing agreement prior to the original listing date. If this applies to you, use the “Cancelled” status. The “Cancelled” status indicates the listing agreement is no longer in effect. Bright also has a “Withdrawn” status The “Withdrawn” status has a different purpose than the “Cancelled” status. Use the “Withdrawn” status when the seller has decided to stop marketing the property. The listing agreement is still in effect until both the listing broker and the seller sign releases to terminate the listing agreement. The listing will automatically change from “Withdrawn” status to “Expired” status on the listing expiration date.
Want to learn more about Bright MLS?
You can watch tutorial videos at www.youtube.com/brightmls.
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association news NAR Chief Economist Lawrence Yun Visits Women’s Council of REALTORS® The Women’s Council of REALTORS® Greater Capital Area, opened 2019 with an informative presentation by Dr. Lawrence Yun, Chief Economist & Senior Vice President of Research, National Association of REALTORS®. Dr. Yun discussed the economic and real estate market outlook in the foreseeable future, and he covered a myriad of topics such as unemployment rates, the government shutdown’s impact on the industry, market trends, and Amazon’s upcoming arrival in Crystal City, Virginia.
Dr. Lawrence Yun
members regarding important topics in the real estate industry. If you’re interested in joining the Women’s Council of REALTORS®, Greater Capital Area, please contact Linda Kibunja at firstname.lastname@example.org, or via phone at 301-996-0216.
The Women’s Council of REALTORS® invites a variety of industry leaders and trendsetters to speak with
L-R: Deborah Davidson, 2019 WCR Secretary; Dr. Lawrence Yun; SVP NAR; Linda Kibunja, 2019 President; Dina Paxenos, Director of Programs; Jackie Bennett, 2019 President, Maryland Women’s Council of REALTORS®; Evelyn Clark, Treasurer; Koki Adasi, 2019 GCAAR President; Hildy Pollard, Director of Membership; Martha Liriano, President-Elect.
Mark Your Calendars!
Take advantage of these upcoming classes and events in 2019.
March 28 – YPN Spring Happy Hour
May 15 – GCAAR/NVAR Boat Ride
April 10 – ABC Happy Hour
June 12 – Broker/Manager Forum –
(Affiliates, Board, Committees)
April 27 – Rebuilding Together® – Montgomery County 20 CAPITAL AREA REALTOR ® — Winter 2019
Real Estate Commissions Update
July 8 – REALTOR® Fest
Realtor Party ®
Thank You to Our 2019 Major & Large RPAC Investors
The President’s Circle is an influential group of REALTORS® who contribute directly to REALTOR®-friendly candidates at the federal level. Political Action Committees, like our REALTORS® Political Action Committee (RPAC), can only legally contribute $10,000 per election cycle to a Member of Congress. The President’s Circle Program supports REALTOR® Party Champions – Members of Congress who have made significant achievements in advancing the REALTOR® public policy agenda. The President’s Circle Program allows REALTORS® to contribute beyond RPAC dollars and increase the strength of the REALTOR® voice on Capitol Hill. GCAAR would like to recognize the following 2018 President’s Circle members:
2018 President’s Circle
Koki Adasi Fred Bates Russell Boyce Jan Brito Bonnie Casper Jamie Coley Harold Huggins Fred Kendrick Ed Krauze Kymber Lovett-Menkiti
Carole Maclure Peg Mancuso Mike Moran Shelly Murray Bonnie Roberts-Burke Dale Ross Dianah Shaw Ellie Shorb Christopher Suranna
Golden “R” Ed Krauze Carole Maclure Frank Pietranton Bonnie Roberts-Burke Christopher Suranna Crystal “R” Jamie Coley Paragon Title & Escrow Scott Reiter Ellie Shorb Sterling “R”
Koki Adasi Avi Adler Wendy Banner Stacey Barton Frederic Bates Jan Brito Chuck Burger Tom Daley Angela Jones Justin Levitch Kymber Lovett-Menkiti Marjorie Rosner Andres Serafini Dianah Shaw Danai Mattison Sky Natalee Snider Marty Stanton Kirsten Williams
Capital Club ($250-$999) Edward Wood David Bediz Russell Brazil Thom Brockett Jamica Browne Lori Connor Lauren Davis Joe Detrick Anthony DeVol Samuel Dweck
Michael Fowler Jeffrey Ganz Scott Goldberg Todd Greenbaum Barbara Henderson Robert Jenets Billy Kinberg Melissa Lango Peter Locker KT Maclure Hank May Barbara Nalls John Peters Constance Rader Matthew Rogers Joseph Sabelhaus Daniel Schuler P. Joy Siegel JD Teitelman JohnYoung *As of February 5, 2019
Why I Invest in RPAC – Tony DeVol, Tradition Title “As an Affiliate member of GCAAR, I have always contributed to RPAC. I consider it an investment in my future and the future of our industry. The work that RPAC does on behalf of our members at the local, state, and national levels cannot be underestimated. Recent changes achieved through RPAC, such as TOPA reform, have an incredible impact on our success as real estate professionals.”
Make the investment today! Invest online at: www.gcaar.com
CAPITAL AREA REALTOR ® — Winter 2019 21
22 CAPITAL AREA REALTOR ® — Winter 2019
NAR Director’s Report Koki Adasi 2019 GCAAR President, NAR Director NAR REALTOR® Broker Summit April 2–3, Austin, TX
It’s Tax Season— Get Tips from the Center for REALTOR® Financial Wellness The National Association of REALTORS®’ (NAR) Center for REALTOR® Financial Wellness is a new resource designed to help REALTOR® members understand their financial planning options and prepare for the future, one step at a time. Looking for a tax strategy? Log in to find info on everything from handling commissions and expense records to maximizing deductions and reducing tax liability. No matter where you are in your career or stage of financial planning, there is something for you—budgeting tools, retirement planning resources, information about investing in real estate, and more. Log in at www.financialwellness.realtor.
NAR’s HOME Survey—Homeownership Remains Part of the American Dream, But Becoming More of a Challenge Homeowners and non-homeowners both strongly consider homeownership part of the American Dream, according to NAR’s Aspiring Home Buyers Profile. Among those polled, approximately 75 percent of non-homeowners believe homeownership is part of their American dream, while nine in 10 current homeowners said the same. NAR’s Housing Opportunities and Market Experience (HOME) survey tracks topical real estate trends, including current renters’ and homeowners’ views and aspirations regarding homeownership, whether it’s a good time to buy or sell a home, and expectations and experiences in the mortgage market. HOME survey data is collected on a monthly basis and reported each quarter. New questions are added to the survey each quarter to reflect timely topics impacting real estate. To view the survey results from all four quarters of 2018, go to www.nar.realtor/homeownership-opportunities-and-marketexperience-survey.
The REALTOR® Broker Summit offers an incredible two days of learning, exclusive insights, and networking opportunities. Stay on the cutting edge by discovering new technologies and business strategies from industry leaders. Get the scoop on best practices, new innovations, and the changing shape of real estate to position your brokerage for success and stay ahead of the curve. Network and connect with an elite community of real estate leaders, tech entrepreneurs, and top brokers from across the country. Register on or before March 11, 2019 to receive the early bird rate of $249. After March 11, the 2019 registration price will increase to $299. Get the details and register at www.nar.realtor/events/realtorbroker-summit.
REALTOR® Store: Resources, Info, and More Whether you’re a new REALTOR®, a seasoned pro, or somewhere in between, the REALTOR® Store is a one-stop shop for all your real estate needs. Explore a diverse array of products and publications to help you take advantage of trends, hot topics, technology innovations, education offerings, and much more! In addition, as a REALTOR® member, you can take advantage of NAR’s Member Value Plus (MVP) program, which lets members earn rewards by taking action. Visit the REALTOR® Store at https://store.realtor.org/ Learn more about NAR’s MVP program at https://www.nar.realtor/aeshare-and-promote/member-value-plus-mvp-program
CAPITAL AREA REALTOR ® — Winter 2019 23
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By Chris Darby, Tom Muldoon, and John Nalls of Counselors Title, LLC, and Pardo & Drazin, LLC, General Counsel
QUESTION: A prospective Buyer came to my open house last weekend. They want their father, a lawyer, to write their contract. (1) Am I allowed to provide the lawyer with the GCAAR/Maryland REALTORS® forms for him to fill out, and (2) is the lawyer allowed to collect a commission for the transaction? Don’t they have to be affiliated with a brokerage firm to do this?
ANSWER: The GCAAR forms are the proprietary property of the Greater Capital Area Association of REALTORS®, Inc. (GCAAR). As a member, you are granted a revocable license to use the forms subject to specific terms and conditions. The forms therefore should not be shared with non-GCAAR members.
QUESTION: I know the Code of Ethics prohibits the
use of an offer to negotiate a commission, but I believe GCAAR used to have a form for For Sale By Owner (FSBO) transactions. Do we still have something of this nature?
ANSWER: You are correct on both counts:
• Standard of Practice 16-16 REALTORS®, acting as subagents or Buyer/tenant representatives or Brokers, shall not use the terms of an offer to purchase/lease to attempt to modify the listing Broker’s offer of compensation to subagents or Buyer/tenant representatives or Brokers, nor make the submission of an executed offer to purchase/lease contingent on the listing Broker’s agreement to modify the offer of compensation. (Amended 1/04)
26 CAPITAL AREA REALTOR ® — Winter 2019
The form to which you are referring that memorializes a Seller agreement to pay a Buyer’s agent a commission (amongst other things) is the For Sale by Owner (FSBO) Authorization to Show and Agreement to Pay Buyer Broker Commission (GCAAR Form 915).
QUESTION: One of my clients is engaged in an argument
with a holdover tenant. He and the tenant executed a GCAAR residential lease for a DC property (exempt from rent control). Paragraph 25 states that if a tenant holds over, in the absence of a written agreement, they become a month-to-month tenant at the same monthly rent in effect during the last month of the expiring term, and all other terms and conditions remain the same. It has been three to four months now. The parties have not executed a new lease or addendum, and the landlord wants to increase the rent. The tenant refuses to pay the increase. The language reads, “at the same monthly rent in effect during the last month of the expiring term,” but under the law, don’t month-to-month tenancies inherently allow for rent increases? In other words, a holdover tenant can’t possibly be guaranteed an expired lease rent in perpetuity, right?
ANSWER: The rent is fixed at the last amount for the initial holdover. That does not prevent the landlord from raising the rent with 30-day notice (subject to rent control).
QUESTION: Can a Broker in DC pay a commission or
fee to another company that does not have a real estate license?
Michael J. Bramnick, Esquire Mike is an experienced litigator regularly handling real estate disputes in Maryland, Virginia, and the District of Columbia between residential buyers, sellers, real estate brokers, and agents, including matters involving:
v Real estate contract disputes and breach of contract claims v Buyer or seller refusing to close on a transaction v Disputes involving the release of an earnest money deposit v Commission and fee disputes v Homeowner/contractor disputes v Mechanic’s liens v General civil litigation
Mike has been repeatedly recognized by Super Lawyer Magazine as a “Rising Star” in the area of civil litigation.
Bramnick Law, LLC
4520 East West Hwy • Suite 700 Bethesda, MD 20814
Phone: 301.547.3647 • Fax: 301.951.8631 Email: MBramnick@BramnickLegal.com
ANSWER: No, per DC Code § 47–2853.197. Prohibited acts. In addition to those acts prohibited by other sections of this subchapter, a real estate broker, real estate salesperson, or property manager may be subject to disciplinary action, and fines not to exceed $2,500 per violation, if he or she has: (38) Knowingly paid a fee, commission, or compensation to anyone for the performance of any service or act within the District defined in this subchapter as the act of a real estate broker or real estate salesperson to any person who was not duly licensed at the time the service or act was performed. This subsection shall not apply to the payment of a referral fee by a real estate broker licensed under this subchapter to a nonresident cooperating real estate broker who is properly licensed in his or her own jurisdiction.
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Disclaimer: The answers provided here are the opinions of the authors, are for informational purposes, and are only for GCAAR members. Neither 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 this material. Readers are encouraged to retain their own counsel for their specific questions. Answers may have been edited for formatting purposes.
Bill Horan, CES® email@example.com
Certified Exchange Specialist®
7400 Heritage Village Plaza #102 Gainesville, VA 20155 800-795-0769 www.1031.us CAPITAL AREA REALTOR ® — Winter 2019 27
COACHES’ CORNER What’s the Easiest Way to Get New Clients? This is a question I get from agents constantly. The answer takes me back to when my children were in middle school. Their school required every student to select a musical instrument to play for the next three years. Without fail, a parent attending Back-to-School Night would ask the music teacher, “What’s the easiest instrument to play?” Each year he would respond, “The one you practice.” The same can be said for agents prospecting for new clients. There isn’t an “easy” way to get new clients. You have to do the work. Your prospecting activities don’t have to be complicated or expensive, but you do have to do the work and do it with consistency. Truthfully, all you have to do to get new clients is put yourself in a position to ask for the business. It’s not sexy marketing advertisements or expensive video productions. Generating new leads is basic and inexpensive. For starters, dial the number. You have a phone full of people who know, love, and trust you. Call them up and ask who they know who could use your real estate expertise. Don’t overthink it, and don’t try to guess what they are thinking about you for calling. Get out of your own head and make the call. They’ll be happy to hear from you. Next, follow up the phone call with a handwritten note. This is a powerful, often-overlooked marketing tool. I haven’t met anyone who doesn’t like to receive a handwritten note. Think about it. What do you normally receive in the mail? It’s either a bill or junk mail. It feels good to know that someone thought enough of you to write a note, buy a stamp, and mail it. Lastly, put yourself in a position to meet new people. This could take the form of holding open houses or attending events where you don’t know the majority of the 28 28
CAPITAL AREA AREAREALTOR REALTOR ®•— Sept/Oct Winter 2019 CAPITAL 2016 ®
Get out of your own head and make the call. They’ll be happy to hear from you. people. People love talking about real estate. If you don’t have any listings of your own, ask agents in your office if you can hold one of their listings open. These are just a few things you can do to increase your leads, but you have to start somewhere. You may be thinking that you’re not good at any of the things I listed, and you may be right. But you have to “practice” the activities so you become more skilled and comfortable with them. You will only see a change in your business by putting in the time, talking to people, and doing the real work on a consistent basis. CANDY MILES-CROCKER “The Real-Life
REALTOR®,“ coaches, mentors, and trains new and experienced real estate agents to transform their business by mastering her proven systems for success. She is a firm believer in managing expectations and her goal is to elevate the perception of real estate agents among the general public through education so every client has an amazing real estate experience. Candy’s unique training methods have shown agents what it takes to be successful! Inman News selected Candy as one of the Top 25 Real Estate Coaches in 2016. Learn more at www.RLRETraining.com.
from the GCAAR classroom
The (E)state of Affairs in Probate What You Need to Know to Represent a Buyer or Seller of a Decedent’s Real Property Your phone rings--a good thing--and the voice on the line asks, “Can you sell my recentlydeceased mother’s house?” While the little voice in your head that internally trumpets “WELL OF COURSE I CAN SELL IT…I CAN SELL ANYTHING!” may in fact be true in theory, but in practice, it is important that the real estate agent possess a solid understanding of the requirements and limitations of a probate sale. To represent your client proficiently and to achieve maximum benefit as expeditiously as the applicable law will allow, requires a degree of specialized knowledge concerning real property sales in probate. In the “Trusts and Wills in Real Estate Transactions” class at GCAAR, you will learn: 1) A general overview of the probate process; 2) When and where a probate proceeding is required; 3) Which property is subject to probate and which is not;
4) The implications of a person who dies (a “decedent’) with a will (“testate”) and without (“intestate”); 5) The requirements of a valid will; and 6) The role and effect of trusts in the sale of real property. What Exactly Is Probate? At its very simplest, probate is a title clearing process—it is the legal procedure by which a decedent’s just debts are paid and her/his property is properly distributed to designated beneficiaries or heirs in accordance with the terms of a last will and testament, if one exists, or in accordance with the intestacy laws of the applicable jurisdiction, if no will exists. Who Are the Parties Typically Involved in a Probate Sales Transaction? 1) The estate (the seller) which is represented by the Executor or Personal Representative; 2) A listing agent (representing
the estate through the Executor); 3) Buyer(s); 4) Buyer’s agent 5) Orphans’ Court or Circuit Court (in certain circumstances) Why Would an Estate Sell Real Property? The reasons an estate may sell real estate instead of distributing the property in kind are myriad, but may include: 1) The will directs the sale of the property; 2) Facilitating distribution of the estate assets to multiple parties; 3) To pay estate debts which would not otherwise be satisfied do to estate illiquidity; 4) To reduce estate carrying costs of mortgaged but nonincome-producing property; or 5) Because the beneficiaries of the estate are desirous of and agree to the sale.
To sign up go to https://gcaar.com/education-events/class-and-events-calendar
What Does the Probate Sale Process Look Like From an Agent’s Perspective? From an agent’s perspective, the basic components of a probate sale are not grossly different than a traditional transaction: 1) Establish who has legal authority to sell (i.e., who is the client?); 2) Listing agent secures a listing agreement from the Executor of the estate; 3) The property is prepped for sale; 4) The property is marketed (estate disclosed); 5) Offer(s) on the property are submitted; 6) The Executor, on behalf of the estate and with advice and assistance of the listing agent, negotiates and accepts the best offer; 7) Any contingencies run and resultant negotiations may ensue; and 8) The parties close or the property is remarketed. Understanding the basics of the probate proceeding and the oft-utilized vernacular of the process will help both the buyer’s and seller’s agent assist their respective clients through what can otherwise be a somewhat unfamiliar probate sales process. Agents who are well-versed in the process are more likely to see a settlement table, sooner and with more satisfied clients, that would the uniformed agent. This article was written by Timothy J. Sessing, Esq., a partner with Adams, Morris & Sessing, a law firm practicing in Maryland, the District of Columbia and Virginia. Learn more by attending his next class. The materials in this article apply to Maryland probate proceedings, are for general informational purposes only, and cannot, in any way, be relied upon as formal legal advice. You should always seek advice from an attorney, licensed to practice in the applicable jurisdiction, with respect to any particular issue you may have.
CAPITAL AREA REALTOR ® — Winter 2019 29
economic outlook & forecast By Nadia Evangelou, NAR Research
Economic Outlook for 2019 in the Washington, DC Metro Area
Mortgage rates are starting off 2019 at very good levels. In fact, mortgage rates declined in the first two weeks of January, starting the new year with the 30-year fixed rate mortgage dipping to 4.5% from 5.0% a month earlier, according to mortgage finance provider Freddie Mac. With the unemployment rate below 4.0% and inflation hovering around the Federal Reserve’s 2.0% target, the central bank seems poised to slow down on the rate hikes in 2019. Economic activity early in the year usually provides useful clues about the rest of the year. Let’s take a deeper look at some of the economic factors that are expected to affect housing markets at the national and local levels.
Below 4.0 %
30 CAPITAL AREA REALTOR ® — Winter 2019
Employment The labor market continues to be one of the economy’s strongest points. Nationwide, employment grew an average of 1.7% monthly during January–November 2018, pushing the unemployment rate below 4.0%. Compared to these national figures, in the Washington, DC metro area, employment grew 1.6% monthly during the same period while the unemployment rate was lower than nationwide at 3.4% on average in 2018.
Employment is expected to increase further in the area since Amazon announced last November that they would place one of the company’s second headquarters in Arlington, Virginia. Amazon expects to add 2,500 new jobs in the area annually during the next 10 years. However, in regional economics, whenever a new job is created, additional jobs may also be created via increased demand for local goods and services. This increase in jobs, over and above the new hires by Amazon, is referred to as the multiplier effect. While the multiplier varies by industry and area of the country, a back-of-the-envelope estimate is that the multiplier impact is somewhere between two and four. In other words, each additional hire by Amazon can be expected to add two to four additional jobs to the local economy. Applying that multiplier to the number of jobs that Amazon expects to create results in 7,500–12,500 new jobs being added to the market every year. Thus, for the next 10 years, Amazon will boost employment every year about 17–28% in the Washington, DC area. Construction Housing starts have increased for the last eight years. After advancing 8–28% each year from 2012 through 2015, total construction starts rose 6% and 3% in 2016 and 2017, respectively. National Association of REALTORS® (NAR) estimates that housing starts will increase nearly 5% in 2018, while construction will remain at the same level in 2019. In the Washington, DC metro area, permitting has also increased over the past few years, except in 2015. From 2012 to 2014, permits rose 3 to 14%, while issuance increased 12% and 6% in 2016 and 2017, respectively. However, construction is still lagging despite its upward trend. It seems that housing production cannot keep up with population and employment growth. For instance, population in the Washington, DC metro area grew about 11% between 2010 and 2017, compared to 8% on average for the 20 largest metro areas. Moreover, as a result of housing underproduction, vacancy rates are low in the Washington, DC metro area (6%) compared to the national level (13%). The 25,000 jobs added by Amazon over the next 10 years coupled with the additional 50,000–100,000 jobs (due to the multiplier impact) will add new challenges in the Washington, DC metro area. Specifically, in the last three years, an average of 55,300 jobs per year were added in the metro area. However, permits were issued for only about 25,300 total units: 13,400 single-family and 11,900 multifamily units. Due to the multiplier effect, 7,500–12,500
new jobs will actually be added each year. We estimate that permits for an additional 1,800 to 3,000 singlefamily and 1,600 to 2,700 multifamily units will be needed each year for the next 10 years in order to keep the same ratio of employment growth to housing production in the Washington, DC metro area.
Mortgage market Mortgage rates have been declining in the first two weeks of 2019. While mortgage rates were 5.0% in the last months of 2018, it seems that stock market volatility and global trade worries pushed rates down to their lowest levels since August. This means homebuyers can still benefit from lower rates. Although the average rate on the 30-year fixed rate sat just below 4% for a year in 2016, homebuyers should bear in mind that, back in 1982, the rate was over 17% for more than a year. Moreover, historically, the average mortgage rate is 8%. Therefore, rates are still historically low. Looking ahead, NAR is forecasting 30-year fixed rate mortgage averages of 4.9% for 2019 and 5.2% for 2020, respectively. How can homebuyers benefit from these lower rates in the Washington, DC metro area? Comparing the monthly payment at 4.5% and 5.0% rates, homebuyers in the area will pay $120 less every month at a 4.5% rate. All in all, the combination of strong employment growth and limited housing supply is expected to push up home prices and decrease affordability in the Washington, DC metro area. How the above factors affect the local housing market in 2019 will be worth watching in the months ahead. CAPITAL AREA REALTOR ® — Winter 2019 31
meet your GCAAR committees Committees are vital to a member-based organization such as GCAAR. From planning events to reviewing and revising forms, looking for innovative education and professional development offerings, or handling grievances, committees are the backbone of our association. We value the work of our dedicated committee members. Here’s a list of the 2019 GCAAR committees and what they do. COMMUNICATIONS The Communications Committee reviews and recommends communication methods and contributes content for print and online communications. Activities: Members must attend monthly meetings as needed. “Homework” between meetings may include brainstorming content, reviewing materials, or writing articles. Contact staff liaison Bobette Banks. Chair: Chris Kearney, Vice Chair: Christina Koch-Garcia COMMUNITY SERVICE The Community Service Committee, GCAAR Cares, gives REALTORS® the opportunity to meet, network, and work together on projects that benefit the greater community. The committee raises money for the GCAAR Cares fund, runs a charitable grant program, and recognizes members who contribute to the community. Activities: Members must attend monthly meetings, participate in at least one subcommittee, and participate in at least one volunteer activity supported by GCAAR. Contact staff liaison Felicia Nordeen. Chair: Karen Friedman, Vice Chair: Leigh Andreasen
EDUCATION The Education Committee provides members with the resources, education, and training necessary to advance the careers of REALTORS® by suggesting topics and speakers for continuing education and professional development classes. Activities: Members must attend four to six full committee meetings each and participate in one subcommittee as needed. Contact staff liaison Mark Glazer. Chair: Sandra Stewart, Vice Chair: Jessica Olevsky
EVENTS The Events Committee solicits and secures sponsors for GCAAR’s annual education summit REALTOR® Fest. It also plans and executes association events. Activities: Members must attend monthly meetings and participate in at least one subcommittee. Contact staff liaison Mark Glazer. Chair: Aylin Gokce, Vice Chair: Joe Sabelhaus
FORMS The Forms Committee—formerly the Contracts and Clauses Committee—reviews the association’s current forms, makes recommendations and revisions, and creates new forms as needed (according to market conditions and changing regulations). Activities: REALTOR® members must have been in the business since at least January 1, 2016 in order to qualify for the 2019 committee. They must demonstrate extensive experience with GCAAR forms as evidenced by transaction counts over the past three years, or in the case of the broker/manager or team leader/trainer, the number of transactions processed in the office or by the team. Prior experience on another GCAAR committee is preferred, but not required. Contact staff liaison Katalin Peter. Chair: Jamie Coley, Vice Chair: Kirsten Williams
GRIEVANCE The Grievance Committee is the grand jury for ethics complaints and arbitration requests. The committee reviews documents filed in ethics complaints and arbitration requests and determines whether to forward cases to the Professional Standards Committee for hearings. Activities: Members must attend monthly meetings for a three-year term. “Homework” between meetings includes reading and analyzing cases filed and attending the professional standards training seminar in January. 32 CAPITAL AREA REALTOR ® — Winter 2019
Contact staff liaison Yvette Robinson. Chair: Richard Saunders, Vice Chair: Jonathan Rundlett
POLITICAL AND CAMPAIGN AFFAIRS The Political and Campaign Affairs Committee raises funds for candidates and campaigns that support the industry. Contact staff liaisons KT Maclure, Katalin Peter, or Zac Trupp. PROFESSIONAL STANDARDS Professional Standards Committee members sit on hearing panels for cases involving Code of Ethics violations, as well as contractual and specific non-contractual disputes. To serve on the Professional Standards Committee, a member must have served on the Grievance Committee for three years.
YOUNG PROFESSIONAL’S NETWORK (YPN) The Young Professional’s Network (YPN) Committee selects topics, speakers, and locations for quarterly events and solicits and secures sponsors. Activities: Members must attend quarterly meetings, call in for monthly meetings, solicit speakers and sponsors between meetings, and attend quarterly YPN events. Contact staff liaison Kayla Yingling. For more information, visit them at gcaarypn.com. Chair: Daniel Schuler, Vice Chair: Kevin Wheeler
GCAAR is grateful to all who serve.
Activities Members must attend quarterly training meetings and serve on hearing panels as necessary. Contact staff liaison Yvette Robinson. Chair: Jacqueline Grenning, Vice Chair: Jeffrey Ganz
PROPERTY MANAGEMENT The Property Management Committee is composed of industry specialists who review the association’s current recommended property management forms and make recommendations on revisions. The committee creates new forms as needed, according to market conditions and changing regulations and standards. The committee also encourages new standards and protocols for the betterment of the members’ property management businesses based on best practices of experts in the field of property management. Activities Members must attend monthly meetings. “Homework” between meetings may include reading, proofing, and/or editing forms. Contact staff liaison Yvette Robinson. Chair: Harold Huggins, Vice Chair: Conrad Bennett
PUBLIC POLICY (MONTGOMERY COUNTY) The Public Policy committee discusses the impact of proposed legislative and regulatory changes on real estate business and the housing market. It also recommends supporting or opposing proposed legislative and regulatory changes. Activities Members must attend monthly meetings, participate in county or state task forces, and attend hearings. Contact staff liaison Zac Trupp. Chair: Philip Raskin, Vice Chair: Barbara Nalls
CAPITAL AREA REALTOR ® — Winter 2019 33
2019 EDUCATION SCHEDULE
march March 1, 2019
Maryland Legislative Update CEU: 3 hours MD (required) and DC (elective) Instructor: Greg Flynn & Mike Hollman Time: 10:00 a.m. – 1:00 p.m. March 1, 2019
* DC Location (1615 New Hampshire Avenue, NW 3rd Floor) March 6, 2019
DC Ethics CEU: 3 hours DC (required) Instructor: Dana Hollish Hill Time: 2:00 – 5:00 p.m. * DC Location (1615 New Hampshire Avenue, NW 3rd Floor)
Dealing with Death: Who’s the Client? CEU: 1.5 hours MD and DC (elective) AND 1 hour VA (elective) Instructor: Andrew DiPaola Time: 2:00 – 3:30 p.m.
March 6, 2019
March 2, 2019
March 8, 2019
Maryland Fair Housing CEU: 1.5 hours MD (required) and DC (elective) Instructor: Mary Chieppa Time: 8:30 – 10:00 a.m. March 2, 2019
MREC Agency – Residential CEU: 3 hours MD (required) and DC (elective) Instructor: Mary Chieppa Time: 10:30 a.m. – 1:30 p.m. March 2, 2019
MREC Required Supervision CEU: 3 hours MD (required for brokers/elective for salespeople) and DC (elective) Instructor: Mary Chieppa Time: 2:15 – 5:15 p.m. March 4, 2019
Introduction to Wells CEU: 3 hours MD and DC (elective) Instructor: Eric Garrett Time: 2:00 – 5:00 p.m.
DC Legislative Update CEU: 3 hours DC (required) Instructor: Kevin Bayly Time: 10:00 a.m. – 1:00 p.m. March 8, 2019
GCAAR @ NVAR: MREC Agency – Residential CEU: 3 hours MD (required) and DC (elective) Instructor: Thom Brockett Time: 10:00 a.m. – 1:00 p.m. * NVAR – Fairfax Location (8407 Pennell Street) March 9, 2019
Maryland Legislative Update CEU: 3 hours MD (required) and DC (elective) Instructor: Thom Brockett Time: 8:30 – 11:30 a.m.
New Member Orientation CEU: No CE Instructor: Tara Furges Houston Time: 10:30 a.m. – 4:00 p.m. * DC Location (1615 New Hampshire Avenue, NW 3rd Floor)
March 9, 2019
March 4, 2019
March 9, 2019
Maryland Code of Ethics and Predatory Lending CEU: 3 hours MD (required) and DC (elective) Instructor: Tara Furges Houston Time: 1:00 – 4:00 p.m. * DC Location (1615 New Hampshire Avenue, NW 3rd Floor) March 6, 2019
Short Sales CEU: 3 hours MD, DC and VA (elective) Instructor: Michelle Adams Time: 10:00 a.m. – 1:00 p.m. March 6, 2019
Mortgage Basics CEU: 3 hours MD and DC (elective) Instructor: Jamica Browne Time: 10:00 a.m. – 1:00 p.m.
34 CAPITAL AREA REALTOR ® — Winter 2019
Comparison of Agency Laws CEU: 1.5 hours MD and DC (elective) AND 1.0 hour VA (elective) Instructor: Thom Brockett Time: 12:15 – 1:45 p.m.
Maryland Code of Ethics and Predatory Lending CEU: 3 hours MD (required) and DC (elective) Instructor: Thom Brockett Time: 2:15 – 5:15 p.m. March 11, 2019
Financing Issues/Update CEU: 3 hours MD, DC and VA (elective) Instructor: Michael Joseph Time: 10:00 a.m. – 1:00 p.m. March 11, 2019
DC Legislative Update CEU: 3 hours DC (required) Instructor: Deirdre Brown Time: 10:00 a.m. – 1:00 p.m. * DC Location (1615 New Hampshire Avenue, NW 3rd Floor)
March 11, 2019
DC Fair Housing CEU: 3 hours DC (required) Instructor: Nathan Carnes Time: 2:00 – 5:00 p.m. * DC Location (1615 New Hampshire Avenue, NW 3rd Floor) March 11, 2019
Risk Management CEU; 3 hours MD and DC (elective) and 3 hours VA (elective CE and PLE) Instructor: Robert Moses Time: 2:00 – 5:00 p.m. March 13, 2019
GCAAR @ NVAR: Maryland Code of Ethics and Predatory Lending CEU: 3 hours MD (required) and DC (elective) Instructor: Sandra Stewart Time: 10:00 a.m. – 1:00 p.m. * NVAR – Fairfax Location (8407 Pennell Street) March 13, 2019
GCAAR @ NVAR: Maryland Fair Housing CEU: 1.5 hours MD (required) and DC (elective) Instructor: Jessica Chipoco Time: 2:00 – 3:30 p.m. * NVAR – Fairfax Location (8407 Pennell Street)
* DC Location (1615 New Hampshire Avenue, NW 3rd Floor) March 18, 2019
MREC Required Supervision CEU: 3 hours MD (required for brokers/elective for salespeople) and DC (elective) Instructor: Barbara Maloney Time: 10:00 a.m. – 1:00 p.m. March 18, 2019
Maryland Legislative Update CEU: 3 hours MD (required) and DC (elective) Instructor: Thom Brockett Time: 10:00 a.m. – 1:00 p.m. * DC Location (1615 New Hampshire Avenue, NW 3rd Floor) March 18, 2019
Maryland Fair Housing CEU: 1.5 hours MD (required) and DC (elective) Instructor: Jessica Chipoco Time: 2:00 – 3:30 p.m. * DC Location (1615 New Hampshire Avenue, NW 3rd Floor) March 18, 2019
Non-Conforming Financing CEU: 3 hours MD, DC and VA (elective) Instructor: Alex Peters Time: 2:00 – 5:00 p.m.
March 14, 2019
March 20, 2019
New Member Orientation CEU: No CE Instructor: Ned Rich Time: 10:30 a.m. – 4:00 p.m.
Evolution of Reverse Mortgage for Purchase CEU: 3 hours MD, DC and VA (elective) Instructor: Tony Miller Time: 10:00 a.m. – 1:00 p.m.
March 14, 2019
Maryland Code of Ethics and Predatory Lending CEU: 3 hours MD (required) and DC (elective) Instructor: Ned Rich Time: 1:00 – 4:00 p.m.
March 20, 2019
March 15, 2019
DC Fair Housing CEU: 3 hours DC (required) Instructor: Tom Biegler Time: 10:00 a.m. – 1:00 p.m.
MREC Agency – Residential CEU: 3 hours MD (required) and DC (elective) Instructor: Valerie Huffman Time: 10:00 a.m. – 1:00 p.m.
March 15, 2019
March 21, 2019
MREC Agency – Residential CEU: 3 hours MD (required) and DC (elective) Instructor: Marj Rosner Time: 10:00 a.m. – 1:00 p.m. * DC Location (1615 New Hampshire Avenue, NW 3rd Floor)
Maryland Fair Housing CEU: 1.5 hours MD (required) and DC (elective) Instructor: Lisa Bosse Time: 2:00 – 3:30 p.m.
March 15, 2019
Homebuyer Financing CEU: 1.5 hours MD and DC (elective) and 1 hour VA (elective) Instructor: Alex Jaffe Time: 2:00 – 3:30 p.m.
Title Insurance CEU: 3 hours MD, DC and VA (elective) Instructor: Lee-Anne Rodriguez Time: 2:00 – 5:00 p.m. March 21, 2019
March 22, 2019
GCAAR @ NVAR: Contract Basics CEU: 3 hours MD and DC (elective) Instructor: Carin Brewster Time: 10:00 a.m. – 1:00 p.m.* NVAR Fairfax Location (8407 Pennell Street)
NOTE: All classes are held at GCAAR’s
2019 EDUCATION SCHEDULE March 22, 2019
Maryland Legislative Update CEU: 3 hours MD (required) and DC (elective) Instructor: Al Monshower Time: 10:00 a.m. – 1:00 p.m. March 22, 2019
Procuring Cause CEU: 1.5 hours MD and DC (elective) AND 1 hour VA (elective) Instructor: Al Monshower Time: 2:00 – 3:30 p.m. March 28, 2019
Presenting Multiple Offers CEU: 3 hours MD, DC and VA (elective) Instructor: Lee Goldstein Time: 10:00 a.m. – 1:00 p.m.
Instructor: Amy Goldstein Time: 1:30 - 4:30 p.m. April 3, 2019
MREC Agency - Residential CEU: 3 hours MD (required) and DC (elective) Instructor: Al Monshower Time: 9:30 a.m. – 12:30 p.m. April 3, 2019
GCAAR @ NVAR: Maryland Code of Ethics and Predatory Lending CEU: 3 hours MD (required) and DC (elective) Instructor: Sandra Stewart Time: 9:30 a.m. – 12:30 p.m. * NVAR – Fairfax Location (8407 Pennell Street) April 3, 2019
Credit Reporting and Scoring CEU: 2 hours MD, DC and VA (elective) Instructor: Michael McNamara Time: 2:00 – 4:00 p.m.
DC Ethics CEU: 3 hours DC (required) Instructor: Mary Chieppa Time: 10:00 a.m. – 1:00 p.m. * DC Location (1615 New Hampshire Avenue, NW 3rd Floor)
March 29, 2019
April 3, 2019
DC Ethics CEU: 3 hours DC (required) Instructor: James Semeyn Time: 10:00 a.m. – 1:00 p.m.
MREC Required Supervision CEU: 3 hours MD (required for brokers/elective for salespeople) and DC (elective) Instructor: Al Monshower Time: 1:30 – 4:30 p.m.
March 28, 2019
March 29, 2019
Maryland Code of Ethics and Predatory Lending CEU: 3 hours MD (required) and DC (elective) Instructor: Ned Rich Time: 10:00 a.m. – 1:00 p.m. * DC Location (1615 New Hampshire Avenue, NW, 3rd Floor)
April 3, 2019
DC Fair Housing CEU: 3 hours DC (required) Instructor: Mary Chieppa Time: 2:00 – 5:00 p.m. * DC Location (1615 New Hampshire Avenue, NW 3rd Floor)
March 30, 2019
April 4, 2019
New Member Orientation CEU: No CE Instructor: Sandra Stewart Time: 8:30 a.m. – 1:15 p.m.
Virginia Fair Housing CEU: 2 hours VA (required CE and PLE) and DC (elective) Instructor: Mary Chieppa Time: 8:30 – 10:30 a.m.
March 30, 2019
Maryland Code of Ethics and Predatory Lending CEU: 3 hours MD (required) and DC (elective) Instructor: Sandra Stewart Time: 10:15 a.m. – 1:15 p.m.
April 1, 2019
DC Ethics CEU: 3 hours DC (required) Instructor: Thom Brockett Time: 9:30 a.m. – 12:30 p.m. April 1, 2019
Mortgage Basics CEU: 3 hours MD and DC (elective)
April 4, 2019
Virginia Contract Review CEU: 1 hour VA (required) and DC (elective) Instructor: Mary Chieppa Time: 10:45 – 11:45 a.m. April 4, 2019
Virginia Legal Update CEU: 1 hour VA (required) and 1 hour DC (elective) Instructor: Mary Chieppa Time: 12:00 – 1:00 p.m. April 4, 2019
Virginia Mandatory Agency CEU: 1 hour VA (required) and DC (elective) Instructor: Mary Chieppa Time: 2:00 – 3:00 p.m.
Rockville office unless otherwise noted.
April 4, 2019
Virginia Ethics CEU: 3 hours VA (required CE and PLE) and DC (elective) Instructor: Mary Chieppa Time: 3:30 – 6:30 p.m. April 5, 2019
Maryland Legislative Update CEU: 3 hours MD (required) and DC (elective) Instructor: Beau Pichon Time: 10:00 a.m. – 1:00 p.m. April 5, 2019
New Member Orientation CEU: No CE Instructor: Dana Hollish Hill Time: 10:30 a.m. – 4:00 p.m. * DC Location (1615 New Hampshire Avenue, NW 3rd Floor)
and DC (elective) Instructor: Bob Pettis Time: 5:45 – 8:45 p.m. April 11, 2019
Social Media Training CEU: No CE Instructor: Carin Brewster Time: 10:00 a.m. – 12:00 p.m. April 11, 2019
Why They Buy CEU: No CE Instructor: Chanin Wisler Time: 1:00 – 2:30 p.m. April 11, 2019
Staging to Sell CEU: No CE Instructor: Patricia Ebrahimi Time: 3:00 – 4:30 p.m.
April 5, 2019
April 12, 2019
Maryland Code of Ethics and Predatory Lending CEU: 3 hours MD (required) and DC (elective) Instructor: Dana Hollish Hill Time: 1:00 – 4:00 p.m. * DC Location (1615 New Hampshire Avenue, NW 3rd Floor)
GCAAR @ NVAR: Maryland Legislative Update CEU: 3 hours MD (required) and DC (elective) Instructor: Thom Brockett Time: 9:30 a.m. – 12:30 p.m. * NVAR – Fairfax location (8407 Pennell Street)
April 8, 2019
April 12, 2019
DC Legislative Update CEU: 3 hours DC (required) Instructor: Joy Siegel Time: 9:30 a.m. – 12:30 p.m.
Maryland Code of Ethics and Predatory Lending CEU: 3 hours MD (required) and DC (elective) Instructor: Kevin Bayly Time: 10:00 a.m. – 1:00 p.m.
April 8, 2019
TOPA CEU: 3 hours DC (elective) Instructor: Carol Calomiris Time: 10:00 a.m. – 1:00 p.m. * DC Location (1615 New Hampshire Avenue, NW 3rd Floor) April 8, 2019
DC Fair Housing CEU: 3 hours DC (required) Instructor: Tom Biegler Time: 1:30 – 4:30 p.m. April 8, 2019
Condo Conversions CEU: 2 hours MD and DC (elective) Instructor: Steven Buckman Time: 2:00 – 4;00 p.m. * DC Location (1615 New Hampshire Avenue, NW 3rd Floor) April 9, 2019
New Member Orientation CEU: No CE Instructor: Bob Pettis Time: 4:00 – 8:45 p.m.
April 12, 2019
Maryland Legislative Update CEU: 3 hours MD (required) and DC (elective) Instructor: Tara Furges Houston Time: 10:00 a.m. – 1:00 p.m. * DC Location (1615 New Hampshire Avenue, NW 3rd Floor) April 12, 2019
Maryland Fair Housing CEU: 1.5 hours MD (required) and DC (elective) Instructor: Tara Furges Houston Time: 2:00 – 3:30 p.m. * DC Location (1615 New Hampshire Avenue, NW 3rd Floor) April 15, 2019
GCAAR Sales Contract Review CEU: 3 hours MD and DC (elective) Instructor: Todd Greenbaum Time: 9:30 a.m. – 12:30 p.m.
continued on page 44
April 9, 2019
Maryland Code of Ethics and Predatory Lending CEU: 3 hours MD (required)
CAPITAL AREA REALTOR ® — Winter 2019 35
Stay connected at www.gcaar.com
WELCOME to the Greater Capital Area Association of REALTORS®
We are pleased that you have chosen to join our organization. GCAAR is your voice for real estate issues in DC and Montgomery County, MD. It offers venues for networking and allows you to connect with your peers and exchange best practices. We invite you to take full advantage of your benefits as a member.
NEW MEMBERS November Tiffanie Allen Weichert REALTORS® Vanessa Fleming Keller Williams Capital Properties
Rima Abuobaid Long & Foster Real Estate Douglas Ader Long & Foster Real Estate Anna Albert Century 21 Redwood Realty Eric Aldrette Weichert REALTORS® Glenda Avila Exit Flagship Realty Matthew Beers Long & Foster Real Estate Lisa Bosse Paragon Title & Escrow Peter Brock Embrace Home Loans Kathryn Burson Long & Foster Real Estate Marvin Calder Embrace Home Loans Brittney Calloway Exit Deluxe Realty Libet Caraballoso Smith & Schnider Bryan Catalano Paragon Title & Escrow Brittney Childress Keller Williams Capital Properties Nia Condrey Coldwell Banker Residential Ryan Davila Compass 36 CAPITAL AREA REALTOR ® — Winter 2019
Ray Dayhoff Prime Property Inspectors Mellissa Fernandez Monarch Title Ronnie Gilmer Exit Deluxe Realty Jose Gonzalez Solutions Realty Group Andrew Grams Coldwell Banker Residential Kyrsten Green Compass Julie Hall TriStar Realty Edward Heid Long & Foster Real Estate Travis Hudnall Move4Free Realty Tarek Kabbani Long & Foster Real Estate Devin Keenan Monument Realty Robert Kirkland Chase Jared Lauer Compass Isabelle Leon Coldwell Banker Residential Deborah Levy EJF Real Estate Services Janell Mathieson Smart Realty Beza Mersha Neighborhood Assistance Corporation of America Patricia Mitchell Redfin Corporation Bruno Muscolino Spring Hill Real Estate
Oscar Nunez Sandoval Long & Foster Real Estate Marggie Ortiz Tower Hill Realty Bukola Oyekan New Concept Realty George Parr Compass Tiffany Perry Pride Settlement & Escrow Andreaa Phillips Long & Foster Real Estate Hugo Quintanilla Long & Foster Real Estate Bradley Rothstein Paragon Title & Escrow Marcos Sanchez Embrace Home Loans Erika Schiller Monarch Title Fadia Shadid Keller Williams Capital Properties Iris Strickland United Real Estate Shila Talattof Weichert REALTORS® Elijah Taylor Nomadic Real Estate Bereket Tesfay The Real Estate Experts Katherine Theodore Fairfax Realty Premier Eboneese Thompson RE/MAX Fine Living Carol Toeller Prime Property Inspectors Rebecca Walker Douglas Realty
Monique Wise Long & Foster Real Estate Liana Yeganova Samson Properties Susan Young Long & Foster Real Estate Shaye Zakotnik Washington Fine Properties
Christopher Adams City Properties 5 Abiodun Adejumo Realty Executives Premier Rumtin Afsharjavan Federated Realty Jawad Afzal Smart Realty Antoinette Allen Express Broker Realty William Amaya Global Alliance Realty & Management Ryan Attaway Keller Williams Capital Properties Wendie Barbee Long & Foster Real Estate Stephanie Begin Keller Williams Capital Properties Claudette Berry Delta Exclusive Realty Pepper Bethel TPI Group Jennifer Brown Weichert REALTORS® Dorene Browne-Louis Long & Foster Real Estate Gregg Busch First Savings Mortgage Audrey Calloway Keller Williams Capital Properties
NEW MEMBERS January Naren Chhay Excel Realty Corporation Randolph Churchill Keller Williams Integrity Paulette Clark RE/MAX Specialists Leif Colon Smart Realty Craig Cooper Long & Foster Real Estate Brock Crowe Keller Williams Capital Properties Wendy Dean Keller Williams City Wide Realty Sibel Demir Century 21 Trademark Realty Edward Dixon Smart Realty Sarit Driscoll Long & Foster Real Estate Isaiah Floyd Pearson Smith Realty Jeremy Flynn Washington Management Services Justin Ford Keller Williams Capital Property Anthony Fornito RE/MAX Fine Living Shauna Fuhs Weichert REALTORS® Shari Gant Samson Properties Emmanuel Garba Taylor Properties L Noriko Gates TriStar Realty Jonathan Gentry Exit Flagship Realty Rebecca Getachew Keller Williams Capital Property Morteza Ghalambor TPI Group David Hahn EJF Real Estate Services
Fikerte Hailemariam Long & Foster Real Estate Karey Hall Exit Landmark Realty Shakera Harrell TriStar Realty Aylan Hisirci Weichert REALTORS® Pamela Horne Weichert REALTORS® Lamar Hough SourceOne Realty Group Brigitta Hovor Weichert REALTORS® Kenneth Isaacman Keller Williams Realty Chantilly Ventures LLC Grace Isang Century 21 Trademark Realty Kasheem James Redfin Corporation Sahar Javanmard Long & Foster Real Estate Hong Jen Union Plus Realty Austin Jenkins TTR Sothebys International Realty Georgette Johnson NextHome Capital City Realty LaShaun Johnson The ONE Street Company Dennis King Neighborhood Uplift Hajra Kirmani Keller Williams Capital Properties Hoangphuc Le Keller Williams Capital Properties Andrea Lester Redfin Corporation Susan Levi Wright Brokerage Annie Lobel Long & Foster Real Estate Ashley Lowe Exit Deluxe Realty Michael Marks Keller Williams Capital Properties
Nicole Marshall Bennett Realty Solutions John Daniel Meadors RE/MAX Gateway Victor Mejia Fairfax Realty Premier Eric Menhart Taylor Properties Geoffrey Merrill Redfin Corporation Tupelo Miller United Real Estate Great Falls William Miner Compass Seyed Mousavi Heymann Realty Beatrice Mulwanda RE/MAX PROS Kerri Murphy Real Living at Home Darren Murray Long & Foster Real Estate Kamran Nikkhah Realty ONE Group Capital Properties Anton Ogorodnikov Coldwell Banker Residential Andre Oliphant Keller Williams Capital Property Celena Pace-Lagana Weichert REALTORS® Meagan Parnell Keller Williams Realty Reston Frank Parrish Compass Faith Peng Tower Hill Realty Lisa Poist Evers & Co. Real Estate Francis Posey McWilliams/Ballard Sidikatu Raji RE/MAX PROS Mario Reynolds TPI Group Evan Schluederberg Keller Williams Realty
Brandy Segel RE/MAX Realty Services Melissa Sera Gallagher & Co Real Estate Alicia Seymour Keller Williams Capital Properties Chaz Shipley Home Tactics Inspection Services Steven Soroka Long & Foster Real Estate Sandra Spruill Weichert REALTORS® Samuel Sweet Douglas Realty Randall Sylvain Keller Williams Capital Properties Behraz Taher The Virtual Realty Group Roberto Tello Independent Realty Maria Teran Long & Foster Real Estate Marcelo Urzua eXp Realty David Van Leeuwen Keller Williams Capital Properties Rui Wang Libra Realty Michelle Washington Heymann Realty Iann Washington Weichert REALTORS® Lisa West Movement Mortgage Shamar Williams Long & Foster Real Estate Monica Woodard Long & Foster Real Estate
As of January 24, 2019
CAPITAL AREA REALTOR ® — Winter 2019 37
Chanin Wisler First Washington Mortgage
Sr. Loan Officer
How long have you been an Affiliate with GCAAR? Four years. What are some of the events you support? I am an instructor and teach CE classes at both the DC and Rockville locations; I am a Women’s Council of REALTORS® Affiliate member; I have sponsored GCAAR’s annual bowling event a few times; I attend the YPN happy hours, I have sponsored and taught at REALTOR® Fest; and participated with GCAAR Cares. Why do you continue to support GCAAR as an Affiliate? I think it is important to support the agents I work alongside of. Being an instructor also gives me the opportunity to keep them updated on lending guidelines and programs. The lending environment is constantly changing, and REALTORS® can better serve their clients when they are educated. Buyers usually talk to REALTORS® before they talk to a lender. What would you say to people who are considering becoming an Affiliate? It’s a great way to become involved, give back, learn, participate, and network. Why do you think being a member of GCAAR is important? With most of my business coming from Montgomery County and DC, GCAAR keeps me updated on the housing market and housing issues, and gives me an opportunity to educate and network with REALTOR® members who do business in my area. I also get to interact and learn from title, home inspection, home insurance, and marketing companies, as well as other Affiliates and fellow lenders. It’s a friendly environment, and we all benefit. 38 CAPITAL AREA REALTOR ® — Winter 2019
Good things start with a vibrant community.
When your buyers get the home financing options and support they need, you can focus on selling more homes. Count on us to help you put more buyers into homes. We’re proud to support the Greater Capital Area Association of REALTORS®.
Let’s connect Rockville 301-956-1562
Bethesda Private Mortgage Banking 410-332-5302
Greater DC Metro 202-414-3345
This information is for real estate and building professionals only and is not intended for consumer distribution. Information is accurate as of date of printing and is subject to change without notice. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2018 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. AS4737279 Expires 12/2019
Treasury, IRS Give Big WIN to Real Estate Professionals in Qualified Business Income Rule ON FRIDAY, JANUARY 18, 2019, THE TREASURY DEPARTMENT AND THE INTERNAL REVENUE SERVICE (IRS) ISSUED FINAL REGULATIONS REGARDING THE NEW 20 PERCENT DEDUCTION ON QUALIFIED BUSINESS INCOME.
40 CAPITAL AREA REALTOR ® — Winter 2019
As Americans begin preparations for the 2018 tax filing season, real estate professionals have been uncertain about the true impact of the 2017 Tax Cuts and Jobs Act on their respective businesses. Friday’s ruling from Treasury and the IRS, however, signaled a significant victory for the real estate industry and for many of the National Association of REALTORS®’ (NAR) 1.3 million members. A summary of the changes follows.
K E Y C H ANGES Reduction of the Corporate Tax Rate A central component of the new tax law is a reduction of the corporate tax rate from 35 percent to 21 percent. However, since nine out of 10 American businesses are structured as pass-through entities rather than corporations, the Section 199A provision provides critical tax deductions for small businesses and self-employed independent contractors, which is how many real estate professionals are classified.
Three Critical Victories for Real Estate Professionals Within the 247-page rule issued on January 18, three major provisions for real estate professionals stood out as critical victories for NAR members.
1. Business Structure. The regulation clarifies that all real estate agents and brokers who are not employees but operate as sole proprietors or owners of partnerships, S corporations, or limited liability companies are eligible for the new deduction, which can be as high as 20 percent. This includes those whose income exceeds the threshold of $157,500 for single filers and $315,000 for those filing a joint return.
2. Property Categorization. The rule simplifies the process that owners of rental real estate must follow to claim the new deduction. As written in the Tax Cuts and Jobs Act, only income that is from a “trade or business” qualifies for the 20 percent write-off. However, because this distinction was not clearly defined by Congress when crafting the law, various court rulings and prior IRS guidance have caused confusion among tax professionals in determining which rental properties were merely investments and which could accurately be considered a business enterprise. NAR strongly urged Treasury and the IRS to simplify the rules to give millions of rental real estate owners certainty surrounding their ability to qualify for this new deduction. Friday’s final regulations included a bright-line safe harbor test requiring at least 250 hours per year spent on maintaining and repairing property, collecting rent, paying expenses, and conducting other typical landlord activities.
LEARN MORE VISIT: www.nar.realtor.
3. Like-Kind Exchanges. The IRS and Treasury reversed a policy that previously denied deduction eligibility to those who exchanged one real estate parcel for another under Section 1031. Within the proposed regulation released last August, those who had exchanged one parcel of real estate for another under Section 1031 were unfairly denied deduction eligibility. However, NAR and multiple additional trade groups concerned with commercial real estate were vocal in highlighting this shortcoming. In a positive resolution to the situation, Treasury and the IRS recognized the initial ruling was misguided and corrected the policy. CAPITAL AREA REALTOR ® — Winter 2019 41
design trends KITCHENS ON A BUDGET Clever Changes Here, a couple inexpensively transformed their countrystyle eat-in kitchen to a contemporary gathering spot with just a few smart, style-savvy changes. The stock, wood-stained cabinets were in good shape so a few coats of white paint freshened them up while a new light fixture and sleek dining set finished the look.
Pull Out the Paint
Photos by HGTV fan Layla Palmer
You don’t have to live with builder-grade cabinets. HGTV fan Layla Palmer gave her stock oak kitchen cabinets an upscale custom look by adding molding to the top and painting them a chic black. She lightly sanded the edges to give them cozy cottage appeal.
Know When to Call In the Pros You can definitely stick to your budget if you act as your own contractor and designer, but the key is to know when to hire an expert. This HGTV family completed an entire kitchen remodel for less than $20,000 by doing most of the renovations themselves. They let the pros handle the floors and granite countertops. 42 CAPITAL AREA REALTOR ® — Winter 2019
RE A DY FO R A N UPDAT E — BE INSPIRED BY THESE STYLISH YET BUDGET-FRIENDLY IDEAS Source: www.hgtv.com Kitchens on a Budget: Our 14 Favorites From HGTV Fans Article by: Chelsey Bowen and H. Camille Smith
Work with a REALTOR® to help you find more HOME DÉCOR TRE NDS.
A Little Help From Your Friends
Luxe for Less
This first-time homeowner and HGTV fan put talented family members to work to turn their builder-basic kitchen into a space that better suited their style. From replacing the tile floor with antiqued maple boards, to adding under-cabinet lighting and molding, to beefing up the cabinet doors, they were able to stick to their tight budget by doing it themselves.
Get a designer look without the high price. To save money, this HGTV fan built a custom range hood out of plywood and matched the paint to her existing cabinets. To give the cabinets the look of furniture, she purchased unfinished table legs online and simply added them to the base of the cabinets.
Find the Right Piece This HGTV fan turned an old hardware store counter into a massive storage-filled kitchen island. The vintage piece was a perfect fit for her cottage kitchen, and for just $150, the custom-fabricated galvanized steel top completed the look.
CAPITAL AREA REALTOR ® — Winter 2019 43
2019 EDUCATION SCHEDULE continued from page 35 April 15, 2019
DC Legislative Update CEU: 3 hours DC (required) Instructor: Kevin Kistler Time: 10:00 a.m. – 1:00 p.m. * DC Location (1615 New Hampshire Avenue, NW 3rd Floor) April 15, 2019
203K CEU: 3 hours MD, DC and VA (elective) Instructor: Shawn Barsness Time: 2:00 – 5:00 p.m. * DC Location (1615 New Hampshire Avenue, NW 3rd Floor) April 18, 2019
Maryland Fair Housing CEU: 1.5 hours MD (required) and DC (elective) Instructor: Joyce Gardner Time: 1:30 – 3:00 p.m. April 22, 2019
GCAAR @ NVAR: Negotiating in Today’s Market CEU: 3 hours MD and DC (elective) Instructor: Tara Furges Houston Time: 9:30 a.m. – 12:30 p.m. * NVAR – Fairfax Location (8407 Pennell Street) April 22, 2019
GCAAR @ NVAR: First Time Homebuyer Financing CEU: 1.5 hours MD and DC (elective) Instructor: JD Teitelman Time: 1:30 – 3:00 p.m. * NVAR – Fairfax Location (8407 Pennell Street) April 24, 2019
New Member Orientation CEU: No CE Instructor: Ned Rich Time: 10:30 a.m. – 4:00 p.m. April 24, 2019
Maryland Code of Ethics and Predatory Lending CEU: 3 hours MD (required) and DC (elective) Instructor: Ned Rich Time: 1:00 – 4:00 p.m. April 25, 2019
Preparation of Agency Disclosure Forms CEU: 3 hours MD and DC (elective) Instructor: Bob Pettis Time: 9:30 a.m. – 12:30 p.m.
44 CAPITAL AREA REALTOR ® — Winter 2019
April 25, 2019
Recordation and Transfer Taxes CEU: 1.5 hours MD and DC (elective) Instructor: Bob Pettis Time: 1:30 – 3:00 p.m.
GCAAR in the news In Latest Assessments, Property Values Increased 7% in Parts of Montgomery County Bethesda Beat December 28, 2018 November housing stats referenced
April 26, 2019
MREC Agency - Residential CEU: 3 hours MD (required) and DC (elective) Instructor: Carole Maclure Time: 10:00 a.m. – 1:00 p.m.
Report Shows Mixed Results in Sales in Montgomery County Bethesda Beat December 19, 2018 GCAAR President Tom Daley quoted; November housing stats referenced
April 26, 2019
How to Do a 1031 Like-Kind Exchange CEU: 3 hours MD, DC and VA (elective) Instructor: Bill Horan Time: 10:00 a.m. – 1:00 p.m. * DC Location (1615 New Hampshire Avenue, NW 3rd Floor) April 29, 2019
When Price Meets Preparation CEU: 2 hours MD, DC and VA (elective) Instructor: Mary Chieppa Time: 9:30 – 11:30 a.m. April 29, 2019
MREC Agency – Residential CEU: 3 hours MD (required) and DC (elective) Instructor: Dana Hollish Hill Time: 10:00 a.m. – 1:00 p.m. * DC Location (1615 New Hampshire Avenue, NW 3rd Floor) April 29, 2019
Negotiating Multiple Offers CEU: 2 hours MD, DC and VA (elective) Instructor: Mary Chieppa Time: 12:30 – 2:30 p.m. April 29, 2019
Getting from the Sale to the Settlement Table CEU: 2 hours MD, DC and VA (elective) Instructor: Mary Chieppa Time: 3:00 – 5:00 p.m.
May 1, 2019
Financing Issues/Update CEU: 3 hours MD, DC and VA (elective) Instructor: Bill Rozek & Thom Brockett Time: 9:30 a.m. – 12:30 p.m.
May 1, 2019
May 2, 2019
Comparative Differences Between the GCAAR and Maryland REALTOR® Contract CEU: 1.5 hours MD and DC (elective) Instructor: James Savitz Time: 1:30 – 3:00 p.m.
Maryland Legislative Update CEU: 3 hours MD (required) and DC (elective) Instructor: Joy Siegel Time: 10:00 a.m. – 1:00 p.m.
May 1, 2019
DC Legislative Update CEU: 3 hours DC (required) Instructor: Marty Stanton & Bonnie Roberts-Burke Time: 1:30 – 4:30 p.m. * DC Location (1615 New Hampshire Avenue, NW 3rd Floor) May 2, 2019
Maryland Fair Housing CEU: 1.5 hours MD (required) and DC (elective) Instructor: Jessica Chipoco Time: 8:00 – 9:30 a.m.
May 2, 2019
Maryland Code of Ethics and Predatory Lending CEU: 3 hours MD (required) and DC (elective) Instructor: Thom Brockett Time: 2:00 – 5:00 p.m. May 2, 2019
MREC Agency – Residential CEU: 3 hours MD (required) and DC (elective) Instructor: Roger Carp Time: 5:30 – 8:30 p.m.
BACKPorch TRIVIA FINDS FACTS
Source: Wikipedia, Image: Flickr
It’s all in the wording
How much the average person eats of food a year. Source: statisticbrain.com
We all know that “cozy” really means “small” and “charming” means old. But there are some words that actually attract buyers. Try using “beautiful” or “gorgeous” when describing your house. Research shows that listings with those words sell 15 percent faster than other houses—and for 5 percent more! Source: https://www.cbsuccess.com/2016/02/04/15-wildwacky-odd-interesting-real-estate-facts/
Away from the hustle and bustle
DID YOU KNOW? Jumbo jets use 4,000 gallons of fuel to take off. Source: statisticbrain.com
If you’re the type that enjoys your privacy and wide-open spaces, you can buy yourself some land on the moon. Headed by Dennis Hope, the company sells pieces of the moon for around $20 per acre, and to this point, over 2.5 million have already been sold. By this method, the moon’s 9.3 billion acres are worth approximately $180 billion. But good luck hiring a builder. Source: https://www.fool.com/investing/general/ 2014/03/10/whats-the-moon-worth.aspx
48 CAPITAL AREA REALTOR ® — Nov/Dec 2018
CAPITAL AREA REALTOR ® — Winter 2019 45
CAPITAL AREA REALTOR ® — Sept/Oct 2018 23