Illinois REALTOR® April 2020 by Illinois REALTORS®

APRIL 2020

THE VOICE FOR REAL ESTATE IN ILLINOIS

BALANCING ACT:

Answering tough client questions and complying with Fair Housing

Appraisals: What's new Build your brand with podcasts and videos

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THE OFFICIAL PUBLICATION OF ILLINOIS REALTORS® ILLINOIS REALTOR® April 2020

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TABLE OF CONTENTS APRIL 2020

04 Inside Track

Best negotiating tactics

05 President's Message More voices = more opportunities to shape industry and association’s future

06 Quick Takes

BALANCING ACT: Answering tough client questions while complying with Fair Housing rules

Meet the 2020 REALTOR® of the Year Doug Carpenter

• Higher loan limits in 2020

• Morris earns top NAHREP Chicago honor • Two win national commercial awards

22 At the Capitol Sullivan earns top lobbying honor

24 RVOICE

Advocacy hot topics: Criminal background screening, inspections and vacant properties

25 Ethics

Professional Standards resources at the ready

26 Community

What’s new and what you need to know about appraisals

Dustin Brohm: Build your brand with podcasts and video ILLINOIS REALTOR® April 2020

INSIDE TRACK What is your best negotiating tactic? Always combat logic with emotion and emotion with logic. If someone comes at you from a place of emotion, acknowledge it and then counter with logic (data, market stats, etc). If someone comes at you logically, acknowledge it and present an emotional side (“I want your clients to make this their home” or “I want you to be the one to sell this property.”) If you remember this, you’ll always come to a win-win! Tommy Choi

Co-founder Weinberg Choi Residential Keller Williams Chicago-Lincoln Park, Chicago

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THE VOICE FOR REAL ESTATE IN ILLINOIS 2020 OFFICERS President Ed Neaves eneaves@thesnydercompanies.com President-elect Sue Miller, ABR, BPOR, C2EX, CRB, CRS, GRI, ePro, LTG, PMN, SFR, SRS smiller001@aol.com Treasurer Ezekiel "Zeke" Morris zekemorris@zekemorris.com Chief Executive Officer Gary Clayton, CAE, RCE Deputy Chief Executive Officer Jeffrey T. Baker Executive Vice President Kristen Butcher, CMP Senior Editor Stephanie Sievers Content Marketing Specialist Bill Kozar

“I have two words that create negotiation dynamite: TIP and Tactic. Use Time to your advantage while asking lots of questions to get Information and then have the Patience because collaborative negotiators know that patience without persistence leads to paralysis. And as for Tactic – always know your client’s BATNA (Best Alternative To Negotiated Agreements) and learn how to calculate the ZOPA (Zone Of Possible Agreement) for the buyer and seller.” Wayne Paprocki

Compass, Northbrook

“I believe my best negotiating tactic is twofold: building a friendly/respectful rapport with cooperating agents and building a relationship of trust with the buyer or seller I represent. This allows for everyone to succeed in the ultimate goal of buying and/or selling a home, fellow agents wanting to work with me in the future and clients that return to me and send their friends and family my way.” Donna Baker

The DREAM TEAM of RE/MAX Preferred, O’Fallon

Graphic Designer David Hine For advertising information contact: Advertising & Sponsorship, 217-529-2600, info@IllinoisRealtors.org ILLINOIS REALTOR® (ISSN 0744-221) is published four times a year during the months of January, April, July, and October by Illinois REALTORS®, Post Office Box 19451, Springfield, Illinois 62794-9451. Periodical postage paid at Springfield, Illinois and at additional mailing offices. Postmaster: Send address changes to: ILLINOIS REALTOR®, Post Office Box 19451, Springfield, Illinois 62794-9451, 217-529-2600. Opinions expressed in any signed articles of ILLINOIS REALTOR® are those of the author and do not necessarily represent the opinions of Illinois REALTORS®. Advertising of product or services does not imply endorsement. Advertising rates are available at www.IllinoisRealtors.org or on request. A nnual dues of every REALTOR®, REALTOR-ASSOCIATE®, and Affiliate member include $3 for a one-year subscription to the ILLINOIS REALTOR®.

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PRESIDENT'S MESSAGE More voices = more opportunities to shape industry and association’s future

Ed Neaves

2020 President

An association the size of Illinois REALTORS® has a lot of voices. After all, with more than 50,000 members, we are one of the largest trade associations in the state, representing firms of all sizes in all markets. Whenever you have a membership with this much diversity, it stands to reason there are lots of opinions about how to make the industry better. That’s why our Public Policy Meetings in East Peoria were structured differently this year. The committees were smaller, but each one was given a mission to address specific issues and make suggestions which can meaningfully change our industry. While the committees were more compact and focused, your association added opportunities for members to tell us about the issues that keep them up at night, whether it’s high property taxes in the state or new regulations such as Rent Control which can curb market growth

and housing opportunity. In addition to revamping the Illinois REALTORS® business meetings structure, we conducted focus groups and just completed a comprehensive member survey. This effort to include as many voices as possible extends beyond January. Association members will craft a strategic plan this year, part of a commitment to “focus on the future” in 2020. This plan seeks input from all, and the emphasis on inclusion will continue well beyond the end of the year. The bottom line is this: Your voices are important, and we want to hear from you as we work together to make Illinois REALTORS® even more relevant. We exist in a constantly changing business environment. The only way your association can be successful is to make sure we listen closely to our members who are experiencing these changes in real time.

Ed Neaves, president Illinois REALTORS®

t While in East Peoria, the Public Policy and Program Working Group Roundtable discussed a variety of industry topics ranging from preferences in education to the role teams are playing in real estate. Pictured (l to r): REALTOR® Thomas Krettler, Local Governmental Affairs Director Jim Clayton and REALTOR® Jayme Ahlden Fay.

ILLINOIS REALTOR® April 2020

QUICK TAKES Higher loan limits for Illinois counties in 2020 Higher home prices are pushing up 2020 loan limits for mortgages. The Federal Housing Finance Agency (FHFA) raised the maximum conforming loan limit for Fannie Mae and Freddie Mac to $510,400 for one-unit properties in Illinois and most other states. The limit was $484,350 in 2019. Loans over the maximum conforming limit are considered jumbo loans. The Federal Housing Administration (FHA) also raised maximum loan limits around the country. Counties in the Chicagoland area and around Rockford remained the same, but the remaining Illinois counties will see limits increase to $331,760 from $314,827.

FHA loan limits 2019 vs. 2020

Most Illinois counties 2019 - $314,827 | 2020 - $331,760 Chicagoland area 2019 - $368,000 | 2020 - $368,000 Rockford area 2019 - $339,250 | 2020 - $339,250

Find your county’s FHA mortgage limit at: bit.ly/FHA_MortgageLimits

Illinois population down 1.2% since 2010

source: CoreLogic

Illinois homeowners see moderate gains in home equity Homeowners around the country are watching the equity in their homes grow. In late 2019, the average U.S. homeowner gained $5,300 in annual home equity, according to CoreLogic’s Q3 2019 Homeowner Equity Insights report. Idaho had the largest year-overyear gains – an increase of nearly $26,000 – while Illinois was at the lower end with around $1,000 in higher equity. www.corelogic.com/insights-download/homeowner-equity-report.aspx 6

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The state’s population declined by 159,751 people between April 2010 and July 2019, bringing Illinois’ most recent population count to around 12.6 million, according to the most recent estimate from the U.S. Census Bureau. Illinois is now the sixth most populous state in the nation, behind California, Texas, Florida, New York and Pennsylvania. After the official 2020 census count, Illinois is expected to lose a congressional district in southern Illinois where the population is declining and could fall below the threshold needed for a district.

Morris honored with top NAHREP Chicago honor

Illinois REALTORS® Treasurer Ezekiel “Zeke” Morris was honored by the Chicago chapter of the National Association of Hispanic Real Estate Professionals (NAHREP) with the Alexander Chaparro Leadership Award. Morris is the owner and managing broker of EMA Realty and Management in Chicago.

Millennials, Silent Generation share similar homebuying priority Twenty-something consumers share something with their grandparents when it comes to buying a home – both groups prioritize being near friends and family, according to NAR’s 2020 Home Buyers and Sellers Generational Trends Report. Fifty-three percent of homebuyers between 22-29 and 74-94 listed proximity to loved ones as a major factor in choosing a neighborhood to buy a home, the report found. Read the full report at bit.ly/ NAR_GenerationalTrends

Ezekiel “Zeke” Morris

Two win 2019 National Commercial Awards

Illinois REALTORS® Luke Worrell, of Jacksonville, and Kevin Rocio, of Chicago, were among 59 commercial REALTORS® from around the country recognized by NAR for dedication to the industry and commitment to their communities. Worrell is a broker for Worrell Land Services in Jacksonville and Rocio is a broker for the ROC Advisory Group with @properties Commercial in Chicago.

Luke Worrell

Kevin Rocio

More first-time buyers are living with their parents, relatives or friends rather than renting on their own before they make the jump to homeownership. Nearly one-quarter of first-time buyers lived at home before buying compared to a low of 12 percent in 1993, according to the National Association of REALTORS® Profile of Home Buyers and Sellers.

ILLINOIS REALTOR® April 2020

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BALANCING ACT: Answering tough client questions while complying with Fair Housing rules By Anneliese Fierstos, Legal Hotline Attorney and Stephanie Sievers, Senior Editor

lients ask REALTORS® a variety of questions when they are buying or selling a home. But some questions, whether the client intends it or not, can veer into perilous territory and raise red flags when it comes to fair housing rules. “I’m not from the area. What are some good, safe neighborhoods to live in?” “Can I ask that some potential buyers get pre-approved for financing before we get too far in the offer process? I don’t want to waste my time if some people aren’t qualified.”

If those questions don’t raise concerns, they should. The Fair Housing Act prohibits housing discrimination and aims to provide equal housing opportunities for everyone. For REALTORS®, inclusivity isn’t just the law, it’s the right thing to do. Earlier this year, the National Association of REALTORS® reaffirmed an ongoing commitment to the issue by announcing a new Fair Housing Action Plan aimed at enhancing REALTOR® accountability and training. (bit.ly/NAR_NewFairHousingPlan) So how do you uphold fair housing standards and answer some of the tough questions that can come your way? Here are a few of the key areas to be aware of and how you should handle them.

Discriminatory advertising

What guidelines can my brokerage implement and share with our licensees to make certain our advertisements do not violate fair housing laws?

Be aware that fair housing laws do not only apply to the very visible advertising such as billboards or newspaper ads. The laws apply to any type of advertising including applications, flyers, brochures, signs, banners and even posters or pictures in a real estate office. They also apply to personal communications such as texts or conversations. REALTORS® should avoid using language in advertising or other (cont'd pg. 10)

Fair Housing at a glance What is the difference between the classes protected by fair housing law in Illinois, and those protected by federal law? • Federal law includes the following protected classes: color, disability, familial status, national origin, race, religion and sex. • Illinois law is more expansive than federal law and includes the following classes: race, color, religion, sex, national origin, ancestry, age (40 and above for employment matters), order of protection status, marital status, disability, military status, sexual orientation, pregnancy, unfavorable discharge from military service in connection with employment and familial status. • Check local human rights ordinances prohibiting discrimination against additional protected classes not covered by state and federal law. • It should be noted that Article 10 of the NAR Code of Ethics and Standards of Practice includes sexual orientation and gender identity as protected classes.

ILLINOIS REALTOR® April 2020

Steering

May a REALTOR® recommend a client look at housing in a particular neighborhood because they feel the client might be more comfortable in an area based on their nationality or race?

New trend to watch: criminal history and housing accessibility The new Just Housing Amendment to the Cook County Human Rights Ordinance aims to reduce housing discrimination by limiting how much of an applicant’s previous criminal history can be considered when evaluating rental applications. The ordinance, which only applies to Cook County, requires a twostep screening process, with ability to pay considered first. Find an FAQ, podcast and more at: www.IllinoisRealtors. org/JustHousing 10

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communication channels that can be construed as limiting access to the property to any particular group of people. Be aware that even a poster or picture in a real estate office or in front of a condominium association representing one type of person could be a violation. For example, if all of the photographs in a poster are of young, white, professional looking people and there is a distinct absence of children, or persons of differing races or nationalities, this could be construed as an attempt to convey a limitation of access to the property. Avoid using phrases that have been associated with discriminatory practices in the past. Good examples of language to avoid include, “exclusive” or “restricted.” Keep in mind that sometimes discriminatory objectives can be veiled in seemingly neutral language, so choose words carefully. Focus on objective information like property details and avoid using language that indicates what “type” of person you think would be a “fit” for the property. Consider using U.S. Department of Housing and Urban Development's (HUD) equal housing opportunity or fair housing logo in advertisements. Although not required, it is highly recommended and a good way to convey the message that you support and uphold fair housing requirements.

No. That would be “steering” which is a form of discrimination prohibited by fair housing laws. Steering is the practice of directing potential buyers or tenants either toward or away from a particular neighborhood or community based upon a particular characteristic and it applies not only to race, but also sexual orientation, religion, age and all protected classes. Even if there is no intent to discriminate, and you believe you are providing your buyer clients with what you feel is a better fit, that is not your role. You need to be mindful that intent does not matter in the world of discrimination, and it is not an element to prove that discrimination took place. REALTORS® need to be conscious of the potential discriminatory impact of their words and actions. Provide clients with listings based upon the objective criteria they have provided for their future home. That may include special features, price point, desired commute time or distance to a grocery store. How can a REALTOR® respond if a buyer client asks about the quality of schools in the area? REALTORS® should refrain from offering personal opinions about a community or an area because an opinion could be misconstrued to be based upon prohibited criteria. Instead, you can guide buyers to third party resources that will provide answers to questions about neighborhoodspecific information. For example, school ratings and crime statistics are all

public information. A client can access these public records and review them, thereby allowing them to make their own conclusions about a neighborhood or geographical area. A REALTOR® should not create a handout or pamphlet containing this information, even if it is simply duplicating information from public records. Links to objective information can be provided upon request. How can a REALTOR® screen applicants or potential buyer clients so they are not “wasting time” showing property? Avoid any inconsistency in the prerequisites required to provide services. For example, if office policy or the seller requires a prequalification letter from a lender, that must be applied to every client across the board and records should be retained to support that the practice is applied consistently. Any time requirements are inconsistently applied, there is the risk of actions being perceived as discriminating on a prohibited basis. If a prospective resident or client makes any accusation of discrimination, HUD or another human rights agency may ask for all documentation related to all contacts with the party, starting with the first one. That information may include any application forms, rent offered, properties shown, deposits and fees. It is important to keep careful records showing that all prerequisites were applied uniformly for all properties and prospective clients. Consider reviewing office policies and procedures and making sure the need for consistency is addressed and made clear to all personnel/licensees.

installing ramps outside a building entrance, widening doorways or providing reserved accessible parking spaces. Be aware of some conditions that do not appear to be disabilities. One example of this is hoarding, which might reveal an obsessive/compulsive disorder. When it comes to hoarding, can a property manager evict a tenant who, after repeated notifications that they are violating the terms of their lease, has failed to remove excess belongings that are interfering with required maintenance or inspections? Although tenants do typically have a duty to comply with the terms of their lease, including terms addressing cleanliness and upkeep, fair housing laws may give tenants who are “hoarders” certain rights in some instances. Hoarding is recognized as a mental disability and may also be related to other disabilities like obsessive compulsive disorder, dementia, psychosis and/or depression. If a person suffers from hoarding and they have been threatened with eviction proceedings, they may be able to request a reasonable accommodation of the lease provision prohibiting the behavior.

Fair Housing resources Illinois REALTORS® can access fair housing videos, brochures, CE courses and more at www.IllinoisRealtors. org/FairHousing. This is a members-only page, so you will need to log in. The National Association of REALTORS® also offers a variety of REALTOR® resources at www.NAR.Realtor/ Fair-Housing

Disability issues

When it comes to equal access to housing, reasonable accommodations and modifications must be made for people with disabilities. This could include ILLINOIS REALTOR® April 2020

The reasonable accommodation may be allowing the tenant more time to address the underlying issues leading to the hoarding behavior and to seek mental health services. A reasonable accommodation request could possibly be denied if the behavior poses a direct threat to the safety of the property owner or other tenants. In cases of hoarding or other behaviors that could be related to an underlying mental health issue, which could be recognized as a disability, it is a good idea to establish a practice of consulting with an attorney about how to handle the situation. On the topic of reasonable accommodations, what is the latest guidance regarding assistance animals?

Housing guide

The Illinois Department of Human Rights offers a helpful guidebook on the topic, “Reasonable Accommodations and Modifications: A Guide for Housing Professionals.” bit.ly/IDHR_Guide

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A new Illinois law, the Assistance Animal Integrity Act, went into effect on Jan. 1, 2020, and clarifies the requirements for someone to establish a disability and a disability-related need for an assistance animal. Under the new law, anyone requesting accommodation for an assistance animal may be asked to provide supporting documentation from someone in a “therapeutic relationship” with the person, e.g., a physician or other medical professional, a mental health service provider, non-medical service agency or reliable third party who is in a position to know about the individual’s disability.

“Therapeutic relationship” does not include an entity that issues a certificate, license or similar document without conducting a meaningful assessment of a person’s disability or a person’s disabilityrelated need. This might stem the practice of “buying” a certificate from online. Even a single visit to a provider may not suffice to support certification under the new law. If the applicant asks for accommodation for more than one animal, the housing provider may ask for supporting documentation as to the need for each of the animals, if the disability or need is not obvious. The new law further protects housing providers from liability because, under Section 15 of the law, the housing provider will not be held liable for injuries caused by an assistance animal allowed on the property as a disabilitybased accommodation. Finally, the law does contemplate circumstances when a housing provider may be able to deny a request for accommodation (or rescind an accommodation). Some examples might include when the accommodation threatens the health of another resident who had severe allergies, or accommodation requires the property owner to make unduly burdensome and expensive alterations to the property to accommodate the animal. The occasions in which a refusal would be appropriate under the new law will become clear over time as the new law is applied. In the meantime, property owners, property managers and other housing providers should consult with their attorneys to make certain they are applying the new law appropriately. HUD has prepared a notice outlining more specific guidelines for assessing a person’s request to have an animal as a reasonable accommodation under the Fair Housing Act. bit.ly/HUD_Asst_Animal (Note this replaces HUD guidance that has been used since 2013).

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Streaming Soon

Appraisals – what’s new and what you need to know to help clients and yourself By Lee Nelson

he mother-daughter real estate team of Marlene Rubenstein and Dena Fox believes it is their job to provide as much information as possible when their client’s property is appraised. “We send a lot of information ahead of time to the appraisers including floor plans, lists of everything our client has done to the unit or house, and all market data,” says Fox of Rubenstein Fox Team at Baird & Warner in Chicago. Property appraisals are performed for a variety of reasons including mortgage lending purposes, tax assessments and negotiations between buyers and sellers, according to the Appraisal Institute in Chicago. REALTORS® can play a role in sharing pertinent materials about a property, but they and their clients also need to be aware of appraisal rules including a recent change by federal regulators on the price of homes needing an appraisal.

New amended rule raises threshold

For the first time in a quarter of a century, federal regulators have raised the limit on most residential real estate transactions requiring an appraisal from $250,000 up to $400,000. The change came about in late 2019 “to provide burden relief without posing a threat to the safety and soundness of financial institutions,” according to a news release from the Federal Reserve, Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency. REALTORS® should know this new limit does not apply to homes being backed by a government loan such as FHA, VA, Fannie Mae, Freddie Mac and more. As an appraiser, Dave Binz, president and chief appraiser of Realpro Appraisals Inc. in Elgin, says he believes everything should be appraised. “A real estate transaction becomes a very emotional decision for buyers and sellers. A good appraiser provides protection

REALTORS® Marlene Rubenstein and Dena Fox

to the person buying the home,” he said. An appraisal is one of the lowest price components of a real estate transaction and it can give buyers peace of mind paying for a property, Binz said. Yet, he realizes in some places, some people don’t care if they are overpaying.

Saving homebuyers money (maybe) and time

Appraisals still are being ordered on the majority of refinance and purchase transactions, says PJ Trautman. He is a licensed appraiser, real estate broker and property manager within his family's brokerage, Champaign County Realty in Champaign. He expanded his business with Appraisals By Trautman in uptown Chicago. Appraisal waivers have become a popular way to make the buying process slightly more affordable to buyers, he adds. Lenders use Automated Valuation Models (AVMs) to value properties, but sometimes those automated models might not be accurate, he said. For a purchase transaction, a waiver might be used if the buyer borrows less than 80 percent and is well-qualified. Plus, the property should be located in an area with ample and proximate comparable data. “An appraisal waiver, when used in a residential transaction, typically saves an Illinois buyer $300-$750. I don’t believe this new savings will be notable enough to (prompt) additional people to purchase who otherwise wouldn’t have,” Trautman explains. The national average cost of a professional appraisal runs $336. However, those properties which require a lot of work by the appraiser can jump over $1,000, according to HomeAdvisor.com. That appraised value can be used to determine how much clients will pay in real estate taxes, too. ILLINOIS REALTOR® April 2020

“A real estate transaction becomes a very emotional decision for buyers and sellers. A good appraiser provides protection to the person buying the home.”

– Dave Binz

Fox believes the $400,000 property limit increase will make the buying process faster. “You don’t have to wait on an appraisal in a busy market. That can take a week or more,” she says. Her mother, Marlene Rubenstein, emphasizes that REALTORS® need to understand the distinction between a contract contingent on an appraisal and an appraisal contingent on securing a mortgaged loan. Trautman encourages agents to check real estate taxes for their current listings to ensure they are appropriate and accurate. “Real estate taxes can make or break a property’s affordability for a buyer,” he says.

Relationships between REALTORS® and appraisers

The mother-daughter duo feel real estate agents should offer better communication with appraisers. “Most appraisers have 95 percent of the work complete by the time they come to do an appraisal,” Fox says. “A lot of agents just open the door and explain a few things and hand the appraisers the information at the appointment. At that

point, the appraisers have already done most of the hard work.” That’s why the pair researches comps, gathers other pertinent information and puts together a packet with everything they and the homeowners know to give to the appraisers ahead of time. Trautman agrees with their process because an appraiser has no desire or motivation to delay a transaction. “REALTORS®, both listing and buyer agents, could take a more proactive approach to the appraisal process when they have a buyer utilizing VA, FHA or USDA financing programs,” he adds. “I suggest for them to do a cursory overview of the property and ensure that the required property conditions are met.” It helps for an agent to know the rules and help a seller understand what necessary changes need to be done. For example, one loan program may require a smoke and carbon monoxide detector within 15 feet of every bedroom. (Note that state law requires these things, too.) That should be done before the appraiser gets there. “The appraiser is required to report the true conditions at the time of the appraisal site inspection,” Trautman adds. Binz says that some agents won’t give him any information before the appraisal while others hand over all kinds of data. “Agents can interact with appraisers without repercussion. Some still feel like they are trying to persuade the appraiser if they hand them a packet,” he adds. “But they are the people with their boots on the ground. The small talk that we get from REALTORS® can be very valuable.” While the appraisal must be independent, it is proper and allowable to provide property information that is relevant to a determination of value.

An appraiser’s process

Binz explains that his appraisals can take as little as 30 minutes for a small house. A bigger house can take an hour or more depending on the square footage. All 16

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features of the home from hardwood floors to granite countertops to new roofs get photographed and listed. “I try to involve the homeowner as much as I can. They can walk through the house with me,” he says. Homeowners generally are very proud of their homes and the things they have upgraded. They mention everything from putting in a new furnace three years ago to changing all the lighting a few months ago. For Trautman, he first compiles all information including MLS data, public records, property record cards and surveys, and plat and aerial maps. He then verifies the gross living area, confirms bedroom and bathroom counts, and assesses the functional utility of the floor plan. Appraisers are trained to look beyond clutter and mess. After the site inspection, he searches comparable houses and observes the surrounding areas that influence the market such as parks, the school district and ponds. Negative

aspects such as a busy road, noisy railroads and environmental hazards get written down. “I am determining what specific features a prospective buyer may notice when comparing this property to those that might be offered for sale at the same time,” he says. The appraiser can only discuss results with the client of the assignment. In a purchase transaction, this usually is the lender even if the buyer paid for the appraisal, Trautman states. If a REALTOR® or their client has questions about the appraisal, they should direct the questions to the party who ordered the appraisal, likely the lender. If the client finds the questions or concerns valid, the client can approach and ask the appraiser for corrections or clarification.

“An appraisal waiver, when used in a residential transaction, typically saves an Illinois buyer $300-$750."

– PJ Trautman

About the writer: Lee Nelson is a freelance writer in Illinois. She can be reached at leenelson77@yahoo.com.

ILLINOIS REALTOR® April 2020

Meet the 2020 REALTOR® of the Year Doug Carpenter By Bill Kozar, Content Marketing Specialist

Weeks after Doug Carpenter was named the 2020 Illinois REALTOR® of the Year, he was still receiving congratulatory messages from colleagues and friends. “It continues for awhile,” said Carpenter, a broker for Coldwell Banker The Real Estate Group in Mokena. A 35-year real estate veteran with more than 20 years of involvement at the state association level – including serving as 2017 state president – Carpenter has built relationships with REALTORS® throughout Illinois.

What does it mean to be Illinois REALTOR® of the Year?

There is nothing quite like it. It is one of the highest honors you can receive. At the time of the announcement, I was totally in shock. I kept thinking there are others who deserve this more than I do. I was just hoping to walk up to the podium and say thank you without stumbling. My mind was going in a million different directions. I’m not involved with the association for recognition. I do it for the love of the association.

What came first for you – involvement at the local, state or National Association of REALTORS®?

I started with the local association and became involved with local committees. Then George Patt, who was the executive officer with the Greater South Suburban Association of REALTORS® got me involved at the state level. At the time, he 18

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Doug Carpenter is congratulated by his colleagues after being announced 2020 Illinois REALTOR® of the Year during the association's Public Policy meetings.

was the president of the Illinois Real Estate Educational Foundation (REEF). He encouraged me to stay involved. Meanwhile, I moved up the local association leadership chain and became 1997 president and ROTY the next year. In 2001, after our local association went through several mergers, I was elected president of the Mainstreet Organization of REALTORS®. At the same time, I became more involved with the state association.

Has the way you measure success changed in your career?

Success is in knowing what to do. Satisfaction comes in doing something right. For example, success can be helping new agents get themselves up and running as soon as possible. When it comes to association work, you can experience different types of satisfaction. You can feel it when you help develop a new program or help make a change. You learn and grow through each committee you serve on.

Doug Carpenter, ABR, AHWD, GRI, SFR, served as the 2017 Illinois REALTORS® president. He is a broker for Coldwell Banker The Real Estate Group and has a managing broker license. He twice served as president of his local association and was the CEO of Three Rivers Association of REALTORS®. He’s a current member of the Mainstreet Organization of REALTORS® and has been awarded the local association’s Key Award. He is a long-time member of the Illinois REALTORS® Board of Directors and has served on numerous committees, working groups and task forces. In 2009, he received the Illinois REALTORS® Distinguished Service Award.

2020 LOCAL ASSOCIATION REALTORS® OF THE YEAR

Brandon Shaffer

Kyle Killebrew

Kevin Gouchenouer

Jim Waller

Bloomington-Normal

Capital Area

Central Illinois

Champaign County

Rebecca Thomson

Cynthia Bevis

Lucas Albright

Tammy Owens

Chicago

Egyptian

Fox Valley

Greater Gateway

Becky Kirchner

Carla Capasso

Linda Hamer

Don St. Germaine

Heartland

HomeTown

Illini Valley

Kankakee-Iroquois-Ford

Once I reach a goal, I’m not going to stop. I’m going to help wherever I’m needed and do whatever I’m asked to do.

You were the first Illinoisan to reach the RPAC Hall of Fame. What moved you to support RPAC so generously so soon? Dick Crosby got me really involved in supporting RPAC. He explained why we needed to help RPAC. As a result, I saw the real need and importance of it. I was proud of being the first Illinoisan in the RPAC Hall of Fame, but it wasn’t necessarily about me. It was about Illinois. Hopefully I inspired others to support RPAC too. And now that we’ve earned the RPAC Triple Crown three years in a row, let’s keep it going.

What are the biggest challenges in the real estate industry today?

Technology is always a challenge because it changes constantly. Focus on what works for you. Market yourself properly. Stay current on changing business models. Keep association work in front of newcomers.

Karen Irace

Steve Hudson

Lynn Epping

Marty Norkett

Mainstreet

North Shore-Barrington

Northwestern Illinois

Northern Illinois Commercial

Thomas Carraher

Suzanne Miller

Dennis Bell

Brittany Schultz

Oak Park

Peoria Area

Quad City Area

Rockford Area

What’s the best thing that real estate has done for you?

Building friendships and relationships with people over the years. We help people build careers and find homes. I love seeing people happy and enjoying success. After all, we’re helping people with the biggest purchases in their lives. Read a full interview with Carpenter at www.IllinoisRealtors.org/blog/ Meet-the-2020-Realtor-of-theYear-Doug-Carpenter

Sponsored by the Illinois Real Estate Educational Foundation and the Illinois REALTORS® YEARS

John Grissom

Ken Pytlewski

Southwestern Illinois

Three Rivers

ILLINOIS REALTOR® April 2020

Q&A WITH DUSTIN BROHM

Building a brand and engaging potential clients with podcasts and video By Courtney Westlake

When Dustin Brohm began his real estate career nine years ago, he was being mentored by a seasoned agent who enjoyed the thrill of the chase when it came to new client acquisition. “He would approach people everywhere, but I hated every minute of that,” Brohm admits. “Out of necessity, I googled how to get leads, and I came across the concept of content marketing, which means creating content like video to build expertise and provide value to people.” As a REALTOR®, the potential to reach clients through content marketing and social media is highly appealing but 20

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can also be overwhelming. What type of marketing should you engage in and on which platforms? And what exactly should you share? Brohm, a Salt Lake City-based REALTOR®, is a national speaker and the host of the Massive Agent Podcast. His podcast offers real estate marketing and lead generation tips and spotlights emerging trends in the industry. Find the podcast at www. massiveagentpodcast.com Brohm answers five questions about the best practices in podcasting and videography to produce results for agents.

How can video/podcasts help agents connect with potential clients and enhance their personal brands?

Personal branding is imperative; it’s really the only thing that matters. You could be the best agent the world has ever seen, but it doesn’t matter if people don’t know who you are at a local level. Podcasting, blogging, video, writing articles and other types of content marketing are just tools to build your personal brand and deliver helpful, entertaining and valuable information to people. The end goal of utilizing content marketing is to be known and recognized, so that when people are looking for a REALTOR®, they already know you.

For agents overwhelmed by the technology, what would you recommend?

It’s so easy to think that you need to get all this expensive equipment before you can get started. But it’s absolutely possible to use your iPhone and earbuds to record a podcast episode. There are also free software programs for editing, such as Audacity for Windows and GarageBand for Mac. You just need to have decent audio—not studio level, but good enough—and really great content to podcast. And iPhones and Androids are so high-tech now that you can do great cinematography as well. There is an extremely low barrier to entry when it comes to starting a podcast or shooting video, and I recommend that agents start with the bare minimum.

How should agents consider their ROI when it comes to their efforts?

ROI is hard to measure with branding in general, especially when you consider the long-range clientele or processes

involved with real estate. There are so many variables. I recommend that agents let go of ROI and focus on building an audience and creating impact. Who are you making a connection with? Who is reaching out to you? Who is talking about you? You know your ROI in your gut – are you growing, are you reaching people, are you making an impact? That’s what’s most important for your overall business.

What are some mistakes you see REALTORS® making when it comes to podcasting or video? One of the biggest mistakes I see is REALTORS® talking about the wrong topics. They think because they’re an agent, they should be talking about real estate all the time. I’m convinced that if you never talk about real estate, you can still gain a big audience and grow your business. What agents should be talking about is their community. Is there a new family fun center or a park opening, maybe a big high school sports rivalry game coming up, or maybe a new food truck has started? What is going on in your area that interests everyone? As an example, I know an agent in Madison, Wis., who started a podcast and video show called “I Love Madison,” which highlights the city. He even hosts meetups where his listeners can try new restaurants together. This has grown his business exponentially. People are wondering what’s going on around town. If you do the legwork and share about construction projects or community news, you’ll get their attention. Everyone will share it on social media and tag their friends. That probably won’t happen if you announce 10 tips for first-time homebuyers or brag about a listing that sold in under 48 hours.

What would you tell agents who are unsure how to start?

The only way to get better is doing it, so learn as you go. The big hang-up many agents have is wanting to make sure they’re great at it first. You can’t be great at something until you do it. But that’s actually another piece of the power of content marketing: people relate to those who aren’t perfect. It’s hard to be likeable, relatable and approachable if you’re “perfect” and polished like an evening news anchor. I also want to stress that you don’t have to do everything. It’s so easy for marketers and agents to want to take on all these new marketing activities, but we still have to be an agent and have a life. Narrow in on what you like to do and what you’re good at. Whether it’s blogging, podcasts or social media, you have to do it long enough to be consistent and realize some success. So it’s important to like what you’re doing. If you want to do more video or start a podcast, spend time watching and listening. Take the parts of other shows that you like and do them yourself. One great resource for finding high quality real estate podcasts is the Industry Syndicate app, which is a podcast network for the real estate industry. Borrow what other great podcasters are doing and put your own spin on it. Whatever you want to do, there is a medium or platform for you. Figure out what’s congruent with your personality. Once you pick something, then you can start adding on other ways to distribute your content. About the writer: Courtney Westlake is a writer and photographer from central Illinois. She can be reached at courtney@westlakewrites.com ILLINOIS REALTOR® April 2020

AT THE CAPITOL Illinois REALTORS®’ Sullivan earns top lobbying honor from peers The complete 2020 spring calendar for the House and the Senate are available on the Illinois General Assembly website www.ilga.gov

Illinois REALTORS® Senior Director of Legislative & Political Affairs Julie Sullivan has added another honor to her long-time career as a lobbyist representing the association. She has been named the 2020 speaker of the Illinois Third House, an organization that consists of all registered lobbyists from throughout Illinois. Past recipients elect the new speaker and consider work ethic, integrity and years of service. There is no higher honor for an Illinois lobbyist than to be named speaker of the Third House. Sullivan shares her thoughts on the recognition.

Sullivan was named speaker of the Illinois Third House, on Dec. 5, 2019, in Chicago. She’s pictured with Illinois REALTORS® Senior Vice President for Governmental Affairs Greg St. Aubin.

In December, you were named the latest speaker of the Illinois Third House. What does the honor mean to you? he greatest compliment is to be T recognized by your peers.

For those of us who aren’t lobbyists, can you explain what the Illinois Third House is and its role in the lobbying industry? he Illinois Third House is an T organization made up of registered 22

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lobbyists representing all industries and interests. The organization has been around since 1944, so its traditions run deep. It is basically a social network, and we get together once or twice a year.

What are your duties during your year as speaker? o real duties as such. I do plan the N social events: one will be at the end of the spring session in May and the holiday party in December where the next speaker will be named.

SPONSORED CONTENT

MRED Teams Up to Create a Better MLS Experience By Rebecca Jensen

You’ve lobbied on behalf of Illinois REALTORS® and the industry for 30 years. What does it mean for the association to have someone with that expertise and professional longevity representing them in Springfield? J anuary 2020 marked my 31st year lobbying on behalf of Illinois REALTORS® and private property rights. I think legislators and staff know that I care about the issues that we engage in at the Capitol and value my reputation as a hard worker and am true to my word. I am a firm believer in the adage, “Your word is your bond.”

Looking back at your career, what are some highlights or wins that stick out to you?

here are so many highlights, but I T would say the legislation that stands out were the hard-fought battles resulting in wins for the real estate industry and for private property owners. That includes: the bill that put into state law the referendum requirement to impose a new or increase an existing home rule real estate transfer tax, the comprehensive eminent domain statute, uniform guidelines for imposing impact fees for road improvements and having the first in the nation Commercial Real Estate Broker Lien Act. Every year holds its own challenges in this business.

Stay up-to-date on everything happening in Springfield with the State Capitol Report at www.IllinoisRealtors.org/ Advocacy/State-Capitol-Report

President and CEO of Midwest Real Estate Data (MRED)

Are you ready for the spring market marathon? We’re lacing up our own running shoes; the excitement of spring brings one of MRED’s most highly anticipated and influential events. Our annual, invite-only meeting is scheduled for April 30, and we're thrilled to feature Real/Scout Co-founder/President Andrew Flachner as the keynote speaker. Andrew is an industry visionary, as evidenced by his inclusion on REAL Trends’ Game Changers List, the Swanepoel Power 200, and Inman News’ list of the 100 Most Influential Real Estate Leaders. This exclusive event is a way for MRED’s owners and other stakeholders to come together and shape the future of the MLS in our marketplace. The feedback we receive from practitioners plays an instrumental role in creating our strategic goals. Would you like to be an owner of MRED and enjoy benefits like participating in this meeting? If you’re interested, email us at ownership@mredllc.com for details. Here’s a sneak peek at some of the hot topics we’ll be addressing at the meeting:

New Technologies

This year, we’re working on deepening our Teams features, improving search capabilities, offering a faster listing input process, enhancing the Private

Listing Network, adding transaction management platform integrations, and more. Those are several lofty goals, but it’s all to make life easier for agents. And remember: we welcome your feedback to continually improve our technology and service for you.

MRED Growth

We’re constantly seeking opportunities to work with new organizations. We’ll be discussing the exciting topics of expansion and front end of choice in the meeting. We’ll also be opening up the floor to discuss alternative business models and proposed changes to MRED’s Operating Agreement that would expand our ownership structure. We don’t take decisions like these lightly; we look to our owners and stakeholders representing the marketplace for insight.

Legal Updates

It can be difficult to navigate the legal waters of our industry. MRED’s legal counsel will be speaking on important topics, providing useful context and information for meeting attendees. This is just some of the progress we’re making, thanks in large part to the feedback and ideas we hear from subscribers daily. We hope to see your brokerage represented at our Strategic Planning meeting on April 30th. If your brokerage has not already received an invitation and you are interested in attending, please contact ownership@mredllc.com.

ILLINOIS REALTOR® April 2020

Advocacy hot topics:

Criminal background screening, inspections and vacant properties

Mike Scobey

Senior Director of Local Advocacy & Global Programs

Cook County rules regarding criminal background screening

In April 2019, the Cook County Board of Commissioners amended the county’s Human Rights/Fair Housing Ordinance to add the “Just Housing Amendment.” The intent of the ordinance is clear: prevent housing discrimination among persons with a criminal background. The amendment went into effect on Jan. 31, 2020. One of the biggest changes for housing providers will be incorporating the required, new two-step screening procedure. The first step is to “pre-qualify” a rental applicant on the ability to pay as well as items such as references and tenant history. If an applicant is pre-qualified, the next step of a criminal background check can be taken (only convictions three years old or less may be considered). If an applicant has a criminal history, an “individualized assessment” must be done. The assessment considers factors such as the nature and severity of the criminal offense and how recently it occurred, number of applicant’s criminal convictions, length of time since the offense occurred, evidence of 24

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rehabilitation, etc. Another provision gives applicants with a criminal history an “opportunity to dispute” the accuracy or relevance of a finding in a criminal background check. For more information, go to www.IllinoisRealtors.org/JustHousing This is a members-only page, so you will need to log in.

Lawsuit challenges Sauk Village inspection program

Several Illinois municipalities have “point of sale” home inspection programs. Sellers of single-family homes are required to contact the municipality when they put their home up for sale or rent. The municipality then conducts an inspection to enforce compliance with property maintenance codes. Illinois REALTORS® has worked with municipal officials to make sure these programs do not unduly interfere with the transaction and also allow due process for property owners. In January, a property owner in Sauk Village (southern Cook County) initiated a lawsuit against the village after it imposed a new set of inspection procedures that created huge new burdens for sellers, buyers and renters. The village delegated the inspection to an outside, private company (not permitted under state law). In addition, the scope of the required inspections is unclear. This has caused inconsistent enforcement and delays in transactions. Illinois REALTORS® and Mainstreet Organization of REALTORS® are assisting the owner (plaintiff) in this legal action. At press time this lawsuit was still pending. Illinois REALTORS® will provide periodic updates.

Vacant properties and the foreclosure process

After the recession, many local governments attempted to deal with vacant homes in their communities. Some municipalities imposed vacant property registration requirements aimed at identifying a responsible party to secure and maintain the home. Unintended outcomes have resulted from these registration requirements. When the definition of registrable property is not clear, or fees and penalties are excessively high, it can worsen the situation. A lack of understanding of the foreclosure process also contributed to the problem. Illinois REALTORS® has developed a new informational guide on vacant properties and the foreclosure process. “Vacant Property Registrations: The Good, The Bad and The Ugly,” helps local government officials, REALTORS® and consumers understand vacant property issues and provides a general overview of the foreclosure process in Illinois.

To get a copy of this members-only guide, log into bit.ly/RVoice_Downloads

ETHICS Professional Standards resources at the ready Checklists, reference guides and videos keep you up to date Illinois REALTORS® offers resources to assist you in complying with the requirements of the REALTOR® Code of Ethics. Find these resources in the Ethics/Professional Standards and Advertising Toolkit www.IllinoisRealtors.org/Toolkit

Videos

There are also several short videos available: • An explanation of the Ombudsman Program • The basics of the Ethics Citation Program Advertising Checklist A checklist will help you comply with the Code of Ethics and the Real Estate License Act when advertising and marketing your business.

24 Things to Do and Not Do When Marketing Your Business A reference guide to help you avoid common ethical and legal violations.

Raising the Bar A brochure that addresses common business practices and courtesies to ensure a smooth transaction, and that will assist in building relationships with your clients and fellow REALTORS®.

• What to expect at an ethics hearing when you are the complainant • What to expect at an ethics hearing when you are the respondent • The advantages of mediation • Arbitration vs. Mediation

ETHICS CITATION PROGRAM

In 2019, there were 192 complaints filed through the Illinois REALTORS® Ethics Citation Program, and 83 citations were issued. The top ethics citations issued were: • Article 12, Standard of Practice 12-5: failure to disclose name of real estate firm in advertising in a readily apparent manner • Article 12: failure to present a true picture in real estate communications, marketing and advertising • Article 3, Standard of Practice 3-9: providing access to listed property on terms other than those established by the owner or the listing broker* • Article 12, Standard of Practice 12-4: advertising or offering to sell/lease property without the authority of the owner or the owner’s authorized agent *Keep in mind that entering an owner’s property without proper consent can also be punishable in criminal court.

Becky Carraher

Director of Ethics and Professional Standards

ILLINOIS REALTOR® April 2020

REALTOR® COMMUNITY Follow us:

2020 Leadership Development Class

The association’s latest Leadership Development Program class kicked off its training with a Leadership Training Academy in Springfield in February. The 12 Illinois REALTORS® chosen for the program will learn more about association governance, running effective meetings, public policy, media training and more. The goal of the program is to prepare them for future work on committees, boards or as officers in their local associations.

Alonzo-Deubel appointed to state real estate board

Loretta Alonzo-Deubel, a broker with Century 21 Affiliated in Westchester and a past president of Illinois REALTORS®, has been appointed to the Illinois Real Estate Administration and Disciplinary

Board. She joins 10 other Illinois REALTORS® serving on the board.

Pro Standards training

Two Professional Standards Workshops were held in January – one at the Illinois REALTORS® headquarters in Springfield and a second in Oakbrook Terrace. The workshops covered Code of Ethics training topics. Back row (l to r): David Bovyn, EXIT Real Estate Partners, Mainstreet Organization of REALTORS®; Miguel Ángel Fernández, HomeSmart Connect Real Estate, REALTOR® Association of the Fox Valley; Efty Garba, Efty Realty Group, Chicago Association of REALTORS®; Matt Persicketti, Oak Leaf Realty, Three Rivers Association of REALTORS®; Dont’a Taylor, ARE Partners, Chicago Association of REALTORS®; Sheena Baker, CarMarc Realty Group, Mainstreet Organization of REALTORS®; 2020 Leadership Development Working Group Chair Brandon Shaffer, Berkshire Hathaway Homeservices Snyder Real Estate, Bloomington-Normal Association of REALTORS® Front row (l to r): Connie Vavra, RE/MAX Professionals, Mainstreet Organization of REALTORS®; Megan Beechen, Realty Executives Elite, Mainstreet Organization of REALTORS®; Liz McDonald, The McDonald Group, Champaign County Association of REALTORS®; Teresa Camarato, Property with TLC, LLC, Egyptian Board of REALTORS®; Monica Bullington, RE/MAX Rising, BloomingtonNormal Association of REALTORS®; Kelly Simpson, Coldwell Banker The Real Estate Group, Heartland REALTOR® Association

Professional Standards Committee Chair Vicky Turner (right, standing) talks with attendees at the Springfield workshop.

REALTORS® talk about advocacy and public policy issues facing the industry

Illinois REALTORS® held the association’s annual Public Policy Meetings in East Peoria, Jan. 21-23. During the three-day event, which included a visit from NAR President Vince Malta, Illinois REALTORS® talked about policy issues affecting the industry including affordability, international real estate, REALTOR® political advocacy and association involvement.

(l to r) NAR President Vince Malta; NAR 2020 Vice President, Association Affairs Mabél Guzmán and Illinois REALTORS® President Ed Neaves.

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Local Governmental Affairs Committee members (l to r) Diane Abell, Elaine Rhodes and Kinga Korpacz listen as Camilo Rodriguez makes a point.

An RPAC auction raised more than $123,000 for the association’s advocacy work. Pictured (l to r) REALTORS® Lisa Keating, Jeff Gregory and Chris Studebaker, association executive for the REALTOR® Association of the Fox Valley.

ILLINOIS REALTORÂ® April 2020