Illinois REALTORS® April 2021 by Illinois REALTORS®

APRIL 2021

THE VOICE FOR REAL ESTATE IN ILLINOIS

STRATEGIES

For a sizzling selling season Tips and tools to get a jump-start this spring

Resources to be a Fair Housing advocate Changes to the Code of Ethics and enforcement www.IllinoisRealtors.org

THE OFFICIAL PUBLICATION OF ILLINOIS REALTORS® ILLINOIS REALTOR® April 2021

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TABLE OF CONTENTS APRIL 2021

04 Inside Track

How to be united, strong and resilient

05 President's Message Resources to succeed this spring and summer

Grow your business this spring

06 Quick Takes

Build your brand, grow professionally by keeping diversity and inclusion top of mind

• IRS offers three new tips when you file your taxes • Homeowner wish list: better kitchens and outdoor spaces • Illinois makes 2020 top five in two green categories

9 Legal Update

Hot on the Hotline: Advertising, teams and your listings when you leave a brokerage

21 Education

Guidelines for a successful license renewal

Changes to the Code of Ethics and enforcement

April is Fair Housing Month Find resources to be an advocate for fair and equitable housing year round

22 At the Capitol

Full spring session agenda on tap

Celebrate our heritage all year to keep us united, strong and resilient

24 Infographic

Why invest in RPAC?

28 RVOICE

REALTORS® challenge an inspection program in Sauk Village

31 Community

19 ILLINOIS REALTOR® April 2021

INSIDE TRACK What are you doing to be united, strong and resilient?

ILLINOIS REALTORS®

THE VOICE FOR REAL ESTATE IN ILLINOIS 2021 OFFICERS President Sue Miller, ABR, AHWD, BPOR, C2EX, CRB, CRS, GRI, ePro, LTG, PMN, SFR, SRS smiller@coldwellhomes.com President-elect Ezekiel "Zeke" Morris zekemorris@zekemorris.com

Something I learned in 2020 that will help me in 2021 is just be resilient. The quote comes to mind, “tough times don’t last, tough people do.”

Travis Wallace

Jameson Sotheby’s International Realty, Chicago

I think it’s really important that we as REALTORS® show we are here to help the community and help people make their lives better.

David Bovyn

Kale Realty, Chicago

Treasurer Michael Gobber, ABR, CIPS, CNC, CSC, GRI mike@gobberrealestate.com Immediate Past President Ed Neaves eneaves@tentacenterprises.com Chief Executive Officer Jeffrey T. Baker Executive Vice President Kristen Butcher, CMP Vice President Marketing and Communications Anthony Hebron Director of Marketing Stephanie Sievers Senior Marketing Content Manager Dawn Tebrinke Marketing Content Specialist Bill Kozar

I have been very impressed with the positivity, resilience and adaptability of REALTORS®. This ability to modify and overcome encourages me.

Miguel Ángel Fernández HomeSmart, Elgin

The thing REALTORS® can do this year is to push education. I definitely made use of some of my time early on during the COVID shutdown to pick up designations in order to be better at my craft and better for the public.

Jim Ludes

Lori Bonarek Realty, Coal City

We were all so thankful when they decided that this was an essential field. We went out and got the job done. I’m really proud to be one of the strong, united and resilient workers in the state of Illinois.

Kimberly Hunt

eXp Realty, Edwardsville

Graphic Design Manager 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®.

What I think is so great about this career is the people I have met have always been so generous, kind and willing to help, mentor and give advice on what works and didn’t work for them.

Laura Thon

Berkshire Hathaway HomeServices Chicago, Glen Ellyn

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PRESIDENT'S MESSAGE Resources available to help you succeed this spring and summer

Sue Miller

2021 President

Grow professionally; serve on a committee

Over the course of my real estate career, I have served on a variety of Illinois REALTORS® committees, working groups and task forces. I’ve built lasting personal connections, worked on industry issues close to my heart and had a hand in shaping the course of our association. Please join me in helping our industry survive and thrive by applying to be a 2022 committee member. Applications are open from April 13 to May 22, 2021. www. IllinoisRealtors.org/ About/Committees

As many of you know, education has played a major role in my life and I’m a strong advocate of leveraging it for one’s business success. So, I am very excited that your Illinois REALTORS® has a number of educational resources available to help you better serve your clients and increase your business the rest of this spring and throughout the summer. In this edition, there’s enlightening and educational information on fair housing and leveraging diversity and inclusion to grow your business. Specifically, check out the article about educational resources for advocating fair and equitable housing and a new free, online simulation program from NAR called Fairhaven. It enables you to identify, prevent and address discriminatory practices in real estate https://FairHaven.Realtor. Visit the Illinois REALTORS® website to review the final RELA rules to ensure your office is compliant www.IllinoisRealtors.org/RELA.

Also check out the inventory and mortgage tip sheets to help your clients who may be reluctant to sell their homes or those who are looking for guidance on financing a purchase. Lastly, take a look at the residential and commercial outlook from the recent global symposium www.IllinoisRealtors.org/Global and Illinois Young Professionals Network’s session on leadership www. IllinoisRealtors.org/YPN. Next month, join us for several online business webinars where national business experts will offer helpful tips on managing transactions for success, leveraging your social media channels, podcasting and using video to increase your visibility and communicate with existing and prospective clients. Please take advantage of these educational resources to further sharpen your skills so you can have your best summer selling season. Wishing you well! Sue Miller Illinois REALTORS® President ILLINOIS REALTOR® April 2021

QUICK TAKES IRS offers three new tips when you file your taxes this year

For more details on 2020 taxes payable in 2021, visit: bit.ly/IRS_TaxTips2021

In Memoriam

Illinois REALTORS® mourns the loss of Pekinarea REALTOR® Carol A. Shields. In 1996, she became the fourth woman in the history of the association to be chosen president. Shields died Jan. 21 in Naples, Fla.

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REALTORS® planning to submit their own income tax returns by April 15 should be aware of several new things that could affect their refunds. Changes include: u Taxpayers who met 2020 eligibility requirements will be able to claim recovery rebate credit, u Those who received at least $10 interest on 2019 federal income tax refunds got a “Form 1099-INT, Interest Income” from the IRS in January and must report that information on their 2020 returns, u Those who don’t itemize deductions can take charitable deductions of up to $300 for cash contributions made in 2020 to charitable organizations. As in previous years, the IRS says the fastest and most secure way to receive a refund is to combine Direct Deposit with electronic filing.

Homeowner wish list: better kitchens and outdoor spaces The COVID-19 pandemic changed the way some homeowners wanted to use their kitchen and yards, according to a survey of 1,000 real estate agents by HomeLight. When homeowners tried to spruce up their outdoor spaces, the number one item was a fire pit, followed by privacy fences or shrubs or cabana curtains, then a full outdoor kitchen, a shady area and screened in spaces. Fire pits were most popular in the Midwest and Northeast regions. The most popular kitchen projects: kitchen islands, walk-in

pantries, more drawer and cabinet storage, as well as attractive backsplashes. Midwestern real estate professionals said smart appliances were popular, too. For more details on these trends and popular ideas for enhancing bathrooms, go to: bit.ly/TopRenovations_2021

Illinois makes 2020 top five in two green categories

When the U.S. Green Building Council released its latest Leadership in Energy and Environmental Design (LEED) rankings in February, Illinois had the third highest number of square feet per capita and had the fifth most LEED professionals of any state in 2020. The leading states for LEED green buildings in 2020 were: Massachusetts (2.91 green square feet per capita), Washington (2.81), Illinois (2.61), Colorado (2.35) and New York (2.28). The top states for LEED professionals in 2020 were: California (26,906), New York (12,575), Texas

(10,474), Florida (9,694), Illinois (8,640) and Massachusetts (6,901). Get the full report at: bit.ly/ Illinois_GreenBuilding

Silver to join Illinois REALTORS® leadership team

Where are people moving in the US?

The Midwest region of the United States was third in the domestic migration rate during 2018 and 2019, according to Freddie Mac research. The South was first (.81 percent), followed by the West (.66 percent), the Midwest (.14 percent) and the Northeast (-.11 percent). The U.S. domestic migration rate has declined steadily during the last 50 years and dipped to an all-time low of 9.8 percent during 2018 and 2019. Statistics show populations are declining in industrial cities of the Midwest and the North. The states with the greatest population growth are: Texas, Florida, Georgia, Arizona, Washington and Nevada. Population growth in western states is aided by rising birth rates. Find out more about the research at: bit.ly/FreddieMac_PopulationGrowth

Which U.S. regions are growing fastest? -.11%

.66%

.14%

.81% Regional population growth rate, 2018-2019

Matt Silver, broker-partner with Corcoran Urban Real Estate in Chicago, has been named the 2022 treasurer nominee for the state association. An Illinois REALTORS® Board of Directors vote is expected to formally place Silver on the association’s leadership ladder later this year. At the state level, Silver serves as a Federal Political Coordinator for state Rep. Brad Schneider. He is a member of the Illinois REALTORS® Board of Directors, currently chairs the association’s Professional Standards Committee and has served on a variety of association committees during the past 19 years. A past president of the Chicago Association of REALTORS® (CAR), he was the 2018 Chicago REALTOR® of the Year and 2013 CAR REALTOR® Achievement Award winner. He served as 2015 president of the Real Estate Educational Foundation (REEF) and is a member of the Dearborn REALTIST® Board. ILLINOIS REALTOR® April 2021

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LEGAL UPDATE Hot on the Hotline: Advertising, teams and your listings when you leave a brokerage Teams and Advertising

Anneliese Fierstos Illinois REALTORS® Legal Hotline Attorney

Have a legal question?

Illinois REALTORS® Legal Hotline is the Designated REALTOR®/ managing broker’s go-to source for legal information. Hours: 9 a.m. - 4 p.m. Monday – Friday Phone: 800-952-0578 Email: afierstos@ IllinoisRealtors.org.

Would my team name, Fierstos Real Estate, comply with the Illinois Real Estate License Act (RELA)? Section 10-30 of RELA prohibits the use of inherently misleading terms as part of team names. Terms like “company, realty, real estate, agency, associates, brokers, properties or property” are specifically identified as inherently misleading, and that is not an all-inclusive list. The purpose of the prohibition is to make certain that teams and individuals are not mispresenting themselves to the public as if they are the sponsoring brokerage company. The rules do provide that a team name can incorporate inherently misleading terms like “real estate” if the name that includes a prohibited term also includes the term “team.” For example, The Anneliese Fierstos Real Estate Team would work under the new rules.

Moving Brokerages

I am considering leaving my current sponsoring broker and becoming selfsponsored. I planned to take my current listings with me when I go. Will I be able to do so? Generally, any listing agreement or buyer’s broker agreement belongs to the sponsoring broker by whom the licensee is sponsored at the time agreement is entered. The agreement is a contract between the sponsoring broker (not the individual licensee) and the buyer or seller. Therefore, any rights to the listing agreement belong to the sponsoring broker unless otherwise provided for by your employment/ independent contractor agreement.

If a licensee leaves a sponsoring broker, and the brokerage is willing to provide compensation to that licensee for licensed activity performed by that person while previously sponsored by the now non-sponsoring broker, they may do so under RELA Section 10-5(d).

Size Requirements and Advertising under RELA 10-30(f) Are there any guidelines available to help a team or licensee create advertising that will be compliant with Section 10-30(f) of RELA? Rules Section 1450.715(b)(1) outlines three “safe harbor” provisions for licensees to follow in creating advertising that will be compliant with 10-30(f). That rule also provides that a logo, emblem, label, trademarked image or similar identification is not considered part of the sponsoring broker’s name unless it actually contains the sponsoring broker’s name. Advertising that meets any of the following “safe harbor” tests shall be considered compliant with 10-30(f): u The font size used for the letters in the sponsoring broker’s name is as large or larger than the letters used in the team name or individual licensee name; u The area, in terms of height and width containing the sponsoring broker’s name, is as large or larger than the area, in terms of height and width, than that of the team name or individual licensee name; or u Any logo, emblem, label, trademarked image or similar identification incorporating the sponsoring broker’s name, is as large as or larger than that of the team name or individual licensee name.

ILLINOIS REALTOR® April 2021

LEGAL/ETHICS UPDATE Changes to the Code of Ethics and enforcement of the Code

Becky Carraher

Director of Ethics and Professional Standards

www.IllinoisRealtors.org

On Nov. 13, 2020, the National Association of REALTORS® (NAR) Board of Directors approved changes to the Code of Ethics aimed at combating discriminatory hate speech. “A REALTOR® shall be subject to disciplinary action under the Code of Ethics with respect to all of their activities,” according to the amended language of Policy Statement 29 in the Code of Ethics and Arbitration Manual. Previously, Policy Statement 29 limited the applicability of the Code of Ethics to real estate-related activities and transactions. As such, members could engage in conduct and speech that was discriminatory and abhorrent, and unless it could be tied to a real estate-related activity or transaction, the Code of Ethics did not apply.

This revised policy expands the applicability to ALL activities of a REALTOR®, especially as it applies to Article 10 of the Code. Note that the other articles, by their own terms, apply to real estate activities or practices. A new Standard of Practice under Article 10 was adopted: ARTICLE 10, STANDARD OF PRACTICE 10-5: “REALTORS® must not use harassing speech, hate speech, epithets or slurs based on race, color, religion, sex, handicap, familial status, national origin, sexual orientation or gender identity.” This Standard of Practice directly flows from the requirement to not deny equal professional services or be parties to a plan to discriminate. Specifically, showing bias against a protected class revealed through the public posting of hate speech could be evidence that REALTORS® would deny services to certain clients from certain protected classes or not treat them equally. Section 2 of the NAR Bylaws was also amended to require Member Boards to share with the state real estate licensing authority final ethics decisions holding a REALTOR® in violation of the Code of Ethics in instances involving real estate-related activities and transactions where there is reason to believe the public trust may have been violated. Public trust, as used in this context, refers to demonstrated misappropriation of client or customer funds or property, discrimination against the protected classes (emphasis added) under the Code of Ethics or fraud.

NAR has also issued guidance to ethics hearing panels as to what should be deemed “offensive” or “discriminatory” speech. Article 10, Standard of Practice 10-5, is not focused on types of speech that might be subjectively deemed “offensive” or “discriminatory” by one person and not another. The Standard of Practice is based on very particular types of speech directly connected to the protected classes of race, color, religion, sex, handicap, familial status, national origin, sexual orientation or gender identity under Article 10. Only the use of harassing speech, hate speech, epithets and slurs based on the protected classes of Article 10 are prohibited. The terms harassing speech, hate speech, epithets and slurs can be commonly understood through their dictionary definitions as well as other readily available references. Grievance Committees and hearing panels should follow a two-step process asking two questions: First is the language or speech harassing, hateful, an epithet or slur; and second, is the harassing speech directed at any of the protected classes? Again, hearing panels must look to whether the hate speech, epithet or slur is based on race, color, religion, sex, handicap, familial status, national origin, sexual orientation or gender identity and not on some other nonprotected characteristic, such as one's political beliefs. The sanctioning guidelines for ethics hearing panels were also amended to provide guidance in determining discipline for violations of Article 10,

Article 3, Standard of Practice 3-11, and violations of the public trust. A hearing panel should consider a violation of the public trust by a REALTOR® as a particularly egregious violation of the Code when determining appropriate discipline. NAR has been hosting informational sessions on the implementation of these changes. To listen to the recordings of the sessions already held or to register for future sessions, visit its website at bit.ly/ NAR_ChangesToTheCode.

To review the Frequently Asked Questions regarding these changes, please visit bit.ly/FAQ_NAR_ BoardApprovedPolicies. If you or your client feel you are the victim of discrimination, please file a Request for an Ombudsman at www.Illinoisrealtors.org/Ethics/ Disputes. An Illinois REALTORS® trained ombudsman may be able to assist in resolving the issue in “real time” and help the victim of the discrimination conclude a successful transaction.

Final RELA rules adopted in February The administrative rules under the Illinois Real Estate License Act (RELA) were permanently adopted by the Joint Committee on Administrative Rules (JCAR) on Feb.23, 2021 and are now incorporated into the Illinois Administrative Code which is the state’s body of administrative law. Often referred to as simply the “Rules,” they provide guidance and clarification on interpreting the Real Estate License Act. A quick reference guide to the Rules is available on our website. bit.ly/ RELA_RuleHighlights. The final Administrative Rules under the Real Estate License Act can be found at bit.ly/Final_ RELA_Rules

ILLINOIS REALTOR® April 2021

LEGAL

Appendix XII to Part Four

(Adopted 11/20)

Code of Ethics and Arbitration Manual - Appropriate Interpretation of Standard of Practice 10-5 and Statement of Professional Standards Policy 29 Standard of Practice 10-5 prohibits REALTORS® from using harassing speech, hate speech, epithets or slurs based on the protected classes of Article 10. Statement of Professional Standards Policy 29 provides that REALTORS® are subject to disciplinary action with respect to all of their activities. To assist Hearing Panels in the appropriate interpretation and application of Standard of Practice 10-5 of the Code of Ethics and Statement of Professional Standards Policy 29, the Professional Standards Committee of the National Association provides the following for consideration by Hearing Panels when asked to determine whether a violation of Article 10 as supported by Standard of Practice 10-5 has occurred. While the overall focus of Standard of Practice 10-5 is on what might be loosely termed “offensive” or “discriminatory” speech, Hearing Panels should be clear that the Standard of Practice is narrowly limited to conduct related to the requirements of equal professional service of Article 10. Hearing Panels should also be fully aware of the nature and scope of the Standards of Practice under Article 10 and their relationship to fair housing law as described in Appendix III to Part Four of the Code of Ethics and Arbitration Manual. As described in Appendix III, Article 10 and its Standards of Practice fully integrate the five basic fair housing obligations that were recognized by NAR’s Code of Fair Housing Practices before it was sunset. Hearing Panels should note that while all of the Standards of Practice under Article 10 inform them as to the interpretation and application of Standard of Practice 10-5, Standard of Practice 10-3 is particularly analogous in its application to discriminatory speech in advertising based on the protected classes of Article 10. Standard of Practice 10-5 is not 12

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focused on types of speech that might be subjectively deemed “offensive” or “discriminatory” by one person and not another. The Standard of Practice is based on very particular types of speech that are directly connected to the protected classes of race, color, religion, sex, handicap, familial status, national origin, sexual orientation or gender identity under Article 10. Only the use of harassing speech, hate speech, epithets and slurs based on the protected classes of Article 10 are prohibited. The terms “harassing speech,” “hate speech,” “epithets” and “slurs” can be commonly understood by use of a dictionary as well as other easily available references. For example, NAR’s Code of Conduct and Anti-Harassment Policy clearly defines “harassment” and “sexual harassment.” Harassment includes inappropriate conduct, comment, display, action or gesture based on another person’s sex, color, race, religion, national origin, age, disability, sexual orientation, gender identity and any other protected characteristic. Examples of harassment include, but are not limited to: epithets, slurs or negative stereotyping; threatening, intimidating or hostile acts; denigrating jokes; and the display or circulation of written or graphic material that denigrates or shows hostility toward an individual or group based on a protected characteristic. “Sexual harassment” includes not only physical acts but also includes verbal and non-verbal/non-physical acts.

Sexual harassment can be:

• Verbal: Sexual innuendoes, suggestive comments, jokes of a sexual nature, sexual propositions or threats.

• Non-Verbal: Sexually suggestive objects or pictures, graphic commentaries, suggestive or insulting sounds, leering, whistling or obscene gestures. Hearing Panels should look to this existing information on harassment to determine whether harassing speech has occurred and then look to determine whether the harassing speech was based on one of the protected classes. In similar fashion, Merriam Webster’s Dictionary defines “hate speech,” “epithets” and “slurs” as follows: Hate speech: speech that is intended to insult, offend or intimidate a person because of some trait (as race, religion, sexual orientation, national origin or disability). Epithet: (1a) a characterizing word or phrase accompanying or occurring in place of the name of a person or thing; (b) a disparaging or abusive word or phrase, Slur: (1a) an insulting or disparaging remark or innuendo: ASPERSION; (b) a shaming or degrading effect: STAIN, STIGMA. Again, Hearing Panels must look to whether the hate speech, epithet or slur is based on race, color, religion, sex, handicap, familial status, national origin, sexual orientation or gender identity and not on some other nonprotected characteristic. Under Statement of Professional Standards Policy 29, REALTORS® are subject to the Code of Ethics’ standards in all of their activities. Thus, a violation of Article 10, as supported by Standard of Practice 10-5, can occur when a REALTOR® uses harassing speech, hate speech, epithets and slurs based on the protected classes in any media or context, regardless of whether related to their activities in the real estate business or their identification as a REALTOR®.

ILLINOIS REALTOR® April 2021

GROW YOUR BUSINESS THIS SPRING Tips and tools to get a jump-start on a busy selling season By Lee Nelson

Business has been booming in the Illinois housing market, and it is not unusual for Sheena Baker to see multiple offers on almost every deal. “Most homes are gone in the first 48 hours,” says Baker, a residential and commercial broker at CarMarc Realty in Aurora. “There are just so many people bidding on the same properties while we have 50 percent less inventory than last year.” Whether you work in real estate in a small town, big city, with a team or all by yourself, some aspects of real estate have changed because of the pandemic, low inventories and even lower interest rates. As we head into what is expected to be a busy spring selling season, now is a good time to rethink, retool and refresh some of your tactics so you hit the ground running.

Sheena Baker 14

www.IllinoisRealtors.org

4 steps to grow your business online

Here are four easy ways real estate agents can make a splash on social media, says Jen Conrad, founder/president of the Conrad Company in Peoria. 1. Focus on one social media platform, such as LinkedIn, Facebook or Instagram. Get good at it. You don’t have to be everywhere. 2. Offer value every single day. Serve your audience through tips such as “how to sell your house during the pandemic” or “how to stage your house.” 3. Narrow your niche down to your ideal clients and what you have to

Show your value

“There’s a lot of pressure on the consumers to say, ‘I don’t need you (a REALTOR®),’ ” says Chris Read, designated managing broker/owner of CR REALTOR® in Woodridge. She also is a trainer, consultant and instructor at her business, CR Strategies LLC. “They tell us buyer agents don’t do a lot to earn their money anyways.” REALTORS® need to show clients the value they offer by helping them make the best decision for their particular needs in this market, she adds. Read emphasizes the importance of going to closings. She’s worried agents are taking shortcuts because of the pandemic and attendance at closings has been limited. That trend began happening before COVID-19 entered the picture. “Never before has there been more reason to make sure our value is real,

offer them. Craft your message to them. When you try to talk to everyone, your message gets cloudy. (Be careful that your niche is inclusive and diverse). 4. Remember social media isn’t a replacement for building relationships. Once you connect online, send private messages or call by phone. Serve people whether they are going to be clients or not.

sincere and communicated,” she explains. “Every time we shorten our services, we are cutting into our value proposition.” Baker shows her value by being consistent and staying in constant communication. “Follow-up, giving speedy responses and becoming very educated in this business all play important parts,” she explains. “You also need a good CRM (customer relationship management) system.” She switched her system last year to make sure she was being more inclusive, and everyone she came into contact with was put in the system. “It was tedious, but so needed,” she said. She improved her business, too, by hiring an office manager in early 2020, and has seen a 67 percent increase in closings.

Get a coach and get efficient on social media

Chris Read

“Every coach has a coach,” says Jen Conrad, founder/president of the Conrad Company in the Peoria area. She helps small businesses and entrepreneurs with branding, social media, consulting and web design.

Nick Libert Nick Libert

Building Better REALTOR®to-REALTOR® Relationships “Real estate is a stressful business, but you can’t take it out on other parties,” says Nick Libert, CEO/ owner of EXIT Strategy Realty in Chicago. Building mutual trust and respect for other REALTORS® can make life so much easier and your business stronger. When negotiating on behalf of your clients, don’t take their reactions out on other REALTORS®. Negotiating can create hostile environments, but you must be respectful. Connecting and sharing ideas with other agents can boost one’s business, he said. Sharing information can be for the mutual good. “What’s mine is mine doesn’t work in this business,” he says. Be collaborative, be friendly, be organized and strive to make this business more professional. ILLINOIS REALTOR® April 2021

5 strategies to help your buyers stand out in a competitive market 1. Make the offer as clean as possible. The offer should have fewer contingencies attached to the sale (subject to inspection), says Nick Libert, CEO & owner, EXIT Strategy Realty, Chicago. 2. Focus on strength of financing. I write a letter explaining my background, my ease of communication, and the same for my lender. Libert explains. “We let sellers know there are whole teams

behind these buyers.”

3. Prove sellers’ financial qualifications. Always encourage lenders to call sellers and their REALTORS® to explain their clients’ financial status, their great jobs and credit payment history records. 4. Put in higher earnest money deposits. Most offers include a small amount of money, typically 1 to 2 percent of the purchase price.

4 tips for writing killer listing descriptions

After writing hundreds of property descriptions, it’s tough to make another threebedroom, two-bath house stand out. But, painting pictures that entice action, evoke emotion and hopefully generate interest are worth it. 1. Be creative. Get away from the stale, expected MLS narratives and choose the best adjectives and verbs. 2. Avoid redundancy. Don’t repeat information already noted in the statistics. Let the features soar with descriptions, such as: “newly laid engineered hardwood floors can withstand clogs, dogs and anything else you throw at them.” 3. Flaunt finishes, upgrades and remodels. If the master bedroom sparkles and shines like an expensive spa resort, say it. 4. Tell a story about the property. Describe what life will be like if this property becomes a home. Paint a picture. 16

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Jen Conrad

“The world is a very different place now. It has forced people to grow their business online and to provide more online,” she adds. But social media isn’t a replacement for building relationships, she says. It’s a good place to connect, but you need to take time to get to know people. The goal is to be able to take it into a private message or private phone call. “Service people whether they are going to be a client or not,” she explains. Conrad had been in real estate for a few years when the downturn occurred in the late 2000s. Now she teaches REALTORS® and other entrepreneurs to show who they are when building an online presence. People want to see behind the scenes, your interactions with family and friends, doing workouts and balancing work with life, she says.

Concentrate on existing relationships

“I tell my agents not to churn and burn,” says Nick Libert, CEO & Owner of EXIT Strategy Realty in Chicago. “You won’t

But those who truly want houses can go higher than normal.

5. Get to know your local agents. Raise your reputation as an agent who gets deals done and on time, Libert adds. Often, sellers’ agents will encourage clients to go with certain buyers because they know what kind of agent they will be working with and that gives credibility to your buyers.

need 1,000 contacts if you go deeper with the contacts you already have.” Build better relationships and offer more interaction and touches to those already in your sphere. He says it doesn’t cost a lot of money. “You help their dreams happen, and they help you with yours. You build a business on personal relationships. You aren’t chasing strangers and putting yourself in danger,” he adds. It takes between five and seven total touches to build a relationship. A monthly touch with an item of value can foster that relationship. If you are new and don’t have a lot of contacts, you have to take the time to follow up your circle of trust. You already have them on your phone, in your CRM, or on social media, Libert explains. Make sure to categorize your relationships according to what they need, starting from the bare minimum, such as one touch a month. Others looking for homes or investments may need to be reached every other day. Here are more tips on making your business better: u Lead generation is huge. “There needs to be a rainmaker on your team, focusing on lead generation to bring leads in and hand them out to the buyer agents in this marketplace,” Read says. “It’s a fast moving target.” Public portals where agents have been buying leads, are now becoming their own brokerages

Take advantage of REALTORS Property Resource®

with agents. Lead generation sources are changing. u Give neighborhood statistics. People want to know what sold in their area and other data, Libert says. Consumers want overall market trends, and it helps that you know what you are talking about. u Get a good CRM program. For many years, surveys have shown people choose REALTORS® by referrals from neighbors, friends and family, Read explains. “It’s a relationship business.” Keep in touch

with people even if they aren’t buying or selling for a while. They know people who know people. u Stay in tune with what’s happening in the world and locally. “What problems can you solve for others?” Conrad adds. “Things are continually changing, and you can address certain issues and use your social media space to be a light and inspiration.”

A comprehensive database awaits you through the REALTORS Property Resource® (RPR®). As a member of the National Association of REALTORS®, you have free access to the analytics and client-friendly reports for all aspects of real estate including commercial, residential, appraisals, brokers, associations and MLSs. You can research zoning, permits, mortgage and lien data, schools and foreclosures.

About the writer: Lee Nelson is a

freelance writer in Illinois. She can be reached at leenelson77@yahoo.com.

5 ways to help clients clean up their credit

REALTORS® can help clients improve credit scores. Karen Ziska, sales manager and mortgage loan originator at Homebridge Financial Services in Schaumburg, offers five suggestions to make lenders happy. 1. Work with the right loan officer. Find someone who can provide a full mortgage analysis and can educate clients about utilization, ratios and payment histories. 2. Disputed items could cause inaccurate credit scores. Lenders may require loans to be reviewed with another level of scrutiny. Remember medical collections are not factored into debt ratios. 3. Settle credit judgments. Some lenders may accept repayment plans once three payments have been made to resolve an issue.

4. Clients with low credit scores may need to lower their utilization, open new credit card accounts or add tradelines to their reports. Tradelines can be purchased to increase credit scores. Ensure that your clients understand their debtto-income and their housing ratios.

Karen Ziska 5. Clients should always keep their payments consistent and on time. This is not the time to slough off or forget monthly Visa payments. To make things easier, clients can set up automatic payments through their checking accounts or one credit card.

ILLINOIS REALTOR® April 2021

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April is Fair Housing Month:

Find resources to be an advocate for fair and equitable housing year round The more you understand and advocate for fair and equitable housing, the better you can serve your clients, your business and the overall housing market. April is officially Fair Housing Month, but you can use a number of resources and programs to advance fair housing all year.

First, test your fair housing knowledge in Fairhaven

Fairhaven is a free, online simulation program from NAR that allows you to test your knowledge and compliance with fair housing principles through a variety of scenarios in the fictional town of Fairhaven that have been inspired by real fair housing cases. Playing the role of agent, you’ll have 60-100 minutes to close four real estate deals while encountering different examples of discrimination including race, national origin, disability, familial status, sexual orientation and gender identity. The immersive program allows you to identify, prevent and address discriminatory practices in real estate. https://FairHaven.Realtor

Second, learn to recognize and correct your own implicit bias

Even with the best of intentions, you may unconsciously associate stereotypes to different groups or have implicit biases you aren’t aware of and that can affect how you deal with clients and colleagues. Complete the 50-minute implicit bias training video from NAR, “Bias Override: Overcoming Barriers to Fair Housing,” which runs you through scenarios. bit.ly/NAR_BiasOverride

Third, earn your At Home With Diversity® certification this year

Take this one-day certification course to learn more about working in the diverse, multicultural U.S. real estate market. You’ll learn diversity sensitivity, subtleties of the fair housing laws, insights into cultural differences and get tools for expanding your business with international clientele. bit.ly/AtHome WithDiversity

Fair Housing Resources from Illinois REALTORS®

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. Illinois REALTORS® is a leader in providing training on fair housing rules. Find the following fair housing-related courses in our store catalog: Core 1901, Core 1903, FH 302 – Assistance Animals and Fair Housing and FH 302 – Diversity: Your Kaleidoscope of Clients bit.ly/FairHousing_ Courses. The National Association of REALTORS® also offers a variety of REALTOR® resources at www. NAR.Realtor/FairHousing

Illinois REALTORS® Diversity and Inclusion Initiative

Illinois REALTORS® is committed to increasing equality in housing and diversity in the industry. Through its Diversity and Inclusion Initiative, real

estate firms and offices can apply for grants to bring in experienced diversity trainers. The initiative also increases the number of Illinois Minority Real Estate Scholarships to encourage more minority students to pursue a career in real estate.

www.IllinoisRealtors.org/Diversity ILLINOIS REALTOR® April 2021

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EDUCATION Guidelines for a successful license renewal Need CE?

See page 20 for Broker Management CE packages that meet the state's license renewal requirements. Illinois REALTORS® offers a variety of online continuing education courses, from individual 1-hour courses to 24-hour course packages.

Have a question?

Have a question? Contact an Illinois REALTORS® Education Specialist by phone, email or online chat, Mon.-Fri., 9 a.m. -4:30 p.m. u Phone: 800-523-5077 u Email: Education@ IllinoisRealtors.org u Chat: IllinoisRealtors.org/ Education

Young Brockhouse

Vice President, Professional Development

With the managing broker license renewal deadline mere days away, make sure your license is in good standing.

requirements and ensure that you take the correct courses and number of hours.

Double-check your requirements

Renew early

Most managing brokers are required to take 24 hours of continuing education (CE) to renew their licenses. However, if this is your first renewal the requirements are based on the managing broker’s original license date and the date of completion of managing broker pre-license education. See the managing broker license renewal chart on page 8 for more information about requirements. If you renew your license without meeting your CE requirements, you could face significant financial penalties and possibly lose the ability to practice.

If you are not certain, ask

Our Education Specialists are happy to discuss your license renewal

Don’t wait! Managing broker license renewal applications must be submitted on or before April 30. There are different options available to renew, however renewing online is the fastest and simplest way to renew your license. Completing the process early will help ensure there is no interruption in your ability to practice.

Watch your email

The email notification that your license renewal is complete will come from IDFPR (FPR.notice@illinois.gov). You may call IDFPR at 1-800-560-6420 to inquire about your license renewal status or log into the license portal to check the status and print your renewed license. www.idfpr.com/ Applications/GetMyLicense. ILLINOIS REALTOR® April 2021

AT THE CAPITOL Full spring session agenda on tap for COVID-seasoned legislature By Greg St. Aubin, Senior Vice President, Governmental Affairs

Springfield Governmental Affairs Team

Greg St. Aubin

Senior Vice President, Governmental Affairs

After all but canceling the 2020 spring session during COVID-19, the Illinois General Assembly, like the rest of us, has learned to adapt and legislators are making plans to tackle a wide array of issues with both in-person sessions in Springfield and virtual meetings. Let’s take a look at the key issues Illinois REALTORS® will be advocating this spring:

Disaster proclamation, eviction moratorium and rental assistance program Betsy Mitchell

Senior Advisor, Governmental Affairs

Jim Clayton

Manager of State Government Affairs

Alex Finke

Manager of Advocacy Programs

www.IllinoisRealtors.org

We had another intense battle during the lameduck legislative session in January, with tenant groups trying to statutorily extend the ban on evictions to the fall of 2022, and to use the COVID-19 crisis to extract other restrictions on housing providers. Illinois REALTORS®, conversely, advocated for ending the moratorium by law THIS spring, and to do so in an orderly fashion by giving property owners a financial incentive for renewing leases and keeping tenants in place. A meeting seeking to cobble together an agreement was held with Illinois House Speaker Michael Madigan on his

final day in power, but the legislation did not pass both chambers. We now proceed anew with the 102nd General Assembly, 14 new legislators, a new set of rules and committee structures in each chamber, new Speaker in the House Chris Welch (D-Hillside), and new Senate Republican Leader Dan McConchie (R-Hawthorn Woods). We have had discussions with the Illinois Housing Development Authority (IHDA) to discuss details of the state’s distribution of the $566.2 million allocated to Illinois in federal Emergency Rental Assistance Funds meant to pay down back rent owed by tenants. An additional $268.5 million in rental aid was distributed directly to 10 large local units of government in Illinois for local distribution. As the debate goes on, Illinois REALTORS® will tenaciously defend and protect consumers and housing providers, and advocate for policies that will help everyone across the housing spectrum emerge from this challenging time with a positive outlook. We will also continue to thwart efforts to enact harmful policies some groups will try to attach to any relief

legislation that advances.

Affordable housing vs. anti-housing agendas

A top priority of Illinois REALTORS® will be advocating for an agenda that prioritizes the need for more housing by removing or reducing regulatory barriers and by leading the way on implementing integrative housing policies that attract rather than repel investment in communities. We crafted a specific legislative initiative towards these ends which provides for creative and targeted income tax, property tax and sales tax incentives that will foster the creation of new affordable housing units and keep affordable units affordable. Read the State Capitol Report for updates on this initiative.

Rent control, sealing of evictions, no application fee, source of income As mentioned above, we will continue to have policy battles with those who advocate for a more confiscatory, punitive and government-controlled approach to housing policy. One of the new committees this year, the House Housing Committee, will be chaired by Rep. Will

Local Governmental Affairs Directors (GADs) in your communities

Guzzardi (D-Chicago) and vicechaired by Rep. Delia Ramirez (D-Chicago). Rep. Guzzardi is the legislative champion of lifting the state’s ban on local rent control ordinances, and Rep. Ramirez sponsored legislation last spring and during the January lame-duck session that would have cancelled rent and extended the eviction moratorium well into 2022. No doubt we are in store for some interesting and challenging committee discussions. But we have an ongoing dialog with these lawmakers, and as always, we will come prepared to strongly advocate from our point of view with the professionalism, respect and constructive approach that has served us well over the years.

Cook County tax assessments

Cook County Assessor Fritz Kaegi will continue his efforts to change the way commercial property is assessed for property tax purposes. We have had some concerns in the past, but discussions will be ongoing. Given the hit that commercial real estate has taken because of COVID-19, we want to ensure we are not heaping excessive burdens on commercial property.

Wage payment and collection act

One of our most important jobs as your advocates at the state

and local levels is ensuring that your business is not disrupted, whether intentionally or not, by legislative, regulatory or judicial means. Along these lines, we are pursuing legislation this spring that will ensure the ability of our members to function as “independent contractors” is not jeopardized.

Clean energy

We are currently delving into a 900-page bill that seeks to enact the Clean Jobs Equity Act. This is a major, comprehensive clean energy and energy efficiency initiative that will have farreaching impact throughout society, including on our state’s housing. The bill appears to establish ambitious new energy efficient building standards for residential and commercial new construction and renovation. Stay tuned to the State Capitol Report, our blog and other publications for further developments as they occur.

Opportunities to participate

We need YOU to help us succeed in our advocacy efforts! We will be in touch, through our multiple communications platforms and your local Governmental Affairs Director (GAD), on how you can get and stay involved in these and other critical public policy issues that affect your industry.

Mike Scobey

Director of Local Advocacy / Oak Park

Collin Cisco Central Illinois

Kristie Engerman Mid-Illinois / Peoria Quincy / Mid Valley

Tom Joseph

Ron Deedrick Metro East / Southern IL

Neeley Erickson

Northwest IL / Heartland Rockford

Jeff Merrinette

South Suburban Cook / Kankakee Area

DuPage / Northern Cook

Adriann Murawski

Joe Roth

Cook County Government North Shore / Lake County / West Towns ILLINOIS REALTOR® April 2021

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OUTREACH Celebrate our heritage all year to keep us united, strong and resilient

Gideon Blustein

Director of Member Outreach

Illinois REALTORS® will celebrate diversity throughout 2021 by focusing on its local Industry Partners. Our Industry Partners include the: Asian Real Estate Association of America (AREAA), Dearborn REALTIST® Board, National Association of Hispanic Real Estate Professionals (NAHREP), National Association of Gay & Lesbian Real Estate Professionals (NAGLREP), Women’s Council of REALTORS® (WCR) and the Veterans Association of Real Estate Professionals (VAREP). These organizations have rich histories, economic and community accomplishments and policy agendas that encourage financial stability through

property ownership. Americans annually celebrate the history and accomplishments of unique cultures and ethnicities during heritage months, and this year Illinois REALTORS® will encourage members to join partner organizations and learn about their histories. Through blog and other social media posts, we’ll all have the opportunity to know established and future industry leaders.

“If you are not intentionally inclusive, then you are unintentionally exclusive,”

FEBRUARY Black History Month

MARCH Women’s History Month

MAY Asian Pacific-American Heritage Month

- Nate K. Johnson, president of Real Estate Solutions Redkey Realty Leaders in St. Louis.

To learn more about diversity resources and initiatives for members and brokerages, visit our Diversity and Inclusion page: www.IllinoisRealtors. org/Diversity. Celebrating diversity all year makes us united, strong and resilient.

JUNE LGBTQ Pride Month

SEPTEMBER National Hispanic Heritage Month

NOV. 11 Veterans Day

ILLINOIS REALTOR® April 2021

Build your brand, grow professionally and keep diversity and inclusion top of mind Insights and straight talk from three Illinois REALTOR® leaders

Sarah Ware

Ware Realty Group, Chicago

I can figure it out. I can ask people along the way.’ I don’t feel like you’re working for your client’s best interest if you do that.”

Build a brand that is true to who you are. Know when to stay in your own professional lane. Treat EVERYONE fairly and equitably. That was just some of the advice REALTORS® Sarah Ware, Brian Kwilosz and Megan Oswald shared recently with members during an Illinois REALTORS® forum discussion on practical ideas for growing a real estate business. Here are some of the takeaways you can incorporate in your own business and career:

Network for fun and knowledge

Oswald: “People think, ‘well, why am I going to go somewhere and network with other REALTORS®?’ Well, this is the reason why: so you can learn from them, right? And then you have that knowledge and then you can also refer if need be. It’s definitely very important to get involved in networking in this industry.”

Stop trying to do it all

Brian Kwilosz

EXIT Real Estate Partners Downers Grove

Megan Oswald

Fulton Grace Realty, Chicago

Kwilosz: “It’s ultimately taking care of your client, your customer, and minimizing your liability and risk. And the best way to do that is to build your network of professionals who know more than you do. Everybody benefits.”

Kwilosz: “I think what we’re seeing is—especially with newer agents—they want to do everything. But it’s important as owners, as designated managing brokers, that we step back and say, OK, let’s stay within our wheelhouse. Stay where you are comfortable and represent the client in the best way possible so that they are taken care of. It’s important to kind of take a step back and focus.

Building your brand is more than posting on social media

Ware: “What does it mean to build your brand? It’s an overused phrase nowadays. It doesn’t mean starting Instagram and making some videos. For me, part of it is what your clients remember you as (thorough, knowledgeable about the market). What makes you special helps that branding. And making sure your branding is consistent.”

Oswald: “Whether it’s commercial, property management or residential, I do believe you should have the knowledge of all of it but have your referral partners. Have somebody who is an expert because you are going to do your clients a disservice if you try just to make it happen. (Don’t go into it like) ‘well, yeah,

4 key areas for being united, strong and resilient 1. Fostering the reach of the association’s Diversity & Inclusion Initiative through training grants, more minority scholarships and affordable housing legislation;

2. Advocating for housing providers and property owners at state and local levels of government; 26

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3. Fighting on behalf of members against unwarranted tax increases and regulations while trying to secure immediate housing provider relief and increased affordable housing at the state and local government levels; and

4. Continuing to offer quality industry courses and developing new prelicense, post-license and continuing ethics and professionalism education courses through our Education Department.

Oswald: “It’s what comes top of mind when someone thinks about you as an agent, as a professional, as a businessperson in this industry. It’s really important to build that brand. Sometimes it can come to you instantly and right away. Sometimes I feel like it could take years for you to figure out what you want your brand to be and what you identify as.”

Make diversity and inclusion with clients and colleagues a priority

Oswald: “Just remember when you’re building that brand to continue to follow policy and procedures throughout the entire process. Treat everybody you’re working with fairly

and equally. You have to remember all of that is part of real estate.” Kwilosz: This is a conversation I’ve been having recently...if I’m sitting in a room, whether I’m on a board of directors or a committee or a brokerage, and I look around and everybody looks exactly like me, we have a problem. Ware: “Right. I think people realize a lot of these rooms are the same. There’s no diversification of ideas and thoughts. And treat consumers consistently. People are always nervous about diversity and getting in trouble, but if you’re consistent, there is nothing to worry about.”

This conversation from the Business Issues Forum was edited for space and clarity. You can watch the full video discussion between Ware, Kwilosz and Oswald and find more Tips for Thriving in 2021 at www.IllinoisRealtors.org/ROI/ Tips-for-thriving-in-2021

ILLINOIS REALTOR® April 2021

REALTORS® challenge an inspection program in Sauk Village By Mike Scobey, Director of Local Advocacy Several Illinois municipalities have “point of sale” home inspection programs. Sellers of single-family homes must contact their municipalities when they list their homes for sale or rent. The municipality 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 transactions and allow due process for property owners. In December 2019, Illinois REALTORS® and the Mainstreet Organization of REALTORS® initiated a lawsuit against Sauk Village (southern Cook County) after the village imposed a set of procedures that created new burdens for sellers and buyers. The village started to use private home inspectors for these inspections, and REALTORS® and sellers reported their standards were unclear and, at times, seemed capricious. In addition, the village had no contractual agreement with the inspection company, making standards on performance and accountability even more unclear. The lawsuit was filed after REALTOR® representatives attempted several times to get clarification and to amend existing Code to assure clear procedures, the need for consent and due process (e.g. an owner’s right to appeal a determination made by an inspector). The National Association of REALTORS® (NAR) helped with the lawsuit by providing financial assistance. Over the past year, several amended complaints in the lawsuit and several sessions of negotiation between municipal officials and REALTOR® representatives, including local 28

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Governmental Affairs Director Tom Joseph, an agreement was approved by the village on Jan. 26, 2021. With this agreement, Sauk Village has agreed to specific terms to avoid another amended complaint and to have the lawsuit dismissed. The village agreed to: u Make inspection checklists public to show the items inspectors will be reviewing/checking for code compliance. This will be used for both for-sale properties and rental units. u Sign contracts with an inspection company to assure clarity on pre-sale and pre-rental inspection standards. u Seek consent from owners before properties are inspected. u Establish a formal process so owners can appeal inspectors’ decisions to the community development director. After more than a year of lobbying and litigation, the property rights of owners, buyers, sellers and renters were improved through negotiations with village administrators.

Tom Joseph

Cook County Board approves tenant-landlord ordinance

After months of detailed negotiations, a Residential Tenant Landlord Ordinance (RTLO) was adopted at the Jan. 28 Cook County Board meeting. While most of the law takes effect June 1, a provision that prohibits lockouts started immediately. REALTORS® opposed the ordinance but were able to obtain many changes to improve it. The ordinance includes: u exemptions for owneroccupied buildings of six units or less, u exemptions for singlefamily homes and single condominium units when owners and family members resided on the property during the previous 12 months (does not include properties owned or managed by companies), u move-in fees if reasonably related to landlords’ costs for tenants moving in, u $10 late fees for rents of $1,000 or less (instead of $1,500, as originally introduced), u 5 percent late fees for rents above $1,000, u shortened lease renewal notices from 90 days to 60 days, u eased restrictions on abandoned property storage, u a “right to cure” provision of two business days for housing