Illinois REALTOR® July 2019

THE VOICE FOR REAL ESTATE IN ILLINOIS

JULY 2019

NAVIGATING A COOLER MARKET Eight ways to keep your business robust Mortgage financing changes you need to know Risks and benefits of telemarketing

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THE OFFICIAL PUBLICATION OF ILLINOIS REALTORS®

ILLINOIS REALTOR® July 2019

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TABLE OF CONTENTS JULY 2019

04 Inside Track

REALTORS® share their best marketing advice

05 Leadership Message Continuity at forefront of search to name new CEO for Illinois REALTORS®

06 Quick Takes

• International commercial buyers favor Illinois

Mortgage financing changes you need to know

• New Core CE requirements • Six REALTORS® lauded for reaching RPAC milestones

10 Legal

Inspection reports and the rules of disclosure

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18 Advocacy

REALTOR® victories from the spring legislative session

22 RVOICE

The impact of ‘crime-free housing’ policies

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Navigating a cooler market Eight ways to keep your business robust

25 Disruption is here

Embrace the changes and adapt your business

27 Outreach

You belong. Make the time.

You’re welcome.

29 Ethics

Capitol Conference highlights

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Infographic

Survey reveals what members value most

30 Community

Follow us:

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Risks and benefits of telemarketing

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INSIDE TRACK

ILLINOIS REALTORS®

THE VOICE FOR REAL ESTATE IN ILLINOIS

“What’s the best marketing advice anyone ever gave you?”

Never underestimate the power of "geo-farming" with postcards! And that was so true. Some of the best listings (yes, listings!) I’ve gotten have been from postcard mailers that homeowners have held onto. Now, with Facebook Ads, I can send them physical mailers to their mailbox and market to them when they log into Facebook!

Rachel Scheid

Baird & Warner North Center in Chicago

The best marketing advice I ever got is to embed my personal life with real estate so it becomes a lifestyle. I show up at community events, throw parties, organize my kid’s sports, host barbecues and other activities. Even surfing, boating and playing soccer with friends gets me out in front of people in the community and helps me interact with more people who become my friends and clients forever.

Luigui Corral

RE/MAX American Dream in Chicago

The best advice I was ever given was to write personal notes to my current, past and potentially future clients. People feel valued that you would take a personal approach to their lives outside of the home-buying process. Showing that they are “more than just a transaction” sets you apart from your competition and your clients will tell everyone they know, thus creating referrals for you. The lasting impact is immeasurable as this has built quality relationships both personally and professionally.

Teri Shepherd

RE/MAX Traders Unlimited in Peoria

*Answers provided are the personal opinions of the members questioned and do not constitute endorsements or sponsorship by Illinois REALTORS®.

Do you have a question you would like answered by your peers?

Email your question to ssievers@IllinoisRealtors.org

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2019 OFFICERS President-elect Ed Neaves eneaves@thesnydercompanies.com Treasurer Sue Miller, ABR, BPOR, CRB, CRS, GRI, ePro, PMN, SFR, SRS smiller001@aol.com Immediate Past President Matt Difanis, ABR, CIPS, GRI matt@mattdifanis.com Chief Executive Officer Gary Clayton, CAE, RCE Deputy Chief Executive Officer Jeffrey T. Baker Executive Vice President Kristen Butcher, CMP Vice President, Communications Jon Broadbooks Senior Editor Stephanie Sievers Content Marketing Specialist Bill Kozar Graphic Designer David Hine For advertising information contact Advertising & Sponsorship, 217-529-2600, info@IllinoisRealtors.org The ILLINOIS REALTOR® (ISSN 0744-221) is published four times a year during the months of January, April, July, and O ­ ctober by the 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: The ILLINOIS REALTOR®, Post Office Box 19451, Springfield, Illinois 62794-9451, 217-529-2600.

Opinions expressed in any signed articles of the ILLINOIS REALTOR® are those of the author and do not necessarily represent the opinions of the Illinois R ­EALTORS®. 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®.

VOLUME 56: NUMBER 3 Copyright © 2019 Illinois REALTORS® All rights reserved. www.IllinoisRealtors.org info@IllinoisRealtors.org blog.IllinoisRealtors.org

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LEADERSHIP MESSAGE Continuity at forefront of search to name new CEO for Illinois REALTORS®

Ed Neaves

2019 President-elect

u Get

to know more about Jeffrey T. Baker on page 7.

For more than a century, Illinois REALTORS® has provided uninterrupted service to its members.

That hasn’t always been easy.

There have been world wars, severe economic downturns and a business environment that is in constant change.

Through it all, there has been focused volunteer leadership, and since 1954 there has always been a fulltime staff leader to make sure continuity of service is provided.

Notably, Illinois REALTORS® has only had three full-time CEOs in the past 65 years.

That’s an amazing track record for any association, especially one faced with such a dynamic marketplace.

As many of you know, Gary Clayton will end an outstanding 33-year career as CEO of Illinois REALTORS® when he retires at the end of 2020.

With that date quickly approaching, I chaired a committee to find the next CEO, joined by Treasurer Sue Miller, Immediate Past President Matt Difanis and former association presidents Mike Drews and Doug Carpenter.

Throughout this nationwide search, we focused on hiring a new CEO who would ensure

growth in services to our 50,000 members, who would further our outreach to an increasingly diverse membership and who would be a fierce advocate for the real estate industry and private property rights.

After months of review and several rounds of interviews, we are pleased to announce that Jeffrey T. Baker, who had served as the association’s associate general counsel and director of Legal Services, was selected as deputy CEO. This will place him in line to take over from Gary in 2021.

Jeff brings to the role a deep knowledge of the association and how it works to serve members, particularly in the areas of advocacy and legal services. He understands the role real estate plays in the overall state economy, and he champions a business environment that benefits all our members and their clients.

Change is inevitable in any business. Managing that change well is critical.

We are confident that Illinois REALTORS® is positioned to deliver for our members in the years ahead. Making this leadership transition as smooth as possible over the next 18 months is a key component to achieving that goal.

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QUICK TAKES Illinois a hot spot for international commercial buyers

t Illinois is the second most popular state for foreign buyers looking to purchase commercial sites with 13 percent of the market, according to the NAR report, Commercial Real Estate International Business Trends 2019. Illinois also ranks as the No. 2 destination on the seller side, too, with 14 percent of that market.

Find the full commercial study at: bit.ly/NAR_ForeignBuyers

NAR: Typical homeowner gained $9,500 in home equity over last year

Higher home prices means improved home equity for homeowners. Over the past year, the typical U.S. homeowner has accumulated nearly $10,000 in additional home equity, says National Association of REALTORS® Chief Economist Lawrence Yun. While rising home prices are a boon for owners, they can negatively impact affordability for buyers. There are, however, markets that give consumers more buying power.

NAR ranks Decatur, Ill., as the lowest-cost metro with a median home price of $80,800 in the first quarter of 2019. bit.ly/10K_Equity

It’s been 175 years since Abraham Lincoln purchased his first – and only – home at Eighth and Jackson streets in Springfield, Ill. To celebrate, Illinois REALTORS® sponsored an anniversary celebration at the Abraham Lincoln Presidential Museum featuring historical reenactors, special Lincoln home artifacts and free admission for Illinois REALTORS®. Watch a video to learn more about what home ownership meant to the country lawyer who would later become one of our most revered presidents.

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Green honored with 2019 Rhino award

Champaign County Association of REALTORS® Association Executive Linda Green has been named this year’s recipient of the Margery Shinners Rhino Award honoring association executive leadership. Green has been with the Champaign association since 1978.

Baker named deputy CEO of Illinois REALTORS®; on track to become CEO in 2021

Jeffrey T. Baker was named deputy CEO of Illinois REALTORS® on April 26, a move that puts him on track to take over in 2021 for CEO Gary L. Clayton, who has led the association for more than 30 years.

Baker, 38, of Springfield will become the fourth full-time association leader in its 103-year history.

He had served as the Illinois REALTORS®’ associate general counsel, and has worked in various capacities with the association since 2014.

Baker is a graduate of the University of Illinois (Urbana-Champaign), with a B.A. in Political Science, a Masters degree in Public Policy from Georgetown University (Washington, D.C.), and a J.D. from Loyola University Chicago School of Law. His experience includes involvement in numerous political campaigns for governor and U.S. Congress.

Baker’s prior experience also includes working for his own law practice and for Sorling Northrup Law Office in Springfield, Ill. Baker lives in Springfield with his wife, Kim, and three children.

Six REALTORS® lauded for reaching RPAC milestones

Congratulations to four REALTORS® who reached the $25,000 milestone for lifetime aggregate contributions to the REALTORS® Political Action Committee (RPAC).

Matt Difanis

Co-owner of RE/MAX Realty Associates with offices in Champaign, Mahomet and Monticello

Jim Merrion

Managing broker with Merrion Realty Systems in Elgin and director of strategic initiatives at Showing Time

Mabél Guzmán

Broker with @properties in Chicago

Dan Wagner

Senior vice president for government relations for the Inland Real Estate Group of Companies

Two Illinois REALTORS® reach RPAC $50,000 milestone

New Core CE requirements in effect July 1, 2019

Due to changes in the license law, the new four-hour Core course requirement will be required following the June 30 expiration of all CE courses. The new four-hour course for brokers and managing brokers will be available July 10. The new single core curriculum required for Leasing Agent licensees is in the process of being developed. Learn more about how the new requirement affects your license renewal requirements: bit.ly/CE_Changes

Daniel L. Goodwin

Chairman and chief executive officer of the Inland Real Estate Group of Companies

Frank Wehrstein

Managing broker of Dickerson and Nieman in Rockford

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LEGAL UPDATE The risks and benefits of expanding your real estate practice through telemarketing

Anneliese Fierstos Illinois REALTORS® Legal Hotline Attorney

Telemarketing and “cold-calling” can be useful and inexpensive ways to make your business more recognizable.

However, this type of marketing should be approached with caution. There are several rules in place which protect the public from the hassles of dealing with unwanted telemarketing, and the penalties for violating these protective acts can be steep.

Telephone Consumer Protection Act Signed into law in 1991, the Telephone Consumer Protection Act (TCPA) restricts telemarketing and the use of automated telephone equipment and programs designed to send “mass” solicitations by automated dialing systems, pre-recorded messages and SMS text messages.

It is important to recognize a person solicited in violation of the law can sue the marketing party. Furthermore, the Act provides for strict liability which means if a REALTOR® violates the

HAVE A LEGAL QUESTION? The 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 8

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TCPA, even unintentionally, they can be held liable.

The TCPA specifically directed the Federal Communications Commission (FCC) to create a way for telephone subscribers to avoid unwanted telephone solicitations. The TCPA imposes time and identification restrictions on all telephone solicitations. For example, telephone solicitations may not be made prior to 8 a.m. or after 9 p.m. and the caller must provide the called party with their telephone number or the address of the party on whose behalf they are calling and where they can be contacted.

National Do Not Call Registry

The rules also resulted in the National Do Not Call Registry, a database of telephone numbers available through the Federal Trade Commission (FTC) website that cannot be called (or texted) for purposes of solicitation. Do Not Call rules apply to both residential and

More information on telemarketing

Visit the Illinois REALTORS® Legal A-Z page, which you can access using your member log-in (www.illinoisrealtors.org/legal/legal-a-z/do-not-call). The National Association of REALTORS® offers telemarketing tips at (www.nar.realtor/telemarketing-cold-calling).

Illinois REALTORS® also has Form 351, "Rider to Brokerage Agreements," which provides consent by the consumer to be contacted by any available method of communication (www.IllinoisRealtors.org/legal/forms).

cellular phone numbers that have been placed on the list.

In the real estate business, the registry prohibits any telephone call to a residential (or cellular) telephone subscriber which would be made for purposes of encouraging the use of the services of a real estate brokerage company or its agents; or the purchase, rental or investment in any real property or inventory of the real estate brokerage company.

It is the responsibility of the brokerage using a telemarketing campaign to check the National Do Not Call Registry before reaching out to consumers. The registry is continually updated by the FTC and accessible by going to https:// telemarketing.donotcall.gov.

In addition, the Rules require any brokerage that conducts telephone solicitations to maintain its own company-specific list of residential telephone subscribers who do not want to be called. Therefore, if a party requests not to receive further phone solicitation in response to a cold call, no one else from that brokerage can place a phone call to that party.

The brokerage must also create and maintain a written company policy addressing both the use of the National Do Not Call list, and the company-specific list. The policy must be made available upon demand of an investigating agency.

Furthermore, any brokerage that engages in telephone solicitation must also provide training to its personnel (and independent contractors) regarding the existence of the National Do Not Call list and the proper use of the list.

Telemarketing by text

In these busy and competitive times, it can be tempting to try contacting potential clients by automated telemarketing text messages. However, soliciting clients by text requires an additional layer of precautions for a brokerage. Telemarketing texts are those texts initiated for purposes of encouraging the purchase, rental of, or investment in property, goods or services.

A telemarketer who wants to use this type of mass solicitation must obtain a written and signed consent form that clearly and conspicuously discloses that the recipient authorizes the sender to deliver messages and that is not conditioned upon outside factors.

Non-telemarketing text messages only require prior express consent, and consent can be given verbally, in writing or by voluntarily providing a cell number. In the event of an allegation of a violation, the soliciting party will have to prove that consent to receiving text messages was obtained prior to contacting the consumer.

Therefore, REALTORS® should establish a practice of following up with written confirmation even if verbal consent has been provided for contact by text. A personal or company attorney can advise how to add language for forms on which a potential client provides a cellular number, and that they are consenting to the receipt of text messages.

Finally, any system that is put in place by a REALTOR® for solicitation by text message must include an “opt out” procedure for the solicited parties. For example, the solicited party might be

able to reply to the text using “STOP” to avoid future contact. This “opt out” option must be clearly communicated in all solicitations.

REALTORS® should be aware that violations of the texting rules can be up to $1,500 per violation, and that would apply to each consumer who was inappropriately contacted.

Make sure to check your brokerage company’s policy, which may contain a blanket anti-solicitation policy. Even so, your company must have a written Do Not Call policy and a method for creating an internal company specific Do Not Call list.

Know the rules

In order to make certain your brokerage is following the Telephone Consumer Protection Act and the National Do Not Call Registry rules, do the following: • Comply with the time limits (between 8 a.m. and 9 p.m.) and identification restrictions for all telephone solicitations.

• Establish a pattern of checking both the national Do Not Call list and the brokerage companyspecific DNC list and establish company procedures for maintaining the company’s list.

• Provide training to all licensees and personal assistants regarding the use and application of the DNC lists.

• Comply with the consent, date, time and identification restrictions on messages sent via text or facsimile.

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LEGAL

A failed home sale, an inspection report and the rules of disclosure

By Anneliese Fierstos, Legal Hotline Attorney If the sale that triggers a home inspection falls apart, and there is an inspection report that has been generated, the question arises, what is the responsibility of the seller to review the inspection report and disclose information from that report in a subsequent transaction?

First, consider the seller’s obligation to provide buyers with a reliable representation on the major conditions of a property under the Illinois Residential Real Property Disclosure Act [“The Act”]. The Act requires that sellers complete a form specifically answering 23 questions about a wide range of conditions of their property.

Often, the seller completes the required disclosure form prior to the time he or she enters into a residential sales contract with a buyer. Presumably, the seller completes that required disclosure form honestly and based upon the seller’s actual knowledge at the time they completed the form. However, when an inspection of the home is triggered by an agreed contract, sometimes new defects (material or immaterial) are discovered on the property. Now there is a question about what, if anything, the seller must disclose.

Sometimes, post inspection, the sale of the home falls apart for reasons not related to the inspection and there is an inspection report out there that may or may not reveal newly discovered defects on the property. At that point, the question arises, must the seller review the inspection report and disclose any information contained in that report?

The language in the current MultiBoard Residential Real Estate Contract 7.0 in the Professional Inspections 10

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paragraph suggests that there is no such duty, and that the buyer should only provide the seller a copy of the report if the seller’s side specifically requests a copy. That language might provide a seller an opportunity to “dodge” a report allowing the seller to deny having “actual knowledge” of any defects on the property. This appears to be inconsistent with the purpose of the disclosure act.

This is particularly true because, under the Act, it is very clear that a seller does have a duty to supplement the disclosure report if the seller learns of a material defect after the original disclosure form was delivered to a prospective buyer.

Arguably, the best business practice for a seller, subject to seller’s attorney’s advice, would be to request any relevant part of an inspection report in order to provide their seller with important information relevant to the property for sale. First, information from the report may allow the seller an opportunity to remedy any major physical defects on the property so the seller does not need to amend the disclosure form.

Furthermore, it might strengthen their

negotiating position when a new buyer comes along. Second, it positions the seller to be in compliance with the disclosure requirements of the Act. In many circumstances it is better to meet disclosure issues that are material and related to the physical condition of their property “head on” rather than trying to avoid knowing that issues exist.

It is important to note that information regarding the physical condition of a property is not confidential to sellers. However, sellers might do themselves a disservice by trying to avoid knowing about defective conditions that might exist. On some occasions, it can be less expensive to disclose a newly discovered condition, and take a “hit” on the price, or fix the condition and be done with it. This could be preferable to having to explain to a court, if a civil suit is filed alleging bad faith in disclosure, that seller had an idea that a prior deal died due to a bad inspection and chose not to find out about it in order to avoid disclosure requirements. The best suggestion a seller’s broker can give in this situation is that the seller seek specific legal advice from their attorney.

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Navigating a cooler market

A slower housing market doesn't have to mean less business. Here are eight ways to stay competitive.

By Bridget McCrea

After several years of strong sales and median price gains, the Illinois housing market has gotten off to a slower start this year.

Through the first four months of the year, many parts of the state saw year-over-year declines in sales. Median prices, while still stable, have fallen below the pace seen in previous years.

Of course, these numbers aren’t anywhere close to reflecting the recessionary levels seen a decade ago, but they may indicate REALTORS® are having to work harder – and smarter – to keep their edge.

“Someone in our office called the current market ‘Groundhog Day,’ because it sticks its head out of the ground, stays active for a little while, and then goes back down into its hole,” says Kim Kerbis, vice president of brokerages for @properties in Chicago.

“There’s just no consistent trend-line at this point. One week, agents are talking about multiple offers, and then the next one feels pretty sleepy and you’re wondering where everyone went.”

As any real estate professional who weathered the last housing downturn can attest, this fluctuating activity – and other telltale signs – could signify a cooler market on the horizon, but this is not the time to bury your head in the sand and hope that business stays good.

Instead, it’s time to hone your marketing approach, redeploy some real estate basics, dial in your advertising strategies, review your finances and tweak your budget in anticipation of a cooler market for the rest of the year (and possibly into 2020).

Here are eight things you can do right now to keep your business pipeline strong and commission checks coming during any market conditions:

Pay attention to market conditions (and the issues that impact them)

Even if you’ve had your head down for the last few years, working more deals than ever, it’s time to take a short breather and catch up on what’s going on in the market around you.

Kerbis tells agents to pay attention to political developments on the local, state and national levels, all of which can impact the home-selling market.

“We shouldn’t be working in a bubble,” she 12

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said. “We have to know what is going on at both the micro and macro level in order to best serve our clients.”

Political and policy changes can bring consumer uncertainty. Chicago has a new mayor, the state of Illinois has a new governor and there is political divisiveness at the national level and those factors can affect confidence in the market, she says.

Get back to basics now

When business is robust, we all tend to forget about the basic steps that we could be taking in order to keep our client pipelines full. Then economic downturns and recessions hit, and we’re all scrambling to get back to basics.

For example, Kerbis says too many agents and brokers are using generic voicemail greetings (e.g., the automated “please leave a message for [your number here]); not including complete signatures on their email messages; and forgetting about other inexpensive marketing tactics.

“There’s some low-hanging fruit that agents could be using for branding and marketing,” says Kerbis. “Simply having your voice on your outgoing voice message can go a long way in creating a more personal experience for your clients. It also helps reinforce your brand.”

Most important, getting back to the basics isn’t expensive.

She also tells agents to develop “proper” email signatures – both for your laptop/desktop email and for the emails you send from your mobile phone – that include your name, company name, office address, mobile number and website.

“I still get emails from agents with ‘sent from my iPhone’ as the signature so I couldn’t even call them back if I wanted to,” she said.

Double-up on the advertising that works

When business is brisk, it’s easy to sign up for the “latest and greatest” shiny objects without really knowing whether they’re producing business for you.

Justin Letheby, broker/trainer at Berkshire Hathaway HomeServices Starck Real Estate in St. Charles, says now is a good time to give those investments a second look to see if they’re truly paying off.

Kim Kerbis

Vice president of brokerages for @properties in Chicago

“Find out what’s giving you the biggest bang for your buck, and get rid of anything that’s not,” Letheby suggests.

For example, he says over the last few years a lot of agents have “had fun playing in the world of Facebook and trying to build ads on the platform.”

A self-proclaimed advocate of social media advertising, Letheby says the agent that is just starting to use the platform – and without any positive results – should probably take a break from it and double up on advertising strategies that are working.

That stated, you have to market.

“This not the time to stop spending on advertising and marketing,” says Andrea Geller, broker-associate for The Chaz Walters Group at Coldwell Banker Residential Brokerage in Chicago.

She tells other agents to develop a balanced approach that incorporates a mix of face-to-face, offline, and digital strategies – all of which should be centered on your brand.

“If you aren’t top of mind for your clients, and if you’re not branding yourself in their minds then you won’t get an effective return on your investment in any market conditions,” says Geller.

Ask for the business

Andrea Geller

Broker-associate for The Chaz Walters Group at Coldwell Banker Residential Brokerage in Chicago

When times are good, it seems like agents can pick up a rock and find a group of pre-approved buyers huddled under it, ready to buy.

When market conditions turn, actually getting out there and asking for the business becomes one of the most important things you can do as an agent.

“When the market is hot, the assumption is that people are just going to reach out to you on their own volition,” says John Lawrence, managing broker at Berkshire Hathaway HomeServices KoenigRubloff Realty Group in Oak Park. “That changes when the market cools off.”

To prepare now, Lawrence tells agents to get more active and engaged in their communities, organizations, non-profit groups, schools and other places where you can create relationships and, subsequently, ask for the business.

“People want to do business with professionals who are involved and giving back to their communities,” he says.

To ensure that your sphere of influence knows you’re available in a professional capacity – but ILLINOIS REALTOR® July 2019

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not hounding them – Lawrence says agents should strive to become a valuable resource for those individuals. That could mean telling them about a reliable, affordable handyman that you’ve worked with, or sharing some email tips on the Top 10 Ways to Prep Your Pool for the Summer.

“Show value, help your sphere fulfill its needs,” he says, “and then ask for the business.”

a seller’s market and can impact current market pricing.

“Look at the numbers and then help your clients interpret them in a way that makes the most sense to them,” he said.

Shore up your finances

Use the 33-touch rule

Knowing that a cooler real estate market could prompt agents and brokers to rein in their marketing budgets, Kerbis tells REALTORS® to stick to the 33-touch rule.

This rule states all real estate professionals should be connecting with clients at least 33 times a year (whether those clients are actively buying or selling, or not).

Kerbis says Pride Week, Rosh Hashanah, Christmas and International Women’s Day all present great opportunities to let prospects know that you’re thinking about them. @properties, for example, uses built-in “e-announcements” that agents can set up within a few minutes. On the first-year anniversary of a buyer’s closing date (i.e., their “home anniversary), for example, reach out to say hello, see how they’re doing, and ask if they need help with anything.

For an even bigger impact, take the time to send those cards via snail mail.

“There’s nothing better than getting an actual live note these days, because no one gets them anymore,” says Kerbis.

Justin Letheby

Broker/trainer at Berkshire Hathaway HomeServices Starck Real Estate in St. Charles

Now is the time to work harder and smarter

Use data to manage seller expectations

When the housing market takes a dip, sellers can be confused about why their homes aren’t selling, or why they’re not selling for the prices they expected.

Letheby says MLS data can really prove its worth in these situations, particularly when homeowners don’t understand why they have to drop their asking price or accept a lower-thananticipated offer.

“The MLS data and reports can help you show the numbers and better explain market conditions – right in black and white,” Letheby says.

For example, an increase in a month’s supply of available housing indicates a shift away from 14

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When the market starts to show signs of turning, Letheby says he starts to save 5 percent of every commission check in a side savings account.

That way, if business does wane, he has cash reserves to tap into.

“I want to be able to weather the storm and not be caught without extra cash when I’m in between deals,” he says.

Another way to shore up your finances is by branching out. A broker might consider adding property management or rental properties to a menu of offerings.

“If someone is solely a listing agent, maybe he or she needs to start looking at renters as a way to earn some extra income,” Letheby says. “That can help you open up your business avenues a bit and shield you financially in case your regular lines of business start to dwindle.”

John Lawrence Managing broker at Berkshire Hathaway HomeServices KoenigRubloff Realty Group in Oak Park

To agents who might be concerned about business fluctuations in their own markets, Lawrence says now is the time to just get out there and keep working, knowing that there are still plenty of transactions taking place in most markets throughout the state.

“These deals may be taking a little bit longer to close, but the agents that are marketing themselves, working hard and operating with a positive attitude are doing fine,” says Lawrence.

“Those of us who made it through the recession did it by staying on top of the numbers and being creative,” Lawrence continues. “We all have to work harder sometimes to make the same amount of money. If you want to be successful, that’s what you’re going to have to do.”

About the writer: Bridget McCrea is a business, real estate and technology writer in Miami, Fla.

She can be reached at bridgetmc@earthlink.net

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AT THE CAPITOL Capitol Conference 2019 REALTORS® from throughout the state traveled to Springfield in April to meet with state lawmakers and lobby on the regulatory and legislative issues important to the real estate industry and private property rights.

Issues on the association’s 2019

legislative agenda included opposing efforts to repeal the Rent Control Preemption Act, opposition to changes in how tax assessments are calculated for commercial property in Cook County; supporting local government consolidation efforts and a rewrite of

Gathering at the rail outside the House and Senate chambers, Illinois REALTORS® show their REALTOR® pride. PHOTO BY TERRY FARMER

REALTORS® meet with House Assistant Majority Leader Jay Hoffman, D-Belleville (center, standing).

PHOTO BY TERRY FARMER

Hundreds of REALTORS® traveled to Springfield from around the state to talk about policies affecting the real estate industry.

The Illinois REALTORS® Leadership Development Class with Senate Republican Leader Bill Brady, R-Bloomington, (center, standing). PHOTO BY TERRY FARMER

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the Illinois Real Estate License Act. Stay up to date on legislative action of interest to Illinois REALTORS® with the State Capitol Report, bit.ly/IR_StateCapitolReport

President-elect Ed Neaves welcomes the more than 700 REALTORS® at the association’s annual Lobby Day. PHOTO BY TERRY FARMER

Taking a selfie and capturing the architectural grandeur of the more than 100-year-old Illinois State Capitol. PHOTO BY TERRY FARMER

REALTORS® ready to head into the Capitol and lobby their local legislators.

Illinois REALTORS® take a group photo in front of an RPAC backdrop at the end of a successful Lobby Day.

House Republican Leader Jim Durkin, R-Western Springs (center) meets with Illinois REALTORS®.

Members of the REALTOR® Association of Southwestern Illinois pose for a photo after the Lobby Day legislative briefing at the Bank of Springfield Center.

Rep. Tim Butler, R-Springfield, presents CEO Gary Clayton (right) with a state bicentennial flag that had flown over the Illinois Capitol. PHOTO BY TERRY FARMER

Illinois Senate President John Cullerton, D-Chicago (center) held a meeting with REALTORS® in his Capitol office.

Pat McCarthy receives Illinois REALTORS® Political Involvement Award Peoria REALTOR® Pat McCarthy is the latest recipient of the Illinois REALTORS® Political Involvement Award. He is a broker associate with RE/MAX Traders Unlimited in Peoria.

The award honors Illinois REALTORS® for achievements and excellence in political and grassroots involvement. Throughout his career in real estate, McCarthy, CRS, GRI, has been committed to promoting the power of REALTOR® political advocacy.

“It was quite an honor to receive the award. I’ve always been interested in legislation that concerns our business.

If we don’t protect our business and the personal property rights of others, who will?” McCarthy said.

“We have a great staff in Springfield watching over current legislation and bringing those concerns to us to take action.

REALTOR® advocacy not only

protects us, but every client we serve as well. It’s money well spent!”

He has served on all of the Illinois REALTORS®’ political fundraising committees and has chaired the Federal Political Coordinators Working Group. He is a Federal Political Coordinator for U.S. Rep. Darin LaHood and a State Legislative Contact for state Rep. Mike Unes.

At the national level, McCarthy has served multiple terms on the National Association of REALTORS® Political Involvement Committee.

He is a Sterling “R” Major Investor in the REALTORS® Political Action Committee (RPAC) and is a 2018 RPAC Pacesetter.

He is a member of the Peoria Area Association of REALTORS®, has served on numerous committees and led the association as its president in 20082009. He was the Peoria association’s

REALTOR® of the Year in 2011.

In his community, McCarthy serves on the Boys & Girls Club of Greater Peoria Board of Directors and the Peoria Gridiron Board of Governors. He has also served as president of the Bradley University Braves Club.

ILLINOIS REALTOR® July 2019

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ADVOCACY

Four key REALTOR® victories from the spring legislative session

By Jon Broadbooks, Vice President, Communications Lawmakers closed out the spring session of the Illinois General Assembly on Saturday, providing REALTORS® with four critical wins.

1. Rent Control: Round #1 Victory

Advocates did everything they could to make Rent Control a dominant issue in the General Assembly this spring, marshaling protests and campaigning to repeal of a statewide ban which had been in place since 1997.

The result: The bill seeking the act’s repeal never made it out of a subcommittee following intense lobbying and a REALTOR® Call for Action.

In the run-up to the vote, the association created a separate website with reasons why Rent Control was bad policy and held a member forum at the annual Public Policy Meetings in East Peoria. Later in the session, hundreds of REALTORS® swarmed the Capitol during Lobby Day to tell lawmakers why Rent Control was a bad idea and would make the affordability problem worse.

Although Rent Control legislation may re-emerge in other sessions, the decisive defeat showed the power REALTORS® have when it comes to countering bad public policy.

The debate allowed Illinois REALTORS® to show they are advocates for affordable housing, and that the association wants to be part of the solution when it comes to crafting meaningful policy initiatives addressing housing access.

2. License Law passes with improvements for next decade Real estate license law rewrites, mandated every 10 years by statute, give REALTORS® and regulators an 18

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opportunity to sit down and adapt rules to the needs of a fast-changing industry.

This year, Illinois REALTORS® entered the process with a game plan provided by several task forces where dozens of association members made suggestions to improve industry professionalism.

Illinois REALTORS® advocates took these suggestions and worked with the Illinois Department of Financial and Professional Regulation (IDFPR) to come up with revisions to the Real Estate License Act which enhanced education, lowered the age at which someone can attain a license and introduced the definition of teams.

Also significant, an emphasis was added to the act which places a focus on new broker training and supervision of new licensees by managing brokers.

The agreed-to bill between IDFPR and Illinois REALTORS® got overwhelming support from both the House and Senate, and now awaits Gov. J.B. Pritzker’s signature. Watch for updates from Illinois REALTORS® as to the timeline and details of the implementation of the new law.

3. Commercial assessment bill in Cook County stalled

Newly elected Cook County Assessor Fritz Kaegi backed a bill which would have radically altered how his office establishes values for commercial property.

Illinois REALTORS® questioned various elements of the bill which sought annual financial information related to the income and expenses from those owning many types of income-producing properties. The association had concerns over the impact of the legislation on the Cook

County property tax system and in other counties that chose to opt-in to the provisions.

REALTOR® opposition in part resulted in the bill being sent into committee limbo in the final days of the session, although the assessor’s office has made clear it will try again to pass the bill as early as the fall session.

The legislation was of critical importance to REALTORS® because commercial property in the Cook County classification system has been targeted in the past, and property owners are already sensitive to any sudden changes and tax shifts when the valuation process is changed.

4. Late effort sinks proposal to add tripling of transfer tax in capital bill

As Illinois REALTORS® lobbyists will tell you, there’s always a last-minute surprise in every legislative session.

Among language included in an over 700-page amendment for gaming expansion and revenue for a capital bill considered in the final hours of the session was a provision which would have tripled the real estate transfer tax on “nonresidential” property.

The measure had various revenue sources to fund a list of improvements for the state, but as Illinois REALTORS® pointed out the language was not only another property tax but “nonresidential property” was not clearly defined.

REALTORS® voiced their opposition to the transfer tax. House Republican Leader Jim Durkin and his caucus asked that the language be stripped from the final version of the bill, which it later was.

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What's the deal with the mortgage financing changes

By Courtney Westlake

Understanding mortgage financing and how changes in loan programs may affect your clients is a vital component of working in real estate.

Chris Read, vice chair of Conventional Financing and Policy Committee for the National Association of REALTORS®, says it’s critical that REALTORS® develop strong relationships with lenders and are well-versed on mortgage industry trends.

“I call it proactively positioning a client for a successful transaction,” said Read, managing broker-owner of CR REALTOR® and CEO of CR Strategies in Woodridge. “REALTORS® are the first professionals clients are talking to. This means educating them on the process, disclosures, agency, on their financing ability, the preapproval advantage.”

“As REALTORS®, we need to be familiar with what they need for a down payment. Some buyers think they need 10 or 20 percent down, and that’s not true with many programs available today,” she says.

With the arrival of summer, the Illinois home buying season is here, and excited consumers are already shopping around. Here are some mortgage financing updates that REALTORS® need to know and understand:

Easier Self-Employed Financing

It’s long been a struggle for many who are self-employed to qualify for a mortgage.

While more traditional workers have W-2 forms or pay stubs to verify their incomes, lenders often require extra paperwork for the self-employed, such as full documentation of tax returns from the last two years.

This year the process for the self20

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employed is changing in ways to make it easier to assess income. Some lending institutions are looking at bank statements instead of solely relying on tax documents.

“Tax returns may not be a true reflection of income because of tax write-offs,” said Crystal Lake REALTOR® Kay Wirth, a member of NAR’s Federal Financing & Housing Policy Committee. “Some lending institutions are using 12 or 24 months of bank statements, so that income is determined by two years of deposits rather than two years of tax returns.”

Instead of an underwriter wading through tax documents, lenders can now upload paperwork directly to LoanBeam, which can electronically read tax returns, identify what qualifies as eligible income and integrate this information into the electronic underwriting system – all within minutes.

Self-employed individuals may not be the only ones realizing the positive effects of automation. Fannie Mae’s new Day One Certainty program is automating all areas of underwriting, seeking to “process loans all the way to close without a pay stub,” said Nathan Britsch, Executive Vice President of Compliance at Neighborhood Loans and secretary/treasurer for the Board of the Illinois Mortgage Bankers Association.

“The benefit to buyers is speed; we’re starting to see processing times go down dramatically, especially this year,” Britsch said.

Higher FHA loan limits for 2019

Wirth, a broker with RE/MAX Unlimited Northwest, encourages real estate agents to check with lenders to see if their bank or lending institution is implementing this change.

“Lenders may create their own overlays that may make it more restrictive, so REALTORS® always need to check with lenders on each client’s situation,” she said.

Freddie Mac and Fannie Mae are also making changes that could benefit the self-employed, adopting an automated system called LoanBeam.

The Federal Housing Authority (FHA) is required by the National Housing Act to set single-family forward loan limits at 115 percent of median house prices. The limits, which are subject to a minimum floor in lower cost areas and a maximum ceiling for higher cost areas, are calculated by Metropolitan Statistical Area and county.

This year, the U.S. Department of Housing and Urban Development raised FHA loan limits in 3,053 counties.

FHA’s 2019 minimum national loan limit, or floor, of $314,827 is set at 65 percent of the national conforming loan limit of $484,350. This applies to those areas where 115 percent of the median home price is less than the floor limit.

Any areas where the loan limit exceeds this floor is considered a high-

Chris Read

Kay Wirth

Nathan Britsch

cost area, and FHA is required to set its maximum loan limit “ceiling,” such as Chicago, at 150 percent of the national conforming limit.

“Different counties in Illinois have different FHA maximums,” Read noted.

“It’s vital that a licensee know those maximums in the county they’re working for their client; there are three different numbers to know for Illinois.”

“The mission is supporting sustainable homeownership. We want credit available for any American who has ability to repay on that,” Read said.

“The largest sector of millennials is turning 30 in 2020, and this is a prime buying time for them,” she added. “FHA is a viable product for them, and that’s why a licensee needs to know the ins and outs of an FHA loan. It’s the first-time buyers that are going to reshape our whole industry.”

“Neighborhoods that are not able to get traditional financing are starting to get second looks by a lot of buyers; a lot of these homes just need some TLC,” he said. “In city centers where people want short drive times and the benefits of city living, renovation financing will help revitalize these areas. We’re seeing a big increase in the amount of construction and renovation financing we’re doing.”

Tougher FHA credit standards

In March, FHA announced that higherrisk loans will be subject to a more intensive manual underwriting process.

The new standards apply to loans in which the applicant has a credit score below 620 and a debt-to-income ratio above 43 percent.

FHA insures mortgages for first-time home buyers and borrowers with low credit scores and high loan payments relative to their incomes.

“Home values have gone up, which is outstripping affordability,” Britsch said. “In general, the ability of FHA to keep up with affordability is a good thing.

FHA allows people who don’t fit into a particular box or couldn’t otherwise afford it to purchase a home.”

FHA’s new standards could affect about four percent of the mortgage applications they receive, or about 50,000 applications in a typical year. That’s not to say those loan applications won’t be approved; the FHA says it is simply attempting to protect its reserves and to minimize risk with a tighter process.

More mortgage trends

Other trends and events are continuing to shape current home buying practices as well.

FHA has been discussing changes within their condominium regulations.

Wirth said she counsels buyers to be cautious when purchasing a condo at this point.

“Check and make sure the condominium is FHA-approved,” she said. “When the market tightened up, a lot of condo associations let their FHA approvals lapse; when owners couldn’t sell, they started renting, which caused a lot of condos to lose FHA approval.

It became expensive and arduous to renew them because of limits on ownerto-occupancy regulations. This trend changed the complexity of purchasing condominiums for a lot of buyers.”

In his role, Britsch is seeing an increase in renovation loans as the inventory of homes becomes more limited, particularly in cities.

REALTORS® in the know

Real estate agents need to stay up-todate on any changes in regulations your lenders are dealing with because it trickles down into your own process.

Early and constant communication with a mortgage lender from all parties involved in home buying is encouraged, Wirth said.

“When I’m working with my buyers, I try to get them into direct contact with a lender as soon as possible, to make sure they get prequalified and preapproved up front, so buyers understand what their capabilities are as far as lending,” she said. “You don’t want to get your buyer into a situation where they submit a contract and then you find out their financing is not approved.

“There are a lot of programs out there to help buyers get into homeownership, and information is key.”

About the writer: Courtney Westlake is a writer and photographer from central Illinois. She can be reached at courtney@westlakewrites.com

One of the most asked questions from a potential new client is “how much mortgage can I afford?”

Today, there are many programs that assist buyers with down payment and closing cost assistance: www.IllinoisRealtors.org/membership/memberbenefits/mortgage-loan-programs

ILLINOIS REALTOR® July 2019

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The costly impact of ‘crime-free housing’ initiatives on Illinois communities

Ron Deedrick

Local Governmental Affairs Director representing REALTOR® Association of Southwestern Illinois, Greater Gateway Association of REALTORS® and the Egyptian Board of REALTORS®.

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The premise of “crime-free housing” seems straightforward: require rental tenants to remain crime free or face eviction, giving municipal and county law enforcement agencies more control over criminal activity happening on a specific property, block and neighborhood.

Crime-free housing policies aren’t a new advocacy issue. There are several municipalities in Illinois, including some in the Metro East area that I cover as an Illinois REALTORS® local governmental affairs director, where crime-free ordinances have been in place for several years.

This year, interest in crimefree ordinances has re-emerged in communities located just across the Mississippi River from St. Louis. And while REALTORS® can stand behind community efforts to address public safety, they should be wary of policies which fail to provide transparency, communication and due process for the property owners involved.

Alton is one Metro East community which has implemented a crime-free

ordinance through the addition of a lease addenda for rental leases executed in the city. Alton’s crime-free addenda require landlords to have a listing of all tenants on the premises of the residence. The tenants agree to certain provisions that govern their behavior and that of their guests, as well. The city sees its use of landlord licensing and crime-free housing as a tool to track criminal activity and reduce crime rates.

The Alton ordinance shows the issues that can arise with these provisions.

For instance, eviction processes are being demanded by the city for police calls to a property. Crime-free ordinances do not even require a criminal conviction for the tenants to be kicked out of a residence.

Owners are put in a tough spot when the ordinance requires eviction but the landlord is unable to get backing from the police department. By law, self-help evictions are prohibited.

With the large case load in Madison County courts, it could take landlords nearly two months before they can obtain a court date, during which time most tenants facing eviction will not pay rent or maintain the residence.

Finally, if the landlord does win an eviction order, that paperwork will be delivered by the Madison County Sheriff’s Office. The city of Alton is abdicating all responsibility for its crimefree housing program and placing it on the backs of the landowners and another policing agency.

For 103 years, Illinois REALTORS® has defended property rights and we hope crime-free efforts are accomplished with minimal intrusion

into the lives of landlords and tenants.

Illinois REALTORS® had supported House Bill 2206 from state Rep. Sam Yingling, D- Grayslake, that would have required municipalities such as Alton to seek warrants for crime-free inspections and require the permission of the tenant/landlord to enter a residence.

The bill stalled in the spring session.

Several other communities understand the role private property rights play in crafting a crime-free ordinance.

In Belleville, the city’s Crime-free Committee meets every six months with various stakeholders to evaluate the effectiveness and efficiency of its program. As a matter of policy, Belleville could be a leader in the crimefree housing world.

In nearby Swansea, a Metro East village that implemented a voluntary crime-free program at the end of 2018, the underlying policy focused on incentives which lowered occupancy permit fees.

Due process is always a key motivating factor in potential REALTOR® opposition to crime-free housing provisions. If a crime is committed even near an Alton rental residence, a landlord could be forced to remove all the tenants of a home or apartment.

At one city council meeting in 2018, an Alton city attorney admitted that a grandmother, mother and granddaughter could be kicked out of a residence because of the actions of a mother’s boyfriend, who may or may not even have been at the address where the crime purportedly happened.

Experience with crime-free ordinances shows one thing clearly: The best solutions to making communities safer come through consistent input from property owners.

After all, REALTORS® and community residents have a clear stake in making communities more livable.

REALTORS® ramp up support of municipal election candidates

By Mike Scobey, Senior Director of Local Advocacy & Global Programs Illinois REALTORS® has been expanding its involvement in municipal elections in recent years and 2019 raised the bar even higher. RPAC contributions and support to candidates through Independent Expenditures set a new record in the April 2 municipal elections.

Election activity at the local level. Illinois REALTORS® provided Independent Expenditure support to 20 municipal election candidates and 13 won their respective races.

All of the races were highly competitive, and the Independent Expenditure support was in the form of direct mail and digital ads.

RPAC also supported candidates in the April municipal elections with direct contributions to 89 people running for village president, city clerk, city council, village trustee

and township trustee. Of the supported candidates, 61 won their races.

A variety of local issues determine support for local candidates including: • Municipal inspection programs (both in point of sale home purchases and in rental properties) • Real estate transfer taxes • Requirements and fees imposed on owners and managers of rental properties • Impact fees • Requirements on new developments (residential and commercial) In April, REALTORS® also supported sales tax referenda in Wood River and Lemont.

Both were approved by voters.

State law permits non-home rule units to impose a sales tax for infrastructure improvements and property tax relief upon voter approval.

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SPONSORED CONTENT

Your local MLS is leading the way for real estate teams innovation

By Rebecca Jensen

President and CEO of Midwest Real Estate Data (MRED)

We saw a need and we filled it to help agents, setting an important industry standard along the way.

To better serve our real estate professionals, Midwest Real Estate Data (MRED) has rolled out new functionality in our multiple listing service (MLS). These features acknowledge the increasing presence of real estate teams in our marketplace and make the experience surrounding teams better for everyone.

A recent National Association of REALTORS® survey indicated more than 25 percent of respondents were part of a real estate team. MRED’s ongoing initiative accounts for this growing demographic and provides a way for the efforts of these teams to be accurately reflected. At the launch of this feature, there were nearly 1,800 team members registered in MRED’s system, comprising 800 teams that have accounted for 31,000 transaction sides and more than $10 billion in volume during the preceding 12 months.

That’s not a pattern that can be

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ignored, and teams in real estate affect your business whether you’re a part of one or not.

MRED leadership conducted extensive research into real estate teams and created features to address the most pressing teams-related needs with the help of feedback from team leaders, team members, brokerages, individual practitioners, and vendors.

Responses from these groups pinpointed three main aspects of teams that MRED’s new functionality could improve upon: • Better MLS functionality to manage team members, clients, and transactions • More transparency regarding the parties that are part of teams and their levels of business • More accurate tracking of team production and membership, which would display in reports, rosters, and listings, as well as be available to thirdparty vendors and platforms through data delivery The features of our connectMLS enhancements to address all of these needs will be rolled out in phases. We

welcome any and all feedback along the way to make sure we’re offering the best possible solutions.

The first iteration of the teams update included: • The creation of team-specific user IDs • Deeper controls for team leads to manage team members within the MLS • Detailed reporting on team production at brokerage, association, and office levels We’ll be taking all this a step further in upcoming iterations, as team IDs in connectMLS will soon be distributed through API and RETS to third-party platforms, providing more accurate team information outside of the MLS. We’ll also be collecting feedback from team members and focus groups to continually improve this new functionality. Because at the root of everything we do, MRED’s purpose is to serve you, the real estate professional, so we’re actively pursuing your feedback to make that happen.

Disruption is here: Embrace the changes and adapt your business for the better

By Stephanie Sievers, Senior Editor

It is a time of disruption in the real estate industry with changes in the market, advances in technology and consumers who have more information than ever. REALTORS® who learn to address and adapt to the changes will succeed.

“Markets always shift,” said REALTOR® Harrison Beacher. “What you do and the actions you take are what’s most important.”

Earlier this year, Beacher and Nobu Hata shared their insights on how to confront challenges and thrive in a shifting market in the Illinois Young Professionals (YPN) program, “Disrupt Yourself,” in Springfield.

Beacher serves on the National Association of REALTORS® (NAR) YPN Advisory Board and is a Washington, D.C.-area REALTOR® with Keller Williams Capital Properties. Hata is NAR’s Director of Industry Outreach.

Here are some takeaways from their presentations:

Tell the story of what you do in a new way The future is mobile and REALTORS® need to be able to tell consumers what they do in a concise and clear way. Get better at having an answer for what it is that REALTORS® do and Nobu Hata how it benefits your clients.

• If you are still trying to explain your value through 3,000 words, you are losing because people are busy and mobile and don’t have time to read it. You have to be able to convey your value through a two-inch screen with pictures and a story.

Ditch the industry lingo Stop talking like REALTORS® to consumers. Absorption rates, historically low interest rates, inventory levels and even the stats on how many homes you have sold may not mean that much to consumers.

• Buying or selling a home is a big move, and buyers and sellers just want to know how you will help them in the process. Humanize the conversation and be the person in their corner to make sure the transaction goes well.

Consumers could do it on their own, but they are willing to pay more for the service of working with a REALTOR® to improve the experience and financial outcome.

Think like an entrepeuner not a salesperson Take a look around at the real estate industry, do the things that others aren’t and do those things better. Think bigger and give people the "aha" moments they are looking for.

• Hata points to successful marketing campaigns from companies such as Amazon and Fed Ex. The focus is on customer service and making the story about the consumer, not the company (or in the case of real estate, the REALTOR®).

run your business like a business Maintain a profit and loss statement and track where ALL your money is going and the returns on your investments.

Cut costs and carefully analyze your budget. Be skeptical of Harrison Beacher new marketing and lead generation promises that come your way.

• By monitoring his marketing return on investment, Beacher found the online lead generation system he spent thousands on did get his properties in front of people, but it wasn’t resulting in many closings.

What did drive transactions were the personal efforts (neighborhood dinners, etc.) he targeted to his sphere.

Double down on the people who are already referring business your way Invest in building up the successful relationships you already have. Stay front of mind with consumers so they think of you when it comes to real estate.

• Create a VIP sphere list of people who have gone out of their way to refer business to you in the last year. Those referrals may have been free direct referrals, Facebook mentions or texts.

Personal connections can help you ride out any market changes The best defense in a market shift is talking to people.

Make it a daily habit to reach out and maintain connections.

• REALTORS® get so focused on accomplishing the one goal, with the one client at that one time that they overlook the larger picture. If you increase your connections and do right by people your pipeline will stay strong and you’ll get future business, he said.

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Illinois REALTORS®: What Matters Most

In the latest annual member survey, Illinois REALTORS® share the association resources they value most and the top industry issue weighing on their minds.

66%

Cite "condition of Illinois’ economy and the overall economic environment" as the biggest business and real estate concerns

82%

Rank legal tools and resources as excellent/good including contracts, forms and Legal Hotline

93%

Cite email as the top rated method of communication for getting association information

90% Give the state association an excellent or good job performance rating

1 REASON

#

Good communication from the association keeps members informed

2/3

Learn more about your member benefits www.IllinoisRealtors.org/ Membership/MemberBenefits

of members want information on real estate market conditions, statistics and trends

7 in 10 Members say RPAC is important to their business

Source: “Illinois REALTORS® Member Survey – Online February-March 2019” conducted by American Strategies.

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OUTREACH You belong. Make the time. You’re welcome.

No, these are not song lyrics, although, “You’re welcome” is one of my daughter’s favorite Disney songs (and who could blame her, Dwayne Johnson’s “The Rock” singing a Broadway-style showstopper, come on!). These are just a few key phrases plucked from a gathering of new-ish REALTORS® who traveled to Springfield for a two-day marathon that included a Young Professionals’ Network (YPN) program, REALTOR® of The Year Banquet and Capitol Conference.

You belong: In the course of my conversation with these folks, some of whom are brand new and others who have a few years under their belts, it came up that they sometimes had to pull new REALTORS® “kicking and screaming” to Illinois REALTORS® events like Capitol Conference. When asked why, the group conveyed there is a sense that these events are only for established “big names” in real estate and not for new REALTORS®. There is a sense of “we’re not worthy!” to borrow a phrase from Wayne’s World. The entire group wished to convey to all REALTORS®, “You belong!”

Make the time: A bit surprised, I prodded, “But I always thought it was a time issue; new REALTORS® are hyper-focused on the survival of their business.” Not missing a beat, the group responded, if something is important you

make the time. Another factor is feeling comfortable. This group of REALTORS® had certainly overcome any intimidation and expressed that their involvement through the local and state associations gives them immense value and benefits to their offices and clients.

You’re welcome: During the discussion on value, the topic of the REALTORS® Political Action Committee (RPAC) came up. The group asserted RPAC must be broken down to real world, bottom line examples. And, they urged, don’t forget to highlight how RPAC benefits consumers. How many fewer buyers would there be if Illinois had rent control? How many times would I have to pay a $50 fee to put a For Sale sign in a front yard? No mandatory video sewer line inspections for sellers! As the group was listing these money saving accomplishments, one of the REALTORS® suggested “You’re Welcome!” as an RPAC marketing phrase.

To summarize just a tidbit of the excellent information gleaned from conversing with these Rockstar YPN REALTORS®: You belong at association events; show up and bring a friend. Make the time and you’ll be rewarded with valuable information that benefits you and your clients. No need to say THANK YOU because you’re welcome to get involved and enjoy the benefits of RPAC.

Special and sincere thanks to the REALTORS® who participated in our discussion: • David Bovyn, Exit Real Estate Partners, Downers Grove • Christine Coleman, Coleman Land Company, St. Charles • Ashley Heilman, Welcome Home NW Illinois Inc., Lena • Hillary Joy, RGM Real Estate Company, St. Charles • Gibby Kirby, Realty Executives Success, Shorewood • Connie Vavra, RE/MAX Professionals, Bolingbrook • Trischa Williams, Vesta Preferred LLC, Chicago

Gideon Blustein

Member Outreach Manager and Local Governmental Affairs Director ILLINOIS REALTOR® July 2019

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ETHICS Professional standards at a glance: 2018 highlights and a new rule on written offers readily apparent in their advertising, marketing, and other representations, and that the recipients of all real estate communications are, or have been, notified that those communications are from a real estate professional.”

Ethics Citation Program

In 2018, there were 149 complaints filed through the Illinois REALTORS® Ethics Citation Program. A total of 68 citations were issued and nine complaints were forwarded to the Grievance Committee.

The top four Articles or Standards of Practice of the REALTOR® Code of Ethics that were cited were: Article 12, Standard of Practice 12-5: $250 fine “REALTORS® shall not advertise nor permit any person employed by or affiliated with them to advertise real estate services or listed property in any medium (e.g., electronically, print, radio, television, etc.) without disclosing the name of that REALTOR’S® firm in a reasonable and readily apparent manner either in the advertisement or in electronic advertising via a link to a display with all required disclosures.”

Article 12: $250 fine “REALTORS® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations.

REALTORS® shall ensure that their status as real estate professionals is

Article 3, Standard of Practice 3-9: this fine was raised to $2,500 in October 2018 “REALTORS® shall not provide access to listed property on terms other than those established by the owner or the listing broker.”

Article 12, Standard or Practice 12-4: $500 fine “REALTORS® shall not offer for sale/ lease or advertise property without authority. When acting as listing brokers or as subagents, REALTORS® shall not quote a price different from that agreed upon with the seller/ landlord.”

In October 2018, Article 1, Standard of Practice 1-7 was added to the Illinois REALTORS® Ethics Citation Program, with a $250 fine.

Standard of Practice 1-7 states: “When acting as listing brokers, REALTORS® shall continue to submit to the seller/ landlord all offers and counter-offers until closing or execution of a lease unless the seller/landlord has waived this obligation in writing. Upon the written request of a cooperating broker who submits an offer to the listing broker, the listing broker shall provide a written affirmation to the cooperating broker stating that the offer has been submitted to the seller/ landlord, or a written notification that the seller/landlord

has waived the obligation to have the offer presented. REALTORS® shall not be obligated to continue to market the property after an offer has been accepted by the seller/landlord. REALTORS® shall recommend that sellers/landlords obtain the advice of legal counsel prior to acceptance of a subsequent offer except where the acceptance is contingent on the termination of the pre-existing purchase contract or lease.”

For more information on the Ethics Citation Program go to: www.

IllinoisRealtors.org/ethics/ethicscitation-program/

Ombudsman Program

In 2018, there were 212 Requests for an Ombudsman filed. Sixty-eight percent of the requests were resolved to the satisfaction of the complainant.

Illinois REALTORS® currently has 28 members serving as trained ombudsmen.

For more information on the Ombudsman Program go to: www.

IllinoisRealtors.org/ethics/ disputes/

Becky Carraher

Director of Ethics and Professional Standards ILLINOIS REALTOR® July 2019

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REALTOR® COMMUNITY Follow us:

REALTORS® ‘Talk Real Estate’ with Congressional members

Illinois REALTORS® met with members of the state’s Congressional delegation to talk about issues affecting the real estate industry. The Let’s Talk Real Estate events held so far have been with U.S. Reps. Jesús “Chuy” García, Lauren Underwood, Dan Lipinski, Danny Davis and Sean Casten. Let’s Talk Real Estate meetings were also scheduled with U.S. Sens. Dick Durbin and Tammy Duckworth during the REALTORS® Legislative Meetings & Trade Expo in Washington, D.C., in May.

Hall and Beechen named to NAR REALTOR® Magazine’s 30 Under 30 class

Attending the “Let’s Talk Real Estate” event with U.S. Rep. Lauren Underwood were: (l-to-r) REALTOR® representatives Dawn Zurich, Jim Haisler, Kay Wirth, Matt Persicketti, U.S. Rep. Lauren Underwood, Mary Mahady, Sue Wiskowski-Fair and Neil Malone.

Congratulations to Megan Beechen of Lemont and Moses Hall of Chicago on being named to REALTOR® Magazine’s “30 Under 30” Class of 2019. Beechen is a broker for Realty Executives Elite in Lemont and Hall is the broker-owner of MoHall Commercial & Urban Development in Chicago. The May/ June issue of REALTOR® Magazine features full profiles of the 30 winners from around the country.

Conference & Expo

Hundreds of Illinois REALTORS® attended the association’s annual Conference & Expo in Collinsville in May. The two-day event featured an Expo and sessions with Chandra Hall, Monica Neubauer, Mark Given, Lynn Madison and Joel Green.

Mark Given talks about “Trust-Based Success” in his elective CE class.

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Opening session speaker Chandra Hall offered tips for building a sustainable business model in “Stop Selling. Start Solving.”

Closing session speaker Monica Neubauer shared strategies for adapting to a shifting market in “Change is the New Normal.”

REALTORS® line up to speak with vendors during the Expo.

REALTORS® attend a training session during the two-day conference.

Illinois REALTORS® delegation advocates on Capitol Hill for flood insurance, tax reform, mortgage financing and infrastructure

Four Illinois REALTORS® were inducted into the RPAC Hall of Fame during the meetings in May: (l-to-r) Matt Difanis, Mabél Guzmán, Jim Merrion and Dan Wagner.

Federal Political Coordinator (FPC) Carrie Little (center) speaks with U.S. Rep. Sean Casten during a legislative visit.

REALTORS® from northern Illinois led by FPC David Levin (center) meet with U.S. Rep. Cheri Bustos.

Chicago-area REALTORS® led by FPC Sonia Anaya (center) with U.S. Rep. Jesús “Chuy” García.

U.S. Rep. Raja Krishnamoorthi (second from right) meets with Illinois REALTORS® led by FPC Kinga Korpacz (center).

Illinois REALTORS® President-elect and FPC Ed Neaves (left) talks over the issues with U.S. Rep. Adam Kinzinger (right).

REALTORS® pose for a photo with U.S. Rep. Robin Kelly (center).

ILLINOIS REALTOR® July 2019

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