Illinois REALTORS® July 2021 by Illinois REALTORS®

THE VOICE FOR REAL ESTATE IN ILLINOIS

JULY 2021

Find solutions to the housing inventory crisis Help clients handle the stress of a hot market

www.IllinoisRealtors.org

THE OFFICIAL PUBLICATION OF ILLINOIS REALTORS®

www.IllinoisRealtors.org

TABLE OF CONTENTS JULY 2021

04 Inside Track

Strategies for motivating sellers

05 President's Message

Our advocacy efforts must continue – at all levels of government

06 Quick Takes

• Seeing value in ‘green’ residential properties • In Memoriam Nancy Koch

8 Legal Update

Legal questions raised in a competitive housing market Want to become a better leader? Join a YPN

20 Expertise, heart are key to helping hoarders 21 Ethics

Ombudsman Program

C5: Capital, Connect, Commerce, Community, Commercial

Get a competitive edge with C2EX

Celebrating Fair Housing Month throughout Illinois in April 2021

• Freddie Mac's surprising facts about refinancing

16 YPN

Working with senior clients

11 12

Find solutions to the housing inventory crisis Help clients handle the stress of a hot market

24 Infographic

9 home financing programs

28 RVOICE

REALTORS® show support for local candidates, issues

31 Community

Virtual Lobby Days: Bringing Illinois’ legislative leaders to you

Celebrating Fair Housing Month in Illinois

ILLINOIS REALTOR® July 2021

INSIDE TRACK What is your strategy for motivating hesitant sellers? It's more about knowing the needs of the seller than motivation. Careful explanation of the current market trends, expectations of days to sell their home and value must be balanced against where the seller is going to purchase and their ultimate goal.

Ryan Elwell

RE/MAX Realty Associates, Champaign

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 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

First, listen to their concerns to understand why they are hesitant. Second, gather regional and local market data to connect the dots and share with them current market reality. Third,

offer solution options with a fresh perspective.

Gloria Lin

5I5J Realty Co. Ltd., Buffalo Grove

I can provide enough pertinent market information to ease sellers’ fears about finding a new home. Then technology helps sellers by eliminating those who aren’t serious, qualified buyers.

Jaci Peters

Jim Maloof Realty, Inc., Peoria

My advice to sellers depends on their initial motivation for considering selling, what reservations they have, and building from there. I let them do the driving, steering me into their whys and why nots.

Shaun R. Pinkston

Director of Marketing Stephanie Sievers Senior Marketing Content Manager Dawn Tebrinke Marketing Content Specialist Bill Kozar Graphic Design Specialist Jenny Rich 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 available at www.IllinoisRealtors.org or on request. A nnual dues of every REALTOR®, REALTORASSOCIATE®, and Affiliate member include $3 for a one-year subscription to the ILLINOIS REALTOR®.

Keller Williams ONEChicago www.facebook.com/IllinoisREALTORS

Do you have a question you would like answered by your peers? Email your question to ssievers@IllinoisRealtors.org

www.linkedin.com/company/IllinoisRealtors @ILREALTOR

@IllinoisRealtors

www.youtube.com/IllinoisRealtor

PRESIDENT'S MESSAGE Our advocacy efforts must continue – at all levels of government

Sue Miller

2021 President

Real Estate Economic Impact

11.4 Billion $

Total impact of 190,453 closed sales from Mar. 2020 - Mar. 2021

Number of REALTORS® statewide

50K+ p Housing is vital to the Illinois economy. During Lobby Days, Illinois REALTORS® shared economic impact information with state legislators.

Even though we could not conduct our annual in-person lobby day this year, we still delivered our message to the top political party leaders in both chambers during the 102nd Illinois General Assembly. Simply: we need a statewide housing policy that incentivizes maintaining existing and constructing new housing of all kinds. And now! Thank you to the local associations for partnering with Illinois REALTORS® for what became Advocacy Month. From April 5 through May 3, we met with the four most powerful leaders of the Illinois General Assembly in what we called “not just another Zoom meeting.” Each session started with our CEO Jeff Baker greeting and educating each leader on the importance of the real estate industry to the state’s economy and the economic impact housing has on their district. After each of those briefings, the legislative leader walked down a television show-like walkway into our large meeting room, which had been transformed into a virtual Zoom/ television studio complete with six, 70-inch TV monitors, eight broadcast cameras and studio lighting everywhere. The broadcast showed legislative leaders in awe of the smiling faces of almost 700 members – most in their home districts – on those large screens. Each leader then was interviewed by our Senior Vice President of Governmental Affairs Greg St. Aubin on the critical importance of housing and our state’s need for more of it at all levels.

During these virtual sessions, the legislators acknowledged the real estate industry is essential to the state’s economy. And each one stated that our advocacy efforts are important. Before, during and after these virtual meetings, our legislative team saved our housing providers and renters from being subjected to an ill-fated statewide rent control policy and other potentially harmful legislation for homeowners. But more needs to be done. We need your help to secure policies that incentivize maintaining the existing housing inventory and construction of new housing of all types. We also want more equality and fairness in housing. We kicked off our advocacy month with NAR’s Bryan Greene to discuss national fair housing policy and many of you participated in our efforts to secure local fair housing resolutions. Please continue to stay in touch with your local leaders and be involved in your communities. When you hear of potentially detrimental legislation, contact the Illinois REALTORS® Governmental Affairs team and/or the GAD for your area to minimize or resolve the issue. And, when we issue Calls for Action or for you to be a witness, make those calls and sign those petitions. The legislature has a multitude of issues to address. We must ensure that atop that list is a statewide housing policy that is beneficial to your clients, your community and your business. Sue Miller Illinois REALTORS® President ILLINOIS REALTOR® July 2021

QUICK TAKES Seeing value in ‘green’ residential properties There is a market for homes with energy efficient and high performance features, according to the “2021 REALTORS® & Sustainability Report – Residential,” by the National Association of REALTORS®. Some of the findings include: u 82 percent said properties with solar panels were available in their markets and 40 percent said homes with solar panels raised perceived property values. u 65 percent of respondents said energy efficiency promotion in listings was very valuable or somewhat valuable.

u 55 percent said customers

were at least somewhat interested in sustainability. u 36 percent reported that their MLS has green data fields that they used to promote green features and energy information. u 22 percent said they’d been involved with properties with “green” features. The most popular features consumers seek included: windows, doors, siding, proximity to frequently visited places and a comfortable living space. For more details, go to: bit.ly/NAR_ SustainabilityReport_2021

Freddie Mac's surprising facts about refinancing

In memoriam

Illinois REALTORS® mourns the loss of Morton-area REALTOR® Nancy Koch, a former president of the Peoria Area Association of REALTORS® and the Illinois Real Estate Educational Foundation. In 2007, she was named Illinois REALTOR® of the Year. Koch died April 19. 6

www.IllinoisRealtors.org

As mortgage interest rates fell throughout 2020, 10.1 percent of refinances were “repeat refinances,” according to research from Freddie Mac. In other words, the loans were refinanced two or more times in a 12-month period. In 2019, 7.8 percent of refinances were repeats, while 16.6 were repeats in 2003. On average, consumers who refinanced a 30-year fixed rate mortgage into another 30-year fixed rate mortgage saved more than $2,800 in annual mortgage payments. Also, during the first quarter of 2020, about 24 percent of borrowers shortened the term of their loans. About 98 percent of refinancing borrowers chose fixed-rate loans. For more information, go to: bit.ly/FreddieMac_Refinance

Sixteen new inductees and two members reach new tier Illinois REALTORS® inducted 16 new members into its REALTORS® Political Action Committee (RPAC) Hall of Fame and celebrated two previously inducted Hall of Fame members who reached the $50,000 tier. To become state Hall of Fame inductees, REALTORS® have to invest at least $25,000 in RPAC during their careers. Illinois REALTORS® will hold a Virtual Toast celebration on July 8 to recognize the honorees for their elite status.

Congratulations to our Hall of Fame Inductees

Special Recognition to our Hall of Fame members who reached the $50,000 tier

ILLINOIS REALTOR® July 2021

LEGAL UPDATE Legal questions raised in a competitive housing market The low inventory of available residential housing across the state has created a competitive market in the residential real estate industry. The majority of calls to Illinois REALTORS® Legal Hotline center around issues generated by low inventory, competitive multiple offer situations and stiff competition for qualified buyers.

Escalation Clauses

Anneliese Fierstos Illinois REALTORS® Legal Hotline Attorney

I am a Seller’s agent in a multipleoffer situation, and we have received more than one offer with escalation clauses. How do I advise my seller? An escalation clause in a real estate contract is a clause that a buyer uses to say: “I will pay X price for this home, but if the seller receives another offer that’s higher than mine, I’m willing to increase my offer to a capped price of Y,” or even, “I will pay X above the highest offer presented by another buyer.” From a legal perspective, escalation clauses add confusion to transactions and can make things more difficult. Escalation clauses should be reviewed by legal counsel for opinions on how clauses may impact transactions. (Buyer’s agents must not draft escalation clauses. The drafting should be done by the

buyer’s legal counsel.) This is particularly true if you are dealing with multiple offers and more than one escalation clause. While the use of escalation clauses has exploded in this tight market, they can be problematic for several reasons: u Escalation clauses can create a false sense of security for buyers who feel the clauses guarantee that they will have the highest offers. u Capped prices can lead sellers to expect buyers to pay certain amounts for properties because buyers have “shown their cards.” u Escalation clauses could push buyers far above what they may be willing or able to pay. u Competing buyers become upset because their “next highest” offers are shown to sellers to determine the “escalated” prices and they lose out on properties. Consider three ways to avoid issues with escalation clauses: u Educate sellers on the problematic nature of escalation clauses at the time of listing. u Educate sellers that they can tell all buyers they will not accept offers with escalation clauses and will only consider offers with exact dollar amounts and clear terms. u Advise sellers and buyers that their respective attorneys should be consulted on all legal issues.

www.IllinoisRealtors.org

Procuring Cause

I have shown the same buyers multiple properties in my area during the last several months. Last week, they used an agent from another brokerage to make an offer on one of the homes we visited during an open house. I believe that I am the procuring cause in the transaction because I introduced them to the property. Shouldn’t I be entitled to the offer of cooperating compensation? Procuring cause is one of the hottest questions on the hotline due to a shortage of properties on the market and fewer commissions available. The National Association of REALTORS® (NAR) “Code of Ethics and Arbitration Manual,” generally defines procuring cause as the agent who originated the chain of events, without abandonment (agent leaving client) or estrangement (client leaving agent), that leads to the successful sale with that buyer. Licensees with procuring cause questions should keep the following in mind: There is no bright line rule to help determine who is the procuring cause. Illinois REALTORS® Legal Hotline will not offer an opinion on which party is the procuring cause. Illinois REALTORS® Ombudsman Program is an excellent resource for members with potential procuring cause disputes and could be a useful alternative before filing for arbitration or mediation. A final resolution to a procuring cause dispute may require arbitration by a panel that would consider all the facts and circumstances to determine who best fits the definition of procuring cause. NAR produced a

17-question “Arbitration Worksheet” that lists pertinent questions for the panel to consider. It is important to recognize that introduction to the property is only one factor that would be considered during arbitration for procuring cause claims. Although Illinois REALTORS® Legal Hotline won’t offer a legal opinion on which party is a procuring cause, one of the first questions asked of members is whether they have exclusive brokerage agreements with the buyers. This document contractually binds buyer clients to the brokerage company and their designated agents. This agreement is the best protection buyers’ agents can put into place to protect themselves from having buyer clients “poached” by other brokerages. For more information on the benefits of buyer brokerage agreements see: bit.ly/IR_ProcuringCause.

Multiple Offers

I am a listing agent. My seller clients accepted a full-price offer on their home, and the contract is still in the attorney review period. They have

now received a higher cash offer and they have asked me to cancel the first contract and accept the new offer. May I do that? Maybe. Believe it or not, this is a frequent scenario in the current market. There are many sellers willing to terminate or even breach contracts in favor of a higher offer and run the risk of having the buyer on the first contract file suit for specific performance on the new contract. In these situations, DIRECT YOUR CLIENTS TO THEIR OWN ATTORNEYS. REALTORS® must not offer their clients legal advice on the terminability of a sales contract. As a licensee, you can educate your sellers on the possibility that buyers may try to enforce contracts through lawsuits. You can point out that legal fees associated with defending such actions may outweigh any benefits attached to accepting higher offers. However, only their attorneys can provide them with the specific legal advice that they need to decide whether to terminate contracts, even if they breach contract terms. ILLINOIS REALTOR® July 2021

LEGAL UPDATE referring of leads or prospects, intended to result in the…lease or rental of real estate. 8. Assists or directs in the negotiation of any transaction intended to result in the…lease or rental of real estate. 9. …leases or offers for…lease real estate at auction.

Property Management

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. 10

www.IllinoisRealtors.org

I am a licensee sponsored by ABC REALTY, LTD. I have been approached by a local housing provider to serve as their property manager “on the side” of my real estate business. Is this permitted? No, not on these facts. Section 10-20 of the Real Estate License Act (RELA) provides that licensees must only perform “licensed activities” for one sponsoring broker. “Licensed activities” are included at Section 1-10 of RELA under the definition of “Broker.” If a licensee is doing licensed activities for another and for compensation, they are working within the scope of their real estate license. The following is the list of activities taken from the definition of Broker under RELA: 1. …rents or leases real estate. 2. Offers to…rent or lease real estate. 3. Negotiates, offers, attempts or agrees to negotiate the…rental or leasing of real estate. 4. Lists, offers, attempts or agrees to list real estate for…lease…. 5. Supervises the collection, offer, attempt or agreement to collect rent for the use of real estate. 6. Advertises or represents himself or herself as being engaged in the business of… renting or leasing real estate. 7. Assists or directs in procuring or

In some cases, REALTORS® ask if they can manage properties they own. That depends upon the ownership interest. Licensees who are 100 percent owners of property or own property jointly with their spouse can manage those properties outside of the work that they do for their sponsoring brokers. They do need to comply with the requirements under RELA and make appropriate advertising disclosures that the property is broker owned. However, if licensees have partial ownership interests in properties to be managed they could: 1. Have another brokerage manage the properties; 2. Manage “partially” owned properties as brokers (disclosing broker ownership) through their current sponsoring brokerage, assuming their sponsoring brokers want to be in this type of business, but everything including payment must flow through the sponsoring broker. 3. Own a separate licensed company to manage this and other properties, with a separate designated managing broker and a separate set of licensees sponsored by this company. In other words, licensees might be “owners” in the management companies but won’t be sponsored by these companies. This is true assuming licensees want to stay with their current sponsoring brokerages. It is highly recommended that legal counsel be consulted to do this properly.

Seeking long-term solutions for the state’s low inventory crisis By Illinois REALTORS® Staff

The 2021 housing market has been a wild one so far with inventory dropping to record lows, prices steadily shifting higher and buyers competing against each other putting in multiple offers, often substantially above the asking price. It is a story of supply definitely not meeting pent up homebuyer demand. But this year’s frenetic market also points to a larger and more systemic issue: Illinois needs more affordable and accessible housing across the board. Everyone deserves the chance for homeownership and Illinois REALTORS® have fought hard to push initiatives in Springfield this year that will further those goals. REALTORS® have been out front in calling for statewide housing policy to create more affordable housing, a need that was only made worse by the COVID-19 pandemic. REALTORS® proposed tax credits and other incentive approaches aimed at growing affordable housing and not stifling it with rent control as some opponents were advocating. Several of the measures proposed by Illinois REALTORS® have been included in an affordable housing omnibus bill approved this spring.

Bill highlights include:

u A measure that Illinois REALTORS® helped draft and support creates new property tax assessment policy that would reduce the assessed values on new or rehabbed affordable properties. u Illinois REALTORS® also backed legislation creating a state income tax credit similar to the federal Low-Income Housing Tax Credit (LIHTC). The state version could create upwards of 3,500 new homes or apartments each year in Illinois. u The bill extends the Illinois Affordable Housing Tax Credit through 2026 and provides a onetime grant to help finance affordable housing developments. u Provides for an income-based property tax assessment policy for LIHTC projects in Cook County rather than the traditional market-comp approach. u Increases the bonding authority for the Illinois Housing Development Authority (IHDA). The affordable housing legislation will make important strides towards increasing the supply of housing, but more must also be done to ensure equal opportunity. Illinois REALTORS® will continue to push for greater equality and

fairness for all in the housing market. There are still stark disparities in the homeownership rates of different racial groups, often the result of decades of discriminatory housing policies at the state, local and federal levels. Illinois REALTORS® is also helping to address the issue of discrimination in housing appraisals, an illegal practice that hinders the ability of some populations to build long-term and generational homeownership wealth. The association’s Discriminatory Appraisals Task Force is working to come up with solutions and sharing resources to help consumers report instances of discriminatory appraisals. “We have long advocated for stronger measures to address the barriers to housing opportunity. We believe that government agencies, at all levels, must work with the real estate industry and community leaders to ensure the proper steps are taken to combat housing and racial discrimination,” said Illinois REALTORS® CEO Jeff Baker. “We are committed to ensuring equal opportunity in housing throughout the state.” ILLINOIS REALTOR® July 2021

Help clients handle the stress of a hot housing market By Lee Nelson

uying or selling a home can be an emotional and stressful process. Throw in recordlow inventory and one of the most competitive housing markets in years and there is even more on the line. The market is in overdrive with buyers racing to put in winning offers and sellers prepping their homes for sale while worrying about finding their own move-up properties. Through it all,

REALTORS® can help bring down the temperature and make the whole process less stressful for everyone involved. “We are here to curb and prevent the stress before it happens,” says Sabrina Conti Erangey, co-team leader of Your Home Group at Baird & Warner, Schaumburg. “Our clients control the decision. But we control the process. That is our job.”

Why stress isn’t good

This particular seller’s market is something that even veteran REALTORS® may not have experienced before. Daily changes and the element of the unknown can cause stress on both sides of a real estate deal. According to the American Institute of Stress, many emotions, moods and behaviors happen because of stress. Dealing with stressful situations can impact consumers emotionally and physically and the current hectic and highly competitive housing market creates stressors. Thinking about money, whether it’s spending more than the asking price, or selling in a market with multiple offers, can cause unnecessary stress, sleepless nights, irritability and tension.

"We are here to curb and prevent the stress before it happens. Our clients control the decision. But we control the process." “But in any difficult situation, communication is key,” explains Drussy Hernandez, branch vice president of Brokerage Services, City Central, at Coldwell Banker Realty, Chicago. “You have to keep focused on customer service and your client’s best interests. Keep your own emotions in check. You have to do whatever your clients say – as long as 12

www.IllinoisRealtors.org

The market changes so rapidly lately that it’s hard to find comparative prices or “comps” in her area, says Marilyn Kohn, team leader of the Marilyn Kohn Team, RE/MAX Traders Unlimited, Peoria. If she meets with a seller, she runs comps. But if they don’t end up putting the property on the market within a month, she’s running the comps again at the last minute because the prices and the offers keep going up. “One of the biggest challenges for me is that a lot of buyers haven’t gotten on board with everything that is going on,” Kohn says. She had one buyer recently put in an offer $30,000 under list price for a home in a prime school district. “Those days are gone for buyers who want a good deal. They are having to adjust to that, and that is causing a lot of stress. Some people just aren’t built that way to have to buy a house at full price or

even over listing price,” she says. Kohn remains calm in order not to transfer any stress to her clients. She explains to her clients that it truly is a seller’s market right now, what all that means, what it might take to get a house, and how the whole process works. In the Peoria area, she isn’t seeing offers without contingencies from buyers as is happening in other parts of the country. “Unless they are comfortable with having no appraisal or no inspection, I would never force that on any client,” she adds. “Both sides have to be comfortable.” Many of her clients, buyers and sellers, are just worried about finding places to live. Many want to take advantage of the low interest rates but are more concerned with finding their next homes. They also worry about submitting strong enough offers to buy homes before someone else does. Kohn has helped people buy properties in Peoria recently from California, Oregon, Utah, Texas and other states. “It’s been interesting. One family had to evacuate twice because of forest fires in California. Their house did survive each

time. But the second time, the decided they were done,” she says. They have elected to come to Peoria. Most of the clients moving are working remotely, so they can pick anywhere they want to move. The people Kohn has been working with decided to come to the middle of the country because they feel it is a nice, safe place. “We have tornadoes, but we don’t have forest fires or huge floods like Louisiana and Texas,” she says. “They are close to Chicago and St. Louis. It has surprised me somewhat. We don’t have the attractions of the bigger metropolitan areas. But people are looking for nice, secure places to live.” When Hernandez deals with clients becoming emotionally charged and invested in getting a certain house, she asks questions such as: “Is this the house you really want?” “Then they need to realize that they need to stay at the negotiating table as long as this is the property they want,” she adds. “Keep calm, remain objective and communicate well” has become her mantra during this unprecedented real estate era.

Sabrina Conti Erangey

Drussy Hernandez

Marilyn Kohn

it’s legal and ethical – and do the best to protect their best interests.”

Be flexible, open and informative to help clients

ILLINOIS REALTOR® July 2021

Help clients feel calm

These three experienced REALTORS® have developed their own styles to ease the anxiety within their buyers and sellers – even during this crazy market. Here are their tips for reducing client worries: u Consider holdover

provisions for your sellers

Use reverse contingencies if your sellers need to rent homes back from buyers until they find new homes, says Erangey. The sellers don’t feel stressed about where they are going to go and buyers are happy when they find their dream homes. Sellers and buyers should consult their respective attorneys when it comes to drafting contingencies.

u Explain sellers’ perspectives This is key and important during negotiations, Hernandez says. “It’s easy for buyers to get caught up with their own emotions and forget that sellers will have their reactions.

Asking the listing agents questions about the sellers’ perspective will help during these conversations.” u Keep in touch “I keep sellers posted on what’s happening – especially any feedback from all the showings,” Kohn says. “For buyers, I put them on drips, so they see everything as it comes into the market.” She also responds quickly with texts, calls or emails, and she does not turn her phone off at 6 p.m. and turn it back on at 9 a.m. “If they can reach me and I respond quickly, that is a calming effect.” u Manage expectations upfront “We want our clients to feel there is no need to be worked up and worried, because I’m not,” Erangey says. “We set the expectations and explain that certain things might happen. You go through those expectations multiple times.”

u Be at each final walk through

and closing

This way you can address any of the buyers’ own concerns, Hernandez explains. “I like to work with attorneys who believe in customer service like I do. The closing is an exciting process, but nerve-wracking as well. It’s important for clients to trust the process and teaming up with an attorney who works the same way is essential.” u Have an attorney add in clause

about inspection for buyers

Kohn has a clause added to many offers saying buyers can be responsible for up to $2,500 in repairs. “This gives sellers peace of mind, and sellers know they won’t be nitpicked to pieces when inspections come through.”

u Give a copy of an offer before

even looking at a house

“The first time you see a contract should not be when you are about to sign it,” Erangey says. “Explain to your clients that this is what it looks like, and these are the things you should expect to see on it.”

REALTORS® can be so pivotal in managing their clients’ stress, Erangey adds. “You have to go through things with a fine-tooth comb for them,” she says. “We are the X factor – the factor that manages everything, especially those feelings of stress.” About the writer: Lee Nelson is a

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

www.IllinoisRealtors.org

ILLINOIS REALTOR® July 2021

Illinois Young Professionals Network

Want to become a better leader? Join a YPN

Krista Becker

Moses Hall

Erika Villegas

Listen to the podcast of this discussion at: Podcast. IllinoisRealtors.org

www.IllinoisRealtors.org

REALTORS® involved in a Young Professionals Network (YPN) can identify and develop leadership skills, boost their confidence, build relationships and learn other valuable lessons. Those are a few of the observations shared by Chicago-area REALTORS® Moses Hall and Erika Villegas and Texas REALTOR® Krista Becker during the podcast, “YPN to Leadership.” They took turns answering questions from Illinois YPN Chair Megan Beechen about their own leadership development experiences and encouraging fellow REALTORS® to get involved with local and state YPNs. “With a local association, there’s absolutely no better time for you to find a tribe or find resources than right away,” says Becker, a volunteer YPN leader on various levels since 2011. She says the relationships she formed with colleagues while working in the state of California laid the foundation for her most recent success as a member of the National Association of REALTORS® YPN Advisory Board. “If it wasn’t for the connections we’ve made or the relationships we built through YPN, it wouldn’t have been as easy for me to help others throughout the association.” REALTORS® interested in developing their own leadership skills can start by identifying small ways to be of service in their own brokerages or offices, says Villegas, a partner and designated managing broker at RE/MAX in the Village in Oak Park and a partner for RE/ MAX Town and Country in Aurora. For example, members can help newcomers handle situations they have never faced before. If those kinds of opportunities do not exist, she suggests members get

their feet wet by volunteering for local association committees or finding ways to support local communities, businesses and charities.

How has YPN helped you?

“Before I became involved in YPN, I realized I was getting drained and I wasn’t operating at my best,” says Hall, broker-owner of MoHall Commercial & Urban Development and a member of REALTOR® Magazine’s 30 Under 30 Class of 2019. “It helped me to set boundaries and start time-blocking. I had to learn my limitations. I learned that I don’t have to say ‘yes’ to everything. Setting boundaries allowed me to be more efficient in almost every aspect of my life.” Becker says it is critical for leaders to develop a thick skin when it comes to decision making. Also, she learned an important lesson after a particularly long stretch of work without a break. “I think it is really important to take time to step away from your job and have downtime,” she says. “Take four hours a week and remove yourself from outside influences: social media, your phone, your clients and even your family and friends.” Villegas says that committee involvement with her local association, the Chicago Association of REALTORS®, as well as involvement with the National Association of Hispanic Real Estate Professionals (NAHREP) and with the Illinois REALTORS® have all contributed to her growth. To be a great leader, she continues to work on her listening skills.

What has been the most exciting moment in your leadership journey?

“The Illinois REALTORS® Global Symposium that we just had was my

most exciting moment. We had experts from China, Canada and all over the world,” says Hall, a 2020 NAR Commercial Economic Issues and Trends chair and current member of the NAR Board of Directors. “They shared perspectives about retail, industrial, vacation homes and buying patterns. We got tremendous reviews. People really loved it. We couldn’t have done it without vice chair Andy Velkme and Illinois REALTORS® staff.”

association activities and her personal life, Villegas says: “I sort of have compartments. When I am at the office, I do that really well. When I am at a board meeting, I try to do that really well. When I am at home, I try to do that really well. When something is important to you, you’re going to make time for it. Maybe that’s balance.”

Any tips for balancing work, committees, leadership and life?

“I would encourage those who are on the fence about involvement with YPN to just do it,” says Hall. “It will teach you so much, not just from a business

Although she initially resists the idea that she can balance her work, her

Successful leaders step out of comfort zones

standpoint but personally, too. It brings out of you what you did not realize you had in you. Getting involved in our industry, in our association, has taken my career to the next level.” Becker, who is a member of the NAR YPN Advisory Board representing Region 10 and is on the NAR MLS Committee, agrees. “I think everybody has some leadership skills because there are so many different types of leadership roles and leaders,” she says. “Some just are not aware of what leadership skills they possess because they haven’t been forced to use them yet.”

ILLINOIS REALTOR® July 2021

Working with senior clients By Lee Nelson

Dympna Fay-Hart

Paige Hume

www.IllinoisRealtors.org

At 94 years old, Lorraine lived alone, still drove, took no prescriptions, and never wore glasses. But when her health worsened, Dympna Fay-Hart became her go-to person to sell her condo and everything in it, and to find her a permanent residence. “I was called to action to organize her life so it can end properly,” says Fay-Hart, broker associate at Dream Town Realty in Chicago. Fay-Hart holds a Seniors Real Estate Specialist (SRES) designation, allowing her to better serve the growing number of seniors and others needing more than just someone to put their homes on the market or find the right homes. “(My client) has a list of things for me to do every time I visit her,” Fay-Hart says. But that’s OK with her. “The money becomes less important, and the stories are more important. The stories fascinate me,” she explains. “We become goodwill ambassadors to those who find us.” For some REALTORS® there is

professional reward in working with some of the most vulnerable clients, whether they be seniors without family to help make decisions, recently widowed spouses, those with health issues or even hoarders. It’s not easy work, and she admits commissions may take a long time to achieve, if ever. Sometimes she works with clients and their families for more than 18 months. “This job isn’t for everyone,” she explains.

Making seniors your niche

Getting that warm hug at a closing becomes the reward for Paige Hume. “When I saw the SRES designation, I thought this was perfect for me,” says Hume, broker at Worrell Land Services, Jacksonville. She’s the only agent to hold that designation in Morgan County. She says the most effective characteristics for working with the elderly population are patience and understanding. Sometimes, she helps widows, who have never made decisions before. “I always ask myself when I walk into these situations: How would I want someone to treat my grandparents?” Hume adds. She makes sure clients understand the process and answers any questions. She wants them to have control of what is happening. If working with spouses, Hume says she tries to be sensitive and watch the dynamics of the couple. She helped an elderly couple sell the home they’d lived in for decades, a number of outbuildings and the surrounding five acres of property. “I sold their house within a few days. But we had a time crunch. They had 30

days to get out, and they were in their 80s. I was constantly in communication with them,” she adds. At the closing, they still needed to clean up the barns. Hume offered the help of her husband, two college kids, and a trailer to finish up the work. “We got them taken care of. The woman gave me a hug on the closing day. I never expected that. I didn’t know how she was feeling,” Hume says. Above all, she suggests REALTORS® working with vulnerable clients be honest in a gentle way. “Your tone matters. Don’t look at their home like a number. Understand what you are walking into. If you don’t have the stamina or stomach for it, then

hand it over to a co-worker who can handle it,” Hume says. Fay-Hart suggests anyone thinking of working with vulnerable clients grow a dream team of trustworthy people who can help your clients. The team can include furniture movers, house cleaners, painters, landscapers, floor specialists, elder law attorneys and senior organizations in your area. At this point in her career, Fay-Hart enjoys the wisdom that comes with professional experience and knowing she can provide extra help and insight when the situation calls for it. “At the end of everything, it’s the good works we did when no one is looking,” she adds.

Interested in better serving your senior clients?

The Seniors Real Estate Specialist (SRES) designation gives you the knowledge and expertise to guide senior homebuyers and sellers through the real estate process. Learn more at: https://sres.realtor

ILLINOIS REALTOR® July 2021

Expertise, heart are key to helping hoarders By Lee Nelson

Five tips for working with hoarders and/ or those with overly cluttered homes: 1. One or more big cleans will likely be necessary. Obtaining consent and working collaboratively becomes the key. 2. Develop a category system. For example: things I need to function daily, sentimental things I want to keep or pass on (set reasonable limits), things I can part with. 3. Keep a hoarding mindset when reorganizing. Hoarding can be a very grounding behavior for some people. The stacks and tunnels often provide a sense of safety and coziness. Open concepts may not be good in these situations. 4. Plan for the space to get cluttered again. Budget for and/or schedule time for a company, friend or family member to visit monthly to maintain the space. 5. Plan for junk drawers and spaces where unorganized storage is OK.

Emily O'Hara 20

www.IllinoisRealtors.org

reparing a home for sale means decluttering and winnowing down possessions, but some severe situations veer into hoarding, which can be a challenge for REALTORS® working with clients. “Hoarding in itself is the epitome of an externalizing behavior. They may cling to material items as sources of comfort,” says Emily O’Hara, a licensed clinical health psychologist in Chicago. There are ways to navigate this situation gently and without risking re-traumatization of someone who may have sought comfort in the items they collected over the years, O’Hara says. Skip Curlott, franchise owner of Spaulding Decon Co. in Chicago, offers hoarding cleanup services and works with REALTORS® and homeowners to restore properties. There are difficult situations, but if you focus on the fact that you are doing this job to help someone improve their life, it makes it worthwhile, says Curlott. “We talk them through it and are respectful,” he adds. “There’s always a side of them that wants to be clean and organized. Once they start to see some progress, then things start to move faster.” Curlott and his company use the Clutter

Hoarding Scale created by The National Study Group on Compulsive Disorganization as a guide for accessing the situation: 1. Level One: Clutter is not excessive, doors and stairways are accessible, there are no odors, and the home is safe and sanitary. 2. Level Two: Clutter inhabits two or more rooms, light odors, overflowing garbage cans, light mildew in kitchens and bathrooms, one exit is blocked, some pet dander or pet waste puddles, and limited evidence of housekeeping. 3. Level Three: One bedroom or bathroom is unusable, excessive dust, heavily soiled food preparation areas, strong odors throughout the home, excessive amount of pets, and visible clutter outdoors. 4. Level Four: Sewer backup, hazardous

electrical wiring, flea infestation, rotting food on counters, lice on bedding, and pet damage to home. 5. Level Five: Rodent infestation, kitchen and bathroom unusable due to clutter, human and animal feces, and disconnected electrical and/or water service. For Curlott, the most important element of working with these clients is to be a good listener. “You are there to help them, and the last thing you want to do is make them more anxious,” he adds. “Let them know you are there to help them and let them know they will get through this.”

Skip Curlott

ETHICS Ombudsman Program: Dispute resolution for REALTORS® and consumers u Are you at an impasse with another REALTOR® regarding one of your transactions? u Do you wonder if your offer has been presented?

Becky Carraher

Director of Ethics and Professional Standards

In 2020, there were 265 requests for Ombudsmen services with 73 percent resolved to the satisfaction of the person filing the request.

u Do you need to know the status of your client’s earnest money? u Why won’t the other REALTOR® respond regarding a showing appointment? u Why has my real estate company not received the commission check for the rental property where I found a tenant? Try the Illinois REALTORS® Ombudsman Program, which uses a confidential process to assist members when professional issues like these arise.

The program fields complaints and answers questions based on transactions, the Code of Ethics and commission disputes, to name a few examples. However, an Ombudsman cannot give legal advice or advocate for one person over another. The Ombudsman can provide guidance on what steps to take, suggest additional resources and in most cases act as an intermediary in resolving basic problems or disputes. Many disagreements do not require the filing of formal ethics complaints, can be easily resolved and therefore offer speedier resolutions. Once request forms are submitted, you will be contacted by an Illinois REALTORS®-trained Ombudsman within 24 hours. The Ombudsman assigned to your request will get permission from you to contact the other REALTOR® and share any information you would like to communicate with the other party. The Ombudsman will then help the parties resolve the issue(s). In 2020, there were 265 requests for Ombudsmen services with 73 percent resolved to the satisfaction of the person filing the request. As you can see, this process has been highly successful. However, if satisfactory results do not occur, the parties can file traditional ethics complaints, with the state licensing authority or file lawsuits if circumstances warrant. For more information on this program or to submit a request, please visit www.IllinoisRealtors.org/Ethics/ Disputes.

ILLINOIS REALTOR® July 2021

AT THE CAPITOL Virtual Lobby Days: Bringing Illinois’ legislative leaders to you

During Advocacy Month in April and early May, nearly 700 Illinois REALTORS® streamed in from around the state to show Illinois’ top legislative leaders the influential power of the real estate industry. They joined Illinois REALTORS® CEO Jeff Baker and the Governmental Affairs team in conveying our desire to increase fair housing for all and eliminate legislation that would damage the rights of private property owners and the real estate industry. Senior Vice President Governmental Affairs Greg St. Aubin, Senior Advisor Governmental Affairs Betsy Mitchell and Manager of State Government Affairs Jim Clayton followed up virtual Lobby Days events by demonstrating our value to legislative leaders and strengthening our relationships with them. Stay up-to-date on legislative action of interest to Illinois REALTORS® with the State Capitol Report. bitly/IR_ StateCapitolReport

www.IllinoisRealtors.org

Illinois REALTORS® Senior Vice President, Governmental Affairs Greg St. Aubin (center) interviews Illinois House Speaker Emanuel “Chris” Welch (right).

President Sue Miller welcomes Illinois REALTORS® to the 2021 Virtual Lobby Days.

Illinois REALTORS® Treasurer Michael Gobber enters the studio for the final Lobby Days event.

Illinois REALTORS® President-elect Ezekiel “Zeke” Morris gets ready to go live during the second event.

Illinois REALTORS® CEO Jeff Baker (right) talks with House Republican Leader Jim Durkin (left).

Illinois House Speaker Chris Welch, D-7th District, was the featured guest for the first Lobby Days event. In January, Welch was elected the state’s first Black Illinois House of Representatives Speaker.

Manager of State Government Affairs Jim Clayton (right) welcomes Speaker Welch to Illinois REALTORS® Lobby Days.

Illinois Senate President Don Harmon, D-39th District, joined Illinois REALTORS® for the second Lobby Days event. Harmon has led the Illinois Senate since 2020.

Senior Advisor, Governmental Affairs Betsy Mitchell (right) poses with Senate President Harmon.

Senate Republican Leader Dan McConchie, R-26th District, (left) and House Republican Leader Jim Durkin, R-82nd District, were the guests for the third and final Lobby Days event.

Illinois REALTORS® staff work the Zoom feeds and camera equipment. Illinois REALTORS® Executive Vice President Kristen Butcher (left) led that effort.

Greg St. Aubin sits in the Illinois REALTORS® Lobby Days studio flanked by a wall of monitors that allowed hundreds of members to participate virtually over the course of three interviews with Illinois legislators.

ILLINOIS REALTOR® July 2021

www.IllinoisRealtors.org

COMMERCIAL CORNER C5: Capital, Connect, Commerce, Community, Commercial

Alex Ruggieri

CRE, CCIM, CIPS, SEC Contributing editor to Commercial Corner. He is a senior investment advisor with SVN-Ramshaw Real Estate in Champaign.

Download the C5 Summit app All attendees will have access to the matchmaking technology of the C5 Summit mobile app.

1. Attendees and sponsors can connect based on mutual interests and can set up on-site or virtual meetings. 2. Select an available time and location to meet, or easily reschedule if needed with a few clicks. 3. Make valuable connections in the Deal Room, Consultation Suites or at exhibit booths with 15-minute meetings!

Get ready for the greatest commercial expo experience ever presented by the National Association of REALTORS® (NAR) – C5. What is C5? Three days of commercial real estate networking, education and dealmaking in the heart of New York City!

Why should you attend?

NAR has packed C5 with an array of speakers, sponsors and exhibitors. It promises to be a world-class event for commercial real estate practitioners. Industry influencers from across the country (and the world) will be attending. Similar to the international MIPIM event held in Cannes, France every year, C5 will attract industry partners, including state and local associations, economic development organizations as well as domestic and international investors. The lineup of speakers for the event reads like a “who’s who” list of luminaries from the commercial real estate industry. They include Charlie Oppler, 2021 President of NAR, Lawrence Yun, Chief Economist of NAR and Alex Rodriguez,

Chairman and CEO of A-Rod Corp., former professional baseball player and awardwinning sports commentator to name just a few! See the full list of speakers at: C5summit.realestate/speakers

Why attending is so important

Personally, I can attest to the value of attending and networking at conferences. I have literally built my commercial brokerage business by strategically building relationships throughout our industry. I have succeeded by attending conferences within our trade organization. Whether it is a Counselor’s of Real Estate event, a CCIM mixer or NAR’s annual conference; each offers the opportunity to meet and network with industry leaders, investors and brokers who can help you build your business and grow your network. C5 promises to be “the” event to attend this year for commercial practitioners. In the future, I am sure it will grow to be the “must attend” event for our industry and the world. Hope to see you there!

u Register Today! C5summit.realestate ILLINOIS REALTOR® July 2021

www.IllinoisRealtors.org

EDUCATION Get a competitive edge

Young Brockhouse

Vice President, Professional Development

Professional Endorsement Spotlight:

C2EX NAR’s Commitment to Excellence endorsement (C2EX) is completely free and is available online. You can complete the program at your own pace. The C2EX Endorsement addresses 11 key REALTOR® competencies and also fulfills the REALTOR® Code of Ethics Requirement.

Is earning designations, certifications and endorsements worth your time and investment? The answer, is “yes,” of course, but why? Let’s talk about how you can benefit from earning professional development credentials. u They show you have met a standard of competence. u They provide evidence of your hard work and customer service focus. u They are conversation starters. The letters behind your name can provide opportunities to talk about your specialized training and how you put it to work for your clients. u They can boost your earning power. NAR surveys reveal that REALTORS® who hold designations and certifications earn more on average than their peers. u Designation, certification and endorsement courses can teach you new aspects of the real estate business. u Training that goes beyond the basic licensing courses elevates you to a higher level of performance. Courses are accessible in live, virtual and online formats.

Scholarships are available

The Real Estate Educational Foundation (REEF) offers scholarships for pursuing select designations and certifications. u Rich Port Scholarship − GRI designation u Past Presidents Scholarship − GRI, CRB, CCIM, CIPS and RCE designations u Illinois Minority Real Estate Scholarships

NAR offers monthly specials

In July, REALTORS® can save 20 percent on Certified Real Estate Brokerage Manager (CRB) designation courses, Pricing Strategy Advisor (PSA) certification courses and the Accredited Buyer’s Representative (ABR) course, NewHome Construction and Buyer Representation: Professionals, Product, Process. You will find more information about designations, certifications and endorsements on Illinois REALTORS® website, including courses you can purchase from our online learning library and classroom calendar. ILLINOIS REALTOR® July 2021

REALTORS® show their support for local candidates, local issues in 2021 Illinois REALTORS® has greatly expanded its involvement in municipal elections and 2021 raised the bar even higher. RPAC contributions and Independent Expenditures supporting candidates in the April 2021 municipal elections set a new record.

Mike Scobey

Illinois REALTORS® Director of Local Advocacy

Local election activity

The REALTORS® Political Action Committee (RPAC) made direct contributions to 114 candidates who ran for village president, city council, village trustee and a handful of township offices. This is the most candidates we’ve supported in a single municipal election cycle. Of the supported candidates, 68 percent won their respective races.

Our involvement included some larger municipalities in Illinois: u Aurora u Bloomington u Edwardsville u Naperville u Normal u Oak Park u Rockford In addition to RPAC contributions, Illinois REALTORS® also provided Independent Expenditure (IE) support to 20 candidates in highly competitive municipal races. Sixteen (or 80 percent) won their respective races. Illinois REALTORS® Manager of Political Programs Alex Finke spearheaded our

Advocacy success story − municipal inspections

A focus of recent local advocacy efforts has been to reform municipal property inspection programs. Several Illinois municipalities have “point-ofsale” home inspection requirements and rental property requirements. 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. A recent example of success was in the village of Round Lake Beach. In March, the village approved a series of changes to long-standing property regulations that will positively impact home buyers, home sellers, housing providers and REALTORS® in the community. This action comes after

www.IllinoisRealtors.org

months of discussions between REALTORS®, Local GAD Joe Roth and village staff/officials. The changes impact presale occupancy inspections and rental inspections as well as the foreclosed and vacant property registry.

accommodate closing times. This approach — allowing a private home inspection to satisfy the municipal requirement — is novel and we hope it may be emulated in other municipalities.

Presale occupancy inspections

The village currently requires rental properties to be inspected and registered annually. With the changes enacted, inspections will now occur when tenants change or every four years, whichever is sooner. The change dramatically reduces the burden on village staff, property owners and tenants.

For years, the village has required occupancy permit inspections prior to closings. Now, buyers can hire licensed home inspectors to satisfy the inspection requirement and provide proof it was completed. The village will continue to inspect water meters prior to closing. Once issued, the occupancy permits will be valid for 45 days to

Rental inspections

Illinois REALTORS® July 2021

Articles inside

Quick Takes

Expertise, heart are key to helping hoarders

Community