Illinois REALTOR® October 2018

THE OFFICIAL PUBLICATION OF ILLINOIS REALTORS®

THE VOICE FOR REAL ESTATE IN ILLINOIS

OCTOBER 2018

CLEARING THE HURDLES OF NEW AGENT TRAINING

Build your business with Capital Celebration

Bicentennial Plaza dedication

www.IllinoisRealtors.org

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CONTENTS

OCTOBER 2018

CLEARING THE HURDLES OF NEW AGENT TRAINING p. 13

Departments

ILLINOIS REALTORS®

Advocacy • Education • Ethics • Legal • Outreach

5 President’s Message: Reaching out to all parts of the association’s membership

Features

6 What’s Online

13 Clearing the hurdles of new agent training

8 Legal Update: Misleading advertising tactics and how to avoid them

16 Bicentennial Plaza Dedication

10 Quick Takes: New legal video series; Good Neighbor finalists; Pets sway homebuyer choices

19 Marking 200: REALTOR® associations and their service projects

26 At the Capitol: 2018 Spring Session recap

24 How to use LinkedIn to build business

29 RVOICE: Grassroots action makes a difference

32 Proposed change to the REALTOR® Code of Ethics addresses offer confirmations

31 Member Outreach: Join the REALTOR® Party

33 Ombudsmen find success in settling disputes

34 Market Watch 35 REALTOR® Community

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PRESIDENT’S MESSAGE Matt Difanis | ABR, CIPS, GRI | 2018 President

IN 15,000-MILE DRIVE TO ENHANCE ASSOCIATIONS, NEW FRIENDSHIPS AND CELEBRATIONS ABOUND

REALTORS® Vicky Silvano, Courtney Jones, Frank Williams, Ed Neaves, Doug Carpenter and Matt Difanis, HUD Midwest Administrator Joseph Galvan, Springfield Alderman Herman Senor, Illinois REALTORS® CEO Gary Clayton, Springfield Mayor Jim Langfelder and REALTOR® Loretta Alonzo-Deubel.

Brian Bernardoni, Senior Director of Government Affairs and Public Policy for the Chicago Association of REALTORS® (CAR); Tommy Choi, 2019 president of CAR; Illinois House Speaker Mike Madigan and Illinois REALTORS® 2018 President Matt Difanis.

Illinois REALTORS® in pictures 2018 President Matt Difanis has a passion for photography.

He shares his images of association members and events at www.facebook.com/difanis2016.

In October, 2017, I began the year as Illinois REALTORS® president with a mission of reaching out to all of the association’s membership.

In my inaugural speech I presented what I thought was an imperative for this association, and indeed any association: Avoid irrelevancy due to a failure to engage with the rich diversity we find in our state.

With that goal in mind, the association’s volunteer leadership worked to encourage the best people to apply for the Board of Directors. The result? One of the most diverse groups of incoming board members the association has ever had.

Relationships take time and constant attention.

In the process of working to build bridges within our industry, I logged more than 15,000 miles, reaching just about every corner of the state. In a sense, I didn’t make any of these journeys alone.

Whatever effort I made was more than matched by those of volunteer leaders at the state and local levels who made sure that the message of inclusion was prominent.

Together, we made a difference for the industry.

We made a statement by making sure a monument honoring the 50th anniversary of the federal Fair Housing Act was a prominent part of the new Bicentennial Plaza, a REALTOR® Commmunity Partnership located next to our headquarters in Springfield.

And speaking of Bicentennial Plaza, we celebrated the state’s 200th birthday with a Signature Bicentennial Event attended

by Gov. Bruce Rauner and his wife, first lady Diana Rauner, on Constitution Day, Aug. 26.

Internationally, we fielded the largest delegation among the many NAR-affiliated groups at MIPIM, one of the largest real estate conferences in the world held annually in Cannes, France.

And, at the state Capitol, we beat back numerous bills which would have cost the industry money and hurt consumers.

Yes, it was quite a year.

Through it all, I am grateful for the many kindnesses along the way. Our leadership and our members make me proud to be an Illinois REALTOR®.

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ILLINOIS REALTORS® THE VOICE FOR REAL ESTATE IN ILLINOIS 2018 OFFICERS President Matt Difanis, ABR, CIPS, GRI matt@mattdifanis.com

WHAT'S ONLINE REAL PROPERTY ALLIANCE REDESIGNS CONSUMER-FOCUSED WEBSITE.

Treasurer Ed Neaves eneaves@thesnydercompanies.com Immediate Past President Doug Carpenter, ABR, AHWD, GRI, SFR doug21@comcast.net Chief Executive Officer Gary Clayton, CAE, RCE 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 ­October 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 ar ticles of the ILLINOIS REALTOR ® are those of the author and do not necessarily represent the opinions of the Illinois R ­EALTORS ®. Adver tising of product or services does not imply endorsement.

Advertising rates are available at www.IllinoisRealtors.org or on request. ­Annual dues of every REALTOR®, ­REALTORASSOCIATE®, and Affiliate member include $3 for a oneyear subscription to the ILLINOIS REALTOR®.

VOLUME 55: NUMBER 4 Copyright © 2018 Illinois REALTORS® All rights reserved. www.IllinoisRealtors.org info@IllinoisRealtors.org blog.IllinoisRealtors.org

Real Property Alliance has redesigned its website, celebrating four years of providing consumers with information they need to protect private property rights.

The redesign places an emphasis on key issues Illinois property owners should be aware of, including the impact of transfer taxes and Home Rule.

Real Property Alliance is the non-profit, educational arm of the Illinois REALTORS® which provides insight and analysis for Illinois property owners. It seeks to provide a voice for real estate policy that promotes growth and limits taxes and regulations that make it harder to live and work in the state. www.RealPropertyAlliance.org

ILLINOIS REALTORS® FAQS Have a question for Illinois REALTORS®? You may not be the only one. Find answers to some of our most frequently asked questions on issues including education, designations, licensure and Illinois housing and market stats. www.IllinoisRealtors.org/About/FAQs/

JOIN ILLINOIS YPN Illinois Young Professionals Network (YPN) is open to Illinois Young all Illinois REALTORS® who are young in the business, Professionals looking for valuable resources to stay on top of the Network latest trends and tools within real estate, while having fun and making lifelong connections with peers in their area. bit.ly/Join_YPN www.IllinoisRealtors.org/YPN

GET SOCIAL WITH ILLINOIS REALTORS® Illinois REALTORS® offers a number of way for you to connect with us on social media including: https://www.facebook.com/IllinoisREALTORS

Like us on Facebook.

Join us on LinkedIn. Follow @ILREALTOR on Twitter.

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LEGAL UPDATE Elizabeth A. (Betsy) Urbance | General Counsel and Vice President of Legal Services

AVOIDING MISLEADING ADVERTISING TACTICS AND OTHER LEGAL ISSUES QUESTION: Recently, a broker in my area was advertising her listings well below the actual market price (or maybe even her agreed listing price), in order to attract multiple offers. This appears to be some sort of “program” or “strategy” used by the broker, and the broker might be training other brokers in this “method.” The property is listed in the regular section of the Multiple Listing Service (MLS) listings for sale. It is not placed in the MLS section reserved for auctions. Do you see any problems with this method of marketing listings?

ANSWER: My answer to this question is an emphatic yes, there are issues, absent any other actions or facts to help a consumer understand the situation. This strategy is problematic under both the Illinois Real Estate License Act (the Act) and the REALTOR® Code of Ethics. A REALTOR® has both a legal and ethical obligation to present a true picture in all representations made, whether in advertising or anywhere else, i.e. an MLS. If, in the broker’s professional opinion, a reasonable listing price for a property is $500,000; to advertise that property for $150,000 (without any qualifying or explanatory language)

is both unprofessional and misleading to consumers. The facts presented here suggest no specific qualifiers or indications that the property being marketed is the subject of an auction or a bid-collecting situation, where the bidding is to start at $150,000.

Arguably, the situation could be saved by adding provisions such “Bids starting at $150,000,” or “Property subject to auction.” The broker should add language explaining to consumers that $150,000 is not the expected ultimate sales price but a starting point for bids or offers until the market dictates the true selling price. Just how much clarification language is needed to avoid charges of misleading advertising will be the subject of factual analysis in

the context of a complaint case.

The $500,000 listing should not be placed in the regular listing section of the local or regional MLS. If the MLS has a section for auctions, this would be the appropriate spot for this type of listing on these facts. In short, the broker should clearly explain what is occurring.

To advertise or represent a property for sale at thousands below what the actual market value should be without offering any qualifiers or explanation would fail the “reasonable person” test for truthful advertising under both the Act and Code of Ethics. In addition, this becomes difficult for cooperating brokers in the area who field inquiries from buyers whom, while they might be financially qualified to purchase a $150,000 property, are clearly not financially able to buy at $500,000.

Facts must be assessed to determine whether the marketing price that might start below the expected market value of the property becomes so unreasonable as to be, in fact, misleading.

NOTE: Views expressed are those of the author based only on the facts presented.

HAVE A LEGAL QUESTION? The Illinois REALTORS® Legal Hotline is the Designated REALTOR®/ managing broker’s go-to source for legal information.

Phone: (800) 952-0578 • Email: burbance@IllinoisRealtors.org • Hours: 9 a.m. - 4 p.m. Monday – Friday 8 www.IllinoisRealtors.org

QUESTION: We read that there were some recent amendments to the Illinois Real Estate License Act (the Act). Please summarize those changes.

ANSWER: Gov. Rauner signed House Bill 5210 which amends the Act and the changes will become effective on Jan. 1, 2019.

Among some technical changes to the Act, there are two substantive changes about which brokers should be aware: Change #1: The Act currently provides, at Section 10-20(e), that a licensee can form a one shareholder corporation for the purpose of receiving her compensation from the licensee’s sponsoring brokerage company, even though the human licensee is the one that has an independent contractor/employment contract with the sponsoring company. There was always some confusion as to whether the entity receiving the owner licensee’s compensation had to be a corporation.

The amended provisions allow for the formation of a one-owner (one licensee) business entity. Thus, a onemember Limited Liability Company (LLC), could be used for this purpose.

Note that the one-owner entity is not

licensed as a real estate brokerage, does not conduct its own, separate brokerage business; but it does have a stated purpose of receiving real estate compensation earned by the licensee owner. For clarification, see Section 1450.745 in the current* Administrative Rules under the Act. (bit.ly/RELA_AdminRule) Also, check out Jeff Baker’s recent DR Legal News article on the subject [bit.ly/License_ Act_Changes].

Change #2: Another change to the

Act is that the branch office license requirement is eliminated. Instead, the Illinois Department of Financial and Professional Regulation (IDFPR) will require the sponsoring brokerage company to maintain a list of physical office locations. Illinois REALTORS® will continue to keep the membership informed as to new developments on IDFPR’s administration of this provision. *Revised rules pending

STATEMENT OF OWNERSHIP, MANAGEMENT AND CIRCULATION The ILLINOIS REALTOR® (ISSN0744-2211) is published four times a year (January, April, July, October) for $3.00 per year by the Illinois REALTORS ®. The offices of publication and the headquarters and general business offices of the Publisher, Gary Clayton, are located at 522 S. Fifth Street, P.O. Box 19451, Springfield, IL 62794-9451. The sole owner of the publication is the Illinois REALTORS® at the address listed above. There are no known bondholders, mortgage or other ­security holders.

Total # copies (net press run) Paid/requested subscriptions Sales through dealers and carriers Other classes mailed through the USPS TOTAL PAID DISTRIBUTION Free distribution by mail Free distribution mailed at other classes Free distribution outside the mail Total free distribution TOTAL DISTRIBUTION Copies not distributed TOTAL Percent paid

Avg. # copies ea. issue during last 12 mos.

47,290 46,129 0 15 46,144 23 32 17 72 46,216 1,074 47,290 97.73%

Actual # copies single issue nearest filing 46,225 44,690 0 13 44,703 23 25 0 48 44,751 1,474 46,225 99.89%

I certify that the information stated is true and complete.

Jon K. Broadbooks, Editor

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QUICK TAKES NEW VIDEO SERIES: LEGAL BRIEFS WITH JEFF BAKER AND BETSY URBANCE Don’t miss our new video series, “Legal Briefs” starring (cartoon versions of) Illinois REALTORS® General Counsel and Vice President of Legal Services Betsy Urbance and Associate General Counsel Jeff Baker. These videos will touch on important legal issues that often arise in the real estate industry.

Episode 1, online now, looks at the issues that arise when forming broker teams under the umbrella of a sponsoring brokerage, including when to register as an assumed name, advertising requirements, and how license law affects those decisions.

Look for more episodes in the coming months.

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In August, the Internal Revenue Service (IRS) issued proposed regulations for a new 20 percent business income deduction. The 2017 federal tax reform law included the deduction for individual owners of sole proprietorships, including independent contractors and owners of S corporations, LLCs or partnerships.

NAR successfully advocated to make sure the interpretation of the deduction is “available to a wide range of real estate professionals.” NAR has more information about the IRS guidance on the deduction, FAQs and the IRS proposed rules. bit.ly/BusinessIncomeDeduction

DAN WAGNER RESIGNS

PERSIN AND LAFARGUE CHOSEN AS NAR GOOD NEIGHBOR FINALISTS Congratulations to Jack Persin, of Naperville, and Michael LaFargue, of Chicago, for being among 10 finalists for the National Association of REALTORS®’ 2018 Good Neighbor Awards.

Persin, with Baird & Warner in Naperville, co-founded Naperville Responds for Veterans.

Jack Persin

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LaFargue, with Coldwell Banker Residential in Chicago, is being recognized for his volunteer leadership with West Chesterfield Community Association.

The Good Neighbor Awards recognize REALTORS® who make extraordinary commitments to improving

Michael LaFargue

the quality of life in their communities.

Winners receive $10,000 grants for their charities; honorable mentions get a $2,500 grant.

The five winners and five honorable mentions will be announced in October, but voters in an online contest will also choose three Web Choice favorites, earning those winners additional money for their charities.

In August, 2018 Illinois REALTORS® President-elect Dan Wagner resigned from the trade association’s leadership team, citing a need to spend more time with family and to focus on his job.

Wagner, who would have served as association president in 2019, is senior vice president for government relations for the Inland Real Estate Group of Companies.

The Illinois REALTORS® Executive Committee voted to keep the position of president vacant for 2019. In October, the association's Board of Directors will vote on the decision, and formalize both the 2019 slate of officers and new board members.

The proposed leadership team is: President-elect Ed Neaves, Treasurer Sue Miller and Immediate Past President Matt Difanis.

BEGINNING OCT. 1, IDFPR MOVES TO PAPERLESS LICENSE SYSTEM The Illinois Department of Financial and Professional Regulation (IDFPR) is transitioning to a paperless license management platform for real estate professions.

New real estate licensees and those transferring licenses will need to use

NAR LAUNCHES PROGRAM FOR REALTOR® FINANCIAL WELLNESS With nearly nine out of 10 REALTORS® working as independent contractors, NAR’s new online resource, Center for REALTOR® Financial Wellness, offers education and resources for wealth building, business planning and real estate investment.

Visit www.FinancialWellness.realtor to assess your current financial profile, set personalized goals, find budgeting tools, retirement planning resources and investing options.

the IDFPR online portal after Oct. 1.

If a person does not have access to a computer or cannot use the online portal, IDFPR has a plan to assist, although the agency says it could take four to six weeks to process these applications. bit.ly/IDFPR_Portal

CAPITAL AREA, EGYPTIAN, PEORIA AREA AND QUAD CITY AREA MLSs CONSOLIDATE Several MLSs in the state announced they plan to merge to form RMLS Alliance, LLC, a new multiple listing service and commercial information exchange covering 61 counties over two states, more than 30,000 square miles and serving more than

2 million customers. The consolidation includes Capital Area REALTORS®’ MLS, Egyptian Board of REALTORS®’ MLS, the Peoria Area Association of REALTORS®’ MLS and the Quad City Area REALTOR® Association's MLS .

FAMILY PETS SWAYING MORE OF TODAY'S HOMEBUYER CHOICES

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People love their family pets, and 87 percent of pet owners said they consider their needs when they shop for a home, according to survey data from Realtor.com.

In fact, 75 percent of those surveyed said they would pass on a “dream home” if it wasn’t pet-friendly. What are the top features pet owners want?

of recent homebuyers are pet owners, according to survey data.

• Large yard – 45% • Any outdoor space – 36% • Garage – 33%

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• Large amount of square footage – 29%

%

• Dog run – 26%

OWN A DOG

• Sturdy flooring – 26% • Close proximity to outdoor spaces – 25%

%

OWN A CAT

%

OWN A BIRD

11

%

OWN A FISH

Read the entire survey at bit.ly/Pet_HomeOwners

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SPONSORED CONTENT

MLS TRAINING VITAL FOR AGENTS, IMPORTANT TO MRED

By Rebecca Jensen President and CEO of Midwest Real Estate Data (MRED) Abigail Adams once wrote, “Learning is not attained by chance, it must be sought for with ardor and attended to with diligence.”

That’s the attitude MRED takes toward our training program for real estate professionals. This completely free service isn’t a haphazardly thrown together list of copied and pasted classes.

MRED training is a thoughtfully crafted resource designed to teach agents how to take full advantage of our many helpful tools.

MRED offers a wide variety of courses to cater to how you work best. This includes: • A traditional classroom experience for those who want hands-on learning • A consistently updated database of instructional documents and videos to use for learning on your own time or for quick reference • Live online webinars for remote instruction • One-on-one and custom in-office training sessions for those looking to get specialized coaching on specific topics 12 www.IllinoisRealtors.org

We want to provide you with the bestpossible training experience no matter how you prefer to learn. And did I mention it’s all free for MRED customers?

These resources are constantly growing to meet the needs of our customers. We fully realize we’re part of a fast-paced real estate world and training needs to be flexible to fit into agents’ busy schedules. So, we have a fantastic training department that’s constantly evaluating new methods to educate agents, taking into consideration the many technology options available to help train on our own technology.

That doesn’t eliminate the need for the tried and tested in-person classroom setting; there’s just something about the human element of training that works and builds great relationships. But we’re continually adding more and more ways agents can learn how to best use our extensive products and services.

Just like those products and services and our multiple listing service need to be on the cutting edge of technology, the way we teach agents how to harness those resources must also evolve.

That’s why we recently updated our training

registration website to make it even easier to use for our agents.

Our next step in passionately and meticulously pursuing effective training is the upcoming introduction of the next generation of e-learning. This transformative technology goes beyond on-demand videos and online classes by offering interactive courses agents can take and retake whenever and wherever they want. These courses will feature custom interactions along with videos, quizzes, and reading materials, combining all the best elements from our current training formats into the most advanced online training experience available.

This adds up to the perfect educational option for self-starters and those who want to train in the evening or on the weekend.

MRED does all of this and more for you because we wholeheartedly believe that learning doesn’t happen by chance, it takes diligent effort.

And when you’re able to successfully leverage everything MRED offers, it’s more than worth it.

CLEARING THE HURDLES OF NEW AGENT TRAINING

By Bridget McCrea

I

t wasn’t until REALTOR® Marki Lemons-Ryhal had earned a business degree, passed the real estate licensing exam and set up her first showing that she realized something alarming.

She didn’t really know much about selling real estate.

“The homeowners asked me for my agent ID number and my response was: ‘What is that and how do I get one?’” recalls Lemons-Ryhal, director of education for EXIT Strategy Realty and an industry keynote speaker, emcee and event host.

Some of the problem, she admits, was that she was able to skip the prelicense course because she had a college degree in business. But there was more to it than that.

“I learned the hard way that there’s so much more to real estate than just getting a license; that’s just entry-level,” says Lemons-Ryhal, who eliminated her knowledge deficit by taking continuing education courses, earning real estate designations and getting her broker’s license.

“ I learned the hard way that there’s so much more to real estate than just getting a license; that’s just entry-level.”

Marki Lemons-Ryhal

“The question becomes, how are you going to build upon that foundation when it’s just the starting line — not the end-all/be-all,” she said.

With a growing number of people beginning a career in real estate, hands-on, practical training that goes beyond just having a license is vital. Don’t make the mistake of overlooking these top seven things that industry veterans say should be incorporated into training programs for novice real estate agents.

New Agents, New Needs

Every year, thousands of new real estate agents make their way into the industry. Between March 2017 and April 2018, the National Association of REALTORS® watched its membership increase by 80,000 — a 6 percent increase that happened despite inventory

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shortages and rising home prices in many areas of the country. So far in 2018, Illinois REALTORS® membership has grown by 4 percent.

In surveying its 1.3 million members, NAR found that 29 percent have less than two years of experience. According to the Association of Real Estate License Law Officials (ARELLO), of the 2 million active real estate licensees in the U.S., the median tenure is four years.

In an industry where licensing courses may not teach agents how to conduct business, and where basic training simply doesn’t cut it, both new and existing licensees need more guidance than ever.

“There’s a real disconnect in the market right now between wanting to make a killing in real estate because the market is great, and actually being trained on the fine points of how to sell real estate,” says REALTOR® Carrie J. Little, managing broker and owner at CarMarc Realty Group, LLC, where she works with nearly 5,000 agents through her training classes.

“ There’s a real disconnect in the market right now between wanting to make a killing in real estate because the market is great, and actually being trained on the fine points of how to sell real estate.”

Carrie J. Little

“There’s also a disconnect regarding who is supposed to be training whom and on what, and it should all start with the sponsoring brokerages and managing brokers; but that’s not happening,” she said.

To break through this challenge and get both new and novice agents on the right track, some of Illinois’ top trainers and brokers shared some training must-haves: 1. Know your documents.

Little said she couldn’t believe her ears: Did this new agent really not understand that, when signing a listing agreement, a seller could elect whether or not to agree to the potential for dual agency?

“I asked why he thought he

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needed to require that sellers agree to dual agency, and he said it was because that’s what his company told him to do,” Little said.

To avoid this type of confusion, Little says brokers and trainers should take the time to teach new agents about the forms and when to use them. To agents who aren’t getting that level of training in-house, she says state and local REALTOR® associations offer such training — often as part of their association dues.

“Every agent should take advantage of this free training, and so should boutique brokerages that don’t have the bandwidth to train on topics like how to use forms and documents,” Little said.

2. Don’t repeat mistakes of the past.

When REALTOR® Yuval Degani sits down with a new agent who joins his company, he spends about 90 minutes with them during that first meeting.

“One of my first statements to them is always, ‘I wish for you not to repeat my first year in real estate,’” says Degani, broker-owner at Dream Town Realty.

He said when he started out he had never worked for a brokerage and didn’t even know how to qualify a client.

“No one taught me anything and I made every single mistake possible,” Degani said.

Twenty years later, Degani sees too many agents taking a “Groundhog Day”-like approach, referring the 1993 Bill Murray comedy where he relives the same day over and over again. Degani sees new agents repeating the same business habits they learned in their first year, whether they worked or not.

He sees regular training and coaching as the solutions to the problem, with an emphasis on showing agents how they’re repeating their patterns. Then he works with agents to pry them out of those ruts.

“With coaching, we put a mirror in front of someone and let them see themselves as they do their work, then we help them forge their own way,” Degani said.

3. Leverage transaction management technology.

Agents have access to a lot of

technology, but Little says investing in a paperless platform that manages the transaction from start to finish will pay off.

“Pick a platform where you can upload all of your documents in a very consistent, centralized manner,” says Little.

“As soon as you start working with a new client, open a file and start putting everything in there,” she said.

“Don’t wait until closing, or until you otherwise need those documents, to have to hunt them down.”

4. Think and act like an entrepreneur.

New agents may hang their licenses with a broker, but that broker isn’t necessarily his or her “employer” in the truest sense of the word. A highly entrepreneurial endeavor, real estate demands a level of persistence, diligence and detail that many new agents haven’t experienced in the past.

This may be especially true if they came from the corporate world.

“New agents need business plans, they need to be able to follow the numbers, and they need research and data to do things right,” says LemonsRyhal, who tells licensees to explore the business planning, market research and data resources provided by both NAR and Illinois REALTORS®.

To help even the most independent business owners/agents stay accountable to their business commitments, REALTOR® Nick Libert, CEO and owner of Exit Strategy Realty/Nick Libert Properties Inc., in Chicago, suggests using daily, group accountability calls.

“ Agents have a lot of great ideas, but if those ideas aren’t mapped out over the course of a full year, they may not ever become a reality.”

Nick Libert

He calls his “Daily Dials” and they take place every Monday through Friday at 8 a.m. Agents can call in and tell each other what they did great yesterday and what they need to do to keep the momentum going.

“For newer agents, this kind of drags them into the right activities and helps them get their day set up properly,” Libert says. “For experienced agents, it’s a constant reminder of ‘Here’s what I need to do.’”

many of them avoid this task for any number of reasons, the main one being that it can be downright uncomfortable.

Degani helps agents over this hurdle by encouraging them to develop a systematic approach to asking for business that goes beyond the “easy” methods, such as email, direct mail and social media.

“Agents can use these three approaches until they’re blue in the face, but absent a call asking for business, these methods only have a partial effect,” Degani says. (*See Legal Note) If, you call someone after sending out a postcard, it creates an entirely different effect, he says.

“It’s about overcoming the fear of calling and actually talking to people in a world where digital communications may have taken over, but aren’t nearly as effective as phone or face-to-face contact,” Degani says.

Libert says it pays to show agents the value of having a 12-month marketing calendar that’s focused not only on daily activities, but also on the many different ways that they can “touch” people throughout the year.

Those touches can be special events, monthly mailers, e-newsletters or any other number of outreaches.

“Agents have a lot of great ideas, but if those ideas aren’t mapped out over the course of a full year, they may not ever become a reality,” says Libert. “Logistically, finding event sponsors and locations at the last minute is very difficult.

So, if you do a 12-month marketing calendar, you can set yourself up for long-term success.”

5. Use hands-on training to fill in the gaps.

New agents aren't the only ones who are overwhelmed by the changes and new requirements of their careers.

Agents who have been in the business for years also need training, coaching and mentoring on how to use new tools and technology.

“I have agents who started in the business before electronic signatures, contracts and lock boxes were even around,” says REALTOR® Sheryl Grider Whitehurst, director of development at RE/MAX Traders Unlimited in Peoria.

To help agents work through these challenges, and to make sure new agents get the basic training they need, the firm uses a mix of one-on-one, technology and business development training.

“ I have agents who started in the business before electronic signatures, contracts and lock boxes were even around.”

Sheryl Grider Whitehurst

With a focus on hands-on training, these sessions help agents practice before they go into the field.

For example, Whitehurst teaches sessions on how to process listings using RE/MAX’s transaction management system and on how to use the firm’s scheduling platform to set appointments. The classes are taught on Facebook Live, which allows agents to access and watch the content later.

6. Don’t just rely on email and social media to fill the client pipeline.

Most agents know they need to call people to build their client base, but

7. Think before setting up shop in your own backyard.

Too many new agents start their business without realizing they’ll get a higher return on investment by working in a neighboring community says Lemons-Ryhal.

“I do everything by the numbers, instead of just ‘assuming’ that something will or won’t work,” she says. “That means paying attention to the trends, knowing what deals are in the pipeline and using predictive analytics to see what’s coming around the next corner.”

The Bird’s-Eye View

To new, novice and even experienced agents who need help getting their businesses going (or, taking them to the next level), Whitehurst recommends reaching out to your managing broker for help first.

National, state and regional REALTOR® associations are another great resource for both one-on-one and ongoing training, as are the many different designations that are offered by industry associations. Finally, there is a plethora of independent real estate trainers that provide group and oneon-one training for both new and experienced agents.

These and other resources can help new agents avoid repeating past mistakes and push them out of the “Groundhog Day” effect and into the ranks of successful licensees, says Degani.

“Agents can easily fall into a pattern of waking up in the morning, putting out fires and dealing with the daily crunch without ever stepping back to take a bird’s-eye view of their businesses,” he says.

“ With coaching, we put a mirror in front of someone and let them see themselves as they do their work, then we help them forge their own way.”

Yuval Degani

“With good coaching and training, they can figure out what they need to do on a macro level — including regular lead generation, prospecting and running their business like a business — to succeed and prosper.”

About the writer: Bridget McCrea is a business, real estate and technology writer in Miami, Fla. She can be reached at bridgetmc@earthlink.net.

LEGAL NOTE LEGAL NOTE

"Cold" calling requires strict adherence to federal Do Not Call regulations, bit.ly/Legal_A-Z_DoNotCall

ILLINOIS REALTOR® October 2018

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Illinois Bicentennial 1818-2018

A Capital Celebration

Governor opens Bicentennial Plaza with fanfare and lots of cheesecake With music, dignitaries and an Illinois Army National Guard flyover, the Bicentennial Plaza, a REALTOR® Community Partnership, was dedicated in downtown Springfield on Aug. 26.

The plaza, located on land owned by Illinois REALTORS®, is a pedestrian walkway linking the Abraham Lincoln Home Historic Site to the Illinois

Governor’s Mansion.

The dedication was a Signature Legacy Event celebrating the state’s 200th birthday. The event included performances by the University of Illinois’ Marching Illini Band, a flyover by the Illinois Army National Guard, a performance by the Ravinia Jazz Scholars Alumni Band, Damian Kaplan

singing the state song “Illinois” and an Eli’s Cheesecake birthday cake.

Program speakers included: Illinois REALTORS® President Matt Difanis, Gov. Bruce Rauner, first lady Diana Rauner, Springfield Mayor Jim Langfelder and Illinois Bicentennial Commissioner and Ameren Illinois President Richard Mark.

Left: Bicentennial Plaza showcases Springfield’s history and ties to Lincoln Top Right: Illinois first lady Diana Rauner Bottom Right: Springfield Mayor Jim Langfelder

Top Left: Illinois Gov. Bruce Rauner Bottom Left: Abraham Lincoln Right: Illinois REALTORS® CEO Gary Clayton, center in white shirt, at the dedication

For more related content visit www.IllinoisRealtors.org/Bicentennial 16 www.IllinoisRealtors.org

Photos: Terry Farmer Photography

Illinois Bicentennial 1818-2018

Left: Some of the program’s speakers pose with a 300-pound Eli’s Cheesecake birthday cake. Top Right: Lincoln poses with MRED President and CEO Rebecca Jensen and MRED Chairman of the Board John Matthews Bottom Right: Ravinia Jazz Scholars Alumni Band performs

Left: Illinois REALTORS® leadership (l to r) Treasurer-elect Sue Miller, Immediate Past President Doug Carpenter,Treasurer Ed Neaves, President Matt Difanis, CEO Gary Clayton, Lincoln Right: Illinois REALTORS® President Matt Difanis greets Gov. Bruce Rauner and first lady Diana Rauner

University of Illinois’ Marching Illini Band performs

Illinois Army National Guard's 1st Battalion, 106th Aviation Regiment UH-60 Black Hawk helicopters fly over the crowd during the National Anthem

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Thank You!

Bicentennial Plaza Dedication MAJOR SPONSORS

DAY SPONSORS

Bicentennial Plaza is a new pedestrian walkway linking the Lincoln Home National Historic Site with the Governor’s Mansion and Capitol Complex along the Jackson Street corridor in historic downtown Springfield. The Plaza is dedicated to Abraham Lincoln’s vision for America as a country with opportunity and equality for all.

FOLLOW US: 18 www.IllinoisRealtors.org

• IllinoisRealtors.org • #REALTORSworkingwithHeart

Illinois Bicentennial 1818-2018

REALTORS® working with heart across Illinois

By Kelli Jessup, Digital Content & Marketing Specialist Check out the progress made by local REALTOR® associations across the state which are working with heart in their communities to complete “legacy projects” to commemorate the Illinois Bicentennial.

Many projects have been completed or are near completion. Projects have included fundraising for historic home improvements and community murals, or promoting local historical properties and societies.

REALTOR® Association of Southwestern Illinois: Fair St. Clair 200

Rockford Area Association of REALTORS®: Community Fall Jubilee at Tinker Swiss Cottage

Belvidere Board of REALTORS®

Capital Area REALTORS®: Edwards Place Historic Home fundraiser

Jeanne Gang Mural

Boone County Museum of History Teacher Trunk

Champaign County Association of REALTORS®: Family Fun Day at Orpheum Children’s Science Museum

Chicago Association of REALTORS®: Peterson Garden Project Bicentennial Garden

Danville Area Board of REALTORS®: Danville’s Lincoln Belief Mural

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Illinois Bicentennial 1818-2018

HomeTown Association of REALTORS® Ronald Reagan Boyhood Home fundraising and volunteers

Egyptian Board of REALTORS®: Bald Knob Cross storyboards

Egyptian Theatre fundraising

Greater Gateway Association of REALTORS®: Haskell House Children’s Museum fundraising Heartland REALTOR® Organization: Promotion of historical sites

Powers-Walker House

Petersen Farm 20 www.IllinoisRealtors.org

Colonel Palmer House

McHenry County Historical Society and Museum

Harvard Milk Days Foundation

Illinois Bicentennial 1818-2018

Mainstreet Organization of REALTORS®

Illini Valley Association of REALTORS®: Streator Sesquicentennial murals

DuPage County Historical Museum LED lighting

Kankakee-Iroquois-Ford Association of REALTORS®: B. Harley Bradley House rain garden

Arlington Heights Historical Museum scanning equipment

South Suburban Genealogical and Historical Society website Livingston County Board of REALTORS®: The Strevell House landscape restoration

Logan County Board of REALTORS®: Lincoln Chautauqua signage

Waukegan Historical Society UV-protective windows

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Illinois Bicentennial 1818-2018

Peoria Area Association of REALTORS®: Pettengill-Morron House Museum landscape restoration

Bloomington-Normal Association of REALTORS®: David Davis Mansion Lincoln-Era Barn Restoration Quad City Area Association of REALTORS®: Black Hawk State Historic Site mural

Mid Valley Association of REALTORS®: Little Family Cabin in Kewanee restoration

North Shore-Barrington Association of REALTORS®: Hope Union Church restoration

Quincy Association of REALTORS®: Quincy Museum Summer Grant Program

Bloomington-Normal Association of REALTORS®: David Davis Mansion Lincoln-Era Barn restoration

REALTOR® Association of the Fox Valley: Garfield Farm and Inn Museum promotion

REALTOR® Association of Northwestern Illinois: Historical landmarks restoration with the Galena Foundation

Three Rivers Association of REALTORS®: Historical Society Mobile Preservation Unit

Northern Illinois Commercial Association of REALTORS®: Aurora Homeownership Expo funding

Oak Park Area Association of REALTORS®: Oak Park River Forest Museum garden bench

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PHOTO BY ANDREW SCHONES

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How to use

Is your LinkedIn profile gathering dust?

Are you relying on a “set it and forget it” approach?

to build your business

By Bernice Ross

If you’re ready to start generating more referrals from your LinkedIn profile, here’s how to do it.

LinkedIn is the social media site dedicated specifically to business and business professionals. It’s an especially powerful tool for REALTORS® who are willing to use it daily by posting content, links to articles, and information about business trends.

Why LinkedIn Matters to REALTORS®

If you’re not active on LinkedIn, here are some reasons you should be: w Forty-one percent of U.S. millionaires use LinkedIn and 44 percent of their users earn over $75,000 per year, according to LinkedSelling, a lead generation company specializing in LinkedIn. w According to Hubspot, 80 percent of Business-to-Business (B2B) leads originate from LinkedIn.The platform is 277 percent more effective than other social media sites.

REALTOR® Eileen Ellis, of Baird & Warner in La Grange, shares her take on why LinkedIn is important for Eileen Ellis REALTORS®.

REALTOR® “LinkedIn Baird & Warner has allowed me La Grange to cast a wider net, to listen more closely to my network, and to better understand its concerns as well as to celebrate their successes,” she said. “LinkedIn allows me to demonstrate my professionalism and expertise while also highlighting local concerns such as equitable development.”

Ellis also noted an important trend.

“Millennials seem to be leaving Facebook in droves, but personally, I’ve seen a substantial uptick of

24 www.IllinoisRealtors.org

Millennials using LinkedIn. Their influence is bringing some of Facebook’s sense of fun, transparency and collaboration to that site as well,” she said.

go to the top of the list. This is also an excellent way to improve your rankings on LinkedIn. 3. Choose the right photo Your photo should have a solid background.

Women should have no more than three pieces of jewelry, look directly into the camera and avoid the head tilt that looks like a high school photo. Men should wear a shirt, tie and a smile.

Using LinkedIn for Social Good

REALTOR® Tricia Tialdo, of Tialdo Realty in Belleville, says LinkedIn allows her to make valuable connections and keeps her name top of mind Tricia Tialdo with people in her REALTOR® network. She also uses Tialdo Realty LinkedIn to promote Belleville what matters most to her community while highlighting her volunteer work rescuing animals. Most importantly, LinkedIn makes it easier for her to move from being connected online to connecting face-to-face.

“When it comes to using LinkedIn, posting daily is the best way to maximize your exposure.

To further extend your lead generation efforts and to create more buzz, share these posts on other sites,” she said. “The more familiar people are with you, the more likely they will be to contact you when they want to transact.”

Improve Your Search Rankings Using LinkedIn

The original purpose of LinkedIn has not changed: it is a site where you can post and search for recommendations and testimonials.

Because Google's algorithms tend to move testimonials and videos to the top of search results, a smart way to improve your search ranking is to collect as many video testimonials as possible and post them on LinkedIn. This not only expands your reach, it builds your credibility.

To generate more leads, get in the habit of writing testimonials for other members of your LinkedIn network who provide highquality service. In most cases, when you write a testimonial for someone who knows you, they will reciprocate. To make the process even more effective, shoot a video testimonial.

Expand Your LinkedIn Database: The Basics

The first issue to address is setting up an effective LinkedIn profile.

Sherry McCormack, a REALTOR® with Sherry McCormack Long and Foster in Pennsylvania, is well REALTOR® versed in getting the Long and Foster most out of LinkedIn Pennsylvania and offers some tips that Illinois REALTORS® can use:

Easy Ways to Grow Your LinkedIn Network

When you post on LinkedIn, remember your primary business goal is to set a faceto-face appointment. The reason? According the latest National Association of REALTORS® Profile of Buyers and Sellers, 74 percent of all sellers only interview one agent before signing a listing agreement. In other words, the first agent to see the seller face-to-face wins. Using LinkedIn regularly is one of the best strategies to make that happen.

Here are two proven strategies that can help you grow your LinkedIn network.

1. Create a vanity URL When you fill out your LinkedIn profile, it will create a URL for you. You can obtain a new vanity URL by selecting “Edit Profile” and then clicking the URL under your photo. This brings up a box that allows you to customize your URL using your name or some other descriptor. For example: https://www. linkedin.com/in/YOURNAME/

1. Coffee networking meetings To use LinkedIn to build a referral database, add your new buyers and sellers, past clients, plus other members of your sphere of influence. Once they join, you then have access to the people who belong to their LinkedIn network as well.

To capitalize on these contacts, McCormack suggests that you schedule a “coffee networking meeting” where you meet with at least one member of

2. Put your name in ALL CAPS If you have a common name, putting your name in all caps usually makes your name

your LinkedIn network each week. At that meeting, you each exchange five contacts who could help the other person.

Prior to the meeting, review the other person’s LinkedIn contacts to identify a minimum of five people you would like to meet from their network. Also, be sure you prepare an introduction letter. This allows the other person to quickly personalize it and send it to the five contacts you each agreed to share.

“I get five meaningful contacts per week (250 per year) that are well-suited to me and all it costs me is a cup of coffee,” McCormack said.

2. Put your networking on steroids McCormack also uses LinkedIn for networking events. If you belong to a group such as the Chamber of Commerce, look through the attendee list for their next networking event. When you identify someone you want to meet, message them right through the meeting site or through LinkedIn. Here’s how McCormack reaches out: I see ______ event is coming up. I have not had the honor of meeting you. I would like to learn more about you and your business. Could we meet by the bar (or the hors d’oeuvres) at 5:15 p.m.?

McCormack uses her LinkedIn app to easily find the person. At that meeting, be sure that you always ask about their business first. Avoid bringing up your business unless they ask you.

Succeeding at LinkedIn comes down to regularly interacting on the site by providing valuable information, demonstrating how you serve your community and offering to help others build their business. Best of all, when you do that, watch your business soar!

About the writer: Bernice Ross is the CEO and President of BrokerageUP!, Inc. and RealEstateCoach.com. She is a nationally syndicated columnist, author, speaker, consultant and frequent contributor to Inman.com If there is any payment of compensation to a person making LEGAL a realNOTE estate referral, the referring person needs a properly sponsored real estate license, per the Illinois Real Estate License Act. LEGAL NOTE

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AT THE CAPITOL Julie Sullivan | Senior Director of Legislative & Political Affairs

RENT CONTROL, HOME RULE AND OTHER LEGISLATIVE ISSUES IN THE 2018 SPRING SESSION This spring, thousands of bills were introduced in the Illinois General Assembly. Many of them have a direct impact on private property rights and your real estate business.

QUICK FACT: The Illinois General Assembly operates on two-year legislative cycles and as the 100th General Assembly drew to a close this spring, 9,549 bills had been filed, with more than 3,000 this year alone. Of those, Illinois REALTORS® tracked 160 bills of interest to our members this spring. Here are some of the key legislative issues from 2018.

MULTITUDE OF RENT CONTROL BILLS FAIL TO GAIN TRACTION Status: INACTIVE There were four bills introduced this spring session which sought to repeal the Rent Control Preemption Act (a ban on enacting local rent control ordinances). The intent of the legislation is to allow local governments, especially Chicago, to enact rent control by ordinance. None of the bills – House Bill 2430 (Guzzardi), Senate Bill 2310 (Biss) or Senate Bill 3542 (Sandoval) are active. Senate Bill 3512 (Hunter), which is also inactive, establishes the Rent Control Act, which imposes rent control statewide. The Senate Executive Subcommittee on Special Issues held one “subject matter hearing” and the Senate Special Committee on Housing also held hearings after the spring session ended.

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EXPANSION OF HOME RULE Status: INACTIVE House Bill 5543 (Skillicorn), House Joint Resolution Constitutional Amendment 34 (Skillicorn) and Senate Joint Resolution Constitutional Amendment 9 (Hutchinson) all sought to drop the population whereby a municipality would automatically achieve Home Rule status from 25,000 to either 2,000 or 5,000.

We generally OPPOSE the expansion of Home Rule powers due to taxation issues and the broad regulatory laws that Home Rule units possess which impose costly burdens and delays on real estate practitioners and private property owners.

We also note that all municipalities currently have the authority to ask the voters if they wish to adopt Home Rule.

COMMERCIAL CONSTRUCTION CONTRACTS RETAINAGE BILL Status: VETOED BY GOVERNOR Senate Bill 3052 (Mulroe/Turner), a perennial issue which has been rejected in past years, was narrowly approved this year but after another successful Call For Action in opposition, the governor VETOED the bill on Aug. 24, 2018.

This bill would have limited the retainage provision in commercial construction contracts to 10 percent, but require the retainage amount to be reduced to 5 percent once 50 percent of the work is completed. There may be efforts to override this veto in November.

REAL ESTATE LICENSE LAW CHANGES Status: PASSED • Senate Bill 3036 (Weaver/ McCombie) was an initiative of the Illinois Department of Financial and Professional Regulation (IDFPR).

The bill amends various acts,

including the Real Estate License Act, to slightly change the term limitations for the Real Estate Administration and Disciplinary Board. Signed into law (P.A. 100886) and in effect Aug. 14, 2018.

• Senate Bill 2439 (Bennett/Ammons) includes language amending the Real Estate License Act to provide that IDFPR may not deny, refuse to renew, suspend, revoke or impose other disciplinary action against a licensee for his/her delinquency, default, or other failure to perform on an educational loan or scholarship provided by or guaranteed by the Illinois Student Assistance Commission. Signed into law (P.A. 100-872) and in effect Aug. 14, 2018.

• Senate Bill 3109 (Martinez/ Guzzardi) authorizes IDFPR to allow an applicant licensed under their jurisdiction to provide his/her individual taxpayer identification number as an alternative to providing a Social Security number when applying for a license. The bill also provides that no person may be denied a license, certificate, limited permit or registration solely based on his/her citizenship status or immigration status. Signed into law (P.A. 100-1078) and in effect Jan. 1, 2019.

• House Bill 5210 (Demmer/Althoff) amends the Real Estate License Act to allow real estate brokerages to simply notify IDFPR of the branch offices that they operate, rather than having to apply for a separate license to operate such branch offices. The bill also includes provisions the Illinois REALTORS® helped draft that clarify some

I'M A

REALTOR® AND I

provisions in the law, especially relating to LLCs and corporate entities. Signed into law (P.A. 100831) and in effect Jan. 1, 2019.

SEALING OF EVICTION COURT RECORDS Status: INACTIVE Two bills were introduced to provide for the sealing of court records regarding eviction actions, thereby preventing landlords from learning if prospective tenants have had eviction actions filed against them in the past. House Bill 4760 (Mah) and House Bill 4968 (Wallace) are both INACTIVE. WARRANT REQUIRED TO INSPECT PRIVATE PROPERTY Status: INACTIVE We will continue to work with REALTOR® and state Rep. Sam Yingling on his initiative to enact language to provide that a local government may not conduct a physical inspection of residential property without the voluntary consent of the owner or occupant or a lawful warrant or court order. House Bill 4634 was amended this spring to enact the Local Government Residential Inspection Limitation Act in Illinois law. Illinois REALTORS® will continue to work with the sponsor in SUPPORT of this legislation to resolve this issue discussed in many communities across the state.

LOCAL GOVERNMENT CONSOLIDATION OR ELIMINATION Status: PASSED There were several bills introduced this spring to provide for methods to consolidate or eliminate units of local government or to encourage efficiency.

Illinois REALTORS® continues to SUPPORT these efforts to provide a reasonable process to assess local needs and eliminate or consolidate

the staggering number of property tax funded units of government in Illinois.

House Bill 5777 signed into law (P.A. 100-1113), Senate Bill 2459 signed into law (P.A. 100-874) and Senate Bill 2543 signed into law (P.A. 100-793). All of these bills are effective Jan. 1, 2019.

NON-HOME RULE MUNICIPAL 'CRIME FREE RENTAL HOUSING' Status: INACTIVE House Bill 5326 (Costello) was introduced but did NOT ADVANCE this spring. This bill would have granted non-Home Rule units the authority to enact so called “crime-free rental housing” ordinances which are typically OPPOSED by local REALTOR® associations. These ordinances typically include landlord licensing, inspections, requirements on landlords and mandated lease terms.

NO PUBLIC NOTICE PUBLICATION IN NEWSPAPERS Status: INACTIVE House Bill 4298 (Sosnowski) was a repeat effort to allow local governments to post all public notices on their website rather than by publication in a newspaper, as under current law.

Illinois REALTORS® OPPOSED this bill because we believe that transparency is critical for so many governmental actions and issues affecting property taxpayers; including but not limited to such information as property tax assessments, tax sale information and meeting notices.

RECEIVING NOTICES BY EMAIL Status: PASSED We applaud and SUPPORT the concept which was approved this spring in House Bill 4822 (Halbrook/Rose) permitting a local government to set up a process by which residents CHOOSE to receive local government notices by email. Signed into law (P.A. 100-856) and in effect Jan. 1, 2019.

VOTE! GENERAL ELECTION

NOV. 6

RESTRICTIONS/PENALTIES IN AGRICULTURAL AREAS Status: INACTIVE Senate Bill 2555 (Althoff) sought to amend the Agricultural Areas Conservation and Protection Act, a voluntary incentive program for certain private property owners, to impose restrictions and penalties. We OPPOSED this initiative as against the rights of private property owners.

SENIOR CITIZEN REAL ESTATE TAX DEFERRAL LIENS NOT RECORDED IN COUNTY Status: INACTIVE A provision originally contained in Senate Bill 2920 (Althoff), an omnibus proposal from the Illinois Department of Revenue (IDOR), sought to allow liens under the Senior Citizens Real Estate Tax Deferral Program to be recorded in the IDOR’s State Tax Lien Registry and NOT in the County Recorder’s Office. Our objection was noted by the sponsor and the department and this provision was REMOVED from the bill.

PREVAILING WAGE IN TIFS Status: INACTIVE House Bill 813 (Hoffman), which sought to amend the Prevailing Wage Act to require prevailing wage to be paid on projects in Tax Increment Financing Districts, is currently inactive.

Illinois REALTORS® OPPOSED this measure because we believe it would inhibit economic development and stifle investment in potential economic development projects in conflict with the intent of this incentive program.

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STATE EXCLUSIVE REGULATION OF DRONES Status: PASSED Senate Bill 3291 (Clayborne/Evans) provides for the exclusive regulation of drones by the state, in a manner consistent with federal law. This initiative is SUPPORTED by Illinois REALTORS® to prevent the potential for a patchwork of differing local ordinances on this issue. It should be noted that in its final form the city of Chicago was exempted. Signed into law (P.A. 100-735) and in effect Aug. 3, 2018.

IMMIGRANT TENANT PROTECTION ACT Status: VETOED BY GOVERNOR Senate Bill 3103 (Castro/Mah) would have created the Immigrant Tenant Protection Act. While this bill was negotiated and agreed to prior to its

final passage, the governor opted to VETO the bill on Aug. 24, 2018.

The bill as approved by the General Assembly permitted an ACTUAL tenant to sue a landlord for damages and attorney’s fees IF AND ONLY IF the landlord threatens, intimidates or harasses a tenant because of their immigration or citizenship status.

The bill also included an “affirmative defense” to an eviction if a landlord tries to evict a tenant because of their status. An overide effort may be pursued in November.

PROPERTY ASSESSED CLEAN ENERGY CHANGES Status: PASSED Senate Bill 2773 (Althoff/Lang) was approved this spring to update various provisions of the Property Assessed Clean Energy (PACE) Act originally enacted in 2017. The changes added

new construction and authority for the Illinois Finance Authority to issue bonds in connection with property assessed clean energy programs. This was an agreed bill SUPPORTED by Illinois REALTORS®. Signed into law (P.A. 100-980) and in effect Jan. 1, 2019.

STATEWIDE HISTORIC PRESERVATION TAX CREDIT Status: PASSED Senate Bill 3527 (Stadelman/GordonBooth) expands the successful historic preservation tax credit program statewide. This will allow Illinois to compete with neighboring states that already have such incentive programs in place. This type of credit previously had been limited to the “River Edge Redevelopment” communities in Aurora, East St. Louis, Elgin, Peoria and Rockford. Signed into law (P.A. 100629) and in effect Jan. 1, 2019.

Learn more about the 160 bills tracked by your Illinois REALTORS® lobbyists to protect your clients and your real estate business at www.IllinoisRealtors.org/Advocacy

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Mike Scobey | Director of Local Advocacy and Global Programs

GRASSROOTS ACTION CAN MAKE A DIFFERENCE ON REALTOR® ISSUES When it comes to lobbying local governments on issues that affect real property ownership, Illinois REALTORS® can rely on our talented group of local Governmental Affairs Directors (GADs) and our dedicated and equally talented core group of volunteers who are wired into local issues and local politics.

But occasionally, we need to tap into a larger audience for help: property owners and consumers.

Many of you have responded to our Calls for Action, which enable our membership to send messages to members of Congress and to state legislators regarding pending legislative matters.

HERE’S A RUNDOWN:

PARK FOREST: In August, Illinois REALTORS® asked homeowners and local REALTORS® to write to village officials about making reforms to the village’s point of sale home inspection process. This effort involved both direct mail and emails.

Result: Still pending.

When you receive a Call For Action, Please take action!

It’s easy to do and it makes a difference!

The same online platform that delivers our messages to legislators can also be used on local issues, thanks to a new program we are utilizing through the National Association of REALTORS®.

We have more than 47,000 members statewide and we have the means to get our position expressed — in large numbers — to policymakers. In addition, we can also send these Calls for Action to property owners and consumers when an issue directly impacts them.

Being able to contact property owners and consumers is a great addition to our advocacy efforts and helps make our “Voice of Real Estate” even stronger.

We’ve used this grassroots advocacy tool on a few key local issues recently.

MUNDELEIN: Homeowners and REALTORS® were urged to contact their village officials and urge them to OPPOSE a proposed real estate transfer tax.

Result: In July, the mayor of Mundelein announced that he would not pursue the transfer tax.

EVANSTON: A Call For Action was sent to Evanston REALTORS® asking them to contact their alderman and urge a NO vote on a proposed increase in the real estate transfer tax. After the city council voted to pass the increase in August, the proposal will go to a referendum on the November general election ballot.

Result: To be determined in the Nov. 6 General Election. (Illinois REALTORS® is currently conducting a “Vote No” campaign directed at Evanston voters. A similar campaign is taking place in Bannockburn where a proposed transfer tax is also on the ballot.)

An important part of these mobilization efforts is getting a good response rate from the members who were sent the Call For Action (CFA). There’s a direct correlation between a high response rate to a CFA and a victory on the issue.

As a recent example, achieving our goal of a 20 percent response rate among members in Illinois and in several other states helped pass an extension in the National Flood Insurance Program this past July.

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OUTREACH Gideon Blustein | Member Outreach Manager and Local Governmental Affairs Director

YOUR INVITATION TO THE REALTOR® PARTY Consider this your formal invitation to the REALTOR® Party.

Sorry, I am not describing a party with streamers, balloons, cake or booze.

The REALTOR® Party is a political party.

REALTOR® issues are not Republican or Democratic.

But STOP! Before you run screaming for the exits, let me (a recovering partisan, hyper-political cable news junkie) explain why this is the Party for you. Perhaps like me, you are turned off by the anger, noise, friction and fighting in politics.

Polling from Fox News to MSNBC to the Pew Research Center shows that partisanship is at an all-time high.

Alternatively, “The REALTOR® Party is a powerful alliance of REALTORS® and REALTOR® associations working to advance public policies and candidates that build strong communities, protect property interests and promote a vibrant business environment.”

REALTOR® issues are not Republican or Democratic.

Our advocacy is based on whether a law or regulation will help or hurt REALTORS® and their clients.

Our advocacy seeks to rise above partisanship so that elected officials can make decisions that are in our best interests on topics ranging from incentivizing homeownership, keeping the Internet open or allowing insurance companies to offer affordable health

insurance options. These topics can get heated, but less so when we approach them from the perspective of the REALTOR® Party.

The REALTOR® Party may not have balloons or cake, but we do have many tools and resources to build strong advocacy campaigns. Community grants help us build the REALTOR® brand in your neighborhood. Managing brokers have access to REALTOR® and consumer mobilization resources that help increase Calls For Action and REALTOR® Political Action Committee (RPAC) participation. Your REALTOR® Party especially loves supporting REALTORS® who decide to run for political office.

If I have not convinced you yet, let me make a final appeal based on the strength of our brand.

I recently attended a panel discussion

made up of public relations, advocacy and lobbying professionals who all had one thing in common; they had formerly worked for the National Association of REALTORS®.

Every single panelist agreed that there is no other advocacy organization in the U.S. with the brand power and strength to fight for its members as the REALTORS®. That can change, though.

To retain that brand, we need you to join the REALTOR® Party. VOTE in all elections, ACT on all Calls For Action and INVEST in RPAC. Learn more at https://RealtorParty. realtor or invite your outreach team member to visit your office.

REALTOR® issues are not Republican or Democratic. Our advocacy is based on whether a law or regulation will help or hurt REALTORS® and their clients.

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ETHICS Rebecca Carraher | Director of Ethics and Professional Standards

PROPOSED CHANGE TO THE REALTOR® CODE OF ETHICS ADDRESSES OFFER CONFIRMATIONS A proposed change to the REALTOR® Code of Ethics would require — when requested in writing — that confirmation that an offer has been presented, must be in writing. The National Association of REALTORS® delegate body will vote on the following proposal during their November meeting: 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 his 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.

This requirement benefits listing brokers by confirming their ethical duty to present offers consistent with

Standard of Practice 1-7, and benefits cooperating brokers by affording them written confirmation of offer presentation to provide to their potential buyers. In a real estate market where inventory is low, this requirement establishes a valuable assurance of offer presentation for consumers.

If this change is approved, it will be effective Jan.1, 2019.

If you have any additional questions, contact Rebecca Carraher, Illinois REALTORS® Director of Ethics and Professional Standards at 217/391-4803 or via email at rcarraher@IllinoisRealtors.org.

ILLINOIS REALTORS® OMBUDSMAN PROGRAM What is the Illinois REALTORS® Ombudsman Program? The program is a structured communication and problem-solving system available to consumers as well as members of Illinois REALTORS®.

The program provides a service to address complaints and questions that may be, but are not limited to, ethical, transactional, technical or procedural in nature.

What are the benefits of the Illinois REALTORS® Ombudsman Program? The program provides an opportunity for both sides of a “story” to be heard; conveys the message that the industry does care about its professionals and the consumers they serve; provides a process to field complaints and questions; saves time

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for the parties, association staff and volunteers if a hearing can be avoided; provides education to the parties; and, fields concerns that otherwise may not be addressed.

What is the role of the Ombudsman? The ombudsman is a communicator between the parties to the disagreement or dispute; responds to a wide variety of inquiries and complaints; works toward identifying the nature of the dispute, disagreement or misunderstanding; determines the desired outcome; answers general real estate or procedural questions; works as an informal mediator; and, keeps all matters confidential.

What an Ombudsman CANNOT do: adjudicate (make decisions); determine if an ethics violation

occurred; refer matters to the Grievance Committee or any regulatory body, except where there are concerns involving a possible violation of the public trust; give legal advice; or, act as an advocate for either party.

Illinois REALTORS® currently has 28 trained ombudsmen. These ombudsmen have completed mediation training, are actively involved in real estate, are knowledgeable about the Code of Ethics and the Illinois Real Estate License Act and represent different areas of Illinois. To begin the ombudsman process, please go to www.

IllinoisRealtors.org/Ethics/Disputes/ Once a request for an ombudsman is filed, the person making the request is usually contacted by an ombudsman within 24 hours.

OMBUDSMEN FIND SUCCESS IN SETTLING DISPUTES The Illinois REALTORS® Ombudsman Program works to resolve disputes between consumers and REALTORS® and between association members. 2017 was the busiest year yet.

Number of requests for an ombudsman received

Resolved to the complainant’s satisfaction

Complainants who stated they would pursue an ethics complaint

Complainants directed to seek legal advice

2017

292

69%

33

6

2016

214

68%

25

10

TOP ISSUES ADDRESSED BY AN OMBUDSMAN

2016

Business ethics Lack of communication Code of Ethics Property management/leasing Earnest money Advertising

2017

Code of Ethics Business ethics Contracts Lack of communication Property management/leasing Earnest money

THE OMBUDSMEN TEAM (front row, left to right): Ginger Westin, Judie McConville, Mabél Guzmán, Karen Stailey-Lander, Kimberly Noyes and Bob Floss. (middle row, left to right) Glenn Swick, Judy Doyle, Kay Wirth, Chris Read, Nancy Koch, Joan Sandrik, Georgia Pierini and Debra Hymen. (back row, left to right): Linda Pilmer, Christopher Tenggren, Wayne Paprocki and Rick Hunt.

NOT PICTURED:

Fred Dasso, Matt Difanis, David Levin,Tammy Mitchell Hines, Eleanor Nastepniak, Richard Neal, Patricia Palzet-Taylor, Terry Umecker, Sandy Workman and Leesa Zick.

PHOTO BY MATT DIFANIS

ILLINOIS REALTOR® October 2018

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MARKET WATCH MARKET STATS NOW FEATURE COMPREHENSIVE, SHAREABLE CHARTS Now in addition to the monthly housing reports, market forecasts and local county and metropolitan statistical data, Illinois REALTORS® Market Stats is offering its members enhanced charts that take a broader look at Illinois’ market activity.

The new charts highlight home sales, inventory, median prices and time on market and provide more historical context about recent trends.

And, because we know that it is important for our members to be market experts, the charts can be embedded on your own website or shared on social media, giving you another member resource.

Find the new charts and information on how you can use and share them at www.IllinoisRealtors.org/MarketStats

WHAT ECONOMISTS ARE SAYING ABOUT THE MARKET: “Inventory on the market continues to fall in both Illinois and Chicago while pending sales continue to show strong increases.

Longer-term consumer sentiment reflects the ongoing uncertainty about the outcome of trade negotiations although shorter-term sentiment continues to be positive.” - Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois.

“The answer is to encourage builders to increase supply, and there is a good probability for solid home sales growth once the supply issue is addressed. Additional inventory will also help contain rapid home price growth and open up the market to

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prospective homebuyers who are consequently – and increasingly – being priced out. In the end, slower price growth is healthier price growth.” – Lawrence Yun, chief economist for the National Association of REALTORS® “The good news is that the economy and labor market are very healthy right now, and mortgage rates, after surging earlier this year, have stabilized in recent months.

These factors should continue to create solid buyer demand, and ultimately an uptick in sales, in most parts of the country in the months ahead.” – Sam Khater, chief economist for Freddie Mac

“Many consumers see their homes as good investments. Our consumer research indicates homeowners, especially those in high-price growth markets, are confident that by waiting to sell, they will receive a greater return on investment than they would today. In other words, sellers are largely staying put. With fewer homes on the market, price pressure will continue to rise.” - Frank Martell, president and CEO of CoreLogic.

“A lack of overall housing inventory is pushing up home prices, which is hurting affordability and causing prospective buyers to delay making a home purchase.” - Randy Noel, chairman of the National Association of Home Builders

REALTOR® COMMUNITY FOLLOW US:

Illinois REALTORS®’ Sharon Gorrell, Donna Wilson of the Mainstreet Organization of REALTORS® and guest speaker Slaviša Pešić.

ILLINOIS REALTORS® TALK GLOBAL INVESTMENT WITH SERBIAN OFFICIALS REALTORS® learned how to help Illinois and Serbian real estate investors facilitate projects in each other’s countries during a global networking event, “Cross Border Real Estate Network Opportunity: Illinois and Serbia.” The July event included presentations from Serbian real estate professionals and was hosted by the Illinois REALTORS® Global Business Council, Mainstreet Organization of REALTORS®, Chicago Association of REALTORS® and the North ShoreBarrington Association of REALTORS®.

VOLKODAV TO BE INDUCTED INTO AE LEADERSHIP SOCIETY Steve Volkodav, CEO of the North Shore-Barrington Association of REALTORS®, will be inducted into the Dr. Almon R. (Bud) Smith, RCE, AE Leadership Society for advancing REALTOR® association management at the NAR REALTORS® Conference & Expo in November. Honorees are chosen for their contributions to the industry and are expected to play an ongoing role as innovators and mentors in the association executive community. Volkodav is the ninth Illinois AE to be inducted since the award was established in 1998.

FRAZIER HONORED WITH AE RHINO LEADERSHIP AWARD Deb Frazier, CEO of the REALTOR® Association of Southwestern Illinois (RASI), was honored by Illinois REALTORS® in July with the Margery Shinners Rhino Award recognizing association executives who symbolize strength, leadership and loyalty to the profession.

(l to r) Neil Malone, Federal Political Coordinator (FPC) Pat McCarthy, U.S. Rep. Darrin LaHood (18th District), FPC Ed Neaves, FPC Max Mitchell, U.S. Rep. Rodney Davis (13th District).

LAHOOD AND DAVIS TALK HOUSING FINANCE WITH REALTORS® U.S. Reps. Darrin LaHood and Rodney Davis joined Illinois REALTORS®, home builders and community-based lenders for a Housing Finance Roundtable in Bloomington. The August roundtable included discussions on rural lending, land sales, credit scoring and the housing economy in Illinois.

INDUSTRY LEADERS GATHER FOR MLS FORUM

In August, Illinois REALTORS® hosted an MLS forum looking at some of the industry trends, issues and innovations facing MLSs. The forum participants included Inman Chairman Brad Inman, Real Estate Standards Organization (RESO) CEO Jeremy Crawford and NAR Director of Association and MLS Governance Rodney Gansho. Midwest Real Estate Data LLC (MRED) President and CEO Rebecca Jensen served as forum moderator.

Real Estate Standards Organization (RESO) CEO Jeremy Crawford

Inman Chairman Brad Inman with MRED President and CEO Rebecca Jensen

Three Rivers Association CEO David McClintock

(l to r) REALTOR® John C. Kmiecik and Chicago Association of REALTORS® CEO Michelle Mills Clement ILLINOIS REALTOR® October 2018

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