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Kentucky

REALTOR 速

Winter 2009

A publication of the Kentucky Association of REALTORS速

2010 Legislative Session: BE PREPARED

HBTC: HVTC: Extended & Expanded Kill Your Rolodex Bylaw Changes

www.kar.com


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Contents

Volume 2, Number 6, Winter 2009

IN THIS ISSUE

A publication of the Kentucky Association of REALTORS®

President Jeffrey L. Smith Northern Kentucky Association of REALTORS® President-Elect John W. Smither, GRI Lexington-Bluegrass Association of REALTORS® Treasurer Kevin Farris Heart of Kentucky Association of REALTORS® Treasurer-Elect Ronald E. Hughes, ABR, CRS, GRI Paducah Board of REALTORS® Executive Vice President Susan W. Helm, RCE susiehelm@kar.com Communications/Education Director Hunt Cooper hcooper@kar.com Address letters and inquiries to: Kentucky REALTOR® 161 Prosperous Place, Suite 100 Lexington, KY 40509 TF 800.264.2185 T 859.263.7377 F 859.263.7565 www.kar.com email: hcooper@kar.com KAR members should always send address changes to their local board/association first. Subscription rates: $10 per year (included in dues) for members, $25 per year for nonmembers.

Kentucky REALTOR® (USPS 024-933) is published quarterly (Fall, Winter, Spring, Summer) by the Kentucky Association of REALTORS®, 161 Prosperous Place, Lexington, KY 40509. Periodicals postage paid at Lexington, KY. POSTMASTER: Send address changes to Kentucky REALTOR®, 161 Prosperous Place, Suite 100, Lexington, KY 40509. All articles represent the opinions of the authors and do not necessarily represent the opinions of Kentucky REALTOR® or KAR and should not be construed as a recommendation for any course of action regarding financial, legal or accounting matters by KAR or Kentucky REALTOR® and its authors.

Reproduction prohibited without permission. Copyright © 2009 Kentucky Association of REALTORS®, Inc. All rights reserved.

KAR News

4

Kill Your Rolodex

8

Home Buyer Tax Credit

10

2010 Legislative Session

12

Education

19

KAR Bylaws

29

REGULAR FEATURES President’s Message

5

Tools You Can Use

6

RPAC

16

KREC Information

18

KAR Convention

20

Local Association News

22

By the Numbers

24

Housing Stats

25

Community Profile

26

From the Helm

28

A Day in the Life of...

30

WINTER 2009 KENTUCKY REALTOR® 3


KAR News KAR Election Results President-Elect Tony Clark (Owensboro) Region 1 Director Larry Gillette (Hopkinsville) Region 3 Director John May (Louisville) Region 5 Director Jack Hoffman (Fort Thomas) At-Large Director Rosemary Nobles (Louisville) At-Large Director Paul Fox (Fort Thomas) At-Large Director Linda Wiley (Lexington) John Smither (Lexington) will serve as the 2010 President, Kevin Farris will serve as Treasurer and Ron Hughes as Treasurer-Elect. Existing members serving on the board of directors will be Immediate Past President Jeff Smith (Fort Mitchell), Treasurer Kevin Farris (Elizabethtown), Treasurer-elect Ron Hughes (Paducah), Region 2 Director Steve Cline (Bowling Green), Region 4 Director Ann McDonald (Lexington) and Region 6 Director Norman Jones (Pikeville).

serves on the board of directors for the Kentucky Association of REALTORS® and is also serving as region IV director. She currently serves as a state political coordinator and is involved with the legal action fund task force and strategic planning committee. On the local level, McDonald served as president of the Lexington-Bluegrass Association of REALTORS® (LBAR) in 2005, was awarded REALTOR® of the Year in 2007 and has served on the LBAR board of directors and RPAC committee. For many years, she has attended national REALTOR® meetings, leading LBAR to Washington to meet with senators and representatives to discuss important issues affecting the real estate industry. McDonald serves her community as a member of the Lexington, Winchester and Richmond Chambers of Commerce. In addition, she has attended past Commerce Lexington trips to other cities and also participates in “fly-ins” to Washington.

John Smither lifts the presidential gavel after being The six remaining At-Large Directors for the installed as the state include Carl Adams (Paducah), Charles 2010 KAR president.

Ballard (Louisville), Linda Sparrow (Danville), Ashley Trautner (Frankfort), Nelson Weaver (Somerset) and Janie Wilson (Fort Mitchell) Marcie Estepp (Paintsville), Stacey Fergerson (Bowling Green) and Greg Taylor (Louisville) were elected to serve as At-Large Delegates on the leadership team in 2010. Jayne Cox (Lexington) was elected to serve as a Director to the National Association of REALTORS®.

2009 KAR Awards KAR REALTOR® of the Year

Ann McDonnald (center) was not only named ROTY but also won the diamond at the Field of Bling event.

Ann McDonald, broker of three real estate offices in Winchester, Georgetown and Richmond for Coldwell Banker McMahan and a member of the Lexington-Bluegrass Association of REALTORS® (LBAR), was named KAR’s 2009 REALTOR® of the Year. McDonald

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Evelyn Pusateri congratulated (and surprised) on winning the DSA award.

KAR Distinguished Service Award Evelyn Pusateri, a member of the Greater Louisville Association of REALTORS® (GLAR), began her real estate career as a REALTOR® 38 years ago and has been serving the Louisville area ever since. She was named REALTOR® of the Year for GLAR in 1988 and was awarded the same honor in the same year for KAR. In 1992, she served as president of KAR. Pusateri was the GLAR recipient of the John R. Carpenter Award for community service in 1999 and in 2004 was placed on the GLAR Wall of Honor. She has served in nearly every capacity at the local level including president in 1989, the board of directors and committees such as finance, professional standards, leadership development and education. Pusateri served the National Association of REALTORS® as a director for nine years and various other committees since. She was part of the GLAR Extreme Makeover Team and is an active participant in “Second Chance at Life” organ donation program. Nat Sanders Education Award: Mike Parker, Florence Community Service Award: Large Board: Greater Louisville Medium Board: Madison County Small Board: Murray-Calloway County Paul M. Kendall Membership Growth Award: First Place: Cynthiana-Harrison County Second Place: South Central Kentucky Third Place: Eastern Kentucky Ammerman Attendance Award: Greater Louisville


President’s Message Off to a good start…

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t this time, I want to pause and reflect back over the past several weeks to thank each and everyone that either attended the 2010 Installation Dinner during the recent KAR Annual Convention or expressed their regrets. WHAT A NIGHT it was. First, Patricia Edison, Region 3 Director, sang the Lords’ prayer for our invocation that brought tears to your eyes (or would have if you were in the room). WOW is the best way to describe it and many, many THANKS Patricia. Now going back in time, wasn’t it GREAT having former KAR EVP Dick Rushing and his wife Margaret with us? It was such an honor to have him install me as the next president of KAR. I know each of us has special memories of the years that Dick was our EVP. Again, many THANKS to Dick for making that night extra special. Another round of thanks goes to Jayne Cox, Region IV Vice President to NAR; Jeff Smith, 2009 KAR president; Linzie Craig, Master of Ceremonies; Cinda Hatfield, KAR staff and convention specialist; and Jennifer Harris, who helped my wife with the evening. And to all the others who worked so hard to make that particular Thursday night and the entire Convention a smashing success. It goes without saying there are many others who give their time, dedication and service to our Association without asking for or receiving recognition. I thank and appreciate each of you and I am looking forward to working together in 2010. It appears Kentucky has been blessed. Not that we certainly haven’t felt the pain in our industry, but not near the pain that we have heard about in many other areas of the country. As your leaders, we need your concerns along with recommendations on how we can better serve you in the upcoming year. We know that if we all pull together we can make your Association, KAR, the best of the best.

John Smither 2010 KAR President

John Smither, 2010 KAR President

Many great thanks… What a ride it has been. As your 2009 KAR President, my era has expired and it’s time to turn over the reins to your 2010 KAR President John Smither. I have been on the road many times throughout the past year to places like Morehead, Paducah, London, Bowling Green and the Kentucky Lakes region, not to mention the multiple trips to Frankfort, Lexington and Louisville. Having been born and raised in Boone County (up north), my travels and visits around other parts of this great Commonwealth have not only been rewarding, but exciting experiences as well. My hat’s off to the staff of KAR for keeping me straight and informed on all real estate matters and reminding me to make decisions for what is best for all 10,000 plus members of the association. This may not have been this old cowboy’s last ride (NAR Director/ Regional VP) but it sure was a fast and a fun one. Thank you for allowing me to serve as your president.

Jeff Smith 2009 KAR President

WINTER 2009 KENTUCKY REALTOR® 5


Tools You Can Use Marketing Minute XX & XY differences: real estate study Most real estate agents realize that differences exist between men and women when it comes to the home buying process. The extent of these differences was unveiled in a recent Coldwell Banker survey. Below are some key highlights: Women may be inclined to make up their mind more quickly than men ... When asked how long it took before they knew their home was "right" for them, almost 70 percent of women had made up their mind the day they walked into the house, vs. 62 percent of men. Conversely, significantly more men needed two or more visits: (32 percent of men vs. 23 percent of women). Women would rather live closer to their extended family than to their job ... 55 percent of women find it more important to be closer to their extended family (those that do not live in their household) than to their job, compared to only 37 percent of men. A home’s security is a deal-breaker for both men and women ... 64 percent of women said that if they found the home of their dreams but had concerns about its security, they would no longer be interested. More than half of men agreed (51 percent). Couples say that no one "wears the pants in the relationship" in terms of major financial decisions ... When asked who wears the pants in the relationship (when it comes to major financial decisions, such as purchasing a home), almost 70 percent of respondents living with their significant other said it's actually mutual. However, 23 percent think that they, themselves, wear the pants in the relationship, not their partner. More men than women said this (26 percent vs. 20 percent, respectively). Men and women agree on how they would use a spare room, for the most part ... When the respondents were asked how they would use an extra 12 x 12 room if it could be anything they wanted, men and women agreed on the top three most popular, and very practical, responses: • Bedroom: 25 percent • Office/Study: 15 percent • Family Room/Den: 11 percent

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Reasons people move A recent survey commissioned by Relocation.com has found some optimism for the real estate and relocation biz: 50 percent of people who recently moved did so to improve their living situation, whether to move into a bigger home or move to a better neighborhood. It’s quite a change from a similar Relocation.com survey in March 2009, which found the recession played a much larger role in the decision to move. As the primary reason for moving, No. 1 on the list was to live in a bigger/better home (26 percent), followed by living in a better neighborhood or area (24 percent); to be closer to family/friends (12 percent); living in an area with a lower cost of living (9 percent); or a move that was sparked by a change in marital status (6 percent). Moving because of school, job loss, retirement or foreclosure each garnered 3 percent or less.

slydial www.slydial.com | 267-slydial Slydial is a free voice messaging service that connects you (from a landline or mobile phone) directly to someone's mobile voicemail. According to the slydial website, this program is for anyone who is short on time, wants to avoid an awkward conversation or doesn't want to bother someone, but needs to leave them a voicemail. It works by giving the receiver a new voicemail alert a minute or so after you leave them a message. With some mobile phones, the recipient's phone may emit an abbreviated "half ring" before going directly to voicemail. This saves time and effort over texting and is safer when in certain situations i.e. driving, confirming appointments, etc. You don’t even have to sign up for the service to use it and there are applications for the iPhone, BlackBerry and Windows Mobile. The service is free, however, if you do not sign up for the premium plan, you will have to listen to in-call advertising.

Cell phone reception a problem? Check your firmware Have you ever been next to someone using the same cell network as you but they are getting much better reception on their phone? The disparity in reception could be caused by different phone types, but it could also be due to outdated firmware on your device especially on older models. Firmware runs your phone’s basic functions, and keeping it current can help with network connectivity as well as fix bugs and add features. Visit your phone manufacturer’s website for firmware updates or call your network provider to gain more insight.


Feedmingle www.feedmingle.com FeedMingle is a nifty, single-use site that allows you to merge multiple RSS feeds into a single one. To do so, you simply need to add your feeds to the designated text area, one per line, then add a title to identify your mixed feed, and hit the "Mingle Now" button. The result is a mixed feed that you can you use to read all your mixed feeds in one place or in a widget that you can add to your own website or blog. FeedMingle will also autodetect feeds on a webpage if you enter the main URL of a site.

Hyperwords www.hyperwords.net What if every word in a webpage became a link, and each link could point to more than one place? That’s the goal behind Hyperwords, a free Firefox add-on that will soon be available for Windows and your smartphone. The program has been compared to a right click on steroids. To use this add-on, simply highlight text on a webpage and right-click to search Wikipedia, Google, Bing, to find images and video, maps, news sources like Reuters, and many more. You can customize Hyperwords to add other sites to the list, too. There are a multitude of other commands as well: • Shop: Amazon, Craigslist. eBay, etc. • Social media: Twitter, Facebook, etc. • Translate. • Share: e-mail, Twitter, Facebook.

New iPhone App: Bump You just ran into an old friend or meet someone new at a KAR meeting and you want to exchange phone numbers with that person. Exchanging a phone number the usual way would mean asking the other person for his/her contact information, typing in his/her name and phone number, storing it in the phone’s address book, calling the other person and having that person type in your name and storing your information. Now there’s a better way. A free iPhone app called “Bump” transfers data from one iPhone to another iPhone (or an iPod Touch) by bumping each other. Here’s how it works - while one person holds an iPhone, that person “bumps” hands with another user holding his/her iPhone (both users need to have the free Bump application on their iPhones/iPod and completed a Bump contact card). When a bump occurs, the Bump contact information is transferred to the other user’s address book, and vice versa. A user can share detailed contact information or just select data, such as a phone number. Both parties need to confirm the transaction before the information is transferred. The process takes less than 10 seconds.

Bits and Bytes

bit.ly In today’s world of online communications, there are many applications that can make things easier and more beneficial. URL shortening, a technique where a provider makes an existing web page available under a very short URL in addition to the original address, is one of those applications. The problem with sending long website addresses is they aren’t always displayed correctly. Some email programs only make part of the text ‘clickable’, which normally happens in plain text emails if the website address covers two lines, for example. It also makes it easier to post links on social networking sites, especially Twitter, where only a limited number of characters are allowed. Bit.ly, a free solution, solves these issues by converting long website URL’s into much shorter equivalents To use bit.ly and create a new version of a link, simply go to the bit.ly homepage and paste the long URL into the field on the home page, click the ‘Shorten’ button and you will then see a short version of the URL. You can then cut and paste the URL into any email, webpage, social network, etc. Have you ever emailed a link to someone and then wondered if they clicked on it? Bit.ly also provides a mechanism for you to track clickthroughs of each shortened URL. It details not only the number of times a link has been clicked but also when, how the link was found (in an email for example) and some basic geographic data.

Other URL shorteners: • • • •

tinyurl.com budurl.com cli.gs zi.ma

WINTER 2009 KENTUCKY REALTOR® 7


Business Development

Article by Rachel Bailey and Andrew Kantor, Virginia Association of REALTORS®.

icture this: you walk into a room. A woman comes up to you. You recognize her, but only just. Then a tiny voice whispers in your ear: “That’s Margaret Johannson. You met her last fall at the SPCA fundraiser. She owned a florist, retired last year. Husband died three years ago. She was thinking of moving to a smaller house closer to the shore.” What would have been a generic conversation — “Nice to see you again” — becomes a genuine connection: “How’s retirement? Did you ever get a place by the water?” And so on. When you’re in sales, it’s obvious which is better. It’s the difference between an address book and what’s called customer relationship management. CRM. A fancy term for “knowing a lot about your customers and using that knowledge to serve them better.” It’s why your business depends on you using more than a Rolodex and your memory. Contact information isn’t enough anymore. A mailing list isn’t enough. Microsoft Outlook isn’t enough. Your business depends in the short term on recruiting clients, and in the long term on keeping them connected to you. If you treat all your customers alike, not only won’t you develop solid connections, you won’t be taking advantage of what you know about them. Sales require connections. Connections require relationships. Relationships require knowledge.

“We’re a little different here,” he says. “Being a retirement destination type area, we have a tendency to get a little bit closer to the client. In one-on-one relationships, we just kind of become friends with our clients and end up being in the Lions Club together.” If you know all your clients and most of your potential clients by name, more power to ya. But that’s not most people. Most REALTORS® can’t keep everyone in their heads. That’s what CRM software is for. And no, Outlook doesn’t count. Outlook is a contact manager — a “glorified Rolodex” in the words of Gary Hall, real estate CRM consultant and former real estate agent. “Outlook doesn’t help with follow-up or transaction management,” he says. “It doesn’t help you remember anything about these people — no notes on conversations with them.” And that’s the idea of CRM: You know a lot about each of your customers, and that you use that information to interact with each one of them in the best possible way. It’s not a one-size-fits-all world anymore. Every bit of information you have about your clients makes it easier to personalize your contact — the message you send and the method you send it. Personalized contact makes you stand out. You become their REALTOR®, not a REALTOR®.

Getting personal

Not every CRM product is the same, of course, and it’s beyond the scope of this piece to review or recommend specific software. (Besides, one size doesn’t fit all.) But they share some common features and offer some common possibilities. Customer relationship management software lets you

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If you have a small client list and like it that way, you probably know most of the people you work with by name. Barry Bridges, a broker in Smith Mountain Lake, Virginia, fits into that category. He doesn’t use CRM because, he says, he doesn’t need it. 8 www.kar.com

Knowledge is power


enter and update detailed information about each of your clients — much more than simply how to reach them. (CRM systems geared toward REALTORS® may track not only clients but MLS listings as well.) It can then let you use the information in a variety of ways to cement or further your relationship. The idea is that CRM is about more than collecting lots of data. It’s about being smart enough to know what it means and how to use it. In a Rolodex or electronic address book, every entry (i.e., every person) is a separate entity, unconnected from everyone and everything else. When August 8 rolls around, your Rolodex doesn’t know that it’s John Doe’s birthday. When you get a new listing for a fourbedroom ranch, Outlook doesn’t know that Jane Smith is looking for one. CRM, on the other hand, is all about connecting the dots — and knowing the differences between them. If you want to send a monthly message, you can do a mail merge. But if you want to send specific messages to specific types of clients, you have to sort them yourself. CRM software, though, is built to do different things for different types of clients. It lets you group them anyway you like, then treat each group the right way. And because CRM software lets you track all your client interactions, you can easily see exactly how you’ve worked with every one. A decent customer service department at, say, a bank or credit card company, tracks all your contact with the company. They can tell you “I see you called back in March…” or “We sent that letter out on Thursday.” That’s CRM, tracking their interactions with you, allowing them to (in theory) give you better service. With a handful of clients, you can do that kind of thing in your head. With more than a handful, you need help. Get the data out of your head. Get it into an organized system. Once it’s there, you can do magic.

Business intelligence Knowledge isn’t intelligence, of course. Knowledge is just a collection of facts. Intelligence — which is more useful — is about using those facts. And CRM is about collecting lots of facts and then turning some intelligence on them. Take a basic example. You have two pieces of information: today’s date and your clients’ birthdays. Add some (very) basic intelligence and you can have a reminder to send a card or a note — the ol’ tickler file. You can do that with Outlook or a paper calendar, of course. You can also do better. If you want to dazzle your clients, you need to expand beyond those very basics. “The old days of having a tickler file and all that — it’s

over,” says Tina Merritt, a REALTOR® in Virginia Beach. “Yes, a Rolodex doesn’t cost a lot of money but it does cost a lot in terms of time.” In other words, a good CRM system will do some of that dazzling for you. If you had a perfect memory you could keep it all in your head. You don’t have a perfect memory. Ticklers, for example, can go beyond the basic of reminding you of a particular date. With CRM, the “trigger” can be more than a date. Events can trigger other events — a new listing, a certain amount of time passes, or something you enter into the system. Unlike in a Rolodex, CRM data are connected. That’s what gives the system its power. A simple example: You enter the preferred contact method for each of your clients. Then, once a month, anyone who had “e-mail” checked would receive a message — a personalized one, of course. But, the people who chose “paper mail” — and only those people — would be incorporated into a mail merge when you sent something by snail mail. Can you say, “postage savings”? A more complex example: When you enter a new listing (or, possibly, when one appears in your MLS), your CRM system might compare certain information about it — location, type of building, number of bedrooms, whatever — with your client base, then find matches. Ergo, you don’t need to keep all your clients’ needs in your head at all times. Taking the idea of a tickler file to the next level is just the start of what a CRM can do. Because it lets you describe your clients in more detail, CRM lets you treat them each differently. Current clients want status updates; potential clients just need a gentle reminder. (Continued on page 15) WINTER 2009 KENTUCKY REALTOR® 9


Industry News

Home Buyer Tax Credit: Extended and Expanded Reprinted from www.REALTOR.org

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n the hopes of continuing the upward swing of the national real estate market, the recent expansion and extension of the home buyer tax credit has made more than two-thirds of current homeowners and nearly all first-time buyers eligible for the credit when they purchase a home. The credit is part of the Worker, Homeownership, and Business Assistance Act of 2009, a $24 billion economic stimulus bill that is envisioned to address the economic challenges facing our nation while also energizing the U.S. housing market. The newly passed legislation does two things: • Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010. • Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

For homes purchased between January 1, 2009 and November 6, 2009, the qualifications for the tax credit may vary from the information below. If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040. Who Qualifies for the Extended Credit? First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010. Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight. To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase. Which Properties Are Eligible? The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes and co-ops. Vacation home and rental property purchases do NOT qualify. 10 www.kar.com

How Much Is Available? The maximum allowable credit for first-time home buyers is $8,000. The maximum allowable credit for current homeowners is $6,500. How is a Buyer's Credit Amount Determined? Each home buyer’s tax credit is determined by two additional factors: the price of the home and the buyer's income. Price Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less. Buyer Income Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000, may receive the maximum tax credit. These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit? Yes, some buyers may still be eligible for the credit. The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income - over $145,000 for singles and over $245,000 for couples - are not eligible for the credit.


Can a Buyer Still Qualify If He/She Closes After April 30, 2010? Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to Be Repaid? No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this threeyear period, the full amount credit will be recouped on the sale.

Find out more at www.kar.com > Media Center > Home Buyer Tax Credit.

Real World Examples Question: Existing homeowner credit: Must the new house cost more than the old house? Answer: No. For example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit. Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I went to settlement on November 20. Will I qualify for the new $6500 tax credit? Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill was signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement. Question: I am a first time homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. Since the new rules were signed into law by the time I went to settlement, will I be eligible for a credit? Answer: Yes. The new income limitations went into effect as soon as the President signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you're within the phaseout range).

Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a nonnegotiable price of $825,000. Will I be able to use any of the $6500 tax credit? Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling. Question: I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests? Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is "consecutive." As long as he lived in that house for 5 years straight what he did since 3 years doesn't impact eligibility. Question: I am an eligible first time homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me? Answer: You do not have to close before December 1. Since the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.

WINTER 2009 KENTUCKY REALTOR速 11


Legislative Issues Preparing for the 2010 Legislative Session – What You Need to Know Like many Kentucky households, the Kentucky General Assembly will be looking for ways to make ends meet when they convene in January. And like their constituents, they will be looking in many places for additional income, and asking departments to cut costs in order to make budget. REALTORS® will be watching carefully to ensure those additional sources of income don’t impact the already soft real estate market that is crucial to the economic health of the Commonwealth. Although there are already some bills filed, and many other bills being discussed and positions being formulated, KAR won’t be working on anything on our own. Our strong allies with other organizations strengthen our position when lobbying for action (or no action!). Next year, we will be working with the Kentucky Appraisers Board to enact legislation that provides regulation and guidelines for Appraisal Management Companies. We will also work again to provide some relief for our members and all business professionals who spend an enormous amount of time filing, tracking and paying occupational license fees to local jurisdictions without benefit of modern use of technology. We propose a centralized filing and collection process and will be working with the Small Business Caucus to ensure implementation of a streamlined system that is past due. We will align with many other professionals to oppose tax on services and will be prepared to calculate the additional cost to housing. Adding service tax on the many varied services related to a housing transaction may put the dream of homeownership out of reach for many potential buyers. Of course, we will work closely with the Kentucky Real Estate Commission on any legislative issues they may have come before legislators. Mostly, we will be monitoring the bills as they come forth and depending on REALTORS® to contact legislators to help inform them about how their actions impact future real estate owners. During the legislative session, KAR will be contacting REALTORS® to call or write legislators on certain issues. The impact of more than 10,000 members should let Kentucky legislators know that REALTORS® care about the issues that affect housing and their communities. All REALTORS® should participate in Calls for Action when asked to do so. REALTORS® will also be meeting with

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Join KAR for the Legislative & Business Meeting on February 9 – 11 at the Capital Plaza Hotel in Frankfort. The meeting is open to all members and registration is free and online. Visit www.kar.com > Events > Legislative & Business Meeting for more details.

legislators during our Legislative and Business Meeting in Frankfort and at the popular Legislative Reception at that event (see sidebar for dates). The following are other allied professions’ legislative issues: Kentucky Real Estate Appraisers Board Number of Members: 1,500+ Legislative concerns/issues: The Home Valuation Code of Conduct (HVCC), an agreement between New York Attorney General Andrew Cuomo and Fannie Mae and Freddie Mac, has created an avalanche of Appraisal Management Companies (AMC) across the United States. Today, there is mass confusion, inaccurate information being disseminated and financial turmoil for both appraisers and loan applicants as a result of the agreement. Unfortunately, the proliferation of AMC groups has brought many questions and many problems that lenders, appraisers, real estate agents and both buyers and sellers


have not previously faced in Kentucky. The situation is magnified by the fact there is currently no law, regulation or registration process to manage or track the AMC groups operating in Kentucky or outside of Kentucky, that order appraisal assignments from Kentucky credentialed appraisers. Recognizing the lack of regulation or registration requirement as a major oversight, the Kentucky Department of Financial Institutions contacted the Kentucky Real Estate Appraisers Board for purposes of setting a meeting with housing, lending, real estate sales and regulatory agencies in April of 2009 for purposes of exploring draft legislation to be presented for approval during the 2010 session of the Kentucky General Assembly. David Reichert, Legal Counsel with the Kentucky Department of Financial Institutions, Debra Stamper, Legal Counsel with the Kentucky Bankers Association, and James Grawe, Assistant Kentucky Attorney General and KREAB Legal Counsel, prepared draft language that was approved by the working group. The Kentucky Association of REALTORS® represented by Robert Damron, Norman Jones, Anetha Dunn Sanford, Susie Helm and the Government Affairs Committee provided revisions for what is now the most current draft language. The Kentucky Association of REALTORS® will sponsor the legislation through the coming legislative session. If the legislation is passed, the Kentucky Real Estate Appraisers Board will become the legislative authority responsible for enforcing the bill, and for drafting applicable administrative regulations. Successful passage of the legislation is critical to the citizens of Kentucky, real estate sales agents, lenders and anyone associated with buying and selling residential real estate. Therefore, real estate sales agents and brokers are urged to promote the legislation by making members of the General Assembly aware of how important it is to regulate the AMC groups and requiring they be registered in Kentucky prior to engaging Kentucky appraisers to perform appraisal assignments. If anyone has questions about the HVCC, the legislation or how appraisal assignments are ordered today for Fannie Mae and Freddie Mac loan acquisition, please contact Larry Disney, Executive Director of the Kentucky Real Estate Appraisers Board by email at larry.disney@ky.gov or telephone 859-543-8943. If you would like to see

National Federation of Independent Business (Kentucky) Number of Members: 6,000 small business owners Legislative concerns/issues: The news media is full of reports about Kentucky’s budget shortfalls. The Administration is looking for money everywhere they can find it. The only area of Kentucky’s economy not currently taxed is a sales tax on services. Bills have been floating around for a couple of years. Below a listing of services that would be covered under the bill that was filed last year and recently had a hearing in the Interim Joint Appropriations & Revenue Committee. Defense against the expansion of Sales Tax to Services will be the #1 priority for NFIB on behalf of its small business members. New Sales Tax Coverage The rental or lease of commercial real estate; and the sale, lease, or rental of shelf space or any other area used for display of a product; and Office of Real Estate Agents and Brokers (5312); Activities Related to Real Estate (5313); Advertising and Related services (5418); Market Research and Public Opinion Polling (54191); Photographic Services (54192); Translation and Interpretation Services (54193); All Other professional, Scientific and Technical Services (54199) (lawyers, engineers, accountants, etc.); Document Preparation Services (56141); Telephone Call Centers (56142); Business Service Centers (56143); Investigation and Security Services (5616); Services to buildings and Dwellings (5617) (Plumbing, HVAC, electrical, roofing, painting, drywall, etc.); Packaging and Labeling Services (56191); All Other Support Services (56199) (?) Septic Tank and Related Services (562991); All Other Miscellaneous Waste Management Services (562998) (home and commercial waste pickup and recycling); Repair and Maintenance (811) (pretty broad don't you think?); Personal Care Services (8121) (barbers, beauticians, nails, massage, etc.); Dry Cleaning and Laundry Services (8123) Other Personal Services (8129); Repeal the following exemptions: Residential Utilities (sewer, water, fuel used for heating, water heating, cooking, lighting, and other residential uses); Labor to install or apply property or Services Sold (auto repair, etc.); Purchases by Resident Non-Profit Charitable, Religious, and Educational Institutions (except

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sales to resident nonprofit institutions of higher education, kindergarten, primary, or secondary school). (Churches, PTAs, etc.); Purchases by an out-of-state agency, organization or institution exempt from sales and use tax in its state of residence (cross border sales); Purchases by Counties, Cities, or Special Districts (using taxes to pay taxes); Machinery for New and Expanded Industry (taxes new endeavors); Energy and Energy Producing Fuels (coal, electricity, gasoline, etc.); Purchases by Historical Sites; Alcohol Production Facilities (distilleries, wineries, etc.); Property Certified as a Fluidized Bed Energy Production Facility; Industrial machinery delivered to a common carrier for delivery to a location outside Kentucky; Industrial Supplies; and Limit the occasional sale exemption to the sale of tangible personal property sold by a person who is not a retailer or required to hold a retail sales permit. (yard sales still exempt) Kentucky Property Valuation Administrator’s Association Number of Members: 118 Legislative concerns/issues: The first priority of the 2010 General Session will be to secure adequate funding for the next biennium. PVA personnel costs account for 100% of the money appropriated through the legislature, so any significant decrease in funding must result in layoffs to staff across the state. As over half of the PVA offices only have 2-3 deputies, a loss of a deputy will greatly affect the ability of the office to service the public and will jeopardize the property tax calendar, resulting in delays in issuing tax bills. A delay of 1-3 months in issuing tax bills will cripple the many tax districts that depend on property tax funds, such as schools, fire districts, libraries and fiscal courts. The potential risk to these fundamental public services far exceeds the minimal savings that might result from budget cuts to the PVA office. The second priority will be to establish the elected PVA office holder as accountable to the local county's code of ethics as are all other locally elected officials. A recent court ruling established the PVA office is not subject to the executive branch ethics commission. Kentucky Society of Certified Public Accountants Number of Members: 5,200 Legislative concerns/issues: Members of the Kentucky

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Society of CPAs (KyCPA) are of course concerned about recent revenue shortfalls and what that can mean to tax structure in the future. Tax policies change behavior and can have a dramatic effect on the short-term and long-term business environment. Members of the KyCPA Tax Committee are uniquely qualified to offer independent and objective analyses on tax proposals, to help legislators and other policymakers understand the business consequences of any new tax policy. We have recently published a booklet titled, Tax Policies that Make Sense, in hopes of bringing clarity, fairness and consistency to Kentucky’s tax structure. Of particular concern are the discussions around tax on services, and the impact they could have on professionals, like REALTORS®, in every county bordering another state. If passed, it would have a dramatic impact on our current tax structure and could well affect Kentucky’s competitive standing in the region. The service tax issue is far more complex than some might suggest and the issue must be carefully and thoughtfully studied before making any determination about service tax as a viable option for the Commonwealth. Kentucky Manufactured Housing Institute Number of Members: 360 corporate members representing approximately 3,500 persons Legislative concerns/issues: Matters dealing with, but not limited to, a broad spectrum of housing and construction issues, consumer home loan lending requirements, transportation regulation and amendments to tax laws. The Kentucky Manufactured Housing Institute (KMHI) is looking ahead to a relatively low-keyed legislative agenda for the 2010 Regular Session of the Kentucky General Assembly. The KMHI’s primary objective will be to protect the interest of the manufactured and modular home industries and their consumer base. The availability and affordability of safe, well-constructed, and attractive homes for all Kentuckians appears to be more and more of a challenge for producers of new homes and sellers of previously owned homes in meeting the need for economically priced homes for families and individuals in the lower to moderate income level. These are some of the broadbased concerns that will be of concern for all housing, construction, lending and financial organizations. Industry specific legislative matters include support of


an amendment to the manufactured housing law that would require every new manufactured home installed in Kentucky to have the installation of the home inspected for compliance with the regulation standards. This is mandated by recent changes to the HUD building code for such homes. KMHI will be also monitor bills on banking and lending laws, transportation laws, certification and licensing of industry trades, landlordtenant relations and a clarification of the methodology for the application of sales tax levied on the sale of manufactured homes as tangible (personal) property.

KMHI is one of the “watchdogs” for concerns of small business. Almost all of its members are defined as small businesses. KMHI is a charter member of the Kentucky Small Business Caucus. During the 2010 regular legislative session, KMHI will be alert to amendments on taxation laws as related to small businesses; additional state mandated coverage for health care benefits; and will support workers’ compensation insurance reform to clarify the definition of the term “independent” contractor consistent with the federal IRS definition.

Kill Your Rolodex (Continued from page 9) Good touch Gone are the days when the ways of reaching your clients were limited; it’s not just mail, in person, or phone anymore. Add e-mail, Facebook, instant messages, text messages.... With some clients, of course, the old ways work perfectly. And adding e-mail to the mix certainly makes things easier and faster. And kids these days, well, they want more. “If you don’t practice real estate the way your clients do,” says Shawn Harris, an owner and broker in Alexandria, Virginia “if you can’t communicate with them the way they want to be communicated with, you’ll look like a dinosaur.” It’s not just about sending a text message to their smartphone. It’s about the right medium and the right message. The personalized message. At one end of the spectrum is the mass mailing — the generic newsletter stuffed into an envelope with an Avery address label. The next step: Mail merging that letter so your clients’ names appear in the greeting (“Dear Joe…”). Then you get into automatically-generated e-mails — for example, when a new property matches certain clients’ interests. And then there’s personalized mail based on categories of clients — one message for those interested in the West End, one for those interested in the East End. Or one for buyers and one for sellers. Segregation and customization. You put in the work up front — deciding how you want to divide your clients (“hot Internet lead,” “warm referral”), what your communications plans are (follow-ups, birthday cards, etc.), and the best way to carry them out.

Then your CRM software takes it from there. Clients in different stages of the relationship also need different information. For those you just want to keep in occasional contact with, you might use a “drip” marketing campaign, with messages sent out — by whatever means — only occasionally. Some CRM systems offer a way for clients to connect through the Web. Harris uses this method. It automatically updates his clients on the status of a sale (or purchase), and allows them to check in whenever they like via the Web. “When you enroll a client or transaction in to the system, if you update it, for instance with ‘Hi Tom and Jo, termite inspection was done today and was fine,’ if you don’t reach them or they can’t call you, they can check and see what’s going on,” he explained. CRM software, no matter how sophisticated, can at most do only what you ask it to — which means you need to think about how and when you reach out to your clients and potential clients. There’s work up front, but a lot more time savings — and client impressions — in the bargain. Nothing can ever replace a firm handshake, a personal call, and a smooth sale. So doesn’t it make sense to focus on those things, not record-keeping and mail management? “The whole point of CRM is efficiency,” says Gary Hall. “Getting more efficient means you have more time for business.” The most common excuse he hears from REALTORS® who aren’t upgrading their contacts to a CRM system: “I don’t have the time.” His response: “Nobody has the time — you have to make the time.”

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RPAC In 2009, the following REALTORS® contributed to the REALTOR® Political Action Committee (RPAC) at the major designated levels. By contributing to RPAC, you are able to support REALTOR®-friendly legislators who believe in our industry and protecting private property rights, preserving the American dream of home ownership, fighting for tax reforms and reducing burdensome regulations on our business. For more information on the value of RPAC and how it works for you, contact Anetha Dunn Sanford, Governmental Affairs Director, at anethad@kar.com or 800.264.2185. Hall of Fame members (listed in color) have contributed to RPAC a cumulative amount exceeding $25,000. *President’s Circle Big Blue R ($1,500 and up) John Davis Guy Montgomery Charlie Murphy* William Snyder Harrell Tague Sterling R ($1,000 - $1,499) Dennis Anderson Steve Cline Jayne Cox Carolyn Edwards Susan Helm Todd Hyatt Rue McFarland Jerry McMahan Ann McDonald Dot Miller Janet Perkins Lisa Presley-McGrew Steve Pulliam Betty Schutte* John Weikel* Danny Willis Thoroughbred R ($500 to $999) Alfred Blevins Tony Clark Donna Gordon-Willoughby William Leslie Brenda Loyal John Miranda Charles Nichols Russell Quick Joseph Simms John Smither Carl Tackett Pearl R ($250 to $499) C. Gary Adkinson Nancy Allison Michael Becker Santosh Bhatt Jerry Clendenin Nelson Collins James Cook Judy Craft Barbara Curtis Diana Davis

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Shirley DeBoor Donna Ensminger Paul Fox Larry Freels Douglas Garner John Groft Leslie Heath Chuck Hendricks James Huff Susan Huff Ronald Hughes Constance Lawson Elias Mashni Barbara Massman Michael McKeown Kathy Sears Don Sebastian Jeffrey Smith Rebecca Trout Kenneth Warden Nelson Weaver Casey Weesner Vicki Weesner Mike Wheatley Joan Whitman Linda Wiley V. Keith Wilson Beverly Withers Commonwealth Club ($99 to $249) Dianna Ackerman Carl Adams Sheila Adams Wayne Aines Cynthia Albright-Parrish Neleda Allen Heather Allen Joy Amann Joseph Anderson Kathleen Anderson Sharon Angermeier Jane Ashcraft-West John Aubrey Deborah Back Greg Back Deborah Ball J. Charles Ballard Mary Ballard

Mike Ballard Ned Bass Ruth Baumrucker Buzz Beard David Bell Karen Bhatt Beth Biermann John Bird David Bischof Jo Bishop Nancy Black Christel Blackburn Katrina Blomquist Pat Borg Julie Bradford Jennifer Bray David Bray Michael Brewer Brian Brockman John Bronaugh Connie Brooks Freddie Brown Jill Brown T Tyrone Brown Pitsy Buren Miriam Burich Thomas Burke John Burns Cherie Butler Wm. Buzan Connie Cahill Cindi Calvert Debi Cannon Jennifer Carroll Shirley Carter L. Steve Castlen Shelley Cates Pam Catlett Joseph Cecil Brad Chambliss Kathryn Cheuvront Ellen Christian Linda Cissna Joseph A Clabes Ryan Clendenin Bridgett Collier Charles Collier James Collier Harriet Conely Denise Conover Nancy Cook Whit Courtenay Chris Coury Linzie Craig Marti Crisler Pamela Crockarell Marilyn Cundiff Ellie Cunningham David Davis P. Diane Davis Donald Davis Joan Davis

Anthony deMovellan Geneva Dennis Brad DeVries Brenda Dexter Mark Dexter Jenny Dickson J. Ray Diuguid Camilla Diuguid Lydia Drexler David Alan Earls Kevin Eastridge Louise Edelen Glenn Edelen Patricia Edison Susan Eicher Ann Elliott Joyce Erskine-Jordan Marcie Estepp Mary Ezell John Falvey Helen Fardo Michael Farrar Stacey Fergerson John Fischbach Rita Fischer Susan Fischesser Barbara Flannery Maurice Flegle Chip Foley Charles Ford Danny Ford George Foree Donna Foster Donald Foster Sherrye Fowler Karen Fox Cathy Franck Leo Frank C Gale Fulton Mark Fulton Sandra Gaither Pat Galloway James Gambill Mike Gandolfo Lonnie Gann Rose Garant Mary Ann Garback Elizabeth Gibson Linda Gibson-Cecil Sue Gill Larry Gillette Don Gilmour Maria Gnas Michael Gooch Tonita Goodwin Brenda Gooslin Richard Grammer Glenn Green Donna Gregorich Joe Gribbins Erika Gudenkauf Sandy Gulick


Cindy Hack Emily Hacker Debra Haddad Pat Hagan Jim Halfhill Mike Hall Betty Hall Christine Hall Steve Hall Elaine Hangis Daniel Harpe Jennifer Harris Mark Hass Laura Hayden Pat Hayden Mark Haynes Steve Head Stephen Heartsill Mark Helm Marilyn Helvey Jack Hoffman Donna Hoffman Sue Holloway Alma Hopkins Elaine Hornback Gene Hornback Lynda Houck Vickie House Mary Tim Hubbs Don Hudson John Huggins Mary Helen Hulbert Sandy Huwel Michael T Inman Linda Jenkins Kathy Jennings Loretta Jobs Thomas Johns Bobbie Johnson Kelly Johnson Kenneth Jones Greg Jones John Jones Paul Jordan Bill Justice Rhonda Karageorge Charles Kavanaugh Marsha Kendrick Donald Kepple Sherri Kirk Nina Kirkland Jacqueline Klein Kathy Kopperud William Kopperud Kurt Krug Mary Ann Krumpelman Evelyn Lacey Nancy Lage Mark Lechner Brenda Lee Darrell Lewis Gregory Lile

Becky Locknane Bradley Long Philip Losey Charles Lotze Linda Luoma Pearl Luttrell David Lynch Scott Lyons Todd MacMillan Meg Manning Robert Marrett Gertrude Martin Frank Mason Mina Mattone Bonnie Mays Floyd McCarty Kathy McGann Bill McConnell Chad McCoy Donald McKinney Sue Ann McKissick Hardin McLane Marilyn McLane Wendy Meadows Randi Means Deborah Meers Joan Melloan John Melloan Jesus Menendez Sandra Metts Louise Miller Mark Miller Dennis Miller Sandra Mills Lynda Minzenberger Barbara Miranda Jennifer Misener Elizabeth Monarch Lou Ann Moore Donna Moore Linda Moore Steve Moorhead Christine Morgan Connie Morton Janice Mueller Becky Murphy Toshie Murrell Betty Musselman Douglas Myers Marion Myers William Myers Joyce Nay William Nevitt Rosemary Nobles N. G. Noffsinger Patricia Nuccitelli Paul Ogden Evelyn C Page Scott Panella Karen Pannell Ashley Parker F. Hill Parker

Regan Parker Jane Parrott Delma Peercy Kathryn Pendleton Joan Pendley Delbert Perry R."Rip" Phillips Candy Pierce Carol Pike Michael Pike David Powell Katy Prather Pat Pride Stephen Priest Brandon Priest Lawrence Profumo Evelyn Pusateri Kyra Quarles J. Richard Queen Judith Quigley Patricia Radcliff Betty Radford Joann Rankin Bruce Rankin Keith Rector Ray Rector Luly Reinhardt Becky Reinhold Nelson Rennekamp Anita Reynolds Joann Risner Gay Rittenberry Donnie Roberts Nancy Robertson Stephen Robinson Larry Rogers Brenda Rowland Kristian Ruble Grace Rucker William Rudd Angela G Sams Anetha Sanford Paul Scanlon K. Jeannine Schaefer Mark Schaffer David Schoepf Jan Scholtz Annetta Scott Marsha Segal Jim Sewell Curtis Sharff Maggie Sheets Beverly Sherrard David Sims Donald Sims Toni Skiles Michele Small Sharon Smith Torrey Smith Patsy Smith Billy Smith Colleen Smith

Janette Smith Lisa Smith Lippy Joseph Spalding Sherry Spanyer Linda Sparrow Deborah Stephens Lisa Stephenson Brenda Stewart Linda Still Melissa Stinnett Brian Stocker John Stough Rich Streicher Diana Stubblefield Greg Taylor Libbi Taylor Robert Taylor Sue Teegarden Shannon Tekelenburg Phil Terry Tom Thieneman Glenn Thomas Richard Thompson Peggy Thurza James Tinsley Sharon Toms Van Tran A. Larry Trautner Ashley Trautner Susan Treibly Lisa Tyler Kathryn E.S. Vaughn Richard Vreeland Etta Walker Colleen Walker Obey Wallen Rick Walters Lorel Ward Robert Wasylina Dean Wegley Frank Weisberg Ronald Weisberg W.Wayne West Carolyn Wheeler Stan White Jana White Thomas White Norma Wileman Shawn Willard Keith Williams Ed Williamson George Williamson Harold Wimsett Kathy Winger Louis Winkler Lisa Wolf James Woodrum Earleene Woods Jo Wright Ron Yankey Amy Zimmerman

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KREC Information Lots of information about, and developments in, continuing education By Lee B. Harris

you can choose to seek out approved courses that meet y the time you read this article, the end of the year for shorter than three hours, if this better suits your will be upon us. This, of course, means holidays, schedule. (Please note: the courses must be approved for snow days, kids out of school for winter break, out-ofone to six hours; you cannot simply sit in on a three hour town guests and lots of other potential distractions from course for one or two hours.) deadlines. However, if you are reading this and you have The Commission has begun to expand its approval of not yet completed your continuing education for this continuing education courses as well. For example, the year, please do so! The penalty for failing to timely Commission will now allow complete your hours is $500. courses in technology, social As of the end of October, media and the like. there were still 7,059 active Last Chance CORE Course In addition, the Commission licensees who had not yet Wednesday, December 30 has recently produced a fifteen completed their continuing Crowne Plaza, Lexington, KY hour post-license course for use education requirements for 2009 by all licensees. Although it is Register online or at the door - $75 (1,074 of these licensees needed (the course also counts for 6 hours law CE) not mandatory, the course is to complete the Kentucky Core available, free-of-charge, to all Course this year). This number brokerages and education is significant because it providers. This is a hands-on practical course that builds represents approximately one-half of all active licensees upon the theories learned in pre-license courses. There in this state. are sections on completing purchase and listing contracts, If you are unsure about whether you have home inspections, closings, protecting your license, completed all of your hours, you can check your agency law and federal consumer laws. continuing education information on the KREC website Finally, we are proud to announce the Commission at www.krec.ky.gov under the “KREC Database” tab. won the 2009 Association of Real Estate License Law You can also find information on our approved Officials’ Consumer Education award for our Spanish continuing education providers and the end of year Core and English language homebuyer videos. These videos Course schedules on our website under the “Continuing take a first-time homebuyer step-by-step through the Education” tab. process, outlining every phase and document that the If you are not able to complete your continuing homebuyer will need to achieve a smooth and successful education by December 31, 2009, you will need to place transaction. These videos are available through a stream your license in escrow to avoid paying the $500 penalty. on our website for use by all licensees, or you can contact You must have your escrow request, along with a check our office and order them free-of-charge on DVD. for $10, in the mail to the Commission and postmarked Happy holidays to all of you from the Commission. no later than December 31st. If you need to exercise this We look forward to working with you in 2010! option and place your license in escrow, there is a form on our website under the “Contracts and Forms” section. It is Public Access Document # 203. Your principal broker must sign the form and return your license to the Commission. To help you complete your continuing education Lee B. Harris General Counsel hours, the Commission has recently passed a new Kentucky Real Estate Commission regulation, which allows you to take approved classes in one to six hour increments. You will still need three hours of law and three hours of electives each year, but

B

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Education

Online Education with KREEF It is now possible to earn Kentucky CE credit for your real estate license renewal without leaving your home or office. These classes, available 24/7 when you want them, allow you to earn the education hours needed to keep your license active. To learn more, go to www.kar.com > Education > Online Education. Environmental Issues in Real Estate 6 hours (3 hours law credit & 3 hours elective credit) Cost: $50 Real Estate Finance Today 3 hours (3 hours elective credit) Cost: $30 Fair Housing 3 hours (3 hours law credit) Cost: $30 NAR Designation Courses Online REALTOR® University is NAR’s exclusive provider of online courses leading to NAR's official family designations and certifications - ABR, ABRM, CIPS, Green, SRES, AHWD, RSPS, REPA, TRC and more. The REALTOR® University site offers more than 400 hours of real estate education and professional continuing education to help you build skills and earn designations and certifications that differentiate you from the competition. To register and/or enroll in any of the online designation courses, visit www.kar.com > Education > REALTOR® University. Click on the appropriate link to get started. Site features include: • Free Try Before You Buy - Preview the first module of any course free of charge before enrolling. • Webinar Center - Stay on top of the latest trends and resources with "live" and "on-demand" webinars. • Video Center - State-of-the-art, "on-demand" video viewing system loaded with management tips, buyer secrets, prospecting ideas and much more from the top minds in real estate. • What's New Notification - Sign up to receive updates about new courses. • Customer Support - Toll-free customer/technical support is available Monday through Saturday.

In today's challenging market, continuing your education is the best way to invest in your real estate career. Based on the 2009 NAR Member Profile survey data, the median income of REALTORS® with no designation was $28,400, and the median income of those with at least one designation was $55,700, a difference of $27,300. Plus, pursuing an official NAR-endorsed designation program through NAR, KAR or one of its affiliates, you can improve your proficiency, skills and professional image.

Connect with KAR Choose the way you want to get your Kentucky real estate news! If you are not currently on these sites, joining is free and getting started is easy. Once you become a member, you can request to be added to the KAR groups. That’s all there is to it. Twitter twitter.com/kyrealtors KAR provides timely, breaking news updates that affect the real estate industry in 140 characters or less. You don’t have to have an account to view our tweets on the web but you have to sign up to receive updates on a mobile device or other application and to follow KAR or to be followed. Facebook www.facebook.com/group.php?gid=9244727021 Join the group and learn more about the breaking news from across the country as well as state specific events and activities. Create discussions and ask questions. You can also network by viewing other members of the group and becoming friends with them. LinkedIn www.linkedin.com/groups?gid=1323837 Find your six degrees (or less) of separation with our group page and link up with other members from across the state. Post updates, news events and learn more about what is happening in the market. ActiveRain activerain.com/groups/kar Created specifically for the real estate industry, this site contains tons of information from real estate professionals from across the country. Learn new tricks, tips and gain insight to questions you have pondered about the industry. Our group will give you a forum to ask questions and link up with other colleagues.

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KAR Convention Over 500 REALTORS® from around the state attended the 2009 KAR Annual Convention & Expo held September 29 – October 1 in Louisville, Kentucky. Judging by the survey comments, the event was a huge success for everyone involved. Under the direction on Linda Gibson Cecil and Karen Bhatt, the convention committee put together one of the best events to date with great education sessions, networking, trade show and social activities. Check out more photos from the Convention at kyrealtors.smugmug.com. (Warning: if you didn’t make it this year, you may be disappointed at all the excitement you missed)

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Mark your calendar to attend next year

French Lick Resort in Indiana September 21 – 23, 2010


2009 Convention Sponsors GRAND SLAM LEVEL Kentucky Real Estate Commission

HOME RUN LEVEL

BASE HIT LEVEL Auction Solutions GE Security Rice Insurance Services Co., LLC US Department of Housing and Urban Development Wells Fargo Home Mortgage

INSTALLATION DINNER SPONSOR Coldwell Banker McMahan Co.

COFFEE BREAK CO-SPONSORS First State Financial Inc. Rapattoni Corporation

EXHIBITORS 2-10 Home Buyers Warranty 3 Blondes and a Short Sale Aire Serv American Home Shield BB&T Mortgage Beijo Bags Catalyst Property Management Centralized Showing Service Century 21, LLC Century Mortgage Co. Cookie Lee Jewelry CRS Crye-Leike Franchises Dee Sign Co. EcoCountertops USA Farm Credit Services of Mid America Fifth Third Bank First American Home Warranty Flooring Design Center HMS Home Warranty Home Market Magazine Inc. JR Photographic and jr.txt2look.com JV Rockwell Publishing Kentucky Housing Corporation L&N Federal Credit Union Louisville Metro Housing & Community Development Magnolia Photo Booth Co. Nationwide Insurance Neat Marketing Solutions/FORCE for Earth Norstar Mortgage; Larry, the Credit Repair Guy Northern KY Real Estate College/MLS Contracts Northern KY REALTOR速 Store Old Republic Home Protection Pillar to Post Professional Home Inspections PNC Mortgage, LLC Ray Williams Inspection & Repair, LLC Real Tax Pro Realty Executives of Kentucky Servpro of Lexington & NE Jefferson Co. Systems Engineering Tennessee Valley Signs The Framing Farm The Housing Partnership, Inc Thorton's Real Estate Academy University of Kentucky Visual Tour Wave 3 TV

WINTER 2009 KENTUCKY REALTOR速 21


Local Association News Local boards/associations are encouraged to submit information for this section. Pictures must be at least 300dpi. Send all association news to hcooper@kar.com. Madison County Board of REALTORS® The Madison County Board of REALTORS® (MCBR) became closely involved with their local chapter of Habitat for Humanity mainly because of the work of Sharon Stubblefield and Bobby Johns. They are on the Board of Directors for Habitat and have been active REALTORS® for numerous years. The duo helped form the committee at the local board and convinced the MCBR board of directors to match funds collected throughout the year for Habitat for Humanity. They also work with the Community Service Committee to plan Habitat builds each year. This year’s build helped two families in Berea. The day of the build, the 12 REALTORS® who volunteered their time helped with the foundation, built a deck and installed insulation in the foundation. "Because we share a common philosophy that everyone should have a decent, safe place to live, REALTORS® in Madison County have been very supportive of Habitat's local affiliate,” says Stubblefield.

Greater Louisville Association of REALTORS® At the Greater Louisville Association of REALTORS® Annual Meeting in September, GLAR President Linda Gibson Cecil and MSI President John Fischbach, as well as both groups’ board of directors, were installed for the 2009-2010 year. Many REALTORS® were also recognized for their outstanding leadership and achievements in 2009, including: REALTOR® of the Year: John May Commercial REALTOR® of the Year: Stephen Lannert Wall of Honor: Joe Simms John R. Carpenter Award: Dennis Miller Rookie of the Year: Raymond Schmitt President’s Award: John Weikel II 40-Year Members included: Sidney Anderson, James Allen Blacketer, Robert Ford, Michael Griffin, Pat Parks, and Richard Vreeland

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In other news, GLAR hosted a free economic summit at the end of October to keep members up-todate on the most recent information available on the changing economic climate. A panel of experts, including Louisville Mayor Jerry Abramson, NAR Chief Economist Lawrence Yun, University of Louisville professor Dr. Paul Coomes and Chairman of the Mortgage Bankers Association David Kittle spoke at the event. Many issues were discussed including changes in the local economy as well as the local and national real estate outlook.

Cumberland Valley Board of REALTORS® The Cumberland Valley Board of REALTORS® recently held a huge yard sale to benefit the Children's Advocacy Program for Abused Children. Set up through the board’s PR committee, this project brought many REALTORS® together to not only donate lots of items, but hours of their time. At the conclusion of the event, the board presented a check for $1400.00 to the charity with the money designated towards a play ground for the kids. Since the play ground will ultimately cost more than the event raised, the PR committee plans to continue hosting fundraising projects until they reach their goal.

Barkley Lakes Board of REALTORS® The Kentucky Barkley Lakes Board of REALTORS® recently held a drive to collect food items for the Family Resource Centers in the area. The Family Resource Centers provide food for children on the weekends, many of who may not have their nutritional needs met though other means. The board, through the efforts of many of their members, was able to donate approximately $500 worth of food items to the organization.


Lexington-Bluegrass Association of REALTORS® The LexingtonBluegrass Association of REALTORS® Community Education Task Force has kicked off their second annual book donation project to over 105 elementary schools in the region. Each school will receive Enemy Pie by award-winning author Derek Munson. The book stresses the importance of tolerance and relationship building among children. The project is part of LBAR’s goal to become involved with the area’s school systems in innovative ways that will positively shape the future of our community’s children.

Edgewood Makes Money Magazine’s 2009 Best Places to Live In the recent Money Magazine’s breakdown of the 100 Best Places to Live, Kentucky as a state didn’t fare so well but a bright spot showed up under the “Financial” section. Edgewood, located in northern Kentucky, made the list of cities with the highest median family incomes. Below is what Money Magazine reported for this small town. Population: 8,891 Median family income (per year): $100,972 Median home price: $167,000 Civic spirit runs high in Edgewood. Each new resident receives a welcome packet upon arrival, and more than 50 residents volunteer at the local fire department. Community leaders pride themselves on the fact that neighbors stop to greet each other on the streets, and they tend to congregate in one the city's four parks or other public spaces. Cleanliness and safety are other points of pride, and popular community events are available yearround. Lexington ranked one of the “Top College Sports Towns” Forbes Magazine has named Lexington, Kentucky the fifth-best in its list of top 10 “Top College Sports Towns” in its February edition. The criteria included what Forbes called “quality of life measures” such as housing costs versus median

income, public school quality, crime and the availability and value of real estate in Lexington, KY. Here’s what Forbes Magazine had to say about Lexington: “If you like basketball and horse racing, there’s no better place in the world to live than Lexington, KY. Besides the university’s hoops team and the tracks around the city, there is quality affordable housing to be found. A four-bedroom, 2,200-square-foot home costs just $234,500, while median earners make $45,622 a year.”

Military Housing at Fort Knox With the arrival at Fort Knox of the 3rd Brigade Combat Team, 1st Infantry Division, more than 900 soldiers and their family members have moved into the surrounding communities. The brigade will be at fullstrength by spring of 2010, with as many as 3,400 soldiers and their families. In addition, the relocation of the Human Resources Command to Fort Knox will add to a substantial increase in population signifying the importance and demand for quality affordable housing in the area. Many soldiers will opt to reside off-post and, as such, those soldiers, who work extremely hard defending our country, need assurance their families are in good quality, affordable housing. Local area real estate property owners and managers seeking to advertise their rental property in the Fort Knox community are encouraged to register with the Automated Housing Referral Network (AHRN). For more information, go to www.kar.com > Consumers > Military Housing.

The Heart of Kentucky Association of REALTORS® recently recognized Hardin McLane for being a licensed agent for 50 years. McLane received his license on April 22, 1959, and his broker’s license on September 11, 1970. He served as president of the Hardin County Board of REALTORS®, as it was known, in 1974 and again in 1991. He was named REALTOR® of the Year for the local board in 1978.

WINTER 2009 KENTUCKY REALTOR® 23


27%

By The Numbers

73%

In a third-quarter pricing survey by HomeGain, the percent of home sellers who believed their homes were worth more than their agents' recommended listing price, up from 69 percent in the second quarter.

$2,472 The average closing cost for Kentucky, which ranked 44th in the country in 2009 according to Bankrate.com (rankings went from most expensive to least expensive). In 2008, Kentucky ranked 14th. Researchers requested a good faith estimate for a $200,000 loan, assuming a 20 percent down payment and good credit. The most highly variable costs – taxes, other government fees and escrow fees – are not included in the figure.

23

The median price of a vacation home fell by this percent in 2008 from 2007, according to the National Association of REALTORS®, and sales have dropped nearly 31% from 2007.

The percent of all agents who aren’t happy with the production from their websites, according to the National Association of REALTORS®.

95%

77%

24 www.kar.com

According to Nielsen Media, the percent of wireless subscribers who use texting technology.

A new Rasmussen Reports national telephone survey found this percent of homeowners who say the value of their home is likely to go up over the next year. Just 19% say the value of their home is likely to go down in the next year. Homeowners are slightly more optimistic about long-term values. 54% say the value of their home is likely to go up over the next five years, while 14% say their home’s value will fall over the next five years and 25% think it will remain about the same.

84% According to a survey by the California REALTORS®, the percent of home buyers who shop online first, and spend up to six weeks doing so before ever contacting a real estate professional. Only 13 percent of potential buyers say they read newspapers or magazine ads when searching for a home.

According to a recent report from social media service provider ViTrue, click through rates on Facebook are nearly this percent higher on Tuesdays than on any other day of the week.

40%

10%

A study released by Pear Analytics revealed that more than this percent of all tweets are "pointless babble." Another study by The Conference Board and TNS said the top reasons for tweeting are to connect with friends (42%), update their status (29%) and look for news (26%). They also use Twitter for work-related (22%) reasons. The study also shows that 30% of users are tweeting to interact with family, 30% connect with celebrities and 24% interact with other bloggers.


Housing Stats Tax credit seems to be working on home sales in Kentucky Median price lowered slightly as a result

T

he first time home buyer tax credit seems to have influenced Kentucky housing numbers in the third quarter of 2009. Home sales were up 5.33 percent for the period compared to 2008 and increased over 14 percent from the second quarter of 2009 (homes sales in the second quarter of 2009 were down over 11 percent compared to 2008). For the state, home prices and sales have worked conversely of each other during the quarter as the credit seems to be boosting sales but lowering prices. Median home prices for the state stand at $110,875 for the third quarter of 2009 versus $113,650 for 2008, a decline of 2.5 percent. Since the tax credit was recently extended and expanded, a higher level of sales and slightly lower median prices may be the case through the first half of 2010 as first time home buyers generally enter the market at a lower price point. On the national level, the outlook for housing and the economy appears headed for a sustainable recovery, according to the National Association of REALTORS®. Lawrence Yun, NAR chief economist, said the projections are enhanced by the tax credit expansion to more home buyers through the middle of 2010. “Given the success of the first-time buyer tax credit to date, and the need for qualified buyers to continue to absorb inventory that will include additional foreclosures over the coming year, we are hopeful about the impact of the expanded tax credit because it will stabilize home prices,” he said. “In fact, the credit is working better than first projected – it now looks like we’ll have 2.3 to 2.4 million firsttime buyers this year.” To relate the importance the tax credit is having on the market, the 2009 National Association of REALTORS® Profile of Home Buyers and Sellers, shows first-time buyers accounted for a record 47 percent share of home sales over the past year, up from 41 percent in the 2008 survey. The share has risen steadily since a cyclical low of 36 percent in 2006. Looking ahead, NAR is forecasting that existing-home sales will total slightly over 5

Third Quarter 2009 vs. 2008 Board/Association

# Sold # Sold 3Q 2009 3Q 2008

# Sold %

Median Price 3Q 2009

Median Price 3Q 2008

Median Price %

93250

90950

2.53%

Region One Henderson-Audubon BOR

85

104

-18.27%

Hopkinsville-Christian BOR Kentucky-Barkley Lakes BOR

118

83

42.17%

85897

105200

-18.35%

83

88

-5.68%

87750

98000

-10.46%

Madisonville-Hopkins BOR

95

104

-8.65%

103500

75185

37.66%

Mayfield-Graves BOR

73

83

-12.05%

74500

85000

-12.35%

Murray Calloway County BOR

85

78

8.97%

128000

122500

4.49%

Owensboro BOR

311

307

1.30%

109500

112193

-2.40%

Paducah BOR

177

187

-5.35%

128375

129250

0.68%

Pennyrile BOR

116

106

9.43%

102950

112500

-8.49%

Central Kentucky AOR

139

148

-6.08%

115000

115500

-0.43%

Heart of Kentucky AOR

538

443

21.44%

129500

136250

-4.95%

Old Kentucky Home BOR

161

139

15.83%

112250

114800

-2.22%

REALTOR® Assn of SKY

448

467

-4.07%

126000

121500

3.70%

Russellville-Logan BOR

43

50

-14.00%

113250

77500

46.13%

132

96

37.50%

124700

149000

-16.31%

80

82

-2.44%

99500

108200

-8.04%

3519

2993

17.57%

136800

140000

-2.29%

2294

2221

3.29%

143000

147800

-3.25%

1349

1374

-1.82%

130000

135000

-3.70%

208

219

-5.02%

91000

95750

-4.96%

Region Two

Shelbyville BOR South Central Kentucky AOR Region Three Greater Louisville AOR Region Four Lexington Bluegrass AOR Region Five Northern Kentucky AOR Region Six Ashland Area BOR Cave Run AOR Cumberland Valley BOR

47

46

2.17%

90000

110000

-18.18%

148

150

-1.33%

106000

109000

-2.75%

Eastern Kentucky AOR

115

126

-8.73%

136000

117500

15.74%

Madison County BOR

573

643

-10.89%

131125

142000

-7.66%

Pioneer Trace BOR Somerset-Lake Cumberland BOR Totals

46

49

-6.12%

70000

75625

-7.44%

159

192

-17.19%

107000

115000

-6.96%

10578

5.33%

110875

113650

-2.44%

11142

Based on information from local REALTOR associations/MLSs for the periods of July 1 – September 30, 2008 and 2009. ®

* Statistics are unavailable for the following local associations: Cynthiana-Harrison Co. & Dix River

million in 2009, a 2 percent increase compared with 2008. For 2010, NAR is predicting a gain of 13.6 percent to 5.69 million units. WINTER 2009 KENTUCKY REALTOR® 25


Community Profile A Spotlight on ... Frankfort

F

or the state capital that currently ranks as the 5th smallest in terms of population, Frankfort was very persuasive in achieving the designation. At the first meeting of the General Assembly after Kentucky was granted statehood in 1792, legislators gathered in Lexington, the state's temporary capital. Among the orders of business was choosing a permanent location as the state capital. After the dust cleared, Frankfort was chosen, with its offer to provide a temporary structure to house the legislature and a collection of materials for building a permanent structure. The small city won out over other towns that were being considered, including Lexington.

Old State House

Frankfort, founded in 1786, began as part of Virginia and was created when the Virginia legislature designated 100 acres of land owned by General James Wilkinson as the initial town. It was prior to this that Frankfort had its roots. The site that became Frankfort was one of several fords on the Kentucky River, and was located on one of the vast buffalo trails that served settlers. The first English explorers began visiting what became the Frankfort area as early as the 1750s. The name itself is said to be a shortening of "Frank's Ford," after Stephen Frank, a pioneer who was killed while making salt during an Indian attack in the 1780s. Major changes took place during the first half of the 19th century for the Commonwealth’s capital city. Outside the limits of the natural highway known as the

26 www.kar.com

Kentucky River, new modes of transportation made their way in from the coastal areas including steamboats, improved roads and the railroad. By 1800, Frankfort’s population had grown to 628, second in the state only to Lexington. Over the next several decades, residents flocked to the area and population surged to 1,099 by 1810, and by the eve of the Civil War in 1861, Frankfort had grown to 3,702. In 1849, Frankfort officially became a city, thanks to the General Assembly. Several years prior, in 1829, the Old State Capitol, the third for Kentucky, was built by influential architect Gideon Shryock. The Greek Revival style building served Kentucky as its Capitol from 1830 until 1910 when the current Kentucky State Capital was built. Prior to the building of the current Capitol, and one of the more interesting facts for Frankfort, the Old Governor's Mansion, appropriated by the General Assembly and completed in 1798, was dubbed the “Palace” in its early days and is reputed to be the oldest official executive residence still in use in the United States. Kentucky played a critical role during the Civil War, first serving as a neutral, but later pivotal, state, eventually siding with the Union. The state began the conflict divided with supporters of both sides. In fact, a group of southern sympathizers met in Russellville to establish a Confederate government for the state. The group decided on Bowling Green to serve as the Confederate state capital, and, although it elected Confederate governors to serve, it was never able to oust the elected General Assembly in Frankfort. During the War, Frankfort was invaded by Confederate troops and two forts, Fort Boone and the larger New Redoubt, were assembled atop Fort Hill on Frankfort's north side. They were instrumental when John Hunt Morgan, a Confederate general, attempted unsuccessfully to recapture the capital city. Frankfort has since dedicated Leslie Morris Park at Fort Hill to commemorate this historical chapter. The post-Civil War years were a time of growth for Frankfort. The city's population had seen double digit growth each decade since before the war, and many of the buildings and architecture were put into place during the beginning of the 20th century. The city was expanding beyond its borders and, in 1905, construction on the new Capitol began in South Frankfort.


Old Governor’s Mansion

The leading industry in Franklin County at this time, as was the case for several parts of the state, was distilling. The trade was formally halted for many years by prohibition and the Great Depression, but Frankfort kept its head above water for the most part and when the repeal of prohibition came about in 1933, distilleries in Frankfort and Franklin County started churning again and gave the local economy a lift. Today, Buffalo Trace Distillery is the most well known in the area. Since the middle of the 20th century, Frankfort has seen continued growth in population and its local economy. From 1950 to 1960 alone, the city's population nearly doubled, much of which was due to the government’s annexation of developing suburban areas. At the same time, downtown revitalization was led by the private sector with the restoration of numerous residential, commercial and mixed use buildings, mostly for the growing segment of state, and to an extent, local government. Frankfort’s historic business district remains active, however, there is more to see if you want to explore the history of Kentucky’s capital. The Old State Arsenal, the one-time repository of Kentucky's state militia and then National Guard armaments, dates back to 1850 and is associated with the assassination of Governor William Goebel, the only state governor in the United States to be assassinated while in office, in 1900. The building now houses the Kentucky Military History Museum, which contains a vivid display of firearms, small artillery pieces, edged weapons, uniforms, and personal effects from Kentucky’s past. Its educational partner, the Thomas D. Clark Center for Kentucky History, located in downtown Frankfort, has several exhibits and galleries open for exploration and a research library designed for genealogy tracing.

Downtown Frankfort

From the historical roots of being declared capital of Kentucky to the stronghold of the city during the war and the progression since, Frankfort is an interesting city with a background worth knowing a little more about.

Statement of Ownership, Management and Circulation The Kentucky REALTOR® (USPS 024-933) is published four times a year (Spring, Summer, Fall, Winter) for $10.00 per year by the Kentucky Association of REALTORS®, the subscription fee is $25 per year for nonmembers. The offices of publication and the headquarters and general business offices of the publisher, Susan W. Helm, are located at 161 Prosperous Place, Suite 100, Lexington, KY 40509. The sole owner of the publication is the Kentucky Association of REALTORS® at the address listed above. There are no known bondholders, mortgage or other security holders.

Total # copies (net press run) Paid/required subscriptions TOTAL PAID CIRCULATION Free Distribution by mail TOTAL DISTRIBUTION Copies not distributed TOTAL

Average # copies ea. issue during last 12 months 11,209 10,355 10,355 311 10,666 543 11,209

Actual # copies single issue nearest filing 10,920 10,371 10,371 349 10,720 200 10,920

I certify that the information stated is true and complete.

_________________________ , editor

WINTER 2009 KENTUCKY REALTOR® 27


From the Helm “Put on your lipstick, Susie” by Susan W. Helm

W

hen we interview members for the “A Day in the Life of” column in this magazine, the last question we always ask everyone is: “what is the best piece of advice you ever received?” Like everyone, I have received lots of advice over the years … some solicited, most not. But, sometimes advice sticks in your head and you always remember it. Not the advice your Mom gives you like pick up after yourself, brush your teeth before you go to bed kind of advice, but the really good advice that you can call on when you find yourself in sticky situations. This kind of advice really helps you get past the tough times so the good times can be enjoyed. Here are a few I have received that I have never forgotten: “You don’t even know me” When I was the association executive of a local association with 1000+ members, it was hard to get to know all of the members. The largest broker invited me to lunch to discuss how the arbitration process worked. In the middle of our discussion, he took me by surprise when he said, “Over 15% of the members in this association are from my firm, and you don’t even know me.” He was right. I didn’t really know him, or spend much time with him. He explained to me, “If I did business that way, I wouldn’t even be in business. If someone brought me 15% of our business, I would make sure I know as much about them as I could.” He wasn’t smiling. After that luncheon, though, I visited his office sales meetings several times a year and did get to know him and his agents. The lesson I took away – know your customers (in my case, members). While many members have their business in common, each member is an individual. Recognize each member’s contribution. And, knowing where your business comes from is part of the process of knowing your members. “When someone is looking for a fight, don’t give it to them” I had the unfortunate task of releasing an employee from their position. The employee didn’t take it well and retaliated against me by sending nasty e-mails about me and our association legal counsel to the entire membership. Our association officers and directors were outraged and some suggested I sue the former employee. I sought advice from my older brother, who frequently gives me his opinion (some solicited, some not). He told me: “He is looking for a fight, but if you don’t give him one, he will have nothing to fight.” And that is what I did. Some things ARE worth fighting for, but if someone is upset with you, anything you may say or do won’t likely change that. I didn’t respond to his allegations or even try to defend myself, and eventually, 28 www.kar.com

he did give up because he no longer had anyone to fight. My lesson: some things are worth fighting for, but sometimes, you just have to let it go. “Wear something befitting your position in the community” We were season ticket holders (and big fans) of the local CBA team (now unfortunately defunct). It was REALTOR® night at the game and we sold over 100 tickets to members. Representing the association, the president & I were going to shoot free-throws at halftime. So, I put on my Fort Wayne Fury shirt, jeans and tennis shoes. I asked my husband, Jim, “should I wear this?” In his diplomatic style, he said, “I think you should wear something more befitting your position in the community.” I hardly had time to change my clothes, but I did. And I am so glad I did! I shot the free throw and MADE IT! Hopefully our members were proud, and I know I was glad I wore something that looked nice for the pictures. I will never forget that … and I always try to keep in mind that I represent others when I walk out the door, even if I am just running an errand. “Put on your lipstick, Susie” Just recently, I was involved in helping to organize a very important meeting. I had to make sure everyone had their agenda, knew where everything was and that the event flowed smoothly. It was a little chaotic before the meeting. As I was talking with some of the folks at the head table, one of them said to me “put on your lipstick, Susie.” “Pardon me?” I quizzed. “Put on your lipstick” she said again. So, I went and put on my lipstick. Because if everything else around me is falling apart, I knew it was important that I had the appearance of having it all together. And no woman can have it all together unless she has on her lipstick! We all get advice from others. Some we heed, some we don’t. But, I remember these four pieces of advice that help me present a good knowledge of our members, a calm demeanor, a decent presentation of myself and selfassuredness. As we close out 2009, I am truly grateful for all the volunteers at the Kentucky Association of REALTORS®, who have devoted their time and talents in a challenging year. Your dedication to your profession will help many others succeed in the years to come. I pray for safe and happy holidays for all and look forward to a prosperous new year.

Susan W. Helm is the Executive Vice President of the Kentucky Association of REALTORS®


KAR Bylaws KAR Bylaw Amendments This serves as official notice of proposed Bylaw amendments to be voted on by the general membership of the Kentucky Association of REALTORS® at the membership meeting to be held in Frankfort, KY in February, 2010. The following are the substantive changes to the Bylaws for the general membership’s consideration: (Strikethrough text indicates text to be deleted. Underline indicates text to be added)

ARTICLE X: Miscellaneous Provisions Section 3. Robert’s Rules of Order, Current Edition, and KAR’s Special Rules of Order, if any are created and made a part of the KAR Policies and Procedures Manual, shall be recognized as the authority governing all meetings of KAR when not in conflict with the Bylaws or Articles of Incorporation; provided, however, that the decisions of

the Elections Task Force Past Presidents shall be based upon its members’ own sense of fairness. The Elections Task Force Past Presidents may rely on Robert’s Rules but shall not be bound by such authority. The Elections Task Force Past Presidents shall be bound by any matters governing elections and made a part of KAR Policies and Procedures Manual by the Board of Directors. Section 11. These Bylaws may be amended at any regular or special meeting of KAR membership by affirmative vote of two-thirds (2/3) of the REALTOR® Members and REALTOR® Emeritus Members present and voting provided that a quorum is present and provided further that written notice of the substance of any proposed amendment, specifically identifying the Article and Section to be amended, shall first have been sent to each REALTOR® Member bearing a postmark at least thirty (30) days in advance of the meeting.

WINTER 2009 KENTUCKY REALTOR® 29


A Day in the Life of... A Certified Interior Designer Ashley Trautner Frankfort, KY Certified in interior design for over 5 years

How many years have you been in real estate and what influenced you to become involved in interior design? I received my real estate license in 1968 in Louisville, and began a love affair with new construction, old architecture and the building environment in general, which led to the pursuit of interior design. The two professions actually go hand-in-hand as they have much in common in the way the business side is operated, such as working on commission, preparing contracts and working with other related professionals such as architects, appraisers, surveyors, contractors, attorneys and so on. I have found that my training in interior design has really helped me as a REALTOR® and vice versa. What training/education is required to become a Certified Interior Designer? Application is through the KY Board of Architects & Interior Designers. Generally, a person is required to complete a formal course of study, obtain a degree in interior design, serve two years as an apprentice under a state certified interior designer and then pass a two day national exam. As far as I know, I am the only certified interior designer in the state who also holds a real estate broker license. However, this is not uncommon in the larger coastal cities. In your opinion, what are some of the most important aspects a REALTOR® should look at when listing a home as far as the home’s design? I try to look at what is there now, as well as what could be possible. I look at how the home can be presented in its best light, and give a buyer the opportunity to fully appreciate the potential of the home through a home staging plan. You were recently selected to design rooms for the Governor’s Mansion. How did you get selected to participate and what room did you design? First Lady Jane Beshear mailed invitations to professional interior designers across the state, asking them to attend a reception at the Old Governors’ Mansion to discuss a renovation. Designers then submitted an application and resume’, and those selected were asked to submit a design board and present their ideas with color samples, fabric samples, etc. for review by the the Kentucky Heritage Council. I was selected to redesign the guest bath at the top of the staircase, just off the main hallway. 30 www.kar.com

What are some of the more interesting/memorable design projects that you have worked on? One client of mine purchased a house that belonged to the brother of a former US president. It had a secret light switch that summoned five police departments. I was careful not to ever flip that switch. I have also turned a horse stall at Calumet Farm into a luxurious dining room. How important do you feel it is to have a well staged home when trying to attract buyers? Great question! Everyone loves a house that is well pulled together. It does not have to be expensive, it just has to work as a house! Clutter gobbles space - get rid of it. Clean sells. Scrub the kitchen and bathrooms. Paint is cheap. Turn on lamps. Buy fresh flowers and potpourri. Entice your buyer. Make them want to live there! If a client gives you a budget of $1000 what would you spend it on before listing the property? Paint for the front door and new hardware. Good lighting when you enter the house and one good piece of artwork for a focal point. What kind of budget do you suggest when staging a home when putting it on the market? It really depends on the house. If you do the basic things, and the house itself is clutter free, clean and well lit, then you may just need to look at your furniture arrangement and window treatments. Take a good look at the kitchen and baths. You may be looking at replacing appliances and faucets. New towels, always. Is the house vacant? Consider rental furniture. Remember, shampoo carpets, get rid of odors. Play up the best features of the room. Above all else, what is your favorite thing about being in this business? Real estate is a people business we are problem solvers. Everyday is different, and each client is challenging. This is a business where I can use all of my resources to produce the very best result for my client. Repeat business and referral business is the report card that tells me how well I am doing my job. Outside of business, what is your favorite past-time? Believe it or not, my favorite past-time is looking at historic homes. I love studying family genealogy, and attending seminars on Kentucky history. My family has been in this country since 1634 and in Kentucky since 1778. Most of all, I love old Southern houses. What is the best advice you have ever received? I truly think that the best advice I ever received was from my Mother. She said the secret to staying young is to keep learning something new, stay interested, always be curious and ask questions.



KYREALTORWinter09