The CIPS Designation has positioned me to bring global investment opportunities to my clients as well as awareness to my fellow colleagues about this important niche market. After attending the first Maryland-offered Africa and International Real Estate course, I realized that ‘Emerging Countries’ is what I need to focus on as I continue to grow my global business. I’m now offering virtual webinars on investment opportunities outside of the US to my clients.
– ERICA L. SOLOMON Certified International Property Specialist
Yolanda Muckle PRESIDENT
Long & Foster Real Estate 9300 Lottsford Rd., Suite 500
Largo, MD 20774
301.249.1600
yolanda.muckle@lnf.com
Abrams Davis SECRETARY
14340 Old Marlboro Pike Upper Marlboro, MD 20772
301-702-4200
cherylabrams@remax.net
Craig Wolf
IMMEDIATE FORMER PRESIDENT
American Home Shield
907 Autumn View Ct.
Bel Air, MD 21014
443.643.6742 craig.wolf@ahs.com
Chris Hill PRESIDENT-ELECT
Century 21 New Millennium 23063 Three Notch Road California, MD 20619
301.862.2169 chris@thechrishillteam.com
Chris Jett TREASURER
Shore 4U Real Estate 23 Fountain Drive W 2nd Ocean City, MD 21842 443.523.2360 chris@shore4u.com
Chuck Kasky, RCE CHIEF EXECUTIVE OFFICER
Maryland REALTORS® 200 Harry S Truman Pkwy. Suite 200 Annapolis, MD 21401
800.638.6425 chuck.kasky@mdrealtor.org
Maryland REALTORS ®
200 Harry S Truman Parkway | Suite 200 Annapolis, MD 21401-7348
Maryland REALTORS® exists to support all segments of its membership and their specialties. Maryland REALTORS®, through collective efforts with local boards/associations and the National Association of REALTORS®:
■ Develops and delivers programs, services and related products that maintain and elevate the high standards of the real estate business and the professional conduct of its practitioners;
■ Assists members in ethically and professionally serving the public;
■ Promotes and preserves the right to own, transfer and use real property; and
■ Protects the right of members to conduct business within a framework of fair and reasonable laws and government regulations.
In principle and in practice, Maryland REALTORS® values and seeks diversity and inclusive participation within the field of real estate and recognizes each member as a unique individual.
Expanding Our Horizons
There is a true joy in our work as REALTORS®.
All of us are entrepreneurs. Every one of us has strengthened our roles as REALTORS® by diving deep into our respective communities to be the experts we are. Many of us have focused on certain specialties and have advanced our education that further defines our expertise— Graduate Realtor Institute (GRI), Accredited Buyers Representative (ABR), Seniors Real Estate Specialist (SRES), and Military Relocation Professional (MRP) to name a few.
But what if you aspire to develop your community of relationships in, say, Africa? Central America? Europe? Can you work as a REALTOR® representing places as far flung as Switzerland or Ghana, Costa Rica or Greece—while living here in Maryland?
With the Certified International Property Specialist (CIPS) designation, you can. Upon successful completion of the CIPS Institute and earning the designation, you can help your clients looking overseas, or help people overseas find properties here. Your referral network will grow internationally.
This spring, Maryland REALTORS® once again plays host to the CIPS Institute on May 17, 19, 22, 23, and 24. New this year is a course on the countries of Africa. Maryland REALTORS® was recognized by the National Association of REALTORS® as the 2022 CIPS Provider of the Year, and our instructor, Aziz Kanjee, was recognized as the 2022 CIPS Instructor of the Year. When you register for the CIPS Institute
…Maryland REALTORS® was recognized by the National Association of REALTORS® as the 2022 CIPS Provider of the Year, and our instructor, Aziz Kanjee, was recognized as the 2022 CIPS Instructor of the Year. When you sign
up for the CIPS Institute through Maryland REALTORS®, you’re getting the best instruction you can find.
through Maryland REALTORS® you’re getting the best instruction you can find.
This issue of Maryland REALTOR® magazine also highlights our association’s efforts in diversity, equity, and inclusion (DEI). Our work with DEI is part of our strategic plan, which commits the association to “further expand and integrate DEI and international programming into ongoing practices,” as it should be.
Maryland is the third most diverse state in the nation. Our state has been recognized as “America in Miniature,” and in terms of culture and geography, there’s a lot of truth to this statement. As REALTORS® who embrace diversity, it will expand your business and your referral network. Working internationally, it can’t help but broaden your world view.
NAR and Maryland REALTORS® have the tools to help you expand your opportunity. Whether it’s taking classes—many taught at our local associations—such as “At Home with Diversity,” or our recently-updated Fair Housing
course, or getting involved with our DEI Advisory Group.
The DEI Advisory Group hosts some amazing events, like “Pride in Practice,” happening later in June, or our “DEI Networking Event” at “All In!” our Annual Conference, September 19-21, at the Maryland Live! Casino & Hotel. One of the biggest parties at last years’ conference was the DEI Networking Event, and we look forward to another celebration at this coming conference!
Thank you for the work you do. Thank you for your continued professionalism. And thank you as well for expanding your international and DEI horizons by picking up this issue of Maryland REALTOR®. Together, we’re moving forward. ■
Yolanda Muckle Is Maryland REALTORS®’ 2023
President.
Accessory Dwelling Units: The First Step to Ease the Housing Crisis
BY MELISSA LAUREN, STRATEGIC COMMUNICATIONS
Maryland REALTORS® has recently completed production of an informative documentary-style video covering the important topic of Accessory Dwelling Units (ADUs).
Accessory Dwelling Units (ADUs) are small, independent living units constructed on existing properties. They can take the form of basement suites, backyard cottages, or over-the-garage apartments.
According to a Freddie Mac 2020 Maryland Housing Shortage study, Maryland needed nearly 83,000 additional homes in 2020. This number has grown significantly in the past two years; Maryland now faces a deficit of 120,000 homes. Active Inventory is down in every county in our state, and National
Association of REALTORS® economists project that home sale inventory will remain low nationwide through 2024.
Statewide ADU legislation is an important first step to help ease Maryland’s housing shortage. ADU housing serves as transitional housing for aging family members and allows them to stay near their family member caretakers while enjoying their own privacy. ADUs are affordable for renters and young professionals starting their careers.
Maryland REALTORS®’ Advocacy team will be discussing the housing inventory that statewide ADU legislation would provide with Maryland lawmakers in this current legislative
session. Allowing for ADUs on a homeowner’s existing property should be an option for all homeowners statewide.
Please take time to review this video about ADUs. You can help by sharing this video with local leaders and state lawmakers.
Please follow the QR Codes for the video and Talking Points to help you, when discussing ADUs. ADU legislation can help many more Marylanders to find a place they can call home. ■
Melissa Lauren is a Content Specialist at Maryland REALTORS®.
Review the Talking Points
Watch the Video
GRI Program 2022
The GRI (Graduate, REALTOR® Institute) designation is NAR’s nationally recognized designation, which is administered through state associations. The Maryland program consists of 72 hours, broken into two 36-hour series (i.e. Series 100 and 200). Series 100 and 200 can be taken in any order and can be taken anywhere within Maryland to suit your personal calendar. Series 100 & 200 features six modules, each six hours in length. Each module may be taken independently.
Class topics range from fair housing, agency, finance, business development, ethical conduct, and laws affecting business practice, and procedures to strengthen your skills and your business for a well-rounded real estate foundation.
You have five years to complete the 72-hour program (Series 100 and 200) to obtain the designation.
Mar yland REALTORS® offers the additional Series 300 & 400 for those interested in pursuing their broker’s or associate broker’s license. Series 300 & 400 consist of four days each. When you complete all four series, you will meet the education requirements to sit for the broker/associate broker’s exam.
It’s never been a better time to sign up for GRI! See the Maryland REALTORS® course offerings below. To register visit mdrealtor.org/education/programs/ realtor-institute-GRI.
LOOK WHAT YOU GET:
• Nationally recognized credibility
• Professional speakers
• Continuing education credits
• Increased knowledge, skill, and professionalism to better serve customers and clients
• Increased income potential
• Sets you apart from the competition
• Increased visibility toward your commitment to provide superior professional services
• Educational credit toward Maryland’s Broker or Associate Broker’s license
EARN YOUR GRI – WORK SMARTER, NOT HARDER! NO ANNUAL DUES!
SERIES 100 SERIES 200 SERIES 300 SERIES 400
Maryland REALTORS ® Annapolis
February 2, 7, 9, 16, 21, 23
June 6, 8, 12, 16, 20, 22
Maryland REALTORS ® Annapolis
March 1, 2, 7, 21, 23, 28
July 6, 13, 18, 20, 25, 27
Maryland REALTORS ® Annapolis
April 4, 18, 20, 25
October 3, 10, 12, 17
Maryland REALTORS ® Annapolis
May 2, 4, 11, 16
November 7, 9, 14, 16
CIPS: Your International Calling Card
Using the Certified International Property Specialist Designation to Take Your Business Global
Maryland is a very diverse state. Connected to two major metropolitan areas—one being the seat of our national government—our state enjoys richness that international diversity brings to communities. This also presents opportunities that a forward-thinking REALTOR® can take advantage of. The National Association of REALTORS®’ (NAR) Certified International Property Specialist (CIPS) designation is designed to elevate a REALTORS®’ mastery in working with international clientele who wish to buy property here or working with people here who wish to buy properties in other countries.
If you are looking to expand your real estate horizons, then you will want to consider attending Maryland REALTORS®’ CIPS Institute, which runs May 17, 19, 22, 23, and 24 at (LOCATION TBD). Even better, Maryland’s excellence has been recognized nationally as the recipient of the 2022 CIPS Provider of the Year award just as our instructor, Aziz Kanjee, was celebrated as the CIPS Instructor of the Year.
Jaqueline Bennett, 2023 Chair of Maryland REALTORS® Global Business Committee, sat down with instructor Aziz Kanjee to discuss the CIPS program in detail.
Jackie: Welcome Aziz. It’s an honor and a pleasure to talk to you about CIPS, the Certified International Property Specialist designation. On behalf of the Maryland REALTORS® Global Business Committee, its members, and staff, we want to thank you for taking the time to talk with us.
Aziz: It’s my pleasure. Thank you.
Jackie: First of all, congratulations for being awarded the 2022 CIPS Instructor of the Year by the National Association of REALTORS®—and you serve as the President of the Americas Division of FIABCI (the International Real Estate Federation), as well. That is phenomenal! You’ve had such an interesting and wonderful 2022. Tell us what the award means to you.
Aziz: Jackie, firstly, I must say many thanks to Maryland REALTORS®, and congratulations to your association for being awarded “CIPS Provider of the Year.” This award is the satisfaction of having done this for so many years and having imported whatever knowledge I could to fellow REALTORS® around the world. It’s really thanks to everybody for accepting and downloading all the information that I’ve been able to share with everybody around the world.
Jackie: One of the things that I appreciate about you is your vast and diverse background and experience. Tell us a bit about your background.
Aziz: Well Jackie, I’ve had an international background from day one. I was born in South Africa. I grew up in Kenya. I went on to London, England, and eventually came to Canada 47 years ago. I started in real estate as my first and my main career. I have had the opportunity of doing a lot of different things over the years and one of these things was traveling.
World travel is a wonderful experience and an education in itself. When you travel, you’re meeting people, you’re seeing countries and cities, you’re seeing how people work, how they live, and this obviously adds to your knowledge base.
At the same time, I had the wonderful opportunity of doing business while traveling. I learned a lot. As you know, learning is a lifelong thing that you’ve got to do. You cannot stop learning. Recently, when I was in Australia, for example, I went out to see how they do their real estate business by auction—another educational experience. These international experiences help broaden your mind, enabling you to build more knowledge that you can share with your fellow REALTORS®. I’ve always wanted to share and develop and help others achieve their goals. The award is confirmation of that fact.
Jackie: Your experiences have uniquely qualified you to deliver superior education when you teach your CIPS course. Tell us about your election as President of the Americas Division for FIABCI, an international federation founded in 1951 with over 70 chapters across the world. How does your role as President augment what you do in your classroom with CIPS education?
Aziz: FIABCI is made up of organizations related to the real estate industry. It’s not only real estate salespeople; it’s engineers, architects, legal, financial, and all walks of life that are associated with real estate who are involved in this wonderful organization. FIABCI has given me a springboard to work in many other countries as well. We’re hoping to grow further with some of the countries that are not yet members of this organization so that we can do business throughout the world seamlessly. I am fortunate to have friends in 70 countries around the world. We’re more like a small family that is there to support each other.
Jackie: For people who are not familiar with the CIPS designation, can you give us a snapshot of the course content and of the recent change made by NAR to that content as well?
Aziz: CIPS—Certified International Property Specialist— is a designation offered by NAR. The CIPS designation allows REALTORS® to learn how real estate is done in different parts of the world. CIPS instruction not only focuses on the real estate aspect of the business, but also focuses on governments, the global economy, the legal side of the business in different countries, and various cultures.
We essentially take a tour of the world in one week. We visit one continent each day. Recently, we have added a very interesting segment, “Africa and International Real Estate,” which has become quite an exciting subject for many of our friends around the world. This training does not give you a license to do business in those countries
It doesn’t matter what kind of language you speak because business is a universal language. Real estate certainly is a universal language. Real estate is spoken in every part of the world.
but provides the knowledge and connections to build your business with partners in many parts of the world.
Jackie: The addition of the Africa content has been extremely exciting—an eye-opening element to the CIPS course. Why should a Maryland REALTOR® explore the new Africa CIPS content?
Aziz: Great question. Over the years, we’ve seen many countries that have been called “tigers” for business, for global economic growth. We’ve seen that in Europe and Asia. The next tiger is Africa. This is a continent with almost 1.4 billion people, and the continent has come into its own. The various African countries are beginning to build stronger relationships with each other, building a stronger Africa. There are many countries in Africa that have a tremendous economic market, such as Nigeria, South Africa, Kenya, and many other countries in the north including Turkey and Egypt. These are powerful, economically thriving countries with large groups of educated and professional people who are contributing to each country’s growth. And now we have a great opportunity of doing business with and in Africa. NAR has realized this over the years and felt that we now should include Africa as an entity in itself.
Jackie: What are some considerations to have in mind when doing business in Africa?
Aziz: With 54 countries, you have probably got about 50 different languages. Fortunately, English is a very common language in most of Africa. We do have what
they call Francophone Africa, where there is French, and there might be a couple of other languages like Portuguese in Mozambique. I think it is important for our members to understand why they want to do business in a different country. It’s not only doing business in another country. It’s also about doing business in your own country with people from other countries. We are seeing a lot of that happening. There is a lot of migration from Africa to every other country in the world.
One advantage of taking the CIPS course is learning the cultures and the knowledge of how a country’s citizenry does its business, so that we can do business with these people in our country. We can help them get settled or get their next investment opportunity for them. On the other hand, somebody might be looking at it from a business investment perspective and would look at these countries and say, “Where are the opportunities for me to do business?” It doesn’t matter what kind of language you speak because business is a universal language. Real estate certainly is a universal language. Real estate is spoken in every part of the world.
Jackie: We understand the importance of this opportunity for members who are interested in widening their business pillars. We see global business as the new local business. Why do you think the CIPS Institute is such an important program, globally and locally?
Aziz: We can do global business locally and local business globally. The need for people to understand the world, to understand business, to widen everyone’s
Jackie Bennett (left), Chair of Maryland REALTORS®’ Global Business Committee and CIPS Instructor Aziz Kanjee (right).
knowledge—people are really looking for additional knowledge today, and they are looking at this type of course, CIPS, to widen that knowledge and obviously increase their business. Not only are they getting business opportunities they are also building an internal network among themselves. When they come to the CIPS Institute, they leave as friends, colleagues, and sometimes even business partners.
Jackie: In addition to earning the CIPS designation, what else do you recommend to a REALTOR® striving in that space to build global business?
Aziz: The designation is your start, but that is not the full extent of your education in international business. You have to go out and see these countries. Join the local global committees. That is a very important step. For those boards and associations that do not have global committees, I would very highly recommend that they form these committees.
The other part of it is networking. A lot of networking doesn’t happen without some kind of forum, and these boards and associations provide that. For example, there is a big international presence at the NAR conference in November. There are many delegations: Dubai, India, South America, Central America. Jump onto one of those delegations and go and see those countries.
For the new REALTOR®, this is also an expensive process. You have to plan for this. You have to make sure that you are focused on building your business. It’s not only about traveling to the countries and seeing the beautiful sites, but also about building business networking and then coming back and continuing that relationship and beginning to send business to each other as you progress. This is what international real estate is all about. By going to conferences and meeting people from different parts of the world—even different
parts of your own country—you will help grow your business. This will lead to international business. It takes time but it will happen if you put your time and energy and money into it.
Jackie: There has been a phenomenal buzz already about our upcoming spring CIPS Institute. We’re looking forward to the 2023 session: May 17, 19, 22, 23, and 24. What should students look forward to this year?
Aziz: We will have guests from each region we’re studying. Typically, when we have these events, we have lunch with food from the region. That’s another exciting thing for everyone to look forward to when we meet in person. Organizations like Maryland REALTORS®, FIABCI, and NAR organize international events. Attend those events as they will be beneficial to those looking to get into international business. ■
Register for CIPS Institute’s Spring Session
Want to expand your real estate horizons locally and globally? Register today for the CIPS Institute, happening May 17, 19, 22, 23, and 24. Follow the QR code for more information.
Scan the QR Code to Register for the CIPS Institute’s Spring Session
It’s not only about traveling to the countries and seeing the beautiful sites, but also about building business networking … and continuing that relationship and beginning to send business to each other as you progress.
Left to Right: Wayne Curtis, NeAnna Ammerman McLean, JoAnne Poole, Kenneth Fagan, Jackie Garber, and Terring Wang.
Whether you have personal experience with discriminatory behavior or are expanding your knowledge about Diversity, Equity, and Inclusion (DEI)—or are just starting out on your path to empower yourself with DEI best practices, this article is for you.
More to the point, this information is for everyone. It is crucial for real estate professionals to be informed about DEI best practices so we can serve the industry and its consumers in the best way possible. Our collective efforts lead to more comprehensive education and evaluation of public policy and legislative matters to help correct systemic inequities impacting property rights and homeownership.
REALTORS® are obligated to uphold a strict Code of Ethics and must treat all clients equally regardless of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity.
DEI in Action
Diversity, Equity, and Inclusion fuel innovation and drive success in an ever-changing business landscape while also enhancing engagement with customers and employees.
Diversity recognizes all traits and characteristics that make each person unique. The ‘dimensions of diversity’ include gender, race, ethnicity, sexual orientation, language, culture, religion, mental and physical ability, class, age, and immigration status. Diversity is a critical factor in market growth for all organizations. Diversity in upper management has clear benefits, as well, not only for developing human potential but for market growth, too.
Equity becomes apparent when there is a deliberate effort to respect each unique individual. True equity is when each individual is treated fairly and is empowered to contribute, be heard, and make decisions equally
The DEI Advisory Group members are committed to creating an authentic, vibrant, and inclusive industry culture through education, member engagement, leadership recruitment, and community outreach.”
– Susan Yashinskie Director of Professional Development and Member Engagement
with access to the same resources and opportunities. Solutions to create a more equitable environment include overcoming bias or microaggressions by developing an honest awareness of one’s biases and stereotypes.
Diversity without inclusion does not make real progress. Inclusion is when diversity is acknowledged, and intentional adjustments are made based on each individual’s unique traits and characteristics to ensure equal access and participation in all opportunities.
Organizations can implement DEI best practices by ensuring that policies and procedures allow for equal access and opportunities for all. This begins with fostering a culture that declares the value of a diverse workforce. You can provide your entire team with resources to learn about diversity, equity, and inclusion. You can provide the same professional advancement opportunities to all so everyone has the opportunity to further their professional development.
Immediate Former Chair of the DEI Advisory Group (and Former President) JoAnne Poole speaks at the DEI Networking Event at Maryland REALTORS®’ 2022 Annual Conference.
Get Involved
“The DEI Advisory Group is an incredibly engaged group committed to creating an authentic, vibrant, and inclusive industry culture through education, member engagement, leadership recruitment, and community outreach,” said Susan Yashinskie, Director of Professional Development and Member Engagement for Maryland REALTORS®. “Diversity, Equity, and Inclusion aren’t just words; this is highly personal to many, many members, including our staff, and certainly this advisory group.”
Members of the DEI Advisory Group strive to create programs that make a difference within the industry as well as the communities they serve. The group is actively engaged in outreach programs with multicultural groups, learning new ideas, and sharing best practices to achieve understanding and ultimately support a real estate industry that works for everyone: buyer, seller, and REALTOR®. The belief that everyone deserves a house they can call home is universal amongst all members, and the DEI Advisory Group is dedicated to creating programs that educate REALTORS® on how to communicate and advocate for people with different backgrounds while helping them to make the biggest purchase of their life.”
Terring Wang, Chair of the DEI Advisory Group, invites anyone with an active interest to join the DEI Advisory Group. Applications will open in the spring, and appointments run for one year beginning November 1. Keep an eye out for the announcement in a future HotSheet email.
“I’ve worked to assist same-sex couples and AfricanAmerican clients after they’ve had a less than ideal experience with an agent whom they felt had exhibited bias,” said Wayne Curtis, DEI Advisory Group Vice Chair, discussing unfortunate realities that still exist today.
“These clients didn’t feel their best interests were being protected by their previous agents. DEI means that we treat everyone with dignity and respect, even those who might not be just like us. The DEI Committee has been a great resource, and serves as a symbol that Maryland REALTORS® believes that these issues are of prime importance.” ■
A Letter from the Chair of the DEI Advisory Group,
Terring Wang
It is my honor to lead this year’s DEI Advisory Group. We are so excited about two initiatives in particular: the second annual DEI Pride in Practice event and a brandnew DEI Leadership Award.
In 2022 we held the first ever, Maryland REALTORS® Pride in Practice event. The turnout was amazing and it’s my pleasure to chair the 2023 event, building on last year’s success. The event will be held on June 6 and will take place at the Merriweather Lakehouse Hotel in Columbia, Maryland. Mark your calendars! The program will include a special keynote speaker, an engaging panel discussion, CE courses, and extensive networking opportunities. We very much hope to see everyone there!
The second initiative is the DEI Leadership Award. This is the inaugural year for the award, recently approved in 2022. It is designed to celebrate significant contributions toward creating a diverse and inclusive community through the implementation of initiatives and/or programs. Applications for the award will be open to any Maryland REALTORS® member, real estate firms, local board/associations, and their staff. So many of you have accomplished amazing things in your work and communities, and our group is very excited to celebrate these important achievements! We will launch the application process March 15, so stay tuned to our social media channels, the website, and the HotSheet. The award(s) will be presented during the September Maryland REALTORS® Inaugural event.
There is so much more the DEI Advisory Group wants to accomplish and we’d love your help. DEI is such a vital component of our industry and our lives, I encourage you to join us. I know we’re all busy and this is a time commitment, but I promise, the return on your time is tenfold. Applications will open in the spring and appointments run for one year beginning on November 1. I hope you’ll consider serving with these amazing people.
Housing, Curtis added, is a basic human need. People want to be treated equitably and fairly when they consider making one of the largest financial investments they’ll make in their lives. A REALTOR® must give all clients agency to express their homebuying needs, with the assurance these needs will be taken seriously when it comes to the homebuying process.
“Demonstrating this level of professionalism and a commitment to DEI best practices for all consumers will help an agent win their clients’ respect, their ongoing loyalty, and referrals to their family, friends, and co-workers. DEI Best Practices is just good business sense.” ■
Multicultural/Diversity Partners
Asian Real Estate Association of America (AREAA) AREAA.org
National Association of Hispanic Real Estate Professionals –Maryland Greater Capital Chapter (NAHREP) NAHREPMarylandandgreatercapital.org
National Association of Real Estate Brokers (NAREB) NAREB.com
National Association of Gay and Lesbian Real Estate Professionals (NAGLREP) NAGLREP.com
LGBTQ+ Real Estate Alliance RealEstateAlliance.org
Maryland REALTORS® Global Business Committee mdrealtor.org
Building Stronger Communities with MMP
The State of Maryland proudly supports Black History! Maryland citizens deserve affordable and quality housing regardless of ethnicity, gender, etc. Housing opportunity means everything to us at the Maryland Mortgage Program (MMP). MMP is here to help potential Maryland homebuyers with competitive rates, incredible down payment and closing cost assistance, and even student debt relief. This empowers Marylanders to build generational wealth for their families for years to come.
Fair housing practices are a crucial and integral part of the housing community. The State of Maryland is dedicated to upholding these standards and with the help of our
REALTOR® partners, we’re building stronger Maryland communities.
The Maryland Mortgage Program is specifically designed to help lower the financial burden for low to moderate income households, with the majority of home loans going to Black, Indigenous, and People of Color. We offer home loans that come with down payment and closing cost assistance and competitive interest rates. A new home could be right around the corner for potential homebuyers. The Maryland Mortgage Program has been the state’s flagship homeownership program for over 40 years.
Visit our website to learn more: https://mmp.maryland.gov/ Pages/default.aspx ■
Follow us on social to stay up to date: facebook.com/ marylandmmp/ instagram.com/ marylandmmp/ twitter.com/ marylandmmp
Greg Hare is the Assistant Secretary, Maryland Department of Housing and Community Development. mmp.maryland.gov, singlefamilyhousing. dhcd@maryland.gov, 1-800-756-0119
Can Building Bridges Lead to Building Housing?
BY LISA MAY
Newly elected officials face a steep learning curve on procedure and policy. Statewide officials in Maryland enlist transition teams of policy specialists to aid them on both fronts so that they can get up to speed quickly.
This is the case with the MooreMiller administration and housing policy. Both REALTORS® and Maryland REALTORS® staff served as members of the Housing Transition Committee, which
began meeting after the November elections.
Neither candidate for governor campaigned on an explicit platform of housing proposals, though Governor Moore signaled some interest through his focus on improving equity and generational wealth for minority populations. That interest has expanded into four policy priority areas for the transition. They include:
1. Removing Barriers to Housing by combatting redlining and discrimination in appraisals, providing tools and resources for Black families to buy and keep their homes, and enhancing protections for renters.
2. Expanding Affordable Housing options for seniors, creating dedicated funding for the Maryland Housing Trust Fund, and producing more affordable housing units.
For housing equity and opportunity, REALTORS® echoed the call to address biases within the appraisal process and publicize the remedies that consumers have when they have been subject to unfair practices.
3. Emphasizing Smart Growth and Community Development projects to guide the state’s growth and revitalization.
4. Focusing on Climate and Healthy Housing by competing for federal funding and ensuring safe housing for Marylanders.
In addition to providing feedback on the Administration’s priorities, Maryland REALTORS® also submitted to the transition team its own policy initiatives to expand housing supply, equity, and opportunity.
On the supply side, REALTORS® encouraged the state to champion several of the relatively easy prescriptions to jump-start housing production. Those include wider adoption of accessory dwelling units (ADUs), removing barriers to adaptive reuse of outdated commercial spaces, and incentivizing additional density to create mixed-use and mixed-income housing options.
Maryland is falling behind other states in the deployment of each of those tactics, which has contributed to our current housing shortage. Especially when you consider that those tools require little to no direct government subsidy to implement, it is our contention that it is time for Maryland to rejoin the ranks of housing innovators.
For housing equity and opportunity, REALTORS® echoed the call to address biases within the appraisal process and publicize the remedies that consumers have when they have been subject to unfair practices. This includes expanding our work with both the Commission on Civil Rights and the Maryland Commission of Real Estate Appraisers, Appraisal Management Companies and Home Inspectors to promote their enforcement efforts.
Protections for renters can be a dicey topic for REALTORS®, as proposals often comes at the expense of our small landlords and property managers. While we continue to oppose broad rent control measures, there are steps that Maryland can take to reduce rental increases on tenants. We have proposed an expansion of the existing Renter’s Property Tax Credit program or implementation of a homestead-type credit for lower-income landlords to ease the sharp increases in rental property values that push rents upward.
Finally, Maryland REALTORS® called for a renewed investment in two programs that serve first-time homebuyers.
The Maryland Mortgage Program offers several products to help firsttime and minority borrowers with down payments, closing costs and student loan debt. However, adoption among lenders is hampered by lower-than-industry-standard
lender compensation and added regulatory requirements. By addressing these issues, more borrowers could take advantage of the program’s offerings.
REALTORS® also championed the creation of First-Time Homebuyer Savings Accounts with 2021’s HB 1778. If you haven’t heard much about them, you aren’t alone.
The Department of Housing and Community Development (DHCD) has not had budgetary resources to promote their availability as required under the law. This presents an opportunity for our industry to work collaboratively with the General Assembly’s budgeting committees and state agencies to raise awareness of First-Time Homebuyer Savings Accounts with the public.
Our work with the Moore administration during the transition highlights not just the above priorities, but also valuable insights and resources that REALTORS® can provide in the policy-making process. By building bridges with our new state officials, we can begin the process of building the housing options Maryland so desperately needs. ■
Lisa May is the
Director of Housing and Consumer Affairs for
Maryland REALTORS®.
Rising Property Values— A Double-Edged Sword
BY CHUCK KASKY
By law, the State Department of Assessments and Taxation (SDAT) must appraise each piece of real property in Maryland once every three years. In other words, onethird of the properties in the state are reassessed every year. There are more than two million real property accounts in the state and if the value of the property has increased, the increase is phased in over the following three years. Assessments are certified by SDAT to local governments where they are converted into property tax bills by applying the appropriate property tax rates.
On December 29, 2022, SDAT announced that its 2023 reassessment of 779,573 “Group 2” residential and commercial properties resulted in an overall statewide increase of 20.6% over the past three years. The increase was higher than 2022’s 12.0% increase, representing an average increase in value of 22.2% for residential properties and 15.8% for commercial properties over the three-year period since January 2020, prior to the pandemic. All 23 counties and Baltimore City experienced an increase in residential property values for the fifth consecutive year, while commercial property values also increased in all 23 counties and Baltimore City. This is a good indicator that the market remains strong, and growth is steady here in Maryland.
We must also be conscious that a rapid rise in the cost of housing has its own negative impacts, which, when combined with rising mortgage rates, price many potential homeowners out of the market.
Remember that even if the assessed value of a property increases by 20%, the homeowner’s property taxes most likely will not. The Homeowners’ Tax Credit provides relief for eligible homeowners by setting a limit on the amount of property taxes that are owed based on their income. Residential property owners who complete a onetime application and meet certain eligibility requirements can also receive a Homestead Tax Credit, which limits their principal residence’s taxable assessment from increasing by more than a certain percentage each year regardless of their income level.
Although statewide legislation caps the increase at no more than 10% per year, many local governments have capped property taxes at lower percentages. Therefore, local governments (and the state) collect more property tax income without raising the tax rate. The existing rate applied to property that has increased in value results in additional revenue. Seeing one’s property tax burden increase is typically seen as bad news, and it most certainly is.
But the good news is because many people start to build wealth through homeownership, increasing property values, combined with paying down the mortgage principal over time, makes wealth accumulation possible. Many economists agree that paying more in property taxes is a small price to pay for the longterm benefits.
Here is another data point to consider: between 1967 and 2022, housing experienced an average appreciation rate of 4.23% per year. This rate of change indicates a
significant rise in value. If we do the math, a home that cost $100,000 in 1967 would be worth $974,192.04 in 2022. Compared to the overall inflation rate of 4.02% during this same period, price appreciation for housing was higher, and the rate of return on any investment must be higher than the rate of inflation to result in a real gain.
We must also be conscious that a rapid rise in the cost of housing has its own negative impacts, which, when combined with rising mortgage rates, price many potential homeowners out of the market. The lack of available “missing middle” housing has resulted in a rapid rise in home prices that many consider unsustainable. Our advocacy to increase the supply of housing, especially in historically disadvantaged communities, could result in a moderation of the recent rapid price appreciation. Bringing supply and demand more into balance would certainly have that result. But is that a bad thing for people who
are seeing their net worth increase and enjoying a time of increase in the “wealth effect?”
We should stay focused on the long-term positive aspects of homeownership, including not only on wealth accumulation (for us and future generations), but broader issues like community stabilization. We can harmonize these potentially competing interests by staying focused on the notion that buying a home should not be characterized as a get rich quick scheme, but part of a broad financial plan that yields benefits over a lifetime. REALTORS® will stay at the forefront of these efforts and continue to be trusted advisors for our customers and clients. ■
Chuck Kasky is the CEO of Maryland REALTORS®.
Listings Are Not A Family Affair
Q:I was speaking with a colleague from another brokerage. My colleague was “helping” a relative sell their home but hadn’t entered into a listing agreement with the relative and didn’t plan on doing so. My colleague wanted to give their relative a break and wasn’t going to charge a full commission. I didn’t think this was allowed in Maryland. Is it?
A: No, this is not permissible in Maryland. Let’s start with the definition of “providing real estate brokerage services.”
Under the Brokers Act, engaging in any of the following activities constitutes providing real estate brokerage services:
1. for consideration, providing any of the following services for another person:
i. selling, buying, exchanging, or leasing any real estate; or
ii. collecting rent for the use of any real estate;
2. for consideration, assisting another person to locate or obtain for purchase or lease any residential real estate;
3. engaging regularly in a business of dealing in real estate or leases or options on real estate;
4. engaging in a business the primary purpose of which is promoting the sale of real estate through a listing in a publication issued primarily for the promotion of real estate sales;
5. engaging in a business that subdivides land that is located in any state and sells the divided lots; or
6. for consideration, serving as a consultant regarding any activity set forth in items (1) through (5) of this subsection.
MD Code, Business Occupations & Professions, § 17-101.
Maryland law authorizes licensed brokers to provide real estate brokerage services. Being licensed as an associate broker or as a salesperson authorizes the licensee to provide real estate brokerage services on behalf of a licensed real estate broker : (i) who is named in the license certificate of the associate real estate broker or real estate salesperson; and (ii) with whom the associate real estate broker or real estate salesperson is affiliated.
An associate real estate broker or real estate salesperson license does not authorize the licensee to provide real estate brokerage services on the licensee’s own behalf or on behalf of any person other than a licensed real estate broker named in the license certificate of the associate real estate broker or real estate
salesperson. MD Code, Business Occupations & Professions, § 17-310.
Before a licensee may provide any real estate brokerage services, they must have a written and signed brokerage agreement in place. Remember that a “client” is a person who has entered into a brokerage agreement with a broker under a brokerage relationship. In order for a party or parties to be your client, they must have signed a buyer representation agreement or a listing agreement with your brokerage. There is no “friends and family” exception under Maryland law.
Recently, we have heard of licensees who believe they can “help” a neighbor, a friend, or a family member, without entering into a written brokerage agreement. Moreover, there is a belief that, offering to “help” in an informal way somehow means that the licensee is not subject to discipline by either the Maryland Real Estate Commission or the Maryland Commission on Civil Rights. This is unequivocally false. If you have a license, you are licensed 24/7, and must comply with the Brokers Act; the Code of Ethics; local, state, and federal fair housing laws; and all other applicable laws and regulations. ■
Kathleen Dartez, Esq. , is the Director of Legal Affairs for Maryland REALTORS®’.
