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.
5X WOMEN’S CHOICE AWARD® WINNER
The Coldwell Banker ® brand has been recognized as a Women’s Choice Award winner for the 5th year in a row, proving that when a company is committed to supporting and creating opportunities for women, they take notice. Partner with a brand dedicated to making a difference.
Visit CareersCB.com to get started.
Professionalism Matters
One of the cornerstones in my career has been professionalism— conducting oneself in a manner that communicates you know your work, your industry, your community, and using this knowledge to help your clients move forward in the manner they wish, to make their dreams come true. For me personally, I’ve witnessed firsthand how conducting myself professionally has enhanced the client experience, while also increasing referrals with real estate professionals I engage with nationwide.
Professionalism matters. If we are to be trusted REALTORS® within our respective communities, working with buyers and sellers in what will likely be the biggest purchase of their lives, competency and appropriate conduct is crucial.
The good news: as we are all members of the larger REALTOR® family—your local association, Maryland REALTORS®, and the National Association of REALTORS® (NAR)—our membership binds us to professional standards and a Code of Ethics that compel us to act in a professional manner. Even better, NAR provides tools to help measure our performance, our commitment to ethics, advocacy, technology, data privacy, and customer service. I’m talking about C2EX, REALTORS®’ Commitment to Excellence, of course. If you haven’t yet, I strongly encourage you to begin this self-paced journey at www.C2EX.realtor
At the state level, Maryland REALTORS® actively engages its members, encouraging them to act professionally and ethically through the many services it provides. This issue of Maryland REALTOR® highlights several of those services. If you turn to page 22, you can learn more about Leadership Academy (congratulations to the latest graduating class!). As a graduate of this program, I can attest to how it helped me develop important leadership qualities and professional competencies.
On page 19, we have information about our newest designation, the Maryland Residential Property Management Certification, most recently taught at our Annual Conference in Ocean City. No doubt, the current market has shed a larger light on the rental market. For our members looking to boost their skills in this increasingly competitive area, earning this certification provides the knowledge and skills you need to work competently and professionally in this growing market segment.
And, of course, our cover story starting on page 8 features the latest updates to the statewide forms we use on a regular basis, important changes to keep your work transparent and professional for the benefit of the clients you engage. Big thanks to Craig Wolf, now our Immediate Former President, for his work in establishing a task force to examine these forms from top to bottom, and then recommend important changes.
Each President who has occupied this statewide office has promoted professionalism in their own unique way. Think of a relay race: each President passes the baton of professionalism to the next president as they run their own lap around the real estate association track.
In 2023, we’ve got a lot planned for that lap, and as your President, I am looking forward to working with our membership to raise the profile of professionalism while also building up the REALTOR® brand that stands behind the work we all do. In the coming months, you will find out more about our 2023 initiatives, including a brand-new MarylandHomeownership.com Home Show, which will communicate to consumers the professionalism and expertise of our members. Stay tuned for important details, coming soon.
These are exciting times! I look forward to working with you and listening to you, so that all of us together can raise the profile of what it means to be an exceptional professional REALTOR®. ■
Yolanda Muckle Is Maryland REALTORS®’ 2023 President.
Maryland RPAC List of Supported Candidates
Maryland’s Election Day is November 8.
However, there are other important deadlines you should be aware of before casting your vote:
October 27
Early Voting begins from 7 AM to 8 PM each day at select Early Voting Centers
November 1
Requests to receive a Ballot by Mail must be received by State Board of Elections
November 3
Last day for Early Voting, centers close at 8 PM
November 4
Requests to receive a Ballot via the Internet must be received by State Board of Elections
November 8
ELECTION DAY: Polls Open for
In-Person Voting from 7 AM to 8 PM; Ballot Drop Boxes open until 8PM; Postmark deadline for all mail-in ballots
Federal Candidates
Endorsed by RPAC
U.S. Senate
Chris Van Hollen (D)
U.S. Congress
District 2
C.A. Dutch
Ruppersberger (D)
District 3
John Sarbanes (D)
District 4
Glenn F. Ivey (D)
District 5
Steny Hoyer (D)
District 6
David J. Trone (D)
District 7
Kweisi Mfume (D)
District 8
Jamie Raskin (D)
Maryland Statewide Candidates
Supported by RPAC
Governor Wes Moore (D)
Attorney General
Anthony G. Brown (D)
Comptroller Barry Glassman (R)
Maryland General Assembly Candidates Supported by RPAC
District 1
Jason C. Buckel (R) Delegate 1B
District 2
Paul D. Corderman (R) Senator
William Joseph Wivell (R) Delegate 2A
Brenda J. Thiam (R) Delegate 2B
District 3
Karen Lewis Young (D) Senator
Ken Kerr (D) Delegate
District 4
Barrie S. Ciliberti (R) Delegate
Jesse T. Pippy (R) Delegate
District 5
Justin Ready (R) Senator
April Rose (R) Delegate
District 6
Johnny Ray Salling (R) Senator
Robin Grammer (R) Delegate
Bob Long (R) Delegate
Ric Metzgar (R) Delegate
District 7
J.B. Jennings (R) Senator
Kathy Szeliga (R) Delegate 7A
Lauren Arikan (R) Delegate 7B
District 8
Kathy Klausmeier (D) Senator
Harry Bhandari (D) Delegate
Carl Jackson (D) Delegate
District 9
Katie Fry Hester (D) Senator
Trent Kittleman (R) Delegate 9A
Courtney Watson (D) Delegate 9B
District 10
Ben Brooks (D) Senator
Adrienne A. Jones (D) Delegate
District 11
Shelly Hettleman (D)
Senator
Jon S. Cardin (D) Delegate 11B
Dana M. Stein (D) Delegate 11B
District 12
Clarence Lam (D)
Senator
Jessica Feldmark (D) Delegate 12A
Terri Hill (D) Delegate 12A
District 13
Guy Guzzone (D) Senator
Vanessa Atterbeary (D) Delegate
Jen Terrasa (D) Delegate
District 14
Craig J. Zucker (D) Senator
Anne R. Kaiser (D) Delegate
Eric Luedtke (D) Delegate
Pamela Queen (D) Delegate
District 15
Brian J. Feldman (D) Senator
Linda Foley (D) Delegate
David Fraser-Hidalgo (D) Delegate
Lilly Qi (D) Delegate
District 16
Susan C. Lee (D) Senator
Ariana Kelly (D) Delegate
Mark Korman (D) Delegate
Sara N. Love (D) Delegate
District 17
Cheryl C. Kagan (D) Senator
Kumar P. Barve (D) Delegate
Julie Palakovich Carr (D) Delegate
Joe Vogel (D) Delegate
District 18
Jeff Waldstreicher (D) Senator
Aaron Kaufman (D) Delegate
Emily Shetty (D) Delegate
Jared Solomon (D) Delegate
District 19
Ben Kramer (D) Senator
Charlotte Crutchfield (D) Delegate
Bonnie Cullison (D) Delegate
Vaughn Stewart (D) Delegate
District 20
Will Smith (D) Senator
Lorig Charkoudian (D) Delegate
David Moon (D) Delegate
Jheanelle Wilkins (D) Delegate
District 21
Jim Rosapepe (D) Senate
Ben Barnes (D) Delegate
Mary Lehman (D) Delegate
Joseline Pena-Melnyk (D) Delegate
District 22
Paul G. Pinsky (D) Senator
Anne Healey (D) Delegate
Alonzo T. Washington (D) Delegate
Nicole Williams (D) Delegate
District 23
Ron Watson (D) Senator
Marvin E. Holmes, Jr. (D) Delegate
Adiran Boafo (D) Delegate
Kym Taylor (D) Delegate
District 24
Joanne C. Benson (D) Senator
Jazz M. Lewis (D) Delegate
District 25
Melony G. Griffith (D) Senator
Darryl Barnes (D) Delegate
Nick Charles (D) Delegate
Karen Toles (D) Delegate
District 26
C. Anthony Muse (D) Senator
Veronica Turner (D) Delegate
Kriselda Valderrama (D) Delegate
Jamila Woods (D) Delegate
District 27
Michael A. Jackson (D) Senator
Kevin Harris (D) Delegate 27A
Jeffrie Long (D) Delegate 27B
Mark N. Fisher (R) Delegate 27C
District 28
Edith J. Patterson (D) Delegate
C.T. Wilson (D) Delegate
District 29
Jack Bailey (R) Senator
Matt Morgan (R) Delegate 29A
Brian Crosby (D) Delegate 29B
Todd B. Morgan (R) Delegate 29C
District 30
Sarah Elfreth (D) Senator
Shaneka Henson (D) Delegate 30A
Dana Jones (D) Delegate 30A
Seth Howard (R) Delegate 30B
District 31
Bryan W. Simonaire (R) Senator
Brian Chisolm (R) Delegate
Nicholaus R. Kipke (R) Delegate
Rachel Munoz (R) Delegate
District 32
Pamela Beidle (D) Senator
J. Sandy Bartlett (D) Delegate
Mark S. Chang (D) Delegate
Mike Rogers (D) Delegate
District 33
Sid Saab (R) Senator
Kim Mills (R) Delegate 33A
Stuart Michael
Schmidt, Jr. (R) Delegate 33B
Heather A. Bagnall (D) Delegate 33C
District 34
Steve Johnson (D) Delegate 34A
Susan K. McComas (R) Delegate 34B
District 35
Jason C. Gallion (R) Senator
Mike Griffith (R) Delegate 35A
Teresa Reilly (R) Delegate 35A
Kevin Bailey
Hornberger (R) Delegate 35B
District 36
Stephen S. Hershey, Jr. (R) Senator
Steve Arentz (R) Delegate
Jeff Ghrist (R) Delegate
Jay A. Jacobs (R) Delegate
District 37
Johnny Mautz (R) Senator
Sheree Sample-Hughes Delegate 37A
Christopher T. Adams (R) Delegate 37B
District 38
Mary Beth Carozza (R) Senator
Charles James Otto (R) Delegate 38A
Carl Anderton Delegate 38B
Wayne A. Hartman (R) Delegate 38C
District 39
Nancy J. King (D) Senator
Lesley J. Lopez (D) Delegate
Kirill Reznik (D) Delegate
Gabriel Acevero (D) Delegate
District 40
Antonio Hayes (D) Senator
Marlon D. Amprey (D) Delegate
Frank M. Conaway, Jr. (D) Delegate
Melissa Wells (D) Delegate
District 41
Jill P. Carter (D) Senator
Tony Bridges (D) Delegate
S.I. “Sandy” Rosenberg (D) Delegate
Dalya Attar (D) Delegate
District 42
Chris West (R) Senator
Nino Mangione (R) Delegate 42A
Michele Guyton (D) Delegate 42B
Joshua J. Stonko (R) Delegate 42C
District 43
Mary Washington (D) Senator
Regina T. Boyce (D) Delegate 43A
Cathi Forbes (D) Delegate 43B
District 44
Charles E. Sydnor, III (D) Senator
Eric Ebersole (D) Delegate 44A
Sheila Ruth (D) Delegate 44B
Aletheia McCaskill (D) Delegate 44B
District 45
Cory V. McCray (D) Senator
Stephanie Smith (D) Delegate
District 46
Bill Ferguson (D) Senator
Luke Clippinger (D) Delegate
Robbyn Lewis (D) Delegate
Mark Edelson (D) Delegate
District 47
Malcolm Augustine (D) Senator
Diana M. Fennell (D) Delegate 47A
Robert Julian Ivey (D) Delegate 47A
This RPAC list was the latest information at the time of publication. An updated and complete list of RPAC-supported candidates will be shared prior to the start of early voting through email and on the Maryland REALTORS® website. ■
Update on Statewide Forms
A Summary of Changes and Practice Tips
JAMES S. BESLITY, ESQ.
It’s that time of year again as Maryland REALTORS® presents annual updates to its Statewide Forms Library, which contains the form contracts, disclosures, and addenda that members like you use to service your clients and bring real estate transactions to settlement. This year’s changes bring a total of nine (9) new forms, including a reorganized Residential Contract of Sale, as well as five (5) revised forms.
In this feature, we offer a summary of these changes and some helpful practice tips. We also strongly encourage you to take advantage of our additional educational materials, including a series of informational videos and a comprehensive Manual of Changes and Practice Tips covering all the annual updates, available at https://mdrealtor.info/Forms, or by clicking the QR Code on this page.
As always, brokers and office managers seeking additional support are welcome to contact our Legal Affairs Department attorneys to schedule Statewide Forms Update sessions for their agents. Association attorneys are also available via our Legal Hotline service to answer questions about all Statewide Forms provided by Maryland REALTORS ®.
NEW FORMS
Residential Contract of Sale
The Residential Contract of Sale was substantially updated and restructured as part of a joint effort between a Contracts Review Task Force assembled by 2022 Maryland REALTORS® President, Craig Wolf, and the Statewide Forms Committee. Arguably the most noticeable change is that the paragraphs contained within the Residential Contract of Sale have been reorganized by subject matter into seven sections:
1. General Contract Provisions
2. Payment of the Purchase Price
3. Property Condition and Inspections 4. Property-Specific Disclosures 5. General Disclosures
6. Transfer of Title and Closing
7. Breach of Contract and Dispute Resolution
Other notable aspects of the new Residential Contract of Sale include:
■ Paragraphs that address conducting the transaction electronically, including electronic signatures and electronic delivery of documents, have been combined and stated in Section One (see paragraph #12).
■ The Leases paragraph (#16) in Section One has been updated to reference that sale transactions involving tenant-occupied properties should include a Tenant Occupied Addendum
PRACTICE TIP
The sale or transfer of real property does not invalidate any Lease Agreement or landlord-tenant relationship that may exist between a seller and tenant. Sellers of properties where a tenant is in place should include the Tenant Occupied Addendum amongst their other disclosures to put prospective buyers on notice of the tenancy.
■ The Wood-Destroying Insect Inspection paragraph was removed to bring the Residential Contract of Sale closer to a true, “As Is” contract. The buyer’s option to conduct a wood-destroying insect inspection is now contained within the new Property Inspections Addendum
■ The Inclusions/Exclusions paragraph (#24) in Section Three now references the new Disclosure of Inclusions, Exclusions, Leased Items, and Utilities Addendum as the document on which the parties should memorialize their agreement as to those items.
■ The Homeowner’s Association / Condominium paragraph (#27) in Section Four—Property Specific Disclosures—now references the need for sellers to acknowledge whether a subject property is part of a homeowner’s association and/or a condominium regime
■ The Transfer Charges paragraph (#51) within Section Six—Transfer of Title and Closing—features new language that is designed to clarify that the default agreement is for buyers and sellers to equally share all transfer and recordation taxes. The Transfer Charges paragraph now contains space for the parties to state their agreement as to a different split of those charges, including instances when the buyer is a First-Time Maryland Homebuyer. The Maryland First-Time Homebuyer Transfer and Recordation Tax Addendum has been retired.
PRACTICE TIP
A simple statement within the appropriate blank field provided in the Transfer Charges subparagraphs, such as “Seller to pay all transfer and recordation taxes,” will suffice to state an agreement other than an equal split of transfer charges.
■ The Date of Contract Acceptance field under the signature lines for the parties now includes a definition. The Date of Contract Acceptance is defined as the “date on which all final initials and signatures of all parties have been affixed to this Contract.”
Property Inspections Addendum
The new Property Inspections Addendum incorporates wood-destroying insect inspections as an option for buyers, whereas that right was previously contained within the body of the old Residential Contract of Sale. We note that the Veterans Administration recently changed its policies regarding wood-destroying insect inspection fees and repair costs, such that these fees and costs may now be paid by VA buyers. If VA buyers wish to retain the right to negotiate payment for repairs of damage caused by wood-destroying insects with the seller, the Wood Destroying Insect inspection line should be initialed in the Property Inspections Addendum (see Paragraph 1.A(7)).
Pursuant to Paragraph 1.B(i), buyers now can unilaterally terminate the Contract of Sale based on their general dissatisfaction with the results of the inspection(s). The basis for this change is rooted in the reality that many buyers simply do not wish to proceed with a transaction where the property is discovered to have certain unacceptable conditions—regardless of whether the seller is willing to conduct repairs or offer a credit. The old Property Inspections Addendum gave buyers no option but to request repairs, often resulting in failed negotiations, wasted time, and breaches of Contracts of Sale giving way to protracted disputes. Affording buyers the ability to unilaterally terminate the Contract of Sale within the Property Inspections Addendum also renders the As Is Addendum obsolete, thereby allowing us to retire the As Is Addendum from the Statewide Forms Library.
PRACTICE TIP
The now-retired As Is Addendum was often misused, in that buyers who incorporated it into their offer would later leverage it as a way to request repairs or credits—even though the As Is Addendum afforded buyers no contractual right to do so. These scenarios resulted in sellers being caught off guard by unexpected repair requests when the transaction was meant to be As Is, as well as improper use of the Property Inspections Notice and disputes over repair negotiations.
Finally, the parties both gain a contractual framework to engage in “additional negotiations” over repairs or seller credits pursuant to inspection results (see Paragraph 1.B(iv)). This change is reflected in the revised Property Inspections Notice.
Additional As Is Provisions Addendum
The Additional As Is Provisions Addendum is designed to address situations (for example, estate sales) where a subject property may need to be conveyed:
■ With trash and debris remaining in the property;
■ With unresolved orders or notices of violations issued against the property by a condominium regime or homeowner’s association, and/or;
■ With unresolved orders or notices issued against the property by governmental authorities.
PRACTICE TIP
Members representing buyers should explain to their clients that they may be responsible for resolving such violation notices and orders after settlement, should they agree to these provisions in the Additional As Is Provisions Addendum.
Disclosure of Inclusions/Exclusions, Leased Items, and Utilities Addendum
This form is designed to serve as a single place for sellers to disclose what items will be included and excluded in a sale of their property, the leased items may exist on the property, and what utilities service the property.
With this change, there is no need for a statement of Inclusions/Exclusions in the new Residential Contract of Sale. The Inclusions, Exclusions, and Utilities Addendum to Exclusive Right to Sell Residential Brokerage Agreement was also retired.
PRACTICE
TIP
The completed Disclosure is designed to be uploaded to the MLS by listing agents to be reviewed and submitted by buyers as an Addendum to their offer. This practice eliminates the need for members representing buyers to copy data from the MLS into the Residential Contract of Sale.
Advanced Treatment Unit (ATU) and/or Best Available Technology (BAT) Septic System Disclosure
Per state regulations, “ATU” and “BAT” septic systems installed on properties require an ongoing maintenance contract to remain in place or that homeowners otherwise comply with maintenance, testing, and reporting requirements. These systems utilize technology approved by the Maryland Department of the Environment for removing nitrogen from onsite sewage disposal systems.
This new form allows sellers to disclose the existence of such systems on a property and provide the necessary documentation and information to buyers so buyers can remain in compliance with system maintenance, testing, and reporting requirements.
PRACTICE
TIP
ATU/BAT systems are required in Maryland for new large septic systems with a design flow of 5,000 gallons per day or greater and all new systems installed within “Critical Areas” (land within 1000 feet of tidal waters). Listing agents should encourage sellers with property serviced by on-site septic to contact their septic service provider to confirm whether their system contains ATU/BAT components.
Change in Terms Addendum to Brokerage Agreement
This form allows the parties to any of the four (4) Maryland REALTORS® Brokerage Agreements to agree to changes in terms. This single form was developed to work across all four (4) Brokerage Agreements, with the subject Agreement to be amended identified by a checkbox at the top of the form.
PRACTICE
TIP
Always ensure that you are authorized by your broker or their designee to sign any contractual agreements on behalf of your brokerage.
Post Settlement Occupancy Agreement
This form serves as a separate contractual agreement between parties to a residential sale transaction—it is not an addendum to the Residential Contract of Sale. The form allows a buyer to grant a seller a license to remain in the subject property for no more than sixty (60) days after settlement.
PRACTICE
TIP
Buyers who purchase and finance properties that they affirm will serve as their owner-occupied, primary residence are required by most lenders to occupy those properties within sixty days of closing. The failure of such a buyer to timely occupy the property could result in allegations of mortgage fraud. Accordingly, the Post Settlement Occupancy Agreement is designed to accommodate occupancy periods of no more than sixty days.
PRACTICE
TIP
The phrase ‘rentback’ should be avoided when addressing the potential for post-settlement occupancy, as the term ’rent’ implies the establishment of a landlord-tenant relationship.
Commercial Property Exclusive Listing and Commission Agreement
This form may be used by brokers seeking to list improved or unimproved commercial properties.
PRACTICE
TIP
Members who wish to expand their business into commercial real estate transactions should do so only with the guidance and supervision of experienced brokers. Buyers and sellers of commercial properties will generally require the counsel of a licensed attorney to bring such transactions to settlement, as the nature and particular terms of commercial transactions often vary greatly from property to property.
Addendum A to Commercial Property Exclusive Listing and Commission Agreement
This form, designed to be used together with the Commercial Property Exclusive Listing and Commission Agreement form, allows brokers and their seller-clients to document property-specific information such as exclusions, leased items, amenities, and the utilities that serve listed commercial property.
REVISED FORMS
VA Financing Addendum
The title of the Termite Inspection paragraph has been changed to “Wood Destroying Insect Inspection.” The content of the paragraph has been updated to reflect the Veterans Administration’s recently updated policy regarding payment of wood-destroying insect inspection fees and repair costs. Specifically, while a wooddestroying insect inspection is still required by the VA, the inspection fees and costs associated with necessary repairs may now be paid by VA buyers.
PRACTICE
TIPVA buyers should continue to use the Property Inspections Addendum and Notice to ensure they retain the contractual right to conduct inspections of all kinds, including wood-destroying insect inspections, and negotiate the cost of necessary repairs with the seller.
Conventional Financing Addendum
The final subparagraph of the Appraisal Contingency section has been amended to add the following verbiage:
“Buyer’s failure to provide written notice to the Seller of their election within the agreed-upon timeframe will automatically constitute the Buyer’s agreement to elect to purchase the property at the Purchase Price in accordance with Option ‘B’ in this subparagraph.”
Property Inspections Notice
The “PIN” has been updated to conform with the new Property Inspections Addendum.
Exclusive Right to Sell Residential Brokerage Agreement
The Addenda paragraph (#32) has been updated to reflect the retirement of the Inclusions/Exclusions and Utilities Addendum to Exclusive Right to Sell Residential Brokerage Agreement.
Unimproved Land Contract of Sale
The Unimproved Land Contract of Sale has been updated to remain consistent with the organization and verbiage of the new Residential Contract of Sale, where applicable and practical.
RETIRED FORMS
The following forms have been retired by Maryland REALTORS®:
1. Disclosure of Leased Items Addendum to Contract of Sale
2. Inclusions/Exclusions and Utilities Addendum to Exclusive Right to Sell Residential Brokerage Agreement
3. Residential Contract of Sale (last revised October 2021)
4. Property Inspections Addendum (last revised October 2021)
5. As Is Addendum
6. First-Time Maryland Homebuyer Transfer and Recordation Tax Addendum ■
The National Association of REALTORS® and its affiliated Institutes, Societies, and Councils provide a wide-range of programs and services that help members increase their skills, proficiency, and knowledge. Designations and certifications acknowledging experience and expertise in various real estate sectors are awarded by NAR and each affiliated group upon completion of required courses.
NAR Family Designations
Accredited Buyer’s Representative / ABR®
The Accredited Buyer’s Representative (ABR ® ) designation is designed for real estate buyer agents who focus on working directly with buyer-clients at every stage of the home buying process.
Presented by REBAC (Real Estate Buyer’s Agent Council)
Contact REBAC at rebac@realtors.org(link sends e-mail) or 800-648-6224.
Accredited Land Consultant / ALC
The esteemed Accredited Land Consultants (ALCs) are the most trusted, knowledgeable, experienced, and highest-producing experts in all segments of land. Conferred by the REALTORS® Land Institute. The designation requires successful completion of a rigorous LANDU education program, a specific, high-volume and experience level, and adherence to an honorable Code of Conduct.
Presented by the REALTORS ® Land Institute (RLI)
Contact RLI at 800.441.5263 or rli@realtors.org.
Certified Commercial Investment Member / CCIM
The Certified Commercial Investment Member (CCIM) designation is commercial real estate’s global standard for professional achievement, earned through an extensive curriculum of 200 classroom hours and professional experiential requirements. CCIMs are active in 1,000 U.S. markets and 31 other countries and comprise a 13,000-member network that includes brokers, leasing professionals, asset managers, appraisers, corporate real estate executives, investors, lenders, and other allied professionals.
Presented by the CCIM Institute
Contact CCIM at 800-621-7027 or www.CCIM.com.
Certified International Property Specialist / CIPS
Instantly align yourself with the best in international real estate by earning the CIPS designation. The designation requires completion of five full-day courses focusing on the critical aspects of international real estate transactions. CIPS designees are connected to an influential network of over 3,500 professionals who turn to each other first when looking for referral partners.
Presented by the National Association of REALTORS ®
Contact Member Support at CIPS@realtors.org or 1-800-874-6500 ext. 8369.
Certified Property Manager® / CPM®
CPM ® designees are recognized as experts in real estate management. Holding this designation demonstrates expertise and integrity to employers, owners, and investors.
Presented by Institute of Real Estate Management (IREM)
Contact IREM ® at 800-837-0706, ext. 4650.
Certified Real Estate Brokerage Manager / CRB
The Certified Real Estate Brokerage Manager (CRB) is one of the most respected and relevant designations offered in real estate business management and is awarded to REALTORS® who have completed advanced educational and professional requirements. CRB Designees are better positioned to streamline operations, integrate new technology and apply new trends and business strategies. Visit REBInstitute.com or contact the Real Estate Business Institute (REBI) at info@REBInstitute.com or 800-621-8738
Certified Residential Specialist / CRS
The CRS designation is the highest credential awarded to residential sales agents, managers, and brokers. On average, CRS designees earn nearly three times more in income, transactions, and gross sales than non-designee REALTORS®.
Presented by Residential Real Estate Council
Contact RRC at https://www.crs.com/about-us/contact-us or 800-462-8841.
Counselor of Real Estate® / CRE®
The Counselors of Real Estate® is an organization of commercial property experts worldwide who provide seasoned, objective advice on real property and land-related matters. Only 1,100 professionals from all disciplines of real estate, academia, and government hold the CRE credential. Membership is selective and extended by invitation, although commercial real estate practitioners with 10 years of proven experience may apply.
Presented by The Counselors of Real Estate ®
Contact CRE® at 312-329-8427 or info@cre.org.
General Accredited Appraiser / GAA
For general appraisers, this designation is awarded to those whose education and experience exceed state appraisal certification requirements and is supported by the National Association of REALTORS®
Presented by National Association of REALTORS ®
Contact GAA program staff at 800-874-6500 ext. 8268 or email appraisal@realtors.org.
NAR’s Green Designation / GREEN
Through NAR’s Green Designation, the Green REsource Council provides ongoing education, resources and tools to help real estate practitioners find, understand, and market properties with green features.
Presented by The Green REsource Council
Contact The Green REsource Council at greendesignation@realtors.org or 800-498-9422.
Graduate, REALTOR® Institute / GRI
REALTORS® with the GRI designation have in-depth training in legal and regulatory issues, technology, professional standards, and the sales process. Earning the designation is a way to stand out to prospective buyers and sellers as a professional with expertise in these areas.
Presented by National Association of REALTORS ®
Contact your State Association to get information on program requirements, course schedules, location, and tuition.
Performance Management Network / PMN
This designation is unique to the REALTOR ® family designations, emphasizing that in order to enhance your business, you must enhance yourself. It focuses on negotiating strategies and tactics, networking and referrals, business planning and systems, personal performance management and leadership development.
Presented by Women’s Council of REALTORS ®
Contact the Women’s Council of REALTORS® at 800-245-8512.
REALTOR® Association Certified Executive / RCE
RCE is the only professional designation designed specifically for REALTOR ® association executives. RCE designees exemplify goal-oriented AEs with drive, experience and commitment to professional growth.
Presented by National Association of REALTORS ®
Contact Renee Holland at 312-329-8545 or rholland@realtors.org.
Residential Accredited Appraiser / RAA
For residential appraisers, this designation is awarded to those whose education and experience exceed state appraisal certification requirements and is supported by the National Association of REALTORS®
Presented by National Association of REALTORS ®
Contact RAA program staff at 312-329-8268 or email appraisal@realtors.org.
Seller Representative Specialist / SRS
The Seller Representative Specialist (SRS) designation is the premier credential in seller representation. It is designed to elevate professional standards and enhance personal performance. The designation is awarded to real estate professionals who demonstrate the knowledge and skills essential for seller advocacy. SRS designees represent a global community of REALTORS® who use their advanced training and expertise to go above and beyond their client’s expectations.
Visit www.REBInstitute.com or contact the Real Estate Business Institute (REBI) at info@rebinstitute.com or 800-621-8738.
Society of Industrial and Office REALTORS® / SIOR
The SIOR designation is held by only the most knowledgeable, experienced, and successful commercial real estate brokerage specialists. To earn it, designees must meet standards of experience, production, education, ethics, and provide recommendations.
Presented by Society of Industrial and Office REALTORS ®
Contact SIOR at 202-449-8200.
Seniors Real Estate Specialist® / SRES®
The SRES® Designation program educates REALTORS® on how to profitably and ethically serve the real estate needs of the fastest growing market in real estate, clients age 50+. By earning the SRES® designation, you gain access to valuable member benefits, useful resources, and networking opportunities across the U.S. and Canada to help you in your business.
Presented by SRES ® Council
Contact SRES Council at sres@realtors.org or 800-500-4564.
NAR Family Certifications
At Home With Diversity / AHWD
Learn to work effectively with—and within—today’s diverse real estate market. The At Home With Diversity certification teaches you how to conduct your business with sensitivity to all client profiles and build a business plan to successfully serve them.
Presented by the National Association of REALTORS ®
For more information on this course and its business principles, please contact us at ahwd@realtors.org or 800-874-6500 ext. 8393.
Broker Price Opinion Resource / BPOR
The BPOR certification is no longer being awarded to members. Approximately 6,000 members have earned BPOR.
Certified Real Estate Team Specialist / C-RETS
The Certified Real Estate Team Specialist (C-RETS) certification is designed to improve team development, individual leadership skills, and financial performance. C-RETS courses provide the tools, strategies, and knowledge that are required of today’s real estate professionals who are either considering or currently operating in a team environment. It is for team leaders, team members, those looking to start a team, and those who simply want to sharpen their management skills.
Visit www.REBInstitute.com or contact the Real Estate Business Institute (REBI) at info@REBInstitute.com or 800-621-8738.
Digital Marketing: Social Media
The RRC Digital Marketing: Social Media certification is for real estate professionals who want to develop expertise with social media resources and the sites that are an essential part of today’s digital marketing mix, whether you are promoting your business or the properties you represent.
Presented by Residential Real Estate Council
Contact RRC at https://www.crs.com/about-us/contact-us or 800-462-8841.
e-PRO®
NAR’s e-PRO ® certification program helps REALTORS® master the advanced digital marketing techniques of today. With the e-PRO ® certification, REALTORS® increase their ability to reach customers, expand their capabilities, and build trust by safeguarding client information.
Presented by the National Association of REALTORS ® Contact e-PRO ® at epro@realtors.org or 877-397-3132.
Military Relocation Professional / MRP
NAR’s Military Relocation Professional certification focuses on educating real estate professionals about working with current and former military service members to find housing solutions that best suit their needs and take full advantage of military benefits and support.
Presented by REBAC (Real Estate Buyer’s Agent Council)
Contact us at MRP@realtors.org or 888-648-8321.
Pricing Strategy Advisor / PSA
Presented by the National Association of REALTORS ® Contact us at https://pricingstrategyadvisor.org.
Real Estate Negotiation Expert / RENE
The first and only negotiation credential recognized by the National Association of REALTORS®, the Real Estate Negotiation Expert (RENE) certification is designed to elevate and enhance negotiating skills so that today’s real estate professionals can play the game to win.
Presented by the Real Estate Business Institute
Visit www.REBInstitute.com or contact the Real Estate Business Institute (REBI) at info@rebinstitute.com or 800-621-8738.
Residential Listing
The RRC Residential Listing Specialist Certification program helps REALTORS® master the art of listing residential properties. The courses provide strategies, tools, and more to help agents enhance and differentiate their listings.
Presented by Residential Real Estate Council
Contact RRC at https://www.crs.com/about-us/contact-us or 800-462-8841.
Resort & Second-Home Property Specialist / RSPS
This certification is designed for REALTORS® who facilitate the buying, selling, or management of properties for investment, development, retirement, or second homes in a resort, recreational and/or vacation destination are involved in this market niche.
Presented by the National Association of REALTORS ®
Contact us at resort@realtors.org or 800-874-6500 ext. 8320.
® Short Sales & Foreclosure Resource® / SFR®
The SFR ® certification teaches real estate professionals to work with distressed sellers and the finance, tax, and legal professionals who can help them, qualify sellers for short sales, develop a short sale package, negotiate with lenders, safeguard your commission, limit risk, and protect buyers.
Presented by the National Association of REALTORS ®
Contact us at sfr@realtors.org or 877-510-7855.
Smart Home
The Smart Home certification is for real estate professionals who want to develop expertise in the technology, privacy issues, and best transition tactics involved in selling smart homes.
Presented by Residential Real Estate Council
Contact RRC at https://www.crs.com/about-us/contact-us or 800-462-8841. ■
A Certification Program for Property Management
As housing prices increase, the number of renters in Maryland also increases. Studies show that more than one-third of Marylanders rent their homes. With an increased number of rental properties comes an increased demand for skilled professionals to manage rental properties.
Maryland REALTORS® is thrilled to launch the Maryland Residential Property Management Certification (MRPMC).
MRPMC is a certification available to Maryland REALTORS® members, designed to educate practitioners on the common issues surrounding property management. Many licensees venture into the field of property management without the foundational knowledge required to be successful. Licensees should stay informed in order to stay out of trouble. In fact, a high percentage of complaints filed with the Maryland Real Estate Commission involve some area of property management.
Obtaining your MRPMC certification will enhance your understanding of the legal and practical issues you may face as a property manager while offering effective strategies for managing any risks. MRPMC certification training covers the following topics: addressing common issues faced by property managers, forming a property management company (outside of a brokerage), understanding the lease and related documents, and analyzing fair housing issues specific to property management.
Develop your knowledge and expertise to serve this important and growing industry by taking steps to become a MRPMC.
How to Earn your MRPMC
Completing each of the following FOUR courses (6 hours total) which are offered at the Annual Conference and the Commercial Symposium.
■ Building Your Property Management Business –1.5 hours of CE pending approval
■ Property Management 101: The Basics –1.5 hours of CE, DLLR Category F
■ Legally Renting Maryland Properties –1.5 hours of CE, DLLR Category F
■ Fair Housing for Property Managers –1.5 hours of CE, DLLR Category C
There is No Exam and Better Yet— The Course is Free! Sign up today using this QR Code.
There may be some materials or facility costs associated with certain classes or locations. To receive the official certificate for the Maryland Residential Property Management Certification you will be required to email Lisa Haynes at lisa.haynes@mdrealtor.org after completion of the required classes. Upon receipt of your certificate, get excited because you can start to market yourself as an MRPMC and help the growing number of renters in the State of Maryland.
*The MRPMC program is not affiliated or endorsed by the National Association of REALTORS®. ■
Understanding the RPAC Process
BY KEVIN TURNER, CHAIRMAN, MARYLAND RPAC TRUSTEES, AND MARK FEINROTH, DIRECTOR OF POLITICAL ADVOCACY
In this brief moment between the Maryland primary and general elections, we hope Maryland REALTORS® will focus on the historic nature of our upcoming ballot choices. No matter which candidates celebrate victory in the coming weeks, Maryland voters are about to select a new Governor, new Attorney General,and a new Comptroller. All 188 members of the Maryland General Assembly are on the ballot as are scores of county and municipal officials. The 16 Trustees of the Maryland REALTORS® PAC worked for much of the last 18 months preparing for this moment to support candidates who believe in strengthening private property rights, expanding homeownership opportunities, and promoting business-friendly public policies. Our work began with an election subcommittee to assist the staff in drafting a written questionnaire template to use with candidates at the top of the ballot and for the General Assembly. As candidates for Governor, Comptroller, and Attorney General formally announced their campaigns, they were asked to complete the written questionnaire. Staff and the Trustees screened the questionnaire responses inviting the strongest candidates for interviews.
The Trustees planned to conduct all interviews in person, but some candidates met virtually because of scheduling conflicts. A layer of additional complexity was added to the scheduling of candidate interviews and the assessment of the candidates themselves when the Maryland Court of Appeals twice postponed the filing deadline for candidates and the Primary election date to review and revise the congressional and legislative redistricting maps. The Primary election took place three weeks later than planned.
In the campaign for Governor, the Trustees interviewed Dan Cox, Peter Franchot, Wes Moore, Tom Perez, and Kelly Schulz. In the Attorney General race, we met with Anthony Brown, Katherine Curran O’Malley, and James Shalleck. Tim Adams, Barry Glassman, and Brooke Lierman were interviewed for Comptroller. After the interviews were conducted, the Trustees voted to support Wes Moore for the Democratic Party nomination for Governor and Kelly Schulz for the Republican Party nomination for Governor. Anthony Brown was the choice of the Trustees for the Democratic nomination for Attorney General while Brooke Lierman and Barry Glassman each received support from the Trustees for the Comptroller’s position. Of course, Trustees also supported a great many candidates for the Maryland General Assembly. The incumbents running for reelection were evaluated on their support for Maryland REALTORS® legislative positions as well as their availability to meet with Maryland REALTORS® and staff and to consider our concerns regarding pending legislation. We also supported a few Maryland
REALTORS® members running for open seats in the legislature; the Maryland REALTORS® we supported were Jay Mason running for State Senate in Frederick County and Stuart Schmidt and Kim Mills running for the House of Delegates in Anne Arundel County.
Our local REALTOR® associations made decisions about support for candidates running for County elective offices such as County Executive, County Council, and County Commissioner. Some of those candidates received direct campaign contributions from Maryland RPAC, and some also received assistance in the form of independent expenditures funded by grants from the National Association of REALTORS®.
In the races for U.S. Congress, the National Association of REALTORS® received recommendations from the Maryland RPAC Trustees and decided to support the incumbents running for reelection, including Sen. Chris Van Hollen. Within days of Governor Hogan’s announcement that he would not challenge Van Hollen in the Senate race, Van Hollen asked for and received both direct campaign contributions from the National RPAC Trustees and an endorsement of his reelection from NAR. Maryland REALTORS® followed suit and also endorsed his reelection. In the days and weeks immediately prior to the July 19 primary election, the Maryland Trustees worked closely with Maryland REALTORS® Strategic Communications department to inform members of the real estate brokerage community of the candidates supported by RPAC. Several emails were sent to the entire membership with the full list of Federal and State candidates who received RPAC support.
and moved on to the General election. The exception was in the Republican primary for Governor. The Trustees supported Kelly Schulz. However, Dan Cox prevailed. He will be the Republican party’s nominee in the November election.
As the Maryland RPAC Trustees look ahead to the General election, we plan to consider whether to support individual candidates for Governor, Attorney General, and Comptroller. The Trustees will make their decision about whether one of the candidates will earn support for the General election. Trustees will also decide whether to recommend a candidate to Maryland REALTORS® for an endorsement.
The Maryland RPAC Trustees understand that they have an important responsibility to select candidates for support who reflect a shared interest in a healthy and vibrant real estate market. We recognize that members have many different views on political candidates and public policy issues, and our choices cannot possibly reflect all of the various points of view. We therefore hope that Maryland RPAC investors appreciate that the Trustees and staff exhaustively studied the candidates before recommending our support.
Turn to page 6 to review Maryland RPAC recommendations for the General Election. Feel free to contact us if you have any questions concerning the process. ■
With respect to the results of the Maryland primary election, nearly all the Maryland REALTORS® supported statewide candidates were successful
Learning to Lead Behind the Scenes of Leadership Academy
INTERVIEWED BY COLETTE MASSENGALE , ESQ.
Recently, Maryland REALTORS® met to discuss Leadership Academy with its Leadership Advisory Chair Veera Phillips, Leadership Academy graduate and President of the Baltimore chapter of the National Association of Real Estate Brokers (NAREB) Robin Spivey, and Leadership Academy graduate and President-Elect of the Howard County Association of REALTORS® (HCAR) Robbyn Harris. Want to learn more about what one can get from the Leadership Academy experience? Learn from these authoritative voices!
Maryland REALTORS® (MR): Leadership Academy is a leadership development program to help you fine-tune your leadership skills, so you are ready and able to serve at the local, state, and national association levels. The mission of the program is to build strong confident leaders who are committed to ensuring our industry is prepared for the challenges ahead. It prepares you to be a voice for real estate. It is also a personal development program that will benefit you in all aspects of your life. We will start with you Veera. As the Chair of Maryland REALTORS® 2022 Leadership Advisory Group, what motivated you to apply to Maryland REALTORS® Leadership Academy?
Veera Phillips (VP): I read a book and took the class called Six Personal Perspectives, and the first perspective is self-master. It taught that you can’t be a great leader until you learn how to master yourself. That takes a lifetime. As a REALTOR®, I wanted to create a bigger “why.” Why was I doing this? How could I support other REALTORS®? I applied several times before they had space for me.
MR: What motivated you to apply again?
That’s good to encourage folks to apply again if you don’t get in the first time.
VP: I applied early in my career. I was at an event with Carlton Jay who told me I should read Maryland REALTOR® magazine. That was the best advice I’ve received as a real estate agent. The magazine mentioned Leadership Academy. I said, “Well, why not me, right?” So, I applied, and they said, “Not this year.” And I said, “Well, maybe it’s just for other people.” I waited a few years and applied again. That time I was selected to attend, and I was overjoyed.
MR: That’s inspirational for folks who are applying. I love the advice you were given about reading the magazine so you can stay on top of the industry. Robin, please talk about your current leadership roles.
Robin Spivey (RS): I serve in two capacities. The first is as an affiliate member of HCAR. I’m an Account Executive with Residential Title & Escrow Company. My second leadership role is as President of the Real Estate Brokers of Baltimore, which is the local chapter of the NAREB. My role as President of the local chapter in Maryland provides me the opportunity to enlighten and educate consumers about the importance of democracy in housing. That’s what the National Association of Real Estate Brokers is all about—fighting for injustices and educating consumers.
What motivated me to apply was that I firmly believe there is so much to learn, and you should always be prepared to further your education. The Academy was a fantastic opportunity because it allowed me to strengthen my leadership skills and get to know my peers in the real estate market in Maryland. It also allowed me an opportunity to engage with Maryland REALTORS® Leadership. Whenever you can surround yourself with like-minded individuals, you are embarking on the path of leadership.
MR: Thank you, Robin. As the incoming president of HCAR, is this something that you were excited to do? How did you come to learn about the program?
Robbyn Harris (RH): I had an interesting journey. I learned about the program from former HCAR President Shirley Matlock who said it “would help you with leadership as you progress to the presidency.” We have a succession plan at HCAR.
At the time, I was Treasurer. I thought I needed encouragement from others to be comfortable talking about my passion. My goal was to improve my personal traits so I could help others along the way. The session at the Maryland General Assembly in Annapolis was impactful. Seeing all the history in Annapolis about legislation and learning about the path of people of our color before us with legislative roles paving the ways for new beginnings—learning about that was powerful.
MR: Veera, is there a session that stands out in your mind?
VP: In one session, we talked about implicit biases and discrimination. We were given a list of what people perceive as challenges like being overweight or having red hair, skin color, or being in a wheelchair. Everybody was asked to choose one so they could internalize what a person with a perceived challenge might have to endure.
MR: The session Veera is talking about is called Diversity in Business, and that is a powerful session. The presenter for that is Dr. Marie Amey-Taylor. She does a fabulous job of showing how embracing diversity is a win-win for the association. She gives you the tools for breaking down biases, embracing difference, and looking at difference as something positive and not something to fear.
RS: The session on communication was spectacular. It teaches you to think quickly before you’re speaking, depending on how questions are being posed. The other session I enjoyed was with Mark Levin. He gave a good perspective on expectations in terms of meetings. I think it is important to be able to agree amicably with others, whether it’s your Executive Board, or Board of Directors, knowing how to handle issues and sticking to the agenda.
Leadership Academy, Graduating Class of 2022
MR: Robbyn, what has been the biggest benefit of the program for you?
RH: In my personal and business life, it’s relationships. I have been able to make some good lasting relationships with people during the program that will carry on afterward. I’ve been able to relax. I came from a corporate world where I was always on. It was always business. Sessions allowed me to open up and let others see me. I pulled down the curtain and that’s been the most beneficial thing for me because it’s carrying on in other areas of my life.
VP: I have a mentor that tells us all the time, relationships will take you where money can’t. That was the biggest benefit of the academy. I met Pam Harrison, whose husband is John Harrison, former President of Maryland REALTORS®, so I got to know them. I was in class with Craig Wolf, 2022 President of Maryland REALTORS®. I’m still connected with them. In 2015, I became President of the Prince George’s County Association of REALTORS®. You can’t just learn for
learning’s sake. You need to take what you’ve learned and implement it.
RH: It impacts not only your professional life but your personal life as well. The relationships you develop in class, the journeys people in class take—you watch them become rising stars and feel that in some way you helped them, and they helped you.
MR: What were you all most surprised to learn about yourselves during the program?
RH: I learned I don’t have to be perfect. I learned forgiveness and acceptance of myself.
VP: I learned I can do the hard stuff. The hard stuff isn’t as hard as you ever thought it was going to be. I can’t even tell you in my life, how many times I have talked myself out of success. Academy helped me to stop listening to that self-talk.
continued on page 26
Deborah Dwyer Greater Baltimore Board of REALTORS®
Michael Funk Southern Maryland Association of REALTORS®
Janice Hariadi Anne Arundel County Association of REALTORS®
Arnita Greene Prince George’s County Association of REALTORS®
Robbyn Harris Howard County Association of REALTORS®
Aisha Holmes Southern Maryland Association of REALTORS®
Hanna Houck Frederick County Association of REALTORS®
Leadership Academy, Graduating Class of 2022
MR: What advice would you give the 2022/2023 applicants about how to be successful in this process so they can continue self-development?
VP: Self-master and the business will come. I heard a quote today that said, “Reputation is recognition.” As we develop as good leaders, our reputations will precede us. That’s going to automatically attract the type of business we want. Invest in yourself. This program is not necessarily about your business. This is about a leadership role that you can have in any aspect of your life. When you’re looking to lead, make sure you’re doing it from your heart, out of a giving place helping someone. Leadership Academy teaches you to think about other perspectives and not just your own when you’re making decisions.
RS: Remain true to yourself. Always be willing to listen and listen intently. Be there for others. Be selfless, have empathy, and everything else will just fall into place.
MR: Thank you. What are you doing to continue your growth and development as a leader?
VP: I’m focused on becoming an unbiased listener. That’s the leadership path that I’m taking.
RS: I think when something doesn’t go as planned, if you’re able to continue to lead in a manner that is reflective of the overall goal and mission of your organization, you’ll be able to persevere. Perseverance—that’s the most important thing.
RH: Don’t lead in a vacuum. Make sure everyone has a voice and can be heard and represented so you are serving the greater good. ■
Colette Massengale, Maryland REALTORS® Former Director of Professional Development & Member Engagement, now works for the National Association of REALTORS® as its Senior Policy Representative for Fair Housing.
Jessica Olevsky Greater Capital Area Association of REALTORS®
June Piper-Brandon Greater Capital Area Association of REALTORS®
Shelby Roney Mid Shore Board of REALTORS®
Paula Smith Harford County Association of REALTORS®
Robin Spivey Greater Baltimore Board of REALTORS®
Dale Terrill Greater Baltimore Board of REALTORS®
John Young Greater Capital Area Association of REALTORS®
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!
2, 3, 9, 11, 15, 17
1, 3, 15, 17
Are Demographics Destiny?
How Millennials and Boomers Are Shaping Maryland’s Housing Market
BY LISA STURTEVANT, PHD CHIEF ECONOMIST, BRIGHT MLS
The housing market is decidedly cooler this fall than it was a year ago. Buyers began pulling back during the spring as mortgage rates increased, raising the cost of purchasing a home. Persistently high inflation has forced other prospective buyers—particularly first-time buyers—to sit on the sidelines. High housing costs have left others out of the homeownership market altogether.
In 2022, through the end of July, there were nearly 53,000 home sales statewide across Maryland, down 13% compared to a year ago. Home prices, which had been growing at double-digit rates during the pandemic, are still up, but the pace
of year-over-year price growth has slowed. With fewer new contracts and homes lingering on the market longer, available inventory in most local markets is above where it was last year.
Amidst the cooling market conditions, there has been talk of a ’housing downturn’ or a ’housing recession’ or even a ’housing meltdown’. Should we be worried?
In some ways the panic over the current housing market is understandable. It was 15 years ago when we last had a frenzied market like the one we had during 2020 and 2021. This surge in market activity happened right before the Great Recession when home prices fell by more than 30%, inventories ballooned, and millions of homeowners found themselves underwater or in foreclosure.
But aside from similar rapid price growth, this housing market is 180 degrees different from where we were a decade and a half ago. And while there may be uncertainty in market conditions in the short term, the mid-term outlook for Maryland’s housing market is optimistic.
There is one word to explain the reason for an upbeat assessment
of the U.S. housing market over the rest of the decade.
Demographics.
Demographic fundamentals, driving strong demand and low supply, will characterize the housing market over the next seven to eight years. While we will not see the historically low mortgage rates or work-fromhome-fueled demand in the market like we had over the past couple of years, demographic fundamentals will sustain a stable housing market through the rest of the decade.
Millennials
Let’s start with the Millennials. There are more than 72 million Millennials in the U.S., defined as those between the ages of 26 and 41 in 2022. This is the nation’s largest demographic cohort in the population, larger even than their parents, the Baby Boomers. More than one out of five Maryland residents is a Millennial. But more important than the size of this group is the stage of life they are in—the ages when people typically form their own households, get married, have children, make career changes, and, yes, become homeowners.
When Millennials first reached young adulthood, there had been talk about how they might be different than past generations. They might be more footloose and less interested in traditional family goals. But it turns out Millennials are following the same general path as the Gen X’ers and Boomers before them, albeit at a slower pace because of the whammy of a recession they got hit with in 2008. They also may be doing things in a different order (e.g., having a child first and then getting married), but they are still reaching these lifestyle milestones. After plunging during the pandemic, the number of births in the U.S. rose in 2021, the first annual increase since 2014. Marriage rates continue to decline but more adults are living together without marriage, often become parents.
These life events tend to precipitate changes in living arrangements, generally, and a focus on homeownership, in particular. While
Millennials face obstacles to homeownership, including high student loan debt, rising home prices, and tight inventory, they are as interested in becoming homeowners as prior generations. Homeownership rates are currently lower than they were for prior generations at this age, which means there is significant untapped housing demand that will be in the market for the next seven to eight years.
Boomers
The size and life stage of Millennials means strong demand for homeownership. The other big demographic cohort—Baby Boomers— are in control of the supply side, and they are keeping inventory low.
At 70 million, the population of Baby Boomers is just slightly lower than that of Millennials. But as the youngest Boomers reach their 60s, the decisions they make about retirement and aging-in-place are
having an outsized impact on the inventory of homes for sale. Retirement often comes along with a change of residence. But Baby Boomers are working longer than prior generations. According to a recent Gallup survey, the average age of retirement in 2022 was 61, which dipped slightly during the pandemic, but is higher than it was during the 1990s. Among non-retirees, the Gallup poll found that people expected to work on average, until age 66 (up from an expectation of working until just age 57 in 1995).
People are working longer for lots of different reasons. For some, it’s the desire to stay physically and mentally engaged. Others may want to retire but, financially, are not able to. Remaining in the workforce longer means that Boomers are not downsizing as early as prior generations.
And there is further evidence that if and when Boomers do retire, they are going to want to remain in their homes as long as possible. Some value the connection to their current neighborhood. Others are hanging onto the family home to accommodate adult children who move back home. A lack of affordable, high-quality senior living options is also a barrier to moving. And, finally, during the pandemic, many homeowners—including Boomers who still have a mortgage—refinanced their home loan into a sub-three percent, 30-year mortgage, which means they likely plan on staying put for a long time.
The average length of time homeowners remain in their homes has been increasing steadily. Average homebuyer tenure was 13 years in 2021, according to the National Association of REALTORS® (up from 10 years in 2008). Boomers are driving that substantial increase.
Many Baby Boomers in Maryland are significantly “overhoused,” living in a home that some might call too big for them. This might include a married couple in a four-or-five-bedroom home or a single senior living in a house with three or more bedrooms. As Baby Boomers continue to stay put, they are keeping homes off the market that are in demand by Millennials starting families.
These patterns suggest that the inventory of existing homes available for sale will remain relatively low, at least for the remainder of the decade.
Doing the Demographic Math
Putting the demographic pieces together you have high demand coming from Millennials and low supply driven by the Boomers, which results in sustained
competition in the market and upward pressure on prices.
Could something take down these demographic dynamics? Sure, it’s possible, though unlikely, that a severe recession leading to dramatic job loss and a plunge in household formation could stymy demand. Millennials and their families might end up moving in with mom and dad who will have been glad they hung onto the house! While demographics do not hold the keys to our destiny, demographics remain a key variable at driving market conditions. ■
Dr. Lisa Sturtevant is Chief Economist at Bright MLS. She recently participated at the Maryland REALTORS® Annual Conference in Ocean City, MD.
Real Estate Competition and Antitrust Litigation
BY CHUCK KASKY
The U.S . model of local broker cooperation has long been viewed as the best value for consumers around the world.
Of the 1.5 million REALTORS® across the country, more than 1.3 million are small businesses focused on our local communities. The local economic impact of housing affects more than just real estate agents. Preparing a home for the market often involves photographers, cleaners, landscapers, decorators, and other locally-owned small businesses in the home services industry. These locally owned small businesses have a significant impact on real estate. In fact, every home sale generates roughly $88,000 in local economic activity. What’s more, for every two home sales, one American job is supported. Overall, real estate accounts for nearly 18% of the nation’s GDP.
When it comes to the offer prices for properties and closing costs, the real estate marketplace also makes the transaction more affordable. The commitment to cooperation— in which the listing broker pays the buyer broker—allows countless first-time homebuyers and low-and middle-income Americans the ability to afford both a down payment and professional representation. For many prospective buyers, saving for a down payment is
challenging. Most lenders do not allow real estate broker commissions to be financed. As a result, for every one percent of broker commission fees that first-time buyers might have to pay, the prices for their homes increases by an additional $2,000. Buyers, particularly first-time buyers, benefit from the advocacy and representation that licensees provide, particularly given the competition for properties and the complications of the home buying process.
As you know, this well-established marketplace is being threatened by numerous lawsuits. In March 2019, home seller Christopher Moehrl filed a class-action antitrust lawsuit asserting that NAR rules prohibit seller and buyer brokers from negotiating over the amount of commission that will be paid to the buyer broker and that such rules have inflated commissions.
Later that year, home seller plaintiffs Joshua Sitzer and Amy Winger filed a lawsuit alleging the sharing of commissions between listing and buyer brokers violates the Sherman Antitrust Act by inflating seller costs. Other plaintiffs joined the case.
On the buyer side, in Leeder v. The National Association of REALTORS®, plaintiffs filed a putative class action lawsuit against
NAR, two REALTOR® associations, and several corporate defendants. The purported class consists of home buyers who mischaracterize NAR’s rules by alleging that defendants promulgated and enforced anticompetitive rules that caused home buyers to pay inflated commissions for broker services they misrepresent are free to pay inflated prices for the homes they purchase, and to receive reduced quality broker services.
REALTOR® associations at all levels will continue to defend our business and will continue the commitment to act in the best interest of buyers and sellers across the country. Maryland REALTORS ® will also update policies to protect consumers and promote transparency and efficiency in the real estate marketplace. Find out more by scanning these QR codes. ■
Chuck Kasky is the CEO of Maryland REALTORS®. Real Estate Commission Facts
Competition in Real Estate
Is Your Association Member-Centric?
BY GREGG G. KANTAK, PRESIDENT, SOUTHERN MARYLAND ASSOCIATION OF REALTORS®
Trade associations support and protect the rights of their industry or trade, and the real estate industry is the largest of all trade industries in the United States. Present-day local REALTOR® associations have little resemblance to those of decades past and these associations will look very different in the decades ahead. As our industry evolves daily, so too must the local association model to meet the needs of its members and the industry.
Members are the industry, and they definitely are the Association. To truly focus on members› needs, associations must create a membercentric culture.
At the Southern Maryland Association of REALTORS® (SMAR), everything from strategy to day-today operations must drive a great member experience. This fosters new member growth and keeps members engaged year after year.
This year, SMAR adopted its three-year strategic plan. Organic discussions among the Strategic Planning Committee indicated that “member-centricity” would be SMAR’s strategic area of focus.
Historically, associations believed they were ‘customer-centric’ simply because their customers paid dues. Nevertheless, not all associations embraced a ‘member-centric business philosophy’.
In SMAR’s estimation, a membercentric association:
■ Gives members what they want and anticipates their needs
■ Provides value as its primary purpose
■ Views staff as member/ customer service agents
■ Ensures the best possible member experience
■ Operates with a budget driven by members’ needs
■ Targets all communication to its stakeholders
Each member of the SMAR Board could recount member feedback that enabled it to anticipate, meet,
and/or exceed the members’ expectations. Leadership and staff re-evaluated vendor contracts to reduce or eliminate costs, valuing members first. As a result, more education and certification classes will be offered and covered by annual dues.
Association staff ensured they were C2EX® and AHWD certified and encouraged others to follow suit. New member orientation has quickly become interactive and engaging, resulting in greater attendance and volunteerism.
SMAR initiated its Diversity, Equity, Inclusion commitment and evolved its annual REALTOR® Fair to focus on DEI education. Our
continued on page 34
IS
YOUR ASSOCIATION MEMBER-CENTRIC? continued from page 34
DEI Committee initiated additional National REALTOR® networks, including an LGBTQ+ Real Estate Alliance Chapter and the Southern Maryland Women’s Council of REALTORS®. Our Women’s Council onboarding was recorded as the largest for a chapter nationally in recent years. Most importantly, DEI has remained an important aspect of SMAR’s plan to service members.
Creating a great member experience starts with understanding your members. Asking your members a simple question is sometimes all it takes. What are the Association members’ needs and interests? What are their communication preferences? What would make things more convenient for them? As the answers become clear, so does the action plan.
The value proposition for dues can be both tangible and intangible. Tangible benefits may include timely industry news, forms, cost savings, resources, training, and education.
Intangible benefits include what the Association may create in terms of networking opportunities to build a member’s business.
On the tangible, what better way to serve the member than provide them with stronger benefits?
SMAR has begun offering members free local forms software via access to a sub-premium DotLoop account and ZipForms access. We are providing unlimited access for brokers, managers, and Board of Director members to a regional real estate attorney. We have rolled out an unlimited technology support hotline, providing diagnostics and advice on any hardware or basic software issue. SMAR provides access to all CE classes at no cost, and we will offer more designations annually. We now offer professional member headshots multiple times annually. All these member benefits are only enhanced by offerings from Maryland REALTORS®
Reinvesting in our members has become paramount. With a member-centric approach, the value proposition of dues becomes an easy answer to the members’ age-old question: “What do we get for all that money?”
There are many reasons why association members remain loyal over time. However, the common theme is fulfilling a member’s desire to advance their career on their path to professional development with valuable resources. This year, SMAR made a conscious effort to extend services, design programs, and craft amenities that our members want. To maintain this trend, the Association needs to continue asking the question: “If our Association is being forced to do things differently, and if the wants and needs of our members have shifted, how can we engineer the ideal new experience?”
Being member-centric is unapologetically what will enable Associations to prepare for our industry’s evolution. The path to member-centricity is as easy as knowing your members, considering their journey, and offering services that create work efficiency and further their career development. ■
Gregg G. Kantak is the 2022 president of the Southern Maryland Association of REALTORS®. and the National Association of REALTORS® (NAR).
SMAR President Gregg Kantak attending an active meeting of the Southern Maryland Women’s Council of REALTORS®.
Looking at Maryland SmartBuy 3.0
Over the past few months the Maryland Mortgage Program has been developing new products and enhancing existing products to offer flexible and affordable financing options.
Governor Larry Hogan announced the latest change to Maryland SmartBuy in a press release.
Maryland SmartBuy 3.0 gives homebuyers an opportunity to purchase any home in Maryland that meets Maryland Mortgage Program guidelines while paying off student debt. The Maryland Department of Housing and Community Development (DHCD) has expanded the state’s landmark SmartBuy initiative to address rising housing market prices. To help manage purchase costs, homebuyers can now eliminate up to $50,000 in student loan debt—up from $30,000. The program has
also added an additional down payment and closing cost loan option for lower income borrowers. This loan now provides three different down payment assistance (DPA) options and an increase in the payoff cap to $50,000 reflecting the higher purchase prices in today’s housing market.
There are three choices for DPA:
1. a DPA loan equal $6,000,
2. a DPA loan equal to 4% of the first mortgage,
3. a DPA loan equal to 6% of the first mortgage; this choice is only available to borrowers earning 50% or less of AMI.
The Maryland Mortgage Program has been the state’s flagship homeownership program for over 40 years. During the Hogan administration, the Maryland Mortgage Program provided over $5.1 billion
in mortgages, $121.7 million in down payment assistance, and $25 million in student debt relief.
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.
Get to Know “Source of Income”
Q:I know that “source of income” became a protected class in the State of Maryland in 2020. I understand that a landlord cannot reject an applicant solely because of their source of income , or if it includes a housing voucher. I’ve seen Agent Remarks on the MLS, stating “no VA buyers” or “no FHA buyers.” Are these remarks permissible or could this be a fair housing violation?
A: Source of income was added as a protected class in Maryland in 2020. The bill, known as the Housing Opportunities Made Equal Act (the “HOME Act” or the “Act”), defines “Source of Income” as “any lawful source of money paid directly or indirectly to or on behalf of a renter or buyer of housing.” The Act provides additional guidance:
“Source of income” includes income from: (1) a lawful profession, occupation, or job; (2) any government or private assistance, grant, loan , or rental assistance program, including lowincome housing assistance certificates and vouchers; (3) a gift, an inheritance, a pension, an annuity, alimony, child support, or any other consideration or benefit; or (4) the sale or pledge of property or an interest in property.
Md. Code Ann., State Gov’t § 20-701 (West).
While many of us tend to think of source of income protections being applicable to tenants and prospective tenants, the definition of source of income clearly
and unambiguously includes both grants and loans, which are generally utilized by homebuyers rather than tenants.
Maryland law prohibits taking certain actions because of a person’s source of income.
Maryland law prohibits taking certain actions because of a person’s source of income. With respect to a sales transaction, the prohibited actions include: (1) refusing to sell after the making of a bona fide offer; (2) refusing to negotiate for the sale of a dwelling; (3) making a dwelling otherwise unavailable; (4) discriminating in the terms, conditions, or privileges of sale of a dwelling; and (5) making, printing, or publishing, any notice, statement, or advertisement with respect to the sale of a dwelling that indicates any preference, limitation, or discrimination based on source of income; and (4) representing to any person that any dwelling is not available
for inspection or sale, when the dwelling is available.
While we are not aware of any litigation directly addressing this issue, it would be prudent to exercise caution. The statute makes it clear that refusing to sell or negotiate because of the buyer’s source of income, including a grant or loan, could constitute discrimination. Moreover, if a seller or listing agent is screening out all potential FHA or VA buyers, it is likely that such action could give rise to a disparate-impact claim. A fair housing violation may exist based upon practices that have a disproportionately adverse effect on minorities and are otherwise unjustified by legitimate rationale.
Any listing agent or brokerage that advises a seller not to accept VA or FHA offers would likely be in violation of the HOME Act. If you are listing a condominium in a development that is not on the FHA-Approved Condominium list, you may include that fact in the remarks section of the listing. The statement should be limited to the fact that the condominium is not approved, rather than stating that certain buyers are excluded. ■
Kathleen Dartez, Esq. , is the Director of Legal Affairs for Maryland REALTORS®’.
Yes, our technology does
make a
difference.
The best technology makes for the best agents. The Weichert® technology offering is designed to maximize engagement, generate leads, and increase productivity. Imagine a beautifully designed, customized website backed by a powerful CRM, AI-driven automated follow-ups, and an easy-to-use technology package so advanced that it can run your entire business. Weichert makes it all happen, and more. It’s real, robust and ready-to-go technology that helps agents succeed like never before. The best technology really makes a big difference. Learn more. Give your local Weichert office a call today or visit jobs.Weichert.com
Media Sync to
Media Sync
Only available through Bright MLS
The game-changing photo solution that lets you get all your listing photos & virtual tours online in seconds.
The Bright MLS Media Sync integration with HomeVisit is a fabulous new tool that has saved us time and increased our productivity. What was once a 30-minute (or longer) process to upload, arrange, and caption 100+ images for one listing in Bright MLS, now takes less than a minute to sync high-res images, in the correct order, with captions.
This is truly a game changer for our Home Marketing team!
