Salt Lake
REALTOR Magazine October 2019
95 State at City Creek p. 8
Lawyers Win, Consumers Lose p. 12 Losing a Listing p. 18
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Racing for RPAC
Table of Contents p. 10 Features 10
Racing for RPAC
12
Lawsuits Against NAR are Wrong on the Facts, Wrong on the Economics, and Wrong on the Law Katie Johnson
18
What to Do Next After Losing a Listing Ian Grace
20
Aging at Home: Where Seniors Really Want to Live Barbara Ballinger
30
Be Careful What You Say Holly Rawson
Columns 7
Why Do We Do What We Do? Scott Robbins – President’s Message
Departments 8
Happenings
8
In the News
26
Housing Watch
28
Realtor® Connections
28
On the Move
On the Cover: Cover: Skidmore, Owings & Merrill Photo left: Dave Anderton
This Magazine is Self-Supporting Salt Lake Realtor® Magazine is self-supporting. The advertisers in this magazine pay for all production and distribution costs. Help support this magazine by advertising. For advertising rates, please contact Mills Publishing at 801.467.9419. The paper used in Salt Lake Realtor® Magazine comes from trees in managed timberlands. These trees are planted and grown specifically to make paper and do not come from parks or wilderness areas. In addition, a portion of this magazine is printed from recycled paper.
Salt Lake
REALTOR slrealtors.com
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Maga zine
October 2019 volume 79 number 10
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The Salt Lake REALTOR® (ISSN 2153 2141) is published monthly by Mills Publishing, located at 772 E. 3300 South, Suite 200 Salt Lake City, Utah 84106. Periodicals Postage Paid at Salt Lake City, UT. POSTMASTER: Send address changes to: The Salt Lake REALTOR,® 772 E. 3300 South, Suite 200 Salt Lake City, Utah 84106-4618.
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Salt Lake
REALTOR
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President Scott Robbins Summit Sotheby’s
Michael Morgan Realtypath LLC
Why Do We Do What We Do?
Scott Colemere Colemere Realty Associates
First Vice President Alicia Holdaway Summit Sotheby’s
Jodie Osofsky Signature Real Estate Utah Mary Olsen Utah Key Real Estate
Second Vice President Matt Ulrich Ulrich Realtors®, Inc.
Sophie Reece Berkshire Hathaway
Treasurer Steve Perry Wise Choice Real Estate
Rob Ockey Century 21 Everest Dawn Stevens RealtyOne Group Signature
Past President Adam Kirkham Summit Sotheby’s
Brian Gottfredson Coldwell Banker
CEO Curtis Bullock
Tony Ketterling Equity Real Estate
Directors
Ryan Henderson Realtypath LLC
Michael Rowe Berkshire Hathaway Advertising information may be obtained by calling (801) 467-9419 or by visiting www.millspub.com
Managing Editor Dave Anderton Publisher Mills Publishing, Inc. www.millspub.com President Dan Miller Art Director Jackie Medina Graphic Design Ken Magleby Katie Steckler Patrick Witmer
Sales Staff Paula Bell Paul Nicholas Chad Saunders
Office Administrator Cynthia Bell Snow
Administrative Assistant Caleb Deane
Salt Lake Board: (801) 542-8840 e-mail: dave@saltlakeboard.com Web Site: www.slrealtors.com
W
hy are we Realtors®? Is it because we love working on the weekends and late nights? Or is it because we love being on call 24-7?
No! We do this because we love helping our clients buy or sell their dream homes, help them create wealth through real estate, and help them in times of need like death and divorce. Being a Realtor® is so much more than helping people buy or sell homes. It is about being a therapist, negotiator, miracle worker, mover, and interior designer all wrapped into one. People think our profession is easy and we all know it isn’t. I want to share a recent review I received with you. This is from one of my clients who recently moved out of state. “Scott’s research of the market and his instincts enabled him to create a strategy that worked. His knowledge of the entire spectrum of buying and selling property helped us coordinate all of the many activities surrounding both real estate transactions and moving coordination. There were four separate families from Utah,Texas and Florida that were impacted by all of these events. Scott not only represented us but served as a mentor and teacher to other Realtors®, lenders, and families. Scott is the consummate professional.” THIS IS WHY WE DO IT. Each of you have the power to have a huge impact in your clients lives. Each one of you have stories like this that needs to be shared. We need to be a better voice for each other. It isn’t bragging, it is about being confident in your ability to be in this profession. So I say to you, share your accomplishments with everyone. Get the word out on what we do! Don’t let others try and discredit you or this great profession. Keep being the consummate professional. Keep being a Realtor®!
Scott Robbins President
The Salt Lake Board of REALTORS® is pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the nation. We encourage and support the affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin. The Salt Lake REALTOR® is the monthly magazine of the Salt Lake Board of REALTORS®. Opinions expressed by writers and persons quoted in articles are their own and do not necessarily reflect positions of the Salt Lake Board of REALTORS®. Permission will be granted in most cases, upon written request, to reprint or reproduce articles and photographs in this issue, provided proper credit is given to The Salt Lake REALTOR®, as well as to any writers and photographers whose names appear with the articles and photographs. While unsolicited original manuscripts and photographs related to the real estate profession are welcome, no payment is made for their use in the publication. Views and opinions expressed in the editorial and advertising content of the The Salt Lake REALTOR® are not necessarily endorsed by the Salt Lake Board of REALTORS®. However, advertisers do make publication of this magazine possible, so consideration of products and services listed is greatly appreciated.
OFFICIAL PUBLICATION OF THE SALT LAKE BOARD OF REALTORS ® REALTOR® is a registered mark which identifies a professional in real estate who subscribes to a strict Code of Ethics as a member of the NATIONAL ASSOCIATION OF REALTORS®. October 2005
October 2019 | Salt Lake Realtor ® | 7
Happenings
In the News FHA Condo Rule Assessment
Utah is No. 4 in Rising Personal Income Growth Personal incomes in Utah increased at the fourth highest rate of all states, according to a new report by the Bureau of Economic Analysis. From the first quarter to the second quarter, personal incomes in Utah climbed 6.9 percent. Increases in earnings, property income (dividends, interest, and rent), and transfer receipts contributed to personal income growth nationally and in most states. Nationally, incomes were up 5.4 percent during the same period. Texas saw the highest percent increases in income, while North Dakota’s incomes were flat.
Salt Lake City’s Changing Skyline Downtown Salt Lake City is undergoing many changes as more people and businesses make the move to Utah. The SL Board’s Young Professionals Network (YPN) in September hosted a panel of experts to discuss the changes and hosted a downtown development walking tour. Changes include: new high rises, residential developments, art installations and relocating businesses. Construction of a 25-story high rise is underway on the northeast corner of 100 South and State Street in downtown Salt Lake City. The building, “95 State at City Creek,” will include 540,000 rentable square feet and be completed in the fall of 2021. In addition, the 27-story Convention Center Hotel at 200 South West Temple will feature 700 rooms and 62,000 square feet of meeting space. Salt Lake County officials are working with Atlanta-based Portman Holdings (portmanholdings.com) to design and develop the hotel in partnership with St. George-based development firm DDRM.
8 | Salt Lake Realtor ® | October 2019
On August 14, the U.S. Department of Housing and Urban Development (HUD) released the long-awaited final rule on project approval for single-family condominiums insured by the Federal Housing Administration (FHA). For many years, NAR urged HUD to finalize changes to the previous rule that would ease restrictions on FHA financing for condominiums, thus enabling more first-time buyers, older adults, and low to moderateincome families to achieve the dream of homeownership. Following the aftermath of the Great Recession, HUD suspended the ability of FHA borrowers to obtain financing for a condominium purchase in a non-FHA approved property, what was often referred to as “spot loans.” This greatly reduced the available supply of condominiums to FHA borrowers. Under the new rule, FHA borrowers can obtain Single Unit Approval (SUA) on non-FHA approved condominium properties that meet the following requirements: at least five units; a limited concentration of FHA-insured units; at least 50 percent owner-occupancy; and a maximum of 35 percent commercial space. The return of SUA will increase existing supply and offer many more affordable home ownership opportunities for FHA borrowers. Currently, a single investor in an FHA approved property can own up to 10 percent of individual units in condominium properties with more than 20 units. For properties with less than 20 units, a single investor may own no more than one unit. For single unit approval, a single investor may own no more than 10 percent of the units in properties with 20 or more units, and no more than one unit in a property with less than 20 units.
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Racing for RPAC
M
embers of the Salt Lake Board of Realtors® raced for RPAC in September at the Utah Motorsports Campus. The Board consistently ranks among the highest in RPAC investments nationwide. The event introduced members to the RPAC Major Investors program. RPAC’s Major Investors are an elite and passionate group of Realtors® whose investments shape the political future of the real estate industry. Major Investors are eligible to participate in the RPAC Recognition Program, with specific benefits and accolades that acknowledge their support of RPAC. RPAC is one of the most bipartisan PACs in the country, giving to both Democrats and Republicans alike. The only stipulation is that the candidate be a member of the Realtor Party® – members of Congress and candidates who support Realtor®-friendly issues.
Photos: Dave Anderton
10 | Salt Lake Realtor ® | October 2019
October 2019 | Salt Lake Realtor ® | 11
alfexe©/ Adobe Stock
Lawsuits Against NAR are Wrong on the Facts, Wrong on the Economics, and Wrong on the Law Do a group of class action attorneys who are advertising for plaintiffs really have the best interests of consumers in mind? By Katie Johnson
A
t the heart of a lawsuit that has been filed against the National Association of Realtors® and others is the question: Who really has the best interests of consumers in mind? A group of class action attorneys who are advertising for plaintiffs? Or the Realtors® embedded in neighborhoods around the country, whose work is to help people navigate what for many is the single most complex and significant purchase (or sale) they’ll ever make? This is not even a close call, and NAR intends to keep making that clear in the courts and the court of public opinion. Since Moehrl v. NAR was filed in March in federal court in the Northern District of Illinois, there’s been a lot of speculation about what the lawsuit may mean for the industry. NAR takes this issue very seriously, so rather than feed wild rumors or “what ifs,” NAR has been focusing on
12 | Salt Lake Realtor ® | October 2019
the facts and mounting a forceful defense. As is common in these cases, copycat lawsuits have been filed and additional plaintiffs have been added. The plaintiffs are questioning whether the MLS system is competitive and why the seller pays the buyer broker commission; what value the buyer broker brings; and whether buyer brokers do or should make decisions to show homes based on the amount of the listing offer of commission. On each of these questions, NAR has been aggressively countering the class action attorneys’ misleading and misinformed characterizations and telling the story of Realtors® on our terms through the media, in meetings, and in the courts. We are letting people know that Realtors® and the multiple listing service system promote a proconsumer, procompetitive market for home buyers and home sellers, contrary to the baseless
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claims of these class action attorneys. We are making sure people know that: Realtors® are champions of homeownership, property rights, and the communities they serve. Every Realtor® adheres to a strict code of ethics based on professionalism, consumer protection, and the golden rule. Realtors® draw on their unmatched knowledge to help buyers and sellers navigate one of the most complicated financial transactions of their lives. And Realtors® are engaged neighbors committed to building and enhancing the communities they serve. The MLS system and the way commissions are paid create competitive, efficient markets that benefit home buyers, sellers, and small business. The MLS system creates a highly efficient residential real estate market that fosters cooperation between brokers to the benefit of consumers. Commission structures (including how the listing broker pays the buyer broker) ensure greater access for a large community of home buyers who might otherwise be priced out of the market, which also would limit options for sellers. Local, expert brokers play a crucial role in helping buyers and sellers achieve their goals. Given the volume of information buyers have to navigate and the complexity of this transaction, buyer brokers serve many essential, highly informed roles ranging from scheduling home tours and inspections to coordinating with lenders and appraisers to coordinating attorney reviews and closing documents. Consumers agree: 78 percent of home buyers say their broker was an important information source, and almost 90 percent would recommend their broker to a family member or friend. These lawsuits are wrong on the facts, wrong on the economics, and wrong on the law. Commissions are negotiable and, in fact, can be negotiated at any point during the transaction. The MLS and associated brokerage system create highly competitive markets with increased transaction volume and superior customer service. Consumers have many choices of different service and fee models among many brokers. Over 100 years, the courts have repeatedly validated this procompetitive, proconsumer MLS system, recognizing it increases the efficiency of the market and thus serves the best interests of sellers and buyers alike. We are letting people know that Realtors® and the multiple listing service system promote a proconsumer, procompetitive market for home buyers and sellers. Given that these lawsuits are without merit, in
14 | Salt Lake Realtor ® | October 2019
May NAR filed a motion to dismiss Moehrl v. NAR, demonstrating the plaintiff’s case was not legally viable. In response, the class action attorneys filed an amended complaint in June. They also joined forces with a copycat suit filed in the same jurisdiction. NAR filed a motion to dismiss the consolidated Moehrl v. NAR complaint and the other copycat lawsuit, Sitzer v. NAR, in August. Barring that happening, NAR will file a motion to dismiss the Sitzer complaint in August. The lawsuits also name four national real estate companies: Realogy Holdings Corp., HomeServices of America, RE/MAX Holdings Inc., and Keller Williams Realty Inc. Collectively known as the corporate defendants, these companies will file additional motions to dismiss the lawsuits concurrently with NAR. If NAR’s motion to dismiss is denied, the litigation can be expected to be a long process that extends over many years. NAR is confident in our position that these lawsuits are baseless, but we are prepared to mount a vigorous legal defense should the courts allow them to proceed. While it’s impossible to know the true motivation behind these lawsuits, one thing is certain: The consumers the class action attorneys purport to be defending would stand to lose the most. As you know all too well, the MLS system and the associated cooperation between seller and buyer brokers enable an efficient and competitive system that offers the most options for both buyers and sellers and makes home ownership possible when it otherwise wouldn’t be for many people. In keeping with Realtors®’ role as consumer advocates, NAR encourages members to transparently discuss these lawsuits with clients and other consumers who have questions. There may be long intervals between substantive developments in litigation, but we will continue to update members about the cases through local Realtor® associations, updates posted to nar. realtor, and Realtor® Magazine. Meanwhile, NAR will continue to aggressively defend the rights of the American home buyer and home seller to have access to a highly efficient homebuying system and to have listing and buying brokers serve as critical stewards of the real estate transaction. Direct your questions about the lawsuits to narpubs@Realtors®.org. Katie Johnson is General Counsel and Chief Member Experience Officer for the National Association of Realtors®. Reprinted from Realtor® Magazine Online, September 2019, with permission of the National Association of Realtors®. Copyright 2019.
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What to Do Next After Losing a Listing When a seller decides to no longer list with you, is there a point in ever seeing them again? By Ian Grace
W
hen you lose a listing, do you ever see the seller again? Many real estate professionals quickly move on after the business is lost, forgetting all about the former client they tried to help. Do you know what that tells the seller? You never really cared about him or her to begin with. And that’s not how you want to be remembered.
18 | Salt Lake Realtor ® | October 2019
Even when sellers choose to stop working with you, they deserve to be treated as though they’re still your customer. Keep building a relationship with them anyway — because very few agents do in these circumstances. You’ll be remembered as the agent who wasn’t just trying to score a commission.
I knew an agent who, whenever he lost a listing, would follow up after the property was sold to congratulate the sellers and find out where they were moving. He would let his ex-clients know that although he would have loved to help with their sale, he was pleased they achieved a good result. Then he would give them a “welcome package” for their next home, containing phone numbers for local utility companies and emergency centers, as well as a voucher for pizzas on their moving night so they wouldn’t have to worry about cooking. This agent was never angry over losing a listing, and he would maintain contact with his former clients, sending them information about housing statistics in the neighborhood they moved to, as well as local events he thought they might be interested in. You know what happened? Eventually, the clients — who would one day be selling again — forgot that he wasn’t the agent who ended up selling their last home. Because of his regular contact with them, he became their go-to agent anyway.
Obviously, this agent was practicing great customer service with his existing customers as well, and he commanded about 60 percent of his market share. How powerful is that? Doing something this simple can reap long-term rewards. Put great customer service into action for all your clients — even those who choose to amicably part ways with you — and you can make a strong name for yourself. Agents lose listings every day, and I can guarantee you a small percentage ever follow up with the sellers afterward. You can capitalize on being different in this way. Australian-born Ian Grace, one of the world’s leading authorities on real estate advertising, is the director of IGM Global and head of Ian Grace Business Training. For 16 years, he worked in and researched advertising and customer service in England, South Africa, and the United States. Reprinted from Realtor® Magazine Online, February 2017, with permission of the National Association of Realtors®. Copyright 2017. All rights reserved.
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October 2019 | Salt Lake Realtor ® | 19
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Aging at Home: Where Seniors Really Want to Live Statistics show that older homeowners want to stay in their houses rather than relocate to senior living communities. Show them how they can adapt a house to make it comfortable for the long term without a major remodel. By Barbara Ballinger
D
espite the allure of senior communities that offer a surfeit of amenities, such as pools, gyms, coffee bars, and cooking classes, most older adults—76 percent of Americans age 50 and older—want to remain in a home throughout their golden years, according to an AARP survey.
niche in real estate and ancillary industries. Agents and brokers who are Senior Real Estate Specialists (SRES) or Certified Aging-in-Place Specialists (CAPS) can help this cohort find homes or stay put and modify their homes to address physical or cognitive impairments.
Often, when older adults do move, it’s for reasons other than the desire to live in a 55plus community, such as high real estate taxes, ongoing maintenance tasks and costs, the absence of an accessible first-floor bedroom and bathroom, or a neighborhood that makes them too dependent on cars to get around.
Architects, designers, and health care advisers schooled in accessible design are also offering services to this segment of homeowners. Even insurance companies have stepped up to the challenge. Chubb North America offers a personal risk service, in which an agent goes into a home and recommends resources that a homeowner can tap into to stay safe. And Aetna Medicare offers a “Resources for Living” program to help members and caregivers access and supplement
Helping clients who want to purchase or update a home where they can age in place is a growing
20 | Salt Lake Realtor ® | October 2019
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benefits through such services as meal deliveries or transportation to appointments. Although most homeowners accept help when a crisis occurs, such as a fall or stroke, most experts say anyone 55 years and older should plan their future living situation long before they have difficulty climbing stairs or stepping into a bathtub. It often doesn’t require an expensive remodel, addition, or redesign that makes a house look institutional. A new category of home auditors can help clients analyze which changes to make. Daniel Edwards, owner of the Handyman Connection in Hanover, Mass., is developing a program to train people to conduct an aging-in-place analysis by providing a checklist of options. There are now “living laboratory” homes that allow people to see possibilities first-hand. Rosemarie Rossetti’s Universal Design Living Laboratory in Columbus, Ohio, opened seven years ago to showcase what she needed to live independently after a bicycle accident that left her paralyzed. Also in Columbus, Lisa Cini, founder of Mosaic Design Studio, is transforming a home that will open later this year to demonstrate accessible features to the public. Four strategies offer the greatest promise and least cost for most aging-in-place homeowners and knowing these will help agents and brokers be the advisers their clients need. Design Modifications Better Living Design in Asheville, N.C., and architect Jeffrey DeMure, author of Livable Design, recommend four steps to improve existing homes: putting essential spaces on a main level, including a first-floor bedroom; creating a zerostep entry; ensuring good interior air circulation; and improving kitchens and bathrooms. When steps lead up to the front door, getting into and around a home can be a logistical nightmare for someone who’s wheelchair bound. Another challenge is interior hallways and doorways that are too narrow for wheelchair users or someone with a walker to pass through. Often these situations occur when an apartment building, condo building, or house was constructed before the Americans with Disabilities Act law was passed in 1990. That legislation dictates measurements for public buildings, such as requiring door openings to be at least 32 inches wide. While private homes don’t have to meet the same criteria, more builders and architects are following the same guidelines so their designs work for everyone. It’s known as universal design. When it comes to circumventing stairs, a basic aluminum ramp runs $3,000 to $6,000, while a
22 | Salt Lake Realtor ® | October 2019
nicer wood design could be double the price, said Edwards. An elevator would be more costly— from $15,000 up—and many homes don’t have the space to accommodate it, said architect Josh Zinder, of Joshua Zinder Architecture + Design in Princeton, N.J. Zinder transformed his father’s home after he had a stroke and worked on architect Michael Graves’ home after he became paralyzed from a spinal infection. He said rooms can also be switched around to avoid taking down walls or putting on additions. Zinder made a living room into a bedroom because it was more accessible to a bathroom, and then made the original bedroom into a den. Because falls can be devastating for elderly homeowners, Daejin Kim, an aging-in-place expert and assistant professor of interior design at Iowa State University, suggests horizontal rather than vertical storage so homeowners don’t have to use stepstools. Falls can also be avoided by removing area rugs, clutter, and electrical cords that stretch across a room. Switching out carpeting for hardwood, linoleum, or vinyl flooring is also an option, said Rossetti. As eyesight worsens, painting rooms lighter colors can help, said Jennifer Naughton, executive vice present and risk consulting officer at Chubb. Even lowering one countertop can improve the daily living of a homeowner who’s in a wheelchair, said Dak Kopec, an associate professor of healthcare interior design at the University of Nevada, Las Vegas. Kopec teaches students to design spaces that cater to an aging population. He also recommends modifying outdoor space, if possible, since quality time outside can help increase serotonin and lessen anxiety and depression. Home Products Besides making architectural and design changes, there are new products that can make almost every facet of life easier for older homeowners. A stair or chair lift provides a relatively easy, affordable way to get to a second or third floor in a multilevel home or apartment. Most run under $2,000. And although remodeling a bathroom can become expensive—$33,374 for a mid-range universal design space, according to the 2019 Cost vs. Value Report—switching out a tub that’s difficult to climb into for a curbless shower with a bench is affordable and helps “avoid an accident waiting to happen,” said Kopec. A heat lamp in a bathroom helps older adults cope with the common problem of feeling cold. “It’s an easy retrofit to remove a fan and rewire for the lamp,” said Edwards. He also likes to
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add touchless faucets that make turning water on and off easier for arthritic hands and fingers and replace doorknobs with easier-to-turn lever handles. Grab bars look less institutional when selected in a nylon coating or sharp black, red, or yellow color, said Zinder. While they’re becoming common in bathrooms, Kim also suggests them for kitchens and hallways for safe walks to a bathroom. Rossetti said good lighting is also important for performing tasks around the house and making nighttime bathroom visits safer. Many lights now come on automatically at dusk, so no programming is required. Because bending and reaching deep into a cabinet can become harder, items like ShelfGenie’s custom pull-out shelves retrofit base cabinets without a major remodel, said ShelfGenie CEO Andy Pittman. Smart Tools Now is a good time to be an aging adult. “They are the first [generation] to have readily accessible tools that enable them to make smart decisions,” said Cini, a senior living designer and author of The Future is Here: Senior Living ReImagined (2016, iUniverse) and BOOM: The Baby Boomers Guide to Leveraging Technology (2018, selfpublished). The latest technology, such as robots (examples include Roomba, robotic lawnmowers, and robotic security systems) and smart-home devices that are connected through a central hub, can help alleviate the challenges of aging, she said. The first step to make everything work is to have the highest-speed internet. When her soon-to-be-finished Henry C. Werner House opens in Columbus, homeowners will be able to tour and even stay overnight to test out her recommended designs and products. Examples include a robot that can prepare a gourmet meal, bathrooms with the latest heated wash-and-dry bidet toilet seats that can decrease infections and increase comfort, smart flooring, and furniture for aging in place. She hopes to duplicate the house in other markets. But fewer modifications may be needed in the future because schools like the University of Nevada and Boston Architectural College now teach students how to incorporate aging-in-place features when a home is designed and built. Bringing in Help When health worsens—whether physical or mental—and it becomes harder for a homeowner to perform activities of daily living, a helping hand may be essential to stay in a home. The good news is that there are many more resources available today for finding the right help on a
24 | Salt Lake Realtor ® | October 2019
part- or full-time basis when family members aren’t available or need backup. Many can be found through local nonprofit organizations, universities, or a person’s insurance company. Peter Ross, CEO and co-founder of Senior Helpers based in Towson, Md., started his firm in 2002 to provide personalized in-home care based on his own experience caring for his mother. “Too many take bathing, toileting, grooming, and being ambulatory for granted,” he said. “Our goal is to keep people out of the hospital and emergency room, but the challenge is finding the right caregivers to help.” Though the need is outpacing demand with the number of caregivers growing at a 14 percent annual rate, while the need is growing by 64 percent per year. His firm, which has offices in 43 states, starts by doing a home safety inspection, then finds the right caregiver for the homeowner’s needs. Laura N. Gitlin provides another type of resource through her Communities Aging in Place, Advancing Better Living for Elders program in Philadelphia. Her coordinated multidisciplinary teams help seniors manage low-cost house repairs and provide occupational therapy and nursing care. For now, it’s offered only in the Philadelphia area, but other cities may have comparable programs. Gitlin’s co-authored book, Tips for Aging at Home: Doing What Matters (Camino Books Inc., 2019), suggests smart-home technologies that monitor and help homeowners remain safe and healthy, such as toilets with built-in alerts to monitor blood glucose and protein levels. And several insurance companies are taking advantage of Papa Inc., a digital health company based in Miami that provides college-age “grandkids on demand” who have been vetted to assist older adults with transportation, house chores, technology lessons, meal services, and other needs. The program is also designed to counter the problem of loneliness, particularly among aging adults. Aetna Medicare’s partnership with Papa Inc. rolled out Oct. 1. “The goal is to help those who are frail and struggling to make their homes accessible,” said Dr. Robert Mirsky, Aetna’s chief medical officer. Humana Inc. has also partnered with Papa to provide help for qualifying members of its Medicare Advantage plans. Barbara Ballinger is a freelance writer and the author of several books on real estate, architecture, and remodeling, including The Kitchen Bible: Designing the Perfect Culinary Space (Images Publishing, 2014). Reprinted from Realtor® Magazine Online, October 2019, with permission of the National Association of Realtors®. Copyright 2019.
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AUGUST HOUSING WATCH Salt Lake County Home Sales Down in August and Slide 3 percent in First Eight Months of 2019 Home sales (all housing types) fell 1 percent in August in Salt Lake County, while sales in neighboring Davis County were up 12 percent. From Jan. 1 through Aug. 31, homes sales in Salt Lake County totaled 12,051 units sold, a nearly 3 percent decline or 338 fewer homes sold compared to the same eight-month period in 2018. In August, the median price of homes sold in Salt Lake County increased 8 percent to $344,850, up from a median price of $320,000 a year earlier. The median price in Davis County climbed to $336,000, up 6 percent compared to $317,500 in August 2018. Nationally, overall sales are up 2.6 percent from a year ago (5.35 million in August 2018), according to the National Association of Realtors®. Lawrence Yun, NAR’s chief economist, attributed the increase in sales to falling mortgage rates. “As expected, buyers are finding it hard to resist the current rates,” he said. “The desire to take advantage of these promising conditions is leading more buyers to the market.” According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 3.62 percent in August, down from 3.77 percent in July. The average commitment rate across all of 2018 was 4.54 percent. The U.S. median existing-home price for all housing types in August was $278,200, up 4.7 percent from August 2018 ($265,600). August’s price increase marks the 90th straight month of year-over-year gains. First-time buyers were responsible for 31 percent of sales in August, down from 32 percent in July and equal to the 31 percent recorded in August 2018. NAR’s 2018 Profile of Home Buyers and Sellers – released in late 20184– revealed that the annual share of first-time buyers was 33 percent. As the share of first-time buyers rose, individual investors or second-home buyers, who account for many cash sales, purchased 14 percent of homes in August 2019, up from 11 percent recorded in July and from 13 percent recorded in August a year ago. All-cash sales accounted for 19 percent of transactions in August, about equal to July’s percentage and moderately down from August 2018 (19 percent and 20 percent, respectively). Distressed sales – foreclosures and short sales – represented 2 percent of sales in August, unchanged from July, but down from 3 percent in August 2018. Compared to July, existing-home sales recorded in August rose in the Northeast, Midwest and South regions, but fell slightly in the West region. Compared to last year, August sales increased in each of the four major regions, with the greatest gain coming in the South. Median home prices rose from a year ago, except in the Northeast, with the Midwest showing the highest price increase. Salt Lake County “The desire to take advantage Home Sales Down in August and Slide 3percent in First Eight Months of 2019. of these promising conditions
is leading more buyers to the market.” - Lawrence Yun
26 | Salt Lake Realtor ® | October 2019
Salt Lake & Davis County HOME SALES
Salt Lake County DOWN 1% 1,769
Davis County UP 12%
1,750
496
AUGUST 2018
AUGUST 2019
AUGUST 2018
MEDIAN PRICE
$320,000
AUGUST 2018
AUGUST 2019
UP 6%
UP 8% $344,850
AUGUST 2019
$317,500
AUGUST 2018
UP 64% MEDIAN CDOM
555
$336,000
AUGUST 2019
UP 7% 23
14
AUGUST 2018
AUGUST 2019
14
15
AUGUST 2018
AUGUST 2019 October 2019 | Salt Lake Realtor ® | 27
REALTOR® Connections
On the Move
Windermere Gives to Katie Elizabeth Rooms Windermere Real Estate Utah through the Windermere Foundation recently donated $1,000 to the Katie Elizabeth Rooms, a nonprofit organization that helps abused children. The organization renovates an abused child’s bedroom, to give him/her a place of renewed hope, love and healing. Pictured: Laurann Turner, left, Realtor® at Windermere Real Estate who helped facilitate the donation (left), Sherry Coker, with the Katie Elizabeth Rooms, and Grady Kohler, principal broker Windermere Real Estate Utah. For the past 30 years, the Windermere Foundation has donated a portion of the proceeds from every home purchased or sold using a Windermere agent towards supporting low-income and homeless families in our communities.
NAHREP Holds National Convention
The National Association of Real Estate Professionals recently held its national convention in San Diego, Calif. The convention is NAHREP’s highlight event of the year where top producing real estate professionals, industry experts and corporate executives convene for four days of education, networking and entertainment. This year’s event was the largest ever, attracting 10,000 professionals across a variety of industries with expertise in real estate, technology, education and the arts. Pictured: Marita Viselli, left, Inspiro Financial; Morelza Boratzuk, NAHREP Salt Lake Chapter 2020 president, Realtypath; Jerry Ascencio, past national NAHREP president; Gavin Krushensky, Salt Lake Board of Realtors®; Julie Krushensky, immediate past NAHREP Salt Lake Chapter president, First American Title; Kathy Moore, Keller Williams. 28 | Salt Lake Realtor ® | October 2019
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ATTOM Data Solutions released its Q3 2019 U.S. Home Affordability Report, which shows that median home prices in the third quarter of 2019 were not affordable for average wage earners in 371 of 498 U.S. counties analyzed in the report (74 percent). The largest populated counties where a median-priced home in the third quarter of 2019 was not affordable for average wage earners included Los Angeles County, CA; Cook County (Chicago), IL; Maricopa County (Phoenix), AZ; San Diego County, CA and Orange County, CA. Those same counties were in the top five in Q2 2019. Salt Lake City ranked 87 on the report’s affordability index. A score under 100 is less affordable than historic averages. In Salt Lake City, 46.3 percent of a person’s annualized wages were required to buy a home in the third quarter. That compares to 105 percent of a person’s wages in Santa Cruz County, Calif., and 87.9 percent in Maui County, Hawaii. Multifamily construction is booming in the Salt Lake area, according to a new report by Marcus & Millichap. Nearly 2,800 rentals were brought online over the past four quarters following the finalization of 3,640 apartments during the previous yearlong span. The first half of 2019 witnessed the delivery of 1,060 units, with Icon 9700, a 264-door property in Sandy, representing the largest completion. The report said development is underway on 5,700 apartments with completions extending to the third quarter of 2021. Tight conditions and a lack of widespread concessions usage allow the average effective rent to reach $1,185 per month this year, a 5.6 percent increase.
KURT ANDREWSEN First American Title Insurance 801-870-2860 kandrewsen@firstam.com LESA BEUCHERT | NMLS #192201 Elevate Home Warranty 801-671-3741 lesa@elevatehw.com TRICIA BRUGGEMAN Gateway Mortgage Group 801-891-2664 Tricia.Bruggeman@gatewayloan.com JOHN GONZALES | NMLS #242963 South Towne Mortgage 801-718-1626 john@southtownemortgage.com
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KIMBERLY HENDRY| NMLS #288635 Veritas Funding 801-688-0599 khendry@vfund.com JULIE KRUSHENSKY KRUSHENS First American Title Insurance 801-598-7391 jkrushensky@firstam.com LONI LARSEN Pillar to Post 801-244-5255 lonilarsen@comcast.net lonila BROCH LASSIG | NMLS #340314 OneTrust Home Loans 801-637-3409 blassig@onetrusthomeloans.com JOLENE LEHMAN All-Points Home Inspec�ons 801-518-7355 jolene@allpointsinspect.com JEFF LOVELAND | NMLS #1465556 OneTrust Home Loans 970-210-6603 jloveland@onetrusthomeloans.com KELLIE STONE | NMLS #260533 Graystone Mortgage 801-792-4974 kstone@graystonemortgage.com DEANN TAYLOR Monument Title 801-205-3122 deann@monumen�tle.net
Sandy Day
COMMITTEE CHAIR Stewart Title 801-918-9669 | sandy.day@stewart.com
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COMMITTEE VICE CHAIR Inspiro Financial| NMLS #261036 801-755-4988 | mviselli@inspirofinancial.com
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Be Careful What You Say By Holly Rawson
A
rticle 15 of the Realtor® Code of Ethics summarizes that we, as Realtors®, should not be negative towards other real estate professionals. This is an important article to keep in mind because it sets the standard for the level of professionalism we should conduct ourselves with towards our peers in this industry. Realtors® not only pledge a higher level of professionalism to the public and their clients but also to each other. This sets Realtors® apart from the average licensee. Ways to avoid a possible violation of this article include watching what you say in public, write, or post on social media about a real estate professional, their businesses and their business practices. According to a 2016 article in Realtor® Magazine, venting about another agent or commiserating on commissions can be an ethics violation. “It’s not smart to air your frustrations about a colleague online because it could violate Article 15, which prohibits Realtors® from making false
30 | Salt Lake Realtor ® | October 2019
or misleading statements about other real estate professionals related to transactions or business practices,” according to the article. “You can also get into trouble in blog comments by suggesting another agent’s client take a negative action against that agent. For example, responding to a frustrated seller by saying, ‘Fire your listing agent and I’ll help you’ can easily become an ethics violation.” You should assume that everything you say, write or post is not private information, but could be something that ultimately lands you at an ethics hearing before the Salt Lake Board of Realtors® Professional Standards Committee. Article 15 violations don’t come before the Salt Lake Board of Realtors® Professional Standards Committee very often. Therefore, let’s continue to keep the professionalism in this industry high especially as the real estate industry continues to evolve. Holly Rawson is the professional standards administrator at the Salt Lake Board of Realtors®.
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