Insight | May 2012

Insight A

B i-m o n t h l y

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Converting Online Leads Into Dollars How Do You Gain The Magic Touch?

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In Every Issue 2

President’s Message

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Events Calendar

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Editor’s Desk

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By the Numbers

Features 8

Cover Story It sounds simple enough in theory, but in reality the act of converting online leads into actual business requires a calculated, methodic approach. Here’s a primer for how to be successful.

10 Inside NC REALTORS® 26 End Notes

May/June 2012

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Five Minutes With …

Dustin McClure of Mooresville is included among the 50 nominees for NAR’s “30 Under 30.” Not surprisingly, he’s been enamored with real estate since college.

28 Closing Thoughts

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Self Protection 101 It’s true for your clients, and it’s true for you: Your home is your single biggest investment, and here’s how to protect it – and you – and save you dollars in the process.

Departments 5 18 22

Political Action Committee Government Affairs The Forms Guy

P R E S I D E N T ’ S

M E S S A G E

BY LOU BALDWIN PRESIDENT

Resources Serve Us Well in the Arena AS YOU ARE AWARE, OUR THEME FOR THE YEAR IS “REALTORS® IN THE ARENA.” THERE ARE MANY FACETS OF THIS THEME BUT PERHAPS THE MOST IMPORTANT IS THE REALTOR® ORGANIZATION BEING ACTIVE IN THE LEGISLATIVE AND POLITICAL ARENAS. THIS IS A KEY YEAR IN THOSE ARENAS AND THE “SEASON” HAS BEGUN. In the next 30 days, we will have both our NAR Midyear Meetings in Washington and our NCAR Legislative Meetings in Raleigh. The state legislature will be convening and, with the primaries behind us, we will go full speed with an eye toward the general elections in November.

Our REALTOR® issues are important to our communities, our state and our nation. So what types of “armor” does our Association carry into the legislative and political arenas? It is great that we believe we are solidly on the right side of issues – we are for the people, protecting homeownership and private property rights, for growing the economy and creating jobs.

Unfortunately, that is not enough. Here is some of the key armor with which I believe our members equip us: w

We have the ability to be proactive. The “Guiding You” campaign, for example, helps set the stage for a strong legislative presence.

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We have an envious REALTOR® Political Action Committee (RPAC). Our PAC ranks as one of the strongest in North Carolina, enabling us to financially support the campaigns of worthy candidates who understand our positions. w

We have an active 527 (a tax code) in the North Carolina Homeowners Alliance that enables us to make strong independent expenditures in key races.

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Our Issues Mobilization Fund allows us to maintain the necessary resources to conduct research and promote our positions on important issues.

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We have a strong presence within the halls of the General Assembly, led by a very effective legislative staff and supported by highly regarded consultants.

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Our numbers. We are 30,000 members strong and owners of a strong foundation. Grassroots efforts include our “boots on the ground” – local and state association committees and volunteers and staff, including a strong local government affairs directors network, our calls for action and our state and federal political coordinators.

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Lastly, our reputation and track record, coupled with the teamwork we’ve built with NAR – a large, savvy national advocacy organization supporting our efforts – and you can see where our armor equips us well.

These resources all work together to make our organization a force to be reckoned with in the legislative arena. Our members, our communities and our state all benefit from our efforts. I look forward to seeing you “in the arena” in the months ahead.

Sincerely,

Lou Baldwin

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E V E N T S

C A L E N D A R

Key Dates in the Coming Months May 14-19

NAR Midyear Meetings

Washington, D.C.

June 4-6

NC REALTORS® Legislative Meetings

Raleigh

June 5

Legislative Reception

Raleigh

June 6

Legislative Day

Raleigh

July 15-17

Regional AE Conference

Young Harris, Ga.

Aug. 8

GRI 301: Residential Construction

Greensboro

Aug. 9

GRI 304: Property Management

Greensboro

Aug. 20-21

NAR Leadership Summit

Chicago

Aug. 20

GRI 101: Residential Financing

Raleigh

Aug. 21

GRI 102: Creative Listing Strategies

Raleigh

Sept. 8-12

NC-SC Conference & Expo

Savannah, Ga.

Oct. 8

GRI 201: Business Planning

Wilmington

Oct. 9

GRI 202: Business Ethics

Wilmington

Oct. 22

GRI 104: Tax Planning

Charlotte

Oct. 23

GRI 302: Residential as an Investment

Charlotte

Nov. 7-12

NAR Conference & Expo

Orlando, Fla.

Contact Us: Members of the NC REALTORS® staff can be reached Monday through Friday during regular business hours of 8:30 a.m. to 5 p.m. at 336-294-1415 or via email using the person’s first initial and last name@ncrealtors.org. Our fax number is 336-299-7872.

Administrative Andrea Bushnell Executive Vice President 336-808-4220 Anne Shoemaker Chief Operating Officer 336-808-4229 Bryan Jenkins Chief Financial Officer 336-294-3112 Denise Daly Membership Records Coordinator/Bookkeeper 336-808-4223 Sherry Harris Administrative Assistant 336-808-4230

Amanda Lowe Accounting Assistant 336-217-1048 Phyllis Lycan Accountant 336-808-4224 Donna Peterson Executive Assistant 336-808-4221 Sarah Beth Coggin Partners Program Manager 336-217-1047 Blair Wilburn Business Development Manager 336-808-4228

Communications & Marketing Kevin Brafford Director of Communications and Marketing 336-808-4225 Samantha Ashburn Electronic Communications Manager 336-808-4226 Barbara West Communications Specialist 336-808-4227

Legislative Cady Thomas Director of Government Affairs 919-573-0996 David McGowan Director of Regulatory Affairs 919-573-0994 Julie Woodson Director of Political Communications 919-573-0992 Kristin Miller RPAC Manager 919-573-0995 Nicole Arnold Shared Local GAD 336-808-4237

Professional Development Ellie Edwards Director of Professional Development 336-808-4231 Legal Will Martin General Counsel 336-808-4238 Kay Bailey Legal Assistant 336-808-4235 Events Mandy Lowe Events Director 336-808-4236 Keri Epps-Rashad Meeting Planner and EXPO Manager 336-217-1049

I N S I G H T M a y / J u n e 2012

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E D I T O R ’ S

D E S K

BY KEVIN BRAFFORD EDITOR

Do You Know a Worthy ‘Good Neighbor’?

LAST YEAR, FOR THE FIRST TIME, THE NC ASSOCIATION OF REALTORS® PUBLISHED A SOCIAL RESPONSIBILITY REPORT. ITS PURPOSE WAS LARGELY TO, WITHOUT OVERTLY TOOTING OUR OWN HORN, REMIND OUR ELECTED OFFICIALS OF JUST SOME OF THE COUNTLESS HOURS OF VOLUNTEER EFFORTS BY OUR MEMBERS. Well, so impressed were we with your devotion to the communi­ ties where you live and work that we’re publishing a subsequent report in 2012. And while it’ll serve much of the same purpose as a year ago (and we’ll share it with you), it’s also a reminder that there is a opportunity to loudly toot a horn … for an especially deserving REALTOR®.

The program is the REALTOR® Magazine Good Neighbor Awards. Now in its 13th year, it recognizes REALTORS® who’ve made an extraordinary commitment to their communities through volunteer work. Five winners are announced each fall in the magazine’s November issue.

The numbers tell the story.

12.2 Percentage the real estate profession is expected to grow by 2020, according to The Bureau of Labor Statistics. $205,000 On average, amount of additional dollars you’ll pay for a home in a neighborhood with a high-scoring public school versus a school with a low score, according to the Brookings Institution. $7.4 In billions, amount Chinese buyers spent on homes in the U.S. in the 12 months ending in March 2011, making the Chinese the second-largest foreign buyers of homes in the U.S. Canadians were No. 1.

51 Percentage of National Association of REALTOR® members whose contracts settled on time in February.

4,240 Increase in the number of employed North Carolina residents in March, according to the N.C. Department of Commerce.

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Winners are recognized annually at the NAR Conference & Expo, and receive $10,000 grants for their charities. Winners also receive travel expenses to the conference and national and local media exposure for their community cause. In addition to the winners, five honorable mentions each receive a $2,500 grant.

And each winner receives a $2,000 Lowe’s gift card; each honor­ able mention receives one worth $1,000.

Since it was established in 2000, the program has honored 120 REALTORS® from coast to coast, including four from our state.

Tom Bush of Winston­Salem (2004) and Helen Marotto of Hampstead (2009) were winners, and Randall Barnett of Asheville (2007) and Joe Rempson of Charlotte (2010) were honorable mention recipients.

I think we’re about due for another honoree, don’t you?

Good Neighbor Award nominations must be received by May 18, so don’t delay. For more details and an entry form, go to www.realtor.org/gna or call 800­874­6500. v

P O L I T I C A L

A C T I O N

C O M M I T T E E

BY KRISTIN MILLER RPAC MANAGER

Fundraising Takes Over Center Stage GET READY FOR THE DANCING, THE GLAMOUR AND THE GLITTER – YES, THERE WILL BE GLITTER! – BECAUSE THIS YEAR’S ANNUAL RPAC FUNDRAISER WILL BE “DANCING WITH THE R’S!” Dancing with the R’s will be very similar to the ABC hit show “Dancing with the Stars,” but instead of Hollywood stars, the event will feature REALTORS® stars. Not only will this event be packed with fun and excitement, it also will include com­ petition against the South Carolina Association of REALTORS®. While they’ll be peers during our joint 2012 Conference & Expo in Savannah, they’ll be our competition on the night of Sunday, Sept. 9, as we raise money for RPAC! The RPAC Trustees will choose five couples to compete. Any dance style from shag to ballroom and even hip­hop will be able to compete. The only stipulation is that one person in each couple has to be a REALTOR® member. Do you think you have what it takes to compete? The RPAC Trustees will select the couples from video entries that are submitted prior to June 1. If you would like to submit a video, or are interest­ ed in competing, please contact me at kmiller@ncrealtors.org.

Just keep in mind – and an open mind! – that this is a great way to have fun while also making a significant investment in your profession.

Looking for a Few Good Men & Women The RPAC Trustee Credentials Committee is taking applications for candidates for Regions 3, 4, 6 and 9 for three-year terms. In addition, it is accepting applications for two at-large positions for three-year terms.

Elections will be held at the NCAR Board of Directors meeting in September for regional trustees, and at-large positions will be appointed by the 2013 RPAC chairman in October. For more information and an application form, please email me at kmiller@ncrealtors.org. The deadline for applications is Friday, July 13.

Shifting gears (or perhaps dance steps), you asked and the RPAC Trustees have listened. A new policy is in place that will allow local associations to use some of their local candidate funding dollars available to help cover initial costs for RPAC fundraisers. Thinking about having that bowling tournament or golf outing fundraiser but need financial support to get you started? The new policy, “The RPAC Fundraising Partnership Program,” will allow local associations to apply for some of their local candidate funds available to be used for RPAC fundraisers and marketing materials.

If you aren’t familiar with how RPAC works, let me explain.

Seventy percent of all money raised stays in North Carolina for use at the state and local level. The remaining 30 percent goes to NAR for use in federal campaigns, meaning that this money returns to the state in the form of contributions to our congres­ sional candidates.

The amount of money available to help fund local candidates is based on how much money the local association has raised.

Local associations automatically receive 20 percent of whatever is raised under its goal. If it reaches its goal, it receives 30 per­ cent. And if it exceeds it, it receives 30 percent of the amount of its goal plus 40 percent of anything over goal.

The RPAC Trustees hope that giving another option to utilize these funds will help increase fundraising participation and overall investments to RPAC. To find out how much local can­ didate funding your association has available, or if you would like to apply for funding, please let me know. v

I N S I G H T M a y / J u n e 2012

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FIVE MINUTES WITH...

Real Estate Has Been Awesome For Me Real estate has always been my passion – I read books about it in college and loved it. But I was always just a little scared of it because I preferred the idea of a stable income. So when I graduated from college in 2005, I started in insurance sales. I sold insurance for about three months and didn’t like it. I had a friend who was a manager at Hendrick Automotive so I worked for him for a while but didn’t like selling cars either. Finally, in April 2007, I took the plunge and started working in real estate.

I work with residential sales, land sales, and property management.

I’m into everything. My passion is definitely land sales, though – it’s what our brokerage is based on, and it’s been the majority of my business since I got into real estate. In 2007, I started working with Keller Williams and was working with land sales. But in 2008, things started really declining, and there wasn’t any development anymore so we had to change focus. I’ve since started my own company with another guy from Keller Williams. I now focus mainly on rural land tracks for people buying land for hunting or investing, and other recreational users.

Being named one of NAR’s “30 Under 30” has always been a goal of mine. This year, I think the deadline for turning 30 was a month before I

NAME Dustin McClure LOCATION Mooresville FIRM Mossy Oak Properties Outdoor Realty LOCAL ASSOCIATION Charlotte Regional REALTOR® Association

Dustin with his wife, Rachael, and daughter, Madilyn, in Savannah.

turned 30 so I got lucky. In the application, they ask you a lot more about community involvement, your business, your niches, etc. They really don’t focus a lot on actual numbers. Then, from all the applications, they choose the top 50 and then the voting opens up. I am involved with the REALTORS® Land Institute, and I had a really great response from them when it came to voting for me.

Looking back, I got into the market at the worst possible time. When I started, it was still at that peak so I had a ton of properties under contract.

Not long after, the market really started dropping – I lost so many deals in the first few months. It was really tough, but at the same time, I think it was a good thing because it made me work harder toward what I really wanted to do. I never really had the chance to see it when it was great. I figure if I can make it through this, I can make it through the better times.

My sister is a year younger than me so I was protective of her growing up. We hung out a little bit when we were younger, but I had to make sure and keep her away from my friends. She lives in Greenville (N.C.) now with her nine­month­old baby. I have a seven­month­old baby so it’s fun when we get together. We try to see each other as much as we can, but we definitely don’t see each other as much as we’d like to.

My wife and I have a little girl with quite the personality. She is learning how to talk now, so she likes to ruin everyone’s dinner when we are out at a restaurant. She’s learning to scream, and she’s happy to let everyone know it.

I actually met my wife through real estate. While I was at Keller Williams, my wife’s cousin was looking for land here in the Charlotte market. They came up and met with my company and I helped them find land. The rest is history. I can say that real estate has been great for me … it even gave me a wife.

I really enjoy golf and playing softball. There are a ton of golf courses around the Mooresville area – one was even recently bought

by Donald Trump, which is pretty cool. If I’m not golfing, I’m playing softball. My company sponsors a team, and we play in tour­ naments and travel around and play pretty much all year. I have to say, though, my softball time has dwindled since my daughter was born. v 6

I N S I G H T May /Jun e 2 0 1 2

Converting Online Leads Into Dollars

By Bridget McCrea

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t sounds simple enough in theory, but in reality the act of converting online leads into actual business requires a calculated, methodic approach that often eludes even the best REALTORS®. The temperature of an online lead cools down fast, with potential buyers cruising through numerous websites, picking out a few properties, and sending inquiries to multiple agents. Being the first to respond is critical.

When it comes to online real estate leads, Sherry Gorman, broker/owner at L3 Realty in Hickory, says she and her seven agents use a calculated process for turning them into paying customers.

She estimates that 20 percent of the firm’s leads are generated online, namely through its own corporate website. Yard signs, online and offline advertising, and other mechanisms drive that site traffic. Once prospects get to L3 Realty’s online home, they are asked to fill out a registration form that gives them access to the region’s MLS. Once registered, prospects are assigned to an agent who reaches out to them via phone (if a number has been provided) or email. “We try to gauge the level of motivation and see just how far away the prospect is from buying or selling,” Gorman explains. “Once we have that information we can develop manual and/or DRIP email campaigns around those motivations.”

Agents then update the prospects on a daily basis via email with market updates, new listings, and other pertinent information. Some agents use the firm’s DRIP email system and others prefer to use direct, customized messages. Ultimately, Gorman says the goal is to get the prospect into the office for a buyer or seller interview. Like most other real estate firms across the country, L3 Realty converts about 1 to 2 percent of all online leads into paying customers.

Gorman is happy with her firm’s online lead conversion and says that in many cases her agents’ consistency and persistence help L3 Realty be the “go to” agency when the buyer or seller does decide to enter the market. “We basically stay in touch without bothering them, knowing that it could be four to six months down the road before they make the move,” says Gorman. “A lot of times we get the call because we’re the only ones who stayed in touch.”

Paving a Success Path It’s no secret that technology has changed the way homes are bought and sold in America, where the Internet has replaced more “traditional” means of searching for available properties. According to the 2011 National Association of REALTORS®’ Profile of Home Buyers and Sellers, the number of buyers who use the Internet to find a home has risen from a slight 2 percent in 1995 to a whopping 88 percent last year.

Real estate agents still reign when it comes time to close the deal. NAR says 91 percent of homebuyers who used the Internet to search for a home purchased through an agent. Many times, it’s the first agent to respond who gets the business, as evidenced by the fact that a high percentage of all buyers and sellers only contacted one agent before deciding whom to hire.

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But while the industry numbers may be aligned in the agent’s favor, the art of transforming online leads into closed deals is anything but easy. National conversion rates hover around the low single digits, and sometimes even lower. Veiled by the anonymity of the Internet, buyers can hop around from site to site (making requests of multiple agents along the way), provide bogus information about themselves, and drop off the face of the earth at any given time.

These and other factors can make establishing a trusting relationship – the very core of the agent-client dynamic – difficult at best.

Matt Hernacki, broker/owner at MisterHomes.com Real Estate in Palatine, Ill., says his team has broken through those barriers and today generates about 63 percent of its new business via the web.

Roughly 5 percent of the online leads are converted into closed deals. Most of the leads come through the company’s website, which is promoted heavily using pay-per-click advertising.

To maximize every lead, Hernacki says he avoids autoresponders and instead focuses on a more personalized approach. Individual agents handle the task by scouring all incoming messages and addressing them on a case-by-case basis. “They’re physically looking at every email, which is a lot of work,” he admits. “But it succeeds in the long run because the buyers or sellers know that someone is actually paying attention to their questions and their needs.”

10 Online-Lead Cultivation Tips 1. Try to be the first to the party every time.

2. Use your smart phone and other portable devices as tools for getting to the prospect first.

3. Answer online inquiries within seconds or minutes – preferably when the prospect is still viewing your listing.

4. Use personalized responses whenever possible.

5. Don’t assume that just because a lead hasn’t turned into business within 60 to 90 days that it isn’t any good.

If a lead isn’t ready to purchase within the next few months, a MisterHomes.com agent will push the prospect over to a DRIP email campaign system that Hernacki says is “still highly personalized,” using elements like video messages. “We realize that everyone is getting these emails from all different companies,” says Hernacki, “so we strive to make our messages as personalized as possible.

That’s the only way to stand out.”

6. Use written communication skills in email, particularly when working on the fly and answering messages via smart phone.

A Lasting Impression

answering every email to help convey the message that you are a trusted resource and an expert who can guide the client through the transaction.

To agents who assume that they can flip a switch to create an effective lead incubation system overnight, Hernacki says a better approach is to compare the project to building a pipeline. Every element must be in place, he says, or the system will not flow properly or operate as expected. Use messages like “We know you’re not ready to buy right now, but here are a few options to consider,” to let buyers know that you understand their individual situations.

“The ultimate goal should be to create a system through which a wide variety of customers will be ready to purchase at different intervals,” says Hernacki. “That way, you’ll always have a selection of individuals who are ready to work with an agent.”

Gorman says being consistent and patienct are keys to success when nurturing online leads, particularly when you’re dealing with prospects whose timelines are longer than a few months. “It takes time to cultivate these buyers and sellers, but in the end it’s worth it when you can be the agency that stands out from the clutter online,” says Gorman, “and that makes a lasting impression.” v

7. Be as thorough as possible when

8. Avoid online lead generation firms that demand money upfront or long-term contracts.

9. Investigate potential lead generation targets from the consumer perspective to see how they conduct business.

10. Use a combination of personal emails and phone calls, DRIP campaigns, social networking, and other tools to cultivate relationships with online prospects.

I N S I G H T M a y / J u n e 2012

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I N S I D E

N C

R E A L T O R S ®

O’Connor Named to RPAC Hall of Fame SANDRA O’CONNOR, A PAST NC REALTORS® PRESIDENT AND THE BRANCH LEADER OF THE ALLEN TATE GREEN VALLEY OFFICE IN GREENSBORO, HAS BEEN NAMED TO THE REALTORS® POLITICAL ACTION COMMITTEE (RPAC) HALL OF FAME. Only 345 individuals have been honored with this distinction, including 10 in North Carolina. The honor recognizes those who have made both personal and financial commitments to the organization. O’Connor was recognized for her “extraordi­ nary commitment to RPAC over the years” by 2011 RPAC chair Rick Violett. She will be inducted to the Hall of Fame at RPAC’s midyear meeting on May 16 in Washington, D.C. “When I became president of the Greensboro Regional REAL­ TOR® Association and later, the North Carolina Association of

REALTORS® (in 2009), I made a personal decision to support the industry that sup­ ports me,” says O’Connor. “I was inspired when I joined the Allen Tate Company and learned that Allen Tate was the first Hall of Fame member from North Carolina.”

A former art teacher and law librarian, Sandra O’Connor received her North Carolina real O’Connor estate broker’s license in 1983 and began her own independently owned real estate firm, Sandra O’Connor and Associates. She joined the Allen Tate Company in 2005.

“Sandra is an inspiration to all of us for her work in support­ ing our industry and our future,” says Pat Riley, president and CEO of the Allen Tate Company. v

N.C. Housing Finance Agency Honored THE N.C. HOUSING FINANCE AGENCY HAS WON ITS SIXTH NATIONAL AWARD FOR HOUSING COUNSELING EFFORTS TO PREVENT FORECLOSURES. THE $1.4 MILLION GRANT FROM THE NATIONAL FORECLOSURE MITIGATION COUNSELING PROGRAM WAS AWARDED THROUGH A COMPETITIVE PROCESS AND BRINGS NORTH CAROLINA’S TOTAL TO NEARLY $10 MILLION. THE AGENCY DISTRIBUTES THE FUNDS TO LOCAL NONPROFIT COUNSELING GROUPS, WHICH PROVIDE FORECLOSURE PREVENTION COUNSELING DIRECTLY TO HOMEOWNERS. Funds from the earlier grants have provided counseling for more than 30,000 homeowners. Of those who have completed counsel­ ing, more than 3,000 are known to have avoided foreclosure. The sixth grant is expected to assist more than 4,000 homeowners.

“Saving homes from foreclosure not only protects working fami­ lies but it preserves property values throughout the community and contributes to the stability of financial institutions,” says Sam Ewell, chair of the board of the N.C. Housing Finance Agency.

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“Our agency is very proud to have gained these funds for North Carolina. With the increasing number of foreclosure pre­ vention scams out there, it’s essential that reputable organiza­ tions have the resources to provide real help.”

Approved by Congress in the 2008 Consolidated Appropriations Bill, the National Foreclosure Mitigation Counseling Program is administered through a competitive application process by NeighborWorks® America.

NeighborWorks® America is an independent, congressionally chartered nonprofit organization based in Washington, D.C., with a mission to provide access to sustainable homeowner­ ship and safe, affordable rental housing.

The N.C. Housing Finance Agency also administers the N.C. Foreclosure Prevention Fund, using funds from the U.S. Department of the Treasury’s Hardest Hit Fund®. The foreclosure prevention loan program helps North Carolina homeowners who are struggling to make mortgage payments due to job loss, reduced income or certain other temporary financial hardships. v

Arnold Joins Staff as Shared Local GAD NICOLE ARNOLD HAS JOINED THE NC ASSOCIATION OF REALTORS® STAFF AS A SHARED LOCAL GOVERNMENT

paigns, grant writing, fundraising, grassroots advocacy and political communications.

AFFAIRS DIRECTOR (GAD). HER DUTIES INCLUDE PROVIDING PROFESSIONAL SERVICE AND EXPERTISE TO ALL POLITICAL PROGRAMS, AND TO PROVIDE BASIC GOVERNMENT AFFAIRS REPRESENTATION FOR SPECIFIED LOCAL REALTOR® ASSOCIATIONS. She will educate and mobilize members, engage in policy devel­ opment for the Greensboro Regional REALTORS® Association and develop an action plan to implement its goals.

She comes to NC REALTORS® on the heels of the primary elec­ tion season where she served as the campaign manager for Strategic New Directions Consulting, a political consulting firm in High Point. A licensed real estate broker, she has a diverse back­ ground, which includes managing federal and state political cam­

Experienced

Arnold graduated with a bachelor’s in public policy studies from Duke University and earned a master’s in public administration from the University of North Carolina at Nicole Arnold Charlotte. In her free time, she serves as a volunteer to the Peaks to Piedmont Chapters of the Girl Scouts and as a board member for the Oakview United Methodist Church Preschool in High Point. She’ll work primarily out of our Greensboro office.

Also joining the staff as a summer intern in the communications and marketing department is Caroline Cobb. A native of Raleigh, she just completed her junior year at Meredith College.

She’ll work primarily out of our Raleigh office. v

Martin & Gifford, PLLC is a law firm dedicated to serving the interests of real estate brokerage professionals across the State of North Carolina.

Knowledgeable Committed legal advocates

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Professional license defense – North Carolina Real Estate Commission

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Commercial and residential real estate litigation – fee disputes, defense of misrepresentation and other claims against real estate agents

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Representation of landlords and property managers in lease disputes and evictions

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Construction litigation

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Risk management guidance for firms and agents – development of specialized forms, policies and procedures

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Formation and licensing of real estate firms

www.martingiffordlaw.com 336.714.0333

I N S I G H T M a y / J u n e 2012

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E M P L O Y M E N T

L A W

BY MICHAEL A. GILLES GUEST COLUMNIST

A Different Form of CPR You Should Know HERE’S A NEWS FLASH: PEOPLE ARE NOT PERFECT. AND THEY CERTAINLY DO NOT PERFORM THEIR JOBS PERFECTLY ON A CONSISTENT BASIS. CONSEQUENTLY, EMPLOYERS AND MANAGERS FREQUENTLY NEED TO TAKE CORRECTIVE ACTION WITH RESPECT TO EMPLOYEES. EFFECTIVE ADMINISTRATION OF CORRECTIVE ACTION RESULTS IN GREATER JOB PRODUCTIVITY, ENHANCES EMPLOYEE RELATIONS, AND REDUCES THE RISK OF LEGAL LIABILITY. But what makes the administration of corrective action proce­ dures effective? In advising employers over the years, I have observed that the most effective managers of people have three things in common: w

Good communication skills that are employed regularly; w Very professional demeanor and behavior; and w A high degree of respect for the people with whom they work.

So we can summarize what it takes to be an effective manager of people in three words: communication, professionalism and respect, or to help you remember it, “CPR.” When corrective action is communicated poorly, in an unprofession­ al framework, or with little respect for the employee, the results will almost certainly be counterproductive.

The first step in administering corrective action should be the development of a corrective action policy. Having written personnel policies that inform employees about expectations and consequences is a basic ingredient in professional com­ munication that shows respect for the employee. The correc­ tive action policy instructs both managers and employees in what the process will be when an employee’s performance or behavior needs improvement. Some employers refer to this policy as their disciplinary policy but “corrective action” has a much more positive connotation, and the goal of the policy really should be to correct performance or behavior rather than to punish it.

A frequently recommended type of corrective action policy that many employers use is a progressive corrective action policy. Such a policy moves from less formal and serious cor­ rective action to more formal and serious action in later steps.

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The first step is often described as counseling or coaching – explaining to the employee how performance or behavior can be improved. This step is actually basic training and essential management and may not even be perceived as “corrective action.” The step is essential, however, for the following steps to make sense. Issuing an oral or written warning would be per­ ceived as unfair if the manager had never counseled the employee about what was expected. The more professionally and respectfully this step is communicated, the more likely it is that no further action will be necessary.

No matter how well the counseling stage is handled, however, further problems with performance or behavior may occur. In that case, the second step of a progressive policy would typical­ ly result in an oral warning. The manager informs the employee about exactly what improvement is needed and tells the employee that he or she is being formally warned about the necessary improvement and that a written record of the oral warning will be placed in the employee’s personnel file. The increase in formality is likely to ratchet up the employee’s level of concern, so the need for respectful, professional, and clear communication is critical.

If further problems occur after an oral warning, progressive cor­ rective action policies typically call for a written warning as the next step. In the written warning, all of the problems that have previously been identified should be included along with the immediate concerns that prompted the corrective action. Prior warnings should be specifically referenced, and the warning should inform the employee that further corrective action, up to and including termination of employment, will occur if the employee does not correct the problem or repeats the violation.

Communication Professionalism Respect

The seriousness of the warning needs to be clear, but the employee also needs to understand that the employer and manager want to help the employee improve the performance or behavior that has prompted the warning. Striking an appro­ priate balance is not easy and clear communication that is both professional and respectful is required.

The final step in a corrective action policy is termination of employment. While North Carolina is an “employment at will” state and employers may generally discharge employees for any reason that is not specifically illegal, wise employers realize that they should not take much comfort in this legal doctrine. As a practical matter, the more ruthlessly and cal­ lously terminations of employment are perceived, the more likely it is that the discharged employee will seek to cause legal or practical problems for the employer. A Duke University study found that ex­employees who perceived the process of their termination as fair were much less likely to file claims against their former employers, even if they dis­

agreed with the reason for the discharge. Employees who per­ ceived the process as unfair were much more likely to make legal claims against the employer. Managers who show that they respect and care about the employee who is being dis­ charged and who demonstrate that they have done their best to be fair at each step along the way will be serving the inter­ ests of the both the employer and the employee and will have gone a long way toward making a difficult situation under­ standable and bearable.

Good managers use “CPR” because they know how important it is in the business setting for people to be treated profession­ ally and respectfully. v

Michael A. Gilles provides consulting and training in Employment Law and Human Resources Management to businesses and organizations throughout the state. He can be reached at mgilles8311@bellsouth.net.

The Certified Distressed Property Expert (CDPE) Designation Sponsored by: North Carolina Association of REALTORS ® and Greensboro Regional REALTORS ® Association

The Certified Distressed Property Expert (CDPE) designation course, offered by the Charfen Institute, aims to educate real estate professionals on how to handle and market distressed properties. CDPE Designees can confidently guide sellers through a short-sale process.

Your CDPE Designation Includes: l 2 Days of classroom instruction l Sample Short Sale Package l Checklists for Distressed Situations l Complete Short Sale Forms & Resources l Membership Benefits for 12 months NCAR and GRRA are solely the HOSTS of this class. Please direct ALL questions to The Charfen Institute at 800-482-0335.

Where:

Greensboro Regional REALTORS® Association, 23 Oak Branch Drive, Greensboro, NC 27407

When:

June 14 & 15, 2012

Time:

9:00 a.m. - 5:30 p.m.

Fee:

Non-NCAR Members $599 NCAR Members $449 (Payment Plan Offered)

Register:

Charfen Institute – call 800.482.0335 or visit www.CDPE.com

This professional designation certification is not affiliated with or endorsed by the National Association of REALTORS®.

Earn Your CDPE Designation Today!

I N S I G H T M a y / J u n e 2012

15

M A R K E T I N G

BY ANDY HELLER GUEST COLUMNIST

Find Clients with a Marketing Budget of $0.00 TODAY’S REALTORS® FACE A CHALLENGING MARKET AS THE VOLUME OF REAL ESTATE TRANSACTIONS IN MARKETS ALL OVER THE COUNTRY ARE DOWN SIGNIFICANTLY FROM THE MARKET HEYDAY IN 2003-05.

FURTHER, THE VALUE OF EACH TRANSACTION IS DOWN 30 TO 50 PERCENT IN MOST MARKETS, AND COMMISSIONS HAVE NOT INCREASED FROM THE TYPICAL 6 TO 7 PERCENT THAT IS COMMON IN MOST MARKETS, EVEN THOUGH AGENTS ARE WORKING HARDER TO SELL EACH PROPERTY. In short, if today’s REALTOR® does not increase the number of clients he or she has, it will be difficult to meet their income goals. So where are these new clients going to come from? With fewer transactions and less market activity, even superstar agents who fed the pipeline almost exclusively with referrals will find this does not work as well these days.

Compounding the problem is that traditional marketing channels, such as newspaper ads and billboards, are out of the reach of all but a handful of agents.

If we assume a marketing budget of close to zero, how can a resourceful agent find new clients within his/her community?

The only answer is through social media. Social media includes both known and up and coming sites where prospective clients are spending time and are ripe for the picking. When it comes to social media, most REALTORS® fall into one of three categories: w

Agents who are not typically on social media sites.

w

Agents who are on some social media sites, but are not getting business from these sites (yet); and

w

Agents who are on social media sites, and have started to get some clients via social media.

Let’s first discuss agents who are not typically on social media sites.

Why aren’t they there? The most com­ mon explanation is “I do not have time

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I N S I G H T May/June 2 0 1 2

or I do not understand social media.” Certainly, there are generational factors impacting an agent’s use of social media.

However, social media has now reached a point where, particu­ larly in the real estate industry, it cannot be ignored as a vehicle to find new clients.

For the agents who are not Internet­savvy, or lack the time or desire to learn, you’ll need to find some help. The ideal candi­ date is a computer­savvy teenager or college student who is already familiar with basic social networking sites like Facebook, YouTube and Twitter and who is looking for some corporate social media experience or who will do this for a small amount of money.

Give the student some sample profiles of other successful agents, some background on your successes, and your profes­ sional photo, and have the student set up profiles for you on a wide variety of social media sites, both big (like Twitter and Facebook) and niche.

An example of a niche site where agents can find new clients is RealtyJoin. I am a co­founder. This site (www.realtyjoin.com) is intended to be an online market­ place connecting real estate investors with the vendors investors need to be successful, such as real estate agents.

While not as voluminous as Facebook or LinkedIn, RealtyJoin is a great place for agents to find clients, as most members of RealtyJoin are potential clients. They’re investors looking to add to their properties in what is likely the best foreclosure buying market in history. Tapping into investors who have the cash and expertise to take advantage of the local marketplace is a great example of how a target­rich niche site like RealtyJoin can be used by agents to grow their business.

Many REALTORS® are on a variety of social media sites, and yet this has not yet

translated to new business. Why is that? A successful social media strategy hinges on the details. If you don’t connect the dots for your prospective clients, they won’t find you. Here are three simple and easy tips to help you generate more busi­ ness from your social media efforts:

Further, as an example, agent Chris Bradley is seeking to attract investors in the Atlanta area, and she is using her RealtyJoin blog to position herself as a resource for investors in the Atlanta area. If you are seeking homebuyers rather than investors, be a homebuyer resource on sites frequented by prospective home­ owners.

Create a Social Media Activity Strategy What you do with social media has to be more than just show­ ing up on a page. In other words, you have to be active and you have to know what you’re doing.

Respected author, blogger, and social media consultant Ilyce Glink discusses strategy for how REALTORS® can easily get business from social media. At our website, you can click on a link and listen to a short teleseminar where Ilyce lays out effective strategy tips for real estate professionals to use on social media.

The world as we know it is changing. In the past few years, social media has had a hand in overthrowing governments overseas, ending political careers, and launching upstart compa­ nies. Like it or not, social media is here to stay and will only increase in importance to today’s real estate professional. Oh, and by the way, did we happen to mention social media is also free? v

Andy Heller is a real estate investor, author, and educator. He is co­ founder of www.realtyjoin.com, the social media site dedicated to the real estate industry.

Make Sure Your Profile Says to a Reader, “I Should Be Doing Business With This REALTOR®.”

So many profiles of REALTORS® provide repetitive informa­ tion, but they don’t tell readers why they need you to be successful.

The most effective tool you can use is a testimonial. Having other people sing your praises is extremely powerful. Then kick that up a notch by making sure the provider of the testi­ monial has a profile within the same social media community.

This makes it easy for the reader of your profile to reach out to your customer and ask a question or two. The reader may not take the time to do that, but just being able to locate the satisfied customer within the same community will enhance the effectiveness of the recommendation.

On our website, take a careful look at real estate agent and RealtyJoin member Mitch Levinson’s profile. Mitch makes great use of testimonials, and his satisfied customers are in turn reachable and available for contact within the same community.

Be a Resource Online, As Well As a Resource in Person Offering valuable information through your social media communities will help you attract the type of clients you are seeking. The strategy behind this is discussed in Ilyce’s teleseminar.

I N S I G H T M a y / J u n e 2012

17

G O V E R N M E N T

A F FA I R S

BY JULIE WOODSON DIRECTOR OF POLITICAL COMMUNICATIONS

Two Chances for Your Voice to be Heard WE ALL KNOW THERE IS STRENGTH IN NUMBERS, AND NC REALTORS® HAVE TWO OPPORTUNITIES IN THE COMING WEEKS TO MAKE THEIR COLLECTIVE VOICES HEARD AT THE NATION’S CAPITAL AND THE STATE’S CAPITAL. During next week’s NAR Midyear Meetings May 14­19 in Washington, D.C., REALTORS® will have the opportunity to meet with their Congressional representatives during Hill visits.

And for the first time in a long time, NAR is planning a “REAL­ TOR® Rally to Protect the American Dream” to draw attention to housing issues. It’s set for Thursday the 17th from 9:30 to 11 a.m. at the Washington Monument on the National Mall.

This rally on Capitol Hill will show our elected officials that no one cares more about revitalizing the real estate market than REALTORS®. In order to plan the logistics, NAR is ask­ ing that each REALTOR® register as a REAL­ TOR® Rally Day participant to let NAR know you are coming and to get more details. For more information, visit www2.realtoraction­ center.com.

“More than 190 REALTORS® in North Carolina have registered to attend the Midyear Meetings, and we’re look­ ing forward to our collective voic­ es making a difference for issues impacting the real estate industry and homeowners in North Carolina and across the nation,” says Amy Hedgecock, 2012 NC REALTORS® Legislative Chair.

“Together, we can explain to our Congressional delegation how their decisions impact our industry and our citizens.”

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I N S I G H T May/June 2 0 1 2

A second chance to inform, this time on the state level, will come June 4­6 in Raleigh at our annual NC REALTORS® Legislative Meetings. This is an important opportunity for REALTORS® across North Carolina to provide a unified voice for the real estate industry in the state’s capital.

Of note, the Legislative Committee will meet on Tuesday the 5th from 9 to 10 a.m., and the Legislative Reception will be held that evening from 6 to 7:30 p.m. at the N.C. Museum of Natural Sciences on Jones Street. The reception is always well attended and is a great opportunity to speak with your legislators in an informal setting.

Of course, the main event is REALTOR® Day on Wednesday the 6th as we walk the halls of the General Assembly and visit with our legislators in the comfort of their offices. There will be a legislative briefing, followed immediately by a press conference to officially announce that NC REALTORS® will award five $10,000 fellowships to high performing housing counseling agencies across North Carolina. The fellowships are paid for through an NAR Foreclosure Prevention and Response grant.

Following the press conference, REALTORS® will visit their leg­ islators’ offices.

We hope you will make your plans to attend. To help you, we’ve arranged with the Sheraton a block of rooms at a rate of $119 per night for both single and double occupancy. Be aware that the room cutoff date is fast approaching – it’s Sunday, May 13! To make reservations, contact the hotel at 800­325­3535 or 919­834­9900.

“Legislative Day in Raleigh is an important day as hundreds of REALTORS® make their presence known at the General Assembly and discuss issues important to the real estate indus­ try directly with our legislators,” Hedgecock says. “This meet­ ing and our D.C. meeting are our two most important meetings of the year.

“In Washington, D.C., and in Raleigh, REALTORS® can actually talk to the people who make laws that impact our industry,” she adds. “Your presence and your voice are important, especially as lawmakers look at ways to drive the economy in the right direction. We want to make sure that real estate and homeownership are at the top of this economic discussion at all levels of government. Join us and make your voices heard!” v

I N S I G H T M a y / J u n e 2012

17

F O R M S

G U Y

BY WILL MARTIN GENERAL COUNSEL

Don’t Forget the Referral Fee Disclosure Dear Forms Guy: An acquaintance of mine wants to sell her cabin in the mountains. She knows I am a real estate broker so she asked me if I could recommend an agent up that way who she could list the property with. I’ve identified an area firm that I think would do a good job for her. I am completing the Referral Agreement (NCAR form 730) and have a couple of questions. Can you answer them for me? Sincerely, Beavis

Dear Beavis: I’ll do my best. Sincerely, Forms Guy

acquaintance makes a decision whether to hire the firm you’ve referred her to, she needs to know about the refer­ ral fee arrangement.

Beavis: Do I have to make this disclosure in writing?

Beavis: Thanks. On the Referral Agreement form, after the place where you check whether or not the prospect is aware of the referral, there’s a “Note” that says I’m required by the rules to tell the prospect I may receive payment for the referral. My first question is, can I simply tell my acquaintance that I expect to be paid a referral fee if the cabin sells, or do I have to go into more detail?

Forms Guy: Technically,

Forms Guy: The rule in question is Real Estate Commission

Beavis: Does NCAR have a form I could use to make the

Rule 58A.0109. Subsection (b) of the Rule requires a real estate agent to make “full and timely disclosure” to a person of any fee that the agent may receive for services that he or she recom­ mends, procures or arranges relating to a real estate transaction for that person. According to subsection (d) of Rule, full disclo­ sure would include the amount of the fee that the agent may receive.

disclosure?

Beavis: But what I would be paid is a percentage of the com­ mission received by the listing firm if the property sells. I can’t disclose the amount of my expected fee if I don’t know what the property is going to sell for or, for that matter, what the commission arrangement between the prospect and the listing firm will be.

no. But from a risk­ management perspec­ tive, it would be foolish not to make the disclosure in writing.

Forms Guy: Yes, you could use the Confirmation of Compensation form (form 770). Or, for that matter, you could give the prospect a copy of the Referral Agreement. If you do that, it would be a good idea to have her sign and date something indicating that you gave her a copy of it in a timely manner in case a question about that came up later. If you don’t want to use either of those forms to make disclo­ sure, you could also do it by email. Again, though, it would be wise to get a reply email confirming her receipt of your email so that there isn’t any question later that you’d made disclosure. v

Forms Guy: In this situation, it would be sufficient to disclose to your acquaintance the percentage of the listing side of the commission that you would be paid according to the terms of the referral fee arrangement with the listing firm.

Beavis: When do I have to make the disclosure?

Forms Guy: Subsection (d) of the Rule states that “disclosure is timely when it is made in sufficient time to aid a reasonable person’s decision­making.” In other words, before your

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I N S I G H T May/June 2 0 1 2

Contact Will Martin at wmartin@ncrealtors.org if you have a question or a suggested topic of discussion for The Forms Guy

Protecting Your Home Protects You It’s true for your clients, and it’s true for you: Your home likely represents your single greatest investment. And so you want to protect it – and yourself as the homeowner – in every way imaginable.

One such way is from severe weather damage. A second, more abstract way is through a careful periodic review of your insurance needs. And not surprisingly if you think about it, the two can be related. For example, some storm preparations may help lower your homeowners insurance.

Here are a few steps to take before a storm approaches to help reduce damage, avoid an insurance claim and, in some cases, possibly save you money along the way:

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I N S I G H T May/June 2 0 1 2

p

Look at what’s over your head. Regularly examine your roof and replace loose shingles, tiles and slate. If your roof is more than 20 years old, you may want to have it inspected. Replacing your roof may lower your premiums.

p

Beware of flying objects. Move any loose items from your yard that can become flying debris. Grills, patio furniture, bicycles, planters, garbage cans, etc. should be relocated to your garage or inside your home.

If it can’t be moved, strap it down.

p

You can’t be too secure. Check that doors and sliding glass doors are secure. Not only will you help ensure that doors stay closed tight in a heavy wind, but simply having a solid exterior door and secondary locks on sliding doors make good sense.

p

damaged. You’ll want enough coverage to pay to rebuild to the same specifications and quality you have now. p

You’ve gotten married or taken in an aging parent.

Merging households? Consider who has the best insurance, suggests the Insurance Information Institute. Be sure to think about what bringing together your belongings means to your insurance needs, too. All those wedding gifts and precious heirlooms should be covered. p

You’ve had other life changes. Getting divorced, moving in with someone, having children or changing employment are all good times to reevaluate your coverage. You may need to adjust your policy or deductible, or find you don’t need as much coverage as you did before. p

You’ve received major gifts. The big-screen TV or jewelry you got for your birthday or the amazing antiques you inherited from a dearly departed relative may require additional insurance.

Act like a Boy Scout. Know how and be prepared to turn off the power and water in the event of a storm to avoid voltage irregularities, which can damage your computer, TV and other electrical appliances.

p

p Don’t forget the “haircuts.” Keep trees and shrubs around your home well trimmed. Remove damaged or dead limbs, especially those over your home. While you’re at it, make sure gutters are properly secured and free of debris that can prevent proper drainage.

p

p

Nothing wrong with a lock box. Keep important papers, including insurance documents, deeds and titles, in a safe or waterproof container that you can grab quickly in case you need to evacuate.

Now that you’ve taken care of your home’s exterior – and in relevant places the interior – it’s a good time to assess your homeowners insurance needs.

You’ve made home security or disaster-proofing improvements. Adding storm shutters, reinforcing your roof or adding burglar alarms can all make your home more secure – and may result in a reduction in your premiums.

You’ve realized some of your items aren’t worth what they used to be. Everything from electronics to fur coats can lose value over time. If you haven’t made any major purchases lately, accounting for the depreciation of these items may help you save on your policy.

If you have questions about what steps you should take with regard to any of the above suggestions, the NC Association of REALTORS® suggests you contact your insurance carrier.

Keep in mind that your insurance needs likely will change if the value of your home or possessions changes.

Such a change can be influenced by any number of factors, and here are a few in particular that are worth keeping your eye on:

And if you’re looking for a carrier or perhaps are seeking a change, consider Nationwide, a proud member of NCAR’s Partner Program. As a NC REALTOR®, you’re entitled to special discounts with Nationwide. v

p

To learn more, contact Chris Copley at Nationwide (copleyc@nationwide.com) or Sara Beth Coggin at NCAR (sbcoggin@ncrealtors.org).

You’ve made improvements to your home. Adding a new kitchen or roof adds to the value of your home. It also increases the cost to rebuild your home if it’s ever

I N S I G H T M a y / J u n e 2012

25

E N D

N O T E S

Inside the Industry – Beyond Murphy to Manteo ‘Storm Scammers’ are Preying on Homeowners

California Lawmakers Oppose REO Program

Following a violent storm or tornado, homeowners are left to pick up the pieces and find ways to put their homes back together. And insurance executives and legislators are warning storm victims to beware of contractors who try to get home­ owners to sign costly contracts before the insurance adjusters arrive. These insurance executives are being dubbed “storm chasers” or “storm scammers” who offer quick, costly deals to desperate homeowners, according to the USA Today. As a result, several states have already passed legislation to protect home­ owners after storms.

About 20 California congressional lawmakers have joined forces to urge the Federal Housing Finance Agency to not conduct a real­estate owned (REO) pilot program in the state, arguing that it would harm the state’s housing recovery. The FHFA launched an REO sales program in February, in an attempt to unload the high inventory of foreclosures held by Fannie Mae and Freddie Mac through bulk sales to investors.

California holds the highest number of Fannie Mae’s REO inventory, with nearly a quarter of its REOs located in that state alone.

Couple Gets Spooked From House, Sues Landlord

HUD: Pregnant Women Reimbursed by Banks

A Toms River, N.J., couple is suing their landlord, claiming the home they are renting is haunted. The couple – which moved out of the house a week after moving in – says they heard voices inside the home and that they witnessed flickering lights, clothes flying from closets, doors opening and closing, and “taps on the shoulder,” according to ABC News. The couple says they hired paranormal investigators who recorded some of the activity from infrared cameras. The couple is suing their landlord in New Jersey Superior Court, seeking the return of their $2,250 security deposit.

The Department of Housing and Urban Development announced that two banks will reimburse women over allega­ tions that the banks denied the women mortgages because they were pregnant or on maternity leave. Magna Bank has agreed to pay one woman $14,085 over allegations it allegedly required her to return to work before agreeing to approve her mortgage application. Home Loan Center also has agreed to pay a woman $15,000, stemming from claims that the bank denied her refinancing application because she was on mater­ nity leave, HUD announced.

Canadian Agents Call for ‘Drug House Registry’

A Year Later, Still No Suspect in Agent Murder

A group of Canadian real estate professionals located in the Saskatchewan province are calling for the creation of a housing registry that lists homes once linked to drug use. According to the agents, buyers need to be warned about homes formerly used as meth houses, marijuana growing operations, or having other such criminal pasts. The real estate agents say it is their responsi­ bility to warn buyers about such homes, but details can be missed — particularly as homes change hands multiple times.

Police continue to look for a suspect and search for more clues in the killing of a 27­year­old, West Des Moines, Iowa, real estate agent in a model home nearly a year ago. Police announced recently that a reward has doubled for clues lead­ ing to an arrest, increasing from $75,000 to $150,000. Police said in a statement that they hope the increase in the reward amount will encourage someone to step forward with more information. Ashley Okland, an agent with Iowa Realty Co., was found shot at a model townhome on April 8, 2011. Since then, police have investigated more than 700 leads but have made no arrests in the case.

Man Gets 75 Years in Prison for Agent Assault A Great Falls, Mont., man was sentenced to 75 years in prison after pleading guilty to sexually assaulting a real estate agent last spring while he posed as a buyer as the agent showed him a home. The judge, calling the crime a “heinous and terrify­ ing event,” passed down one of the strictest sentences, saying the evidence overwhelmingly showed Bradley Joseph Crisman’s crime was premeditated. Prosecutors showed during the trial that Crisman had profiled six female real estate agents in the area and had posed as a homebuyer in several incidences before assaulting one agent a few months later.

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I N S I G H T May/June 2 0 1 2

More Real Estate Associations Join Forces More local REALTOR® associations already have, or are increasingly weighing, consolidation of their groups into one larger association as a way to maximize benefits for members and decrease operating costs. Associations in Chicago last year – the Mainstreet Organization of REALTORS® and the REALTOR® Association of NorthWest Chicagoland – merged to form the fourth­largest REALTOR® association in the coun­ try. Earlier this year, more REALTOR® associations teamed up

and two more real estate boards in Northeast Ohio are reportedly considering a merger, the Cleveland Area Board of REALTORS® and the Akron Area Board of REALTORS®.

dent and CEO of Better Homes and Gardens Real Estate.

More Homeowners Weighing Strategic Default?

Real Estate Ads ‘Hijacked’ Online in Scams Scammers are increasingly taking actual online listing ads of homes for sale from real estate agents’ sites and reposting them on sites such as CraigsList as rentals, duping a growing number of renters. Usually scammers repost the for­sale listing as a rental and ask would­be renters to wire a deposit and advance rent to secure the rental. The scammers usually claim they can’t be met in person because they are out of the country working as mis­ sionaries. They also sometimes tell the would­be renters that the real estate agent who was handling the property was fired so they should disregard any signs posted in front of the house with the agent’s information.

First-Time Buyers Become Reality Stars Better Homes and Gardens Real Estate has launched a new online and TV reality series starring first­time homebuyers on the house hunt. The series, “Home, First Home,” launched online at YouTube recently. It will also air nationally on the syndicated show “The Better Show” in 150 markets across the country until June. The series offers viewers an “opportunity to share in the joy of purchasing a home, while learning about the many steps involved in achieving this milestone,” says Sherry Chris, presi­

Nearly half of homeowners recently polled in an online survey said they would walk away from their mortgage if home prices continued to fall. The poll included 1,000 visitors to HousingPredictor, a real estate website. While the poll is unsci­ entific, some housing experts have questioned whether home­ owners are starting to grow more accepting of the strategic default idea. Strategic default is when homeowners walk away from their mortgage obligations, despite being able to make their payments.

2 MLSs Sue Over Agent Performance Scores Two regional multiple listing services are suing NeighborCity.com, a real estate search site, alleging the website is violating copyright laws by using agents’ data without their permission. NeighborCity.com recently had begun assigning performance scores to real estate agents, based on the number of properties they’ve sold, the number of days their listings have spent on the market, and the difference between the final sales price and asking price. But several agents aren’t happy about the performance scores. MLSs in Rockville, Md., and NorthStar MLS in St. Paul, Minn., have filed separate lawsuits in federal court against the operator, American Home Realty Network, saying the info is being used without permission. v

The North Carolina Association of REALTORS® Would Like to Thank Our Sponsors...

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Silver American Home Shield America’s Preferred Home Warranty, Inc CoreLogic MarketLinx

PEMCO, LTD. Piedmont Natural Gas zipLogix

I N S I G H T M a y / J u n e 2012

27

C L O S I N G

T H O U G H T S

BY ANDREA BUSHNELL EXECUTIVE VICE PRESIDENT

Make No Mistake, Real Estate Matters REAL ESTATE MATTERS. AS THE MARKET COLLAPSED AROUND US, IN ALL CORNERS OF AMERICA, THE COLLECTIVE AND AUDIBLE SIGH OF AMERICANS’ FIRST EXPRESSING DISAPPOINTMENT AND THEN FEAR WAS HEARD AROUND THE WORLD AND REFLECTED IN THE ECONOMIES OF COUNTRIES FAR AND WIDE. IT SEEMED AS THOUGH THE CONFIDENCE OF AMERICANS, THAT UNSHAKEABLE CERTAINTY THAT WE LIVE IN THE ULTIMATE “LAND OF OPPORTUNITY” WHERE ANYTHING IS POSSIBLE, SUDDENLY DID NOT SEEM SO “UNSHAKEABLE.” But many of us have previously worked through real estate downturns (albeit not as significant or as long as this down­ turn). Many of us also confidently proclaimed that we would collectively pull out of this slump … eventually. But, secretly, some among us were starting to wonder if we were perhaps wrong this time. It now appears, in true American form – in true REALTOR® form – that we are starting to pull ourselves out of this slump by our proverbial bootstraps.

During the last week of April in a Wall Street Journal article titled “Stunned Home Buyers Find the Bidding Wars are Back,” Ivy Zelman was quoted as saying: “We very much believe we’ve hit bottom.” This is particularly important because Ms. Zelman is a preeminent housing equity analyst who first predicted the housing bust in 2005. This is also important because it indicates that buyers are slowly coming back into the marketplace. The fact that “now is a good time to buy” is not lost on most people. Fear, evidenced by the general lack of consumer confidence, and seemingly insurmountable, paralyzed many potential buyers. Eventually, however, prices dropped low enough to help buyers overcome that insurmountable fear.

So, if we have hit bottom, as declared by Ms. Zelman, there is only one way to go.

The signs are all lining up for a recovery. Inventories are shrinking, investors have returned – with cash. Mortgage money is historically inexpensive and becoming a bit more available. And unemployment is down, which means that mortgage delin­ quencies will drop. Short sales are now more common than foreclosures. Qualified buyers who have chosen to rent are now paying higher rents as the result of a flood of families who lost their homes through foreclosure entering into the rental pool.

Those same qualified buyers are now looking at buying as a less expensive alternative. And, most important, owning real property is still the American Dream.

Last fall, NCAR conducted focus groups of North Carolinians, selected randomly in the Winston­Salem market. The par­ ticipants expressed a lot of angst over the economy. Several of the participants had either lost their home or knew a family member or friend who had lost their home. In spite of this negativity as a backdrop, they were united in one ideal: If they had the ability and if they knew how to access the market, they would buy property – homes, vacation homes, rental or investment property. What an amazing opportunity for members! Once I heard the focus group participants’ deep commitment to owning real property, I knew that we would ultimately find our way out of the morass of failing consumer confidence and tumbling prices. Americans have taken a deep, collective breath and our economy is starting the long road back to health and prosperity.

So next week, on May 17, I will be proudly standing with thousands of REALTORS® and association staff members next to the Washington Monument. As President Baldwin would say, we will be in the “arena” together, fighting to keep the American Dream alive. This is a cause that I can and always will rally around. I hope to see many of you there because real estate does, indeed, matter.

Committee Requests Now Being Accepted Are you interested in giving of your time and talents to serve on a NC Association of REALTORS® committee in 2013? If so, keep in mind that requests are now being accepted but only through Aug. 31.

Interested members can access the online committee request form on our website (www.ncrealtors.org).

On the left toolbar, click on “Committees, Groups & Boards.” From there, in the gray box on the right, click on “Make Committee Assignment Request.” That’s all you have to do!

If you would like additional information regarding the 2013 NC REALTORS® committee selection process, please get in touch with Donna Peterson at 336-808-4221 or dpeterson@ncrealtors.org.

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