Insight | September - October 2008

ISSUES ADVOCACY

SEPT./OCT. 2008, VOL. 87 NO. 2

www.ncrealtors.org

THE FORMS GUY

GOVERNMENT AFFAIRS

PRESIDENT’S MESSAGE

By Wendell Bullard President, NC Association of REALTORS®

Discourse Makes Us Better in Long Run

I

t’s been an interesting couple of months, hasn’t it? On June 10, following the recommendations of a special Presidential Advisory Group and the Executive Committee, and after several public forums, the NC REALTORS®’ Board of Directors approved an annual dues increase and one-time assessment.

With more than 43,000 members, we knew that not everyone would agree with the decisions of the BOD, particularly given the current real estate climate in which we’re all operating. If you were in a room with just 43 of your peers, would everyone agree on anything, even under the best of circumstances? Probably not.

So sure enough, just as the sun rises in the east and sets in the west, when the local associations began billing for the assessment in early July, some questions arose. Is the Issues Mobilization Fund not just another name for a Political Action Committee (PAC)?

Was all of this legal? And why now?

I was happy to provide answers, as were Sandra O’Connor, our president-elect, as were members of the Executive Committee and the Board of Directors, as were our local association executives, and as was our staff. The first two questions have simple responses: No, the IM Fund is not used to support political candidates and thus is not a PAC; and yes, we absolutely operated within all state laws and our bylaws.

The “why now” question was more emotional, and understandably so. REALTORS® are notearning what we earned a few years ago, although most of us realized that a market correction wascoming. At the same time, we did seepolitical attacks on real estate coming, justnot at this breadth and scope.

Overall, I’ve been amazed at the outpouring of support. As of this writing, the BODs of nine local associations have voted to pay the full assessment for their members. Another has voted to pay half of the assessment. Two MLSs have waived their August fees to help defray the cost of the assessment to their members. And eight local associations have voted to contribute their $1 per member collection fee to the Issues Mobilization Fund. We thank you all!

There’s another positive from the past couple of months, and that’s the input of more of our members. We encourage you to get involved in REALTOR® leadership. We’ll all be stronger and better for it.

Wendell Bullard

of 8:30 a.m. to 5 p.m. at 800-443-9956 or via email using the person’s first initial and last name@ncrealtors.org. (For example, Tim Kent’s email address is tkent@ncrealtors.org.) Our fax number is 336-299-7872.

Bill DePriest Chief Operating Officer Denise Daly Membership Records Coordinator/Bookkeeper

INSIGHT

Cady Thomas Director of Regulatory Affairs

Amanda Johnson Accounting Assistant

Barbara Mathis Communications Specialist

Phyllis Lycan Accountant

Legislative Rick Zechini Director of Government Affairs

Marketing and Business Development Anne Shoemaker Director of Marketing and Business Development

Jennifer Robson Professional Development Assistant

Katie Sopcik Assistant Director of Marketing and Business Development

Legal Will Martin General Counsel

Kristin Miller Marketing Specialist

Monica Huckaby Legal Assistant

Professional Development Chris Rhodes Director of Professional Development

Events Mandy Lowe Events Director

Communications Kevin Brafford Director of Communications

Pam Haire Director of Leadership Development

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Samantha Ashburn Web Site Coordinator

Loretta Moody Receptionist

Diane Greene Director of Community Outreach

Ellie Darling Professional Development Assistant Director

Sherry Harris Administrative Assistant

Donna Peterson Executive Assistant to the EVP

Nicole Garner Administrative Assistant/ Realfast Support

PRESIDENT Wendell Bullard, Durham PRESIDENT-ELECT Sandra O’Connor, Greensboro TREASURER Tom Barton, New Bern IMMEDIATE PAST PRESIDENT Danny Brock, Wilmington REGIONAL VICE PRESIDENTS Ernie Wilkinson, Atlantic Beach, Region 1 Sandy Hurst, Jacksonville, Region 2 George Laney, Wilmington, Region 2 Ashley Barker, Greenville, Region 3 Fen Adcock, Durham, Region 4 Pam Hill, Southern Pines, Region 5 John Newman Jr., Greensboro, Region 5 Lou Baldwin, Winston-Salem, Region 6 Sheila Rudisill, Lincolnton, Region 7 Glenda Wilson, Lenoir, Region 8 John Byers, Charlotte, Region 8 David Barnhardt, Charlotte, Region 8 Russell Wood, Asheville, Region 9 Donna Parker, Cary, Region 10 Tom Smith, Raleigh, Region 10 EXECUTIVE VICE PRESIDENT Tim Kent EDITOR Kevin Brafford ASSISTANT EDITOR Barbara Mathis ADVERTISING MANAGER Kristin Miller BUSINESS OFFICE NC Association of REALTORS® Inc. 4511 Weybridge Lane Greensboro, NC 27407 Phone: (336) 294-1415 Toll Free: (800) 443-9956 Fax: (336) 299-7872

Insight (USPS 017602) is published bi-monthly by the NCAR Management Corp., 4511 Weybridge Lane, Greensboro, NC 27407. Member subscriptions of $2.89 are covered by annual membership dues. Periodicals postage rates paid at Greensboro, NC. POSTMASTER: Send address changes to Insight; 4511 Weybridge Lane Greensboro, NC 27407.

Contact Us: NC REALTORS® staff can be reached Monday through Friday during regular business hours

Administrative Tim Kent Executive Vice President

Volume 87, Issue 4 NC Association of REALTORS® Inc. Chartered in 1921

Julie Woodson Director of Public Affairs

Sept./Oct. 2008

David McGowan Political Specialist Mary Catherine Green RPAC Manager Rebecca Sweeney Governmental Affairs Assistant

Keri Epps Meeting Planner

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Insight Sept./Oct. 2008

IN EVERY ISSUE 2

President’s Message

6

Editor’s Desk

6

By the Numbers

7

Events Calendar

8

Five Minutes With ...

16

Inside NC REALTORS®

42

REALTORS® Partner Program

46

End Notes

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Closing Thoughts

Cover Story

All roads lead to Charlotte as more than 1,000 members of the real estate industry are expected to convene in the Queen City for the 2008 Convention & Expo.

Features 22

Adhering to the Code There’s no time like the present to brush up on NAR’s Code of Ethics. They’re your safety net, regardless of market conditions.

38

Wake Up Your Office!

Creating excitement in your workplace and increasing productivity can be achieved more easily than you might think.

Departments 10 20 26 28 34 36 40

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Leadership Development Government Affairs Issues Advocacy Elections – Candidate Biographies Housing Opportunity The Forms Guy Realfast

EDITOR’S DESK

By Kevin Brafford Editor

Lobbying Efforts in Raleigh Recognized

S

ince sometimes it’s OK to toot your own horn, allow me to crank it up, so to speak, for a few minutes on behalf of the unprecedented impact that NC REALTORS® have within the halls of the North Carolina General Assembly.

In late August, the N.C. Center for Public Policy Research released its biennial rankings of the state’s Most Influential Lobbyists. John McMillan of the law firm Manning Fulton represents our interests and was ranked second (contract lobbyist Roger Bone was No. 1). Executive Vice President Tim Kent and Government Affairs Director Rick Zechini ranked 11th and 12th, respectively.

The rankings are based on surveys of all legislators, registered lobbyists based in North Carolina, and the capital news media. “The rankings of the most influential lobbyists help citizens understand which key interests and organizations have clout with legislators in North Carolina,” says Ran Coble, the center’s

The numbers tell the story.

71 percentage of homebuyers and sellers that were completely satisfied with their real estate agent, according to a recent Consumer Reports survey.

72 percentage of respondents who believe their primary home value has remained constant or increased in value over the last 12 months.

126 percentage increase in FHA loans during the first quarter of 2008, compared with the same period a year ago.

20,000, the estimated number of miles a REALTOR® typically drives in a given year, according to Inman News.

12.2 in millions, the projected population of North Carolina in 2030 (according to the U.S. Census), more than a 35 percent increase from 2007.

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executive director. “The rankings shed light on what is often an invisible process. They also show changes in the lobbying profession and illustrate which issues were the hottest.”

To reiterate, three of the 12 most effective registered lobbyists in the state represent the interests of our more than 43,000 members. While McMillan, with more than 35 years of experience, has been a fixture in the top 10 of the rankings, NC REALTORS®’ next most influential lobbyist in 2006 was Stephanie Simpson, who ranked 33rd.

Another plus for us: McMillan soon will become even more visible. On Oct. 23, he’ll take the reins as the 2008-09 president of the N.C. State Bar Association. “We congratulate John on this honor,” says Kent. “He continues to do a terrific job looking out for our industry, and I’m sure he’ll do likewise on behalf of his peers. We’re fortunate to have him on our side.”

EVENTS CALENDAR

Key Dates in the Coming Months September 25

CRS 103

Wilmington

October 7-8

CRB: Financial Planning & Management

Charlotte

October 5-8

2008 Convention & Expo

Charlotte

October 20-23

GRI 100

Raleigh

October 23

CRS Ninja Selling

Raleigh

November 5-10

NAR Convention & Expo

Orlando, Fla.

November 13-14

CRS 210

Greensboro

November 17-20

GRI 200

Asheville

December 8-11

GRI 300

Charlotte

December 8-9

Vision Quest

Pinehurst

December 11

CRS 103

Charlotte

January 20-23

2009 NC REALTORS® Inaugural Meetings

Greensboro

January 20-23

GRI 300

Greensboro

February 9-12

GRI 100

Charlotte

March 9-12

GRI 200

Raleigh

April 20-23

NC REALTORS® Legislative Meetings

Raleigh

May 11-16

NAR Midyear Meetings

Washington, D.C.

Sept./Oct. 2008

INSIGHT

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FIVE MINUTES WITH ...

Name:

Ross Rhudy

Location:

Raleigh

Firm:

Ammons Pittman GMAC Real Estate

Local Association:

Raleigh Regional Association of REALTORS®

My father let me paint my tricycle lime green when I was 3 years old. I wanted it to be green so badly, and he let me do it all by myself. I don’t remember if I made a huge mess, but I’m sure I did. In Southern California at the time, my tricycle looked really good.

My two sons ride dirt bikes partly because I’m reliving a childhood dream of mine. The other reason is a deal my wife and I have with them. When they begged to start riding motorcycles, we said we would let them ride dirt bikes if they promised to never, ever ride a street bike. To us, dirt bikes are much safer than street bikes and this was our way of preventing them from riding those types of bikes. They have talked about how cool street bikes are, but they know they can’t get one, ever.

executive, a provider for the family, and a self-made man. He often told me to always save for a rainy day.

At the time I didn’t really pay attention, but that advice has served me well for many years now.

When I was younger, I loved the beach. The older I get, the more I like the mountains. They’re very tranquil and the clearness in the air is refreshing. I would love to own property in the mountains of North Carolina one day.

ontana

Ross Rhudy and family in M

We left Southern California when the hippie movement was in full swing and I was still a small child. My parents had lived in Raleigh previously, right after they got married, and when my dad got a job offer, they were thrilled to get to move back to North Carolina.

I know now that I’m truly a Raleigh boy. About four years ago, I decided to take a chance and moved my family to Charleston (S.C.). It’s a beautiful, wonderful place, but we realized that it just wasn’t home – Raleigh is home. We moved back after only a year and a half.

My father was capable of doing anything – he built his home with his own hands. He was a business

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I’m a hopeless romantic for a sunset. Wherever I am, whatever I’m doing, I will seek out a sunset and watch it. I’m actually a very sentimental person, particularly when it comes to nature, wildlife and the outdoors. I try to spend as much time outdoors as I can. I love observing wildlife.

Call me the weekend chef at my house. I love to grill, especially my barbecue baby-back ribs. I have perfected a recipe over the last 20 years that I now share with friends because the ribs are so good. The meat literally falls off the bone.

I decided about two years into college that I was going to do real estate. Just from watching my father, who invested in real estate, I thought it was really neat that you could make money buying and selling properties. So, when I was an undergraduate at East Carolina University in the business school, I also attended the community college at night and received my broker’s license when I was 20 years old. I’m unusual in that residential real estate is the only thing I’ve ever done in my life.

LEADERSHIP DEVELOPMENT

By Pam Haire Director of Leadership Development

Do You Have What It Takes to Lead?

N

othing happens automatically in the real estate industry. The same is true for the North Carolina Association of REALTORS®. It takes committed, hard-working individuals to keep the association moving in a positive direction and responding to the needs of the more than 43,000 REALTORS® who call North Carolina home. The individuals who tackle these massive tasks are the leaders of the NC Association of REALTORS®.

From where do these leaders emerge? What fuels their fire? How do they develop the knowledge, experience and vision required to be a successful leader? And most important what lies ahead for the NC Association of REALTORS® and our quest to meet the future needs of our members?

These questions all have the same answer – leadership development. Recognizing that leadership development is an essential element in the process of improving our association and profession, NC Association of REALTORS® implemented a program called LeadershipNCAR, now known as the NC REALTORS® Leadership Academy.

After seven dynamic years of the NC REALTORS® Leadership Academy, the experience has been consistently rated a success. Applications are now being accepted for the Class of 2009. This rigorous leadership development program is an effort to identify emerging REALTOR® leaders from across the state, encourage them with motivational activities and “While currently serving as assist in sharpening President for NCAR in 2008, I’m their leadership skills able to look back to 2002 while so that they will in the NCAR Leadership exert a strong, posiAcademy and reflect upon the bonds of friendship and support tive influence on the future of the NC that help me today. Leadership Association of REALis teamwork, and teamwork is TORS® and the real leadership. We are as effective estate profession. as the team we work with.”

The participants Wendell Bullard, GRI work together in an Class of 2002, Durham intense training course that combines individual study, group sessions and actual project experience. Training sessions will take place in a variety of learning environments and participants will experience an educational process much different from any CE or designation classes. The curriculum includes activities designed to help identify individual leadership skills, team-building exercises and instruction on goal-setting procedures, network building and how to improve communication

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skills.

Applications are “The Leadership Academy allowed me to look inward and now being accepted learn more about myself and the for the Class of way that I think and function.

2009. A select comWith that knowledge, I have mittee of NC been able to learn new ways to Association of REALrespond to other people and sitTORS® members will uations with more confidence review applications and understanding. In turn, the and name 12 partici- program has made me a better pants for the 2009 leader.” class. Efforts will be made to balance par- John Wood, GRI ticipants according to Class of 2007, Cary business specialty, geography and gender.

Each participant selected for the program will be required to pay a one-time tuition fee of $500.

Attendance at all workshops is mandatory, and the NC REALTORS® Leadership Academy will provide training sessions, overnight accommodations for four retreats, meals and instructional materials. Interested individuals should submit applications directly to NC Association of REALTORS® no later than Monday, Sept. 29, 2008.

For more information about the NC REALTORS® Leadership Academy, please contact Pam Haire at phaire@ncrealtors.org or 800-443-9956, ext. 237.

How to Apply for the Class of 2009 To obtain an application, please log in to the member portion of the Web site, www.ncrealtors.org and click on “Leadership Academy.” Applications may also be obtained by contacting phaire@ncrealtors.org.

Applications should be returned to NC Association of REALTORS®, 4511 Weybridge Lane, Greensboro, N.C. 27407. The application deadline is Monday, Sept. 29.

Tentative Schedule for NC REALTORS® Leadership Academy Class of 2009 Vision Quest – Dec. 8-9, 2008, Pinehurst Resort, Pinehurst Retreat 1 – Feb. 9-10, 2009, Greensboro Retreat 2 – April 6-7, 2009, Lake Hickory (Conover) Retreat 3 – June 18-19, 2009, Chapel Hill Retreat 4 – Aug. 5-6, 2009, Greensboro Graduation – At NC Association of REALTORS® Annual Convention, Sept. 27-30, 2009, Savannah, Ga.

It’s That Time Again 2008 Convention & Expo Comes to the Queen City

By Kevin Brafford

T

here perhaps has never been a more important or timely NC REALTORS® Convention & Expo than the 2008 edition that takes place in uptown Charlotte next month.

“Given the real estate climate that we’ve all lived through this year, it is extremely important to continue your education efforts, professional development and learn best how to market yourself in these challenging times,” says Wendell Bullard, 2008 association president.

“On Oct. 5-8 at the Charlotte Convention Center, you’ll be able to do just those things.”

And there’s more, Bullard notes. “Our speakers and entertainment promise to be top-notch, as always. We’ll work and we’ll play hard. And maybe best of all, you’ll be doing so with your peers, so the networking opportunities are tremendous.”

If you haven’t registered, Bullard encourages you to do so. It’s simple: Just visit www.ncarconvention.org or call the NC Association of REALTORS®’ office at 800-4439956 for more information. You can also register via fax or telephone by using the form on Page 13. But here’s what you need to remember: No pre-convention registrations will be accepted after Friday, Sept. 26, so please act quickly. (You will, however, be able to register onsite, for the entire convention or just daily, in Charlotte during registration hours.)

There’s something for everyone on the schedule, ranging from a first-time attendee’s orientation and reception to the special-invitation Silver Service Luncheon that honors REALTOR® members of our association of 25 (continued on page 14)

SPECIAL GUEST WILLIAM MANGUM Popular NC artist William Mangum has created an original painting to celebrate the NC REALTORS® Convention & Expo. Special prints will be given to attendees as keepsakes and Mangum will hold a signing event in the Expo hall Sunday at Convention! (Prints available while supplies last.)

Visit www.ncarconvention.org for details.

‘WORLD’S TOP-FIVE SPEAKERS’ AWARDWINNING KEYNOTE SPEAKER Les Brown inspires people to shake off mediocrity and live up to their greatness. He is a renowned professional speaker, author and television personality.

20 0 8 R EG I ST RAT I O N FO R M

OCTOBER 5-8, 2008

Use a separate form for each primary registrant. Spouse or guest may be listed on this form. Spouse or guest must be registered to attend any convention function. Registration rate is the same for member, spouse or guest. Please print.

Name*

Nickname

Spouse/Guest (If Registering)

Referred Member

Company Name Mailing Address City Phone REALTOR®

Check:

State

Zip

Fax

E-mail Address

Speaker

Board AE

First time attending convention

Guest/Spouse

Special Services: Do you have any needs which require special accommodations? Please identify: *Upon receipt of your paid registration, we will post your name to a roster of convention attendees at our website www.ncarconvention.org. If you do not wish for your name to be posted, please check here.

Registration Fees

EARLY BIRD** 8/29 $200 $175 $150

Form & fees received by: Standard registration REALTOR® referral 1st time attendee

REGULAR 8/30-9/26 $220 $220 $220

ONSITE 10/5-10/8 $235 $235 $235

DAILY*** 10/5-10/8 $100 $100 $100

YOUR TOTAL $ $ $

**Early Bird rate only applies before August 29, 2008.

NO Registrations will be accepted after Sept. 26, 2008. ***Daily registration includes entire day’s activities, except for optional events. All meetings and events to be held at the Charlotte Convention Center unless noted.

Invite a REALTOR® Referral Program When you invite a REALTOR® who has never attended an NCAR Convention before, you will receive the special rate listed above. This rate only applies to the individual referring a first-time attendee, not their spouse or guest. To qualify for this rate, the registration forms for the first-time attendee and referring member must be submitted together, with the name of the first-time attendee indicated on the referring member’s form. The “Invite a REALTOR® Referral Program” will be available until August 29, 2008 to the first 200 members who refer a first-time attendee. Credits will not be applied after registration has been submitted.

Golf Tournament Spouse/Guest must be registered for convention to participate in the golf tournament.

Golf Tournament registration and information form available at www.ncarconvention.org.

Silver Service Luncheon – Tuesday, October 7, 2008 12:15 pm-2:00 pm Member ($30) Spouse/Guest ($30)

Member name Spouse/Guest name

Total $ Total $ Total $

Payment (Must accompany registration) Check (made payable to NCAR) Card number Signature

Mastercard

VISA Exp.

3-Digit Security Code

Print name as appears on card

Billing Address

CHARLOTTE, NC The Westin Charlotte $159 per night YOU WILL RECEIVE A CONFIRMATION PACKAGE ONCE YOU REGISTER. HOTEL INFORMATION WILL BE INCLUDED IN YOUR PACKAGE.

Same as above Convention Registration Refunds & Cancellations: Receive full refund, less $20 per person processing fee, if cancellation is postmarked by September 13, 2008. Due to contract obligations, cancellations must be in writing and mailed or faxed to NCAR. Cancellations will NOT be taken over the phone. No refunds will be given after September 13, 2008.

Policies: (1) All participants attending any event connected with the NCAR 2008 Convention & Expo must be registered for the meeting and have paid the registration fee. Liabilities insurance requires every attendee be registered.

(2) Transfer of registration is not allowed under any circumstance.

(3) Registrations will NOT be accepted by telephone.

Return your completed form by mail or fax, with a check or VISA/Mastercard number.

Fax or Mail this registration form to: North Carolina Association of REALTORS® 4511 Weybridge Ln. Greensboro, NC 27407 Fax: 336-299-7872 e-mail: ncar@ncrealtors.org

Questions: Call 800-443-9956 or visit www.ncarconvention.org For NCAR use only Reg.# Date Referring Staff

WWW.NCARCONVENTION.ORG

years or more. Your $220 pre-convention registration fee covers most convention program activities. (For a complete schedule of events, visit the convention Web site at www.ncarconvention.org.)

More than 20 education sessions from some of the most highly regarded experts in the country are in the offing, including those taught by Mathew Ferrara, Tom Lundstedt, Drexanne Evers, Bob McComb, Mel Black and Bill Gallagher. And if you’ve been in the business for only a few years, you can attend classes specifically targeted to your needs, such as “Six Great Ways to Build Your Business in 2009,” “Solidify Your Foundation,” and “Working With Investors Effectively.”

Sunday’s 6 p.m. opening session includes the presentation of REALTOR® of the Year, plus a keynote speech delivered by the award-winning Les Brown. Named one of the world’s topfive speakers by Toastmasters International, Brown inspires listeners to shake off mediocrity and live up to their greatness.

But you’ll want to arrive long before Brown takes the stage.

Sunday afternoon in the Expo hall, amid more than 140 exhibitors, will be popular North Carolina artist William Mangum. As you likely have heard, Mangum has been commissioned to create an original painting commemorating the 2008 Convention & Expo in Charlotte. Prints of his work will be given to attendees (prints available while supplies last) at registration, and Mangum will hold a signing event on Sunday afternoon.

“This unquestionably is a special treat for attendees,” says Tim Kent, the state association’s executive vice president.

“William Mangum is truly North Carolina’s artist. He’s produced more than 3,000 original works of watercolor art in a career that’s spanned more than 30 years. This is the first year of a three-year agreement for Bill to mark our conventions with his special talent, and we’re extremely excited.”

Following Les Brown’s address on Sunday night is the opening reception and concert – featuring the Marshall Tucker Band – sponsored by the Charlotte Regional REALTORS® Association.

And that’s just the beginning of the entertainment. You can cozy up at the Sinatra Experience lounge and martini bar, and you can kick up your heels at the always popular dance party, where members will be entertained by the band Big Swing & The Ballroom Blasters.

Want more? There’ll be opportunities to be adventurous at the nearby U.S. National Whitewater Center, tour the kitchens at Johnson & Wales University, and play in our annual golf tournament, to be held this year at Ballantyne Resort.

Fun aside, the chief reason for coming to Charlotte is the investment you make in your career, according to Stephanie Dosier of Kill Devil Hills. “The NCAR Convention has been one of the most rewarding experiences of my career,” she says. “The education is priceless, and I have met many wonderful people throughout the state and been able to learn from their experiences. When you go to our state convention you see right away the difference between a real estate agent and a REALTOR®.”

So why not join hundreds of REALTORS® from across the state for uptown business, superior education, a sophisticated Expo, and downtown cool? Visit www.ncarconvention.org or call 800-443-9956.

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Remember ‘Teddy Bears on Patrol!’

There are more than 140 reasons to visit the Expo during the NC REALTORS®’ convention in Charlotte – that’s the approximate number of exhibitors that will be on hand.

But there’s another reason, and it gets to the heart, literally, of what the North Carolina chapter of the Council of Residential Specialists (NC CRS) is all about. It’s called “Teddy Bears on Patrol,” and it’s the NC CRS’s Chapter With a Heart program for 2008.

Here’s how it works: REALTORS® are encouraged to purchase a small teddy bear and take it to the CRS booth in the Expo during our time in Charlotte. All of the bears that are collected will be presented to a N.C. Highway Patrol colonel during the council’s general membership meeting.

The bears then will be shared with troopers and law enforcement officials, who will give them to young children who are involved in accidents and incidents around the state.

“We’re extremely proud to be sponsoring ‘Teddy Bears on Patrol,’ “ says Ronnie Thompson, the 2008 NC CRS chapter president. “We believe, without a doubt, that this is a program that will leave a lasting, positive impact on children at a time when it’s most needed.”

And should you happen to forget to bring a bear, don’t fret. Cash donations will be accepted, and chapter members will purchase a bear for every $10 that’s donated.

“If you can bring a bear, that’s great,” says Thompson. “If you can’t or you just forget, a cash donation is good, too. Either way, young children of North Carolina will benefit.”

Who Should Attend This program is for real estate leaders – brokers, owners, managers, and associates.

What It’s About These days, profitability for many real estate businesses is razor-thin.

This program delivers critical decision-making tools to focus on increasing profits while offering top-notch services. Real life examples and case studies show how these techniques can be smoothly integrated into the daily operation of your business. Discover how to set financial objectives to achieve superior performance.

What You’ll Learn 2-D Day CRB Course (Receive 3 CRB Credits) NCAR members can register online at www.ncrealtors.org

Instructor: Dates: Time: Class Fee: Cancellation Policy: Location: For More Information Contact:

Drexanne Evers (Master CRB Instructor) October 7-8, 2008 8:30 a.m. - 5:00 p.m. each day $475 ending at 5:00 p.m. on Sept. 23, 2008 $525 after after 5:00 p.m. on Sept. 23, 2008 $50 The Westin Hotel 601 South College Street, Charlotte, NC Chris Rhodes at 1-800-443-9956 or crhodes@ncrealtors.org

Understand three financial statements (the Income Statement, the Balance Sheet, and the Statement of Cash Flows) and use them to make efficient decisions to improve productivity and profitability.

Identify those factors affecting the value of a real estate firm.

Calculate your firm’s breakeven point and forecast future revenues.

Analyze the effects of operational changes to your firm’s bottom line.

Please Note: This course is being offered in conjunction with the NCAR Annual Convention, but you do not have to be registered for the Convention to take this course.

The Council of Real Estate Brokerage Managers is a not-for-profit affiliate of the NATIONAL ASSOCIATION OF REALTORS®. It awards the Certified Real Estate Brokerage Manager (CRB) designation to experienced REALTORS® who have completed advanced professional training.

“CRS members comprise just 4 percent of all REALTORS®. CRS Designees earn an average of $110,000 annually and nearly three times as much as the $37,300 that the average REALTOR® who sells real estate earns.”

E

arn your CRS in 2008 – right here in North Carolina!

The North Carolina Real Estate Educational Foundation, sponsors of the first and finest REALTOR® Institute in the nation, will offer three courses in 2008.

Basic Registration Fee per course is $300. *Early Bird Registration Fee per course is $275.

Audit Fee: If you already hold the CRS designation, you may audit an NCREEF CRS course for $200. *Early bird refers to registration applications received in our office at least two weeks prior to the course.

Building An Exceptional Customer Service Referral Business November 13-14, 2008

CRS 210

8:30am-5pm Greensboro *Grandover Resort and Conference Center Instructor: Franklin Serio

On-site registration ($350) is allowed, but not encouraged, due to material and space availability. Telephone registrations are not allowed. Cancellation requests must be in writing to the Administrative Director and must be received in the NCREEF office three working days prior to the start of the course. Fee for cancellation is $50. *For room reservations at the Grandover Resort and Conference Center, call 336-294-1800. For room reservations at the O’Henry Hotel, call 336-854-2000.

“The CRS Directory (42,000 designees) generates great referrals.”

– Bob de Camara, Boone

For a registration form, go to www.ncrealtors.org and click on Education & Events, or call 1-800-443-9956.

Sept./Oct. 2008

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INSIDE NC REALTORS®

Want to Learn About the New Disclosure Form?

T

he N.C. Real Estate Commission recently changed the rule regarding the disclosure of brokerage fees and other compensation earned by a real estate agent during a real estate transaction.

To help educate our members about this change, the NC Association of REALTORS® is offering a free video Webcast on Tuesday, Sept. 16 explaining the new rule and introducing a new disclosure form that has been developed to assist agents with compliance.

Members will have the ability to ask questions of the

panel and receive a direct response during the video Webcast, as time allows, from our three facilitators: Will Martin, general counsel for NC REALTORS®; Miriam Baer, assistant director of legal services for the NC Real Estate Commission; and George Bell, REALTOR® and president of G. Bell Productions, Ltd. Please mark your calendar for Sept. 16. More information, as it becomes available, will be included in the Realtor® Report, our weekly e-newsletter, as well as on our Web site (www.ncrealtors.org).

Alston, Jordan to Again Lead NCREC

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elvin L. “Skip” Alston of Greensboro and Marsha H. Jordan of Lincolnton have been re-elected to their N.C. Real Estate Commission leadership positions for the 2008-2009 term that began Aug. 1, according to Executive Director Phillip T. Fisher.

Alston, a member since 2003, returns as chairman. He is serving his fifth four-year term as a member of the Guilford County Board of Commissioners and was elected its first African American chairman in

2002. Alston serves as president and owner of the Alston Realty Group Inc. and is involved with several other business ventures and non-profit organizations.

Jordan, a member of the commission since 1999, is owner of Apple Realty in Lincolnton and is president of the N.C. Real Estate Education Foundation (NCREEF). A Certified Residential Specialist (CRS), she was honored in 2001 as REALTOR® of the Year by the Lincoln County Board of REALTORS® and is a graduate of the REALTORS® Institute.

Harnett Graduates from Leadership Academy

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onna Harnett, a REALTOR® with Coldwell Banker Ward & Misenheimer in Durham, recently graduated from the inaugural 2008 National Association of REALTORS® Leadership Academy. Also graduating was Stephanie Walker of Kill Devil Hills, who was recognized in the last issue of Insight.

“The National Leadership Academy was wonderful because you were exposed to a lot of differences – different markets, different board sizes, and different organizational setups,” says Harnett. “Some classmates were involved in commercial real estate and then some owned their own

companies. The relationships I formed have already opened so many doors and windows.”

Harnett has been involved in several capacities on the local, state and national level. On the state level, she has served on the Board of Directors, Forms Committee, and is a 2004 graduate of the NC REALTORS® Leadership Academy. She presently serves as an NCREEF Dean. Nationally, Harnett has served on the Communications Committee and the Equal Opportunity/Cultural Diversity Committee.

“The national organization has always been more of my focus – I love the big picture,” she says. “I’m always looking for ideas and suggestions that I can take back to the state or local levels. I will continue to be involved in whatever way I can.” (continued on page 18)

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INSIDE NC REALTORS®

Diversity Scholarships Available for Vision Quest

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re you interested in bringing more diversity to your local and state REALTOR® associations?

If so, you’ll want to apply for a Diversity in Leadership Scholarship to attend the Vision Quest leadership program on Dec. 8-9 at the elegant Pinehurst Resort.

Awarded by the NC Association of REALTORS® Equal Opportunity and Cultural Diversity Committee, scholarships provide up to $250 in financial assistance

to as many as five first-time attendees. Applicants should be REALTORS® who have not previously attended Vision Quest and who come from what they consider to be an underrepresented demographic group.

The application deadline is Oct. 17. For an application, visit the “Events & Calendar” section of www.ncrealtors.org or contact Diane Greene at 800443-9956 or dgreene@ncrealtors.org.

Sweeney Joins Staff as Government Affairs Asst.

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ebecca Sweeney, who served as an intern for the NC Association of REALTORS® in the summers of 2006 and 2007, has joined the staff in a full-time role as a government affairs assistant.

Sweeney graduated from Virginia Tech in May with an undergraduate degree in public communication. In her new role, she is responsible for providing support for all government affairs department projects and programs.

“We feel very fortunate to have Becca back with us in a full-time capacity,” says Rick Zechini, director of government affairs.

“She was invaluable in her two summers as an intern, and we expect great things from her.”

Sweeney replaces Emily Lynch, who left in late July to begin law school at the University of Miami.

De Camara, Willets Selected for NAR Academy

NC REALTORS® Habitat House in Gulf Now a Home

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ob de Camara of Boone and Patrice Willets of Wilmington have been selected for the 200809 National Association of REALTORS® Leadership Academy.

The Leadership Academy is a nine-month, fivestate training development program that is structured around national meetings and designed to groom future NAR leaders. Participants must make a financial and time commitment and are expected to complete a class project and various assigned readings.

Willets and de Camara are past graduates of the NC REALTORS® Leadership Academy. They were selected from a pool of qualified applicants nationwide. NAR’s Leadership Academy is entering its second year; it is also the second year in which two North Carolina REALTORS® (Donna Harnett and Stephanie Walker) were chosen for this prestigious program.

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I

n December 2006, a team of 18 NC REALTORS® spent a week in Slidell, La., picking up where more than 40 of our members had left off two months earlier in Raleigh: Contributing to Hurricane Katrina relief through the construction of new homes for the Gulf Coast region.

The project began at the N.C. Farmers Market on Oct. 3 that year with the framing of the walls for a house that was shipped to Slidell, La. When the NC REALTORS® delegation visited in December, it worked on several houses in Slidell and surrounding communities.

As of mid-August, 48 of the 54 homes have been completed, and the remaining six homes are expected to be finished by the end of September. The North Carolina home, which is pictured, was completed earlier this year and is occupied. Its address is 26170 E. Beech Street.

GOVERNMENT AFFAIRS

By Julie C. Woodson Director of Public Affairs

2008 Legislative Short Session a Success

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he NC General Assembly wrapped up its 2008 session on July 18 after dealing with several budget and substantive issues important to REALTORS®. With the election season looming for many of the legislators, they left town with no tax hikes and postponed action on several issues.

In fact, a bill that would have repealed the transfer tax authority given to counties in last year’s state budget stalled in the House Rules Committee. The House leadership would not let the bill be heard, even after it passed the Senate by an overwhelming margin.

“The fact that the bill passed the Senate by such a large margin is a strong statement,” says Rick Zechini, director of government affairs. Sen. David Hoyle (D-Gaston), who introduced the bill, argued that the bill should have been heard in the House and called the transfer tax “an unpopular and unfair threat to homeowners.”

Zechini says NC REALTORS® will continue to seek a repeal of this option during the next session of the General Assembly.

“The public has no appetite for a home tax that they would be forced to pay when they sell their home or property,” he says.

Another hot topic was the Coastal Stormwater Rules that had numerous ambiguities and flaws as originally written. Zechini, along with staff Political Specialist David McGowan, teamed with a working group of interested stakeholders to emphasize the negative implications these rules would have on the coast.

Ultimately, the NC Senate and House passed a bill titled Improve Coastal Stormwater Management that changed key points and language to make it less onerous for affected property owners. “This represents a victory for the rights of coastal property owners and housing affordability in eastern North Carolina, while ensuring environmental protections that are so important to maintaining the quality of life there,” Zechini says.

The NC REALTORS® lobbying team, which includes Zechini and Director of Regulatory Affairs Cady Thomas, also successfully pushed for more

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financial resources in the state budget for housing issues. The $21.4 billion budget plan allocates approximately $17 million for counseling and assistance to homeowners at risk of foreclosure; affordable housing for low-income citizens and those with disabilities; and legal assistance to homeowners impacted by predatory lenders or loan servicing abuse.

In the area of mortgage servicing, legislation was passed that made North Carolina the ninth state to require all persons who engage in the mortgage servicing business to obtain a license from the Commissioner of Banks. The legislation also holds mortgage servicers subject to similar rules and regulations as mortgage brokers and mortgage bankers.

“This legislation protects the state’s citizens by ensuring that all professionals in the mortgage service industry are held to high standards,” Zechini notes.

Steep slope legislation was not discussed by the state legislature this session. The bill introduced last year regarding the issue would have required local governments to more stringently regulate development in the mountain counties. The bill would have had many negative effects on homeowners, and many legislators from the mountain areas led opposition to the proposal saying it would drastically raise building costs.

One reason given for the bill not being heard was that a legislative study committee formed to consider the issue did not have a third and final hearing before the legislative session began. REALTORS® turned out in large numbers for the first two hearings held in the mountains earlier this year to comment on the inevitable problems with the proposed legislation. The state association will remain involved in any further discussion regarding steep slope regulations.

“This was an extremely successful legislative session for REALTORS® in North Carolina,” Zechini says. “We actively encouraged passage of legislation that would help protect private property rights and to promote housing affordability in North Carolina.

Simultaneously, we were able to stall proposed legislation that would have been very problematic for property owners in the state. There’s still a lot to be done, and we’ll continue to work on these and other issues when the legislature reconvenes in 2009.”

Adhering to the Code – It’s Your Safety Net Highest Ethical Standards Must Be Maintained

There’s no time like the present to brush up on NAR’s Code of Ethics

By Bridget McCrea

Few licensees would argue the need for ethical standards within their industry.Without such guidelines to follow, real estate agents and brokers would essentially be “working without a net,” or any recourse when it comes to fair business practices.

So why are some licensees challenged by the guidelines set forth in the National Association of REALTORS®’ Code of Ethics – a tome that all must learn as part of their initial and ongoing professional education? Perhaps it’s greed, or maybe they didn’t study the guidelines enough to know that one wrong move can put them in front of the state real estate commission’s review board.Whatever the reason, there are some simple ways to stay out of trouble and practice real estate in an ethical manner that puts the client first.

“True business professionals know that the Code of Ethics is always important to follow, regardless of market conditions or other variables,” says Deb Quaranta, Realtor with Intracoastal Realty in Wilmington and past president of the Wilmington Regional Association of REALTORS®. “The ones who are in it full time take it very seriously, and adhere to the code at all times.That’s what separates them from the rest of the bunch.”

The ABCs

At its simplest, Quaranta says the code spells out a rule that everyone should follow anyway: to treat others as they want to be treated. “Whether the market is up or down, it’s always important to follow the Golden Rule,” she says. “For licensees, that means adhering to the code.”

According to NAR, every association member must follow its “strict Code of Ethics,” which is based on professionalism and protection of the public.The Code of Ethics is a promise to the public that, when working with an NAR member, business will be conducted in an honest and ethical way in all transactionrelated matters. REALTORS® must take the Code of Ethics orientation, and they also are required to complete a refresher course every four years.

The code contains 17 articles and focuses on eliminating practices that could damage the public or discredit or bring dishonor to the real estate profession. REALTORS® with direct personal knowledge of inappropriate conduct such as the misappropriation of client or customer funds or property, willful discrimination, or fraud resulting in substantial economic harm, are required to bring such matters to the attention of the appropriate board or association.

Stumbling Blocks

While all 17 code articles are important – and come together to create a single guiding light for REALTORS® – there are a few areas where professionals tend to get into the most trouble. As NCAR’s professional standards chairman,Tom Hales points to Article 11 as one of the major stumbling blocks.The article states that the services provided by a REALTOR® to clients must conform to the standards of practice and competence that are reasonably expected in the specific real estate disciplines in which they engage – specifically, residential real estate brokerage, real property management, commercial and industrial real estate brokerage, real estate appraisal, real estate counseling, real estate syndication, real estate auction and international real estate.

The rule also states that REALTORS® should not provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of “one who is competent in such types of property or service, or unless the facts are fully disclosed to the client.”

Hales says the professional who is consistently engaged in residential real estate, but who has the opportunity to handle the sale of a commercial or industrial property, puts their license in jeopardy by getting involved with the latter. “The rules are completely different when handling commercial or industrial property,” says Hales, “and the licensee’s best move is to refer the business to someone who practices in that area, in exchange for a referral fee.”

Article 16, which states that REALTORS® shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other members have with clients, is another sticky area.The licensee who picks up the phone to answer transaction-related questions for a friend who is already working with another REALTOR®, for example, can quickly find herself in violation of this article. “It’s the wrong place to go,” says Hales, “particularly if the licensee gives out information without knowing all of the facts of the transaction.”

Finally, Hales points to Article 17 as yet another (continued on page 24)

challenging point for some licensees. In this rule, NAR states that in the event of contractual disputes or specific non-contractual disputes (as defined in Standard of Practice 17-4) between principals associated with different firms, arising out of their relationship as REALTORS®, members shall submit the dispute to arbitration in accordance with the regulations of their board or boards rather than litigate the matter.

A dispute over real estate commissions by two agents who both feel that they procured the sale, for example, should not go to the court system, but to a professional arbitrator. “Licensees have the right to go to court,” says Hales, “but if they file an action and it goes to court, the first thing a judge will do is refer it back to the local or state association for arbitration.”

Oops!

Many times, Pam Hill, broker-owner of Coldwell Banker United Realty in Pinehurst, says licensees violate the code of ethics unwittingly. In this information age – where the code is clearly posted on NAR’s Web site and is backed up by a number of courses and educational offerings designed to bring licensees up to date on the rules – there’s simply no excuse for such sloppiness.

“Some professionals would probably say that they were acting ethically in certain situations, but that they didn’t know the code,” says Hill. “There’s really no excuse for that.”

For example, NAR offers two online ethics training courses on REALTOR.org. Each course meets the specific criteria and learning objectives required for either new or existing licensees as established in its Statements of Professional Standards Policy (#47 – New Member Orientation Program, and #48 – Quadrennial REALTOR® Ethics Training, both found in the NAR Code of Ethics and Arbitration Manual).

Ultimately, adhering to the code is about using good judgment and common sense while doing business with other licensees and with the public as a whole.

“Re-read the code every year, paying particular attention to those portions that may have changed since you last looked at it,” advises George Bell, chairman of NCAR’s Information Management Advisory Group and owner of George Bell Productions in Winston-Salem.

“Then use that information to conduct business in the

most ethical way possible, regardless of what kind of market you’re working in.”

10 Ways to Adhere to the Code 1. Be suspicious and even a little paranoid. If a business dealing smells rotten or seems too good to be true, it probably is.

2. Don’t ever help clients or associates bend the rules. Instead, help them apply the rules to their individual situations.

3. Read all contracts carefully and learn how to fill them out correctly.

4. Remember that the average person buys and sells real estate just four or five times in their life, and as such they rely on you to help guide them through the process in an honest, ethical manner.

5. If what you’re doing doesn’t feel right, don’t do it.

6. Put yourself in your client’s shoes whenever you can and ask yourself, “Would I want my real estate professional doing this?”

7. Take as many educational courses as possible to stay up to date on the latest ethics law changes and requirements.

8. Pre-qualify clients carefully before representing them, and keep an eye out for unsavory types who use agents as their front people on shady real estate deals.

9. When qualifying your buyer, be sure to ask, “Are you working with another REALTOR®?”

(Standard of practice 16-13 requires licensees to ask prospects “whether they are a party to any exclusive representation agreement.”)

10. When in doubt, always ask questions of your broker-manager, the North Carolina Real Estate Commission and/or the NC Association of REALTORS®.

ISSUES ADVOCACY

By Mark Zimmerman Guest Columnist

Fighting – and Winning – the Good Fight

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n the year since our state legislature gave North Carolina counties the option of placing a land transfer tax on the ballot for voter approval, 20 counties have asked voters for permission to tax property sales and 20 times voters have overwhelmingly voted against the new tax. Here’s the story of one of them.

Despite multiple defeats for the transfer tax in last fall’s general election, Orange County’s Board of County Commissioners was confident it could buck the trend in the spring primary election. This election’s high profile presidential primary would bring a near record turnout, especially among our large, non-property-owning student population.

Orange County, home of Chapel Hill and Carrboro, has a long tradition of supporting high tax rates, especially to fund its school system. So, to win favor, the commissioners pledged most of the transfer tax revenue to the schools. They lined up the support of the local town governments, the Boards of Education and much of the press.

Leaving nothing to chance, the commissioners spent $10,000 to poll voter sentiments, then hired a professional political consultant group and appropriated $100,000 of taxpayer money to wage a multimedia educational campaign extolling the virtues of the tax.

The stakes in this election were large. Orange County has one of the highest property values in the state – ripe picking for expropriation through a land transfer tax. Would Orange County property owners, who already pay one of the highest effective ad valorem property tax rates, have to bear the additional burden of this new tax?

Those property owners – our customers – were numerous but lacked the organization to successfully oppose such a formidable and well-financed effort to pass the tax. To support them and oppose this tax, the Greater Chapel Hill Association of REALTORS® joined forces with NCAR, the Home Builders Association, and local groups as diverse as rural service organizations and affordable housing advocates.

A lot of money – much of it from NCAR’s Issues Mobilization Fund – was spent to ensure that the true impact of the tax was understood. Lower-income homeowners, retirees and the increasing number of households being forced into short sales could ill afford to pay this tax at closing. Churches, non-profits and affordable housing programs would be forced to pay as well. Finally, there was the fairness issue: Should we be taxing a small minority of taxpayers for the benefit of all?

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It didn’t take long for the tax advocates to get contentious. To avoid discussion of the tax itself, they tried to question REALTOR® involvement, alleging self-interest. They personally attacked those who spoke up against the tax. They warned that new schools wouldn’t be built without these funds. Fortunately, such nastiness and hyperbole fell on deaf ears. When the dust settled, a two-thirds majority landslide defeated the referendum.

Not surprisingly, we continue to debate internally whether to engage in these issues. After all, we, as REALTORS®, have no direct stake in this tax. We would not pay the tax. The tax wouldn’t noticeably affect home sales or values. If self-interest guided us, it would be easy to duck these issues, avoid the smears, and save some money.

Instead, we chose not to stand selfishly on the sidelines, but to speak on behalf of our customers who would bear the burden of this tax. Indirectly, there were many benefits. In Orange County, we preserved an estimated $3.5 million in home equity that would have been siphoned off by the tax every year. Our expenditures paled in comparison to those savings. We helped new homes be less expensive by keeping the development process unencumbered by multiple tax payments.

Housing affordability is a goal we all rally around.

Of course, there are broader principles involved, as well. In nations without private property rights, there are no REALTORS®; our profession only exists because people can transfer property. It behooves us to stand watchdog over those rights, to prevent our government from regarding private property as its public piggy bank.

As with most things worth doing, there is a price to pay, and not just monetary. It hurts to see our motives attacked. But just because we have critics doesn’t mean their criticism sticks. We can take great solace in such a large margin of victory. The voters overwhelmingly agreed with us. Tax proponents were the ones out of step and whose reputations were most at risk.

Given the choice, we certainly would have preferred that our county commissioners had not raised this issue.

Given we had no choice, it was comforting that our customers and the broader public thanked us with the lopsided support they showed at the polls.

Mark Zimmerman is president-elect of the Greater Chapel Hill Association of REALTORS®. He served as spokesman for Citizens for a Better Orange County, the organization that opposed the Orange County land transfer tax initiative.

ELECTIONS

Candidate Biographies PRESIDENT ELECT VOTE FOR ONE CANDIDATE Grady Watkins Holden Beach, Century 21 Anne Arnold Brunswick County Association of REALTORS® My experience as a REALTOR®, builder and mortgage broker allows me to understand the complexities of our business and provides me the knowledge to answer tough questions asked of industry leaders. Since 2005, my steadfast goal was to acquire knowledge and qualifications to serve the membership as NCAR President. The 2006 Leadership Academy helped me develop good leadership skills. My service on NCAR’s Budget and Finance, Legislative, Executive Committee, RPAC Trustees and PAGS provided opportunities to interact with NCAR staff and REALTORS® across North Carolina. As 2007 Region #2 VP, I was privileged to listen to and share concerns from other regions of NCAR. It was an honor to receive NCAR’s 2007 President’s Award. As 2008 President of Brunswick County Association of REALTORS®, I have the opportunity to network and discuss challenges and opportunities with other local leaders. I am a RPAC Golden R and a NAR President’s Club donor. As local RPAC Chair, I raised over $200,000 for RPAC. (Complete biography www.Watkins2009.com.)

I adamantly support NCAR’s vision that quality of life is the backbone of our industry. Quality of life is important not only for the citizens of NC, but for our members as well.

I believe NCAR should continue high quality educational programs and expand leadership opportunities. As NCAR President I would like to see the relationships between NCAR and local boards/associations strengthened. To help members succeed, NCAR must continue to have the vision to be proactive and build our grassroots efforts on legislative and regulatory issues and not yield to political pressure. In addition we need to provide positive industry information to the news media. I will work tirelessly on your behalf to provide REALTORS® with a better Quality of Life.

My sincere desire is that you will consider me the best candidate for President Elect 2009.

Mary Edna Williams Raleigh, Re/Max Capital Realty Raleigh Regional Association of REALTORS® As a REALTOR® member since 1986 and Broker/Owner of RE/MAX Capital Realty, I have watched the many issues we as an association must tackle in order to continue to be the “Voice of Real Estate.” Today, more than ever, we

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(Editor’s Note: To preserve each candidate’s unique voice and point of view, Insight is printing these biographies as the candidates submitted them, with minimal editing.) need proactive leadership to ensure our industry and our members have a place at the table, when regulations and laws are written. Because I believe I am that leader, I have chosen to run for President-elect for 2009.

Nationally, I’ve served on Political Communications Committee, as a NAR Director, past and present, FSC for Senator John Edwards and currently FPC for Congressman Brad Miller. Since 2000, I’ve attended Hill visits to our Congressmen and Senators.

My State Association service includes NCAR Director 1995-2005 & 2007 to present, Legislative Committee Chair, past and present RPAC Trustee, RPAC Treasurer and Vice Chair, committee member selecting the first Leadership Development Scholarships, and committees interviewing Senate and Gubernatorial candidates, President’s Rapid Response Team, and President of the North Carolina Homeowners Alliance.

Locally, I served 1995-2005 & 2007 to present as RRAR Director also holding the offices of Secretary, Treasurer, Vice President, President-elect and President.

Committee involvement includes governmental affairs, Top Producer Council Chair, Building Refinance, Grievance, Professional Standards, and Social. I was an original Board member and chaired the Triangle Community Coalition, served as Director and chair of MLS, and was named 2004 REALTOR® of the Year.

Other involvement includes testifying before Raleigh City Council on private property rights issues, supporting Susan G. Komen Race for the Cure, Angel Tree Project, Meals on Wheels, Junior League, Red Sword Ball, United Arts Council, Salvation Army, Hoops for Hope, Autism Foundation, sponsoring Raleigh Chamber Savvy Women’s Conferences and full scholarship donor for NC State Wolfpack Club.

Please allow me to put my knowledge and experience to work for our great association. www.electmaryedna.com REGIONAL VICE PRESIDENTS REGION 3 VOTE FOR ONE CANDIDATE Steve Cohen Fayetteville, RE/MAX Homeowners, Ltd. Fayetteville Regional Association of REALTORS® I have served my country for over twenty years in the US Army with two combat tours to Vietnam and three tours in Germany. I have served the real estate industry since 1987 and feel that the position of Regional Vice President is the next step toward serving my region.

Presently, I hold the designations of AR, CRS, GRI, e-

Pro and SRES. I am a member of the Fayetteville Regional Association of REALTORS®, the North Carolina Association of REALTORS®, and the National Association of REALTORS®.

Also I am a member of the Raeford/Hoke County Chamber of Commerce, the Veterans of Foreign Wars, the 82nd Airborne Division Association and The Association of The United States Army (AUSA).

My local Association and NC Association of REALTORS® committee service includes:

> Served on the Durham Planning Commission from 1998 to 2001 > Appointed to NCAR Legislative Committee for 2008 > Served as Economic Development Chair of the Durham Branch of NAACP > Member of St. Titus Episcopal Church > Hobbies – Music (voice), tennis and golf > Best Quote: “If you ever come face to face with destiny, Don’t be late” (author unknown)

1995 – Public Relations Committee Member 1996 – Public Relations Committee Member 1997 – Vice President for Public Relations 1998 – MLS Committee Member 1999 – MLS Committee Chairman 2000 – MLS Committee Chairman 2001 – President-Elect 2001 – Chairman, Fayetteville Association RPAC 2002 – President 2003 – Director 2004 – Vice President for Public Relations 2005 – Public Relations Committee Member 2006 – MLS Committee Member 2007 – MLS Committee Chairman 2008 – MLS Committee Chairman 2001 – NCAR Director 2002 – NCAR Director 2008 – NCAR Legislative Committee Member

REGION 6 VOTE FOR ONE CANDIDATE Paul McGill Winston-Salem, McGill Realty Winston-Salem Regional Association of REALTORS® Active in Forsyth County and the state since 1979, my main focus is on residential, commercial and farm sales and construction supervision and residential development.

Property management responsibilities are all encompassing for sites under management.

Although McGill Realty is small, my experience is vast. For example, I recommended and implemented the reconstruction and commercial adaptation of Reynolda Village to Wake Forest and directed all project expenditures, post commercial adaptation and occupancy of retail space. Subsequently, I was operations officer responsible for creation of Graylyn Conference Center. Real estate goals are to creatively help all clients – big or small.

As an experienced NC broker, with a General Contractor license and an MBA from Wake Forest, I’m well-positioned to evaluate issues of strategic importance. I have served on numerous committees including NAR Land Use Property Rights and Environment Committee (2006-07), Forms (2006), Government Task Force (2005), NCAR Board of Directors (2004-08), and NCAR RPAC Trustee (2006-08). Locally, I was honored as the Winston-Salem Association’s Realtor of the Year in 2007, and have served as WSRAR President-2005, Board of Directors- 1998-present, Political Affairs 1998-present, Nominating 1998, 2000, Professional Standards, 19982000; and Membership Development, 1999, committees and RPAC Chair 2004. I served as Chair of the Commercial and Industrial BOD in 1998 and serve as the current president of the TRIAD MLS and WSRAR MLS chair in 2007.

In addition, I am a member of the Winston-Salem, Forsyth County Utilities Commission (2003-present; Finance) and have served on the WS Zoning Board of Adjustments and Clemmons Phase 2 Storm Water Committee. I am also active in my community, church and school activities. I own homes in Winston-Salem and Blowing Rock and can serve Region 6 well from the two locations.

I will spend my time as Regional Vice President doing whatever I can to improve our industry as a whole and in particular Region 3 and North Carolina.

REGION 4 VOTE FOR ONE CANDIDATE Preston Edwards Durham, Realty Executives Triangle Southpointe Durham Regional Association of REALTORS® > Born March 28, 1969 in Washington, DC > Attended the Washington DC Public Schools > 1992 Graduate of North Carolina Central University, Degree in Business Finance > Married with 3 sons, ages 10, 8 and 4 > 2008 President of the Durham Regional Association of REALTORS® (DRAR) > Broker and Co-Owner of Realty Executives Triangle Southpointe in Durham > REALTOR® since 1997 > Served as Legislative Chair of DRAR > 2003 FELLOW of the North Carolina Institute of Political Leadership > Served on the Board of Directors of DRAR > Served as DRAR Secretary, Vice President, President-Elect > Served on NCAR 2006 Strategic Planning Committee

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ELECTIONS

REGION 8 VOTE FOR ONE CANDIDATE Aric Beals Charlotte, Berryhill Realty Co. Charlotte Regional REALTOR® Association Thank you for the opportunity to serve as an NCAR Regional Vice President (RVP).

As a representative of the Charlotte Regional REALTOR® Association (CRRA), I want to maximize the effectiveness for all members and firms, large and small. I have a strong appreciation for the history of our local and state associations, but equally understand the necessity of our associations to adapt to the daily changes impacting our industry.

My work with the NCAR Board of Directors, since 1999, NCAR Property Management Division, Real Estate and Building Industry Coalition (REBIC) and past service as a CRRA Board of Director equips me with the experience to be an effective RVP. I am willing and ready to fully research whatever issues may come before the executive committee and make the best decision for our associations. I promise to you, I will dedicate the necessary time required to be an effective leader on the NCAR Executive Committee.

REGION 9 VOTE FOR ONE CANDIDATE Kirk Booth Asheville, Kirk H. Booth Real Estate Asheville Board of REALTORS® I was born and raised in Asheville, North Carolina and graduated from Reynolds High School in 1985. I received a B.S. in Aeronautical Studies and an Associate in Science Aviation Business Administration from Embry Riddle Aeronautical University in 1988. After graduating from college I was a flight instructor and corporate pilot for four years. Following this I entered the real estate profession working with a large firm in the Asheville area. Later I became broker-in-charge, managing approximately 20 agents.

I have been very active with the Asheville Board of REALTORS® since 1993, chairing the Multiple Listing Service Committee, the Real Estate Exposition Committee, and also serving as the president of the Asheville Board of REALTORS® Services, Inc. and President of the Asheville Board of REALTORS®.

I live in Fairview with my wife, Laura, and two wonderful children, Regan and Nicholas.

ACADEMIC BACKGROUND: > Embry-Riddle Aeronautical University

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> Bachelor of Science in Aeronautical Studies > Associates in Science in Aviation Business Administration AFFILIATIONS: > North Carolina Real Estate Broker > Asheville Board of REALTORS® member since 1993 > Asheville Board of REALTORS®, 2003 President > Western North Carolina Exchange member > North Carolina Association of REALTORS®, Director > North Carolina House of Representatives, Page > Federal Aviation Administration, Airline Transport Pilot > Federal Aviation Administration, Certified Flight Instructor > Federal Aviation Administration, Certified Instrument Instructor > Federal Aviation Administration, Certified Multiengine Instructor I would appreciate your vote for Region 9 Vice President. I have served for many years in various capacities with your interest in mind. I would like the opportunity to continue to do so in this new role. Thanks for your support!

REGION 10 VOTE FOR ONE CANDIDATE Elizabeth Allardice Raleigh, Re/Max Capital Realty Raleigh Regional Association of REALTORS® My REALTOR® service began with the RRAR Government Affairs Committee as a committee member, Vice Chair of the committee in 2005 and Chair in 2006. I have also served on the NCAR Legislative committee from 2005-present, been a Board member of the Raleigh Regional Association of REALTORS® 2004-2007, Board member of NCAR 2005-2007, participated in the NAR Midyear meetings in Washington D.C., calling on our Senators and Congressmen, and 2008 Founding member and Board member of the RRAR REALTOR® Foundation of the Triangle.

Additional service to the REALTOR® community is as a 2008 Dean for the new Triangle REALTOR® Leadership Academy, an associate member of the Durham Regional Association of REALTORS®, and member of their legislative committee.

Designations include Certified International Property Specialist (CIPS) and Certified Residential Specialist (CRS).

Additional active membership in The International Real Estate Federation (FIABCI), and founding member of The Institute of Luxury Home Marketing with certification CLHMS, Certified Home Marketing Specialist.

It is my belief that participation in industry related activities is not only a REALTOR’S® responsibility but also a critical component in the long range success of our business.

FINANCE & BUDGET COMMITTEE VOTE FOR THREE CANDIDATES Fen Adcock Durham, Realty Executives Triangle Durham Regional Association of REALTORS® I am Broker/Owner of Realty Executives Triangle and Area franchise owner of Durham and Orange Counties. I joined the Durham Regional Association of REALTORS® in 1994 and served on numerous committees. I also served as Chair of the Education/Orientation and Legislative/Political Affairs committees. I served as president of DRAR in 2003 after being an officer on the Executive and member of the BOD since 1999.

I am currently serving as Region 4 Vice President for NCAR and previously served on the Budget and Finance Committee from 2006 thru 2007. I have also served on NCAR BOD from 2002 thru 2008 and on the Executive Committee for the past 2 years as well as serving on the Electronic Voting Task Force in 2006.

Lou Baldwin Winston-Salem, The Baldwin Companies Winston-Salem Regional Association of REALTORS® I will be greatly honored by your support of my candidacy for an At-Large Position on NCAR’s Finance Committee.

I have been active in the Winston-Salem Regional Association of REALTORS®, NCAR and NAR for the past 20 years. I am currently serving on the Executive Committee and Board of Directors of NCAR as the Region 6 Vice President. I also serve as our Federal Political Coordinator to Senator Richard Burr and as the Chairman of NCAR’s Presidential Advisory Group regarding funding for Issues Mobilization.

I have been honored to be recognized as the WinstonSalem Regional Association’s Realtor of the Year and with NCAR’s Regional Service and Political Coordinator of the Year Awards.

My service on the NCAR Executive Committee and past service as our local Association’s Secretary/Treasurer and President have prepared me to serve in this important position.

Additionally, I have completed the NCAR’s “Finance 101” seminar, which details the financial structure of NCAR and its affiliate organizations.

This is a significant time in the financial history of NCAR. Unprecedented legislative challenges are putting pressure on our resources. The current economy presents the potential for a decrease in membership. It is essential that we assess the revenues and expenses of NCAR to make sure members are receiving the maximum benefit for our dues dollars.

Through my service as PAG Chairman and Regional Vice-

President I have had the opportunity to talk with REALTORS® throughout North Carolina. There are two important messages that I have heard loud and clear and will bring with me if elected: 1) Our members want and deserve to know that their hard earned dues dollars are being invested wisely in NCAR’s services, benefits and advocacy.

2) Our members expect “transparency,” which is defined as “openness, communication and accountability.”

Thank you for considering my candidacy.

Treasure Faircloth Winston-Salem, Allen Tate, REALTORS® Winston-Salem Regional Association of REALTORS® VOTE TREASURE FAIRCLOTH FOR 2009 NCAR FINANCE I have been a full time REALTOR® for 30+ years. I have been dedicated to the real estate industry, not only by serving my clients with the highest degree of professionalism, but also serving my fellow REALTORS® by being active with the Winston-Salem Regional Association of REALTORS®, North Carolina Association of REALTORS® and National Association of REALTORS®.

My experience includes budget and finance committees for WSRAR, National CRS Council and the NC CRS Chapter. I have also served as treasurer of the NC Real Estate Education Foundation. As a member of executive committees and board of directors of each of these organizations, I have been intricately involved with developing, reviewing and approving the irrespective annual budgets. I have served as president of WSRAR, NCAR, Region 6 Vice President, NCAR Executive Committee, Region 6 Finance, president of NC CRS Chapter, three terms as regional VP of the National CRS Council and numerous roles on local, state and national committees.

Presently, I serve on the board of directors for WSRAR, National CRS Council, NC CRS Chapter and NAR. I just graduated from the 2007 Leadership Class for National CRS Council. I now serve on RPIC Committee for NAR. My leadership has been recognized by my peers in the form of numerous awards at all levels of participation, including NCAR Hall of Fame; NCAR Regional Service; WSRAR’s Tom Lambe Hall of Fame; REALTOR® of the Year; AR Tuttle Service Award; NC CRS of the Year.

I would be honored to serve NCAR in the Finance Committee and hope that you will put my experience, dedication and leadership to work for you in this capacity.

NAR DIRECTOR VOTE FOR THREE CANDIDATES John Carroll Asheville, Century 21 All Seasons Asheville Board of REALTORS® It would be a great honor to again represent (continued on page 33) Sept./Oct. 2008

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ELECTIONS

ATTENTION NC REALTORS® MEMBERS IMPORTANT INFORMATION REGARDING SEPTEMBER 2008 ELECTION Following yet another record voter turnout last year, NC REALTORS® members will again have the ability to vote for NC REALTORS® elected leaders from any location with access to the Internet. In order to be certain you receive important voting information via email in September, please review the following information and take the appropriate action: >> As previously approved by the Board of Directors, the electronic method of voting will be the

ONLY means by which eligible voters may vote in the Annual Election. >> All NC REALTORS® members must have a CURRENT email address in the NC REALTORS® (NRDS)

system by Friday, August 29, 2008 to guarantee that you will receive your confidential login information for the election. Please contact your local REALTOR® Association to update your email address by August 22 to allow adequate time for reporting of changes to NCAR by the August 29 deadline. >> Many members have taken extraordinary measures to prevent junk emails; therefore, to ensure

that your login info is able to be delivered, please take any necessary action to allow your email system to successfully accept emails from elections@ncrealtors.org . >> Your confidential login and password will be emailed to you beginning September 16. Please note that for security reasons, this is NOT the same login and password that you use for the NC REALTORS® Web site or forms. You should safeguard this login info and have it available when you are ready to vote. >> Voting reminders with login information will be emailed again after the polls open. If you do not

receive your login info by September 17, please check your spam filter. If you cannot retrieve it from your spam filter and need further assistance, NC Association of REALTORS® staff will be available during business hours, 8:30 A.M-5:00 P.M., Monday through Friday. To ensure the highest security standards, the NCAR staff will not have access to your login info, but will be able to work with our electronic voting vendor to assist you in getting this information, prior to and during the election. Please don’t wait until the last 30 minutes of the election to alert us that you have not received your login info! >> If you do not submit an email address to your local REALTOR® association, you will NOT receive

any election information by any other method of communication, such as U.S. Mail or facsimile.

Online Polls will be open 24 hours a day from 12:00:01 A.M. (Eastern Standard Time) on Monday, September 22, 2008, to 11:59:59 P.M. (Eastern Standard Time) on Thursday, September 25, 2008.

When the election begins, you may access the ballot through a link at www.ncrealtors.org or go directly to the voting Web site: https://eballot3.votenet.com/ncar/login.cfm

MAKE SURE YOUR VOICE IS HEARD!!

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NAR DIRECTOR (CONTINUED) the North Carolina REALTORS® as NAR Director. My purpose, as always, is to represent the unheard voices of REALTORS® and property owners.

NAR is a large organization with many diverse facets requiring the attention of experienced representatives. My political and real estate experience at the local, state and federal government levels enables me to be such a representative.

I am a proven advocate for many of our REALTOR® initiatives, including the original opposition to transfer tax, passage of the continuing education and residential property disclosure bills, and stopping sales tax on MLS computer access fees. I have been Chair of various state committees and President of NCAR. Our changing economy involves challenging times ahead for REALTORS®, and NAR will not be spared the challenge of accommodating the needs of its members during this time of uncertainty. National politics will create problems for our organization as tax dollars become more limited and Congress looks to property owners and our industry to pay the bill.

My experience as a Federal Political Coordinator will provide me insight on these issues. This experience, spanning from 1980 to present, has included working closely with three congressmen and currently a senator, both Democrats and Republicans.

It has been my pleasure to serve the REALTOR® organization at local, state and national levels with many of you, or people you know, for more than 30 years. During this time I have been an active broker and I continue to make a living in this business every day.

I am confident that my political roles, organizational tasks and policy fights have prepared me to be NAR Director. Please take the time to vote online when NCAR notifies you by email.

To see a boring list of qualifications, visit www.johnwcarroll.com.

Thank you!

Ronnie Thompson Valdese, Thompson Realty Burke County Board of REALTORS® As the North Carolina Association of REALTORS® continues to grow, the issues that face our membership become more complex and complicated. We are now the eighth largest REALTOR® association in the nation and our membership has become more involved with the National Association of REALTORS®.

I would like to continue our involvement by continuing to represent you as a National Director. My service at the NAR level will be focused as the Vice-Chairman of the State and Local Issues. This position will also give me membership on three other committees. We must continue to make progress on the Second Century Initiatives as implemented in the Strategic Plan for the national association.

My term as NC CRS President will end in December, 2008.

My term as NCAR RPAC Trustee will also end in December. Your Educational Foundation will be a focus for me in 2008-2009 as we continue to have the best Foundation in the United States.

I would appreciate your support and your vote. Together, we can make a difference.

Bruce Williams Greensboro, RE/MAX 1st CHOICE Greensboro Regional REALTORS® Association I have been committed to the Real Estate profession from the day I entered in 1991. In the first few years, I not only obtained the GRI, but also the CRS designation. At the onset, I believed in giving back to the profession and started serving in different roles at the Greensboro Regional REALTORS® Association (GRRA) and the NC Association of REALTORS®. It was not long before I became a dean for GRI classes and ultimately ended up serving as an NC Real Estate Educational Foundation (NCREEF) Director.

In 2006, while wearing two hats, that of NCCRS and NCREEF President (the first in N.C. REALTOR® History) I traveled around the State giving speeches titled, “The Importance of Designation/Education”.

Over the years I have found there is great value in attending not only the North Carolina and National Association Conventions, but our NAR Midyear meetings held in our Nation’s Capital, and the Legislative days in Raleigh. I also attend the CRS Conventions. My personal belief: at the end of the day, there is “value added benefit” not to mention the power of the networking in meeting others in the REALTOR® family from across the Nation.

From the onset of my working life, I have believed in listening and responding to others around me. This year I am fortunate to be your NAR Alternate Director, and would very much like to serve as your National Association of REALTORS® (NAR) Director for the next few years.

Just a few of the positions I have held: 2004 GRRA President, 2006 NCCRS & NCREEF President, NCAR ChairmanBylaws, Voting Task Force, NCAR Strategic Planning, NAR Education Committee member and BCAR Education Committee member.

Should you have any questions feel free to send an email at locationx3@aol.com. Thank you in advance for your “Vote” of confidence.

Myra Zollinger Chapel Hill, Coldwell Banker Realty Center Raleigh Regional Association of REALTORS® I am a working REALTOR® who lists and sells residential property in Chapel Hill and I’m asking for your vote. I’ve been proud to represent North Carolina REALTORS® on the national level for over 20 years. My involvement speaks of my passion for the REALTOR organization and its members.

(continued on page 44)

Sept./Oct. 2008

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HOUSING OPPORTUNITY

by Diane Greene Director of Community Outreach

Turning Disclosure Concerns into Dollars

W

hat if I told you that you could make a meaningful difference in affordable housing and turn a disclosure concern into an image-building benefit for your firm? Would you be interested?

That’s exactly what 2007 NC REALTORS® President Danny Brock has been doing for several years under a creative arrangement with 2-10 Home Buyers Resale Warranty Corporation.

Under their agreement, 2-10 accrues the marketing fees normally paid to Brock’s firm for advertising, processing and administering the resale home warranties it sells. Now at the end of each quarter, the funds are donated to Danny Brock Homes4NC by Century 21 Brock & Associates.

While the charitable results of the program have been impressive – $10,000 has been donated in the last four years – Brock will be the first one to tell you that charity wasn’t his only reason for setting up the program. “I thought this would be a good way of supporting Homes4NC and helping us resolve disclosure concerns at the same time,” he says. “From a regulatory standpoint, disclosing fees is becoming a bigger liability all the time. Marketing fees also can cause clients to question our motives. So we decided to take the questions out of the equation by simply donating the fees to Homes4NC.” Brock adds that clients usually are pleased to hear that this nominal fee is being donated to Homes4NC on

their behalf. It has turned a potentially negative disclosure into a positive, image-building opportunity for his agents and the firm.

For its part, 2-10 Home Buyers Resale Warranty Corporation is excited to be helping Century 21 Brock & Associates make a difference for affordable housing.

“We love North Carolina, we love NCAR and we are honored and thrilled to be part of this initiative for Homes4NC,” says Sue Ellen Burchfield of 2-10 HBRWC. “It’s the perfect way for firms to protect their clients with a great warranty program and demonstrate how much they care about their community.”

Now that a process is in place, Brock hopes that more firms will consider adopting the program, especially in light of North Carolina’s increasing disclosure requirements (see The Forms Guy, page 36).

To get the ball rolling, Brock suggests following the same process he went through. “It’s easier if everyone in the office supports the program, so explaining the benefits and getting buy-in is the first step,” he says.

Once everyone in the office is on board, you’ll want to contact your 2-10 account executive, who will then initiate the process.

To connect with your account executive, contact the 2-10 HBRWC National Accounts office by emailing amurray@2-10.com or calling 800-6116176, ext. 3. You also may contact the Broker/Agent Services Line at 800795-9595.

Homes4NC Awards Luncheon Will Be Oct. 20

M

ark your calendar for Monday, Oct. 20 and make plans to join us for the premier housing awards program in North Carolina. That’s when REALTOR® leaders and other housing advocates will come together to honor the individuals and organizations who are creating the most

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innovative solutions to N.C.’s housing challenges.

The 2008 Homes4NC Affordable Housing Achievement Awards will be held that day from 11:30 a.m. to 1:30 p.m. at the Raleigh Regional Association of REALTORS® office in Cary. This uplifting affair is your opportunity to network with

prominent housing leaders while giving well-deserved recognition to those making a difference for affordable housing. For more information, visit www.Homes4NC.org or call Diane Greene at 800-4439956.

Attend the Homes4NC Dream House Celebration Celebrate affordable housing in the mountains by attending the Homes4NC Dream House celebration on October 17 in Black Mountain.

Thomas McClain of Home Sweet Home Land Management Group and The Settings of Black Mountain have partnered with Homes4NC to donate a portion of the proceeds from the sale of the Dream House to support our affordable housing efforts. Visit www.homes4nc.org for more information.

Sept./Oct. 2008

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THE FORMS GUY

By Will Martin General Counsel

All Compensation Now Must Be Disclosed Dear Forms Guy: I don’t know, but I’ve been told there’s some new form out there that we have to use whenever we get paid a bonus. Is that right? Sincerely, Lefty

firmation of the value of the compensation. You can use new form #770 to comply with the requirements of the new rule.

Dear Lefty: The Real Estate Commission changed its rule regarding the disclosure of brokerage fees and other compensation earned by a real estate agent during a real estate transaction. These changes were prompted by publicized allegations of certain buyer agents failing to disclose to their clients that they would receive incentives from a home builder when their clients purchased new homes. A new disclosure form has been developed to help agents and firms comply with the new rule. The name of the form is Confirmation of Additional Compensation (form #770).

Lefty: OK, suppose instead that I’m representing a buyer and we use the Exclusive Right to Represent Buyer Agreement (form #201). Would the rule still require disclosure and written confirmation?

Lefty: What’s the new rule say?

Forms Guy: The new rule requires real estate agents in sales transactions to make “full and timely disclosure” to their clients of “any compensation, incentive, bonus, rebate, or other valuable consideration” that the agent may expect to receive from a third-party, and to confirm that disclosure in writing before the client makes or accepts an offer to buy or sell.

Lefty: So it’s not limited to disclosure of bonuses?

Forms Guy: That’s right, Lefty.

Lefty: What does “full and timely” disclosure mean?

Forms Guy: The rule says that “full disclosure shall include a description of the compensation, incentive, bonus, rebate or other consideration, including its value and the identity of the person or party by whom it will or may be paid.”

Lefty: OK, suppose I’m representing a buyer and we use the Non-Exclusive Buyer Agency Agreement form (standard form #203). My buyer is interested in a property listed in the MLS. Would the new rule require me to disclose to my buyer-client the amount that the listing agent is offering cooperating agents and disclose it in writing to my client before she makes an offer on the property?

Forms Guy: Yes. Although the Non-Exclusive Buyer Agency Agreement form already permits the agent to receive any compensation offered by the listing agent or seller, the new rule requires disclosure and written con-

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Forms Guy: That would depend, Lefty. If the buyer agency agreement indicates that you will be entitled to a commission of “x” percent of the purchase price of the property, and you determine that the listing firm is offering cooperative compensation of “x” percent of the sales price, you would not be required to make further disclosure regarding the commission you would receive if the buyer purchases the property. In other words, the buyer agency agreement itself serves as the written disclosure.

On the other hand, if the listing agent is offering cooperating agents a commission of “x” percent plus 1, you would be required to disclose to your buyer-client any compensation above “x” percent that you would expect to receive if the buyer purchases the property and to confirm such disclosure in writing before they make an offer.

Lefty: So here’s another question. Suppose a builder has an incentive program in which agents who sell three of the builder’s homes in a specified period of time will receive a free trip to a Caribbean island upon the closing of the third sale. Say I’m aware of the program and show one of the builder’s properties to my buyer-client. If the buyer wants to make an offer on the home, would I be required to disclose the incentive to the buyer before they make the offer, even though I won’t get the trip unless I sell two more of the builder’s properties during the specified time frame?

Forms Guy: Yes, you must disclose the potential compensation to all three buyers or potential buyers. Note that the rule would also require you to disclose the value of the trip.

Lefty: Will the client have to sign the form?

Forms Guy: The rule does not require the client to sign the written confirmation of the incentive. However, it is strongly suggested that the client sign the form to clearly show evidence that the agent has complied with the disclosure obligation.

THE FORMS GUY

Lefty: But what if they won’t sign?

Forms Guy: Oct. 1, 2008.

Forms Guy: If a client refuses to acknowledge receipt of the form, the agent should note on the agent’s copy of the form the date and time that the agent gave the form to the client and that the client refused to sign it, and the agent should send it to the client in a manner that provides proof it was sent.

Lefty: When will this new form be available?

Forms Guy: It will be available sometime prior to Oct. 1. Guidelines for using the form will also be available as standard form #770G. Lefty: Are there any other changes?

Lefty: If they don’t sign, does that mean I can’t get the incentive?

Forms Guy: No, but you do need to get the client’s consent to receive any extra compensation in the first place. Both the Exclusive and Non-Exclusive Buyer Agency Agreement forms authorize the firm to receive additional compensation, etc. If additional compensation is offered, the new rule now requires agents to disclose the actual value of the compensation and confirm it in writing before the client makes or accepts an offer to buy or sell.

Lefty: When will this new rule go into effect?

Forms Guy: Some changes have been made to the compensation section of the Exclusive Right to Represent Buyer Agreement form (form 201) that hopefully will encourage agents to complete the agreement in such a way so as to avoid the necessity of having to use the new disclosure form in all situations. As I said above, if the agency agreement reflects the amount of compensation that the agent is actually going to receive, no additional disclosure is necessary.

Wording has also been added in the compensation section of the Exclusive Right to Sell Listing Agreement (form 101) authorizing the firm to receive additional compensation.

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

Diamond

Platinum

Gold

Silver 2-10 Home Buyers Warranty American Home Shield BB&T

Courthouse Retrieval System NC Licensed Home Inspectors Physicians Mutual The Real Estate Book

Realty World- The Carolinas RISCO Lockbox ZipForm

Sept./Oct. 2008

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Wake Up Your Office, Get Alarming Results!

By Drexanne Evers

ow to spur sales associates on to more listings and sales is one of the biggest challenges that faces real estate brokerage managers. What motivates and inspires sales associates often depends on the individual, and it’s difficult to find a surefire formula that will work for all companies and sales associates.

There are many reasons why an office is sleeping. It can be too complacent – although everyone could produce more, there does not seem to be energy to do so. There is also the office where nothing is new and everyone is bored and burned out.

Not too long ago I was asked to manage an office in Montgomery, Ohio, just outside Cincinnati.

The problem in that office seemed to be the “stepchild syndrome.” Recently acquired, those staff members felt that they couldn’t compete with the nearby Kenwood office, the powerhouse office of

H

the new owner. Turning the office around was a challenge, but by the end of one year, the Montgomery office had gone from 18 to 53 sales associates, and from an average gross volume of sales of $400,000 per month to $3,000,000 per month.

How did this dramatic change take place? One of the keys to waking up this “sleeping office” was excitement that I helped create through building hope, ideas, activity and enthusiasm.

Building the Hope Factor Everyone must have hope in order to have incentive. Sales associates who feel there is hope for a listing or a sale will actively pursue the goal. Just think of the new sales associate – oh, what enthusiasm! There is so much hope for the future! Then you see this same sales associate several months later, and you witness less excitement. The “hope factor” has diminished because the sales associate has not

reached the expected achievement level.

Fortunately, hope can be regenerated. Start by setting realistic office goals that are easily attainable.

When the goal is reached, award the office with a microwave oven or another piece of equipment. The reward will have actually been earned and everyone will feel proud to have contributed. This will give sales associates hope that they can do even more.

Be optimistic, and have a “we can do it!” philosophy. Take time to point out good things about the office. For example, suppose someone in the office listed a property of the highest dollar amount in the company. In the next sales meeting mention that “our office” had the highest dollar amount listing in the company last week. Then tell them whose listing it is. Put the emphasis on the office and what the office has accomplished as opposed to the individual.

The main thing is to reinforce that there is hope.”

Creating Ideas Helping sales associates gain new insights also leads to excitement. Here are some ways I was able to help sales associates gain new ideas: Sales Meetings. Enhance your sales meetings. Make the sessions so good that if not attended, sales associates will feel as if they have missed something.

Occasionally, bring in an expert who will help educate your sales associates and re-energize them with new ideas.

Training/Focus Sessions. Identify a number of different segments within your office and form training or focus sessions with them. For example, I invited good listers to talk with poor listers, and give them new ideas. These meetings did not help everyone in the group, but one person in this group made it into the Million Dollar Club that year.

Education. Urge sales associates to take courses, and give them guidance in the selection of courses based on their individual needs. Many sales associates avoid challenging courses and prefer to take only what they are already good at and like.

Networking. Encourage networking of any kind.

Get sales associates involved with other people. Get them to participate in the local board, and to attend the NAR convention (talk about excitement!).

Highlight the sessions they should attend. Board activities, classes, conventions, and conferences all create ideas for those in attendance.

Activity Development Activity brings about more activity. Start by mak-

ing some small changes. Too many changes or too large of a change can cause apprehension. Just change the seating arrangement a little, or change the way you have been scheduling phone time. The significance of the changes themselves is small, but those “sleeping” sales associates will now wonder what’s happening and will wait to see what’s going to happen next.

New Recruits. To get new recruits into the swing of things quickly, invite them to sales meetings right away even if they are not licensed. You might put them on a committee such as the referral committee.

One of our new recruits once chaired the referral committee for our month-long contest and the Montgomery office sent out more than 100 referrals that month. This number was the most that one office had ever sent in one month’s time.

Assign a “buddy” to the new recruit immediately. Develop a 90-day buddy-recruit training program so that the seasoned sales associate knows what aspects of the real estate business you want the recruit to learn each week.

President Involvement. I frequently asked the president of the company to speak at our office. I also phoned the president when my sales associates accomplished anything noteworthy, and asked him to call or write a letter to the sales associates and congratulate them. This created excitement and motivation for the sales associates who were honored to receive communication from the company president.

Have Enthusiasm A manager should take every opportunity to create enthusiasm. You might put on a pep rally to help excite and motivate sales associates. Invite outsiders to your rallies: builders, listers, community political leaders. Also, loosen up and be childlike sometimes.

Although we must be professional, I think we often tend to be too serious. It’s great therapy and it’s fun!

Over several months the Montgomery office boosted its confidence, increased its number of sales associates, paid attention to training, built a solid team, increased its hope factor, and doggone it, even beat the Kenwood office as well as all of the other offices in a month-long sales contest. That was the end of the syndrome. Montgomery made giant leaps in production and it is today one of the leading real estate offices in the Cincinnati area.

Drexanne Evers (CRB) is a Ohio-based real estate consultant.

She will be one of the featured session leaders at the NC REALTORS® 2008 Convention & Expo in Charlotte on Oct. 5-8.

REALFAST

By Barbara Sloan Realfast, Director of Sales & Marketing

Contract Forms Changes Now Available

T

he new NC Association of REALTORS® forms have been added to the forms list in our online product, Realfast2Go. Your forms list will be automatically updated the next time you log in to Realfast2Go. If you began completing a form for a specific transaction prior to Sept. 1, you will be given the option to update to the new form version when you come in to edit the form.

If you are a Realfast 6, stand-alone desktop product user, you may update your forms by following the instructions below: 1. Connect to the Internet

2. Go to the NC Association of REALTORS® Web site at www.ncrealtors.org 3. Log in with your username and password. Your username is the e-mail address you have on record with the NC Association of REALTORS®. Your DEFAULT password is your National Association of REALTORS® Database System Number (NRDS). Please note that this number is not your license number or your MLS number. For your convenience, it is printed on the mailing label of this issue of Insight.

4. Click on “Forms & Contracts” on the top left.

5. Click the red Download Now button. Note: If you have Windows Vista, click the link below the button that reads “Need to download the Windows Vista version?”

6. When prompted, click on Open or Run. If you get a security warning message, click Yes to install.

7. Follow the directions in the Realfast setup program.

Your Realfast desktop program should now be updated. (Note: If you are using a networked version of Realfast, your network administrator should use these directions to update the server computer.)

The forms changes were effective July 1 and became mandatory on Sept. 1. Since the NC Association of REALTORS® Forms Use Policy’s 60-day grace period has expired, the old forms versions will no longer be available for new transactions.

Clause Library Feature Now Available In Realfast2Go The Realfast2Go Clause Library feature allows you to create and insert frequently used segments of text

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into any expandable field within your contract forms for real estate forms. Clauses are often provided to you or your firm by an attorney; however, they can be any verbiage used repeatedly in your contracts.

There are two categories of clauses: ®

2go

1) Personal Personal clauses are those an individual user creates under his or her user account and are available only to the individual agent to insert into forms.

2) Office Office clauses are those created by the firm and shared with all agents in the office to insert into their forms.

These clauses can only be created, shared or changed by a user with Office Administrator privileges.

To begin using the Clause Library Feature in Realfast2Go: 1. Log in to Realfast2Go at http://www.realfast2.com/Realfast2go/RFIndex.hta 2. Your Login name is your email address and your password is the word realfast, all in lower case. If you have previously logged in, you would have been required to change your password.

3. Click on “Create and Edit Clauses” from the Main Menu.

4. An introduction and instructions are included to help you get started creating, editing and inserting your clauses.

Did you know … there is a Calendar Tool available in Realfast2Go? The Calendar Tool feature allows you to quickly insert dates into fields without having to type it.

To begin using the calendar tool feature in Realfast2Go: 1. Open the form you wish to complete in Realfast2Go 2. Right click within a date field 3. Click on ”Calendar”

4. Click on the date you would like inserted in the field and it will populate into the field.

Save time and verify your math with Realfast2Go’s Loan Calculator!

Click on Forms Tool to access the loan calculator, which allows you to quickly calculate mortgage payments and create and print an amortization schedule.

Quickly Insert N/A or None into a field Right click within any field in a form. Select “Insert N/A” or “Insert None” and it will be populated into the field.

Should you need Realfast assistance, please contact customer service at 800-571-0277 or customer.service@realfast.com.

Realfast is provided to you as a benefit of membership from the NC Association of REALTORS®.

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REALTORS® Partner Program

By Kristin Miller Marketing Specialist

Partners Program Releases New DVD-ROM

S

ince early January, members everywhere have taken notice of the new REALTOR® Partners DVD that is showing up in offices and meetings across the state.

The REALTOR® Partner program is a benefit program that provides you with discounts on products and services that you use in your day-to-day business. When you participate in the program a portion of the revenue that is generated is then given back to your local association. This year the local associations are receiving more than $76,000 for 2007 membership participation. This is the highest amount in the history of the program. Over the 15 plus years of the program, more than $450,000 in dividends has been distributed to the local associations.

The Partners Program DVD has been created to reach new North Carolina REALTOR® members with instant and easy access to useful knowledge of the program. In addition, this will also benefit veteran members who are not familiar with the program and need more of an understanding of their full member benefits through

the REALTOR® Partners Program.

The DVD showcases a full video of member testimonials and an excellent explanation of how the program works. The DVD also includes direct contact information on how you can sign up to receive the discounts. Kelly Marks, Chair of the REALTOR® Partners Committee, believes that this program is not only easy to use but is also helpful in saving money. “This DVD is very informative, interactive and easy to use. With many of our members being affected by the challenging economic environment, participating with our REALTOR® Partners makes more sense than ever. Not only do our Partners provide value added services that benefit our membership, but our members can also realize direct and indirect savings.”

By raising awareness throughout membership, it will ultimately lead to increased revenue for the local associations and valuable savings for NC REALTOR® members.

To receive copies of the DVD, please contact Kristin Miller at 800-443-9956.

Benefit from the buying power of

42,000 NC REALTORS®

“I looked into Nationwide in order to save money with the NC REALTORS® discount.

Their quote was extremely competitive and ended up saving me 10-15% on all of my policies. Nation-wide’s convenience and competitiveness made it an easy and beneficial decision for me.”

Bill Warmath, Greensboro

ORDER THE VIDEO HEAR FROM OTHER MEMBERS LEARN HOW TO GET DISCOUNTS MEET THE PARTNERS

“My experience with Cingular, now AT&T, has been great. I have very few dropped calls and good coverage. My NC REALTORS® discount saved me a couple of hundred dollars on my two year service contract.”

Guy Eberhart, Cornelius

Save Time.

Save Money.

Start Today!

“RealFast2Go is a member benefit that all North Carolina REALTORS® should be taking advantage of. It’s fast, easy and accurate and will streamline your listings and offers, and it’s FREE!” Bruno Perry, Jacksonville

Visit www.ncrealtors.org or call Kristin Miller at 800-443-9956 to order your DVD presentation.

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ELECTIONS

Myra Zollinger (continued from page 33) National Leadership: > President, Council of Residential Specialists (CRS) 1997 > NAR Region 4 (NC,SC,TN,KY) Vice President 2003 > Chair, Professional Development (Education)2007 > NAR Extended Leadership Team member 2008 as Liaison to committees involved with Information, Communication and Professional > Development Chair, REALTORS® National Marketing Institute (RMNI) 1998 National Committee Service: > Executive Committee 2003, 2008 > NAR Director 1998, 2000-2008 > MLS 1988-1994 > Professional Standards 1999-2002 > Nominating 2004 > Public Policy Coordinating 2005 > Education 2005 > Federal Housing Policy 2006 > Communication 1992 > Membership Promotion 1986 > Institute Advisory 1995-1998 > RPAC – Golden R and Presidents Circle North Carolina Association of REALTORS®: > REALTOR® of the Year 2006 > President 2000 > President, NC Real Estate Educational Foundation (NCREEF) 2005 > Leadership Academy Commissioner 2007-2009 > Committee Service – Executive, Bylaws, Finance, Recruiting and Certifying, Strategic Planning, Building Task Force, Association Executive Task force, Investment Advisory, Administrative > NCAR Director 15+ years > Life Member > NC CRS Chapter President 1986 > NC CRS of the Year 1992 Local Associations: > Greater Chapel Hill Association of REALTORS® > Raleigh Regional Association of REALTORS® > President, Chapel Hill Board of REALTORS® 1983. 1989 > Chapel Hill REALTOR® of the Year 1983, 1987 > Life Member > President, Triangle MLS 1994 > Triangle Leadership Academy Dean 2008 > Member, WCR I believe in expanding the influence of the North Carolina Association of REALTORS®. I have given encouragement as a mentor to those North Carolinians who wish to be more active in our organization on a local, state and

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national level. Please re-elect me so that I can continue working to involve our members on a national level.

NCREEF DIRECTOR REGION 4 VOTE FOR ONE CANDIDATE Donna Harnett Durham, Coldwell Banker Ward & Misenheimer Durham Regional Association of REALTORS® Education and Professional Development are at the core of my real estate business and have been from the beginning. The more you know, the better you can serve the consumer.

I want to bring some of what I’ve learned to others.

Having participated in NC REALTORS® Leadership Academy and recently graduating from the NAR Leadership Academy, I have seen that there are so many different ways of bringing professionalism to the industry. It is not about designations and degrees … it is about understanding.

Having been a REALTOR® since 1996, I have been volunteering within the organization since 1999. My experience on the NCAR Forms Committee has probably been the most enlightening education I could have ever imagined and has given me insight into the needs of many different markets including those of Region 4. I believe I have the experience to serve their needs successfully.

I have enjoyed serving as a Dean of NCREEF. Getting face to face with today’s students has helped me to understand the needs of today’s REALTOR®.

I look at education from the national, state and local perspectives. I attended my first NAR convention before becoming a general brokerage agent in order to gather some tools necessary to be successful. In addition to obtaining the GRI, CRS and ePRO designations, I have made a point of attending at least one type of seminar/workshop annually that is outside of the real estate field. Internet marketing and personal development seminars are just two examples of events that I have attended in order to gain a broader perspective on what would make an agent more successful.

We run real estate businesses … we want them to be successful. I believe that I have an awareness of what an agent needs to be successful and what tools are available and necessary to enhance the professionalism of the real estate industry and therefore the REALTOR® community.

For more information about my qualifications, go to: http://NCAR.DonnaHarnett.com REGION 7 VOTE FOR ONE CANDIDATE Mitzi Malcolm Lincolnton, Apple Realty of Lincolnton Lincoln County Board of REALTORS®

REGION 10 VOTE FOR ONE CANDIDATE Jose Serrano Raleigh, Re/Max United Raleigh Regional Association of REALTORS® I am running for re-election for Region 10 where I have served on the NC Reef Board of Directors for the past two years. Prior to serving as a Board Member, I served as a Dean of NC Reef for three years. I am currently serving my third two-year term in the Board of Directors of the RRAR and have served two two-year terms at the NCAR BOD. I have also served as vice chair and Chair of the Equal Opportunity & Cultural Diversity Committee for NCAR. I am a member of the Housing Opportunity Committee and Community Service Committee at the RRAR. I have also served as the NAR President’s Liaison to Chile for 10 years and am a member of the International Operations Committee. In the year 2000, I served as the President of the NC CRS Chapter and also serve in the NC Housing Finance Agency Hispanic Marketing Advisory Group and in the Wake County Real Estate Committee. I believe in education and have obtained five professional designations in addition to other industry related certifications.

AT LARGE VOTE FOR TWO CANDIDATES Kay Davis Lincolnton, Broker-in-Charge of Private Properties, Inc. Lincoln County Board of REALTORS® COUNT ON SOMEONE WHO CARES I have won numerous awards over the years for top production derived from quality service. I am a proven top achiever, attested to by my many satisfied local clients. I do all the necessary homework and follow up with all the details to prove a lasting commitment of service to my clients. Education has prepared me to handle all types of residential property transactions. No home is too big or too small. I strive to go above and beyond any clients’ expectations in service and insist on being straight-forward with everyone.

By educating clients through each phase of the selling or buying process, buyers and sellers alike are confident that they have made a sound decision in choosing a REALTOR® that is an experienced professional and continues to improve her skills through education.

“I believe that by helping people get what they want, I will get everything in life that I want.”

ABR/CRS/GRI: > 1988-NC Sales License > 2001-NC Broker License > 2002 ABR Designation (Accredited Buyers Representative) > 2002-GRI Designation (Graduate, REALTOR® Institute)

> 2004-CRS Designation (Certified Residential Specialist) > 2006-SC Broker License > 2006-Floyd Wickman’s S.M.A.R.T. Program > 2007-CRCBR Commercial Certificate Program > 1996 & 2001 President-Lincoln County Board of REALTORS® > 1995/1996/2000/2001/2005 Director – North Carolina Association of REALTORS® > 1995 & 2000 President-Elect – Lincoln County Board of REALTORS® > 2005-2007 NCAR By-Laws Committee Member > 2005 REALTOR® OF THE YEAR – Lincoln County Board of REALTORS® > 2002/2004/2005/2007 NCAR Forms Committee Member > 2007-2008 RPAC Chair > 2006-2008 NCREEF Dean Lincolnton/Lincoln County Chamber of Commerce: > 2000-New Member of the Year > 2001-Leadership Lincoln > 2002-2004-Member of Board of Directors > 2003-Chair/Small Business Council > 2000-2005-Member of Small Business Council > 2003-current-Member of East Lincoln Advisory Council Phillip Rector Winston-Salem, Mundy Realty Inc. Winston-Salem Regional Association of REALTORS® Over the last twenty-five years, I have been a member of the North Carolina Association of REALTORS®. My area of expertise has been in residential sales. I have enjoyed working with buyers and sellers in making their dreams come true.

I believe that your association is only as good as your members. As a member of the Winston-Salem Regional Association of REALTORS®, I have been active with the education, social community service, cultural diversity, and orientation committees. While being active with these committees, the number of activities and level of membership participation increased.

I have also been on the WSRAR board of directors for two years and presently serve as president-elect of the association.

At the same time I have been active in working with the state association. I have been active with the Equal Opportunity/Cultural Diversity committee for three years. In 2008, I was selected as dean for North Carolina Real Estate Educational Foundation and a candidate for the NC REALTOR® Leadership Academy.

I have obtained the Graduate REALTOR® Institute (GRI) and Accredited Buyer Representative (ABR) designations.

My motto for working with the local and state associations has been, It’s not what your association can do for you, it’s what you can do for your association.

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END NOTES

Celebrities Have Money Troubles, Too What do Ed McMahon, Evander Holyfield, Latrell Sprewell and Dustin Diamond all have in common? All these celebrities face housing troubles of their own, proving that no one group has gone unaffected by the housing downturn. Holyfield, a former boxer, lost his $10 million estate in Atlanta in May to foreclosure while Sprewell, a former pro basketball star, is in danger of losing his $405,000 Milwaukee home and his yacht has been repossessed. Diamond, an actor who starred in “Saved by the Bell,” saved his home by selling T-shirts on his Web site and asking fans for money on the Howard Stern Show.

Virginia County to Buy Foreclosed Homes The Washington, D.C., metropolitan region is being saddled with foreclosures faster than most other metro areas, and will now become one of the first in the nation to simultaneously combat the problem while striving to meet the need for affordable housing in the community. Officials for Fairfax County, a Northern Virginia suburb of the nation’s capital, recently authorized a $10 million initiative to purchase foreclosed homes at discount prices and make them available to moderate-income families. The county will buy 10 foreclosures outright and will use federally insured, low-interest loans to help subsidize the purchase of 190 others by eligible buyers, who can earn no more than 80 percent of the area median income.

Immigrants Head Home to Buy Property U.S. immigrants are taking their hard-earned money and spending it on homes in their native countries, thanks to private lenders and other financing that makes the real estate purchases possible.

Particularly popular are developments with Americanstyle amenities. “It’s something that’s growing,” says Romi Bhatia, vice president of international operations for the Microfinance International Corp., which makes financial services available to poor people in developing countries. “There’s a huge untapped market.”

N.J. Passes Strict Affordable Housing Law Since New Jersey’s controversial Mount Laurel Decision in 1975, in which the state’s courts said every community has a responsibility to provide affordable housing, many communities have gotten around the requirement by paying other towns to take on their affordable housing obligations. New Jersey Gov. Jon Corzine recently signed into law a requirement that every town in the state provide housing within its own

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boundaries for low- and moderate-income residents.

The reform was backed by a coalition of affordablehousing advocates and religious leaders.

Mortgage Pro Gets Jail for Stripping Home A Western Pennsylvania mortgage broker who gutted his $1.2 million foreclosed home before it was to be sold at a sheriff’s sale has been convicted of theft and defrauding creditors, sentenced to three to 15 months in jail, and ordered to pay $174,000 to the mortgage company. Scott McCuskey of Sharpsville, Pa., stripped lights, window cranks, baseboards, ceiling and window trim, cabinets, countertops, vent covers, closet shelving, doors, tub and shower fixtures, among other things.

Staging with a Human Twist in Las Vegas In Las Vegas, where thousands of empty homes await buyers, many real estate practitioners are turning to professional stagers to prepare homes for sale and potentially generate more offers. But now they are adapting a human twist. Beyond just highlighting décor, some staging companies find house sitters, who pay anywhere from 25 percent to 50 percent of the monthly mortgage payment in exchange for temporary housing. The presumption is that an occupied home is more likely to generate offers than a vacant property, say real estate professionals.

Whole Communities Are Going Greener Starting next year, the U.S. Green Building Council will begin applying a version of its Leadership in Energy Environmental Design rating system to entire neighborhoods rather than single buildings. A pilot program launched early last year attracted so much interest that officials accepted more than 200 proposals, twice the number they sought. Builder Robert Thornton is building 350 homes in Ocean View, Del., following standards set by the National Association of Home Builders’ Green Building Program.

Solar Water Heaters Now Required in Hawaii Hawaii is the first state to pass a law requiring that new homes have solar hot water heaters, beginning in 2010. Hawaii relies totally on imported fossil fuels. This is a first step toward eliminating this dependence. The new law prohibits issuing building permits for single-family homes that do not have solar water heaters. Some exceptions will be allowed, such as forested areas where there are low rates of sunshine.

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CLOSING THOUGHTS

By Tim Kent Executive Vice President

First-Time Buyer Tax Credit Opens Eyes

I

n early August, President Bush signed into law the Housing and Economic Recovery Act of 2008. A buddy of mine in the mortgage business refers to the legislation as a “stew” – in other words, it contains so many ingredients that it’s difficult to tell what’s tasty and what’s not.

For starters, though, keep one special ingredient in mind – it’s a $7,500 tax credit for first-time homebuyers.

Recently, I had the opportunity to speak at a luncheon meeting of the Salisbury-Rowan local REALTOR® association. When I started talking about the $7,500 tax credit for first-time homebuyers, the audience started to pay close attention. From the podium, I could see REALTORS® actually leaning forward to listen.

Buyers who haven’t owned a house for three years will be eligible for a tax credit equal to 10 percent of the purchase price of a home, up to a maximum of $7,500. Take note – this is a tax credit, not a deduction, and it will be retroactive for purchases made between April 9, 2008, and July 1, 2009.

So, next April, your first-time buyers will be able to effectively reduce their federal taxes by $7,500.

Not only is this an excellent incentive for renters to buy a house now, but the extra money next spring will help buy furniture, appliances or orthodontics for the kids.

First-time buyers are especially important to the health of the housing economy because their home purchases act as a stimulus for further sales up the price points. Because of the recent news associated with foreclosures and falling home prices, a lot of would-be first-time buyers have been scared back into their apartments.

J. Lennox Scott is the chairman and CEO of John L. Scott Real Estate, the dominant real estate firm in the Pacific Northwest. Scott applauds the Housing and Economic Recovery Act of 2008, especially the firsttime buyer tax credit. “The last time Congress passed legislation like this (in the 1970s), the housing market

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saw a significant increase in activity,” Scott told RSI Media. “This marks the beginning phase of the next 10-year housing cycle in which prices in the more affordable markets will only continue to appreciate.

Increased sales in the more affordable markets will set a new foundation for housing, helping to stabilize the overall real estate economy.”

Since North Carolina is projected to be a growth market over the next 20 years while most regions of the state enjoy housing affordability, Scott’s forecast bodes well for the N.C. housing market.

Now, as with any good thing, there are a few catches to the first-time buyer legislation. Higher-income homebuyers will not qualify, including single filers with $95,000 of adjusted income and joint filers of $170,000 or more. Also, think of this as a loan as the $7,500 must be paid back over a 15-year period (that’s only $500 per year). The credit also does not apply to nonresident aliens.

All things considered, it’s a pretty good deal and a nice jumpstart for the housing market.

The Saga of Newspapers Did you know that the Los Angeles Times has ended publication of its weekly real estate section?

As reported by Inman News, Times managers have begun to carry out what they call “the largest staff and production cuts in the paper’s history.” What’s the reason for the cuts? Editors say it’s because of a “continuing slide in advertising revenue.” As one friend told me recently, if newspapers didn’t have real estate and auto ads, they wouldn’t have any advertising at all.

It’s puzzling to me why REALTORS® continue to focus a large portion of their marketing dollars by advertising in local newspapers. Research indicates that at least 80 percent of all buyers initiate their search by visiting online real estate sites. More than one REALTOR® has told me that the “only reason” they advertise is because their sellers want to feel good when they open their morning paper.