Insight | November - December 2009

THE FORMS GUY

LEADERSHIP DEVELOPMENT

SOCIAL MEDIA

insight NC ASSOCIATION

® OF REALTORS ®

Navigating Web Leads Make Strategies Pay Off for You

NOVEMBER/DECEMBER 2009, VOL. 88 NO. 6

www.ncrealtors.org

PRESIDENT’S MESSAGE

By Sandra O’Connor President, NC Association of REALTORS®

Our Voice Has Been Heard in 2009!

T

here comes a time to make a mark and leave a legacy – something of value that transcends time. I have been inclined this year to look at those who have gone before and see if we could meet the measure. As I write my last column as your president, I can’t help but think about the mark we made on this year.

We began talking about love, loyalty and friendship. We demanded communication, accountability and transparency. We came to realize that the bottom line in all of this is personal responsibility. We asked hard questions this year. We looked at our core purpose and made changes that allow us to return to protecting private property rights and promoting housing affordability. Our legislative successes are strong. We have been victorious! Our voice has been heard.

We went to the grass roots and teamed with the Attorney General, the State Employees Credit Union, and others to offer real time help to consumers facing foreclosure. We implemented three pilot programs for workforce housing, our Partners Program had a banner year, and we made some tough budget calls so we could steady the ship and right our course. None of this would be accomplished except for the team effort of strong leaders. Those teams are built on strong relationships among volunteers and state and local staff that together have focused on a new horizon.

We have done a good thing! We have heeded the words spoken in 1963 by our late president, Kemp Clendenin Sr., words that ring true today: “I am firmly convinced that the real estate profession is one of the very top business professions in this whole country. It has no peer as to ethics or for working for the common good of our people. Our merchandise is land and home. Without land, there would be no life. We buy it, we sell it, subdivide it, build on it, sell it, resell it, manage it, appraise it and finance it. In one capacity or another, we all have to do with land. Home is a place for love and understanding, companionship, family life, children and security. It is a place that brings stability to our way of life. REALTORS®, our business has to do with these two most important words – land and home.”

My deepest gratitude to you for allowing me to serve this year. Together, we met our measure, and we did so through love, loyalty and friendship.

Volume 88, Issue 6 NC Association of REALTORS® Inc. Chartered in 1921 PRESIDENT Sandra O’Connor, Greensboro PRESIDENT-ELECT Mary Edna Williams, Raleigh TREASURER Tom Barton, New Bern IMMEDIATE PAST PRESIDENT Wendell Bullard, Durham REGIONAL VICE PRESIDENTS Ernie Wilkinson, Atlantic Beach, Region 1 George Laney, Wilmington, Region 2 Steve Cohen, Fayetteville, Region 3 Preston Edwards, Durham, Region 4 John Newman, Jr., Greensboro, Region 5 Paul McGill, Winston-Salem, Region 6 Sheila Rudisill, Lincolnton, Region 7 John Byers, Charlotte, Region 8 Aric Beals, Charlotte, Region 8 Kirk Booth, Asheville, Region 9 Donna Parker, Cary, Region 10 Elizabeth Allardice, Raleigh, Region 10 EXECUTIVE VICE PRESIDENT Tim Kent EDITOR Kevin Brafford ASSISTANT EDITOR Barbara West 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

Sincerely,

Insight (USPS 017602) is published bi-monthly by the NCAR Management Corp., 4511 Weybridge Lane, Greensboro, NC 27407. Member subscriptions of $3.90 are covered by annual membership dues. Periodicals postage rates paid at Greensboro, NC.

Sandra L. O’Connor

POSTMASTER: Send address changes to Insight; 4511 Weybridge Lane, Greensboro, NC 27407.

Advertising of a product or service does not imply endorsement, unless specifically stated.

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

Administrative Tim Kent Executive Vice President Anne Shoemaker Chief Operating Officer Bryan Jenkins Chief Financial Officer Denise Daly Membership Records Coordinator/Bookkeeper Diane Greene Director of Community Outreach

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Pam Haire Director of Leadership Development Sherry Harris Administrative Assistant Amanda Lowe Accounting Assistant Phyllis Lycan Accountant Donna Peterson Executive Assistant to the EVP

Communications Kevin Brafford Director of Communications and Marketing Julie Woodson Director of Public Affairs Samantha Ashburn Website Coordinator

Cady Thomas Director of Regulatory Affairs David McGowan Political Specialist Mary Catherine Green RPAC Manager

Barbara West Communications Specialist

Marketing and Business Development Kristin Miller Marketing Specialist

Legislative Rick Zechini Director of Government Affairs

Professional Development Chris Rhodes Director of Professional Development

November/December 2009

Ellie Edwards Professional Development Assistant Director Legal Will Martin General Counsel Monica Huckaby Legal Assistant Events Mandy Lowe Events Director Keri Epps Meeting Planner

For all the latest news and business tools, check out www.ncrealtors.org.

Standard Contract Forms Download forms software directly from our website.

Free Web Page Use this free marketing tool to connect with your customers online.

Online CE Complete elective continuing education requirements at your convenience using RECampus.

Discounts on Insurance and More Great discounts on the products and services you use every day from NCAR’s REALTOR® Partners.

Insight November/December 2009

IN EVERY ISSUE 2

President’s Message

6

Editor’s Desk

6

By the Numbers

7

Events Calendar

16

Inside NC REALTORS®

26

End Notes

28

Closing Thoughts

Cover Story

20

The latest hot thing in the marketplace, online generation strategies, can significantly help your bottom line when utilized properly.

Features 8

Five Minutes With …

Patrick Morgan of Cedar Falls Realty in Boone realized years ago that he didn’t want a 9 to 5 job.

Under the heading of Be Careful What You Wish For, he now works 70 to 80.

10

Savory … Sensational … Savannah Beautiful weather, an outstanding array of speakers and education sessions, and dynamic entertainment made for an outstanding 2009 Convention & Expo in Savannah.

Departments 9 15 18 22 23 24

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November/December 2009

Leadership Development Government Affairs The Forms Guy Social Media Realfast REALTOR® Benefits

EDITOR’S DESK

By Kevin Brafford Editor

A Sign of the Print Publication Times

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f your eyes are focused on this page, you’re probably an avid enough reader to be cognizant of the demise of print publications in the United States.

The recession has served as cyanide to many newspapers and magazines already reeling from dwindling advertising revenue and readership because of myriad reasons, among them the “real time” news that’s now coveted – and available at a fingertip.

Trade association magazines, which are how Insight is categorized, haven’t been immune to the plight. Most, including this one, are subsidized by member dues in addition to ad revenue, and losses in the line items of both understandably have led associations to assess their magazines’ value as a communications tool.

Due diligence took us that route this year. In late summer, we randomly surveyed 400 of our members to learn how you feel about Insight, and we were

The numbers tell the story. $2.3 In billions, the amount of money saved by borrowers who refinanced in the first half of 2009.

40 In millions, the number of homeowners who spent 30 percent or more of their pre-tax income on housing in 2008. $71 In billions, the amount of interest-only loans that will reset in the next 12 months.

740 Credit score needed in 2008 to qualify for the cheapest mortgage rates, compared to a necessary score of 660 during the “boom years.”

102,700 Number of N.C. jobs expected to be lost in 2009, down from 120,000 in 2008.

357,000 As of mid-September, the number of buyers who had been motivated by the $8,000 first-time homebuyer tax credit.

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pleased to find out that, across the board, more than 80 percent found our magazine to be valuable in all areas. Further, 367 (91.75 percent) answered that at only $2.50 annually per member in 2009 (reduced thanks to a streamlining of expenses), Insight is a reasonable expense of their dues dollars.

Also, two-thirds indicated they’d more likely read a print version only versus an online version only.

Thus while some REALTOR® associations have eliminated their print publication entirely, we think that would be a mistake – and that Insight is a valuable member service we deliver directly to your mailbox. That said, given our decrease in membership during the past 18 months and that ad sales continue to lag, at best, in this economy, we’ve decided to print the magazine quarterly in 2010. So look for your first issue next year to arrive in midJanuary, and every three months thereafter.

EVENTS CALENDAR

Key Dates in the Coming Months November 11-16

NAR 2009 Conference & Expo

San Diego

November 16-19

GRI 200

Charlotte

December 3-4

CRS 205

Greensboro

December 7

CRS: Maximize Your Potential

Greensboro

January 19-22

2010 NC REALTORS®’ Inaugural Meetings

Raleigh

January 19

Spokesperson Training

Raleigh

January 20

Vision Quest

Raleigh

January 21

Inaugural Gala

Raleigh

March 15-18

GRI 200

Greensboro

April 16-20

NAR AE Institute

Quebec City

May 10-15

NAR Midyear Meetings

Washington, D.C.

June 7-9

NC REALTORS® Legislative Meetings

Raleigh

June 9

Legislative Day

Raleigh

August 23-26

GRI 100

Asheville

September 19-21

NC REALTORS®’ 2010 Convention & Expo

Myrtle Beach

October 11-14

GRI 200

Chapel Hill

October 25-28

GRI 300

New Bern

November 3-8

National Association of REALTORS®’ 2010 Convention & Expo

New Orleans

November/December 2009

INSIGHT

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FIVE MINUTES WITH ...

Name:

Patrick Morgan

Location:

Cedar Falls Realty

Firm:

Boone

Local Association:

High Country Association of REALTORS®

I went to Appalachian State in 1994 and just stayed.

I really decided I didn’t want to go anywhere else. I love Boone and Appalachian; it has a very different atmosphere, that college town feel. Coming from High Point, I found the cool summers were a plus. And getting away from the humidity was a welcomed change, too.

A lot of my friends from Appalachian weren’t lucky enough (as we see it) to have stayed in Boone. I still go to a lot of Appalachian games.

Several of my friends who grew up in Boone, and then went to App, stayed here, so we all get together for football games. We have a lot of Appalachian graduates in my office – four out of seven, to be exact.

You really get accustomed to Boone winters, and it’s really not that much to deal with after you’ve been here for a while. Our first snow is usually within seven days of Halloween – you can count on it. It may be just a dusting that you wake up to, but it’s always around that time, like clockwork. And quite often, we still see snow in April.

what my grandparents did. We’re lucky, because he gets to see them quite a bit.

My son doesn’t walk, he runs. He runs everywhere.

He refuses to walk. He’s tall enough that he can reach most things and he’ll go out the door in a heartbeat if you’re not watching him. He’s also talking a lot, or, I should say, he’s jabbering a lot.

his dad gettriindeg ready Patrick and mo for a torcycle

I realized a long time ago that I didn’t want a 9 to 5 job. Ironically, I now have one that’s 70 to 80 hours a week. I grew up in a family of contractors and real estate people, and I got my real estate license while I was still in college. I started practicing real estate as soon as I graduated. Just a few years after that, I started Cedar Falls Realty.

My son is just like me. Or at least that’s what everyone says. He can be stubborn but yet as nice as can be. Two-year-olds want their way no matter what – and they usually get it. He’s absolutely spoiled by his grandparents. They say they’re just paying me back for

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I’m really kind-hearted, even if I don’t act like it.

I’m stubborn, too, but I’m a Taurus, so that part’s to be expected. I’m not sure people would think I’m not nice, but I don’t put it out there a lot. When you own a business, sometimes you have to be the bad guy. I’d rather play that role than my agents. I always say they can blame it all on me if they need to.

I bought myself a motorcycle for my birthday one year. I love riding it on the Blue Ridge Parkway and other mountain roads. There are a lot of roads where you can go to just get away from the heavy traffic and highways. I grew up riding motorcycles, and my dad still rides and has been riding for as long as I can remember.

I try to go to the Caribbean at least once every year to go diving. I especially like going to Grand Cayman. I got certified about seven years ago and to keep it up, you are supposed to go diving every six months. If you don’t go every year and a half, you have to do a refresher course and, believe it or not, there is actually a dive center in Boone. They teach you in a pool and you do some classroom work and then there are quarries in the area and you go there where they’ll check you out. I think the university actually offers diving classes.

LEADERSHIP DEVELOPMENT

By Pam Haire Director of Leadership Development

Vision Quest 2010 Will Prepare You to Lead

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f you are getting ready to take on the challenge of leading your association, board or a committee in the coming year, you will not want to miss Vision Quest 2010, to be held on Wednesday, Jan. 20, at the Marriott City Center in downtown Raleigh. This program will give you the tools, resources and inspiration you need to be successful in the coming year.

Vision Quest 2010 offers new and veteran leaders the opportunity to hone their skills and learn new ideas for effective leadership from top trainers and motivators. This annual leadership development program focuses on preparing REALTOR® volunteers for association leadership, but is open to all members who want to take their leadership skills to the next level.

The coming year marks the first time that Vision Quest will be held in conjunction with the Inaugural meetings. This change is the result of a recommendation from the Program Audit Task Force and approval by the Executive Committee. The charge of the Program Audit Task Force was to examine Association programs with the intent of promoting greater efficiency and cost-savings without compromising the overall mission. Many of the volunteers who attend Vision Quest also attend Inaugural meetings; it can be burdensome to attend both events within a six-week period, particularly for those driving long distances.

The registration fee of $50 includes a networking reception on Jan. 19 from 6 to 7 p.m., and all sessions, continental breakfast and a luncheon with invited guest Steve Brown (from the National Association of REALTORS®) the following day.

Sessions will begin at 9 a.m. Attendees will also receive the Vision Quest manual, a volunteer’s guide to leadership resources. A program brochure with detailed schedule may be downloaded from our website: www.ncrealtors.org and questions may be directed to Pam Haire at phaire@ncrealtors.org or 1-800-443-9956, ext. 237.

A block of rooms has been reserved at the posh new Raleigh Marriott City Center at a cost of $145 per night (single or double), subject to state and local taxes. The deadline to reserve rooms at the discounted rate is Tuesday, Dec. 29. Please contact the hotel directly at 919-833-1120 to make a reservation: ask for the NC REALTORS® room block to receive the discounted rate.

Here’s a brief look at the conference sessions:

Running Dynamic Meetings Through Parliamentary Procedure: Jim Slaughter Enjoy a fast-paced and entertaining look at running effective board meetings. Use parliamentary procedure and Robert’s Rules of Order to make your Jim Slaughter meetings shorter and legal. This session will help you preside like a pro and give you the confidence necessary to handle future meetings with skill.

Jumping in the Driver’s Seat: Jay Gubrud This session empowers people to improve leadership skills and cultivate personal productivity. Today’s competitive and changing business environment demands that people must have an innate sense of personal responsibility for their work, their actions, and their relationships. This program will demonJay Gubrud strate how to increase personal effectiveness.

Speed Traps, Pot Holes & Idiots: Jay Gubrud “Speed Traps, Pot Holes & Idiots” is designed to help your members eliminate the everyday roadblocks to their success and maintain a winning mindset.

Gubrud takes the best of all his programs and incorporates them into one dynamic look at how to obtain success both professionally and personally.

The Power of One: Chip Scholz In this presentation, Scholz speaks to the power that each of us has individually, and how that power can be aligned in an organization to create “one” entity capable of achieving great results. The session focuses on what we can do to find, develop and use our strengths – and minimize those things that sabotage us – to create truly exceptional outcomes.

Chip Scholz

VisionQuest 2010: Wednesday, January 20 Marriott City Center in Raleigh, NC Visit www.ncrealtors.org to download a brochure

November/December 2009

INSIGHT

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Thanks to the many sponsors, contributors and item donors listed below, the Homes4NC American Dream Auction at the 2009 Convention and Expo was a big success, grossing nearly $15,000 for our affordable housing efforts.

SPONSORS:

CONTRIBUTORS AND ITEM DONORS: 2-10 Home Buyers Resale Warranty Agent 360 Albemarle Area Association of REALTORS® Ann Hockaday Ballantyne Hotel & Lodge Battleground Restaurants, Inc. Bill and Jan Bass, Asheville Brunswick County Association of REALTORS® Burke County Board of REALTORS® Carolyn Kasdorf, Homes4NC Past President Carteret County Association of REALTORS® Catherine Mitchell, Charlotte Catawba Valley Association of REALTORS® Charlotte Regional REALTOR® Association Charlotte Regional Visitors Authority Cindy Chandler, Charlotte Cle Newsom, Homes4NC Director Cleveland County Association of REALTORS® Credle’s Adventures Daniel Nicholson, Morehead City Danny and Faye Brock, Wilmington David St. Clair/New York Life David West, Homes4NC Director Dede Carney, Homes4NC Director Don and Lynn Harris, Wilmington Donna Parker, Cary Dot Munson, Charlotte Dr. Eugene F. Young, Shelby Duke University Golf Club Durham Regional Association of REALTORS® Ellen Hunter, NC Author Fayetteville Regional Association of REALTORS® Frame Warehouse

Savory …

Sensational …

Savannah NC REALTORS® Convention & Expo Recap

I

f you weren’t able to make it in late September to historic Savannah for the 2009 Convention & Expo, you missed a grand time! Beautiful weather, an outstanding venue and a wonderful lineup of speakers, education sessions and entertainment made for a memorable three days.

Among the highlights were Bob Fowler of High Point being named REALTOR® of the Year, a keynote address delivered by Mike Schlappi and the Monday night Dance Party.

At the general membership meeting, many outstanding volunteers were honored for their contributions, including Regional Service Award winners Larry McNeill (Region 2, Brunswick County); Fen Adcock (Region 4, Durham); and Kathy Carpenter (Region 5, Greensboro). The Ben Ball Community Service Award was presented to Ed Price of High Point, and Bob Measamer of Fayetteville was honored with the Hall of Fame Award.

President Sandra L. O’Connor addresses attendees during Sunday’s opening session.

REALTOR® of the Year Bob Fowler (left) of High Point receives congratulations from the previous year’s recipient, Bob Measamer of Fayetteville.

Keynote speaker Mike Schlappi shared his inspirational story of preservation and triumph during the opening session.

NC REALTORS® gathered poolside at the Westin for the opening reception on Sunday evening.

(CONTINUED ON PAGE 16)

Gail Bell, Shelby Greensboro Regional REALTORS® Association Greenville-Pitt Association of REALTORS® Harpers Restaurants Harry Munson, Charlotte Hewlett Packard High Point Regional Association of REALTORS® Hilton Charlotte Executive Park Jane Rogers, Burnsville John and Kim Hirchak, Wilmington John Newman, Homes4NC President Kathy Carpenter, Homes4NC Director Ken Allen Kim Dawson, Chapel Hill Kim Evans, Asheville Larry & Nancy Merrill, Asheville Mae Springs Maggie Valley Club Marlene Peeler, Shelby Maurice Johnson, Pinehurst McDowell Board of REALTORS® Michelle Hicks, Charlotte Mill Creek Golf Club NC Association of REALTORS® NC Housing Finance Agency NC Real Estate Educational Foundation Neuse River Region Association of REALTORS® Oak Valley Golf Club Office Depot Outstaffing Pam Hill, Homes4NC Director Parker Creech, Raleigh Paul McGill, Winston-Salem Phyllis Furr St. Clair, Charlotte Pinehurst-Southern Pines Association of REALTORS® Raleigh Regional Association of REALTORS® River Dunes Roger Parham, Charlotte Sandra O’Connor, NCAR President Seven Lakes Country Club Sheila Rudisill, Lincolnton Sheraton Myrtle Beach Sue Millager, Homes4NC Director Syndie Byrd, Emerald Isle The Waynesville Inn Washington Redskins Westin Savannah Harbor Wilmington Regional Association of REALTORS® Winston-Salem Regional Association of REALTORS® Zan Monroe, Fayetteville

Convention

(CONTINUED)

As always, members found fun things to occupy their time during the widely popular Expo.

Convention & Expo volunteer co-chairs Kathy Carpenter and Deb Hays were honored by President O’Connor during Tuesday’s membership meeting.

A variety of wonderful donated items marked the Homes4NC American Dream Auction, which for the first time was held during the Convention & Expo.

Members of the 2009 Leadership Academy class were graduated during the membership meeting. From left: Keith Richard; Mary Martin; Marc White; Linda Trevor; Kim Endre; Jamie Moss-Godfrey; Teresa Pitt; Amy Hedgecock; Greg Payne; Mary Ann McCarthy; and Ray Burton.

David Wheeling of Asheville (right) won the raffle that netted him the original of a William Mangum painting of Savannah commemorating the 2009 Convention & Expo. The artist stands at left.

Magnify the Level of Your Communication Skills.

Attend Spokesperson Training to Help You Become More Effective in Communicating the REALTOR® Message.

T

he North Carolina Association of REALTORS® once again is pleased to offer Spokesperson Training – annually one of our most popular programs. It will take place from 9 a.m. to 4 p.m. on Tuesday, January 19 in conjunction with the 2010 Inaugural Meetings. The site is the dazzling new Raleigh Marriott City Center in the heart of downtown.

Spokesperson Training is designed for incoming local presidents and presidents-elect who want to improve their skills in dealing with the media. However, the program is available to all NC REALTORS® members who wish to hone their public speaking ability – whether it is at a podium or in a one-on-one interview opportunity.

This workshop will be led by Peter Mosca of BAK Communications in Howell, N.J. The morning session – “Essential Public Speaking Skills” – promises that attendees will be less apprehensive about public speaking and also be more comfortable with preparing and writing a public speech. The afternoon session – “Understanding Media & Media Relations” – provides a greater understanding of media relations as a discipline, promotes ways of building positive relationships with the media, and increases the understanding of news and news organizations.

To maintain the program’s effectiveness, space is limited to 30 attendees. Spokesperson Training typically sells out quickly, so don’t delay – register today!

Instructors: Date: Time: Class Fee: Cancellation Policy: Location: For More Information Contact:

Peter Mosca, BAK Communications Tuesday, January 19, 2010 9 a.m.-4 p.m. (buffet lunch from noon to 1 p.m.) $125 by December 31, 2009 $175 after December 31, 2009 $50 Marriott City Center Raleigh, NC Keri Epps at 800-443-9956 or kepps@ncrealtors.org

The entire Registration Form must be completed.

Please mail or fax the Registration Form along with your registration fee. Make checks payable and mail to: NCAR, 4511 Weybridge Ln., Greensboro, NC 27407. Phone: 800-443-9956 Fax: 336-218-0463

Name Company Address City

State

Phone

Fax

Zip

E-mail PAYMENT INFORMATION:

VISA/MasterCard

Check

Name on Card Card Number

Exp. Date

Signature

3 Digit Code

RE License Number Please check here if you have a disability which will require services at this course, and attach a description of your needs.

V I S I T W W W . N C R E A LT O R S . O R G F O R M O R E I N F O R M A T I O N .

Separate Yourself from the Competition...

Earn the GRI Designation

North Carolina

According to the 2008 National Association of REALTORS® member survey, REALTORS® with a designation earned over twice the median income of those who hold no designation.

There are many designations out there so it can be difficult to choose where to begin. Why not start with the most recognizable REALTOR® designation in the United States? Start with your GRI! >> The North Carolina Real Estate Commission exempts REALTOR® Institute graduates from thirty hours (Part III) of the ninety-hour Post-Licensing Course. >> Most of the GRI courses are approved for Elective CE Credits. Students can take care of the elective course requirement for the current licensing period, and even carry an additional four hours over to the next licensing period. >> CRS core credits are built into the GRI curriculum, enabling students to get a head-start towards earning the CRS designation. >> UNLIKE MOST OTHER DESIGNATIONS, NO ANNUAL FEE IS REQUIRED TO MAINTAIN YOUR GRI >> Four of the GRI courses provide a seven-hour appraisal license credit.

Visit the Education & Events page of www.ncrealtors.org to obtain a registration form.

2010 Course Schedule January 1 1-11 4 Raleigh, GRI 100 McKimmon Center/NC State February 2 2-2 25 Charlotte, GRI 300 Marriott Executive Park March 1 5-11 8 Greensboro, GRI 200 NC Association of REALTORS® Office April 1 9-2 22 Wilmington, GRI 100 Coastline Conference & Event Center August 2 3-2 26 Asheville, GRI 100 Doubletree Hotel Biltmore October 1 1-11 4 Chapel Hill, GRI 200 The Carolina Inn October 2 5-2 28 New Bern, GRI 300 Hilton New Bern/Riverfront November 1 5-11 8 Charlotte, GRI 200 Marriott Executive Park December 1 3-11 6 Greensboro, GRI 300 NC Association of REALTORS® Office

See the 2010 GRI brochure for more details and registration

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GOVERNMENT AFFAIRS

By Julie C. Woodson Director of Public Affairs

Challenges Met Successfully in 2009 Session

T

he 2009 legislative session began in May and ended in August after heated debate on the state budget. Facing a multi-million dollar shortfall, it was apparent legislators were considering all options to find additional dollars.

However, the budget was not the only issue important to REALTORS® being discussed. While being heavily involved with budget negotiations, staff was simultaneously taking an active role in legislation dealing with homeowners insurance and the “Beach Plan,” home inspections, appraisals, and many other issues.

Following are some of the hot topics from the 2009 session: Taxes Because of the significant budget deficit, legislators were considering taxing services, increasing the privilege license tax (from $50 to $200), taxing LLCs, limiting the personal income tax deduction for mortgage interest, and eliminating the personal income tax deduction for property taxes.

The NC Association of REALTORS® successfully halted all of these potential taxes. “Defeating tax proposals that are harmful for our industry was certainly a significant accomplishment,” says Rick Zechini, NC REALTORS® director of government affairs. “However, these victories can’t be celebrated for too long. There will continue to be an examination of the state’s tax code. House and Senate finance committee leaders will continue to meet to review the tax code and consider the idea of restructuring our state tax system. There could even be a special legislative session to consider such reform. We’ll continue to be engaged on this issue.”

Homeowners Insurance and Beach Plan Legislation At the forefront of the 2009 session were homeowners insurance issues and legislation. At the heart of the issue is the “Beach Plan,” which is the state insurance program that offers insurance to coastal property owners who are not otherwise able to obtain it on the voluntary market. As a result of our involvement, legislation was enacted that will benefit insurance consumers throughout the state and improve insurance availability and affordability.

Home Inspector Legislation The NC REALTORS® government affairs team crafted and successfully sought the enactment of legislation that will improve home inspection reporting and

increase the professionalism of the home inspection industry. The legislation changes the reporting requirements to clarify ambiguities and provides greater certainty for inspectors, their clients and REALTORS®.

HVCC Moratorium and Appraisal Management Companies Staff has been working closely with NAR, our Congressional delegation, the state legislature and state regulatory agencies to address recent issues with appraisals in North Carolina.

The implementation of the Home Valuation Code of Conduct (HVCC) has led to appraisal management companies (AMCs) having an increased role in the real estate appraisal process. In some instances, this is causing outcomes that are negatively impacting the real estate industry.

During the 2009 legislative session, we advanced legislation that would require AMCs to be regulated.

This legislation was approved by the Senate and will be eligible in the House next session. In addition, staff has asked the NC Appraisal Board, the NC Real Estate Commission and the Attorney General to support an 18-month moratorium on the HVCC so these issues may be addressed. Due to our efforts in conjunction with NAR, Reps. Howard Coble, Bob Etheridge, Virginia Foxx, Walter Jones, Patrick McHenry, Mike McIntyre, and Heath Shuler all have agreed to co-sponsor the moratorium legislation.

Property Tax Reprieve and Building Permit Extensions Two bills that provide needed assistance to the real estate industry were approved by the General Assembly. One bill temporarily defers the property taxes due on unsold, new homes that have never been occupied for up to three years or until the house is sold. The other bill automatically grants a six-month extension of building and development permits as a way of providing relief to those builders and developers who have had to idle building projects while they wait for the economic recovery.

For more information and additional issues that were discussed during the 2009 Legislative Session, visit our website at www.ncrealtors.org and click on the “Government Affairs” section to find a document available for download.

November/December 2009

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INSIDE NC REALTORS®

Greensboro REALTORS® ‘R’ Rebuilding

A

Greensboro family is resting a little easier in its home today, thanks to the Greensboro Regional Association of REALTORS® (GRRA) and Housing Greensboro’s REALTORS® ‘R’ Building initiative, an opportunity for local real estate professionals to help perform needed renovations for one local homeowner.

During the course of two weekends, and with the combined help of nearly 40 GRRA volunteers, a wheelchair bound woman – whose home was essentially wheelchair inaccessible – can now move around her home with ease. In addition to improving the interior of the home, REALTORS® worked diligently clearing vines, spreading mulch, pruning trees, painting, and assisting in the repair of kitchen cabinets.

“Greensboro REALTORS® wanted to reach out to a homeowner in our community, because the needs are real,” said Kathy Carpenter, co-chair of GRRA’s Fair Housing Committee. “We have families with limited

resources enduring financial hardships and living in substandard housing. This project allowed our members to actually touch a homeowner, meet a family, and physically improve life inside their home.”

Volunteers from the GRRA pose with Housing Greensboro staff members.

Knight, Mosteller Appointed by NCREC

M

arsha Jordan of Lincolnton has been elected chair of the N.C. Real Estate Commission for 2009-10, and Vic Knight of Raleigh and Alice Mosteller of Lake Junaluska are the newest appointments by Gov. Beverly Perdue to the Commission.

Jordan, a member of the Commission since 1999, is the owner of Apple Realty in Lincolnton. She entered the real estate business in 1986.

Knight, a licensed broker since 1984, is a certified appraiser and the owner of Chapel Hill Appraisals and Consultants. He previously was broker/owner of Century 21 Vic Knight Realty in Hillsborough for 10 years.

Mosteller is vice president/managing broker of the Beverly Hanks & Associates office in Waynesville.

She formerly owned Apple Realty for 18 years until selling it to Beverly Hanks in 2004. She received her real estate license in 1984.

Former NC REALTORS® President Dies

K

emp Cook Clendenin Jr. of Greensboro, past president of the NC Association of REALTORS® and our REALTOR® of the Year in 1964, died on Sept. 5 at age 77 following a brief illness.

A native of the Gate City, Clendenin graduated from Greensboro High School in 1950, where he served as student body president, and from the University of North Carolina at Chapel Hill in 1954, earning a degree in business administration.

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He served as an Air Force pilot from 1955-57 before embarking on a real estate career that spanned three decades. In 2006, he was presented with a Hall of Fame award from the Greensboro Regional REALTOR® Association.

Clendenin is survived by his wife, Addie Belle Clemmons Clendenin, two daughters, seven grandchildren and a great grandchild.

Fundraiser Total Tops $1 Million Mark

T

he Allen Tate Company has raised more than $1 million for public schools in North Carolina through its annual FUNDay event that recently celebrated its 12th year.

More than 500 Allen Tate REALTORS® gathered from all over the state for the company’s annual FUNDay public education fundraiser. Nearly $100,000 was raised on the actual “day of play,” which includes tennis, golf, bridge, and a silent auction.

“We’re so pleased to announce that the money raised from this year’s FUNDay has put us over the $1 million mark,” said Pat Riley, president of the Allen Tate Company. “We’ve raised more than $1,034,000 since we

began FUNDay a dozen years ago. And that money is returned directly to public education organizations in the communities where our REALAllen Tate Jr. enjoys fellowship with firm TORS® live members at its annual FUNDay event, a and work.” fundraiser for public education.

One More Rising Star Recipient

I

n the list of Rising Star recipients recognized in the September/October issue of Insight, Micah Shepard of the Carteret County Association of REALTORS® was inadvertently omitted.

Shepard has made quite an impression on his local association in a little more than his four years as a REALTOR®. His previous nine years of banking/financial services experience, coupled with an

ability to lead, has served the Carteret County association well. He presently serves as treasurer/chair of the Finance Committee and oversees investments for both the association and the Crystal Coast MLS. Rising Stars are recognized annually and are nominated by local associations. To be eligible to be nominated as a Rising Star, you must have been in the real estate industry for five years or fewer.

Project Hope Launched by RRAR

I

n an effort to feed underprivileged students, the Raleigh Regional Association of REALTORS® recently donated more than 400 pounds of food and $1,000 to Hope Elementary School, a charter school for at-risk urban children.

Project Hope, a food and snack drive initiated by the Raleigh Regional Association of REALTORS®’ Community Service Committee, accepted mostly nonperishable items to be used for Hope’s afterschool programs and track-out camps. It’s estimated that 99 percent of the students enrolled at Hope Elementary live below the poverty line and do not receive adequate meals at home.

“The food drive was wonderful. We really appreciate the support, and it made our kids know that other people outside of this school love and care for them,”

said Milinda Foushee, a teacher’s assistant. “They know others are pulling for them to do well in school and want to provide for them so they don’t go hungry.

We have enough snacks to last us the rest of the school year. It is truly a blessing.”

Hope Elementary students stand alongside donations from RRAR.

November/December 2009

INSIGHT

17

THE FORMS GUY

By Will Martin General Counsel

Commitment Exists in Exclusive Relationship Dear Forms Guy: I have some questions about one of the changes made to the Exclusive Right to Represent Buyer form (NC REALTORS® form #201) this past July. In the last version of the form, the buyer had a choice whether or not they would pay any difference if the fee offered to cooperating firms by the listing firm or seller was less than the fee set forth in the buyer agency agreement. In the new version, the choice has been eliminated and the form now simply states that the buyer will pay the difference. My first question is, why was the change made?

Sincerely, John Jacob Jingleheimer Schmidt Dear J.J.J.: Wow, are you the real John Jacob Jingleheimer Schmidt from the children’s song? Sincerely, Forms Guy J.J.J.: His name is my name, too. I’m the one who’s supposed to be asking the questions here, correct?

Forms Guy: You’re correct, sorry. Your question is a good one. The main reason for the change is that under the old version of the exclusive buyer agency agreement, if the buyer was interested in a property where little or no compensation was being offered to cooperating agents (FSBO seller unwilling to pay anything to cooperating agents, listing agent offering nominal fee to other MLS participants, etc.), and the buyer agency agreement provided that the buyer wasn’t responsible for paying the buyer agent any difference, the buyer agent still wasn’t excused from representing the buyer in the purchase of that property.

J.J.J.: What if the buyer doesn’t want to agree to pay any difference?

Forms Guy: If a firm is willing to relieve the buyer from any obligation to pay the difference between the agreedupon fee and the fee being offered by the listing agent or seller, the firm should consider using the Non-Exclusive Buyer Agency Agreement (form 203) instead. The “Compensation of Firm” section of form 203 specifically provides that the buyer is not obligated to pay a brokerage fee or assure the payment of a brokerage fee to the firm.

J.J.J.: Wouldn’t a firm be in the same situation under the Non-Exclusive Buyer Agency Agreement if the seller or listing firm of a property the buyer is interested in isn’t offering adequate compensation?

Forms Guy: Actually, in the compensation section of the Non-Exclusive Buyer Agency Agreement, new wording has been added that allows the firm to terminate the agree-

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ment if they are unable to negotiate a reasonable modification of the compensation terms of the agreement in situations where the compensation offered by the listing agent or seller is less than the amount inserted in the blank.

J.J.J.: So why didn’t we add that kind of wording to the Exclusive Buyer Agency Agreement, too?

Forms Guy: This was discussed at length by the Forms Committee. The feeling of the Forms Committee was that if a buyer and a firm are willing to commit to an exclusive relationship with each other, the firm ought to be committed to representing the buyer in purchasing any property described in the buyer agency agreement, and the buyer ought to be committed to paying the firm if they want to buy a property where the seller or listing firm isn’t willing to pay the firm its fee. On the other hand, in a non-exclusive relationship, the level of commitment isn’t quite the same. The buyer isn’t obligated to use the firm’s services or to pay it a fee for its services, and although the firm would be obligated to provide the same type of service it would provide under an exclusive agreement, it shouldn’t be obligated to provide those services for free if the buyer wants to purchase a property where the firm’s fee won’t be paid by the seller or the listing firm.

J.J.J.: OK, say a buyer client and I use the NonExclusive Buyer Agency Agreement. I show the buyer an MLS property listed by another firm and then the buyer decides to use a different agent to make an offer on that same property. My right to be paid isn’t protected if I use the non-exclusive agreement, right?

Forms Guy: Wrong. Your right to be paid the compensation offered by the listing firm in MLS depends on whether you were the procuring cause of a transaction that closes. The determination of procuring cause depends on an analysis of all the facts of the particular situation, but the fact that your agreement with the buyer was non-exclusive rather than exclusive would be irrelevant in my opinion.

J.J.J.: I prefer to use the exclusive agreement, but how do I persuade the buyer to sign it?

Forms Guy: For one thing, you need to be able to convince the buyer (and perhaps yourself) that you are worth your fee! And you also need to make it clear to them that they are in control of the fee situation. Note

that in paragraph 4(b)ii of the Exclusive Right to Represent Buyer form, the firm is obligated to timely inform the Buyer if the compensation offered is less than expected. So if you “timely” notify the buyer before they make an offer on the property that the compensation offered to your firm is less than the fee the buyer agreed to pay your firm, the buyer may always choose not to purchase the property if they don’t want to pay all or some portion of your firm’s fee.

And of course, the firm may also make a decision at that time to waive the right to any difference.

J.J.J.: Thanks, Forms Guy. Forms Guy: Before you go, may I ask you a question?

J.J.J.: Sure.

Forms Guy: Whenever you go out, do the people always shout …

J.J.J.: John Jacob Jingleheimer Schmidt?

Forms Guy: Dah dah dah dah dah dah dah!!

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

Diamond

Gold

Platinum

Silver 2-10 Home Buyers Warranty American Home Shield Courthouse Retrieval System

The Real Estate Book Rapattoni RBC Centura

Rentals.com ZipForm

November/December 2009

INSIGHT

19

Navigating Leads Via the Web Online Generation Strategies Pay Dividends

By Bridget McCrea

I

t’s no secret that technology has changed the way homes are bought and sold in America, where the Internet has replaced more “traditional” means of searching for available properties.

And while nine out of 10 buyers still use a real estate agent at some point during their home search, the number of them that use the Internet to find a home has risen from a slight 2 percent of buyers in 1995 to a whopping 87 percent in 2008, according to the most recent National Association of REALTORS® Profile of Home Buyers and Sellers.

NAR also found that buyers most commonly start their search process online and then contact a real estate agent. When asked where they first learned about the home they purchased, 34 percent of buyers said a real estate agent; 32 percent the Internet; 15 percent from yard signs; 7 percent from a friend, neighbor or relative; 7 percent home builders; 3 percent a print or newspaper ad; 2 percent directly from the seller; and 1 percent a home book or magazine.

Connecting the Dots Intent on connecting those homebuyers with real estate professionals, companies like HouseHunt, HomeValues and HomeGain, to name just a few, have created business models that thrive on collecting information on prospects and selling it to agents. Some of the companies sell the information on a per-lead basis, while others offer them via subscription. Figuring out which of the companies offers the highest quality leads, and at the best possible price, has gotten more and more difficult for real estate professionals who now have literally hundreds of online lead generation firms to choose from.

And even when agents find a good source of leads, transforming those contacts into actual closed deals can be challenging. National conversion rates hover around the low single digits – not exactly the motivation an agent needs to invest time and money in online lead generation. Plus, veiled by the anonymity of the Internet, buyers can hop around from site to site – making requests of multiple agents along the way – provide bogus information

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about themselves, and drop off the face of the earth at any given time. These and other factors can make establishing a trusting relationship – the very core of the agent-client dynamic – difficult at best.

Aric Beals, broker in charge at Berry Hill Realty in Charlotte, sees online lead generation as yet another way to get his property management firm’s name and brand out into the marketplace. He estimates that roughly 1 to 2 percent of all online leads turn into paying customers, but says the efforts made to glean clients from the Internet is worth it.

Beals says all new online inquiries are answered within a few hours or less, usually via email with an accompanying sample management agreement or other collateral. “We encourage them to call us, but we don’t hound them about it,” says Beals. “We want to let them know that we’re available without pushing them away.”

The biggest challenges Beals’ team faces when cultivating online leads include figuring out where

The number of buyers that use the Internet to find a home has risen from a slight 2 percent of buyers in 1995 to a whopping 87 percent in 2008

mum,” says Edwards. “After that, if I don’t hear anything, I usually discard the lead and move on.”

If the customer does show interest, Edwards then uses a follow-up system that’s based on the potential client’s purchase or sale timeframe.

“Many times the buyers aren’t moving to Cary for another year or so, which means they’ll need consistent follow up,” says Edwards, “to ensure that they don’t go off to another agent and that they stay with us.”

Making the Choice

the customers came from (the company’s website, a national portal or a referral from another customer, for example) and what their true intentions are.

“When someone says they saw us on the Internet, we’re not always sure exactly what that means,” says Beals. “It takes some investigation to figure that out, and to get to their true motivation.”

At RE/MAX United in Cary, broker Chris Edwards says a high percentage of his business comes through online channels like his firm’s website, Realtor.com and other virtual sources. About 5 percent of those leads turn into sales for Edwards, whose initial contact is an automatic email message that’s sent within five minutes. “I send out a letter, thanking them for coming to my site and asking them a few questions,” says Edwards. “If I don’t get a reply within 24 hours, I follow up with a phone call.”

After that, Edwards uses what he calls the “four touch” method of cultivating the online lead.

“They get two emails and two phone calls at mini-

REALTORS® have a wide array of choices when it comes to lead generation sources on the Internet – from tiny startups to huge, national conglomerates … and everything in between. “Stay away from companies that want to lock you into a one-year contract,” advises Christina Deal, manager of customer service for Jacksonville, Fla.-based Watson Relocation Services, whose online lead generation sources include LendingTree and RealEstate.com. “Don’t pay anything up front. You want to be able to test the leads over at least a 90day period to see if they are any good.”

Whenever possible, says Deal, make your first contact a phone call. “Find out if they’ve been speaking to another agent, what the potential buyers are looking for in a home, how they’re going to finance the deal and whether they’re pre-approved to buy,” Deal suggests. “Having that information will go a long way in helping you to establish a client-agent relationship, and will work much better than simply flying through the MLS, doing a basic search, emailing it out and moving onto the next lead.”

Deal urges real estate professionals to focus less on the success ratio of their online lead generation, and more on the long-term value that comes from cultivating even a single satisfied customer.

“We’ve had leads that didn’t turn into direct sales, but did generate referrals from prospects that loved the service they received from our agents over time,” says Deal. “So don’t throw the lead away just because it’s not doing what you think it should be doing.”

November/December 2009

INSIGHT

21

SOCIAL MEDIA

By Barbara West Assistant Editor

ActiveRain is a True Real Estate Community

L

eesa Finley, a REALTOR® from the town of Wake Forest, wasn’t surprised when she received an excited potential buyer on the other line. “I hear you’re the Wake Forest specialist,” the caller said, “and I’m interested in buying a home from you.” Finley didn’t have to wonder where the call was coming from – it was her blog. But it was not just any blog; it was through her free blog on ActiveRain.

For those not familiar with ActiveRain, you are not alone. I had very limited knowledge of this social networking site when I began this article. I thought it was simply an online chat forum for REALTORS®, you know, sort of like those AOL chatrooms that were so popular in the ‘90s. Boy, was I wrong!

Through the process of writing this column, I’ve learned that ActiveRain has multiple components, each offering a unique, valuable resource to not only REALTORS® but the entire real estate industry. Of all the social media sites we’ve discussed, this one especially asks the question: How does this work? And how can I get started immediately?

Reaching Consumers, One Post at a Time When ActiveRain began in mid-2006, the intent was simple. Create an online community comprising different real estate communities, including blogs, as a means of connecting with consumers. That mission was accomplished.

“I receive the most solid leads from ActiveRain,” says Debe Maxwell, a REALTOR® with Helen Adams Realty in Charlotte. “Mostly because the consumer has already been reading my blog for some time and has determined that I am the best person for the job.”

The exceptional relationship between ActiveRain and consumers can be primarily attributed to two things. First, the free blogs REALTORS® can create on ActiveRain and the impressive SEO (search engine optimization) that comes out of it. And second, a site called Localism.

Blogs, SEO & Localism “Active Rain’s search engine optimization is amazing,” says Finley. “I don’t know how it happens, but I’ll put a post up and within 15 minutes, the post shows up on a Google search.” Maxwell seconds that claim. “The reason ActiveRain is so beneficial to me, as a REALTOR®, is the massive amount of ‘Google juice’ we receive because so many agents are adding fresh content on a daily basis.”

And then there’s Localism. Localism is known as a “neighborhood tool,” meaning consumers can go on this site, search a particular area and find every post that has been written on it. And here’s the best part: It doesn’t have to have anything to do with real estate.

Want to write about a fishing tournament coming up, or a First Friday event downtown? Go ahead. Get the word out! The more information your potential homebuyer gets from you about their neighborhood of choice, the better off you are.

For REALTORS®: One Stop Shopping With approximately 170,000 real estate experts all in one place, it’s easy to see why this site is so appealing. One of the most widely used portions of the site for REALTORS® is the “members-only” section. This area is designed for REALTORS®, real estate attorneys, lenders, inspectors, and any other real estate related professional you can think of.

It’s here that the real estate industry gets together to discuss relevant issues impacting their business, privately. If you’ve got a question about a short sale, a concern about a buyer, or a question on how to market a particular house, this is where you can go to get tons of free advice.

“ActiveRain is great when you are writing about an issue that you wouldn’t want the consumer to know we’re talking about,” says Diane Aurit, a REALTOR® with LKN Realty in Mooresville. “It’s a great opportunity to talk amongst each other. We talk about problems we’re having with short sales, marketing ideas and a ton of ‘how-to’s.’ “ The members-only section is also an excellent way to get a pulse on what is happening in other markets.

If you’re interested in how the tax credit is impacting a particular market, or if markets in California or Colorado are seeing improvements, the conversation is already being facilitated for you.

And they are happy to share, too! “A lot of times in a local market, there is a resistance to share ideas,” says Finley. “On ActiveRain, there’s no competition!

Everyone is so willing to share!”

Getting Started: They Want to Help You! If talking directly with REALTORS® across the country, publicizing your neighborhood to consumers, and increasing your Internet presence seems appealing, then ActiveRain is for you. The next steps are easy.

(CONTINUED ON PAGE 27)

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November/December 2009

REALFAST

By John Mayes Realfast, Chief Executive Officer

Realfast2Go® 2.0 Released with ‘Offline Mode’

R

ealfast2Go 2.0 was released this fall and officially unveiled to NC Association of REALTORS® members in Savannah at the annual Convention & Expo on Sept. 27-29. Below are some of the most common questions and answers about Realfast2Go.

What is Realfast2Go? Realfast2Go is the forms software provided to you as a member benefit by NC REALTORS®.

Realfast2Go is a Web-delivered application, so it is available to you from your home or office computer.

Also, form updates are delivered automatically along with any software updates. Your contracts are stored on the secure Realfast™ server so you never have to worry about backups.

How is Realfast2Go different from Realfast Forms 6?

Realfast Forms 6, also included in your member benefits, is strictly a desktop application. You must manually install Realfast Forms 6 on your computer and then download form updates whenever they are made available from the association. forms for real estate Realfast2Go is easier to use and more flexible in that you can access the application and your contracts from multiple locations.

What is new in Realfast2Go 2.0?

Realfast2Go 2.0 adds three key features. The first is an offline mode. If connected to the Internet, double-clicking the Realfast2Go icon on your computer desktop launches the software application and connects you to the Realfast secure server. If offline (not connected to the internet), the same software application launches, but any changes made to your contracts are stored on your local computer hard drive.

The next time you connect to the Internet and launch Realfast2Go, changes you made offline are automatically synchronized with the server.

The second new feature in Realfast2Go 2.0 is an improved and easier to use “Send Forms,” “Print Forms” and “Create PDF” experience. The third new feature is automatic form and software updates that

occur in the background so you can get right to your work.

How do I start using Realfast2Go 2.0?

Existing Realfast2Go users will receive the update to Realfast2Go 2.0 automatically. If you do not currently use Realfast2Go, you can gain access the first time by visiting the Realfast website (www.realfast.com) and clicking the link in the upper right-hand corner. Your user ID is your email address on file with the NC Association of REALTORS®. Your password is “Realfast,” which we recommend you change as soon as possible. For subsequent access, double-click the new icon on your Windows desktop.

What best practices do you recommend for firsttime Realfast2Go users?

The first time you log into Realfast2Go, take advantage of Realfast support by allowing one of our customer service representatives to walk you through the key features. ® Realfast2Go is intuitive and easy to use, but a quick tour may be helpful for some users.

If you are currently using Realfast Forms 6, complete existing transactions in that application and start new transactions in Realfast2Go. Both applications will run together on your computer, but once you begin using Realfast2Go, you will recognize and appreciate the benefits over Realfast Forms 6.

Lastly, if you are currently paying for an application such as ZipForm or Formulator, test-drive Realfast2Go before starting your next contract – or writing your next renewal check. Not only is Realfast2Go the most advanced forms software application, it is included at no additional cost in your NC REALTORS® member dues. In the current real estate environment, you should consider making maximum use of that cost-savings benefit.

2go

Where can I access Realfast2Go technical support?

Realfast2Go technical support is available on the Realfast website (www.realfast.com) and by calling 800-571-0277 (Monday-Friday, 8:30 a.m. to 7 p.m.).

November/December 2009

INSIGHT

23

REALTOR® BENEFITS

Insurance/Financial

BENEFIT

DISCOUNT

As a leading Fortune 500 company, we offer comprehensive, professional financial services to help you determine and reach your financial goals. Strategies are designed to help you maximize your wealth to achieve your goals. Both personal and business financial services are offered.

Discounts on Long Term Care Insurance; Disability Income Insurance; Comprehensive Financial Planning Fees; and Retirement Contribution Protection may be available for NC REALTORS® members and to select family members.

Just contact us by phone toll free at 866-340-9915 or visit our web site at www.hinrichsflanagan.com

NC REALTORS® have access to a discounted auto insurance program with rates not available to the general public.

Over 700 agents in NC are ready to serve you with prompt & professional service. Convenient monthly payment options, 24-hr. no hassle claims service and one stop convenience for your car, home, boat, RV, motorcycle, and more!

Special auto rates not available to the general public.

Call 800-382-0661 for a no obligation quote and free insurance review today!

Be sure to mention that you are member of NC Association of REALTORS®.

Fidelity Capital Management provides insurance solutions to members including Individual Major Medical, Individual Dental and Agency Benefit Plans.

Major medical plans, enhanced dental and vision plans with low premiums and great coverage.

Call 919-876-9610 or visit www.fcmrealtorbenefits.com.

Pearl Insurance offers NCAR members access to comprehensive Real Estate Errors & Omissions Insurance, underwritten by XL Insurance. Pearl also provides customers with informative risk reduction tools and education to help them prevent claims by recognizing and minimizing their potential liabilities.

Sponsored provider of E&O coverage for NC REALTORS® since 1994.

For more information, please call a Pearl E&O Specialist at 800.289.8170 or visit www.pearlinsurance.com/eo.

Limited benefit medical plans offer the health insurance coverage many people need; doctor visits, x-ray and lab work, prescription drugs and limited hospitalization.

Although the plan is not a major medical plan, it can serve as gap coverage for members who have high deductibles, or be important coverage for those with no health insurance.

Guaranteed acceptance regardless of health conditions or age; coverage provided without deductibles, co-pays or networks.

Call 877-925-1840 or visit www.ciarealtorbenefits.com.

Sears Commercial is a complete appliance and lifestyle product resource designed specifically to meet the many special needs of NC REALTORS®.

> Gift Cards – 5 percent off all gift card sales. > Appliance Select Plus-Discount varies by item, offer extends to member clients. > Auto Discounts – $5 off on Oil Change Service plus additional discounts on tires and parts.

Visit: www.contractsales.sears.com to find your nearest Appliance Select Plus location or call 800-215-3979.

Enjoy world class service for office supplies, furniture, technology products and copy and print services at pricing typically reserved for Fortune 1000 companies.

Receive an average of 10 percent off retail prices.

Simply sign up online to receive the discount. Visit the Partner page on the NC Association of REALTORS® Web site at www.ncrealtors.org.

NC REALTORS® members receive special discounts and services on wireless solutions.

10 percent discount on monthly service plans, up to 30 percent discount on accessories and free activation with a two year contract.

Stop by any company-owned AT&T store to activate your account. Provide FAN 2017074 to receive the discount.

HOW DO I SIGN UP?

Business & Technology

A $36 per line Sponsorship Fee may apply when enrolling your account for existing customers. No sponsorship fees apply for new customers.

For more information, contact the partner of your choice at the number or Web site given.

Be sure to identify yourself as a NC REALTORS® member to get the great discounts and quality service you deserve.

Visit www.ncrealtors.org or call Kristin Miller at 800-443-9956 for more program information.

REALTOR® BENEFITS

Business & Technology

BENEFIT

DISCOUNT

HOW DO I SIGN UP?

UPS offers the most reliable express service available today and savings you can count on.

There are no enrollment fees or contracts to sign.

$1.50 off UPS Next Day Air® Letters, 10 percent off UPS Next Day Air® Package and UPS 2nd Day Air A.M.® Letter and Package, and 20 percent off UPS Worldwide ExpressSM Letter and Package

For additional discount information or to sign up, call 800-325-7000.

Bank of America delivers you a credit and debit card processing program designed specifically to meet your needs and help your business grow.

Preferred Customer Pricing.

For additional discount information or to sign up, call 434-845-9590 or email bruce.pearson@bankofamerica.com.

Carry the only MasterCard® with the NC Association of REALTORS® logo prominently displayed. When you make your next purchase, you might walk away with a listing or prospect simply by using your new NC Association of REALTORS® credit card.

Low introductory APR, no annual fee, priority customer service, and a year-end summary of charges.

Call 800-932-2775 and mention priority code FACCH9. Also, ask about the new World Points Reward program.

Handle your staffing needs the smart way: you select staff, decide compensation, and manage employees. Outstaffing will employ your staff for you and handle details such as taxes, payroll and benefits.

Preferred customer pricing.

Call 888-OUTSTAFF or visit www.outstaffing.com/ncar_index.

DeltaCom is a Southern-based premier provider of integrated telecommunications solutions. At DeltaCom, we believe in helping businesses save time and money by offering competitive pricing on local, long distance, data and internet services, all on one invoice.

3 percent association discount.

For a NO-OBLIGATION assessment of your existing local, long distance, data and internet service, simply call DeltaCom at 336-553-5699.

As a valued customer, you’ll benefit from our 23 years of experience in the real estate industry. As a result, nearly 50 percent of all residential transactions rely on our technology every single day. We’ve also leveraged that same experience to build a product line that addresses your day-to-day needs.

We have a dedicated sales force as well as 24 X 7 X 365 live tech support. That means we’re available at your most critical times. Simply put, we provide the right solutions at the right price backed by the right service. Come see for yourself, You won’t look back.

a la mode will offer NCAR members 20 percent off published retail pricing. Identify yourself as a NCAR member when ordering or enter the promo code “NCAR” when placing orders online at www.alamode.com.

You can call our Agent Sales Department at 1-800-252-6633, or visit our Web site at www.alamode.com.

Realfast2Go state of the art technology gives you instant access outside of the office. It is an easy, anytime, anywhere tool to provide you with contract forms over the internet.

It’s New, it’s easy, it’s fast, it’s Realfast and it’s free to NC REALTOR® members!

FREE to NC REALTORS® members.

Visit www.realfast.com and follow the links to Realfast2Go. Your login name is your email address and your password is realfast.

Call 800-571-0277 for assistance.

zipLogix introduces zipForm® 6, the enhanced version of their powerful, easy-to-use contract software designed to help real estate professionals increase efficiency all while reducing risk. Also available-special broker services to help broker’s set themselves apart from the competition.

NC REALTORS® member prices: $69.90-zipForm® 6 Standard (offline) or zipForm® 6 Professional (online) or $94.90 for both (Reg. $129.85 and $179.90)

Visit www.ziplogix.com/zf6 to order or call 800-383-9805. Brokers call: 866-627-4729

Formulator software is the name you trust since 1988.

Call about the New! Formulator Desktop or Online Software that streamlines and simplifies your Forms & Contracts preparation!

NC REALTORS® member special prices are $119.95 for Formulator DesktopTM. or the New! Formulator OnlineTM. (Retail $199.00)

Call Formulator sales at 800-499-9612 or our online store at www.formulator.com.

Forms

®

forms for real estate

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END NOTES

New Orleans Breaks Ground on Project U.S. Housing and Urban Development Secretary Shaun Donovan was in New Orleans recently to tout the progress of the renovation of public housing in the city.

Before Hurricane Katrina, New Orleans was dotted with barracks-style brick apartments, many of them more than 50 years old and almost all of them in terrible condition.

After the hurricane, nearly all of this public housing was demolished, despite protests from those who believed it left thousands of minorities homeless, ultimately driving them out of the city they called home. Donovan helped break ground on Lafite, which will include 1,500 homes and apartments with 134 of the affordable rental units built by December 2010.

Nonprofit Focuses on Foreclosures Nonprofit housing organizations and major lenders with funding from foundations – including MacArthur Foundation, Ford Foundation, and Open Society Institute – have joined together to form the National Community Stabilization Trust. This new organization will make it easier and more feasible to transfer foreclosed properties from financial institutions to locally designated community housing providers so the properties can be renovated for new homeowners and renters. The effort will kick off with a share of the $6 billion the U.S. Department of Housing and Urban Development is using to fund the Neighborhood Stabilization Program.

Condo Associations Seek Legal Action Angry condo associations are turning to the courts for help in forcing owners behind on their fees to pay up.

The courts are responding by holding owners who don’t pay in contempt of court, and some could face arrest. The problem of no payment is particularly acute in Florida, where condo values have fallen dramatically. For instance, in the Orlando area, the median price of a condo has fallen about 70 percent in the past two years from $156,500 in August 2007 to $49,800, according to the Orlando Regional REALTOR® Association. Without court enforcement, the associations are likely to go under, leaving the remaining owners with few options beyond abandoning their own properties.

Texas Tops States With High Closing Costs Closing costs, including origination and title fees, can drive the cost of a home purchase higher than buyers anticipate, according to a new study released by Bankrate.com. Nationally, Texas has the highest closing costs at an average fee of $3,855, with New York City, Florida, San Francisco, and Oregon rounding out the top five. Nevada is at the bottom of the closing cost list with an average fee of $2,276. Other states with the lowest closing costs are Kansas, Indiana, Maine, and Vermont.

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November/December 2009

Bankrate.com only listed the five most expensive and least expensive.

Coldwell Banker Grows Video Sales Channel Coldwell Banker is working with YouTube to create a branded channel to offer home sale videos. So far, there are more than 3,000 video feature tours available, which is about 1 percent of the total homes the company has for sale. Michael Fischer, senior vice president of marketing for Coldwell Banker, says it’s a challenge to get real estate practitioners to overcome their fear of the camera. To help more practitioners take the plunge, he’s added a how-to video on the company intranet. To lessen the fear that YouTube tours will linger past the sales date, Coldwell Banker has linked the video listing to listings on the corporate website. When one goes, the other goes.

Pulte Tries New Marketing Approach Pulte Homes recently hired an automobile marketing veteran to help it brand its properties and attract buyers at every stage in life. Pulte’s new strategy will push its three distinct home-building segments: Centex for first-time buyers, Del Webb for the over-55 crowd, and Pulte’s traditional market, the move-up buyer. Pulte’s new hire, Deborah W. Meyer, who previously sold Lexus, Chrysler and Ford, says her first task is to define Pulte’s brands clearly so that potential buyers know which brand is most likely to meet their needs.

Survey Shows Huge Gap in Markets A comparison of similar 2,200-square-foot, fourbedroom homes in 310 U.S. markets by Coldwell Banker found an enormous price disparity between the lowestand highest-cost areas. Grayling, in north-central Michigan, ranked as the most affordable market in America, where a home of that size costs $112,675.

Fayetteville, N.C., ranked third among the most affordable markets with a four-bedroom, 2,200-square-foot home costing $130,875. La Jolla, north of San Diego, led the list as the most expensive real estate market in the country with a comparable home cost of $2.125 million.

La Jolla was joined on the most expensive list by 13 other California markets, while Grayling was one of 20 Midwest communities on the most affordable list.

IRS Scrutinizes Mortgage Deductions According to published reports, the Internal Revenue Service is more closely examining how taxpayers are reporting mortgage interest deductions. The IRS is reportedly examining some returns with high deductions for mortgage interest and enforcing obscure rules that most homeowners and many accountants could be unfamiliar with. The calculations are very complex and

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rely on precise records that some homeowners may have trouble producing.

Credit Crunch Constrains International Buyers Interest in U.S. real estate by international buyers declined due to the worldwide recession and severe credit crunch, according to the 2009 NAR Profile of International Home Buying Activity. The share of REALTOR® clientele who are foreign buyers is smaller than in previous years, but among those purchasing, nearly half paid all cash – bypassing the mortgage process. Twenty-three percent of survey respondents served at least one international client in the 12month period between the end of May 2008 and the end of May 2009, down from 26 percent in the 2008 study. During this period an estimated 154,000 homes were sold to foreign nationals, which is down from approximately 170,000 international transactions during the previous 12 months.

Bank VP Fired for Parties in Foreclosed Home Outraged neighbors ratted on a Wells Fargo & Co. employee who threw lavish parties at a foreclosed home in pricey Malibu, Calif. Shortly after the parties were reported, the bank confirmed the employee had been fired. Wells Fargo took possession last May of a beachfront mansion valued between $12 million and $25 million. The previous owner was reportedly wiped out by the Ponzi scheme run by Bernard Madoff. Instead of putting the property up for sale or letting it stand empty while the foreclosure was completed, Wells Fargo’s senior vice president in charge of commercial foreclosed properties for the bank, apparently used the place to entertain friends, including transporting guests from a yacht moored offshore.

Within a few days of signing up on ActiveRain, you’ll receive a welcome email from someone in the new member services department. In this email, the department will encourage you to ask them questions. The department even suggests you call its representatives when you’re in front of a computer, so you can be walked through the site and get any immediate questions you have answered. They want to help you.

Then there’s the Ambassador program. When a new member joins ActiveRain, they have access to an ambassador that’s there to help and guide them.

“Among several things, I teach new members about SEO, using keywords in articles, and the importance of consistency,” says Maxwell, a N.C. ambassador.

“We become their mentors until they can fly alone.”

“If you listen to what your ambassador says, you will succeed,” says Aurit. “We are all there to help each other.”

It’s difficult to say ‘no’ to so much encouragement, isn’t it? Then why would you? Go to www.activerain.com and begin networking today.

Florida Insurers Drop Drywall Victims Florida homeowner policyholders who made claims related to defective Chinese drywall are being told by their insurers that if the damage to their homes isn’t repaired in six months, their policies won’t be renewed. Insurers sending out those notices include Citizens Property Insurance Corp., the state-owned nonprofit, which is Florida’s largest home insurer. Citizens says it hasn’t paid any drywall-related claims because there are policy exclusions for pollution and builder defects, but the corrosion apparently caused by the drywall could lead to future claims for fire or water leaks.

Economists Predict Housing Recovery Economic forecasters predict that 2010 will be the first year since 2005 for housing to contribute to the growth of the U.S. economy, according to a survey released by the National Association for Business Economics. Home prices are expected to rise two percent next year, but forecasters don’t believe the increase in prices will discourage homebuyers. More than 80 percent of economists surveyed by the NABE think the recession is over and recovery has begun.

November/December 2009

INSIGHT

27

CLOSING THOUGHTS

By Tim Kent Executive Vice President

Relevant Words … And Better Days Ahead “Whoa, we’re half way there Whoa oh, livin’ on a prayer” – Bon Jovi My colleague in Virginia, the erudite and witty Scott Brunner, calls “Livin’ on a Prayer” maybe the best rock and roll song ever. That’s debatable, but it is certainly the most relevant song these days to the 37,000-plus members of the NC Association of REALTORS®.

In the past two years, at least 7,500 NC REALTORS® have gotten out of the business.

Some industry survivors are working retail or waiting on tables to help pay the bills. Firm owners have seen their margins pinched to the limit and are cutting loose unproductive agents, while some are using lines of credit just to keep the lights on. Longtime appraisers are struggling financially with the unintended consequences of the Home Valuation Code of Conduct (HVCC).

“We gotta hold on ready or not You live for the fight when it’s all that you’ve got” But it looks like the worst is over for those who have kept fighting. We have seen some signs recently that the bottom has been reached and that housing is on the rebound. Inventory levels have been reduced, some builders are gingerly resuming their trade and, in some markets, we’re beginning to see multiple offers again. Industry expert, Steve Murray of REALTrends says September 2009 was the “best month in four years for U.S. housing.” Not surprisingly, we’re seeing signs that some “former REALTORS®” are now trying to get back into the fray.

On the association side, we have pulled out all the stops to help you through these difficult times.

We’re pushing to extend the $8,000 homebuyer tax credit, rein in the HVCC and help our REALTOR® population gain access to affordable health insurance.

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INSIGHT

November/December 2009

Ads sponsored by the National Association of REALTORS® inundate the consumer airwaves. Your volunteer leaders and professional staff on the state, local and national levels are working diligently to make a difference on your behalf.

We’re also taking action to help some of your clients. The NC Association of REALTORS® is a lead sponsor of www.fightncforeclosure.org. In just the first two months, nearly 3,000 North Carolina families have been helped and the program has received high-profile publicity in the state’s major media.

“Take my hand and we’ll make it I swear Whoa oh, livin’ on a prayer” For a prime example of survival tactics in tough times, one might look to our REALTOR® colleagues in Michigan. In early October, I had the opportunity as a guest lecturer to attend the annual meeting of the Michigan Association of REALTORS®.

Michigan, of course, has been Ground Zero of the nationwide economic slowdown. This state has the highest unemployment rate and has lost a higher percentage of REALTOR® members than any other state in America.

In spite of this difficulty, more than 700 Michigan REALTORS® attended this event – which was located 4 hours from the Detroit metropolitan area. There was an unmistakable and uniform spirit of determination and resilience among the attendees. The very fabric of their state’s economy has been shaken to its core, but these REALTORS® were positive, upbeat and looking forward to a brighter tomorrow. It was impressive and inspiring, to say the least.

(Tim Kent keeps members informed of the latest real estate news on Twitter. Follow him at Timkent22.)