ARICA RUCKER:
First African American female to own a Century 21 in Charlotte
VOL 101 NO 2 | MAY 2022
THE VOICE OF REAL ESTATE IN NORTH CAROLINA
WHAT TO DO
WHEN BUYERS ASK ABOUT SCHOOLS Plus: Investing for Impact NC REALTORS® PAC celebrates Hall of Fame Inductees, CAP Major Investors and PAC Trustees Tech & Mental Health Stress management apps to help you navigate the pandemic and current market conditions Legal Quiz Test your knowledge with our latest quiz on our most popular legal Q&As
The QUICK & EASY way home! ® SECU is committed to offering the best member service experience in the industry, and we look forward to working with you. SECU NMLS #430055
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May 2022 Features 8 Welcome to the Team
NC REALTORS® welcomes six new staff
19 What to Do When Buyers Ask About Schools
Giving buyers opinionated information about schools may lead to unintentional steering
25 NC REALTORS® REdefined: Arica Rucker
Meet the first African American female to own a Century 21 firm in Charlotte
8
legal
QUIZ 19
15 4
President's Letter
5
Inside NC REALTORS®
Back in Action, Remembering NC REALTOR® Bob Measamer, Tech and Mental Health, New NC REALTORS® Staff, RPAC Hall of Fame Induction, 2021 Corporate Ally Program Major Investors, 2022 NC REALTORS® PAC Trustees 15 Legal Quiz
TALK TO US
25
Have something to talk about? Sure you do—and we want to hear it! Send us your comments, ideas or success stories to mallen@ncrealtors.org and you could be featured in the next Insight.
ncrealtors.org • INSIGHT 3
Insight, Volume 101, Issue 2 President Wendy Harris, ABR®, AHWD, C2EX, CIPS, CRS, e-PRO®, GRI, PSA, SRES®, MRP, WHS
Treasurer Laurie Knudsen, C2EX, GRI
President-Elect Leigh Brown, ABR®, AHWD, C2EX, CIPS, CLHMS, CRS, e-PRO®, SFR®, SRES®
Immediate Past President Kelly Marks, ABR®, AHWD, CIPS, CRS, GRI
Regional Vice Presidents Region 1: Adam Upchurch, Topsail Island Region 2: Brooke Rudd-Gaglie, Oak Island Region 3: Bruce Gates, Goldsboro Region 4: Jon Fletcher, Chapel Hill Region 5: Ray Alexander, Greensboro Region 6: John McPherson, Winston-Salem Region 7: Carol Bradley, Monroe Region 8: Edward Baesel, Charlotte Region 8: Brenda Hayden, Charlotte Region 9: Renee Cooney, Franklin Region 10: Lewis Grubbs, Raleigh Region 10: Renee Smith, Cary At Large Representative: Kim Dawson, Durham Chief Executive Officer Andrea Bushnell, Esq., AHWD, CIPS, RCE Vice President of Communications & Marketing Mckenzie Allen, AHWD, C2EX Graphic Design & Production Manager Raquel Stubblefield, AHWD, C2EX Content Marketing Coordinator Aliyah Ross, C2EX Contributors Will Martin, Lee Nelson For advertising information, visit ncrealtors.org/advertise or contact Keri Epps-Rashad at (336) 217-1049. INSIGHT (ISSN 24714127) (USPS 17170) is published four times a year in February, May, August and November by NC REALTORS®, 4511 Weybridge Lane, Greensboro, NC 27407. Periodicals Postage Prices paid at Greensboro, N.C. and additional mailing offices. POSTMASTER: Send address changes to INSIGHT, 4511 Weybridge Lane, Greensboro, NC 27407-7877. This publication is designed to provide accurate and authoritative information regarding the subject matter covered. Articles which appear in Insight are an informational service to members and consumers. Their contents are the opinions of the authors alone and do not necessarily represent those of NC REALTORS®. Advertising of a product or service does not imply endorsement, unless specifically stated. To opt-out of paper copy mailings, email hello@ncrealtors.org with a subject line of “Insight opt-out.”
Pivoting and punting. As REALTORS®, that’s what we’re good at. We have to be, especially now at a time of inflation, legal challenges, a global pandemic, intense competition, etc. There are so many things happening in our industry, state and world, and it may seem hard to keep up. As your 2022 NC REALTORS® president, I look forward to working with you to create more efficient and sustainable pathways to benefit you, your business and the REALTOR® nation. Not just for today or tomorrow, but for the next one thousand years. Can you think that far ahead? That’s where my slogan, “Building Bridges,” comes into play. As a second-generation REALTOR®, I know the value of building bridges with fellow REALTORS®. One of the best ways to do that is by getting to know each other better. In this issue of Insight, you’ll meet NC REALTOR® Arica Rucker, who made history by becoming the first African American female to own a Century 21 company in Charlotte. You’ll also celebrate NC REALTORS® PAC and get to know an elite and passionate group of REALTOR® investors who believe in the importance of protecting and promoting the real estate industry. Building available, affordable and sustainable communities where anyone who strives to attain the American dream of homeownership has a shot is vital for our future. Don’t miss our cover article on handling buyer questions about schools and how your response may violate fair housing laws if you’re not careful. Remember, NC REALTORS® Open Doors to Everyone because That’s Who We R®! Finally, advocacy is a longstanding passion of mine and another way we can build bridges to support our industry. NC REALTORS® don’t just advocate at the closing table; we fight hard for property rights every chance we get. Mark your calendars for our 2022 Legislative Meetings on June 13 – 15 in Raleigh. Building relationships with our legislators, working alongside staff and fellow REALTORS® and advocating on key issues that protect our industry are critical to supporting our communities. I look forward to connecting with you this year around the state. Let’s look beyond five- and 10-year plans. Let’s challenge each other to think one thousand years into the future. How do we want our communities to look? What foundations must be built to sustain these visions? What relationships should we strengthen to accomplish these goals? Together, we’re building bridges that lead us to these answers. And I can’t wait!
4511 Weybridge Lane, Greensboro, NC 27407 Phone: (336) 294-1415 ncrealtors.org
Wendy Harris, 2022 NC REALTORS® President
Back in Action NC REALTORS® are out and about, making an impact here in North Carolina and abroad.
Congratulations to Association Executives, Morgan Harper (Central Carolina) and Willo Kelly (Outer Banks) on receiving the prestigious REALTOR® Association Certified Executive (RCE) designation. They were honored at January’s Board of Directors meeting.
NC REALTORS® gathered in January to install and honor 2022 NC REALTORS® President, Wendy Harris. She was sworn in by colleague and friend, Bob Corcoran.
Mark Saunders, Wendy Harris and Rachel Branson pose with NC Secretary of State, Elaine Marshall after speaking on an eClosing panel at the Third Annual Electronic Mortgage Closing Conference on April 12, 2022
In March, NC REALTORS® Global Network attended MIPIM, an international real estate conference, to raise awareness of North Carolina as an opportunity for real estate investors. Pictured here from left to right: Mark Zimmerman, Andrea Bushnell, Jason Gentry and Tony Harrington.
MIXers are back! This spring, NC REALTORS® gathered in Salisbury and Asheville for food, drinks and conversations with REALTOR® peers.
The above Association Executives received scholarships to attend 2022 professional development events. Jamie Cooper (Jacksonville), Jo Anna Edwards (Goldsboro Wayne County), Morgan Harper (Central Carolina), Carla Rose (Salisbury Rowan), Joe Sutliff (High Point Regional) and Bonnie White (Johnston County). Marianne Bartlett (Mountain Lakes) is not pictured here but also received a scholarship.
ncrealtors.org • INSIGHT 5
REMEMBERING NC REALTOR® BOB MEASAMER October 6, 1938 – January 27, 2022 Percy Robert “Bob” Measamer, Jr. departed this earth peacefully on Thursday, January 27, 2022. Measamer was born on Thursday, October 6, 1938 in Sanford, N.C. He enjoyed a successful real estate and development career. In 1961, Measamer relocated to Fayetteville to work in the insurance arm of Thompson McLean Real Estate, but his personality and charm were a natural for real estate. He spent more than 55 years with McLean Real Estate, ultimately taking the helm as the company’s owner in 1998. He also formed Measamer Construction, and with partners, Tom McLean and Paul Thompson, built Fayetteville’s College Lakes and Vanstory Hills neighborhoods, and with Bob West, they built townhomes throughout the city. In 2008, Measamer was named North Carolina REALTOR® of the Year. Full obituary published on February 1, 2022 in The Fayetteville Observer, Funerals Today
TECH HELPLINE
TECH AND MENTAL HEALTH: IT’S BEEN A LONG PANDEMIC Do you remember the moment you went into pandemic MENTAL HEALTH AWARENESS MONTH lockdown? No one had any idea how long it would last. Now two years in and counting, the impact on mental health is still undoubtedly on many REALTORS®’ minds. While tech stress and Zoom gloom are real, some positive tech improvements have emerged related to mental health. The National Institute of Mental Health notes that mobile devices have provided a new gateway for doctors and researchers. Mobile mental health support rapidly emerged during the pandemic, providing better and swifter access to health support. New mobile apps appeared to allow Telehealth medical appointments, monitor physical activity, track dietary consumption, digitally record weight changes with smart scales and more. Today, anyone needing mental health support can send a text message to contact a crisis center. New apps are promising to improve memory and thinking skills. Apps even use built-in sensors to collect 6 INSIGHT • May 2022
information on our behavior patterns. All of this new technology brings pros and cons, which need individual evaluation. New Telehealth tools increase access and convenience to medical care and mental health support. For those who put off seeing a medical professional—such as a real estate agent with an insanely busy schedule—using an app might help overcome that hurdle. For real estate agents who thrive on face-to-face interaction, the pandemic has been particularly brutal. Reducing stress levels has become more crucial than ever, and there are some great apps to help agents do just that. One of the most popular stress management apps is Calm, available in the App Store and Google Play. With 100 million downloads and 1.5 million 5-star reviews, it has become the topranked app for mediation, relaxation and sleep. Calm features music and the sounds of nature to help you “focus, relax and sleep.” Video lessons focus on movement and stretching. Masterclass audio programs help strengthen mental fitness, addressing topics including stress, depression, insomnia and anxiety. The prevalence of Telehealth
also has soared in use during the COVID outbreak. With more doctors and therapists offering Telehealth appointments, accessibility has never been greater. Telehealth also is making care more affordable. Offering live, highly secure video conferencing, getting an appointment with your doctor for consultations and treatment is more accessible and often faster than scheduling an in-person meeting. New technology is extending the benefits of Telehealth with remote patient monitoring. RPM tools electronically record personal health and medical data and send it digitally and securely to your health professional. With these new tech tools do come new tech challenges. Fortunately, your association provides Tech Helpline as a member benefit, so analysts are available to help you with your technology challenges—even non-real estate-related ones! This article was pulled from a post on the Tech Helpline blog. Read more at techhelpline.com/blog. Learn more about the Tech Helpline at ncrealtors.org/techhelpline.
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ncrealtors.org • INSIGHT 7
Welcome to the Team! Meet the Newest NC REALTORS® Staff In the past year, NC REALTORS® added several phenomenal staff members— one in the operations department, one in the finance department and four in the government affairs department. We hope you enjoy getting to know some fun facts about these individuals. For a complete list of NC REALTORS® staff and leadership, please visit ncrealtors.org/staff.
BREWER STERNBERGH | RECEPTIONIST When did you join the staff? June 2021 Educational background: Some college courses Experience related to your current position: 25 years in customer service and hospitality
If you could go back in time to any era, which would it be? I would go back to the 1990s and put all my money into Apple. Which historical figure would you most like to meet? Abraham Lincoln
DAVID BERKEBILE | ACCOUNTING ASSISTANT When did you join the staff? August 2021 Educational background: I’m currently in school working towards a double major in accounting and finance. What is your favorite food? Ramen, sushi or pizza
8 INSIGHT • May 2022
What’s the best piece of advice you’ve ever received? If you’re the smartest person in the room, you’re in the wrong room. What show are you currently binge-watching? Peacemaker. Also, The Last Kingdom.
GENISE SMITH-WATKINS | SHARED GOVERNMENT AFFAIRS DIRECTOR When did you join the staff? June 2021 Educational background: Bachelor of Arts in Political Science and Legal Studies from Michigan State University and a Masters of Public Policy & Administration from Western Michigan University
Experience related to your current position: Over 20 years of public/government affairs and eight years in business management Who inspires you? Genuine public servants who give their all for the people they serve, especially those who are less fortunate
JADE PETTY | GOVERNMENT AFFAIRS ASSISTANT When did you join the staff? October 2021 Educational background: Music Performance/Music Composition from the University of Nevada Las Vegas What was the best concert you ever attended? Oasis with Kasabian at the House of Blues in Las Vegas, Nevada
Where would you like to go on vacation if you had a month off and money was no object? I would go to Adelaide, Australia to visit my church. Have you ever met anyone famous? Yes, quite a few. My favorite would have to be Sting and Andre Agassi.
RYAN KLUK | REGIONAL GOVERNMENT AFFAIRS DIRECTOR When did you join the staff? February 2022
Experience related to your current position: I interned for an NC Congressman in 2021.
Educational background: Bachelor of Arts in Biology and History with a minor in Rhetoric and Theatre from HampdenSydney College. Masters of Arts in Public Policy from the University of Denver.
What are you passionate about? Outdoor activities (i.e. hiking, camping), Chicago Cubs, Chicago Bears, and board games What’s your favorite podcast? Pardon My Take
WILLIAM BRADFORD | SHARED & REGIONAL GOVT. AFFAIRS DIRECTOR When did you join the staff? March 2022
at the Associated Students of New Mexico State University for two years.
Educational background: Bachelor of Arts in Government from New Mexico State University and Master of Arts in China Studies from National Chengchi University
Where did you grow up, and where else have you lived? I grew up in Aztec, a small town in northwest New Mexico. I lived for four years in Las Cruces, New Mexico while I attended college. Following that, I spent two years living in Taipei, Taiwan where I obtained my masters.
Experience related to your current position: I worked as the Director of Governmental Relations
ncrealtors.org • INSIGHT 9
AWARDS & RECOGNITION
10 NC REALTORS® Inducted into the National Association of REALTORS® RPAC Hall of Fame NC REALTORS® is proud to announce its newest members of the National Association of REALTORS® RPAC Hall of Fame. The RPAC Hall of Fame recognizes dedicated members who have made a significant commitment to RPAC over the years by investing an aggregate lifetime amount of at least $25,000. The class of 2021 includes six members at the $25,000 level, and four members who have achieved the $50,000 level. Among the Hall of Fame benefits are name plaques on the RPAC Hall of Fame wall located on NAR’s Washington, D.C. building rooftop, a personal plaque commemorating the installation and recognition pins with the Hall of Fame designation. The 2021 class, which will be inducted in May during the 2022 NAR Legislative Meetings, joins a prestigious group of fellow REALTORS® from across the state and nation that have gone above and beyond in demonstrating leadership and commitment to advancing the interests of the profession and protecting property rights. Congratulations to our 2021 NAR RPAC Hall of Fame inductees!
STEPHANIE WALKER Outer Banks $50,000 Level
ASA FLEMING Raleigh Regional $50,000 Level
BOB CARTER Raleigh Regional & Durham Regional $50,000 Level
MAREN BRISSON-KUESTER Canopy REALTORS® $50,000 Level
MARGARET FISHER Canopy REALTORS® $25,000 Level
GARY RABON Raleigh Regional $25,000 Level
STEVEN NORRIS Raleigh Regional $25,000 Level
TONY HARRINGTON Cape Fear REALTORS® $25,000 Level
ANNE GARDNER Cape Fear REALTORS® $25,000 Level
SUE FRANKS Brunswick County $25,000 Level
10 INSIGHT • May 2022
2021 CORPORATE ALLY PROGRAM MAJOR INVESTORS
The Corporate Ally Program (CAP) is a powerful partnership between the National Association of REALTORS® (NAR) and corporate allies aimed at protecting, promoting and strengthening the real estate industry. With contributions from state and local REALTOR® associations, affiliates, Institutes, Societies and Councils, as well as industry partners, CAP supports federal, state and local advocacy campaigns and public policy priorities. IMPACT YOUR INDUSTRY AND BECOME A CORPORATE ALLY PROGRAM INVESTOR! Contact Kristin Nash knash@ncrealtors.org
Platinum Diamond Canopy MLS Canopy REALTOR® Association
Platinum NC REALTORS®
Golden Cape Fear REALTORS® Hendersonville Board of REALTORS® HomeSight Longleaf Pine REALTORS®
Crystal Albemarle Area Association of REALTORS® Brunswick County Association of REALTORS® Carteret County Association of REALTORS® Century 21 Champion Real Estate Coldwell Banker Sea Coast Advantage Greensboro Regional REALTORS® Association High Country Association of REALTORS® High Point Regional Association of REALTORS® Jacksonville Board of REALTORS® Johnston County Association of REALTORS® Land of the Sky Association of REALTORS® Team Harris Real Estate Union County Association of REALTORS® Winston-Salem Regional Association of REALTORS®
Sterling Brian Strombotne, Arthur Rutenbuerg Homes Charlotte Region Commercial Board of REALTORS® Connie M Corey Properties, LLC Highlands Cashiers Board of REALTORS® Leigh Thomas Brown Inc Roanoke Valley Lake Gaston Board of REALTORS® Team Gale The Property Shop International Realty Triad Multiple Listing Service, Inc
Get to Know Your 2022 NC REALTORS® PAC Trustees The mission of the NC REALTORS® Political Action Committee (NC REALTORS® PAC) is to raise and disburse funds to promote homeownership, protect private property rights and increase political awareness for the real estate industry. The NC REALTORS® PAC Trustees are dedicated volunteers from the association membership that recognize the importance of NC REALTORS® PAC and are fully invested in its mission. Collectively, trustees make funding decisions based on recommendations/input from local associations, voting records for incumbents and a candidate’s support and/or knowledge of issues of concern to the real estate profession. Meet your NC REALTORS® PAC Trustees:
Randall Blankenship Treasurer
Laurie Linder
Lisa York
Region 1 Trustee
Bruce Gates
Patrick Serkedakis
Region 3 Trustee
Region 3 Trustee
Phillip Johnson
Treasure Faircloth
Region 6 Trustee
Scott Barfield
Region 9 Trustee
Jennifer Stoops NC REALTORS® Legislative Chair
Kim Endre
Past Chair
Region 6 Trustee
Beatrix Masotti
Region 9 Trustee
John McPherson NAR Participation Representative
Region 4 Trustee
Carol Bradley
Region 7 Trustee
Tim McBrayer
Region 10 Trustee
Jamie Cooper
AE Advisor (Non-Voting)
Bill Aceto Chair
Cirila Cothran
Region 1 Trustee
Kim Dawson
Region 4 Trustee
Dennis Bailey
Region 7 Trustee
Brett Bushnell
Region 10 Trustee
Bob Bates
Connie Corey Vice Chair
Jim Goodman
Region 2 Trustee
Region 2 Trustee
Marcus Larose
Sandra O'Connor
Jason Gentry
Jennifer Frontera
Region 5 Trustee
Region 8 Trustee
Wendy Harris
NC REALTORS® President/NAR Major Investor Representative
Region 5 Trustee
Region 8 Trustee
Leigh Brown
NC REALTORS® President Elect
Contributions to RPAC are not deductible for federal or state income tax purposes. Contributions are voluntary and are used for political purposes. Suggested amounts are merely guidelines and you may contribute more or less than the suggested amounts. The National Association of REALTORS® and its state and local associations will not favor or disadvantage any member because of the amount contributed or a decision not to contribute. You may refuse to contribute without reprisal. Your contribution is split between National RPAC and the State PAC in your state. NC RPAC supports the efforts of National RPAC and contributes a portion of its contributions to National RPAC. Contact your State Association or PAC for information about the percentages of your contribution provided to National RPAC and to the State PAC. The National RPAC portion is used to support federal candidates and is charged against your limits under 52 U.S.C. 30116. In-kind contributions/donations are not included for the purposes of the National RPAC State PAC split. NC law requires political committees to report the name, mailing address, job title or profession and name of employer or employee's specific field for each individual whose contributions aggregate is in excess of $50 in an election cycle. Contributions can only be accepted from individuals in the form of personal checks or credit cards. Contributions from corporations or business entities cannot be accepted. This solicitation was paid for by NC RPAC.
Apply to Be an NC REALTORS® PAC Trustee The NC REALTORS® PAC Trustee Credentials Committee is taking applications for candidates for Regions 2, 3, 4, 7, 8, 9 and 10 for three-year terms (2023 – 2025). Elections will be held at the NC REALTORS® Board of Directors meeting during convention in October. For more information and an application, please email Kristin Nash at knash@ncrealtors.org.
Application Deadline: August 1, 2022
NC REALTORS®
Property Management Division WHY YOU SHOULD JOIN
BENEFITS
Navigating The Pandemic We know your life and your profession have been impacted by COVID-19. Property managers are on the front lines, keeping our businesses clean and safe, and working with tenants on rent solutions that will keep communities intact. Times are challenging, and we’re here to help. NC REALTORS® PMD provides advocacy, education and tools to support North Carolina’s professional property managers during this time of uncertainty.
+ PMD Legal Handbook + Interactive Webinars & Training + Legislative Participation + Legal & Regulatory Updates
How to Join Any member of NC REALTORS® may join PMD. Visit ncrealtors.org/PMD or contact Amy Kemp at akemp@ncrealtors.org for more information on PMD.
ncrealtors.org • INSIGHT 13
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legal
QUIZ Take our latest quiz on our most popular, weekly Q&As. BY WILL MARTIN, GENERAL COUNSEL
These questions are based on weekly Q&As published in the REALTOR® Rundown between December 2021 and March 2022. Answers include title and reference to location of full Q&A in Q&A archives on NC REALTORS® website.
1.
Does the new Standard of Practice 10-5 of the Code of Ethics, which bars REALTORS® from using “harassing speech, hate speech, epithets or slurs based on race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity,” apply to speech by a REALTOR® that is not directly related to a real estate transaction? Yes or no?
2.
Is it unethical for me to tell a buyer that they may hire me at no cost to them? Yes or no?
3.
May a real estate firm become liable for the action of an affiliated agent if the agent did not have authority from the firm to take that action? Yes or no?
4.
May an agent enter into a contract to purchase his own listing? Yes or no?
5.
If a tenant resides in a property under an oral lease, would the lease be binding on someone who purchases the property? Yes or no?
6.
Would it be okay for a buyer during a showing to turn the thermostat on to see if the heating system works? Yes or no?
7.
May a buyer agent withdraw an offer on behalf of their buyer client? Yes or no?
8.
If a buyer agent learns that their client got laid off from his job, does the agent have any obligation to inform the buyer’s lender of the client’s job loss? Yes or no?
9.
If a buyer agency agreement provides for the payment of a retainer fee, may the buyer pay the retainer directly to the individual buyer agent with the consent of the agent’s firm? Yes or no?
10.
Can a listing agent offer MLS compensation expressed as a percentage of the net sales price rather than the gross sales price? Yes or no?
ncrealtors.org • INSIGHT 15
legal QUIZ Answers 1.
2.
3.
4.
5.
Yes. Standard of Practice 10-5’s prohibition on the use of harassing speech, hate speech, epithets and slurs is not limited to real estate transaction-related speech and it extends to images and symbols, not merely verbal and written statements. [How broad is Standard of Practice 10-5’s prohibition on “hate speech”? Category: Code of Ethics] Yes. Effective January 1, 2022, Standard of Practice 12-1 of the Code of Ethics was amended to provide that “REALTORS® must not represent that their brokerage services to a client or customer are free or available at no cost to their clients, unless the REALTOR® will receive no financial compensation from any source for those services.” [May I tell a buyer that they can hire me at no cost to them? Category: Code of Ethics] Yes. Under certain circumstances, a firm can be liable for an agent’s unauthorized action if a person with whom the agent is dealing reasonably believes the agent possessed authority to take that action. [Limiting a Firm’s Exposure When an Affiliated Agent Has a Side Business Category: Agency] Yes, provided that the agent complies with Real Estate Commission Rule 58A.0104(p), which requires that the agent, prior to entering into the contract, (i) discloses in writing to the seller that the agent may have a conflict of interest in purchasing the client’s property and that the client may want to seek independent counsel of an attorney or another licensed broker, and (ii) either terminates the listing agreement or transfers it to another broker affiliated with the firm. In addition, it is strongly recommended that a listing be exposed to the market for a reasonable amount of time before the listing agent attempts to purchase the property. [How does an agent purchase their own listing? Category: Real Estate License Law/Rules] Yes. An oral agreement to lease property is legally enforceable unless the term of the lease exceeds three years, and a buyer who purchases property with knowledge of the lease takes title subject to its terms. [Will a buyer be bound by an oral lease on the property? Category: Miscellaneous/Other Laws and Rules]
16 INSIGHT • May 2022
6.
7. 8.
9.
10.
Without permission from the listing agent or seller, probably not. Permission to view a property does not include authorization to conduct any sort of investigation. As a general proposition, absent permission from the seller or the listing agent, the time for buyers to perform their due diligence investigation is after a contract has been signed, not before. [Guidelines for buyers and their agents when attending a showing Category: Miscellaneous/Other Laws and Rules] Yes, provided that the buyer has authorized the buyer agent to do so, and provided that the buyer agent gives notice of the withdrawal to the listing agent before the offer is accepted. [What is the best way to withdraw an offer? Category: Contract Law] No. While the job loss may be a material fact that the buyer agent would be required to disclose to the listing agent or seller, and while the buyer likely has a legal requirement to notify the lender of any job loss, the buyer’s agent is not a party to the financial arrangement between the buyer and their lender, and would be under no obligation to disclose the job layoff to the lender. No. According to Real Estate Commission Rule 58A.0120, “[a]n affiliated broker shall not be paid a commission or referral fee directly by anyone other than their current BIC or the person who served as their BIC at the time of the transaction.” [May a retainer fee be paid directly to an agent? Category: Fees/Commissions] Yes, but only if the local MLS has elected to allow the offering of cooperative compensation as a percentage of the net sales price. [Can a listing agent offer compensation expressed as a percentage of the net sales price? Category: Miscellaneous/MLS Issues]
STUDY HARD If you’re not doing so already, be sure to read the Q&As that appear in the REALTOR® Rundown every Monday. It’ll help you on the next quiz!
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What to Do When Buyers Ask About Schools
BY LEE NELSON Lee Nelson is a freelance journalist from the Chicago area. She has written for Yahoo! Homes, TravelNursing.org, MyMortgageInsider.com and REALTOR® Magazine. She also writes a bi-monthly blog on Unigo.com.
When Melanie Coyne is asked by home buyers what are the good schools in her area, she has an in-depth response that involves a lot of anecdotes. “I’m trying to lead the person by asking them questions to get them down a path to help them understand—there’s not necessarily such a thing as a good school,” says Coyne, broker/ REALTOR® at Corcoran HM Properties in Charlotte. She also serves as the Chair of the NC REALTORS® Forms Committee. Everyone is looking for something different when they talk about “good schools.” “Schools need to be evaluated by the person who will be sending their children there. I’ve had buyers indicate that a good school has a later start time because they don’t like to get up early,” she adds. “Another family wanted the ncrealtors.org • INSIGHT 19
best lacrosse team in the area. One person’s good school is another person’s bad school.” All of us in life are busy. We are trying to seek the easiest answer to obtain. But homebuyers need to first think through what they mean by “good.” Once they can articulate what “good” means to them, then agents can provide them with third party resources which can give them information to make their own decision. Legally Speaking “REALTORS® have hardly ever asked questions on the NC REALTORS® Legal Hotline about what to say when people ask about schools,” says Will Martin. He serves as general counsel for NC REALTORS® and manager at Martin & Gifford, PLLC in Winston-Salem. However, a 2019 Newsday exposé revealed systemic racial steering in which real estate agents directed homebuyers to specific localities based on their race. The National Association of REALTORS® put out guidance in 2014 about 20 INSIGHT • May 2022
steering under the Fair Housing Act. Steering on the basis of any of the characteristics defined under the Fair Housing Act is not only unethical, it’s illegal because it limits the housing opportunities available to that buyer. For instance, if an agent expresses his or her good or bad sentiments toward a particular community or school—the purpose of which is to direct a buyer either towards or away from a community—then that agent may be stating a housing preference based on race or familial status or religion. “The exposé really put that whole issue on the radar screen for REALTOR® associations,” Martin says. One of the possible concerns is that agents are giving buyers information about schools, which subtly steers them to or away from neighborhoods. “It’s not illegal. But it could certainly raise questions whether you did it based on somebody’s protected characteristics,” he states. “Just stay away from giving opinions about schools.” Michele Hobaugh, REALTOR® at Allen Tate, Chapel HillPittsboro office, has always shared with buyers that it is not a good idea to purchase a home based on the school district as
“Schools need to be evaluated by the person who will be sending their children there.” – Melanie Coyne, Broker/REALTOR® at Corcoran HM Properties in Charlotte
“Some REALTORS® may not even realize that their steering isn’t intentional discrimination. There’s no doubt some agents do this unconsciously. Just stay away from providing opinions about schools.” – Will Martin, NC REALTORS® General Counsel and Manager at Martin & Gifford, PLLC in Winston-Salem
“It’s called buyer due diligence for a reason. There are many options today for schools…Each has its merits and drawbacks. Parents today have a lot of choices in the manner children are educated.” – Michele Hobaugh, REALTOR® at the Allen Tate Chapel Hill-Pittsboro office
district lines are constantly changing in her area—especially now that so many people are moving there. “The only way you can guarantee what school your child attends is to pay for private schooling,” she adds. And when her clients start asking about schools, she adds, “It’s always necessary to document, document, document.” Martin reveals that a REALTOR® can give the contact information for the school and say, “Check this school out yourself. I encourage you to visit the school.” Once a homebuyer identifies a house or two, let the client confirm with the school district themselves if it is located in that particular district. “If you are going to do it for your client, I would be very careful to provide them with the source of the information,” Martin states. “Explain that your call with so-and-so at the school came down to the fact that you were told the house they are looking at is within the school district.” He adds that good risk management is to also reiterate that this property is not guaranteed to be within the school district. You are just quoting your source. Martin doesn’t see any harm in telling homebuyers which
school your own kids go to if they ask. “That’s not problematic. Going much beyond that is really going down a slippery slope,” he explains. For instance, if they ask how the football team is, you can say, “They were pretty good last year.” There are certain factual things you can say about a school. But when they start questioning the quality of the school or class sizes, be very careful of answering. Martin also suggests practicing these types of conversations and scenarios with other brokers in your office to determine how to handle these things in a professional and not off-putting way. “A good agent can handle something like that with an upbeat kind of way and redirect somebody to a source that can help them,” he adds. NAR states that a truthful response to the question: “Where do you send your children to school?” is not necessarily a violation of the law. But a buyer could perceive such as response, even if truthful, as a way of limiting choices or as discrimination. There’s no doubt some agents do this unconsciously,” Martin adds. “Just stay away from providing opinions about schools.” ncrealtors.org • INSIGHT 21
Giving Resources to Help Clients Although REALTORS® bend over backwards to do so many things for their clients, Hobaugh engages her buyers to do their homework when it comes to finding the right school district for their children. “It’s called buyer due diligence for a reason,” she says. Hobaugh is serving as the 2022 president of the Orange Chatham Association of REALTORS®. She explains to her clients with children that “there are many options today for schools—homeschooling, Montessori, public and private. Each has its merits and drawbacks. Parents today have a lot of choices in the manner children are educated.” But one of her first responses to them when they start asking if certain schools are good is to check out the North Carolina Department of Public Instruction School Report Cards website. Report cards provide information for all North Carolina public, charter and alternative schools. This user-friendly website includes such information as school safety, digital teaching and learning, educator qualifications, class size, preschool enrollment, college endorsements and credentials, test scores, per pupil expenditure and so much more. Additionally, parents can check out other useful websites such as GreatSchools.org, SchoolDigger.com and RateMyProfessors.com. Remembering Everyone is Different “Everyone is coming from a different perspective when it comes to finding the right house in the right school district,” says Coyne. She’s been working with out-of-town clients who are moving to her area and want their children in a school with a strong performing arts department. She feels fine in connecting them with resources at the school districts who are experts in this arena. Coyne also likes to warn clients that the rating sites about schools should be taken with a grain of salt. “One person’s 10 out of 10 could be another person’s 3 out of 10. Liken it to a Yelp review. For instance, someone might say a restaurant has great steaks. I don’t eat meat. I don’t ignore the review, but I seek out multiple reviews,” Coyne states. Most REALTORS® genuinely want to help their clients the best they can. However, some REALTORS® aren’t mindful of the implications of their guidance. “This is a very important purchase. We can help provide clients with resources, but they need to do the work themselves and draw their own conclusions.”
22 INSIGHT • May 2022
Helpful School Resources for Your Real Estate Clients
North Carolina Department of Public Instruction School Report Cards www.dpi.nc.gov/data-reports/school-report-cards • Provides information about school- and districtlevel data in a number of areas including student performance and academic growth, school and student characteristics and many other details
GreatSchools www.greatschools.org • Provides high-quality information that supports parents pursuing a great education for their child, schools striving for excellence and communities working to diminish inequities in education
SchoolDigger www.schooldigger.com • Provides test scores, rankings, school and district boundaries, student/teacher ratios, ethnic makeup and scores of other useful metrics and information
Rate My Professors www.ratemyprofessors.com • Provides ratings for academic professors, colleges and universities across the United States, Canada and the United Kingdom
Keep Your Mind & Skills Sharp ncrealtors.org/education-roundup
NC REALTORS® wants to help you build skills and adapt to changing times. Our website contains a roundup of broadcasts, webinars, courses, tools and programs to help you succeed. Visit ncrealtors.org/education-roundup for more information. + Live Virtual Courses
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ARICA RUCKER First African American female to own a Century 21 company in Charlotte, N.C. NC REALTORS® REdefined podcast recently caught up with NC REALTOR®, Arica Rucker, the first African American female to own a Century 21 company in Charlotte, N.C. In her interview, she shared valuable insight and experiences that helped her achieve this historical career milestone.
BUILDING THE MOSAIC Listen to other interviews on NC REALTORS® REdefined podcast available on SoundCloud, Apple Podcasts, Spotify or wherever you get your podcasts. These episodes
Why real estate? How did you get into the industry? Was real estate your first career? I tell a lot of people I did not choose real estate; real estate chose me. This was not something that I ever imagined myself doing. I remember years ago hearing this voice say to me, “You’re going to be a real estate agent.” I remember saying, “No, I don’t want to do that.” I do not want to be on anyone’s commission. I want a nine-to-five job getting a steady paycheck. I dismissed it, but it never left me. It took me seven years to actually go to school and take real estate clients. Sometimes I wonder where would I be today if I did it earlier.
take a look at epic NC REALTORS® and how they are shaping and influencing the real estate industry.
How does it feel to be the first, African American female Century 21 broker? What were your first thoughts when you received the news? I have been a broker-owner for the last 11 years. When I affiliated with Century 21 back in October 2021 and became the first African American female to own a Century 21 in the Charlotte, N.C. area, it was very exciting. Even though I initially took it lightly, I knew that it was a big deal for a lot of people, especially the older people. I’ve had people literally cry when I tell them that news. I’ve had people who would go on and on about how this is such a big deal and how back
ncrealtors.org • INSIGHT 25
“I didn’t choose real estate; real estate chose me.” – Arica Rucker Watch the full interview
in the days, this could have never been. So, I do not take it lightly. It is a very humbling experience. My hope is to be an example for all the women who want to become owners. What do diversity, equity and inclusion mean to you? Why are they important for the real estate industry? Diversity, equity and inclusion are probably the main reasons I’m here today. I think that companies, as well as the real estate industry, are realizing that everyone deserves a voice. Everyone deserves a seat at the table. African Americans are seeing ourselves in ownership positions that would have never happened years ago. We’re seeing ourselves being the first of things now. Diversity, equity and inclusion are very important because there are a lot of people in the world with different backgrounds, and they should be represented.
What was the industry like when you became a REALTOR®? The industry was very different from today. It seemed like it was more of a balanced market. We had to do things differently as listing agents, but there were definitely enough houses out there for all the buyers—that was probably the biggest difference. What obstacles have you had to overcome in your career? How have they made you stronger? Fortunately, I have not experienced a whole lot of obstacles that are different or unknown to any other real estate agent. For example, not getting the listing that I thought I deserved or not getting into the Leadership Academy that I felt like I needed. However, I’ve had a family member not want to use me because of the color of my skin. Things like this make me stronger, give me thicker skin and make me want to do well.
Who inspires you? There are a lot of people who have inspired me—one of which is my husband with his unending, relentless work ethic. My children inspire me because they tell me, all the time, how proud they are of me in all of my accomplishments. Also, an old pastor inspired me. He probably didn’t even realize he was teaching me a lot of the things that I use today in real estate. Lastly, my mother taught me how to make a dollar out of fifteen cents. What is your favorite part about living/working in your area? I’ve lived in Concord and the University area since after I graduated college, and I like it. It has definitely grown as one of the top cities in the state of North Carolina to work— where minorities also have an opportunity to expand in their careers. I also enjoy the fact that I can go to any part of the city or any surrounding cities within 30 minutes or less. 26 INSIGHT • May 2022
Based on the lessons you’ve learned, what advice would you give to other minorities trying to make it in the real estate industry? Do not let money be your motivation. Be honest, have integrity, be on time, work hard and pay attention to the small stuff. How do you want to be remembered? I would like to be remembered as a blessing—that I have helped a lot of people in their lives with buying homes.
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