Insight | August 2020

THE VOICE OF REAL ESTATE IN NORTH CAROLINA

VOL 99 NO 3 | AUGUST 2020

Surviving Financially as an Independent

Plus • NC REALTORS® Elections • Advocacy During a Pandemic • Creating the Best Virtual Tours • Protecting Homeowners in Flood Zones

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August 2020

[CONTENTS]

2021

5

8

CANDIDATES & ELECTION INFORMATION

features 8 Advocacy During a Pandemic

Helping you stay in business during these challenging times

15 Surviving Financially as an Independent

Tips from experts and REALTORS® about getting your finances and real estate business back on track

20 Creating the Best Virtual Tours

Advocacy During a Pandemic

15

24 Working Together to Protect Homeowners in Dare County

Recent action by the Outer Banks Association of REALTORS® exemplifies the application of NC Homeowners Alliance resources to a broad public good

20

4 PRESIDENT'S LETTER

6 INSIDE NC REALTORS®

5 NC REALTORS® ELECTIONS 2021 Candidates and Important Election Information

TALK TO US

Discover how 3D virtual tours and virtual open houses can help you reach more clients

NC REALTORS® Gives Back Day

11 LEGAL QUIZ

24

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 99, Issue 3 President Maren Brisson-Kuester

Treasurer Laurie Knudsen, GRI

President-Elect Kelly Marks, ABR, CRS, GRI

Immediate Past President Asa Fleming, SFR, AHWD

Regional Vice Presidents Region 1: Kim Endre, Kitty Hawk Region 2: Tony Harrington, Wilmington Region 3: Connie Corey, Greenville Region 4: Julia Tucker, Chapel Hill Region 5: Kathy Haines, Greensboro Region 6: Penny Boyles, King Region 7: Dennis Bailey, Shelby Region 8: John Ogburn, Charlotte Region 8: Jennifer Frontera, Indian Trail Region 9: Renee Cooney, Franklin Region 10: Teresa Pitt, Fuquay Varina Region 10: Mark Parker, Raleigh At Large Representative: Brooke Rudd-Gaglie, Oak Island Chief Executive Officer Andrea Bushnell, Esq., CIPS, RCE Vice President of Communications & Marketing Mckenzie Allen Graphic Design Coordinator Raquel Stubblefield Content Marketing Coordinator Aliyah Ross Contributors Porter Graham, Lee Nelson, Mark Zimmerman 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®.

I think we can all agree—2020 has been a year like no other.

No same old, same old, that’s for sure. While at times I’ve wanted to hit the restart, refresh and rewind buttons, again and again, I’m also wowed by the opportunity to look forward. The way you and our industry have adapted to these changing times has genuinely inspired me.

You continue to serve your clients. You continue to lift up your communities. You continue to thrive even in the worst possible environments. REALTORS® are resilient. YOU MATTER. That’s why NC REALTORS® is here. We believe in you and your abilities to serve. We believe in your clients’ right to private property, and we continue to advocate for those rights. We continue to offer you tools and resources to help you thrive. We continue to keep you informed and connected through various channels—including this issue of Insight magazine.

As you flip through the pages of the August issue, I hope you will find inspiration from your peers and their stories. Several of you stepped up with advice on how to survive financially during these tough times. Others offered tips for creating the best virtual tours, a new reality in the way we market properties. We also get to experience a story of community resilience on the Outer Banks.

I asked you to step it up this year, and boy, you delivered. Let’s keep it up. Let’s continue working to strengthen our communities and show the power of REALTORS®, even up against the worst possible scenarios. Remember, we’re in this together, and together we will press on with one vision, one community and one voice.

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.”

Maren Brisson-Kuester, 2020 President

4511 Weybridge Lane, Greensboro, NC 27407 Phone: (336) 294-1415 ncrealtors.org

2021 CANDIDATES & ELECTION INFORMATION

PRESIDENT-ELECT

REGIONAL VICE PRESIDENTS

(Vote for one candidate)

(Vote for one candidate per region)

Wendy Harris ABR®, CIPS, CRS, MRP Longleaf Pine REALTORS®

REGION 3

Bruce Gates ABR®, GRI Goldsboro-Wayne County Association

ISSUES MOBILIZATION COMMITTEE (Vote for one candidate)

Amy Hedgecock CPM®, GRI High Point Regional Association of REALTORS®

REGION 4

Jonathan Fletcher CRS, e-PRO® Durham Regional Association of REALTORS®

REGION 6

FINANCE & BUDGET COMMITTEE (Vote for three candidates)

Randy Dockery ABR®, CRS, CDPE, e-PRO® Mountain Lakes Board of REALTORS®

John McPherson ABR®, AHWD, CRS, e-PRO®, GREEN, GRI Winston-Salem Regional Association of REALTORS®

REGION 8

Brenda Hayden Madalyn Kunow CNS

Canopy REALTOR® Association

High Point Regional Association of REALTORS®

VOTE ONLINE

SEPTEMBER 8 – 11, 2020 ncrealtors.org/elections

REGION 9

Tony Smith ABR®, ABRM, CRS, GRI Canopy REALTOR® Association

The NC REALTORS® elections will be held September 8 – 11, 2020 and voting will take place online. The candidates listed on this page have been certified by the NC REALTORS® Certifying/Recruiting Committee.

Visit ncrealtors.org/elections for detailed candidate bios, voting rules and to vote in August.

Katie Wangrin ABR®, C2EX, GRI, SRES® Land of the Sky Association of REALTORS®

REGION 10

Renee Smith CRS Raleigh Regional Association of REALTORS®

NAR DIRECTOR (Number of Directors to be elected will be determined after July 31)

Kim Dawson ABR®, C2EX, CIPS, CRS, GRI, SRES® Durham Regional Association of REALTORS®

Myra Zollinger CRS, GRI Raleigh Regional Association of REALTORS®

One of the greatest impacts NC REALTORS® have on their communities is the coordinate efforts and immediate response to help those in need—even during a pandemic.

This year’s NC REALTORS® Give Back Day shifted to a virtual collaboration of philanthropic activity, and we were blown away by the response. When REALTORS® come together, communities thrive. This is only a snapshot of the many activities and service projects submitted by our members and local associations. Visit ncrealtorshf.org/news for more stories and photos of this year’s event. #NCRGivesBack

A

B 6 INSIGHT • August 2020

C

D

E

F

A. Carteret County Association of REALTORS® took their unused travel funds and donated $3,000 to three local food banks ($1,000 each).

B. Colleen Blondell, a board member of the REALTOR® Foundation of Wake County, organized a neighborhood card-making campaign that produced over 100 cards in efforts to cheer up Duke University Hospital patients.

C. Bea Mattice of EXIT Realty Vistas in Arden, N.C. made hundreds of masks for local hospital workers, real estate agents and their families.

G

D. Anna Harvey, NC REALTORS® Government Affairs Assistant, partnered with the Raleigh Dream Center and Wake County Public Schools to distribute hot meals to kids in need.

E. Members of the Brunswick County Association of REALTORS® teamed up with a local non-profit organization and donated several carloads of cereal, spaghetti dinners and over $4,000. All donations will help feed less-fortunate members of the community during the coronavirus pandemic.

F. Mid Carolina Regional Association of REALTORS® Community Outreach Committee members deliver gloves and masks to the Moore County Aging Outreach Services.

H

I

G. An energetic group of volunteers from the Union County Association of REALTORS® helps build a new Habitat for Humanity house.

H. Volunteers from the Union County Association of REALTORS® proudly wear their NC REALTORS® Gives Back Day t-shirts and masks while building a house.

I. Kathryn West with Berkshire Hathaway HomeServices and a neighbor have been cutting fabric for masks as part of the Masks Now Coalition. These masks are distributed to emergency room staff at UNC Hospital.

J

J. Lolita Malave and several friends made over 1,000 face masks for people in homeless shelters, medical facilities, the Greensboro Science Center, nursing homes, Masks for Heroes and people throughout the country.

ncrealtors.org • INSIGHT 7

Advocacy During a Pandemic Over the last few months, NC REALTORS® has been hard at work to serve and support you during these uncertain times.

BY MARK ZIMMERMAN SENIOR VICE PRESIDENT OF EXTERNAL AFFAIRS Ever since COVID-19 arrived, many North Carolinians—especially REALTORS®—did not have an idea what the next day would bring. There wasn’t a guidebook to dealing with a pandemic; they didn’t teach this in government affairs school! NC REALTORS® government affairs staff had to deal with an onslaught of issues coming at us at breakneck speed— issues with serious impact on the lives and business of REALTORS®.

This year started out as expected.

The legislature met briefly to close out 2019’s very long session, still at an impasse with the Governor on the budget. The NC REALTORS® government affairs staff were analyzing how well our REALTORS® PAC (RPAC) and Independent Expenditure campaigns did in the February primary. We were also planning for what was expected to be a very short session in the spring in which not much legislative work would get done. Then, almost overnight, everything changed.

The first sign that life was going to be turned upside down came when our annual trip to promote North Carolina at the world’s largest real estate investor conference in France was canceled just a week before it began. It wasn’t much longer before the United States started taking the virus seriously.

In North Carolina, the Governor 8 INSIGHT • August 2020

began crafting his stay-at-home emergency order. NC REALTORS®’ first order of business was to protect your business. We knew it was vital to have real estate designated as an essential business. After all, North Carolinians across the state would still need to buy and sell property; life didn’t stop for people. Homeowners would need access to their largest source of wealth—the equity in their homes—especially with an anticipated financial crisis.

Our lobbyists quickly communicated with the Governor’s staff. We built a coalition of partners to add to their voices, including many who had political ties to those in the executive branch. We all breathed a sigh of relief when our advocacy efforts paid off. According to the Governor, real estate was essential. However, there was a hitch: the order he issued allowed local governments to add their own regulations. Suddenly, things got very complicated.

Every day, we learned about a new local order that restricted REALTORS®’ ability to broker sales. We had to pivot our attention from Raleigh to battling in eighteen counties, cities and towns across the state, including most of the largest areas. Fortunately, our local associations could lead the way with us partnering behind the scenes. In the first big test of our Regional Government Affairs Director program—with eight NC REALTORS® Government Affairs Directors (GADs) deployed to assist the locals—we eventually got most of the orders changed to allow brokerage to continue.

Meanwhile, most real estate business had to be conducted remotely. In order to facilitate remote closings, North Carolina’s law had to change to allow remote online notarization and funds to be dispersed in those cases when

recordation of deeds was delayed.

Our lobbyists pulled together all the industry partners, worked with the Secretary of State and drafted legislation that passed during the emergency session.

During this time, the government affairs staff were in constant contact with the National Association of REALTORS®’ (NAR) Washington government affairs staff, who were working to get benefits for homeowners, small businesses and independent contractors in the massive Coronavirus Aid, Relief, and Economic Security (CARES) Act. Their success is a testament of relationships built over many years due in part to the generous RPAC support of our members.

North Carolina was unprepared for some of that federal help, most notably the pandemic unemployment assistance that REALTORS® could use if necessary. Our regulatory team got unprecedented input as new systems were built to roll out the program. It wasn’t perfect, but it could have been much worse.

Space doesn’t allow anything but this tip-of-the-iceberg look at what the NC REALTORS® government affairs team has been doing. It has been all hands on deck at rattling speed. The same is true of the rest of NC REALTORS® staff. Meetings and education had to be moved online. Our communications and marketing team had to regularly update content on multiple websites and send a torrent of communications needed to keep you informed. Likewise, the legal hotline became a lifeline for many NC REALTORS® members.

As 2020 continues, NC REALTORS® staff hope that life becomes more predictable. The important work that REALTORS® do is fully back on track and everything can be done more safely. Most importantly, we hope all of you are healthy.

Over the past few months, NC REALTORS® has been working hard to respond to many issues facing the state’s real estate industry. Below are some highlights of our activities and tireless efforts to serve and support members. The infographics reflect statistics from March through May 2020.

3,409

Successfully lobbied Governor to designate real estate as an essential business in the NC stay-at-home order

14 legal videos

Fought 16

Local stay-at-home orders which restricted real estate services

member engagement

provided to members

4 Webinars from REALTOR® Partners

22

professional development

level of

resources, links & tools

Virtual classes

of free & discounted

Highest

OVER100

3

hours

increase

to members on COVID-related information and resources

9

LEGAL HOTLINE Questions

views

with FPCs & Congressmen in their district associations

Successfully passed legislation to enable remote closings

Member flash surveys 2 COVID Addendums

in video

Virtual Hill Visits

3

1,125

on email communications

429%

Status updates

64

to Standards Forms

Open rate

in the association’s history

Legal Q&As

7 Free webinars

80.88%

on impact of pandemic on residential market and on

45%

INCREASE IN organic reach

long-term rental industry

on the Homeowners Alliance (HOA) Facebook page

Monitored

26 local emergency orders

which restricted property management & vacation rental activity

ncrealtors.org • INSIGHT 9

SEI@SEISystems.com

legal QUIZ Take our latest quiz on our most popular, weekly Q&As.

BY WILL MARTIN, GENERAL COUNSEL

1.

If the Settlement of a residential real estate sales transaction takes place on a Friday, but the closing attorney is unable to record the deed and deed of trust until Monday, the prorations of real estate taxes and rents must be revised since the Offer to Purchase and Contract provides that Closing is not completed until the deed and deed of trust have been recorded. True or False?

5.

6.

In an email address or domain name, REALTORS® are not required to capitalize the term REALTOR® or separate the term from their name with punctuation.

True or False?

2.

7.

3.

8.

If the parties agree that a refrigerator will be included as a part of the sale of real estate, and the buyer discovers during the final walk-through that the refrigerator has stopped working, the buyer may refuse to close unless the seller agrees to repair the refrigerator. True or False?

An oral referral agreement between brokerage firms is not enforceable because the law requires contracts for brokerage services to be in writing. True or False?

4.

To help ensure that the Due Diligence Fee is timely paid, it is a smart idea for a listing agent to refuse to deliver the signed contract until the buyer pays the Due Diligence Fee. True or False?

Letters of intent are not binding.

True or False?

If a buyer agent calls a listing agent and explains the terms of an offer that his client intends to make, including the price, due diligence fee, earnest money deposit, and proposed closing date, the listing agent should always present the offer to her client. True or False?

If the buyer or the seller informs the other party that they do not intend to perform the contract, the other party still cannot legally terminate the contract until the Settlement Date has passed. True or False?

HOW DID YOU DO? Turn the page to discover the answers. ncrealtors.org • INSIGHT 11

that a broker can be disciplined for “[f]ailing to deliver, within a reasonable time, a completed copy of any purchase agreement or offer to buy and sell real estate to the buyer and to the seller.” (What should a seller do if the buyer delays in delivering the Due Diligence Fee? February 6, 2020, Category: Forms/Offer to Purchase and Contract/Due Diligence)

5.

legal QUIZ Answers 1.

False. Paragraph 9 of the Contract clearly states that unless the parties agree otherwise, the seller is responsible for prorated taxes on real property, rents, and owner’s association dues through the date of Settlement, not the completion of Closing. (Are the prorations of taxes and rents affected by a delay in Closing? November 7, 2019, Category: Forms/Offer to Purchase and Contract/ Miscellaneous)

2.

True, assuming the Offer to Purchase and Contract was used to put the property under contract and that the refrigerator was working when the offer was made. Paragraph 11 provides that the buyer’s obligation to complete the transaction is contingent on the Property being in substantially the same or better condition at closing as on the date of the offer, and according to paragraph 1(c), the “Property” includes personal property listed in paragraph 3.

(Is the seller required to convey personal property in substantially the same or better condition? December 12, 2019, Category: Forms/Offer to Purchase and Contract/Inspections/Repairs)

3.

False. Oral contracts for broker services between a broker and the broker's client are not enforceable in a court of law and are a violation of Real Estate Commission Rule 58A.0104, but oral contracts between brokerage firms for the payment of referral fees are enforceable. However, failing to reduce a referral agreement to writing is a lousy idea. (The importance of putting your referral agreements in writing January 2, 2020, Category: Forms/Miscellaneous)

4.

False. Holding on to the signed contract until the Due Diligence Fee has been delivered doesn’t have any effect on the validity of the contract, which becomes effective when acceptance of the offer has been communicated. In addition, intentionally delaying the delivery of a signed contract may be a violation of the license law, which provides 12 INSIGHT • August 2020

False. Although a letter of intent is generally considered to be a non-binding agreement to enter into a future contract, courts will treat it as a binding contract rather than an “agreement to agree” if it is clear under the circumstances that the parties intended to be bound by its terms. (What should I do with a letter of intent? February 20, 2020, Category: Contract Law)

6.

True. Although capitalization and the use of punctuation are generally required, that is not the case when using term REALTOR® in email addresses and domain names. However, all other rules of usage do still apply.

(What are the rules about using the term REALTOR® in an email address? February 27, 2020, Category: Miscellaneous/ REALTOR® Marks)

7.

True. The REALTOR® Code of Ethics requires REALTORS® to protect and promote the interests of their client, and the Real Estate Commission’s “Study Guide” provides that “[a]n agent has a duty to disclose to his or her principal any information that may…influence the principal’s decisions in the transaction.” Even though a verbal offer to purchase real estate is not enforceable, information about such an offer could influence the seller’s decision-making, so listing agents should always share the details of such offers with their clients. (Are listing agents required to present verbal offers to their clients? March 4, 2020, Category: Agency)

8.

False. If, before the Settlement Date, a party repudiates their obligation to perform under the contract, the other party can treat that repudiation as a breach of contract and legally terminate the contract early based on that breach. However, in order for a party’s repudiation to result in a breach of contract, that party must express, through words or conduct, a positive, distinct, unequivocal and absolute refusal or inability to perform. In other words, the party who desires to terminate would need strong evidence that the other party is absolutely refusing to perform their contractual obligations before the contract could be safely terminated prior to the Settlement Date. (If a buyer indicates he won’t close, when can a seller terminate the contract? May 7, 2020, Category: Contract Law)

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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BENEFITS

The Key to Opening New Doors The business opportunities in property management are expanding constantly, but the demands on your time are increasing just as fast. The objective of the NC REALTORS® PMD is to provide legislative, educational and networking opportunities to North Carolina’s professional property managers so they can you stay up-todate on trends and developments.

+ PMD Legal Handbook + Educational Meetings + Legislative Participation + Statewide Professional Networking

14 INSIGHT • August 2020

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.

Surviving Financially as an Independent

BY LEE NELSON

It’s been tough financially for so many people during the pandemic. People can’t pay their bills. REALTORS® are no different.

“There are definitely people getting out of the business,” says Matt Perry, operating principal of The Perry Group at Keller Williams Realty, Raleigh-Durham.

But for those still hoping to succeed in the industry and in their own finances, there are steps to take, challenges to meet and a new way of thinking.

ncrealtors.org • INSIGHT 15

“Lifelong healthy money habits can give you power for personal and professional success.” – Galia Gichon

Biggest Challenges “Agents were in a breeze mode for a while with the wait-and-see attitude when the coronavirus hit the country. They watched the news which surrounded them with lots of negativity,” Perry adds.

“But we are focusing now. Our mindset is so important,” he states. “You need to focus on what you can control. We can’t control COVID-19 or the restrictions that were upon us. But we can have a positive mindset and look at this as an opportunity instead of a crisis.”

Perry believes that activity and actions can save an agent’s business.

“You need to figure out what are the actions you will be taking on an hourly, daily, weekly or monthly basis to move your business forward,” he says.

Perry has encouraged his agents to send out lots of videos, create zoom calls and phone calls and engage other people to let them know you are there for them.

“There are still so many things that are good to be shared with others,” he adds.

16 INSIGHT • August 2020

Many people are still buying houses, and a lot of people are refinancing now because of great interest rates. That information can be shared and can give other people hope.

Keeping Busy and Keeping Connections Strong Ann Milton’s advice to her agents has also included nurturing the relationships they already have with past clients and their sphere of influence. Milton, the owner of Ann Milton Realty in Lillington, even hired a motivational speaker to come and speak to her agents in May to help them rekindle the spark to do business again.

“They need to talk with the people they know and tell them we are here to help with things, not just real estate,” she adds.

Some of her agents had to go to their mortgage lenders for payment deferments. They didn’t want to lose their homes. Helping clients who are

fearful of the same situation became part of an agent’s daily reach out.

What to Do to Make Ends Meet “For those still trying to sell homes or find buyers, don’t be afraid to ask for business,” says Galia Gichon, an independent personal financial expert.

After working on Wall Street as a bond research analyst, she founded the New York-based Down-to-Earth Finance, a financial education firm.

“Initially, some people who have their own businesses were afraid to ask for more business,” she adds. “I have a client who is an interior designer. She felt bad about asking people to hire her during this bad economic time. But she put it out there that she’s available, and she got five people to respond who wanted her to come to their homes.”

“As a freelancer myself, it’s tough when all of a sudden, a client drops out. It all has to start with little steps and really looking at your overall

"Our mindset is so important…we can have a positive mindset and look at this [pandemic] as an opportunity instead of a crisis.” – Matt Perry

money situation,” Gichon states.

Since the pandemic began, Gichon has been doing webinars and workshops online to help others figure out their cash flow and overall money situations. She stressed that you can change things, but it takes a little time.

“Lifelong healthy money habits can give you power for personal and professional success,” Gichon says.

Things Could Continue Down for a While “March and April were not the devastating months for agents like the general public thinks,” Perry says.

“Closings were happening, and the real estate people were not feeling the financial hit in May and June, generally,” he says.

“Most people had some record months in March and April.”

But when the pandemic hit hard in March, some REALTORS® shut down and went on vacation or just stopped working because they wanted to or had to. Some had kids they had to homeschool when schools

Healthy Money Habits • Set one goal at a time • Talk about money with your friends and family in a positive way • Read something about money • Swap money duties with your partner • Keep a money journal • Take an investment or personal finance class • Start a book club reading personal finance magazines or books ncrealtors.org • INSIGHT 17

Here are some tips from experts and REALTORS® about getting your finances and real estate business back on track: • Get Moving – “Physical activity and one’s mindset are everything,” Milton says.

"You have to put yourself as a priority.”

– Ann Milton

closed. That lack of activity will mean a lack of results and commissions from June through August, he adds.

“Those are the months that they will see a decline in money. The market numbers could drop as little as 20 percent or even 50 percent,” he states.

“The kids will be home most of the summer now until September, even if they go back at the end of summer.”

That means more REALTORS® who must stay home for family responsibilities will not have the time to put into business.

“I find in this type of situation (like the pandemic) that people either freeze, fight or flight,” Perry explains. “But if you look at this as an opportunity instead of a crisis, things can get better.”

What to Do Next If You are Financially Strained Gichon suggests her clients examine their fixed expenses for the next three months. Those include rent/mortgage, car payments, groceries, cell phone, utilities, child expenses, eating out and delivery, debts like credit cards and all insurance premiums. “These are all those bills that keep you living the life you live,” she says.

You can make it easier by choosing a personal finance app for your phone to put everything in one place. Gichon 18 INSIGHT • August 2020

• Keep Investing – “Putting money into your retirement plan now allows you to buy more shares at a lower price,” Gichon says.

• Be Smart for the Future – “Don’t borrow from your 401k or IRAs,” Gichon adds.

• Remain Close – “Now might not be the right time for people to buy or sell, but nurture those relationships and give them something that comes from value,” Perry says. “Sometimes, it’s just reaching out that shows you care.”

suggests apps such as mint.com, Your Bank, Wally, YNAB and more.

The Consumer Financial Protection Bureau (CFPB) has a lot of information and resources to ease the strain of those dealing with serious financial hardship caused

by COVID-19. The biggest thing is keeping up with your bills.

“Keep in mind that if you decide to use a program that lets you pause or reduce payments, you will still owe the money you have not paid once the program ends,” the website emphasizes.

But if you can’t pay your bills on time or for the amount needed, the CFPB says to not hesitate to contact your lenders and creditors. Lenders are being encouraged to work with their customers during this pandemic. The CARES Act also suspended payments on federally-held student loans through Sept. 30, 2020. But if you have student loans other than federally-held ones, you must call your servicer.

Sometimes just cutting expenses can help with the stress on your bank account and your mind. The CFPB gives these examples: • Find local restaurants’ cost-saving specials like “kids eat free” nights.

• Switch to lower-fee or no-fee financial institutions.

• Buy needed clothing and

furniture at second-hand shops or wait for sales.

• Use coupons.

• Investigate if you are eligible for energy assistance, weatherization programs or discounted utility rates.

• Pay bills on time to avoid penalties or late fees.

• Get rid of gym memberships if you don’t use it regularly.

• Cancel discount store memberships if not using them.

• Consider prepaid or fixed-rate phone plans.

• Discontinue cable or streaming services.

“You have to put yourself as a priority,” Milton says. “I encourage my folks to set up three accounts—one for operating, one for taxes and a sunshine fund. There might be rain, but we will make it through.”

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.

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ncrealtors.org • INSIGHT 19

Creating the Best

20 INSIGHT • August 2020

Virtual Tours Since the pandemic began, Patty Hampton has included virtual tours in all her listings.

“I had to adapt quickly. If you don’t learn to adapt to change in our industry, you can see yourself out of all revolving business,” says Hampton, owner of Hampton & Company Real Estate, Durham.

BY LEE NELSON Even before COVID-19, 46 percent of home buyers found virtual tours very useful, according to the 2019 National Association of REALTORS® (NAR) Home Buyer and Seller Generational Trends Report.

“Everyone starts online looking for homes,” she adds.

“Shelter is where we lay our heads at nights. Some people are in situations now financially, where a lot of their wealth is tied in their homes. To have the opportunity to pull out their equity to survive is important.”

"Using 3D virtual tours and virtual open houses can help people who want to sell or who need to buy," Hampton adds.

Even when all restrictions are lifted and open houses and showings can return to normal, virtual tours will remain a big plus for REALTORS® and their clients.

“Life is still happening. People are moving for their jobs.

I’m thankful to be of value to people in our profession,” Hampton says. “It’s misunderstood that people think we are just about making and selling houses. It’s of being service to others so their goals are reached.”

Ways to Create and Use Virtual Tours Virtual can mean a lot of things to a lot of people. The tours can be done in a variety of ways—depending on an agent’s budget, time, technology skills and preferences

ncrealtors.org • INSIGHT 21

of the seller. Virtual tours can help buyers see the house without going into it—which saves the owners from having people trek through their home and saves agents a lot of prep work like putting on gloves and masks in every new house they show.

Many agents get out their smartphones and do a video walkthrough of properties for their version of a virtual tour. They describe certain features of the home as they explore it. Some agents create these live on FaceTime or Zoom to replace open houses. Viewers can ask questions along the way. A video can also be made to stream on the agent’s website and other sites, and then chat boxes can let viewers ask anything they need to during the tour and get responses later.

The agent can also create a video with specialized 3D cameras or hire it done. The 3D tours allow potential buyers the ability to control what they want to look at versus just photo virtual tours, which most of the time are a slide show of photos with background music. They can look at ceilings, look at floors, look around corners and more.

Erica Anderson has offered video tours for the past five years. She began offering Zillow 3D tours, and it allows her to upload the tours of her listings and link them on her website and other locations.

“I always recommend virtual tours to my agents,” she explains. “And now, you have to be adaptable. The sellers expect this now.”

If someone doesn’t want to do the filming themselves, she knows a lot of registered Matterport 3D photographers in the Triangle area. It requires expensive equipment to do it yourself, or the cost to hire it done can be about $250 to $400. She highly recommends it because agents will see the value of investing in their listings, and it gives their sellers the best opportunity to sell the house.

“You can be creative and buy a good 3D camera for $150 nowadays,” says Robert Koenekamp, CEO and founder of Aerial Look. “You can get 360-degree views, still photography and videos for your listings all out of one camera.”

His company, headquartered in North Carolina, has been pioneering 3D, virtual reality and drone technologies up and down America’s East Coast, China, Dubai and London.

About six years ago, Koenekamp bought one of the first Matterport 3D cameras, which had just been created to offer 360-degree views in a video. He spent eight months on the road introducing the new technology to REALTORS®, developers and others across the country.

Aerial Look even joined the REALTOR® Partners Program to provide NC REALTOR® members affordable access to these real estate technologies.

“But it’s never been an easy sell until now,” he says.

“Some agents still don’t really want it, but their clients want it and ask for it.”

He admits no one wants to spend extra money.

“It’s definitely for the forward-thinking REALTOR® out there. When you are supposed to serve the client, but you don’t implement the right solutions available, it’s a disservice to your clients and your brand,” he adds.

Video and photography were passions of Jason Fisher, founder of Mammoth Hammer Media in Raleigh. He 22 INSIGHT • August 2020

Interactive and immersive 3D virtual tours allow potential buyers to stroll through listings any time of day.

provides digital media content for real estate agencies and other businesses, plus 3D virtual tours, photography and aerial imagery.

Fisher’s interactive and immersive 3D virtual tours allow potential buyers to stroll through listings any time of day on the phone or computer.

Buyers can get an immediate and true sense of the home, speeding up the decision making process. During the tour, REALTORS® can point out unique features with text overlays, embedded videos and product descriptions.

“Virtual tours hadn’t taken hold until recently,” he says.

“I was always trying to educate my clients about it. Yes, it’s spending a little extra money. But the pandemic has only accelerated the process, and I believe virtual tours will become a mainstay.”

He agrees there is no promise you will sell the house because you pay for virtual tours. It’s always a risk. But the risk is not crazy expensive. However, for those agents who only sell one or two homes a year, it may not be worth the extra investment, he explains.

“Some agents don’t even know about the technology,” he says.

While it's not a relatively new technology, some people just stay in their lane and stick to photography.

“Photos are important. But the tour allows people to physically move about the space and understand the flow of a house. It can turn the tide of someone’s decisions,” Fisher says. "If someone sees the video and becomes interested in seeing the house in person, that definitely qualifies that buyer

Dollhouse View – The Matterport 3D camera allows you to offer a dollhouse image of the space. It shows the entire home as if it were a dollhouse giving you the angles and the flow from one room to another.

Making Your Virtual Tours Sizzle Whether you plan on hiring someone to do your virtual tours for you or you use your own camera, the experts have some tips to make everything better.

If you make the video yourself, make it buyer-driven, not agent-driven, Koenekamp says. “Everyone is afraid they might say something wrong. But consumers love realism.”

Make sure light bulbs are working, the beds are made and blinds are opened up, Fisher says.

“Everything will be seen on the tour. In photos, you can keep certain rooms closed off. In virtual tours, there is full transparency in a space.”

Don’t just show them the home, show them the neighborhood, the local shopping center, the park, and drive past the school, Koenekamp adds. “You are selling a lifestyle.”

Include the closets if they are organized. “The majority of homes shown online right now only show the bedrooms and not the closets,” Hampton says. “Highlight them if they are good.”

Show little vignettes in a room. “Get creative within certain rooms. Show how it can be lived in,” Fisher states.

“A lot about real estate is still the seeing and touching,” Hampton says. Until we can get back to where people are completely comfortable going inside homes, virtual tours can be a big help to your business.

Drone Virtual Tours – The advantages of having drone videos for the outside of the home comes down to information. It can show the proximity to nearby schools, parks, shops, a golf course and more.

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.

as a potential buyer because they know the floor plan, flow and features of the house," he adds.

Ninety percent of agents using virtual tours say it helps them build a stronger brand in the marketplace, and 95 percent of people are more likely to call about homes with 3D walk-throughs, according to a Matterport survey.

Other Technologies to Choose Not only can you make your own virtual tour or pay someone else to create virtual or 3D tours of your listings, you can also offer your clients other add-ons to enhance the look of the listing and intrigue more buyers.

Virtual Staging – This is when furniture and accessories are added virtually to an empty room. You can also take a room with furniture that’s outdated, virtually remove it and then add in newer furniture.

ncrealtors.org • INSIGHT 23

WORKING TOGETHER TO

PROTECT HOMEOWNERS IN DARE COUNTY

Recent action by the Outer Banks Association of REALTORS® exemplifies the application of NC Homeowners Alliance resources to a broad public good.

BY PORTER GRAHAM LOCAL GOVERNMENT AFFAIRS DIRECTOR

A

s members of one of the largest trade organizations in North Carolina, REALTORS® understand the importance of organized activism to ensure that regulation affecting the real estate industry is as informed and constructive as possible.

Because grassroots engagement is an essential element of public advocacy, REALTORS® helped organize the NC Homeowners Alliance to facilitate property owners’ action on issues important to their rights and budgets.

The Homeowners Alliance has equipped NC REALTORS® to act as community stewards, expanding government affairs activity beyond engagement with legislators and regulators on issues potentiating specific economic costs or savings for members.

Recent action by the Outer Banks Association of REALTORS® to foster community resilience in Dare County exemplifies the application of Homeowners Alliance resources to a broad public good, belying

conventional portrayals of what lobbying is and does. It started with a big problem involving the revised 2020 Flood Insurance Rate Map for Dare County.

The Federal Emergency Management Agency (FEMA) delineates flood risk zones to dictate flood insurance rates and local floodplain management measures on bases specific to topographical and historic indicators of a property’s potential for flood damage. FEMA periodically reviews the accuracy of resulting Flood Insurance Rate Maps (FIRMs), which geographically represent properties’ relative flood risk in colorful bands that stretch along shorelines and curve around elevated areas.

FEMA began revising Dare County’s 2006 FIRM in 2016, collating ten years of historical flood data in computer models to project future flood hazards to Outer Banks properties through 2030. Draft FIRMs released to county officials revealed a problem: the federal statistics predated numerous named storms with substantial local flooding, significantly underrepresenting area risk. While the 2020 FIRM would favorably affect many homeowners by reducing their flood insurance premiums, it would put much of the same population at risk via exemptions from statutory requirements for flood insurance enrollment in highrisk zones. Should homeowners misinterpret their recategorization in lower-risk zones as an indication that flood insurance was no longer needed and cancel their coverage, they would forgo important protection for their properties and the grandfathered rates without which replacement flood insurance might be unaffordable should a future FIRM with newer data restore the coverage requirement.

Additionally, the 2020 FIRM eliminated or substantially lowered minimum elevations for new construction, allowing homes to be built at or near natural grade in areas of repeat flood damage to elevated properties.

It was clear to county officials that the 2020 FIRM posed a danger to Outer Banks homeowners, and that federal corrective action was not forthcoming. To do something about it, Dare County initiated a public education campaign about the defects in the federal data, and undertook a cooperative effort with its six municipalities to locally codify federal construction standards expiring under the new FIRM.

The Outer Banks Association of REALTORS® was involved at the outset but played an unexpectedly central role when the COVID-19 pandemic disrupted the county’s plans.

Essential to Dare County’s public education campaign was a direct mailer intended for distribution to the nearly 13,000 property owners transitioning out of insurancerequired zones. The literature would not only inform homeowners that placement in a lower risk zone did nothing to affect their actual flood risk, but win Dare County important National Flood Insurance Program Community Rating System (NFIPCRS) points that incentivize resilience by rewarding exemplary floodplain management with additional premium reductions. Dare County derives considerable income from occupancy tax and other tourismdependent revenues jeopardized by the pandemic.

When resulting budgetary shortfalls eliminated the funding intended to support the mailer or other direct outreach to property owners ncrealtors.org • INSIGHT 25

concerning flood risk, REALTORS® responded with an application to the NC Homeowners Alliance. The Alliance’s emphasis on protecting property via public education allowed Outer Banks REALTORS® to independently execute and advance community resilience by fully funding and organizing a direct mailing to all affected homeowners. Fewer than 20 days after the Outer Banks association’s initial funding request, flood risk mailers meeting NFIP-CRS standards went out from Raleigh to homeowners across Dare County.

In ensuring Dare County citizens received information crucial to their wellbeing and to area economic resilience, Outer Banks REALTORS® demonstrated a unique capability for community stewardship. It was a timely opportunity, coinciding with REALTORS®’ negotiations in two Outer Banks municipalities for important modifications in proposed flood-resistant construction standards.

As Outer Banks REALTORS® operate across eight local jurisdictions, promoting commonsense consistency among area regulations is a primary association priority. Beginning in 2017, Dare County organized municipal planning staff and members of the local surveying, real estate, insurance and residential construction industries to cooperatively design consistent building and development standards to replace federal elevation mandates expiring under the 2020 FIRM. This stakeholder-inclusive process culminated in a model Flood Damage Prevention Ordinance (FDPO) distributed to Outer Banks municipalities for local codification.

While six jurisdictions, including Dare County, proceeded with substantively identical FDPOs, two sought additional provisions mandating that lateral additions to existing homes meet minimum elevation requirements for new construction. Because the proposed elevation requirements governing many hypothetical additions significantly exceeded the elevation 26 INSIGHT • August 2020

Dare County GIS Department Online Maps provide a visual comparison of the 2006 flood insurance rate map (top) and 2020 flood insurance rate map (bottom). To view the interactive map online, please visit gis.darecountync.gov/floodzones.

of the existing adjacent floors, they would have limited the improvement and the value of affected homes, complicated nonconforming use disclosures, and contributed additional and unnecessary regulatory complexity. REALTORS® initiated a local call for action, successfully partnering with home builders and surveyors to dominate hearings on the FDPOs and get the relevant language out of the drafts.

Outer Banks REALTORS®’ simultaneous public efforts to promote community resilience via flood risk education and oppose onerous development regulation achieved a meaningful balance and brought awareness to the complex environmental and regulatory challenges inherent in the practice of real estate on our barrier islands. It also demonstrated the utility of NC Homeowners Alliance resources as a

vehicle for the kind of civic goodwill REALTORS®’ disproportionate participation on school, planning and executive boards signifies. Thank you for equipping NC REALTORS® with the resources to undertake this effort, and a special thanks to NC Homeowners Alliance Committee Chair, Wendy Harris, and staff liaison, Katharine Wendt, for your help to get the Outer Banks association across the finish line.

NC HOMEOWNERS

ALLIANCE For more information about the NC Homeowners Alliance, please visit nchomeownersalliance.org.

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