OC REALTOR® - May/June 2019

ADDRESSING CALIFORNIA’S HOUSING SHORTAGE

NEW LAWS AFFECTING REALTORS® IN 2019 on page 34

on page 10

SURPRISE! INTEREST RATES ARE DOWN!

WHAT REALTORS NEED TO KNOW ABOUT HOAs

®

on page 26

on page 36 MAY | JUNE 2019

on page 24

TAKE TIME TO VOTE! Choose up to five new members of the

Orange County REALTORS® Board of Directors.

Candidate statements and voting instructions appear on pages 18–21.

CONTENTS p. 24 MAY | JUNE 2019

President’s Message 08 Getting from “No” to “Yes” Matt Clements says that understanding the true meaning of “home” may help you turn a prospect’s “no” into a client’s “yes.”

Features 18 O range County REALTORS® Annual Election

Homeownership and the American Dream Home is the place in which one receives initial nurture, from which one goes to make one’s way in the world, and to which one returns—in person or in thought—for shelter, warmth, and comfort. For many Orange County families, homeownership yields a solid return on investment, makes housing costs more predictable, and fulfills the American Dream.

Cover Story 24 Homeownership and the American Dream

ob Hunt writes that homeownership may be a consequence of having B lived the Dream but does not define it.

26 5 Things Every REALTOR Needs to Know About ®

Homeowners’ Associations

Scott Clements cautions that your clients should not buy without knowing what they are getting into, or own without properly protecting what they have.

28 Got Spring Fever?

Michelle McCann offers home maintenance as the ideal antidote and suggests that, in the spring, you check, correct, clean, and replace for increased comfort and safety all year long.

State Update 10 Addressing California’s Housing Shortage

Jared Martin describes five bills C.A.R. is either sponsoring or supporting to increase housing construction in the Golden State.

p. 8

p. 10

p. 26

p. 30

Ten candidates are running to fill five threeyear positions on the OC REALTORS® Board of Directors. Voting begins on May 7 and ends on May 21.

30 Reality Reality: OC REALTOR ® Fondly Remembers Bob Hunt

Sherri Butterfield and Wayne S. Bell recall the ethics and eloquence of a man whose insightful columns about real estate regularly graced the pages of this magazine.

32 2019 Annual Membership Meeting and Housing Forecast

Economist Chris Thornberg predicts that, overall, 2019 will be a great year for selling real estate.

34 New Laws Affecting REALTORS® in 2019

Tiffany Wood reports on a meeting at which Gov Hutchinson summarized the provisions of new laws that clarify the disclosure responsibilities of a dual agent and require additional sexual harassment prevention training.

36 The Orange County Housing Update

“Surprise!” says Steven Thomas. “Interest rates are down, and now is the time to buy!”

38 G adgetry: Microbot Push 2nd Generation

Albert Ornelas describes a new wireless robotic button pusher for smart home automation.

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CONTENTS

ORANGE COUNTY

® REALTOR MAGAZINE

p. 28

25552 La Paz Road Laguna Hills, CA 92653

10540 Talbert Avenue, Ste. 225 West Fountain Valley, CA 92708

949.586.6800

714.375.9313

www.ocar.org 2019 OFFICERS Matt Clements President Danielle Corliss President-Elect Lisa Schulz Treasurer Tammy Newland-Shishido Immediate Past President Dave Stefanides Chief Executive Officer

2019 BOARD OF DIRECTORS

p. 38

Departments 12

Names in the News

22

Education Central and Calendar: Upcoming Classes by Track

40

Mentions

42

Affiliates in Action: New REALTOR® Orientations

Jost Atwood Joyce Endo Dorinda Francois Michele Harrington Bob Hartman Tim Hayden Julie Hile Spencer Hoo Jeffrey Jackson Debra Krumboltz

Liz Lewis Gary Ludwig Charleen Nagata-Newhouse Randy Rector Lacy Robertson Adam Rodell Aaron Rosen Scott White Bob Wolff Eric Wu

MAGAZINE STAFF Sabrina Blair

Breanna Reed

Director of Communications sabrina@ocar.org

Accounting Assistant breanna@ocar.org

Sherri Butterfield

Albert Ornelas

Communications Specialist sherri@ocar.org

Multimedia Specialist albert@ocar.org

Online Magazine

Love the Orange County REALTOR®? Did you know that you can read it online, anytime? Read past issues at www.ocar.org/magazine.

Mission Statement

The mission of the Orange County REALTORS® is to promote the REALTOR® Code of Ethics; to provide education, services, and resources to our members; and to advocate the protection of real property rights.

Notice to All Members

p. 36

On the Cover No matter what the shape, size, color, or style, home is a place like no other. In the early 1820s, American actor and dramatist John Howard Payne wrote a poem in which he declared, “There’s no place like home.” REALTORS® understand the truth of Payne’s words and are working to help more families find their version of that unique and magical place.

Follow us on social media facebook.com/theocrealtors twitter.com/the_ocrealtors

instagram.com/theocrealtors snapchat.com/add/ocrealtors

It is the long-established policy of this Association, the California Association of REALTORS®, and the National Association of REALTORS® to adhere to both the letter and spirit of the federal and state antitrust laws. For their own protection, members should be aware of the antitrust laws as they affect their specific business activities. Any illegal activity under the state and federal antitrust laws is not in compliance with Association policy, nor is it in the interests of the Association or its members. Participation in Association activities must occur only in harmony with these very important laws. Federal law prohibits discrimination based on race, color, sex, religion, or national origin in connection with the sale or rental of residential real estate, in advertising the sale or rental of housing, in the financing of housing, and the provision of real estate brokerage services. The Orange County REALTOR® editor reserves the right to review and edit all submissions.

Orange County REALTORS® makes no warranties and assumes no responsibility for the accuracy of the information contained herein. The opinions expressed in articles are not necessarily the opinions of the Orange County REALTORS®. Orange County REALTORS® does not necessarily endorse the companies, products, or services advertised in this magazine unless specifically stated.

The Orange County REALTOR® (USPS 025-445, ISSN 1945-2179) Volume 11, Issue 3, is published by the Orange County REALTORS®, 25552 La Paz Road, Laguna Hills, CA 92653. Periodicals postage paid at Laguna Beach, CA, and additional mailing offices. POSTMASTER: Send address changes to Orange County REALTORS®, 25552 La Paz Road, Laguna Hills, CA 92653-5127. Annual membership dues include $3.13 for a one-year (6 issues) subscription to the Orange County REALTOR® magazine. The Orange County REALTOR® magazine cannot be responsible for unsolicited materials.

Publisher: Orange County REALTORS® Printer: The Monaco Group

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PRESIDENT’S MESSAGE Ask great questions, listen to the answers your prospects give, and appreciate what they are sharing with you.

Getting from

“No” to “Yes” Understanding the true meaning of “home” may help you turn a prospect’s “no” into a client’s “yes.”

By Matt Clements 2019 PRESIDENT, ORANGE COUNTY REALTORS®

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Photo: Orange County REALTORS­­® - Albert Ornelas

I

t’s often said that children put everything into perspective. I have a super-fun two-year-old! He puts me in my place daily with his energy, innocent love, and that simple, happy smile. To a father, that’s perspective!

Cute and charming as our son is, he’s becoming ever so cunning with his words. He has officially learned how to say “no.” He says the word clearly and often and sometimes says, “Daddy, no!”

It reminds me of the prospects who will deliver that same line, “no,” but are not as “cute” when they say it as my baby boy.

Remember, most people are so negative that they must say “no” at least seven times before they can say “yes”!

Ask great questions, listen to the answers your prospects give, and appreciate what they are sharing with you. Their sharing is the beginning of their journey of trust. If you made it to the table to be one of the REALTORS® they are considering, you are on the right track.

This month, we find ourselves in the Spring Market— the peak season for real estate—filled with abundant opportunities for “yes.”

The real question is: Are you a “yes” REALTOR®?

If you are, it’s time to dig deeper and answer this question: Are you a homeowner?

I’d like each of you to answer this question and discover your real why or why not? Why do you own a home? Why don’t you own a home? What does a home represent to you and your family?

Begin to ask yourself these critical questions and you’ll discover the true meaning of the word “home.”

Make this peak season your best yet!

THE STATE UPDATE

Addressing

California’s Housing Shortage

By Jared Martin C.A.R. PRESIDENT

C.A.R. has announced its sponsorship or support of five bills specifically intended to increase housing construction.

T

he year is starting off to be a busy one on the legislative front. The California Association of REALTORS® (C.A.R.) recently announced its sponsorship or support of legislation to address California’s housing shortage.

Among the measures intended to increase housing construction that C.A.R. is championing are the following: n S B 50 (Sen. Scott Wiener) Housing Development Around Transit: Boosts housing and apartment development in and around major transit hubs and employers and provides developers with a “density bonus”— authority to build additional units in exchange for building below-market units—and other incentives or concessions.

n A B 1074 (Asm. Tyler Diep) Accessory Dwelling Units: Increases housing supply by selling bonds to provide loans to homeowners to construct accessory dwelling units (ADUs).

Photos: www.istockphoto.com/ Worawee Meepian

n AB 1568 (Asm. Kevin McCarty) Housing Accountability: Holds local governments

accountable by withholding gas tax revenue if counties do not meet home-building benchmarks verified by the California Department of Housing and Community Development.

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THE STATE UPDATE

Photos: www.istockphoto.com/ Juan Monino

n SB 509 (Sen. Anthony Portantino) n AB 1020 (Asm. Jacqui Irwin) State Housing Affordable Housing License Plate Agency: Establishes a state Housing Agency Program: Establishes a housing crisis with a cabinet-level Secretary of Housing to awareness program through the issuance oversee all housing-related initiatives and of a specialty license plate by the California activities throughout the state of California.

Department of Motor Vehicles. The license plate would generate revenues for affordable housing programs throughout the state.

C.A.R. is also backing Governor Gavin Newsom’s $1.75 billion housing crisis package to address the housing shortage. His proposals call for higher shortterm statewide housing goals established by the California Department of Housing and Community Development, $250 million to help cities and counties with planning, $500 million in housing production incentive grants for local governments, $500 million for expanding the State Housing Tax Credit Program to spur middle-class housing production, and modernizing long-term Regional Housing Need Allocation (RHNA) goals by 2022. The plan would also provide necessary accountability by withholding SB 1 gas tax funds from jurisdictions that are not compliant with the updated RHNA goals.

We have invited Governor Newsom to speak at C.A.R.’s Legislative Day, May 1, in Sacramento.

For the past forty-seven years, Legislative Day has remained C.A.R.’s preeminent legislative event, giving California REALTORS® the opportunity to meet and discuss real estate issues directly with their state legislators and staff.

Attending Legislative Day is not only a great investment in your business but also provides you with an opportunity to hear from the state’s most dynamic political leaders and C.A.R. leadership.

While attendance at Legislative Day is free for all California REALTORS®, if you’re a first-time attendee, you may be eligible for a Legislative Day scholarship to cover travel expenses. To apply, inquire with your local Association. To attend, sign up with your local Association of REALTORS®.

While you’re in Sacramento, don’t miss the highly anticipated Mid-Year Lunch, featuring California Association of REALTORS® CEO Joel Singer as the keynote speaker on Thursday, May 2.

This column is based on and has been excerpted from the Monthly Message by C.A.R. President Jared Martin that was distributed via email on March 21, 2019. It is being reprinted here with permission.

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NAMES IN THE NEWS

Photo by Marion Butterfield

OC REALTORS® Helps Hugh Nguyen Kick Off His Campaign for Reelection

O

n March 1, Orange County REALTORS® joined other guests at Paracel Seafood Restaurant in Westminster for a dinner party to help Orange County Clerk-Recorder Hugh Nguyen (in the center, wearing a blue suit) kick off his reelection campaign. Nguyen was selected for the position by the Orange County Board of Supervisors on April 2, 2013, after an extensive recruitment that yielded nine hundred applicants to fill the vacancy created when former Clerk-Recorder Tom Daly was elected to the state Assembly. On June 5, 2018, Nguyen was overwhelmingly reelected to another four-year term.

The Number of Visitors Is Up; Unemployment Is Down The Orange County Visitors Association reports that, in 2018, Orange County welcomed 50.16 million visitors, a 1.6 percent increase over the number for 2017. According to the state Employment Development Department’s monthly report, during the twelve-month period that ended in February, Orange County employers added 11,400 workers and the jobless rate fell to a century-low mark of 3 percent.

Orange County United Way Announces Welcome Home OC

During a United to End Homelessness Anniversary Reception in March, Sue Parks, president and CEO of OC United Way, announced the Welcome Home OC program. Modeling private-sector approaches that have proved successful elsewhere, this program will incentivize Orange County’s private-market rentalproperty owners to make available critically needed 12

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units for use by formerly homeless individuals and families with vouchers and supportive care. An initial investment of $250,000 from the County of Orange enabled United Way to launch a pilot program last November from which Welcome Home OC will be scaled countywide. Ernie Schroeder of Schroeder Property Management agreed to provide the first ten units, making it possible for eleven formerly homeless individuals to have a place to call home!

Tammy Newland-Shishido Receives Hall of Fame Award Congratulations to Orange County REALTORS® Immediate Past President Tammy Newland-Shishido, who was recently recognized by the California Association of REALTORS® (C.A.R.) for having contributed $25,000 to the REALTOR® Action Fund and for being inducted into the 2018 National Association of REALTORS® Hall of Fame. On May 2 in Sacramento, Tammy will be given the 2018 California Hall of Fame commemorative award.

NAMES IN THE NEWS

HB City Manager Fred Wilson to Retire Huntington Beach City Manager Fred Wilson has announced that May 10 will be his last day in office.

Wilson joined the city in 2008 after serving as San Bernardino’s city manager for ten years. In a related article in the Orange County Register, Huntington Beach Councilwoman Barbara Delgleize said, “He is leaving Huntington Beach an even better place than when he came here.”

This Names in the News column is intended to be primarily a place where Orange County REALTORS® and Affiliate members can share both personal and professional news—about births (of children or grandchildren), graduations, weddings, anniversaries, accomplishments, awards, and other milestones—with one another. If you have news to share, email it to OC REALTOR ® Writer and Editor Sherri Butterfield at Sherri@ocar.org.

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NAMES IN THE NEWS

Photo by Marion Butterfield

Continued from Page 13

HB Police Department Presents 2019 Department Awards

Photo by Marion Butterfield

On March 21 at the Hilton Waterfront Resort in Huntington Beach, the Huntington Beach Police Department recognized its employees and honored its heroes with individual and team awards. Pictured following the ceremony with program host Tim Conway, Jr. (in the center, wearing a yellow tie) are, from left to right, T. S. Martin, Bill Cuppy, Ron Pascual, Tiffany Gardner Wood, and Huntington Beach Chief of Police Robert Handy.

Bill Brough Honors Michele Harrington As 73rd Assembly District Woman of the Year

Steven Choi Honors Mary Visconte As 68th Assembly District Woman of the Year

On March 1, at a gathering of friends at Brio Tuscany Grill in Dana Point, Assemblyman Bill Brough (73rd District) announced that he had selected Michele Harrington as the 2019 73rd Assembly District Woman of the Year. Brough mentioned that Michele had served in the Marine Corps, built a successful career in real estate, coached other agents and broker/owners, and authored her first book, From Zero to Hero: Achieve Your Dreams Through the Power of Self-Discipline. He added that Michele is committed to supporting volunteer efforts focused on helping those with the most need and the least access and that she had founded the Orphan Project, a nonprofit organization that supports the care of vulnerable children in Africa and around the world.

On March 4, Assemblyman Steven Choi (68th District) honored Mary Visconte as the 2019 68th Assembly District Woman of the Year. In making the announcement, Choi said that Mary, whom Orange County REALTORS® honored as its 2017 Volunteer of the Year, works tirelessly volunteering her time for her community and expressed the hope that this recognition would “exemplify the hard work, selflessness, and leadership that Mary Visconte exemplifies for us all.”

Shown with Mary in Sacramento are (from left to right) Assembly Republican Leader Marie Waldron, Assemblyman Steven Choi, Assemblywoman Monique Limon, and Assembly Speaker Anthony Rendon.

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Continued on Page 16

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Photo by Marion Butterfield

NAMES IN THE NEWS

Don Wagner Elected to OC Board of Supervisors

Katie Porter Is Guest Speaker at League of Cities Meeting

In a March special election, former Irvine Mayor Don Wagner was elected to represent the Third District on the Orange County Board of Supervisors, filling the vacancy that had been created in November when former Orange County Supervisor Todd Spitzer was elected Orange County District Attorney. At a special Irvine City Council meeting in early April, Mayor Pro Tem Christina Shea succeeded to the office of mayor. Under city rules, the mayor pro tem becomes mayor unless he or she declines the post in writing. Members of the City Council then appointed Councilman Anthony Kuo (pictured above) to serve as mayor pro tem.

Congresswoman Katie Porter (45th District), who is pictured with Orange County REALTORS® Federal Political Coordinator Jeffrey Jackson, was the guest speaker at the League of California Cities Orange County Division General Membership Meeting on March 1, where she answered questions about housing affordability, sober living homes, and taxes, and declared, “Student loans are not a drag on our economy.” n

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ORANGE COUNTY REALTORS®

ANNUAL ELECTION

ORANGE COUNTY REALTORS® BOARD OF DIRECTORS ELECTION

Begins on Tuesday, May 7 Ten candidates are running to fill five three-year positions.

Orange County REALTORS® will hold an election beginning on Tuesday, May 7, and ending on Tuesday, May 21, for the purpose of choosing REALTOR® member candidates to fill five three-year positions on the 2020–2022 Orange County REALTORS® Board of Directors. All REALTOR® members of the Association are eligible to vote.

Voting Information and Instructions Beginning on Tuesday, May 7, at 8:00 a.m., REALTOR® members of Orange County REALTORS® may vote online at www.OCAR.org/election. Those who choose to submit a ballot may vote for up to five candidates but may not vote more than once for the same person. Voting concludes on Tuesday, May 21, at 5:00 p.m.

You no longer need to access an email to vote. You simply need to know your OCAR.org/My Account User ID and password to log into the voting site, which is accessible directly from www.OCAR.org/election.

The election will be held exclusively online—no more paper ballots. However, if you need assistance with the process, you may call Orange County REALTORS® at either 949-586-6800 or 714-375-9313, email Orange County REALTORS® at election@ocar.org, or come to either Orange County REALTORS® office, where a Management Team member will help you log in at one of our member computers.

Voting begins on Tuesday, May 7, at 8:00 a.m.

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Voting concludes on Tuesday, May 21, at 5:00 p.m.

ANNUAL ELECTION

Candidates The ten candidates are listed below in ballot order. This order conforms to the randomized drawing of letters of the alphabet conducted for the Special Election that was held in on Tuesday, March 12, 2019, to fill the vacancy on the Orange County Board of Supervisors that was created when former Supervisor Todd Spitzer was elected Orange County District Attorney.

n Joyce Endo n Cassandra Amos n Chip McAllister n Christina Fu n Spencer Hoo n Felix Hung n Olesya Drozdova n Lori Namazi n Scott White n Sherrie LeVan Candidate statements for these nine candidates appear in ballot order on pages 19–21 in this issue of OC REALTOR®.

JOYCE ENDO

Remember to Vote! ü Ten candidates are running to fill five three-year positions on the Orange County REALTORS® Board of Directors. ü A ll REALTOR® members of the Association are eligible to vote. ü Voting begins on Tuesday, May 7, at 8:00

a.m.

ü Voting takes place exclusively online at www.OCAR.org/election. ü To log into the voting site, you need to know your OCAR.org/MyAccount user ID and password. ü Y ou may not vote more than once for the same candidate. ü Voting concludes on Tuesday, May 21, at 5:00 p.m.

If you have questions, call either 949-586-6800 or 714-375-9313, or send an email to election@ocar.org.

If you need assistance with the process, come to the Orange County REALTORS® office in Laguna Hills or Fountain Valley, where a Management Team member will help you log in and vote at a member computer.

CASSANDRA AMOS

It has been an honor to be your voice as one of the Directors since 2017. I have been a REALTOR® member of Orange County REALTORS® since obtaining my license in 2005 and have served and currently serve on committees and participate in volunteer opportunities. I love attending Broker Previews to meet other REALTORS® and industry professionals and to share information. Please consider voting for me to represent you for a second term. I will continue to serve as a champion for professionalism in our industry and to advocate for homeownership and property rights.

My decision to run for the Board and to make this commitment of time stems from my sense of service to a greater cause.

Throughout my years in this industry, I have assisted countless agents in closings and ensuring compliance. This has given me first-hand insight into an agent’s daily issues. As a graduate of the Orange County REALTORS® Leadership Academy, I have received training on serving on a Board of Directors with strong emphasis on our Code of Ethics. Volunteering with local charities has also been an inspiration to become more involved with worthy endeavors benefitting many in the process.

n Director, OC REALTORS®, 2017–2019 n Chair, OC REALTORS® Local Government Relations Committee North, 2019 n Member, OC REALTORS® Finance Committee, 2017, 2018, 2019 n Member, OC REALTORS® Political Affairs and Elections Committee, 2016–2019 n Member, OC REALTORS® Volunteerism and Community Outreach Committee, 2016, 2017 n President, Women’s Council of REALTORS® Coastal-West Orange County Network, 2017 n Member, AREAA OC Chapter, 2017, 2018, 2019

n Graduate, OC REALTORS® Leadership Academy n Certified Negotiation Expert n Short Sale, Foreclosure Resource n Licensed since 2007

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ANNUAL ELECTION Continued from Page 19

CHIP MCALLISTER After winning the CBS Emmy-Award-winning television show The Amazing Race, my wife Kim and I realized that we can do anything as long as we work together. Few things give me more joy than serving others. Utilizing my platform and interpersonal skills, I have been rewarded on such a high level by working with OC REALTORS® committee members on the Education and MLS Committees to effect positive change. I will zealously continue my strides toward serving our clients and my fellow REALTORS® on the highest level possible. As a new broker, I would be honored to serve on the Orange County REALTORS® Board of Directors. n Cadet, OC REALTORS® Leadership Academy, Class of 2019 n Vice Chair, OC REALTORS® Education Committee n Member, OC REALTORS® Multiple Listing Service Committee n Member, OC REALTORS® Education Committee, 2018 n Voted Locale Magazine 2018 OC’s Favorite REALTOR® n Board Member, OC Rehabilitation Institute, 2005–2018 n Emcee, Dove Dash for High Hopes Foundation, 2014–2018

SPENCER HOO

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CHRISTINA FU When I first joined Orange County REALTORS® in 2016, I was impressed with the abundance of educational classes offered through the Association. I soon learned that this organization had much more to offer. I was not only welcomed at classes and events but also encouraged by many members to become more involved. As a result, I joined a few committees and am a cadet in the Leadership Academy’s Class of 2019. After learning more about our Association, I now feel truly honored to be part of such a progressive organization and hope that you will consider me to become one of your Directors. n Cadet, OC REALTORS® Leadership Academy, Class of 2019 nM ember, OC REALTORS® Young Professionals Network (YPN) Committee, 2017–2019 n Member, OC REALTORS® Global Business Alliance Committee, 2017–2019 n Member, OC REALTORS® Leadership and Personal Development Committee, 2017–2019 n Member, OC Asian Real Estate Association of America (AREAA), 2017–2019 n Member, National Association of Hispanic Real Estate Professionals (NAHREP), 2017 n Certified International Property Specialist (CIPS)

FELIX HUNG

Because I came from the “other” large Orange County– based Association of REALTORS®, it wasn’t until after I joined Orange County REALTORS® that I realized how much more OC REALTORS® provides for its members, whether it’s support, education, or ancillary services and benefits. I want to utilize my voice and perspective as a minority millennial regarding matters that may be affecting our industry, either locally or at large. Having extensive practical international real estate experience, I wish to continue to serve and advise on related issues, even after my term as 2018 and 2019 Global Committee Chair concludes.

Originally licensed in 2004, I am marking my sixteenth year in real estate. Widely recognized as a social media real estate expert, I offer classes on Organic Facebook Lead Generation and have trained thousands of agents across the United States. When not speaking, coaching, or training others, I volunteer with the Orange County Rescue Mission and the Midnight Rescue Mission in Los Angeles. I have served on the Board of Directors for the Asian Real Estate Association of America (AREAA) Orange County and would like to contribute similarly to the Orange County REALTORS®. With this goal in mind, I humbly ask for your vote.

n Director, California Association of REALTORS®, 2018– Present n Director, Orange County REALTORS®, 2018 n Director, Asian Real Estate Association of America, OC Chapter, 2018 n Chair, OC REALTORS® Global Business Alliance Committee, 2018–2019 n Member, OC REALTORS® Young Professionals Network (YPN) Committee, 2017–2019 n Member, N.A.R. Global Businesses and Alliances Committee, 2019 n Certified International Property Specialist (CIPS)

nD irector, Asian Real Estate Association of America, 2017, 2018 nM ember, OC REALTORS® Bylaws Committee, 2018 n Member, OC REALTORS® Strategic Partners Committee, 2017 n Member, Asian Real Estate Association of America, 2015–2018 n Member, National Association of Hispanic Real Estate Professionals (NAHREP), 2017 n Member, Women’s Council of REALTORS®, 2017

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ANNUAL ELECTION

OLESYA DROZDOVA As an Orange County REALTORS® member since 2004, I feel fortunate to be part of such a respected professional organization. While I have always felt strong support from OC REALTORS® through the services and benefits offered to us REALTORS®, I believe our Association is only as strong as the contributions of each of its individual members. Over the years, I have gained experience and skills that I would like to contribute to our organization by serving fellow OC REALTORS® members. I believe in business ethics and professional standards as a core of our industry and the basis for its future. n Graduate, OC REALTORS® Leadership Academy, Class of 2018 n Chair, OC REALTORS® Leadership Academy Alumni, 2019 n Member, OC REALTORS® Global Business Alliance Committee, 2017–Present n Vice Chair, OC REALTORS® Global Business Alliance Committee, 2019 n Member, OC REALTORS® Green Committee, 2018–Present n Member, OC REALTORS® Professional Standards Committee, 2019 n Certified International Property Specialist (CIPS)

SCOTT WHITE

LORI NAMAZI As a proud advocate for our industry, I am willing to engage, ask the hard questions, and challenge the status quo. With experience as both a corporate and an independent broker, my focus is on results and solutions that will make the greatest positive impact on our membership. I look forward to serving the Orange County REALTORS®, especially in the areas of education and professional development, as a voice and proponent for our members. n Independent Broker nF ormer Corporate Broker of Record for 1,850+ agents nD irector, Orange County REALTORS®, 2015–2018 n Chair, OC REALTORS® Education Committee, 2019 n Director, California Regional Multiple Listing Service, 2017–2018 n Vice Chair, C.A.R. Professional Development Committee, 2019 n 2019 President-Elect, Women’s Council of REALTORS®

SHERRIe LEVAN

I love our industry, and I love protecting it. I am equally passionate about protecting our members and homeowners. I have spent ten years serving Orange County REALTORS® in various capacities, including currently as an OC REALTORS® Director and a California Association of REALTORS® Director. I believe in mentoring the next generation of leaders in our Association and am proud to know that I have had a hand in encouraging several of the newest, most promising leaders in our Association. I would appreciate the opportunity to serve three more years to complete this mission of service and growth. I will always protect the interests of our members.

It is my passion to encourage all REALTORS® to reach for the stars in educational achievements and professional practices. I believe ongoing education and community volunteerism will cause the public to see us as an asset.

As co-chair and chair for the Orange County REALTORS® Independent Broker Alliance (IBA) Committee I have worked to establish ongoing education through forums and the creation of the IBA Mastery Program. I am passionate about the success of our REALTORS® and understand the importance of being an OC REALTORS® Director. I humbly ask for your vote to continue to support you in achieving your success.

nD irector, Orange County REALTORS® n Director, California Association of REALTORS® n Director, National Association of REALTORS®, 2018 nC hair, OC REALTORS® Education Committee, 2016 n Facilitator, New REALTOR® Orientations, 3+ years n Mentor to more than 25 REALTORS® and OC REALTORS® volunteer leaders nT rustee, OC REALTORS® Political Affairs and Elections Committee

n Graduate, OC REALTORS® Leadership Academy n Member, OC REALTORS® Education Committee n Member, OC REALTORS® Professional Standards Committee n Co-Chair and Chair, OC REALTORS® Independent Brokers Alliance Committee, 3 years n Founder and President, Ladera Ranch Chamber of Commerce, 2007 n Volunteer, Saddleback Church, since 2003

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COVER STORY

“The American Dream is about much more than homeownership.

For many, owning a home may be a consequence of having lived the Dream, but it certainly does not define it.”

—Bob Hunt (1937–2019)

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COVER STORY

www.istockphoto.com/AzmanL

A

ny REALTOR® will tell you: homeownership is an integral part—maybe the most important part —of the American Dream. Hence, any threat to homeownership—whether it be high interest rates or, as is the case today, a lack of inventory—is a threat to the American Dream.

In May 2018, Joel Singer, CEO of the California Association of Realtors (C.A.R.), and one of the sharper tools in the real estate shed, delivered a talk to C.A.R. directors titled “The American Dream (Up in Flames?): Why Homeownership Really Matters.” He offered up a plethora of studies and statistics that showed how individuals and families who own homes fare better in life than do those who do not own homes. Moreover, he shared survey results showing that 53 percent of those sampled thought that owning a home is a very important part of the American Dream; 18 percent thought it was the most important part.

I beg to differ. But, please, don’t get me wrong. My wife and I are residential REALTORS®. We have been in this marvelous business for more than forty years. The psychic and emotional rewards for helping people obtain a home are rich and appropriate. Moreover, it is certainly not my place to dismiss anyone’s dreams.

But “The American Dream” is a phrase with a history and a meaning that we do well to keep in mind. It is about much more than homeownership; indeed, homeownership may not even be a central part of that dream.

Historian James Truslow Adams coined the phrase “The American Dream” in his 1931 book, Epic of America.

He said, “The American Dream is that dream of a land in which life should be better and richer and fuller for everyone, with opportunity for each according to ability and achievement.” It was not, he wrote, “a dream of motor cars and high wages merely, but a dream of a social order in which each man and each woman shall be able to attain to the fullest stature of which they are innately capable, and be recognized by others for what they are, regardless of the fortuitous circumstances of birth or position.”

The essence of the American Dream was, and I think still is, the idea that America is a land where by effort one could better one’s condition and one’s children could live lives better than their parents. Moreover, the potential for doing so was not to be restrained by government or one’s class status. That is the dream that drew millions of people to our shores. It still does.

To put it in more modern, and certainly less emotional, terms, the American Dream is the possibility of social mobility. When we ask how the American Dream is faring, we are asking about social mobility. And the answer is, “It depends on whom you ask.” (Try googling social mobility in America.)

There are articles upon articles that will tell you it has become significantly less likely that a wageearner can move up the income ladder. A July 2016 Atlantic article cites a study that “measured a given worker’s chances of moving between deciles [groupings of 10 percent] during two periods, one from 1981 to 1996 and another from 1993 to 2008.

They found quite a disparity. ‘The probability of moving up from where you start has gone down’ [the author] said.” No one seems quite sure what caused this, but increasing inequality is often cited. “In the presence of increasing inequality,” [the authors] conclude, “falling mobility implies that as the rungs of the ladder have moved farther apart, moving between them has become more difficult.”

On the other hand, there are plenty of those who see the Dream as alive and well. Writing in National Review (May 2017), Scott Winship claims, “It seems likely that when all is said and done, 70 percent or more of today’s 30 year-olds are better off than their parents were at the same age.”

The state of the American Dream is important, and we do well to pay attention to it. But homeownership is nowhere near being its central component. For many, owning a home may be a consequence of having lived the Dream, but it certainly doesn’t define it. n

Bob Hunt, a former director of both the National Association of REALTORS® and the California Association of REALTORS® and the author of Real Estate the Ethical Way, passed away on March 23, 2019. Via email, he sent this column to Writer and Editor Sherri Butterfield on May 25, 2018, for possible publication in OC REALTOR®. It is being published posthumously in this Homeownership issue with the permission of his wife Nancy.

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COVER STORY

5 Needs to Know Things Every REALTOR

®

About Homeowners’ Associations

1.

The Davis-Stirling Act is quite detailed.

of detailed financial and operational information, including proforma operating budgets, financial statements, insurance policies and notices, reserve studies and reserve disclosures, and board of directors meeting agendas and minutes.

The law requires that HOAs maintain these records and make them accessible to the membership in a variety of ways.

California Civil Code Sections 4000–6150, which is also known as the Davis-Stirling Common Intertest Development Act, is the primary law governing homeowners’ associations (HOAs). It contains lengthy chapters about the requirements of the

By Scott Clements association and its membership, including CEO, RESERVE STUDIES INC. requirements that the HOA provide its Complete financials, especially the reserve membership with specific notices and disclosures, plus any rules, regulations, and enforcement policies in study, are important. place.

Buying a home in a HOA without complete financial The Act also requires the creation and maintenance information is like a box of chocolates—you never know

2.

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www.istockphoto.com/Svetikd

Your clients shouldn’t buy without knowing what they are getting into, or own without properly protecting what they have.

COVER STORY

what you’re going to get! (apologies to Mr. Forrest Gump).

Similar to purchasing a home without a qualified appraisal or complete market analysis, purchasing a home without a reserve study leaves a big “unknown” in the considerationof-information spectrum.

Does the HOA have sufficient reserves to meet its shortand long-term obligations? Are members at risk of special assessments? If so, how much might these assessments be? And when would these monies be due? Could there be multiple special assessments? These are important questions and, without detailed financial information—especially a reserve study—no one knows the answers.

request of an HOA, those fees must be disclosed, in writing, before the request is processed. The listing of financial information to be made available to membership and delivered annually is long and detailed (Section 5300). In addition, the Act requires the distribution of a reserve study summary, assessment and reserve funding disclosure summary, and the funding plan adopted by the board of directors for each fiscal year (Sections 5550–5570). This information is to be included in the annual financial reporting, provided at no charge to the membership.

3.

5.

Insurance is mandatory for HOAs, and members should have individual coverage.

The scope and terms of HOA insurance will vary from one development to another because each property is unique.

Ultimately, the HOA coverage will focus on the corporate (shared) exposures so there will naturally be some personal interests for which the individual homeowner remains responsible.

Homeowners should understand what is and isn’t provided under the HOA’s insurance and talk with their personal agent or broker about supplementing that coverage with an HOA-6 policy. Because community associations have unique insurance needs and requirements imposed by the Davis-Stirling Act, the association governing documents, and lending institutions, members or prospective purchasers should consider working with an agent or broker who specializes in HOA insurance to be sure they have the coverage they want and need.

4.

Most information—and all the important stuff— is free to members.

The Davis-Stirling Act defines what constitutes notice to membership (Sections 4040 et al.) and what delivery methods are permitted (i.e., first-class U.S. mail, facsimile, electronic, etc.). The Act even makes provision for delivering this information and notices to a secondary address, thereby making it possible for those with second homes or income properties to stay abreast of their interests. Sections 5200– 5260 detail the information available under “Association Records” as defined by the Act. There are thirteen of them!

The Act has requirements that owners of a separate interest provide information to prospective purchasers in their possession at no cost to the prospective purchaser (Section 4525). If there are fees associated with a records

Community associations are preferred places to call home.

According to a 2018 Zogby Analytics study for the Foundation for Community Association Research, 85 percent of residents rate their overall community association experience as positive (63 percent) or neutral (22 percent).

Ninety percent say their association’s rules protect and enhance property values (62 percent) or have a neutral effect (28 percent); only 4 percent say the rules harm property values. Eighty-four percent say members of their elected governing board “absolutely” or “for the most part” serve the best interest of their communities. And a full 73 percent say their community mangers provide value and support to residents. Statistically, properties within community associations retain their value, or increase in value, at a rate superior to similar properties not located within common interest developments. So, you can see why members are so happy!

To learn more about community association living, visit the Community Associations Institute Orange County Regional Chapter website at www.caioc.org/.

Scott Clements is chief executive officer of Reserve Studies Inc. He serves on the Education Committee for Community Associations Institute Orange County Regional Chapter. A popular author and speaker about common interest developments, Scott was recognized as 2010 Educator of the Year.

UPCOMING CLASS: WHAT EVERY REALTOR® NEEDS TO KNOW BEFORE SELLING IN AN HOA Selling property in a Homeowners’ Association? Learn from some of the most experienced experts in Common Interest Development Law, Finance, and Operations. Cost: FREE for Members; $25 for Nonmembers.

June 25 in Fountain Valley: 9:00 a.m. – 11:30 a.m. n September 10 in Laguna Hills: 9:00 a.m. – 11:30 a.m.

December 3 in Fountain Valley: 9:00 a.m. – 11:30 a.m.

www.ocar.org/hoa OC REALTOR®

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COVER STORY

Got

Spring Fever?

Home Maintenance May Be the Antidote

Spring is the ideal time to check, correct, clean, and replace for increased comfort and safety all year long.

By Michelle McCann COMMUNICATIONS SPECIALIST

S

To reduce allergy symptoms, replace the filter in your air conditioning and heating unit. Changing your air filter regularly will not only improve the air circulation in your home and lower your air conditioning bill but also reduce the sniffles and sneezes caused by pollen and dust mites. Spring is the perfect time to switch out filters for fresher air all year long.

harder and run longer to dry each load of clothing. Under these conditions, excess heat can ignite the clogged lint, resulting in a fire. According to statistics from the U.S. Fire Administration, 2,900 home dryer fires are reported each year and cause more than $35 million in property loss. Failure to clean dryer screens and vents regularly is the leading cause of dryer fires.

Adding dryer vent cleaning to your spring to-do list can save you money and help keep your home fire free.

2.

5.

3.

Clear any leaves and debris from your gutters and check to be certain that gutters are well supported and that water in them flows properly. During a heavy rain, water can collect in sagging gutters, substantially increasing their weight and causing them to come loose. Checking for loose gutters and correcting drainage problems will ensure that no water collects around your foundation and prevent damage to your home.

pring is in the air! The birds are chirping, and the flowers are blooming. What better way to treat a good case of spring fever than by starting your annual spring cleaning and home maintenance routine? To keep your home in good condition, add these five tasks to your to-do list.

1.

Replace Your Air Filter

Replace the Water Filter in Your Refrigerator

Your refrigerator is one of the more important appliances in your kitchen, but its maintenance can easily be overlooked.

Changing the water filter will ensure that your water and ice do not develop a disagreeable taste and that you are not drinking unwanted chemicals that have traveled through your water pipes and into your refrigerator. Also, a filter that is in good working order will prevent the buildup of deposits that can damage your refrigerator. So, add this easy task to your to-do list this season!

Test Smoke Alarms and Carbon Monoxide Detectors

Make sure that your smoke alarms and carbon monoxide detectors are in good working order. Test the batteries every season and replace them as needed. To prevent malfunction, vacuum the vents at least once a year. Keeping these devices in good working order could save your life.

4.

Clean Out Your Dryer Vent

Removing the lint from your dryer’s lint screen isn’t enough to keep your dryer clean, safe, and energy efficient. Over time, lint accumulates in your dryer vent, which can result in clogs and blockages. As lint builds up in the vent, your dryer must work

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Inspect Your Roof and Gutters

A quick spring inspection and cleanup of your roof and gutters now can prevent expensive repairs down the road. Periodically check your roof for missing or damaged shingles or tiles and for signs of rusting, cracking, or leaking, especially around the flashings. Fix small problems before they become big ones.

www.istockphoto.com/Deagreez

COVER STORY

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REALTY REALITY

In the late 1970s, Bob Hunt moved with his wife Nancy and their teenage sons from Redlands to San Clemente so that the family could live near the ocean, where they had regularly vacationed.

He is pictured here on the beach wearing one of his favorite Reyn Spooner shirts.

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REALTY REALITY

Bob Hunt: An Eloquent and Eminent Thought Leader

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and service to the REALTORS®, as well as real estate efore I ever met Bob, I felt as if I knew him, and that is because of the breadth, clarity, and practice. I remember when Bob told me the Marine greatness of his writings regarding real estate Corps taught him duty and honor. The Corps should be practice, ethics, and professionalism. proud of the man they helped Bob become.

After I met Bob and got to know him, I With respect to his writings, Bob’s brilliant mind came to understand that he was one of the clearly comprehended and embraced how real brightest luminaries of the organized real estate should be practiced, placing a client’s estate industry. I viewed him as standing interest first, and following the rules of ethics at the forefront of efforts to make the created by the Association of REALTORS®. industry both professional and ethical.

I believe that the trove of his writings is a Those efforts drew me to greatly admire legacy, and Bob’s reputation as a real estate Bob, and to seek his counsel from time leader will continue to grow. to time. Certainly, his solid judgment The real estate industry has lost an eloquent

By Wayne S. Bell commanded respect and admiration. and eminent thought leader. I have lost a CALIFORNIA REAL ESTATE In addition, I thought he was remarkable COMMISSIONER (RETIRED) distinguished, charming, and kind friend for his courtesy, decency, integrity, dignity, and advisor, and was honored that Bob wisdom, and extraordinary writing talents. would share his wisdom with me. I will always His biography stands out and illuminates the treasure my memories of the times that we spoke by diversity, uniqueness, great learning, and service in his phone and in person—as well as my correspondence background—Princeton, UCLA, the U.S. Marine Corps, with him. n

Bob Hunt: The Ethical Way

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been involved on all levels of the real estate industry. orn in New York in 1937, Bob Hunt grew up in In 1988, Bob became president of the South Orange Santa Barbara, where he met an eighteen-yearold Westmont College student named Nancy on County Association of REALTORS®, a predecessor the beach. They were married in 1958. organization of Orange County REALTORS®. He served By 1969, the Hunts were living in Redlands, where on various local and state committees, was named Nancy was teaching music in elementary school and REALTOR® of the Year in 1995, and was a director for Bob, who was a graduate of Princeton with a both the California Association of REALTORS® and master’s degree in philosophy from UCLA, the National Association of REALTORS®. was teaching both ethics and logic at the In addition, Bob Hunt regularly shared his University of Redlands. But in the late 1970s, considerable wisdom about real estate and Bob and Nancy decided they wanted to ethics in columns he wrote for various live in San Clemente, where they frequently print media and online outlets, including had vacationed with their teenage sons. the Orange County Register/South Coast As Bob explained in an interview that I News, Realty Times, and OC REALTOR ®. conducted with him six years ago, “There His columns, which were written in a were no philosophy positions available to

By Sherri Butterfield comfortable and conversational style, carried me in the immediate area, so we looked for WRITER AND EDITOR titles such as “Making Ethics Important,” other opportunities. With no capital and “Truth and Beauty in Real Estate,” and no discernible employable skills, becoming a real estate “Thank Them for Their Service” and covered topics agent was a natural.” Almost as an afterthought he ranging from bed bug disclosure to the importance of added, “It worked out.” customer service.

With encouragement from what Bob termed “some Bob and Nancy, who had been married sixty years good people,” he became more deeply involved in the when he passed away on March 23, 2019, were truly real estate industry. “I felt that REALTOR® Associations life partners. He dedicated his book Real Estate the were doing something positive,” he explained. “It Ethical Way (San Clemente: Bella Vista Publishing was refreshing to be involved with a picture of our Company, 2008) to Nancy, declaring her to be “Not only the best person, but the best REALTOR®.” And profession that was bigger than just the day-to-day slugging it out in the trenches.” he credited Nancy and their mutual Christianity with For more than forty years, both Bob and Nancy have having shaped his life. n

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Orange County REALTORS® is the largest Association in the state and the tenth largest in the nation. California does not have a housing affordability crisis; it has a supply crisis. Overall, the year 2019 will be a great one for selling real estate.

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peakers at the Orange County REALTORS® 2019 Annual Membership Meeting and Housing Forecast included 2019 OC REALTORS® President Matt Clements, 2019 OC REALTORS® Treasurer Lisa Schulz, 2019 California Association of REALTORS® President Jared Martin, 2019 National Association of REALTORS® President-Elect Vince Malta, and Beacon Economics Founding Partner Chris Thornberg.

Their remarks are summarized below.

Matt Clements

Orange County REALTORS® Update Last year, we presented the Orange County REALTORS® Leadership Legacy Award to 2015 Orange County REALTORS® President Rita Tayenaka for her work in founding the Orange County REALTORS® Leadership Academy.

This year, we are honoring another former President of our Association, Huntington Beach Councilwoman Barbara Delgleize. Barbara was instrumental in founding our member relief fund, OCAR Cares, during her presidency in 2005.

OC REALTORS® Treasurer’s Report The Association remains in a strong position. We are the largest Association in California and the tenth largest Association in the United States. Membership numbers matter because they result in more services and more classes for you. We currently have four and one-half months of reserves. We have contributed $253,000 to the REALTOR® Action Fund and $192,000 to OCAR Cares.

Jared Martin

C.A.R. Update Passed Legislation. The California Association of REALTORS® (C.A.R.) sponsored a package of “clean-up” legislation, which went into effect on January 1, 2019. As a result, Real Estate Law more accurately reflects actual practice, plain English has replaced industry jargon, the third agency form has been eliminated, and the rules governing the sharing of confidential information have been clarified.

Proposed Legislation. C.A.R. is sponsoring or co-sponsoring nearly a dozen bills during this legislative session. These bills include SB 50 (Wiener), which is designed to encourage housing development near jobs, transit, and services; AB 1074 (Diep), which authorizes bonds for the construction of Accessory Dwelling Units (AUDs); and SB 509 (Portantino), 32

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Photos by Marion Butterfield and Albert Ornelas for Orange County REALTORS®

Lisa Schulz

which authorizes the issuance of vanity license plates to increase awareness of the need for affordable housing and to raise funds to be used for this purpose.

Vince Malta

NAR Update Strategic Priorities. We believe that owning a home is part of the American Dream.

Our priorities for 2019 are to (1) advance member and consumer communications, (2) redouble our efforts in the areas of advocacy and regulation, (3) heighten NAR’s role as stewards of data, (4) and enhance the member experience.

“Tell Your Story.” I have a very strange hobby. I collect professional-game-used baseball bats. I have become an expert in baseball bat authentication. My partner and I are the only two

authenticators of baseball bats in the United States. Recently, a baseball bat sold for $1.3 million after it passed our test of authenticity.

Our theme for next year is “Tell Your Story.” As REALTORS®, we need to tell our story. We need to show our value proposition. We need to demonstrate what we do, why it is valuable, and why we are indispensable.

Chris Thornberg

Founding Partner, Beacon Economics The Economy. Will the real economy please stand up? After how good 2018 was, suddenly we are plagued by a plethora of negative headlines.

These headlines are examples of “miserabilism.” The press loves bad news. According to the Wall Street Journal, the next crash is always two years away. But it isn’t when; it’s why.

And I don’t see any why, any reason for a recession. Everything is on a steady, sustainable path.

The Indicators. Don’t let miserabilism warp your sense of reality. We’ve never had it so good in the United States, in California, or in Orange County. Unemployment in the United States is at 3.8 percent. Our quality of life is good. Our life expectancy is increasing. Our infant mortality rate is dropping. The total crime rate is down.

And 85 percent of Americans have smartphones!

The Prediction. You are going to have a great year selling what you sell, but stop saying “affordable.”

You do not have a housing affordability crisis. The problem is lack of supply.

California is clearly short between 2 million and 2.5 million housing units.

Build more housing, and housing will become more affordable.

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RISK MANAGEMENT

GOV HUTCHINSON PRESENTS

NEW LAWS

AFFECTING REALTORS® IN 2019

Among other things, these laws clarify the disclosure responsibilities of a dual agent and require additional sexual harassment prevention training.

By Tiffany Gardner Wood RISK MANAGER

In

February, Michele Harrington, chair of the Risk Management Committee, welcomed Gov Hutchinson, assistant general counsel for the California Association of REALTORS® (C.A.R.), to discuss “New Laws 2019” at the Orange County REALTORS® Laguna Hills office.

Introduction of Mr. Hutchinson was hardly needed, as demonstrated by the enthusiasm of the attendees in both Laguna Hills and Fountain Valley, where the presentation was shown via Live Stream.

Mr. Hutchinson explained some of the new laws affecting REALTORS®, including changes to the business of real estate, “clean-up” of the Real Estate Law, and the ownership of property rights.

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Real Estate Law “Clean-Up” Legislation. C.A.R.sponsored real estate law “clean-up” legislation, Assembly Bills 1289 and 2884, resulted in n reaffirmation of the independent contractor relationship choice between brokers and agents, n simplification of terms and definitions (for example, “Buyer’s Agent” is now used instead of “Selling Agent”), n permission to deliver the Transfer Disclosure Statement (TDS) electronically, and n clarification of the disclosure responsibilities of a dual agent.

Mr. Hutchinson explained that, in instances of dual agency, confidentiality to one party is more important than disclosure to both parties. The dual agent may not

RISK MANAGEMENT

Gov Hutchinson, assistant general counsel for the California Association of REALTORS®, is a master instructor for the Education Division of C.A.R. and speaks regularly to Associations and Boards of REALTORS® throughout California.

disclose confidential information— for example, facts that might impact price, such as financial position or motivations—to the other party, unless the agent receives express permission to do so.

Landlord/Tenant Law. Now, Assembly Bill 2219 requires a landlord to accept a rent check signed by a third party; however, no “right of tenancy” is created by acceptance of that check, and the landlord may condition its acceptance by requiring a signed acknowledgment to that effect.

General Real Estate Business Rules.

Mr. Hutchinson explained that Senate Bill 1343 requires additional sexual harassment prevention training for

Gov Hutchinson (on the left) is shown with Michele Harrington, chair of the Orange County REALTORS® Risk Management Committee, and Dave Stefanides, chief executive officer for Orange County REALTORS®.

an employer who has five or more employees, including temporary or seasonal employees. Two hours of sexual harassment prevention training are required for all supervisory employees, and at least one hour of sexual harassment training is required for all other employees. This training must be completed by January 1, 2020.

For more detailed information about these laws and others, members can log onto C.A.R.’s website and access the New Laws 2019 overview or contact the C.A.R. Legal Hotline with specific questions.

Gov Hutchinson manages C.A.R.’s Member Legal Services Program, including advising REALTORS® through the C.A.R. Legal Hotline concerning all aspects of real estate law. He has written for California Real Estate magazine, has co-authored C.A.R. continuing education courses, and is a master instructor for the Education Division of C.A.R. with certification from the California Bureau of Real Estate.

THANK YOU TO OUR SPONSOR

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THE ORANGE COUNTY HOUSING UPDATE

Surprise!

Interest Rates Are Down!

Lower rates and a larger inventory have made now the time to buy.

By Steven Thomas REPORTSONHOUSING.COM

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ave you looked at interest rates lately? They plunged like the first drop on Colossus at Six Flags Magic Mountain. Fasten your seatbelts, raise your hands high in the air, and enjoy the ride. Interest rates dropped substantially just in time for housing’s Spring and Summer Markets.

From sea to shining sea, almost every economist, including me, thought that interest rates would be much higher than they are today. I know of only one economist who got it right.

Predicting interest rates is a lot like weather forecasting. We know what the immediate future holds, but where will we be two weeks from now? A month from now?

Six months from now? A lot can happen in six months, as all of us have learned.

That brings us to current rates, which are right around 4 percent, their lowest levels since January 36

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2018. It is time for buyers who have been sitting on the fence to jump into the market and purchase. The gift of historically low interest rates is back!

No matter what your age, or what kind of music you like, you have listened to the lyrics of Kenny Rogers’s “The Gambler”: “You’ve got to know when to hold ’em.

Know when to fold ’em. Know when to walk away. And know when to run.” The song is about a young man who receives advice about gambling—and, some

would say, about living—from a veteran gambler he meets “on a train bound for nowhere.”

So many potential buyers are like that young man: they don’t know when they should walk away from the fence they are sitting on and cash in their chips. They are waiting to take the plunge into homeownership but are trying to “time the market.” Unfortunately, many of these buyers—and homeowners who are waiting to refinance—have already missed

Figure 1. Since November 2018, interest rates have dropped dramatically from 5 percent to 4 percent by the end of March, a drop that has reduced monthly payments substantially and increased purchasing power to levels not seen since more than a year ago, in January 2018.

THE ORANGE COUNTY HOUSING UPDATE

several opportunities to cash in on excellent interest rates.

Fortunately for them, rates are excellent once again!

Since November 2018, interest rates have dropped dramatically from 5 percent to 4 percent by the end of March, a substantial difference that helps on the homebuyer affordability front (see Figure 1). What happened?

The United States economy is showing signs of slowing, there has been an international economic slowdown, they can’t figure out Brexit, China has slowed, the price of oil has dropped substantially, there is no end in sight to the trade war, and there has been tremendous stock market volatility. That is enough to cause investors around the world to park their money in long-term U.S. government bonds. When that happens, interest rates fall.

And in mid-March, the Federal Reserve stated that it was through raising the short-term rate and would not increase rates at all in 2019. A few economists and market experts are even predicting a cut later this year.

As a result, interest rates have dropped to lows not seen in more than a year.

For buyers looking at a $500,000 mortgage, the drop has resulted in a savings of $297 per month compared with last November. That is an annual savings of $3,564, or $17,820 in five years. For a $750,000 mortgage, the savings is $445 per month, or $5,340 per year.

For a $1 million mortgage, it is

Figure 2. Today’s low interest rates have reduced housing costs. For buyers looking at a $500,000 mortgage, the interest rate drop has resulted in a savings of $297 per month compared with last November. That is an annual savings of $3,564, or $17,820 in five years.

a savings of $594 per month, or $7,128 per year (see Figure 2).

Buyers need to understand that right now is an excellent time to cash in on today’s low interest rates. Waiting for interest rates to drop further is a lot like gambling.

Reminiscing about the good ole days, when interest rates were in the mid-3 percent range, will not magically make it happen.

Could rates go down further?

Perhaps. Could they go up again?

Absolutely. The old saying “A bird in the hand is worth two in the bush” applies. It is better to cash in today than to risk losing out on this opportunity by hoping rates will fall further. There are plenty of stories about buyers who are still kicking themselves for waiting too long.

In taking a closer look at affordability, for buyers looking for a $3,000 mortgage payment, along with a 20 percent down payment, the decrease in interest rates has allowed them to afford

a much larger home. Back in November 2018, they were looking at a $698,750 home with a 5 percent mortgage.

That has improved dramatically.

With today’s 4 percent interest rate, that buyer can now look at purchasing a $785,000 home, and the mortgage payment will remain the same! That is an amazing increase of $86,250 in purchasing power!

News Flash: Rates are low!

Homes are available Affordability is up! Stop gambling and sitting on the fence. Dive into the market now. Don’t kick yourself down the road because you did not act. The combination of improved housing affordability and substantially more inventory than in the past several spring selling seasons should lead to an increase in home-buyer demand. Buyers, what are you waiting for? It’s time to get off the fence and cash in your chips!

Steven Thomas has a degree in quantitative economics and decision sciences from the University of California, San Diego, and more than twenty years of experience in real estate. His bimonthly Orange County Housing Report is available by subscription and provides housing market analysis that is easy to understand and useful in setting the expectations of both buyers and sellers.

His website is www.ReportsOnHousing.com.

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Photos: ©2016-2019, Naran Inc. All rights reserved.

GADGETRY

MicroBot Push 2nd Generation—A Wireless Robotic Button Pusher for Smart Home Automation The MicroBot Push is one among a set of advanced smart gadgets that connect your things to the Internet, thereby turning analog home devices into modern digital marvels.

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By Albert Ornelas DIGITAL MEDIA SPECIALIST

“Notice how many buttons surround you. You press them regularly: to turn something on or off.

We created MicroBot Push to connect these buttons and switches to the Internet, making dumb devices smart.”

— Terance Park, CEO and Founder of Naran Inc.

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uttons and switches are the simplest forms of user interfaces, and almost every product in the world has one.

Yet the inventors at Naran Inc. saw a new possibility in those old analog buttons. Terance Park, the founder and CEO of Naran Inc., and his team created the MicroBot Push 2nd Generation so that you can bring outdated buttons and switches into the modern age using your smartphone or tablet.

Once you have connected via the Smartphone Apple iOS or the Android app, you will be able to control your favorite electronic devices easily—with just the robotic push of a button.

Place MicroBot Push atop a light switch, coffee maker, air conditioner, digital door lock,

garage door, electric fan, or intercom, and turn it into a smart device using a smartphone or tablet via Bluetooth.

Park and Naran Inc.—which has offices both abroad in South Korea and Japan and here in the United States in Santa Barbara County, California—began their journey to make the MicroBot Push with a crowd-sourcing page in 2015.

Their goal was to create a robotic finger for your buttons. Park invited potential funders to “Notice how many buttons surround you. You press them regularly: to turn something on or off. We created MicroBot Push to connect these buttons and switches to the Internet, making dumb devices smart.”

The original MicroBot Push has

MicroBot Push uses Bluetooth to communicate with the downloadable app on your Apple iOS or Android smartphone or tablet, making it possible for you to control your favorite electronic devices from as far away as thirty to one hundred feet.

The MicroBot Push can be scheduled to push or pull at a specific time on a given date. You can use it to control light switches, coffee machines, garage doors, fans, intercoms, or air conditioners.

been updated with a 2nd Generation edition that is more capable than its predecessor. For example, the MicroBot Push 2nd Generation has gears that are stronger, quieter, and last longer. The internal structure of this device has been completely redesigned to maximize each useful feature, including touchscreen support and more stable Bluetooth wireless connectivity from as far away as thirty to one hundred feet. Updates make it possible for a third-party companion hub to hook up to the internet on devices such as Amazon Alexa or Google Home.

The MicroBot Push 2nd Generation robotic technology enables you to press virtually any type of button. The Microbot Push can be added to a home device using the adhesive foam tape that is included with every unit. And if you need to move the Microbot Push after you have installed it, this tape can be removed without damaging the surfaces of walls or appliances, making it possible to reattach the Microbot Push but to a different device.

Although the product looks simple, producing it was a challenge. Park says, “There is a lot going on in this simplelooking button pusher. It’s wireless and

battery-operated, contains mechanical gears and a very small motor inside, and communicates with a smartphone app. Orchestrating all these different components has been the most challenging.’’ He sums up the importance of his accomplishment in these words, “We value retrofitting existing appliances that you love and use every day.”

Currently, the connection via the smartphone and tablet app is only Bluetooth enabled. To connect to the Internet via WiFi, users will need to purchase the MicroBot Hub M (for about $80).

It connects the MicroBot Push to the Cloud, thus enabling remote control, monitoring, and integration with third-party devices and services such as If This Then That (IFTTT), Amazon Alexa, and Google Home. The goal of MicroBot Hub M is to deliver an unlimited and consistent smart home experience. Naran Inc. will begin shipping the MicroBot Hub M in June 2019.

The MicroBot Push 2nd Generation retails for $49.99 and is one member of a family of products from the MicroBots division. Two other products are the MicroBot Alert, which is the smallest and smartest consumer sensor that tracks and measures your environment, and the Smart Sensor for Smarter Living, a single-button remote that allows you to point and control both of these smart home devices. For more information about the Microbot family of products, visit microbot.is.

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MENTIONS

What a Wonderful Surprise!

Hi Sherri—Hope this email finds you well! I saw the great article that was published in OC REALTOR® magazine’s most recent issue about Moulton Niguel’s receiving the State’s highest environmental honor. What a wonderful surprise! And I love that they included a picture from the Water Forum you attended. Thank you to OC REALTOR® for sharing this news!

Is it possible to get a few copies of this issue? I’m happy to pick them up if needed. We’d love to show it to our Board of Directors.

Medha Patel Communications Coordinator Moulton Niguel Water District

Editor’s Note: Medha addressed her email to Orange County REALTORS® Writer and Editor Sherri Butterfield and is referring to an article about Moulton Niguel Water District that appeared in the March/April issue of OC REALTOR® on page 13, in the Names in the News column.

I Am Very Impressed!

Celeste—Thank you for your phone calls and email. I wanted to let you know that I cancelled my membership with MLS and also C.A.R. I had joined in order to sell a condo; and now that it has closed, I do not need these memberships.

I would like to comment on the remarkable resources that are offered for agents and brokers. I attended a couple of seminars just to get up to speed with documents and legalities. I was blown away by the speakers and the presentations. They offer so many diverse and valuable programs to assure the success of the membership.

If I weren’t so connected to commercial management—and also so old—I would be tempted to hop the fence and dabble in this segment of the industry!

I am very impressed!

Linda Webber Executive Vice President Essex Realty Management, Inc. Editor’s Note: Linda addressed her email to Orange County REALTORS® Store and Member Services Specialist Celeste Santia.

CALL FOR CONTENT TO BE INCLUDED ON THE MAGAZINE MENTIONS PAGE The Orange County REALTORS® and OC REALTOR® welcome emails and social media postings for possible publication on the Mentions page in this magazine. These written materials should be brief (about 150 words) and cover real estate–related topics. They might offer comments, make suggestions, ask questions, or contain tips or ideas based on personal experience and intended to help REALTORS® in some way.

Submitted emails and media postings must include the writer’s name and email address (for verification) though only the name will be published. They also should include any title or affiliation by which the writer wishes to be identified in a single line below his or her name.

All written material may be edited for content, length, or style and may appear either online or in print. Emails become the property of Orange County REALTORS®. Although some may be answered, none will be returned. Emails intended for publication should be sent either to Director of Communications Sabrina Blair at Sabrina@ocar.org or to Writer and Editor Sherri Butterfield at Sherri@ocar.org.

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AFFILIATES IN ACTION

Affiliates Assist at New REALTOR® Orientations in March Orange County REALTORS® thanks the Affiliates and others who assisted at the New REALTOR® Orientations on March 2 and March 13, and congratulates the new REALTOR® members who joined Orange County REALTORS® on these occasions.

March 2 w

Laguna Hills

Affiliates who helped Orange County REALTORS® welcome new REALTOR® members on March 2 in Laguna Hills were (from left to right) 2019 Affiliate South Chair Joe Pierce, Iron Key Escrow; Aaron Rosen, ARC 23 Insurance; Leigh Ann Rowe, Photography

by Leigh Ann Rowe; Nipper Larson, Elite Funding Group; and Peter “G” Giammarinaro, The Termite Guy.

March 13 w

Fountain Valley

Affiliates who helped Orange County REALTORS® welcome new REALTOR® members on March 13 in Fountain Valley were (from left to right) Mike Grambow, American Pacific Mortgage; Elric Navatel, Monaco Video Production; Valerie Acevez, Old Republic Home Protection; Jonathan Pettibone, Stewart Title; Affiliate North Co-Chair Kerri Finch, J&J Coastal Lending; Affiliate North Chair Corvi Urling, loanDepot; and Peter “G” Giammarinaro, The Termite Guy.

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