Sarasota Realtor Magazine - June 2012

JUNE 2012

The Official Monthly Publication of the Sarasota Association of Realtors速

Dream Rally

Realtors速 gather by the thousands in Washington, D.C. to protect the American Dream Page 6

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Contents

Sarasota Realtor® Magazine Volume 9, Issue 6 JUNE 2012

Sarasota Association of Realtors®, Inc. 3590 South Tuttle Avenue Sarasota, Florida 34239 Phone: 941/923-2315 FAX: 941/923-0191 www.sarasotarealtors.com www.facebook.com/SarasotaRealtors

6

Rally for Rights

Realtors® from across the United States, many from right here in

Sarasota, gathered in Washington. D.C. for a Rally

for Homeownership on May 17th.

10 Top RPAC Contributors

Governmental Affairs Director Marc Mansfield salutes SAR’s top contributors to the Realtor® Political Action Committee fund, a very important source of support for Realtor® rights.

12 Distressed Property Impacts

Sarasota County Property Appraiser Bill Furst explains

how short sales and foreclosures can impact local

property appraisals.

15 Sales Hit New High

Volume 9 • Issue 6 •JUNE 2012

The April 2012 sales in the Sarasota market hit a brand new seven-year high, and the inventory dropped to a new decade low - signs of a recovery.

18 Accounting Crisis

In every issue 12- Property Appraiser 15- Sales and Listing Statistics 18- Commercial Investment Division Visit SAR on Facebook at www.facebook.com/SarasotaRealtors See a few of the photos this month on Page 24!

29- Global Business Council

Treasurer Peter Crowley RE/MAX Alliance Group Immediate Past President Michael Bruno Michael Saunders & Company Chief Executive Officer Kathy Roberts Mission Statement The mission of the Sarasota Association of ® Realtors is to advance members’ professionalism through delivery of education and resources while upholding the Realtors® Code of Ethics.

We are committed to be the leading advocate of real estate in the communities we serve by protecting private property rights and expanding relationships with individuals and organizations both locally and worldwide.

Sarasota Realtor® is published monthly by the Sarasota Association of Realtors® Inc.

Editorial Staff Director of Communications Ray Porter

Director of Information Technology Jesse Sunday Director of Professional Development Catherine McCaskill Governmental Affairs Director Marc Mansfield

Subscriptions: The annual dues of every member of the Sarasota Association of Realtors®, Inc., includes a one-year subscription to Sarasota Realtor ® magazine.

A yearly subscription for Sarasota Realtor ® magazine is available to non-members for $25, plus Florida sales tax.

Editorial ideas and manuscripts are welcome. Byline articles and columns express the opinions of the writers and do not necessarily reflect the policies or sentiments of the Sarasota Association of Realtors®, Inc. All submitted copy is subject to editing.

2012 Copyright© by the Sarasota Association of Realtors®, Inc. All rights reserved. Reproduction in whole or in part without written permission is prohibited.

30- Membership

JUNE 2012

Secretary Stafford Starcher RE/MAX Alliance Group

Sarasota Realtor® Advertising: For information on advertising rates and deadlines, contact Ray Porter at 941/328-1168 or ray@sarasotarealtors.com.

32- Calendar of Events/Education 4

President-Elect Roger Piro Town & Country Realty

Production Coastal Printing, Inc.

10- Governmental Affairs

24- On the SAR Scene

President Laura Benson Michael Saunders & Company

Director of Membership and Administrative Services Dan Andrews

CID President Brad Lindberg explains a proposed change in the way commercial transactions are handled that could have very adverse consequences in the coming months.

20- Education Programs

2012 SAR Officers

Sarasota Realtor® Magazine

www.sarasotarealtors.com

SAR slates quarterly meeting The Sarasota Association of Realtors® will hold the Quarterly Membership Meeting on Friday, June 15th at Dutch Heritage Restaurant, 3713 Bahia Vista Road. Lunch and Networking is at 11:30 a.m., with the Call to Order at noon. Register at www.sarasotarealtors.com. The cost is $13.50 per person.

Speaker for the event will be Margaret “Margy” Grant, Florida Realtors® Vice President of Law and Policy/General Counsel. As chief legal counsel, Margy oversees the law and policy department which provides forms, a library and legal hotline to more than 110,000 members.

The four $2,000 SAR Scholarship winners have also been invited to attend, along with their families. This year’s winners are: Public - Samantha Byrne, Venice High School (attending University of Tampa); Jack Jeskey, Venice High School (attending University of Central Florida); SAR-Related - Vincent Tan, Pine View School (attending Florida State University); and Gerard MacKinnon, Cardinal Mooney High (attending the University of Florida).

Four SAR Realtor® Emeritus honorees will also be recognized for 40 years in the profession: Ronnie Caron, Michael Nink, Audrey Marten and Richard Lewis.

KNOW YOUR OPTIONS Short Sales Foreclosures Bankruptcy

District 13 Conference set June 22 Join hundreds of Realtors® from all over the Suncoast area for the Florida Realtors® District 13 Conference & Trade Show on June 22nd at the Charlotte Harbor Event and Conference Center. This dynamic event will include more than 16 breakout sessions, a large real estate tradeshow, technology demos, a keynote speaker, and lunch, all for the amazingly low price of $20.12! To register, visit www.sarasotarealtors.com and look under Hot Topics!

Kathleen Strobel named SAR Affiliate of Month for June Kathleen Strobel of M & I Bank in Lakewood Ranch has been named SAR Affiliate of the Month for June 2012.

Kathleen, a member of the Global Business Council, specializes in financing for Canadians, condominiums, primary and vacation/ second homes. She is also a Lifetime Director for the Home Builders Association of Manatee-Sarasota, and a three time winner of the Circle of Excellence from the Sarasota Mortgage Professionals.

Kathleen can be reached at 941-757-4501, or by email at kathleen-strobel@micorp. com or visit www.mibank. com. www.sarasotarealtors.com

Call 941-366-1300 For A

FREE CONSULTATION Jefferson F. Riddell, Esq. (Board Certified Real Estate Attorney) Cynthia A. Riddell, Esq.

Riddell Law Group R L G

3400 S. Tamiami Trail, Sarasota, Florida www.rlglawfirm.com Kathleen Strobel Sarasota Realtor® Magazine

The hiring of a lawyer is an important decision that should not be based solely upon advertisements.

Before you decide, ask us to send you free, written information about our qualifications and experience.

JUNE 2012

5

Cover Story 6

Rally Time!

Local Realtors® join homeownership rally in D.C.

R

Realtors® from Sarasota, Bradenton and Venice, from across Florida and coast to coast in the United States – estimated at 13,800 strong – gathered at the Washington Monument in the nation’s capital on May 17th to highlight the importance of housing and homeownership to the nation’s economic recovery.

The “Rally to Protect the American Dream” took place during the National Association of Realtors® (NAR) Midyear Legislative Meetings and Trade Expo. Throughout the week, Realtors® from Florida and other states met with legislators, public policymakers and industry leaders to address concerns and issues that affect homeowners, aspiring homeowners and real estate investors everywhere.

“NAR meetings in Washington D.C. are always exciting,” said SAR President Laura Benson, an agent with Michael Saunders & Company. “There is no denying that the impact of a few thousand Realtors® working through issues and meeting with Congressional representatives is huge!”

Benson continued, “This year’s Rally to Protect the American Dream at the Washington Monument was particularly poignant. Realtors® from around the country gathered to make it very clear that we will be the group our policy makers answer to if homeownership should become out of reach for any more American’s. I’ve always said that there is no one who is more vested with a home seller or buyer - or a business person starting or growing their business, than a Realtor®. This past week we stepped up, and stood up, for all Americans reaching for their dream!”

“Florida’s housing market is improving, but we still have a long way to go,” said 2012 Florida Realtors® President Summer Greene, regional manager of Better Homes and Gardens Real Estate Florida 1st in Fort Lauderdale. “We must keep our members of Congress laser-focused on housing initiatives to ensure we do not lose traction in the housing market.

This is not the time to show complacency, but show courage in areas of mortgage liquidity, availability of flood insurance and tax relief.”

In the current economic and political climate, Realtors® are working to ensure that people who want to own a home or invest in real estate and can responsibly afford to do so, will continue to have the opportunity to do that. Toward that end, Realtors® are advocating better access to affordable financing,

JUNE 2012

reform of the secondary mortgage market, improved liquidity in residential and commercial lending, and preservation of the tax benefits associated with homeownership.

“Realtors® know that homeownership is an investment in our collective futures, and we’re here to protect the American Dream of homeownership,” said 2012 NAR President Moe Veissi, broker-owner of Veissi & Associates Inc. in Miami.

“Homeownership and investment in real estate impact families, communities, small businesses and the nation’s economy in a very meaningful way.

Today, we’re proud to be showing the country that homeownership matters.”

Sen. Johnny Isakson (R-Ga.) and Rep. Steny Hoyer (D-Md.) addressed the crowd of Realtors® at the event.

“I commend the National Association of Realtors® for keeping the issue of homeownership at the forefront when we talk about our economic recovery,” said Rep. Hoyer. “Stabilizing the housing market remains a central issue for Democrats, who understand we will not have robust economic growth without a vibrant housing market, and that access to homeownership remains a critical component of the American Dream.”

Sen. Isakson said, “Homeownership always has been, and remains to this day, a part of the American dream. It is the biggest and most important investment that the average American family makes, and that’s why we should remain focused on the value of the housing market and the important role it plays in our country. It is my hope that this rally encourages Congress and the president to move forward with policies that are supportive of housing, which is vital to job creation and the recovery of our economy.”

Many Realtors® are asking the questions - why did we have this rally? Are there specific bills or legislation we are trying to pass or defeat? What is the urgency?

Congress addresses a myriad of real estate issues every year. What makes this year unique is that for the first time ever the American dream, as we know it, is under attack. It is time to remind Congress that owning a home is an indispensable thread of the

Sarasota Realtor® Magazine

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Continued on P. 8, See RALLY

www.sarasotarealtors.com

CG rep

SARa

HORTON HOT DEALS 5 CO-OP! %

ADDISON MANOR - RUSKIN Homesite 3701 Homesite 5103

Gardenia B - 4 bed, 2.5 bath, 2 car Aster B - 3 bed, 2 bath, 2 car

PANTHER TRACE - RIVERVIEW

2199 sq. ft.

1965 sq. ft.+ +

$175,990 $159,990++ ++

COVERED BRIDGE - ELLENTON Homesite 75

Hibiscus B - 4 bed, 2.5 bath, 2 car

2498 sq. ft.

Marigold D - 3 bed, 2 bath, 2 car

1749 sq. ft.

Laurel B - 3 bed, 2 bath, 2 car Juniper B - 4 bed, 2 bath, 2 car

$189,990

+

$151,990

1808 sq. ft.

1899 sq. ft.+ +

++

SOLD $168,990++

Santa Barbara - 2 bed, 2 bath, 1 car Santa Barbara - 2 bed, 2 bath, 1 car Santa Cruz - 3 bed, 2.5 bath, 2 car Catalina - 3 bed, 2.5 bath, 2 car Santa Cruz - 3 bed, 2.5 bath, 2 car

1200 sq. ft.+ 1200 sq. ft.+ 1635 sq. ft.+ 1481 sq. ft.+ 1635 sq. ft.+

SOLD $142,890++ SOLD SOLD $168,490++

LITTLE RIDGE - NEW PORT RICHEY Homesite 82

Santa Barbara - 2 bed, 2 bath, 1 car

1200 sq. ft.+

$89,990++

1965 sq. ft.+

SOLD

1808 sq. ft.+

$255,990++

MIRA LAGO - RUSKIN Homesite 580

Aster B - 3 bed, 2 bath, 2 car

OAK VISTAS - SARASOTA Homesite 5

Laurel D - 3 bed, 2 bath, 2 car

OLD TAMPA ESTATES - PARRISH Homesite 3

Sandpiper B - 3 bed, 2 bath, 3 car

2019 sq. ft.+

$205,490++

2752 sq. ft.+

$215,990++

2498 sq. ft.+

$211,990++

RYE WILDERNESS ESTATES - BRADENTON Homesite 6202 Langford D - 4 bed, 2.5 bath, 3 car

KINGLET RIDGE AT FISHHAWK RANCH - LITHIA Homesite 151 Homesite 161 Homesite 163 Homesite 362 Homesite 363

Juniper E - 4 bed, 2 bath, 2 car

RIVERPLACE - RIVERVIEW

++

GREENS AT HIDDEN CREEK - WESLEY CHAPEL Homesite 7 Homesite 11

Homesite 2122

Homesite 0603 Hibiscus B - 4 bed, 2.5 bath, 2 car +

CROSS CREEK AT SUMMERTREE - NEW PORT RICHEY Homesite 44

*

2520 sq. ft.+

$300,990++

SCHOONER COVE - SOUTH TAMPA Unit 299

Catalina - 3 bed, 2.5 bath, 2 car

1481 sq. ft.+

SOLD

SEVEN OAKS - WESLEY CHAPEL Homesite 2767 Bridgeview C - 4 bed, 3 bath, 3 car Homesite 3467 Gardenia C - 4 bed, 2.5 bath, 2 car

2150 sq. ft.+ 2199 sq. ft.+

$253,990++ SOLD

SUGAR MILL LAKES - PALMETTO Homesite 40

Bridgeview B - 4 bed, 3 bath, 3 car

Homesite 98

Hibiscus D - 4 bed, 2.5 bath, 2 car

2150 sq. ft.+

$185,990++

TERRA BELLA - LAND O’ LAKES 2498 sq. ft.+

SOLD

VILLAGES OF AVALON - SPRING HILL Homesite 323 Homesite 1824

Gardenia B - 4 bed, 2.5 bath, 3 car Wisteria A - 4 bed, 2 bath, 2 car

2199 sq. ft.+ 2701 sq. ft.+

$174,140++ $195,555++

WHISPERING OAKS - BRANDON Homesite 46

Sorrento - 3 bed, 2.5 bath, 1 car

1516 sq. ft.+

SOLD

WHISPERING WOODS - PLANT CITY Homesite 63 Homesite 112

Wisteria B - 4 bed, 2 bath, 2 car Juniper E - 4 bed, 2 bath, 2 car

2701 sq. ft.+ 2752 sq. ft.+

$225,391++ $212,445++

HortonReadyNow.com • 866.475.3347

Voted America’s #1 Homebuilder for 9 Years in a Row!** Awarded Builder Magazine’s 2010 “Builder of the Year”** D.R. Horton Tampa/Sarasota CGC1513647 *5% co-op earned and paid at closing and valid only on inventory homes listed on this ad that are sold by 4/1/12 and closed by 9/30/12. **As reported by Builder Magazine. +Square footage dimensions are approximate. Please contact a sales representative for details. ©2011 DR Horton, Inc. All rights reserved. ++Home and community information, including pricing, included features, terms, availability and amenities are subject to change and prior sale at any time without notice or obligation.

SARad4.3.indd 1

4/3/2012 12:00:48 PM

RALLY

From Page 6 American fabric. Realtors® need to protect home ownership in America for today and tomorrow.

This is an election year, giving Realtors® an excellent opportunity to present our critical issues to Congress before voters head to the polls in November. This rally serves to remind Congress, as they address the issues listed below, that Realtors® are demanding action.

As Realtors® we have an obligation to protect, not only the millions of current home owners, but the future generations of Americans who want to own a home or other real property.

We held this rally to tell Congress, first do no harm to real estate. A full and lasting economic recovery will only occur with a vibrant real estate sector leading the way. We rallied to tell Congress that Realtors® are not sitting on the sidelines waiting for action.

Here is a list of the critical issues Congress is currently facing as it relates to your business: TAXATION An exploding federal debt has forced tax reform into the limelight. In December 2010, a deficit reduction commission offered a variety of models for both simplifying the tax code and increasing the amount of revenue it generates. The combination of the deficit, the need to increase the US credit limit (aka the debt ceiling) and the fragile economy have lined up to force a major political debate about the relative mix of spending and revenue.

As a result, a variety of tax laws, including those affected by commercial and residential real estate, could be reviewed with a focus on raising revenue.

• Mortgage Interest Deduction: NAR opposes any changes that would limit or undermine current law. In 2011, NAR secured 183 bi-partisan co-sponsors for HR 25 which “expresses the sense of the Congress that the current Federal income tax deduction for interest paid on debt secured by a first or second home should not be further restricted.”

8

JUNE 2012

• Capital Gains - Exclusion on Sale of Residence: NAR opposes any changes that would reduce or limit the capital gains exemption ($250,000/$500,000) on the sale of a home.

• Property Tax Deduction: NAR opposes any changes that would reduce or eliminate current laws.

REAL ESTATE FINANCE Coupled with a lack of available and affordable mortgage financing, delinquencies are surging and foreclosure rates continue to rise.

Federal policymakers are weighing a number of proposals aimed at creating healthier housing and mortgage markets.

• Government Sponsored Enterprises: NAR is recommending that Fannie Mae and Freddie Mac be converted into government-chartered, nonshareholder owned authorities that are subject to tighter regulations on product, revenue generation and usage, and retained portfolio practices in a way that ensures they accomplish their mission and protect the taxpayer.

• Credit Policies: NAR believes the credit and lending communities and federal regulators should reassess the entire credit structure and look for ways to increase the availability of credit to qualified borrowers who are good credit risks. Specifically, NAR supports S. 170, “The Helping Responsible Homeowners Act,” the Administration’s proposal to significantly reduce monthly mortgage payments by streamlining the refinancing process (HARP 2), and Sarasota Realtor® Magazine

expansion of FHA’s 203(k) program.

• Short Sales: NAR continues to push the lending industry to expedite short sales and is working with Congress to get legislation passed to make the short sales process more efficient.

PROPERTY INSURANCE For the past several years, Congress has been approving short-term extensions of the National Flood Insurance Program’s (NFIP) authority to issue flood insurance policies while they continue to debate long-term fiscal reforms to the program. The most recent extension was on Dec. 17, 2011, when Congress extended it through May 31, 2012. NAR urged Congress to use the additional time to complete work on a 5-year NFIP re-authorization bill to provide certainty and avoid further disruption to real estate markets.

APPRAISAL ISSUES Over the last 18-36 months, a host of rules, regulations, and laws have been announced to further protect appraiser independence. NAR strongly supports the independence of appraisers and the appraisal process.

Additionally, NAR opposes the use of indemnification clauses by Appraisal Management Companies (AMCs) which places pressure on the appraiser, compromises their independence, and has a negative effect on the quality of appraisal reports. NAR will also pursue legislative and regulatory efforts to require AMCs to retain competent and qualified appraisers. www.sarasotarealtors.com

Realtors速 from across the United States, including many from Sarasota, gathered in Washington, D.C. on May 17th for the big Rally for Homeownership. The event attracted more than 13,000 participants, and served as a vital message to legislators to keep focused on the issues that impact, and potentially threaten, homeownership in our nation.

Below, can you spot any of your fellow SAR members in the photo? Check out the Rally FanCam at www.realtor.org !

www.sarasotarealtors.com

Sarasota Realtor速 Magazine

JUNE 2012

9

Governmental Affairs 10

SAR Salutes $99 RPAC Investors for 2012

S

SAR asks members to voluntarily support RPAC by investing $99 or more each year to help support RPAC activities on local, state and national levels.

SAR members shown below invested $99 for 2012. Major Investors are noted by an * next to their names shown in red and will be featured in another article later this year.

On behalf of the SAR Board of Directors, and the RPAC Committee we salute our $99 Club Investors! For more information on how you can become an RPAC $99 Club Investor please contact Marc Mansfield at marc@sarasotarealtors.com Acheson, Murray J Adair, Elaine Adair, Robin G Albert, Scott W Aldrich, L. Chip Allard PA, BibiAnn Allen, Sania Almengual, Anthony W Amador, Margaret F Anderson, Robert T Appel, George K Arreola, Judy Arthur, Sam E Babiarz, Michael A Babiarz, Vicki N Bain, Brian Roland Barbosa, Paulo R Baseman, Barbara S Beacham, Deborah M Beck PA, Maria T * Benson, Laura A Berger, Judie Bergstrom, Joan M Biter, Tina Boakes PL, Anita Boltax, Joan D Bosela, Hajasoa Bosshardt, Carol Bridges, Michael J Brink, Mark D Brinkman, Deke

JUNE 2012

Brittain, Bill Brooks, Christina * Bruno PA, Michael W Brunson, Laura Bryant, Teresa L Buchanan, Linda Budnik, Carol P Cacchiotti PA, Saint Carroll, William Carson, S Dudley Casella, Robert M Cashi, Paula J Cashi-Haught, Lora L Cassidy, Jennifer M Cavanaugh, Richard A Cerreta, Craig Charity, Gabriele Charlesworth, Amanda Le Charron, Pamela J Chicoine, Adam R Chiodi, Sharon E Clamage, Georgina Clapp, David P Clemmer, Holly Cochrane, Michael Coletti, Lorraine Olsso Collier, Janis L Collins, Anthony Lee Conklin, Mary F Conklin, Thomas W Conrad, Jennifer Corbino, Michael Crabtree, Michelle Cristello, Gail T

Crowley, Peter M Cunningham, Sharon Currey, Tamara Currey, Todd A Dabringhaus, Daniel E D’Agostino, Margaret Dahm, Dennis Davenport, Michael W Davila, Rocio Day, Philip Roy De Manio PA, Betsy Dean, Paige E Debicka, Dorota I DeCastro, Julia DeLieto Jr PA, Leon R Derr, Terri DeWitt, Ronnie K Dickinson, Joan A Donald, Penny Lynn Doyle, Faye Drake, Amy Bressler Dutoit, Steven L Eash, Joey A Ellery, Marla Carol Ellis, Whitney Elmore, Donna Emery, Linda Emrick, Johanna S Ennis, Jerome B Esposito, Valerie Kay Esses, Ellen Laura Evans, Penny Arena Falkenthal, Judy Ferraro, Thomas M

Sarasota RealtorÂŽ Magazine

Fippinger, Tracy Fischer, Diana T Flanders, Jennifer P Flannagan, Mark Flynn, William Robert Foster, Cindy J Fraser, David S Fulwider, Laura Chasey * Furst, William Furst, Darla A Fust, Stacey Maloney Gagg, Michael Gahry, Barbara E Gardner, Audria Liliana Garrabrant, Susan Gaudiano, John Gaukhman, Yuliya Geller PA, William A Gesell-Hirschman, Jamey Geweye, Charles E Goldstein, Susan Gonzalez, Bernardo Javi Good, Tom Govic, Ann Marie Grabo, Alfred Grana, Jayci B Grande, Jason P Grant PA, Duneska Grant, Karen Gratton, Priscilla Green, Judy A Groom II, David C Cont. on P. 14, See RPAC www.sarasotarealtors.com

NESTING

Tuesday-Saturday 10:30AM- 5:30PM Monday by Appointment 1540 Main Street Sarasota, FL 34236 941.366.0941 BlackBirdHomeGallery.com

Property Appraiser

Qualifying Sales and Transfers: Foreclosures and Short Sales There’s no doubt that foreclosures and short sales are having a significant impact on the current real estate market. These typically less-than-market transactions exert downward pressure on “retail” prices, especially for residential property. In the marketplace this distortion affects buying and selling decisions daily.

Foreclosures, short sales: How are values impacted?

By Bill Furst, GRI, CRS, CRB

Many property owners trying to sell, as well as recent buyers, come to our Sarasota County offices trying to understand why the market values we arrive at once a year on Property Appraiser January 1 areThere’s not reflective of the on-the-ground theyhaving are a no doubt thatactual foreclosures and shortreality sales are significant impact on the current real estate market. These typically experiencing.

T

less-than-market transactions exert downward pressure on “retail” prices, especially for residential property. the marketplace this The reasons for those perceived discrepancies can beInfound in the Florida distortion affects buying and selling decisions daily.

Statutes and Administrative Rules that govern what property appraisers can property ownerstransfers trying tofor sell, as well as recent buyers, and can’t do Many in qualifying property consideration in determining come to our offices trying to understand why the market values we values for the taxatroll. arrive once a year on January 1 are not reflective of the actual on-the-ground reality they are experiencing.

The Department Revenue a specific list of codescan that usedintothe The of reasons for provides those perceived discrepancies beare found categorize Florida these transfers ownership of real Rules property. property Statutes of and Administrative that Each govern what property appraiser must reviewcan all and property transfers and qualify or disqualify appraisers can’t do in qualifying property transfersthem for consideration in determining valuesqualifying for the taxsales roll.is critically based on the merits of each transfer. Properly important in The preparing a fair, equitable andprovides accuratea tax roll. list of codes that Department of Revenue specific are used to categorize these transfers of ownership of real property. property by appraiser must review all transfers and Short salesEach are reviewed property appraisers on property their individual merits qualify or disqualify them based on the merits of each transfer. before making a qualification decision. Though short sales involve duress, Properly is critically in preparing a fair, other factors such asqualifying a lender’ssales desire to get theimportant best market price, appearing equitable and accurate tax roll. in the Multiple Listing Service and being advertised to the open market may Short are reviewed property appraisers on their individual be considered by asales property appraiserbyprior to qualifying or disqualifying a merits before making a qualification decision. Though short sales short sale transfer. involve duress, other factors such as a lender’s desire to get the best market price, appearing in the Multiple Listing Service and being Because foreclosures dothe notopen involve an arm’s-length transaction, advertised to market may be considered by a the property appraiser priorwill to not qualifying disqualifying short salesales. transfer.

Department of Revenue accept or such transfers asaqualified Deeds in lieu of foreclosure do not meet theinvolve requirements for an arm’s-length Because also foreclosures do not an arm’s-length transaction, the Department of Revenue will not accept such transfers as transaction. qualified sales. Deeds in lieu of foreclosure also do not meet the requirements for an arm’s-length transaction.

At sometime after a foreclosure, the lender will offer the property for sale.

At some time(REO) aftersales a foreclosure, the lender willcarefully offer thebyproperty These real estate owned must be analyzed very the for sale.

These real estate owned (REO) sales must be analyzed property appraiser proving an arm’s length transaction, including determining very carefully by the property appraiser proving an arm’s length if the property was listed in the Multiple Listing Service at a list price in line transaction, including determining if the property was listed in the with local marketing times and conditions. appraiser also Multiple Listing Service at a list The priceproperty in line with local must marketing take the physical condition of theThe property intoappraiser consideration making times and conditions. property must when also take the a qualification determination physical conditionforofREO the transfers. property into consideration when making a qualification determination for REO transfers.

As you can see, manycan factors comefactors into play when a property appraiser makes As you see, many come into play when a property appraiserthe makes decisionsoraffecting the qualification or decisions affecting qualification disqualification of transfers. disqualification of transfers. ourhave office reviews Periodically, our office reviews sales ofPeriodically, properties that sold twice,sales with of properties that have sold twice, with the first sale being a shortthe first sale being a short-sale or a sale out of foreclosure and the second sale sale or a sale out of foreclosure and the second sale being an arm’sbeing an arm’s-length transaction.

Currently, the median between length transaction.

Currently, the median timetime between such such first first and second sales is approximately 7 months and the median change in and second sales is approximately 7 months and the median change For more price is an increase of about 44%.

In some instances, where the property in in price is an increase of about 44%. In some instances, whereisthe information, property is inwill poor condition, will as needed poor condition, buyers invest funds asbuyers needed to invest returnfunds the property to to a contact the return the to a outlay saleableappears condition. general, this outlay saleable condition.

In property general, this to beIneasily covered by the Property appears to be easily covered by the price increase of 44%.

Appraiser’sprice increase of 44%.

If you want more information or have questions about this vital office at part of information the preparation of the annual tax rollthis andvital howpart it relates If you want more or have questions about of theto 941.861.8200. market value please give us a call or come in. preparation of the annual tax roll and how it relates to market value please 12

give us a call or come in.

JUNE 2012

Sarasota Realtor® Magazine

Florida Statutes and Rules Pertaining to Qualified Sales.

193.011(1): Factors to consider in deriving just valuation. (1) The present cash value of the property, which is the amount a willing purchaser would pay a willing seller, exclusive of reasonable fees and costs of purchase, in cash or the immediate equivalent thereof in a transaction at arms length.

195.096(2)(c): Review of assessment rolls. When the Department of Revenue reviews a county’s assessment roll it is required to rely on statistical data for which there are adequate arms-length transactions or “market sales”.

195.0995(1): Use of sales transaction data; qualification, review. For each sales transaction disqualified by a property appraiser, the property appraiser shall document the reason for the disqualification of the sale.

Florida Administrative Rule 12D-8.011(m)(3): This rule lists many criteria that may result in a disqualified transfer, including deeds to or from banks, loans, or mortgage companies or deeds executed

by Clerks of the Court or trustees in bankruptcy.

NEED A SPEAKER FOR YOUR MEETING? BILL FURST WILL MEET WITH YOUR GROUP AND ANSWER YOUR QUESTIONS. Call our office at 941.861.8200 or email us at PA@SC-PA.com to set an appointment.

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RPAC

From Page 10 Grossman, Deborah J Gruber PA, Tonna M Guentner, Bryan L Guilfoyle, Dayna K Hackett, Barbara J Hagan, Pamela J Hart, Kathleen R Hayden, Marni K Hayes, Stephen A Hayes, Teresa Lee Healey, Terri Hebda, Bernice Heers, Ryan Heidersberger, Virginia Hembree, Joe R Hendrix, Jacquelyn Hering PA, Debbie Hering, Daniel J Heritage, Ellen R Hernandez, Maria C Hill, Suzanne H Hirschman, James E Hogan, Chip Holbrook, Rita M Hollingsworth, Ryan E Holmes, Pamela Anne Horn, Maureen Horne, Jennifer A Hudson LLC, Greg Huff, Janet D Hurst, Diana R Ingorvaia, Angelo Jiganti PA, Ann F Johns, Jill P Johns, Larry R Johnson, Aida I Johnson, Nora Johnston, Karen Lynn Jones, Robin Judge, Deborah Jurnack PA, Irene Kayajian, Gail A Kellogg, Jami Noe Kennelly, Brian J Kerzner, Judi Kiesewetter, Ken Kijner PA, Daniel Kim, Jaclyn Jung King, John R Klanot, Michael Kolozs, Karen Sue Konstantinou, Tak Kotaska LLC, Dennis G Kovacs, Laszlo Z Koy, Lynne B Kozak, Ingrid D Krumm, Stephanie L Kvasny, Vladimira Lamb, Tara 14

JUNE 2012

Lange, Alba I Lange, Janette Tatum LaRosa, Millicent J Lasky, Harold Lattuga, Deborah Z Leicht, Sara Lekic, Slavisa C Levin, Sue A LeVine, Pamela A Lewis, Richard A Liberman, Marlene Lichterman, Brian Light, Donald Frank Liljeberg, Stacy S Lindberg, Bradford W Ling, Jeffry D Long, Kyle Francis Lonsdale, Kristy K Lupia, Timothy M Lupson, Jayne S Lyke Brown PA, Connie G Lynn, Charlotte Lystad, Henry C Mahoney, Mary Mann, S Victoria Manning, Marlene Helen Mapp, Timothy March, Carl R Marlar, Martha W Marra, Massimiliano Marten, Audrey L Maslen, Sandra T Masopust, Rudolf Mast, Tammy R Matteoli PA, Susan R McClain, Tana M McElyea, Candice McKay, Kelly McLaughlin, Dick McLaughlin, Marcia L McLeroy Jr, Dan H McNally, Shirley A Meacock, Helen L Mei, Barbara A Meister, James W Meskil, Brian Messeroux, Jean Oscar Monroe, Bradford P Moore PA, Mary Shannon Moore, Nancy H Morris, Judith L Morton, Peter M Moscone, Kathryn Moulton, Michael Mudgett, Pat Munn, Milan John Murphy, Jay Najmy, Barbara Nelson, Deborah Nelson, James Nguyen, Tuan Kim Obringer, Francis Padgett, Don M

Page, Daniel J Page, Linda A. Paige, Babette Palmeri, Charles J Paquette, Bruce William Parker, Gladys D Peitz, Ricky Joeseph Pelisek, James E Phillips, Nancy E Phipps, Brian E Piro, James J Piro, Roger M Pitchford PA, Christina Pittman, Shirley Ann Podolak, Andrew T Portman, James Power, Felix Price, Christopher J Pruitt, Rosemary L Rackey PA, Sally O Rayman, Carla Reece, Martyn C Rees, Jane E Reilly, M. Helen Reutter, Thomas Ridgeway, R Glen Riley, Bill L * Roberts, Kathy Robinson, Janet K Rogers, Ronna L Romano, John Rosen, Caterina Ross, Ann T Ross, Richard E Rudek, Tina Russell, Drew Sachs, Kathleen Hart Salefsky, Peter E Saunders, Michael Schatz, Peter S Schatz, Richard T Schemmel, Joel V Schmitt, Mary Alice * Schomaker, Judy Schwartz, Karen J Seider, Tracy G Selvog, Kristen Sensebe, Gisselle I Seropian, Lois A Sharp III, Lemuel Sheller, Greg Shore, Kent H Shumway, Erick Silverman, Joshua H Skapyak, Jody L Smith, Annette Smith, Kathleen A Smith, Morris Smith, Tara A Soda, Donna Soda, Jim Soller, Lynne Sommers, Kristy Yvonne

Sarasota Realtor速 Magazine

Souza Jr, Tony Gracia Spencer, Carolyn M St Pierre, Frank Stanoch, Annette Starcher PA, Linda I Starcher, Stafford L Starling, Fred M Stavola, Laura E Stoltzfus, Fannie Carol Stultz, Victoria L Swartz PA, Linda C Swenson, David E Taber, Betsie Tallman, Jay A Tan, Patricia A Thomas PA, Debra A Thompson, Linda R Thompson, Martha J Tidwell, Ida Kay Tillis Jr PA, Frank W * Toole, Clark Travnicek, Ivo Trefry, Janet Tresidder, Brian L Trevino, Kathleen S Trigg, Carol Triolo, Kristin K Tway, Gene Uccello, Abraham Ucci, Kathleen E Uihlein, Brendra B Vac, Andrew Vallone, Xena A Varbel, Barry James Vitale, Jim Viteri PA, Fernando Volpe, Crystal S von Waldner, Michael Wagner, Tom Wajszczak, Iwona Walker, Angela Wallace, Leland M Walters, Monty G Ward-Paramore, Adrienne Waters PA, Tom Waters, Gloria Watkins, Samuel Webber, Heidi Weigel, Blair Weiss, J Ruediger Wentzel, Thomas C White, David G Widmann, Sandra L Williams, Daniel R Wise, Carl A Witte, David P Wood, Brian S Wright PA, Judy D Yawitz, Michael Zucchelli, E Jean www.sarasotarealtors.com

T

April real estate market hits NEW seven-year high

T

There seems to be no stopping the Sarasota real estate market! April 2012 saw yet another seven-year high for monthly sales, hitting 886 total closed transactions. The figure topped last month’s 831 sales by 6.6 percent. It was the highest number of sales since August 2005, and when there were 908 total sales.

The breakdown was 589 single family home sales and 297 condo sales. Last April, the totals were 546 homes and 226 condos for a total of 759 overall sales, so the jump was about 17 percent year-to-year.

In addition, pending sales (which represent properties that went under contract during the month) remained very high at 1,068, the third straight month that topped 1,000, and a major indicator of the future direction of the market.

Last year’s spring surge didn’t slow down until July, and the numbers seem to indicate there remains strength in the current market dynamics.

“We’ve had an incredible string of positive numbers in the Sarasota real estate market, and we hope for a consistently strong market going forward,” said SAR President Laura Benson.

“I’m hopeful that this will be the case, because we seem to be leading the nation into the real estate market recovery. The national economy continues to improve, employment numbers are better, and we’re in the perfect marketplace in Sarasota.”

In addition to the amazingly high level of sales, the median sale price for both categories remained at the highest levels of the year in April. The median sale price for condos was $191,750, almost identical to the March figure of $192,000, a level not seen since May 2011. Single family was at $175,000, just above last month’s figure of $174,900, and a level not reached since June 2011.

Single family home prices remain at a level 21.4 percent higher than the low of the market reached 13 months ago, while condo prices are almost 30 percent higher than the low point.

The reason for the price resurgence is likely tied to the lower number of distressed property sales. The total number of distressed sales, foreclosures and short sales, fell to only 31 percent, down slightly from last month’s 32 percent figure – a new three-year low.

Currently, only 621 properties for sale in the MLS are short sales or foreclosures, down from last month’s figure of 701 properties. This represents about 14 percent of available properties, down from last month’s 15 percent figure. In February 2012, the number was 740 (16 percent of the market), and in January 2012 it was 812 (17 percent of the market). If this percentage continues to trend lower, we could begin to see median sales price increases going forward.

The available inventory of homes on the market dropped www.sarasotarealtors.com

“I would call this the perfect opportunity – a market in strong recovery, prices still very low compared to the price surge of 2003-2005, and interest rates at record lows.”

- SAR President Laura Benson

to a new decade low of 4,283, even lower than the previous low of 4,408 seen in August 2011. The combination of high sales and low inventory has also dropped the months of inventory to near decade lows. The market now reflects a figure of 4.7 months of inventory for single family homes and 5.1 months inventory for condos. Months of inventory represents the time it would take to deplete the current inventory at the current sales rate. Lower inventory and higher sales normally result in greater competition for available properties, which tends to push prices up.

“The decline in the available inventory has been remarkable, and competition for homes and condos generally creates upward price pressure,” said Benson.

“Buyers and potential buyers should understand that the current market scenario is clear – if you wait, you will miss out. We’re at a decade low for inventory, the mortgage interest rates are at the lowest level since the 1950s, and Sarasota remains the nation’s perfect place to relocate.”

Benson continued, “Every number indicates that we are seeing the virtual opposite of a perfect storm in local real estate. I would call this the perfect opportunity – a market in strong recovery, prices still very low compared to the price surge of 2003-2005, and interest rates at record lows. And SAR Realtor® members are certainly ready to help buyers and sellers achieve their dreams.”

Sarasota Realtor® Magazine

JUNE 2012

15

Sarasota MLSSM Statistics - April 2012 Single Family

Unit Sales

Condo

700 600 500 400 300 200 100 0 Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

Single Family

Median Sale Price

Condo

$250,000 $200,000 $150,000 $100,000 $50,000 $0 Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

Single Family #Active

#Sold

%Sold

Average DOM

Median Sale Prices

Median Last 12 Months

Months Inventory

Pending Reported

%Pending

# New Listings

# Off Market

This Month

2,758

589

21.4

175

$175,000

$165,000

4.7

748

27.1

662

134

This Month Last Year

3,321

533

16.0

169

$155,430

$158,000

6.2

687

20.7

512

166

2,887

596

20.6

175

$174,900

$161,000

4.8

822

28.5

788

144

-

2,007

-

172

$169,900

-

-

3,086

-

3,080

-

Nov 95.3 -

Dec 94.8 -

Last Month YTD

2011 2012

Jan 94.5 95.4

Feb 94.1 94.2

Single Family – Sale Price Vs. List Price % Rates

Mar 94.7 94.6

Apr 94.1 94.7

May 94.2 -

Jun 94.3 -

Jul 94.1 -

Aug 94.5 -

Sept 95.2 -

Oct 95.1 -

Statistics were compiled on properties listed in the MLS by members of the Sarasota Association of Realtors® as of May 10th, 2012, including some listings in Manatee, Englewood, Venice, and other areas. Single-family statistics are tabulated using property styles of single-family and villa. Condo statistics include condo, co-op, and townhouse.

Source: Sarasota Association of Realtors® 16

JUNE 2012

Sarasota Realtor® Magazine

www.sarasotarealtors.com

Sarasota MLSSM Statistics - April 2012 Single Family Condo

Inventory 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Apr-11 May-11 Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11 Dec-11

Jan-12

Feb-12 Mar-12 Apr-12

Single Family Condo

Pending Sales 900 800 700 600 500 400 300 200 100 0 Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

Condo This Month This Month Last Year Last Month YTD

2011 2012

#Active

#Sold

%Sold

Average DOM

Median Sale Prices

Median Last 12 Months

Months of Inventory

Pending Reported

%Pending

# New Listings

# Off Market

1,525

297

19.5

192

$191,750

$165,000

5.1

320

21.0

313

145

1,937

226

11.7

230

$185,500

$160,000

8.6

272

14.0

224

197

1,576

235

14.9

187

$192,000

$162,500

6.7

369

23.4

372

145

-

868

-

198

$180,000

-

-

1,266

-

1,362

-

Oct 93.2 -

Nov 93.6 -

Dec 92.7 -

Jan 93.4 93.1

Feb 91.2 93.5

Mar 92.2 94.2

Condo – Sale Price Vs. List Price % Rates Apr 93.4 94.3

May 94.5 -

Jun 94.2 -

Jul 92.5 -

Aug 93.1 -

Sept 92.8 -

Median sales price is the middle value, where half of the homes sold for more, and half sold for less. Listings sold were closed transactions during the month. Pending sales are sales where an offer has been accepted during the month, but the sale has not yet closed. Even though some pending sales never close, pending sales are an indicator of current buyer activity. DOM indicates the average number of days that sold properties were on the market before a contract was executed.

Sarasota Association of Realtors® MLS www.sarasotarealtors.com

Sarasota Realtor® Magazine

JUNE 2012

17

Commercial Investment Division

Commercial real estate faces accounting crisis

J

By Brad Lindberg CID President

Just when you thought it was safe to go back into the water, another threat is looming that could adversely impact commercial property. The threat is an accounting change that on the surface has some global benefits for standardizing the way businesses are valued.

If there were no repercussions to the change, it would go virtually unnoticed.

To understand the premise behind the change, we first must understand the definition of the terms.

“Capital” is something we own. “Operating” is something we use.

When we Capitalize equipment, we show it on the balance sheet as an asset. If we financed the equipment, we then show the unpaid balance as a liability. The difference in the amount paid and the unpaid is the “Equity” position of the asset. This is pretty simple accounting and is referred to as GAP (General Accounting Principles).

When we use services, supplies, or pay our employees, we account those payments as “Operating Expenses” and we deduct that from the revenue to get our NOI (Net Operating Income). Building Leases generally fall into the category of “Operating Leases”.

The FASB ( Financial Accounting Standards Board) and the IASB (International Accounting Standards Board) are proposing to change long term Commercial Leases from “Operating Leases” to “Capital Leases” This move in practice would move an estimated $1.1 Trillion to the balance sheets of companies, saddling them with new capitalized debt. This debt would create a total imbalance in company valuations and

Cont. on P. 19, See CRISIS

CID slates meetings for June 2012

CID General Membership Meeting Date: Tuesday, June 19th, 8:30 a.m.

Location: – Off-Site meeting to be held at M & I Bank located at 240 S. Pineapple -3rd Floor.

Meeting sponsored by Ian Black Real Estate Program: TBD CID Members Only

Officers:

JUNE 2012

Commercial Marketplace Sessions - Friday, June 1st, 9 a.m. – SAR Auditorium - Friday, June 8th, 9 a.m. – SAR Auditorium - Friday, June 15th, 9 a.m. – Manatee Association of Realtors®, 10920 Technology Terrace, Lakewood Ranch, FL - Friday, June 22nd, 9 a.m. – SAR Auditorium - Friday, June 29th, 9 a.m. - Off-site

2012 CID Officers & Directors Directors:

President: Brad Lindberg, Sperry Van Ness President-Elect: Linda Emery, Sperry Van Ness Vice-President: Tim Mapp, Mapp Realty Secretary: Dave Roth, RE/MAX Alliance Treasurer: Lori Hellstrom, Osprey Real Estate Services Past President: Anthony Homer, Ian Black Real Estate 18

their ability to raise funds as just one example.

The effect on the Commercial Investment market would adversely affect the way Credit Tenants would negotiate their leases. No longer would it be beneficial to negotiate a long term lease, as the term of the lease and all of the leasehold improvements would have to be treated as an asset with the associated debt of the liability of the term of the lease.

This would limit their ability to acquire funding for expansions creating a ripple effect.

The ripple effect would impact the Landlords as well.

They would no longer have the benefit of long term leases and be subject to market fluctuations that could easily devalue the property.

The investment community would be leery to buy into credit tenant leased properties because of the uncertainty of the commitment for long term growth.

In a recent letter from U.S. Representatives John Campbell and Brad Sherman to their colleagues in Congress written on April 16, 2012, they are asking their fellow Congressional Membership to consider the following impact on the economy: “Under the proposal, U.S. companies that lease office, industrial, and retail space would be required to capitalize the costs of that lease - just as if they purchased the property - instead of recognizing the true costs of the lease transaction. It is estimated that under current terms, businesses would be required to capitalize over $1.1 trillion in leased real estate assets onto their balance sheets. For businesses leasing space, especially small businesses, this will change

Susan Goldstein: Michael Saunders & Company (1 year 2012) Sarah Olesen: Michael Saunders & Company (1 year 2012) Tony Veldkamp: Sperry Van Ness (2 years - 2013) Bob Milhoan: Hembree & Assoc. (2 years - 2013) Peter Skokos: Norton Hammersley (3 years - 2014) Kevin Robbins - Harry Robbins Associates (3 years - 2014)

Sarasota Realtor® Magazine

www.sarasotarealtors.com

Lack of capital hinders commercial

National Association of Realtors® Chief Economist Lawrence Yun presented a modest and hopeful outlook for the commercial real estate market during the Economic Issues and Commercial Business Trends Forum at the Realtor® Midyear Legislative Meetings & Trade Expo in Washington, D.C. “The commercial market has displayed modest growth lately,” said Yun. “Commercial real estate is the basis for much of the growth in the American economy, however challenges continue to exist. Despite this there are hopeful signs that the market might be slowly recovering due to recent job creation and an increase in consumer spending, among other indicators.”

Yun provided an economic overview during which he identified a number of areas that showed signs of improvement.

Consumer spending has increased slightly, while personal incomes have risen. People also are now able to save money, proving that the savings rate had

rebounded. Jobs are also accelerating and the stock market has shown a strong recovery.

“Consumer confidence has yet to return to normal and America still needs to create more jobs,” said Yun. “However, there are signs that show a positive overall financial improvement within the country.”

One major challenge that continues to plague the commercial market is lack of available credit. While there are notable improvements in capital for large commercial transactions, valued at $2.5 million or higher, there remain significant challenges for small business.

According to NAR’s annual Commercial Real Estate 2012 Lending Survey, a majority of Realtors® are typically involved in less than $2 million transactions and are usually all cash – both of which make it difficult to obtain commercial lending. Yun pointed out that this is holding back the recovery

potential in the commercial market, as well as hindering overall economic recovery.

“Since the economic crisis, smaller lenders have been shut out while larger lenders do a majority of the business,” said Yun. “Realtors® have reported that they typically obtain commercial mortgages from smaller banks. They find it frustrating that the larger banks are gaining market share at the expense of smaller sized lenders, which is hampering lending to small businesses.”

All major commercial real estate sectors are seeing improvement, but multifamily housing continues to be the healthiest with falling vacancy rates and rising rents. Families who were foreclosed upon and young people who cannot obtain a mortgage are choosing to rent, and Yun predicts this trend will continue. Based on the demand and lack of new construction on apartment buildings Yun estimates rents will increase by about four percent next year.

CRISIS

From Page 18 these leases into a major liability. As a result, many businesses will shorten lease terms to minimize the impact. This will create instability in future rental costs and uncertainty about availability of space, as frequent renewals will be required. For commercial real estate property owners and investors, the impact will be even greater.

Among other things, this proposal may jeopardize income property fundamentals, loan structures, property valuations, financing covenants, and the underlying economics of commercial real estate - all during the worst real estate crisis since the Great Depression.”

The spiraling effect of this simple accounting rule could decimate the Commercial Real Estate market as we know it today. Efforts are in place to fight this change and as an Association we are challenged to help NAR to work with Congress to influence the FASB/IASB to not implement this rule, especially in this fragile recovery.

Our responsibility as an Association is to unify our power as a voice to influence those individuals who are “accountable” to the electorate and to the economy to insure that we have a full economic recovery and avert a meltdown of commercial property values. www.sarasotarealtors.com

Sarasota Realtor® Magazine

JUNE 2012

19

Education Programs

Pat Zaby explains how to go on automatic efforts through direct mail and Title: Turn it on Automatic: Serving social networking.

Repeat and Referral Customers Date: June 12, 9 a.m. to Noon • Services every homeowner Instructor: Pat Zaby wants Cost: SAR and other Realtors®: $39 • Branding to meet your Florida CRS Chapter Members: customers’ needs $29 • Resources for social media Register at www.sarasotarealtors. updates com Get a taste of what the CRS • Telling your story so people designation can teach you! will listen The Council of Residential Specialists • Increase top of mind (CRS) is offering a hot new course. awareness Repeat and referral customers account • Build your presence with for the majority of transactions, and Facebook and Twitter relationships influence agent selection.

Pat Zaby is a national speaker Maintaining top of mind awareness is and has presented at every the determining factor that results in Pat Zaby National Association of Realtors® you getting the call when your contacts convention since 1979 as well as or their friends are buying or selling. This session will help you develop a system for leveraging your creative numerous franchise and state conventions.

Gain valuable insights on distressed sales Title: Short Sales & Foreclosure Specialist (SFR) Course Date: Aug. 22, 8:30 a.m. to 5 p.m.

Location: SAR Auditorium Cost: $99 SAR Members; $119 Non-Members; Instructor: Terry Watson Designed for real estate professionals at all experience levels, the NAR Short Sales and Foreclosure Resource Certification, or SFR for short, gives you a framework for understanding how to: • Direct distressed sellers to finance, tax and legal professionals • Training on both the buyer and seller side of short sale and foreclosure transactions • Free webinars that you can download anytime, anywhere • Access to SFR logo and marketing materials • Differentiation as an SFR at www.realtor.com and www.realtor.org.

Becoming SFR Certified

The path to pursuing the SFR certification is straightforward: 1. Be a member in good standing of the National Association of Realtors® 2. Complete a qualifying core course (this one or CRS 111)

20

JUNE 2012

3. Complete three 1-hour webinars (free at www. realtor.SFR.org) 4. Download application from www.realtorSFR.org 5. Submit application with $175 application fee to SFR@realtors.org.

Find more information at www.realtorSFR.org.

Sarasota Realtor® Magazine

www.sarasotarealtors.com

Realtors®: Get a technology booster shot Title: Technology Booster Shot with Jack Lindberg Date: June 27, 9 a.m. to Noon Cost: $20 (in advance); $30 (at the door/space available) Spend a morning with Jack Lindberg while he covers three topics that will help you cope with new technology overload.

He will spend an hour each on the topics outlined below: 1) Risk Reduction Online Currently one of the hottest subjects in technology, Jack explores the many places online where a licensee can get in trouble. He shows how a skilled hacker can decipher your Social Security number from basic information commonly left “open” on Facebook... and how to prevent it. He discusses situations where agency can become an issue with simple conversations through social media or even email. He shares crucial mistakes made with website content that can cost licensees their livelihood. With the many ways to be “intruded upon” through the Internet, it is important to understand the pitfalls to protect yourself, your license and your clients!

2) Social Media Overview In this course, Jack covers a bit of history, comparing other forms of communications to the Internet to show how vastly superior the Internet is and demonstrating why the industry needs to embrace it. He also shares proprietary research and his extensive knowledge of both the real estate industry and technology to get his points across effectively.

3) Video for Real Estate YouTube is a great site that has seen exponential growth, but it has its pro’s and con’s. In fact, many people use TOO much video. Jack teaches the balance and where the success lies. He also shows alternatives to the “video listing” that have proven to generate more interest than any single listing. In addition, students will learn about the “YouTube for Real Estate” and how to take advantage of this new tool.

SAR School of Real Estate offers courses

New careers in real estate are now being nurtured at the Sarasota Association of Realtors® School of Real Estate (SARSRE).

Classes are held nights and weekends in Conference Room A in the SAR Education Building. Permit holder and instructor for the SAR School of Real Estate is Michael W. Davenport.

He is multi-licensed in Florida and has a distinguished resume that includes over 40 years of sales and management experience.

2012 Course Schedule

30 Hours Broker Post-License GRI Course 3: Real Estate Specialties July 23-25 and July 31-August 1 Tuition: On or before July 9: $265 (includes manual and materials) After July 9: $290 Course dates: Monday, Tuesday, Wednesday—July 23-25, AND Tuesday, Wednesday July 31-August 1, 9-4 each day End of Course Exam: Wednesday,(Course also carries 11 hours continuing education credit for license renewal for www.sarasotarealtors.com

sales associates and brokers) Instructors: Jorge Cantero, Lou Ludwig, Pat Reass Course provider: Florida Realtors® School of Real Estate

14-Hours Continuing Education for License Renewal August 7-8, 2012 Cost: SAR Members $79; Non-members, $99 SAR members, please go to www.sarasotarealtors.com to register for the 14-hour CE course or Core Law. Nonmembers, go to the Education tab at the top of the home page (www.sarasotarealtors.com) to download a registration form that can be completed and faxed to SAR. Instructor: Michael W. Davenport Sales Associate Pre-License Sept. 6 - Oct. 13 2012 Tuition: $364 (includes manual and materials) Class limited to 20 students Tuesday & Thursday Evenings 5:00-10:00 p.m. AND Saturdays 8:30-1:30 End of Course Exam: Oct. 13, 10-1 Instructor: Michael W. Davenport

Sarasota Realtor® Magazine

JUNE 2012

21

Learn how to maximize your income property Title: Income Property Analysis Dates: Sept. 25-26 Instructor: F.W. “Chip” Myers III Cost: SAR Members: $175 Non-SAR Members: $200 11 Hours FL CE Credit 8:30-5:00 p.m.

This course uses a unique approach to evaluating the viability of the various conventional measurements of value, yield, and return in investment real estate.

• Price Per Square Foot/Unit • Gross Rent Multiplier • Capitalization Rate • Cash on Cash • Equity Rate of Return • Internal Rate of Return

Sales leadership course scheduled in October Mark your education calendars for an October education extra at the Sarasota Association of Realtors®!

Oct. 2-3, 2012: CRB: Sales Leadership That Drives Performance Steve David will be teaching this timely course for brokers and managers.

Today’s managers must deal with a myriad of leadership challenges, such as Steve David recruiting, managing turnover, training and mentoring; in addition to running a successful and profitable business.

Steve has been part of the GRI faculty for over 22 years.

Mark your calendar now!

• Financial Management Rate of Return The 105-page workbook contains chapters on cost recovery, passive loss, capital gain tax computation, at risk limitations, compounding and discounting, net present value, discounted cash flow analysis, and risk /market analysis.

While a financial calculator is highly recommended, it is not absolutely necessary to participate effectively in this course. The recommended calculator is any HP, preferably the HP10BII. Who should attend: appraisers, property managers, residential agents interested in pursuing a commercial career, investors and principals pursuing their own real estate investment activity. The course also provides a refresher for seasoned commercial agents and is a great prep course for the CCIM CI-101 course.

The instructor has presented this course over 750 times in the last 14 years for over 14,000 students.

Award-winning printing and customer service Specializing in pocket portfolios, die-cutting and foil-stamping done in-house FSC and SFI certified to help you go green

CONGRATULATIONS!

Dedication and hard work pay off!! We congratulate our members who have successfully completed the Certified International Property Specialist (CIPS) designation, Resort & Second Home Property Specialist (RSPS) designation, and Certified Luxury Home Marketing Specialist (CLHMS) certification!

RESORT & SECOND HOME PROPERTY SPECIALIST (RSPS)

Jessika Arman Karen Grant

Michael Saunders & Company Michael Saunders & Company

CERTIFIED INTERNATIONAL PROPERTY SPECIALIST (CIPS)

Sheldon Paley

Premier Sotheby’s Int. Realty

Sarasota’s Premier Real Estate Printer 1730 Independence Blvd., Sarasota, FL 34234 (941) 351-1515 • (941) 351-8639 F • www.coastalprint.com sales@coastalprint.com

CERTIFIED LUXURY HOME MARKETING SPECIALIST (CLHMS)

Ronnie Caron 22

JUNE 2012

Caron Realty, Inc.

Sarasota Realtor® Magazine

www.sarasotarealtors.com

My Florida Regional MLS offers new courses

Pre-registration is required for all MLXchange classes at www. mfrmls.com. All classes are handson in the SAR Technology Center (except for Entering and Updating).

Registration is limited to 18.

Please be sure that you will attend if you reserve a spot! If you need to cancel, please call MFRMLS at 800.686.7451 (not SAR).

MLXchange Basic June 4 or June 18, 9 a.m. to Noon Mandatory session for all new users.

Learn the basic tools of MLXchange.

It does the work for you, emailing the listings that match your client’s criteria automatically through auto notification. Learn the quick way to find a listing or view your inventory with one click right from the home page or create a professional CMA in less time than it takes to drive to work.

- Review the home page features - Add a new client from the search - Searching and viewing listings, using the map, showing road, aerial, hybrid, and locator features - Adding additional search criteria - Viewing/printing/emailing reports, images, virtual tours, tax, map, driving directions and MLS listing history - Customizing the hotsheet configurations - Search Tax - Creating a professional CMA - Personalize user contact information NEW! Compliance 101 June 4 or June 18, 1 to 2:30 p.m.

Mandatory session for all new users.

In this course you will learn about the My Florida Regional MLS Rules and Regulations, and the compliance procedures for accuracy of listing data, along with educational materials available on MFRMLSUniversity.com - Rules and Regulations - Profile Sheet Terms - iSmart Tool Adding and Modifying Listings in MLXchange June 4 or June 18, 3 to 4:30 p.m.

Mandatory class if you will be entering and updating your own listings.

You will be taught how to input and www.sarasotarealtors.com

modify listings, enter photos, and add attachments along with valuable tips and techniques.

- Listing maintenance authorization forms - Explain the importance of accurate data - Rules and Regulations - Review the profile sheet iMapp - Interactive Tax and Mailing Labels June 12, 9 a.m. to Noon In this class you will learn how to use the tax search features of MLXchange, access iMapp’s interactive maps, tax data, comparables, auto-valuations, and easily create mailing labels for your favorite area.

- MLXchange tax search, using map and field searches, printing mailing labels - iMapp tax search, viewing parcel, GIS, MLS listings, zoom levels, street, aerial and flood zones - Measuring tool, pan and save map - Creating, viewing and downloading mailing labels - Illustrate the link to the tax appraiser website - Viewing and modifying the criteria for comparable properties - MLS and foreclosure searches NEW! MLS System Settings & Defaults June 12, 1 to 2:30 p.m.

This class will teach you how to set up system settings in the MLS, including how to save reports as favorites, setting up your email defaults, search defaults and much more.

- Favorite reports - Email templates - System defaults - Personal links on home page - Stationary

Sarasota Realtor® Magazine

NEW! Auto-Notification Searches/ Prospecting June 12, 3 to 4:30 p.m.

This class will teach you how to create custom searches for your prospects and set up those searches to automatically notify your clients of newly matches properties. You will also be taught how to manage the searches and communicate with your client through their Personalized Web Page.

Basic Agent Web Page Set-Up (prerequisite for Advanced Web Page Customization) June 27, 9 to 9:45 a.m.

This class will teach you the basics of setting up your Agent Web Page in MLS. This will allow you to email listings to your clients via the Agent Web Page.

- Site Builder - Agent Website Configuration - Changing Style - Domain Names - Site Branding NEW! Listing Tools June 27, 10:15 to 11:45 a.m.

This class will introduce you to Member Benefits that will provide you with valuable tools for your listings in MLS. - RealBiz 360 - Virtual Tours - ShowingTime - Data- Coop - RE Technology CMA (CE Credit) June 27, 1 to 4 p.m.

This class is designed to teach you the skills needed to create a comprehensive CMA. You will learn how to import properties that are listed outside of the MLS, into your CMA along with valuable tips and techniques for creating a professional CMA. JUNE 2012

23

On the SAR Scene

Making the SAR Scene in 2012!

From left, S. Vahid Hosseini, Peter Salefsky and David Wyant are seen at the SAR Affiliates Business After Hours event at Gecko’s on May 22nd.

Visit SAR on Facebook at www.facebook.com/SarasotaRealtors

Photos by Jesse Sunday

At left, Mary Hellhake and Joann Koontz; and above, Oliver McConnell and Anne Weintraub at the April 24th Business After Hours event at Gecko’s.

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JUNE 2012

Sarasota Realtor® Magazine

www.sarasotarealtors.com

Title: International Marketing With Immobel Date: June 6, 2 to 4 p.m.; Networking to follow Cost: FREE to Global Business Council Members; $10 others Meet Janet Choynowski, CEO of Immobel, when she visits SAR to personally update our members on the lastest and greatest from Immobel—one of SAR’s many member benefits which is provided at no extra cost.

Part 1 will examine global marketing via the web, how to make your website “global friendly” and how to

turn your website into a true lead generating machine!

Part 2 will look at global networking and marketing using social media: how to use Facebook, Twitter, Linkedin, Immobel and Real-Buzz to attract both clients and referrals, develop leads, nurture existing clients and leverage your entire network of contacts to work harder for you than ever!

Ready to really Go Global? These two marketing and networking modules will take your efforts to the next level.

Mexicans moving north in fewer numbers Though it’s seldom been in the headlines, the number of Mexicans moving to the United States has declined dramatically in the last five years. The U.S. job market has shrunk while the Mexican economy has been growing, generating jobs for Mexico’s citizens, many new businesses, a solid middle class and a very wealthy business community.

That said, numerous Mexican citizens are still seeking U.S. residency, opportunity, or a safe place to raise their children. Some prospered from Mexico’s booming economy, but feel they must move north while Mexico addresses crime issues.

NAFTA and investment visas have given Mexican nationals with the means a way to invest and live in the United States. With our market in a slump, it’s a great time for them to buy U.S. real estate.

Though much of the activity is now taking place around the border, there are also pockets of investment activity in other parts of the country. If violence escalates in Mexico, more investors will be looking to the U.S. as a safe haven. Learn where and what Mexican investors are looking for, and how you may be able to tap the opportunity. Join the SAR Global Business Council!

There are segments of the Mexican population where immigration to the U.S. is increasing: entrepreneurs, investors and the middle class. In fact, the trend has been labeled the “Mexodus” in a recent study by four U.S. and Mexican universities. Somewhat under the www.sarasotarealtors.com

radar for most of the American public, a sizable number of Mexican investors and business owners have been moving north to make significant investments in U.S. property and business startups, generating jobs for Americans along the way.

In 2011, Mexicans (including Mexican-born residents here) purchased $5.74 billion in U.S. real estate. That represents 7 percent of properties sold to international buyers, and it makes Mexico the third largest investor after Canada and China. Mexican-born buyers are a significant force in the U.S. economy.

Since the start of President Calderon’s war on drug cartels, the issue of seguridad (security) has become one factor compelling Mexicans northward. Wealthy Mexicans have become targets for extortion and kidnap by drug cartel operatives. Fearing for their safety, some are moving their families to the United States. Middleclass business owners, tired of paying “street taxes,” are selling their businesses to buy or open similar enterprises on the U.S. side of the border.

Mexicans have also been attracted to the U.S. market by the same factors that interest other foreign nationals— the plunge in our property prices, the weakness of the dollar, and the relative stability of the U.S. financial markets.

Global Business Council

Gain global reach with Immobel system

Keep up with the trend by speaking with a GBC member today!

Sarasota Realtor® Magazine

JUNE 2012

25

New SAR headquarters site gains county approval Editor’s Note: Read the July 2012 issue of Sarasota Realtor® Magazine for all the details on this exciting breaking news concerning the future home of SAR! The finish line is in sight for the construction of a new, state-of-the-art facility for members of the Sarasota Association of Realtors®, complete with adequate parking for classes and events, a centralized, easily accessed location, and modern, “green” construction standards.

After retiring the debt on SAR’s present facility in 2001, the Board of Directors, on the advice of our CPA, began designating excess revenue each year for a new building.

There has been discussion periodically over the last 11 years about a new building, primarily due to the inadequate onsite parking and lack of room for expansion. Several times, a committee or task force was formed, and each time, for a variety of reasons, the task was put on hold.

Fast forward to 2011. The SAR Board thoroughly re-examined the issue, and a potential site was selected on

Cattlemen Road, at the northwest corner of Colonial Oaks Boulevard.

While most of the parcel is zoned OPI (Office, Professional, Institutional), a small segment is zoned RSF3 (residential), which requires a special exception in order to construct parking to serve the OPI piece. After months of delay, the Board of County Commissioners unanimously approved the special exception on May 9th.

Closing on the property is expected this month, with Halfacre Construction to begin construction soon thereafter.

If all goes as planned, move-in will be in about a year. SAR will remain in the current facility during construction.

Because of the foresight of SAR leaders, and a favorable negotiation with the property owner, SAR will own the new headquarters facility debt-free, as we do with the current facility. The artist’s rendering and other information about the new facility will be published in the July issue. Watch your Inbox for our scheduled ground-breaking ceremony

Have you completed Code of Ethics training yet?

The Code of Ethics is central to the Realtor® organization, and adherence to the Code of Ethics distinguishes Realtors® from mere real estate agents. Because of its importance, the National Association of Realtors® (NAR) has mandated that every four years all Realtors® must complete a two and onehalf hour renewal course of instruction on the Realtor® Code of Ethics as a condition of membership.

Every Realtor® must complete the NAR Code of Ethics Training Requirement by Dec. 31, 2012. Realtors® who do not meet the requirement will have their Realtor® status SUSPENDED on Jan. 1, 2013. This is a nationwide requirement!

Follow these easy steps to ensure you meet the requirements and maintain your membership as a Realtor®.

STEP ONE: Determine if you need the training If you have successfully completed one of the following since Jan. 1, 2009 then you have satisfied the Members Code of Ethics training requirements: • A Code of Ethics refresher class (online or in the classroom) • The Professional Standards class in the GRI 1 track • The Code of Ethics New Member Orientation Program To determine if need to take the training, or to verify that your record accurately reflects a course you have already taken, please log into your membership account at http:// www.sarasotarealtors.com/. Then click on your “Education History”. Your record should show a “Code of Ethics” (or COE followed by the year). Look for a date after Jan. 1, 2009.

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JUNE 2012

If you have fulfilled the requirement by taking an approved course through another association or company and it does not appear on your record, please fax the documentation to Education Department at 941.923.0191 so that your record can be updated.

If you have recently taken the NAR online course, please allow up to two weeks for your status to show as “Completed.”

STEP TWO: Fulfilling the Ethics requirement If you have determined that you need to take the Code of Ethics refresher class, you can: • Take NAR’s free online Ethics class. Just visit www.realtor. org and go to the Education tab. From there, click Code of Ethics Training on the left. Please note: No CE credit hours are available when taking the course via NAR’s online course.

• Take an online course through SAR’s website and earn continuing education credit as well as the Ethics requirement for a fee. Go to http://www.sarasotarealtors.com/, click on the “Education” tab, and then choose “Online Education.”

• Take a free refresher in the classroom at SAR (part of the New Member Orientation). Class is from 1 to 4 p.m. Check the SAR education calendar and register for one of the listed dates. The dates for the remainder of 2012 are: June 11, July 9, August 13, September 10, October 8, November 12, December 10 These classes are held from 1 to 4 p.m. Please note: No CE credit hours are available when taking the course in the classroom at SAR and registration is required.

• Offices can pick up a 2½ hour DVD from SAR to present a course in their office, and the broker can then certify a list of agents who have completed the course DVD copies are limited. Pick up the DVD and sign it out at SAR’s front desk.

Sarasota Realtor® Magazine

www.sarasotarealtors.com

By G.M. Filisko Realtor® Magazine

Fights with—and between—your sales associates over compensation can devastate your company. Here’s how to resolve them.

Paul Caillaud has seen the corrosive effect an internal commission dispute can have on a company, and he’s glad he watched it from afar.

“All I can say is that it’s a bad thing,” says the general counsel at the 85-salesperson RE/MAX Preferred in Fort Lauderdale, Fla. Caillaud’s intent is always to resolve conflicts between brokers and salespeople in the hope of avoiding litigation. “In one case, a salesperson left [another brokerage], and everybody in the office knew what was going on. We got phone calls from that company’s associates wanting to affiliate with us, which was wonderful for us but crappy for the broker who created the situation.”

What caused the dispute? To close a transaction— after having cleared it orally with his broker—a listing agent told his clients that his company would reduce its commission by half a percent. At the closing, however, the broker balked.

The broker got his way, taking the $400 in dispute out of the listing agent’s share of the commission.

Caillaud became aware of the dispute because one of his company’s salespeople represented the buyers in the deal.

The broker eventually relented, but the damage had already been done. “For $400,” Caillaud says, “the broker risked that sales associate leaving and the polluting commentary of that salesperson as he went out the door.”

Commission disputes between sales associates at your company can cause similar harm if you don’t have a process for skillfully resolving them. Here’s how to do just that for both types of disputes.

Spell Out the Rules Last-minute agreements, such as the one Caillaud described, can lead to trouble. So can sudden departures in which salespeople mistakenly believe they can take a client with them in the middle of a transaction, says Alex Wang, a principal and broker-associate at Sereno Group in Palo Alto, Calif.

There are two keys to avoiding fights with sales associates over money. First, detail your company’s rules in your office policy manual. “We have a 40-page manual that we have sales associates sign annually,” says Pamela Cirkiel, ABR, CIPS, broker-owner of M.E. “Gene” Johnson, Realtors®, in Round Rock, Texas. “We have a section on commission disputes that basically says, while there will occasionally be misunderstandings, they will be handled promptly by the parties involved. www.sarasotarealtors.com

If they can’t be resolved by the parties, we’ll use our local board’s arbitration services. We have a really good dispute resolution program at the Austin Board of Realtors®.”

Indeed, every state and local association is required to offer dispute resolution services, including mediation and arbitration, to their Realtor® members.

Cirkiel’s manual also has provisions about the importance of a positive attitude, honesty, and integrity.

“I think that helps me avoid these kinds of disputes,” she says. “When people are happy where they work and don’t feel threatened, there are fewer disputes.”

Second, put into writing last-minute side agreements that deviate from your overall commission agreement with sales associates.

“Be clear in your conversations, and then put those conversations in writing,” suggests Wang. “Just shoot it in an e-mail saying, ‘This is my understanding of the agreement.’ It’s easy to fix these problems in the beginning. Later on it’s tougher.”

Referees for Salespeople More common than commission disputes between brokers and salespeople are internal squabbles between sales associates.

Caillaud has seen disagreements occur when two salespeople have different understandings about the nature of a referral: The associate who receives the lead expects to pay a referral fee of a particular amount, while the other associate is looking at the transaction as more of a co-op sale, with the salesperson’s portion divided differently.

To resolve such disputes, Caillaud’s company creates a mediation panel. “We set up the equivalent of a traditional board of Realtors® mediation,” he explains.

Associates can also disagree over procuring cause.

Cirkiel has seen that twice in the past six years with the same salesperson, a person Cirkiel respects. “She’s a very hard worker and in the office a lot,” Cirkiel says. “She feels if she greets people at the door, they’re her clients. So if they come back and sign a buyer representation agreement with someone else, she’s upset.”

The best way to avoid procuring cause disputes? Train sales associates to ask buyers if they’re working with another salesperson and to sell the benefit of signing a buyer agency agreement. That approach, however, isn’t always foolproof. “The second time there was a dispute, the client actually signed two buyer representation agreements,” Cirkiel says. “Both associates told me they asked the client, ‘Are you working with another salesperson?’ and ‘Have you signed a buyer agency agreement with another salesperson?’ And I believed them.”

Sarasota Realtor® Magazine

JUNE 2012

Broker Corner

Commission clashes can cause difficulty

27

Feng Shui offers fresh approach to real estate

By Marianne LeBar WCR President

We have all heard about the principals of Feng Shui, but how do we apply them to our day to day business practice?

Steve Kodad, the author of “Feng Shui for the Real Estate Agent”, presented “The Feng Shui Cure” to the Women’s Council of Realtors® at our May Business Resource Meeting at Polo Grill. He showed us how to apply complicated systems into layman terms.

We all know how important curb appeal is, however there is more than meets the eye. Beautiful curb appeal attacts a buyer to a home, but curb appeal does not mean all things green. Round potted plants, pops of color, reds and yellows intrigue a buyer enough for them to make the call with a desire to see more. A red or yellow entry door will also attract a buyer, a massive wood double entry door is attractive too as long as it is balanced with other elements.

2012 WeD JaN

WCR Program Meeting Dates

18 FrI FeB

Ringling Museum of Art

FrI Mar

9

FrI apr

Location: University Park Country Club Speaker: Ringling Museum of Art

Technology Presentation

Location: University Park Country Club Speaker: Steve Richman

13 FrI MaY

Past President’s Luncheon

FrI JUN

15

Maximize Your Membership.

FrI JUL

Location: Polo Grill, Lakewood Ranch Joint Event with Manatee WCR

RPAC Presentation

13

Location: Sarasota Yacht Club Speaker: Helen Moore & Jack Graecen

WeD aUG

Sarasota Historical Presentation

15

WeD Sept

19

FREC Presentation

Location: University Park Country Club Speakers: Darla Furst & Juanita Watkins

11

SaraSota Chapter

Finding the UP in the Downturn Location: University Park Country Club Speaker: Fawn Germer

10

The foyer entry is very important, if you have a covered exterior entry be sure that brass is polished, keep the entry free of spider webs and mud daubers.

Imagine your client observing their surroundings while waiting for you to open the front door. What are they observing? Traffic noise or the pleasant sound of running water from a fountain.

One of the most basic principals we learned was that once inside a well lit home, the buyers eye should move to the left or right; he suggests the warmth of a beautiful piece of artwork that is eye catching before the buyer becomes distracted with the walls of glass; windows or doors straight ahead, much like our standard Florida floor plan. After all Feng Shui is a universal practice all cultures are aware of it, the western culture does not emphasize the practice of Feng Shui as much as others.

For more information about his topic visit www. thefengshuicure.com

FrI oCt

Location: Sarasota Yacht Club Speaker: Sarasota Historical Society

Fashion Show Location: Polo Grill Lakewood Ranch

Business Development

12

Location: Michael’s On East Topic: Designation Speak CRS

WeD NoV

Insurance

Joint Meeting with SAR

Location: Troyer’s Dutch Heritage Speaker: TBD

14

FrI DeC

14

Location: Michael’s On East Speaker: Ron Regan

Incoming President’s Installation Location: Sarasota Yacht Club

REGISTER FOR ANY OF THESE EVENTS by e-mailing Linda Witt at MzWitt@aol.com

2012 Leadership Team

28

Marianne LeBar President Michael Saunders & Company Cell: 941-650-0337 mariannelebar@michaelsaunders.com

Peter Salefsky Vice-President Membership Michael Saunders & Company Cell: 941-544-0763 maryhellhake@michaelsaunders.com

Sherri Spanos Recording Secretary Lakewood Ranch Communities Phone: 941-907-6000 sherri.spanos@lakewoodranch.com

Mary Hellhake President-Elect Michael Saunders & Company Cell: 941-544-0763 maryhellhake@michaelsaunders.com

Carrie Starr Rummery Treasurer Starr Title Insurance Phone: 941-365-7827 carrie@starrtitle.net

Linda McConnell Corresponding Secretary FBC Mortgage LLC Phone: 941-504-0823 lmcconnel@fbchomeloans.com

JUNE 2012

Sarasota Realtor® Magazine

www.sarasotarealtors.com

www.sarasotarealtors.com

title to the buyer at closing.

This is because, in order for a title company to issue marketable title to the buyer of an REO property, it is typically necessary for the seller of the REO property to provide certain affidavits or undertake certain curative actions prior to closing. However, if the contract states that the seller is merely obligated to convey insurable title, and not marketable title, to the buyer, then the seller may not be required to provide the affidavits, or undertake any curative actions, as long as the title company will agree to issue a final title policy to the buyer at the time of closing.

With regard to the purchase of a foreclosure property in the state of Florida, the successful bidder at a foreclosure sale obtains title by a Certificate of Title issued by the clerk of court. This instrument may convey insurable title, but does not necessarily convey marketable title, and will be subject to any and all rights, claims and interests that were not resolved by the foreclosure action.

In light of the above, and other complex issues that can be encountered when closing REO transactions, it is important to consider having an experienced real estate professional review the sales contract, and perform the title search and closing, to ensure that your clients receive the highest quality of title at the time of closing.

Sarasota Realtor® Magazine

®

By Michael P. Infanti,Esq. Norton, Hammersley, Lopez & Skokos, P.A. In today’s market, some bank-owned and foreclosure properties (REO) can offer great reward to courageous buyers, but can also be fraught with potential title issues for the unwary. This article will briefly distinguish some of the differences between “marketable” and “insurable” title, and how those differences might affect an REO purchase.

As a general rule, all marketable title is insurable.

However, not all insurable title is marketable.

“Marketable” title is generally defined as title which is free from encumbrances and any reasonable doubt as to its validity, such that it would be acceptable to a reasonable person. Conversely, “insurable” title is a lesser quality of title, and is merely title that a reasonably prudent title insurance company would be willing to insure at normal market rates. Therefore, the principal difference between “insurable” title and “marketable” title is the fact that, for marketable title, it must be acceptable to a reasonable person, whereas insurable title does not.

Insurability is the title company’s willingness to insure title. Because the insurer typically accepts a degree of business risk when it issues title insurance, insurability is a broader and more flexible standard than marketable title.

Specifically, under Florida law, a title company is permitted to issue insurable title despite certain alleged defects or other issues if the title insurer can adequately access the risk and make a determination that the potential for loss is remote, negligible or minor.

For example, if a title company discovers that a ten-year old deed from a prior owner was not properly executed, the title company will typically require that the deed be re-executed, or that other curative actions take place, so that the title company can provide marketable title to the buyer at the time of closing.

However, if the title company is merely issuing insurable title, and not marketable title, then it may not require that any curative action be taken if the title insurer can adequately access the risk and can ultimately determine that the potential for loss is remote, negligible or minor, even if such defect would not be acceptable to a reasonable person.

Although it is a matter that can be negotiated between a buyer and seller, most sales contracts state that the seller shall provide marketable title to the buyer at the time of closing.

However, in many cases, the seller of an REO property will only agree to convey insurable

Realtor -Attorney Joint Committee

Marketable vs. Insurable Title in REO Transactions

JUNE 2012

29

Membership News 30

The Association is pleased to welcome new members!

Designated Realtors®

Atchley, Alan: Atchley International Realty Campbell, Lori: Allegiant Real Estate Group Grashof, John: Grashof Appraisals Inc. Hanly, Patricia: Hanly & Associates Realty Martell, Kira: Kira Martell R.E. Broker Sanchez, Ada: Malone Property Group LLC Westerfield, Divina: Divina Westerfield R.E. Broker Zunica, Carolyn: Carolyn Zunica Cert. Appraiser

New Members

Albritton, Cherial: Exit King Realty Arango, Michele: Dunham Calabrese Realty Inc. Asendorf, J Richard: Peens Property Group Inc. Boucher, Gina: Coldwell Banker Res RE Boyajian, Sandra: J Wood Realty Brasgalla, Rose: Rosebay International, Inc. Carnio, Tatiana: Keller Williams On The Water Cavanaugh, Charlene: RE/MAX Tropical Sands Coay, Jessica: Keller Williams Lakewood Ranch Davis, Samira: Key Solutions Real Estate Group Donath, Linda: Coldwell Banker Res RE Drews, Elisa: Coldwell Banker Res RE Feidieker, Detlev: Realty Executives Solutions French, Jill: Coldwell Banker Res R E Frudakis, George: Florida VIP Realty Inc. Gambardella, Kelli Jo: Key Realty Gundersen, Claudia: Exit King Realty Hagman, Helmer: Wagner Realty Harrington, Terri: Exit King Realty Hofmann, Angela: Roberts Realty Inc. Kuyper, Donald: Coldwell Banker Res R E Lagler, Scott: Jennette Properties Inc. Lechien, James: Bosshardt Realty Services LLC McCollum, Linda: Atchley International Realty Merrill, Dawn: Sandals Realty of Sarasota Miller, Julia: Hook & Ladder Realty Inc. Morgan, Daniel: Sandals Realty of Sarasota Nichols, Adrian: Michael Saunders & Company Pelletier, Joseph: Florida Realty Specialists LLC Prost, Rachelle: Keller Williams On The Water Schab, James: Keller Williams On The Water Schreiber, Marni: ERA Waterside Realty Setzer, Nary: J Wood Realty Shank, James: Keller Williams Lakewood Ranch Shanley, Michael: Sarasota Trust& Estate Property Sproehnle, Patricia: Exit King Realty Trautweiler, Linda: Atchley International Realty Underdahl, Rod: Premier Sothebys Internat’l Urfer, Sherri: Parisi Sam J Lic R E Broker Vattamattam, George: Coldwell Banker Res R E White, Scott: Sandals Realty of Sarasota White, Kathleen: Collier & Assoc Real Estate Wilcher, John: Market America Realty & Invest

JUNE 2012

Now With ...

Anderson, Bradley: Florida Internet Realty LLC Ansilio, Sandi: Premier Sothebys Internat’l Arango, Michele: Dunham Calabrese Realty Inc Arbuckle, Nancy: Michael Saunders & Company Asendorf, J Richard: Peens Property Group Inc Brown, Lisa: Market America Realty & Invest Casella, Robert: Keller Williams Rlty Manatee Chakos, Anne: Premier Sotheby’s Intl. Realty Dipsiner, Steve: Sandals Realty of Sarasota Ditchfield, Nathanael: Eslinger Realty Inc. Ebury, Jane: Murray Realty Elistratova, Nikki: Quality Int’l Real Estate Engel, Mia: Neal Communities Realty Inc. Hanly, Thomas: Hanly & Associates Realty Hardy, John: Hook & Ladder Realty Inc. Harrington, Linda: Coldwell Banker Res R E Harris, Frank: Keller Williams Rlty Manatee Homer, Anthony: Ian Black Real Estate LLC Hutton, Timothy: Realty Partners LLC Jakusovas, Veronica: Coldwell Banker Res R E Johnson, Kyra: Meadows Real Estate Services Kropp, Keith: J Wood Realty Kukie, Wade: Exit Realty Signature Group Lawson, Diane: Sperry Van Ness Commercial Leider, Denise: Sarasota Management & Leasing Lightcap, Susan: Mount Vernon Property Mgmt Lord, Diana: Premier Sotheby’s Intl. Realty MacInnes, Karen: Buyer’s Broker of SW Florida Markov, Andrey: Divina Westerfield R.E. Broker Masseo, Therese: London Bay Realty Inc. McEleavy, June: Michael Saunders & Company McNally, Jennifer: Horizon Realty International Nason, Liz: DWELL Real Estate Noce, Susan: Key Realty Noce, Ronald: Key Realty Orjuela, Jaime: SRQ International Realty LLC Padula, Sandra: Allison James Estates & Homes Purmort, Lyn: Sandals Realty of Sarasota Putrino, Regin: Key Solutions Real Estate Group Putrino, Curtis: Key Solutions Real Estate Group Rogers, Wayne: J Wood Realty Rothschild, Irwin: Sandals Realty of Sarasota Schott, Marilyn: Keller Williams Lakewood Ranch Selvog, Kristen: Atchley International Realty Shakura, Lidiya: Quality Int’l Real Estate Slater, Marina: Key Realty Smith, Bridget: Sarasota Realty Associates Inc. Sokolov, Sergei: Michael Saunders & Company Tebo, Patti: Keller Williams Lakewood Ranch Thompson, Martha: EXIT Creative Realty Velez, Emily: Sarasota Premier Properties Wolf, Kimberly: Dawn Cohen and Associates

Sarasota Realtor® Magazine

www.sarasotarealtors.com

Congratulations to our 32 new SAR members who joined us in May 2012!

New Affiliates Humana

7650 Eagle Creek Drive Sarasota, FL 34243 Phone Number: 941-400-0109 Representative: Philip Smith Specialty: Whether you want basic coverage or more benefits, we have the plan you’re looking for - and the top-notch service you expect. Are you looking to purchase a plan for yourself, without the help of an employer? If so, let me explore the affordable personal health plan options offered by Humana and get you a quote. Humana Services all your insurance needs, including: Individual Major Medical, Dental, Vision, Life Insurance, Term Life, Fixed Annuities and Long Term Care.

Email: PhilipSmith53@gmail.com

Openview Publishing LLC

1335 Hidden Harbor Way Sarasota, FL 34242 Phone Number: 941-735-8829 Representative: Cynthia Horton Specialty: Experts in iPhone and iPad Apps for Real Estate, Property Investment, Finance, Retirement… etc. Our products are available in the iTunes App store and cover a wide range of applications. Just search for “Openview” in Itunes. We offer a wide selection of quality products at a small price. If you are a Real Estate Agent , a student , Business Owner, or Investor you will love our apps. They are simple to use , come with examples and

www.sarasotarealtors.com

there is no start time required before you can use them.

We have thousands of users and they all say the same thing “I really got my money’s worth with this purchase.”

Many of our apps have free components, it cost you nothing to download them to begin. Try it , you will like it. OpenView has developed a wholes suite of real estate products. Each product contains many real estate functions. There is no doubt that one of our apps will fit your real estate needs. Most of the apps contain over 20 functions.

Email: openviewpub@aol.com

Sam Rodgers Properties

20065 Galleria Blvd Venice, FL 34293 Phone Number: 941-737-4127 Representative: Mark S Davis Specialty: Sam Rodgers Properties a new home builder and developer is continuing a 17 year association with Arthur Rutenberg Homes as franchisee for Manatee and Sarasota counties. Their company has built thousands of homes in Manatee, Sarasota, Polk, Pasco and Lake Counties during its forty-two year history. Being a family team, they know the importance of meeting and exceeding the expectations of each and every home purchaser. You can count on their stability, and management expertise to make your dreams come true with your new Arthur Rutenberg Home.

Email: mdavis@arhomes.com Email: nicholas.roberts@suntrust.com

Sarasota Realtor® Magazine

JUNE 2012

31

E DUCATION & E VENTS C ALENDAR Tuesday

Wednesday

Thursday

Friday

May 28

29

30

31

June 1

4

5

6

7

8

11

12

13

14

15

18

19

20

21

22

25

26

27

28

29

8:30 a.m. CIPS Institute

9 a.m.

Basic MLXchange 11:30 a.m.

Tech User Group 1-2:30 p.m. Compliance 101 3-4:30 p.m. Adding and Modifying Listings 9 a.m.

New Member Orientation 1 p.m.

Code of Ethics

9 a.m. Basic MLXchange 1-2:30 p.m. Compliance 101 3-4:30 p.m. Adding and Modifying Listings

8:30 a.m.

CID Board of Directors 5 p.m.

Sales Associate Pre-License

9 a.m. CRS Class 9 a.m. iMapp 1 p.m. MLS System Settings & Defaults 3 p.m. Auto-Notification Searches/Prospecting 5 p.m.

Sales Associate Pre-License

8 a.m. CID General Membership (offsite) 5 p.m.

Sales Associate Pre-License

9 a.m. Property Management 5 p.m. Affiliate After Seminar Hours Networking (Gecko’s)

8:30 a.m.

CIPS Institute 9 a.m. CMA 1 p.m. Basic Agent Web Page Set-Up 2:30 p.m. Advanced Web Page Customization 7:30 a.m.

Toastmasters 9 a.m.

Emerging Leaders 5 p.m.

Sales Associate Pre-License

8:30 a.m.

Leadership Committee

7:30 a.m.

Toastmasters 12 p.m.

RAJC Seminar—Condo Update

9 a.m. Basic Agent Web Page Set-up 10:15 a.m. Listing Tools 1 p.m. CMA

8 a.m.

Power Marketing (SAR)

8 a.m.

Power Marketing (University Park CC) 9 a.m.

Emerging Leaders 5 p.m.

Sales Associate Pre-License 8 a.m.

Power Marketing (SAR)

8 a.m.

Power Marketing (SAR) 5 p.m.

Sales Associate Pre-License

8 a.m.

Power Marketing (SAR)

9 a.m.

CID Commercial Marketplace

9 a.m.

CID Commercial Marketplace

9 a.m.

CID Commercial Marketplace 11:30 a.m. Quarterly Membership Luncheon (Dutch Heritage)

9 a.m.

CID Commercial Marketplace

9 a.m.

CID Commercial Marketplace (offsite)

Note: All events/classes are at SAR, except where noted

My Florida Regional MLS Training

The My Florida Regional MLS training classes are offered at no cost to MLS participants. All classes are HANDS-ON in the SAR Tech Center. Please register for all MLS classes at the MFRMLS website: http://mfrmls.com. Click on Education and Training.

Sarasota Association of Realtors®, Inc. 3590 S. Tuttle Ave. Sarasota, FL 34239

Monday

PRSRT STD U.S. POSTAGE PAID MANASOTA, FL PERMIT NO. 451

JUNE 2012

12 10 8 6 4 2 0 Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Days on Market 300

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

Single Family Condo

250 200 150 100 50 0 Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Feb-12

Mar-12

Apr-12

Single Family

Sales Volume

Condo

$200,000,000 $180,000,000 $160,000,000 $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $0 Apr-11 May-11 Jun-11

Jan-12

Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12

New Listings

Single Family Condo

900 800 700 600 500 400 300

Sarasota Association of Realtors速 MLS

200 100 0 Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

The Xtra Pages - Digital Version Only

Single Family Condo

Months of Inventory

First Quarter 2012 Report Single Family Sales ‐ By Quarter

REO

Short

Market

1200 1000 800 600 400 200 0 2009‐Q3

2009‐Q4

2010‐Q1

2010‐Q2*

2010‐Q3

2010‐Q4

2011‐Q1

2011‐Q2

2011‐Q3

2011‐Q4

2012‐Q1

* Homebuyer Tax Credit In Effect

Condo Sales ‐ By Quarter

REO

Short

Market

600 500 400 300 200 100 0 2009‐Q3

2009‐Q4

2010‐Q1

2010‐Q2*

2010‐Q3

2010‐Q4

2011‐Q1

2011‐Q2

2011‐Q3

2011‐Q4

REO

Short

Market

2012‐Q1

* Homebuyer Tax Credit In Effect

Single Family Median Sale Price $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 2009‐Q3

2009‐Q4

2010‐Q1

2010‐Q2

2010‐Q3

2010‐Q4

2011‐Q1

Condo Median Sale Price

2011‐Q2

REO

2011‐Q3

Short

2011‐Q4

2012‐Q1

Market

$350,000 $300,000 $250,000

Source: Sarasota Association of Realtors®

$200,000 $150,000 $100,000 $50,000 $0 2009‐Q3

2009‐Q4

2010‐Q1

2010‐Q2

2010‐Q3

2010‐Q4

2011‐Q1

2011‐Q2

2011‐Q3

2011‐Q4

2012‐Q1

Single Family Condo

REO Sales - By Quarter 600 500 400 300 200 100 0 2009-Q3

2009-Q4

2010-Q1

2010-Q2*

2010-Q3

2010-Q4

2011-Q1

2011-Q2

2011-Q3

2011-Q4

2012-Q1

* Homebuyer Tax Credit In Effect Single Family

Short Sales ‐ By Quarter

Condo

400 350 300 250 200 150 100 50 0 2009‐Q3

2009‐Q4

2010‐Q1 2010‐Q2* 2010‐Q3

2010‐Q4

2011‐Q1

2011‐Q2

2011‐Q3

2011‐Q4

2012‐Q1

* Homebuyer Tax Credit In Effect Single Family Condo

Market Sales ‐ By Quarter 1200 1000 800 600 400 200 0 2009‐Q3

2009‐Q4

2010‐Q1 2010‐Q2* 2010‐Q3

2010‐Q4

2011‐Q1

2011‐Q2

2011‐Q3

2011‐Q4

2012‐Q1

* Homebuyer Tax Credit In Effect

Source: Sarasota Association of Realtors®

Annual Sales ‐ 2000 to 2011 Single Family Single Family

Condo

Total

11267 10562 9697 8224

8167 7603

7,596 7036

6533

6,841

6 504 6,504

6739

6358

6042

5,603

5,183

4,940 4,353

4,349 3 671 3,671

3,193 2,184

2,096

5820

3 721 3,721

2,564 2,005

2001

2002

2003

2004

2005

5,938

4,626 3,922 ,

2,120

2006

2007

2,137

2,286

2010

2011

1,556

1,194

2000

5,466

2008

2009

Annual Median Sale Price ‐ 2000 to 2011 Single Family

Condo

$351,000

$342,000 $336,250

$272,500 $305,000

$226,000 $172,500

$303,000

$210,000 $163,000 $156,800

$230,000

$191,000

$142,000

$173,000

$132,300

2000

$301,225

$225,000

$191,000

$320,000

$160,000

$145,000

2001

2002

2003

2004

2005

2006

2007

2008

2009

$163,000

2010

$155,925

2011